NBT Bancorp Inc. Announces Second Quarter Earnings of $0.45 per Share, up 25% From the Second Quarter of 2007; Declares Cash Dividend
NORWICH, NY, Jul 28, 2008 (MARKET WIRE via COMTEX News Network) -- NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today that net income per diluted share for the three months ended June 30, 2008 was $0.45 per share, up $0.09, or 25.0%, from $0.36 per share for the three months ended June 30, 2007. Return on average assets and return on average equity were 1.12% and 14.49%, respectively, for the three months ended June 30, 2008, compared with 0.95% and 11.90%, respectively, for the three months ended June 30, 2007. Net income for the three months ended June 30, 2008 was $14.7 million, up $2.6 million, or 21.5%, from the three months ended June 30, 2007. The increase in net income for the three months ended June 30, 2008 compared with the three months ended June 30, 2007 was primarily the result of an increase in net interest income, an increase in noninterest income, and a decrease in the provision for loan and lease losses, partially offset by an increase in noninterest expense.
Net income per diluted share for the six months ended June 30, 2008 was $0.88 per share, up $0.11, or 14.3%, from $0.77 per share for the six months ended June 30, 2007. Return on average assets and return on average equity were 1.10% and 14.09%, respectively, for the six months ended June 30, 2008, compared with 1.04% and 12.98%, respectively, for the six months ended June 30, 2007. Net income for the six months ended June 30, 2008 was $28.4 million, up $2.2 million, or 8.3%, from the six months ended June 30, 2007. The increase in net income for the six months ended June 30, 2008 compared with the six months ended June 30, 2007 was primarily the result of increases in net interest income and noninterest income, partially offset by an increase in noninterest expense.
NBT President and CEO Martin A. Dietrich said: "We are very pleased with our earnings through the first six months of 2008. Even though the economy is creating unique challenges for the banking industry, we were able to post record earnings per share through the first half of this year. We continue to see growth in noninterest income, which was up 17.3% for the second quarter of 2008, compared with the second quarter of 2007, primarily due to our continued focus on fee initiatives and other areas of noninterest income. Our net interest margin continues to climb despite the difficult rate environment. Our net interest margin was 3.94% for the second quarter of 2008, up from 3.84% for the first quarter of 2008 and up from 3.63% for the second quarter of 2007. This increase, coupled with the continued growth in our earning assets, has resulted in a 4.4% increase in net interest income over the first quarter of 2008 and in an 11.2% increase over the second quarter of 2007. In addition, we maintain capital levels in excess of regulatory standards for 'well-capitalized' institutions. As of June 30, 2008, NBT's ratio of core capital to tangible assets stands at 7.23%, while the applicable regulatory standard to be determined as 'well-capitalized' is 5%. We have also seen improvement in our asset quality. Our delinquency ratio improved to 0.68% for the period ending June 30, 2008, compared with 0.85% for the period ending June 30, 2007. Solid operating results from all areas of the bank have contributed to our strong first half performance."
Loan and Lease Quality and Provision for Loan and Lease Losses
Nonperforming loans at June 30, 2008 were $22.8 million or 0.63% of total loans and leases compared with $30.4 million or 0.87% at March 31, 2008, and $34.4 million or 1.00% at June 30, 2007. The decrease in nonperforming loans at June 30, 2008 was primarily the result of $7.8 million in net charge-offs during the second quarter related primarily to one large commercial loan, which had been previously identified and reserved for in 2007. The allowance for loan and lease losses totaled $54.5 million at June 30, 2008, as compared with $56.5 million at March 31, 2008, and $57.1 million at June 30, 2007.
The Company recorded a provision for loan and lease losses of $5.8 million during the second quarter of 2008 compared with $6.5 million and $9.8 million for the three months ending March 31, 2008 and June 30, 2007, respectively. Net charge-offs totaled $7.8 million for the three month period ending June 30, 2008, up from $4.2 million for the three months ending March 31, 2008, and up from $3.3 million for the three months ended June 30, 2007. The decrease in the provision for loan and lease losses for the three months ended June 30, 2008 was due primarily to improvement in nonperforming and classified loans. The increase in net charge-offs for the three months ended June 30, 2008 was due primarily to a charge-off related to one large commercial loan, which had been previously identified and reserved for in 2007. Net charge-offs to average loans and leases for the three months ended June 30, 2008 were 0.88%, compared with 0.48% for the three months ended March 31, 2008 and 0.38% for the three months ended June 30, 2007. The Company's allowance for loan and lease losses was 1.51% of loans and leases at June 30, 2008, compared with 1.61% at March 31, 2008 and 1.66% at June 30, 2007.
The Company recorded a provision for loan and lease losses of $12.3 million during the six months ended June 30, 2008 as compared with $11.9 million for the six months ended June 30, 2007. Net charge-offs totaled $12.0 million for the six months ended June 30, 2008, up from $5.4 million for the same period a year ago. The increase in net charge-offs for the six months ended June 30, 2008 was due primarily to additional charge-offs in the first and second quarters of 2008 related to one large commercial loan, which had been previously identified and reserved for in 2007. Net charge-offs to average loans and leases for the six months ended June 30, 2008 were 0.68%, compared with 0.32% for the six months ended June 30, 2007.
Net Interest Income
Net interest income was up 11.2% to $46.0 million for the three months ended June 30, 2008 compared with $41.4 million for the three months ended June 30, 2007. The Company's fully taxable equivalent (FTE) net interest margin increased from 3.63% for the three months ended June 30, 2007 to 3.94% for the three months ended June 30, 2008. In addition, the Company experienced a 2.7% growth in average earning assets for the three months ending June 30, 2008 as compared to the three months ending June 30, 2007, due primarily to an increase in average loans and leases. Although the yield on interest earning assets decreased 44 basis points, the yield on interest bearing liabilities declined 88 basis points, which contributed to the increase in the net interest margin for the three months ended June 30, 2008 compared to the same period for 2007. The yield on money market deposit accounts declined from 3.44% for the three months ended June 30, 2007 to 1.65% for the three months ended June 30, 2008, while the yield on time deposits decreased 85 basis points for the same period. The yield on short term borrowings declined 255 basis points for the three months ended June 30, 2008 as compared to the three months ended June 30, 2007 as a result of the 325 basis points drop in the Fed Funds Target Rate from 5.25% at June 30, 2007 to 2.00% at June 30, 2008.
Net interest income was up 9.9% to $90.1 million for the six months ended June 30, 2008 compared with $82.0 million for the six months ended June 30, 2007. The Company's FTE net interest margin increased from 3.63% for the six months ended June 30, 2007 to 3.89% for the six months ended June 30, 2008. In addition, the Company experienced a 2.2% growth in average earning assets for the six months ending June 30, 2008 as compared to the six months ending June 30, 2007 due primarily to an increase in average loans and leases. Although the yield on interest earning assets decreased 34 basis points, the yield on interest bearing liabilities declined 69 basis points, which contributed to the increase in the net interest margin from the six months ended June 30, 2007. The yield on money market deposit accounts declined from 3.44% for the six months ended June 30, 2007 to 2.01% for the six months ended June 30, 2008, while the yield on time deposits decreased 58 basis points for the same period. The yield on short term borrowings declined 205 basis points for the six months ended June 30, 2008 as compared to the six months ended June 30, 2007 as a result of the 325 basis points drop in the Fed Funds Target Rate from 5.25% at June 30, 2007 to 2.00% at June 30, 2008.
Noninterest Income
Noninterest income for the three months ended June 30, 2008 was $16.4 million, up $2.4 million or 17.3% from $14.0 million for the same period in 2007. The increase in noninterest income was due primarily to an increase in fees from service charges on deposit accounts and ATM and debit cards, which collectively increased $2.2 million as the Company continued to focus on enhancing fee income through various initiatives. In addition, trust administration income increased $0.3 million for the three month period ended June 30, 2008, compared with the same period in 2007. This increase stems primarily from an increase in customer accounts resulting from successful business development. Broker/dealer and insurance revenue increased approximately $0.3 million for the three month period ended June 30, 2008 as we expanded our sales force and increased the number of accounts being serviced. Other noninterest income decreased $0.4 million for the three month period ended June 30, 2008, compared with the same period in 2007. Net securities gains for the three month periods ended June 30, 2008 and 2007 were nominal and had no significant effect on noninterest income.
Noninterest income for the six months ended June 30, 2008 was $32.5 million, up $5.8 million or 21.9% from $26.7 million for the same period in 2007. The increase in noninterest income was due primarily to an increase in fees from service charges on deposit accounts and ATM and debit cards, which collectively increased $4.4 million as the Company focused on enhancing fee income through various initiatives. In addition, trust administration income increased $0.6 million for the six month period ended June 30, 2008, compared with the same period in 2007. This increase stems primarily from an increase in customer accounts resulting from successful business development. Broker/dealer and insurance revenue increased approximately $0.3 million for the six month period ended June 30, 2008 as we expanded our sales force and increased the number of accounts being serviced. Net securities gains for the six month periods ended June 30, 2008 and 2007 were nominal and had no significant effect on noninterest income.
Noninterest Expense and Income Tax Expense
Noninterest expense for the three months ended June 30, 2008 was $35.4 million, up from $28.0 million for the same period in 2007. Office expenses, such as supplies and postage, occupancy, equipment and data processing and communications charges were $9.7 million for the three months ended June 30, 2008, up $1.1 million, or 13.2%, from $8.6 million for the three months ended June 30, 2007. This increase was due primarily to an increase in expenses related to the five new branches the Company has opened within the past eight months. Salaries and employee benefits increased $3.9 million, or 29.8%, for the three months ended June 30, 2008 compared with the same period in 2007. This increase was due primarily to increases in full time employees during 2008 and reduced levels of incentive compensation in 2007. Professional fees and outside services increased $0.6 million for the three month period ended June 30, 2008, compared with the same period in 2007, due primarily to fees and costs related to the aforementioned noninterest income initiatives. Other operating expenses were $5.2 million for the three months ended June 30, 2008, up $1.4 million or 34.6%, from $3.8 million for the three months ended June 30, 2008. This increase was primarily due to increases in advertising expenses. Income tax expense for the three month period ended June 30, 2008 was $6.5 million, up from $5.5 million for the same period in 2007. The effective rates were 30.9% and 31.3% for the three month periods ended June 30, 2008 and 2007, respectively.
Noninterest expense for the six months ended June 30, 2008 was $69.5 million, up from $58.9 million for the same period in 2007. Office expenses, such as supplies and postage, occupancy, equipment and data processing and communications charges were $19.7 million for the six months ended June 30, 2008, up $1.8 million, or 10.1%, from $17.9 million for the six months ended June 30, 2007. This increase was due primarily to an increase in expenses related to the aforementioned branch openings. Salaries and employee benefits increased $4.7 million, or 16.2%, for the six months ended June 30, 2008 compared with the same period in 2007. This increase was due primarily to increases in full time employees during 2008 and reduced levels of incentive compensation in 2007. Professional fees and outside services increased $2.0 million for the six month period ended June 30, 2008, compared with the same period in 2007, due primarily to fees and costs related to the aforementioned noninterest income initiatives. Other operating expenses were $8.4 million for the six months ended June 30, 2008, up $1.4 million or 20.0%, from $7.0 million for the six months ended June 30, 2008. This increase was primarily due to increases in advertising expenses. Income tax expense for the six month period ended June 30, 2008 was $12.5 million, up from $11.7 million for the same period in 2007. The effective rates were 30.5% and 30.9% for the six month periods ended June 30, 2008 and 2007, respectively.
Balance Sheet
Total assets were $5.3 billion at June 30, 2008, up $107.7 million or 2.1% from $5.2 billion at December 31, 2007, and up $187.9 million or 3.7% from $5.1 billion at June 30, 2007. Loans and leases were $3.6 billion at June 30, 2008, up $147.0 million or 4.3% from $3.5 billion at December 31, 2007, and up $170.6 million or 5.0% from $3.4 billion at June 30, 2007. The increase in loans and leases at June 30, 2008 as compared to December 31, 2007 and June 30, 2007 was due in large part to an increase in consumer loans of approximately $113.6 million and $150.4 million, respectively. Total deposits were $3.9 billion at June 30, 2008, up $67.0 million or 1.7% from December 31, 2007, and down $20.1 million or 0.5% from June 30, 2007. The increase from December 31, 2007 was due in large part to a $33.6 million, or 5.0%, increase in demand deposits and a $29.4 million, or 1.8%, increase in savings, NOW, and money market accounts. Stockholders' equity was $403.9 million, representing a total equity to total assets ratio of 7.61% at June 30, 2008, compared with $397.3 million or a total equity to total assets ratio of 7.64% at December 31, 2007, and $390.9 million or a total equity to total assets ratio of 7.63% at June 30, 2007.
Stock Repurchase Program
Under previously disclosed stock repurchase plans, the Company purchased 272,840 shares of its common stock during the six month period ended June 30, 2008, for a total of $5.9 million at an average price of $21.77 per share. At June 30, 2008, there were 1,203,040 shares available for repurchase under previously announced plans.
Dividend Declared
The NBT Board of Directors declared a third quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on September 15, 2008, to shareholders of record as of September 1, 2008.
Corporate Overview
NBT is a financial holding company headquartered in Norwich, NY, with total assets of $5.3 billion at June 30, 2008. The company primarily operates through NBT Bank, N.A., a full-service community bank with two divisions, and through two financial services companies. NBT Bank, N.A. has 124 locations, including 85 NBT Bank offices in upstate New York and 39 Pennstar Bank offices in northeastern Pennsylvania. EPIC Advisors, Inc., based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm. Hathaway Insurance Agency, Inc., based in Gloversville, NY, is a full-service insurance agency. As filed on Form 8-K on July 9, 2008, NBT Bancorp Inc. signed a definitive agreement to acquire Mang Insurance Agency on July 3, 2008 and the acquisition is expected to close in the third quarter of 2008. More information about NBT and its divisions can be found on the Internet at: www.nbtbancorp.com, www.nbtbank.com, www.pennstarbank.com, www.epic1st.com and www.hathawayagency.com.
Forward-Looking Statements
This news release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of NBT Bancorp and its subsidiaries and on the information available to management at the time that these statements were made. There are a number of factors, many of which are beyond NBT's control, that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which NBT is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than NBT; and (7) adverse changes may occur in the securities markets or with respect to inflation. Forward-looking statements speak only as of the date they are made. Except as required by law, NBT does not undertake to update forward-looking statements to reflect subsequent circumstances or events.
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
Net Percent
2008 2007 Change Change
---------- ---------- ---------- ----------
(dollars in thousands,
except per share data)
Three Months Ended June 30,
Net Income $ 14,657 $ 12,064 $ 2,593 21%
Diluted Earnings Per Share $ 0.45 $ 0.36 $ 0.09 25%
Weighted Average Diluted
Common Shares Outstanding 32,241,642 33,936,096 -1,694,454 -5%
Return on Average Assets(1) 1.12% 0.95% 0.17% 18%
Return on Average Equity(1) 14.49% 11.90% 2.59% 22%
Net Interest Margin(2) 3.94% 3.63% 0.31% 9%
========== ========== ========== ==========
Six Months Ended June 30,
Net Income $ 28,373 $ 26,196 $ 2,177 8%
Diluted Earnings Per Share $ 0.88 $ 0.77 $ 0.11 14%
Weighted Average Diluted
Common Shares Outstanding 32,246,644 34,195,110 -1,948,466 -6%
Return on Average Assets(1) 1.10% 1.04% 0.06% 6%
Return on Average Equity(1) 14.09% 12.98% 1.11% 9%
Net Interest Margin(2) 3.89% 3.63% 0.26% 7%
========== ========== ========== ==========
Asset Quality June December June
30, 31, 30,
2008 2007 2007
---------- ---------- ----------
Nonaccrual Loans $ 22,039 $ 29,697 $ 33,730
90 Days Past Due and Still
Accruing $ 717 $ 882 $ 689
Total Nonperforming Loans $ 22,756 $ 30,579 $ 34,419
Other Real Estate Owned $ 1,140 $ 560 $ 981
Total Nonperforming Assets $ 23,896 $ 31,139 $ 35,400
Past Due Loans $ 24,484 $ 25,914 $ 29,332
Allowance for Loan and
Lease Losses $ 54,510 $ 54,183 $ 57,058
Year-to-Date (YTD) Net
Charge-Offs $ 11,954 $ 26,498 $ 5,395
Allowance for Loan and
Lease Losses to Total
Loans and Leases 1.51% 1.57% 1.66%
Total Nonperforming Loans
to Total Loans and Leases 0.63% 0.88% 1.00%
Total Nonperforming Assets
to Total Assets 0.45% 0.60% 0.69%
Past Due Loans to Total
Loans and Leases 0.68% 0.75% 0.85%
Allowance for Loan and
Lease Losses to Total
Nonperforming Loans 239.54% 177.19% 165.77%
Net Charge-Offs to YTD
Average Loans and Leases 0.68% 0.77% 0.32%
========== ========== ========== ==========
Capital
Equity to Assets 7.61% 7.64% 7.63%
Book Value Per Share $ 12.56 $ 12.29 $ 11.72
Tangible Book Value Per
Share $ 9.05 $ 8.78 $ 8.29
Tier 1 Leverage Ratio 7.23% 7.14% 7.37%
Tier 1 Capital Ratio 9.67% 9.85% 10.21%
Total Risk-Based Capital
Ratio 10.92% 11.10% 11.46%
========== ========== ========== ==========
Quarterly Common
Stock Price 2008 2007 2006
Quarter End High Low High Low High Low
------ ------ ------ ------ ------ ------
March 31 $23.65 $17.95 $25.81 $21.73 $23.90 $21.02
June 30 $25.00 $20.33 23.45 21.80 23.24 21.03
September 30 23.80 17.10 24.57 21.44
December 31 25.00 20.58 26.47 22.36
(1) Annualized
(2) Calculated on a FTE basis
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
Net Percent
2008 2007 Change Change
----------- ----------- ---------- ---------
(dollars in thousands,
except per share data)
Balance Sheet as of June 30,
Loans and Leases $ 3,602,895 $ 3,432,300 $ 170,595 5%
Earning Assets $ 4,898,448 $ 4,756,527 $ 141,921 3%
Total Assets $ 5,309,500 $ 5,121,634 $ 187,866 4%
Deposits $ 3,939,113 $ 3,959,166 ($ 20,053) -1%
Stockholders' Equity $ 403,872 $ 390,934 $ 12,938 3%
=========== =========== ========== =========
Average Balances
Three Months Ended June 30,
Loans and Leases $ 3,561,632 $ 3,423,130 $ 138,502 4%
Securities Available For
Sale (excluding unrealized
gains or losses) $ 1,101,362 $ 1,128,973 ($ 27,611) -2%
Securities Held To Maturity $ 157,822 $ 148,467 $ 9,355 6%
Regulatory Equity
Investment $ 41,274 $ 32,576 $ 8,698 27%
Short-Term Interest Bearing
Accounts $ 7,100 $ 8,618 ($ 1,518) -18%
Total Earning Assets $ 4,869,190 $ 4,741,764 $ 127,426 3%
Total Assets $ 5,241,686 $ 5,098,649 $ 143,037 3%
Interest Bearing Deposits $ 3,196,393 $ 3,307,241 ($ 110,848) -3%
Non-Interest Bearing
Deposits $ 668,299 $ 627,172 $ 41,127 7%
Short-Term Borrowings $ 257,376 $ 250,112 $ 7,264 3%
Long-Term Borrowings $ 643,758 $ 449,464 $ 194,294 43%
Total Interest Bearing
Liabilities $ 4,097,527 $ 4,006,817 $ 90,710 2%
Stockholders' Equity $ 406,709 $ 406,741 ($ 32) 0%
=========== =========== ========== =========
Average Balances
Six Months Ended June 30,
Loans and Leases $ 3,513,996 $ 3,410,928 $ 103,068 3%
Securities Available For
Sale (excluding unrealized
gains or losses) $ 1,110,809 $ 1,126,209 ($ 15,400) -1%
Securities Held To Maturity $ 155,341 $ 144,683 $ 10,658 7%
Regulatory Equity
Investment $ 39,391 $ 33,684 $ 5,707 17%
Short-Term Interest Bearing
Accounts $ 7,750 $ 8,934 ($ 1,184) -13%
Total Earning Assets $ 4,827,287 $ 4,724,438 $ 102,849 2%
Total Assets $ 5,203,015 $ 5,083,653 $ 119,362 2%
Interest Bearing Deposits $ 3,214,697 $ 3,276,368 ($ 61,671) -2%
Non-Interest Bearing
Deposits $ 663,858 $ 622,083 $ 41,775 7%
Short-Term Borrowings $ 280,476 $ 257,687 $ 22,789 9%
Long-Term Borrowings $ 572,026 $ 465,655 $ 106,371 23%
Total Interest Bearing
Liabilities $ 4,067,199 $ 3,999,710 $ 67,489 2%
Stockholders' Equity $ 404,937 $ 407,128 ($ 2,191) -1%
=========== =========== ========== =========
NBT Bancorp Inc. and Subsidiaries June 30, December 31, June 30,
Consolidated Balance Sheets (unaudited) 2008 2007 2007
----------- ----------- -----------
(in thousands)
ASSETS
Cash and due from banks $ 145,635 $ 155,495 $ 134,058
Short term interest bearing accounts 1,782 7,451 7,252
Securities available for sale, at fair
value 1,104,491 1,132,230 1,109,543
Securities held to maturity (fair value
of $148,952, $149,519 and $146,944 at
June 30, 2008, December 31, 2007 and
June 30, 2007, respectively) 148,656 149,111 147,537
Federal Reserve and Federal Home Loan
Bank stock 41,323 38,102 33,061
Loans and leases 3,602,895 3,455,851 3,432,300
Less allowance for loan and lease
losses 54,510 54,183 57,058
=========== =========== ===========
Net loans and leases 3,548,385 3,401,668 3,375,242
Premises and equipment, net 64,871 64,042 65,286
Goodwill 103,398 103,398 103,412
Intangible assets, net 9,404 10,173 10,998
Bank owned life insurance 44,546 43,614 42,667
Other assets 97,009 96,492 92,578
----------- ----------- -----------
TOTAL ASSETS $ 5,309,500 $ 5,201,776 $ 5,121,634
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $ 700,279 $ 666,698 $ 681,732
Savings, NOW, and money market 1,643,702 1,614,289 1,606,473
Time 1,595,132 1,591,106 1,670,961
----------- ----------- -----------
Total deposits 3,939,113 3,872,093 3,959,166
Short-term borrowings 205,624 368,467 290,387
Long-term debt 619,720 424,887 352,151
Trust preferred debentures 75,422 75,422 75,422
Other liabilities 65,749 63,607 53,574
----------- ----------- -----------
Total liabilities 4,905,628 4,804,476 4,730,700
Total stockholders' equity 403,872 397,300 390,934
=========== =========== ===========
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 5,309,500 $ 5,201,776 $ 5,121,634
=========== =========== ===========
NBT Bancorp Inc. and Subsidiaries Three months ended Six months ended
Consolidated Statements of Income June 30, June 30,
(unaudited) 2008 2007 2008 2007
--------- --------- --------- ---------
(in thousands, except per share
data)
Interest, fee and dividend income:
Loans and leases $ 57,220 $ 60,689 $ 115,837 $ 120,497
Securities available for sale 13,417 13,562 27,163 27,029
Securities held to maturity 1,478 1,525 2,992 2,969
Other 739 719 1,514 1,459
--------- --------- --------- ---------
Total interest, fee and dividend
income 72,854 76,495 147,506 151,954
--------- --------- --------- ---------
Interest expense:
Deposits 18,712 26,950 41,410 52,934
Short-term borrowings 1,362 2,918 3,702 6,010
Long-term debt 5,629 3,997 9,931 8,483
Trust preferred debentures 1,146 1,272 2,393 2,540
--------- --------- --------- ---------
Total interest expense 26,849 35,137 57,436 69,967
--------- --------- --------- ---------
Net interest income 46,005 41,358 90,070 81,987
Provision for loan and lease losses 5,803 9,770 12,281 11,866
--------- --------- --------- ---------
Net interest income after provision
for loan and lease losses 40,202 31,588 77,789 70,121
--------- --------- --------- ---------
Noninterest income:
Trust 2,099 1,792 3,873 3,229
Service charges on deposit accounts 6,938 4,936 13,463 9,405
ATM and debit card fees 2,225 2,041 4,322 3,937
Broker/dealer and insurance revenue 1,366 1,093 2,473 2,176
Net securities gains (losses) 18 21 33 16
Bank owned life insurance income 480 450 932 884
Retirement plan administration fees 1,671 1,601 3,379 3,193
Other 1,622 2,058 4,039 3,842
--------- --------- --------- ---------
Total noninterest income 16,419 13,992 32,514 26,682
--------- --------- --------- ---------
Noninterest expense:
Salaries and employee benefits 16,906 13,022 33,676 28,986
Office supplies and postage 1,331 1,334 2,670 2,630
Occupancy 3,427 2,585 7,037 5,754
Equipment 1,862 1,837 3,687 3,770
Professional fees and outside
services 2,521 1,926 5,620 3,584
Data processing and communications 3,115 2,845 6,285 5,722
Amortization of intangible assets 378 410 769 819
Loan collection and other real
estate owned 730 228 1,297 605
Other operating 5,153 3,827 8,416 7,016
--------- --------- --------- ---------
Total noninterest expense 35,423 28,014 69,457 58,886
--------- --------- --------- ---------
Income before income taxes 21,198 17,566 40,846 37,917
Income taxes 6,541 5,502 12,473 11,721
--------- --------- --------- ---------
Net income $ 14,657 $ 12,064 $ 28,373 $ 26,196
--------- --------- --------- ---------
Earnings Per Share:
Basic $ 0.46 $ 0.36 $ 0.89 $ 0.77
Diluted $ 0.45 $ 0.36 $ 0.88 $ 0.77
========= ========= ========= =========
NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements
of Income 2Q 1Q 4Q 3Q 2Q
(unaudited) 2008 2008 2007 2007 2007
-------- -------- -------- -------- --------
(in thousands, except per
share data)
Interest, fee and dividend
income:
Loans and leases $ 57,220 $ 58,617 $ 60,817 $ 61,183 $ 60,689
Securities available for sale 13,417 13,746 13,971 13,847 13,562
Securities held to maturity 1,478 1,514 1,458 1,471 1,525
Other 739 775 736 680 719
-------- -------- -------- -------- --------
Total interest, fee and
dividend income 72,854 74,652 76,982 77,181 76,495
-------- -------- -------- -------- --------
Interest expense:
Deposits 18,712 22,698 26,578 27,062 26,950
Short-term borrowings 1,362 2,340 3,048 3,885 2,918
Long-term debt 5,629 4,302 4,233 3,770 3,997
Trust preferred debentures 1,146 1,247 1,270 1,277 1,272
-------- -------- -------- -------- --------
Total interest expense 26,849 30,587 35,129 35,994 35,137
-------- -------- -------- -------- --------
Net interest income 46,005 44,065 41,853 41,187 41,358
Provision for loan and lease
losses 5,803 6,478 13,440 4,788 9,770
-------- -------- -------- -------- --------
Net interest income after
provision for loan and lease
losses 40,202 37,587 28,413 36,399 31,588
-------- -------- -------- -------- --------
Noninterest income:
Trust 2,099 1,774 1,584 1,701 1,792
Service charges on deposit
accounts 6,938 6,525 7,142 6,195 4,936
ATM and debit card fees 2,225 2,097 2,089 2,159 2,041
Broker/dealer and insurance
fees 1,366 1,107 1,052 1,027 1,093
Net securities gains (losses) 18 15 613 1,484 21
Bank owned life insurance
income 480 452 480 467 450
Retirement plan administration
fees 1,671 1,708 1,557 1,586 1,601
Other 1,622 2,417 1,973 1,908 2,058
-------- -------- -------- -------- --------
Total noninterest income 16,419 16,095 16,490 16,527 13,992
-------- -------- -------- -------- --------
Noninterest expense:
Salaries and employee benefits 16,906 16,770 14,654 15,876 13,022
Office supplies and postage 1,331 1,339 1,136 1,354 1,334
Occupancy 3,427 3,610 2,948 2,928 2,585
Equipment 1,862 1,825 1,855 1,797 1,837
Professional fees and outside
services 2,521 3,099 3,295 2,256 1,926
Data processing and
communications 3,115 3,170 2,899 2,779 2,845
Amortization of intangible
assets 378 391 413 413 410
Loan collection and other real
estate owned 730 567 597 431 228
Other operating 5,153 3,263 4,607 3,393 3,827
-------- -------- -------- -------- --------
Total noninterest expense 35,423 34,034 32,404 31,227 28,014
-------- -------- -------- -------- --------
Income before income taxes 21,198 19,648 12,499 21,699 17,566
Income taxes 6,541 5,932 3,514 6,552 5,502
-------- -------- -------- -------- --------
Net income $ 14,657 $ 13,716 $ 8,985 $ 15,147 $ 12,064
======== ======== ======== ======== ========
Earnings per share:
Basic $ 0.46 $ 0.43 $ 0.28 $ 0.46 $ 0.36
Diluted $ 0.45 $ 0.43 $ 0.28 $ 0.46 $ 0.36
======== ======== ======== ======== ========
Contact:
Martin A. Dietrich
CEO
Michael J. Chewens
CFO
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
607-337-6119
SOURCE: NBT Bancorp Inc.