NBT Bancorp Inc. Announces Third Quarter Earnings of $0.40 per Share; Declares Cash Dividend
NORWICH, NY, Oct 26, 2009 (MARKETWIRE via COMTEX) -- NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today net income per diluted share for the three months ended September 30, 2009 of $0.40 per share, as compared with $0.46 per share for the three months ended September 30, 2008. Annualized return on average assets and return on average equity were 0.99% and 11.01%, respectively, for the three months ended September 30, 2009, compared with 1.13% and 14.58%, respectively, for the three months ended September 30, 2008. Net income for the three months ended September 30, 2009 was $13.6 million, down $1.5 million, or 10.0%, from $15.1 million for the third quarter last year.
Net income per diluted share for the nine months ended September 30, 2009 was $1.13 per share, as compared with $1.34 per share for the nine months ended September 30, 2008. Annualized return on average assets and return on average equity were 0.95% and 10.89%, respectively, for the nine months ended September 30, 2009, compared with 1.11% and 14.26%, respectively, for the nine months ended September 30, 2008. Net income for the nine months ended September 30, 2009 was $38.2 million, down $5.2 million, or 12.1%, from the nine months ended September 30, 2008.
For the three months ended September 30, 2009, FDIC expenses increased $0.9 million over the three months ended September 30, 2008. For the nine months ended September 30, 2009, FDIC expenses increased $6.1 million over the nine months ended September 30, 2008, including the special assessment of approximately $2.5 million. The FDIC premium increases and special assessment had a $0.02 and $0.13 effect on diluted earnings per share for the three months ended September 30, 2009 and for the nine months ended September 30, 2009, respectively. For the three months ended September 30, 2009, pension expenses increased $0.7 million over the three months ended September 30, 2008. For the nine months ended September 30, 2009, pension expenses increased $2.2 million over the nine months ended September 30, 2008. The pension expense increases had a $0.01 and $0.04 effect on diluted earnings per share for the three months ended September 30, 2009 and for the nine months ended September 30, 2009, respectively.
NBT President and CEO Martin Dietrich said: "I am pleased with our performance through the first three quarters of 2009. Our overall earnings are at a level similar to our record year in 2008, except for increased FDIC and pension expenses. Like all FDIC-insured institutions, our results have been affected by significantly higher FDIC premiums. Despite these higher premiums, we have been able to maintain a strong net interest margin, control our expenses and keep a watchful eye on asset quality. Our focus on these fundamentals is helping to maintain the overall strength of our balance sheet. Our ongoing efforts to grow noninterest income have been bolstered in part by the impact of our acquisition of the Mang Insurance Agency, LLC."
Loan and Lease Quality and Provision for Loan and Lease Losses
Nonperforming loans at September 30, 2009 were $39.2 million or 1.08% of total loans and leases compared with $40.2 million or 1.10% at June 30, 2009, and $26.5 million or 0.73% at December 31, 2008. The increase in nonperforming loans at September 30, 2009 as compared with December 31, 2008 was primarily the result of an increase in nonaccrual loans, due mostly to three commercial credits and four agricultural credits which were identified as potential problem loans in prior quarters as well as an increase in retail nonaccruals. The three commercial credits consist of a community center, a physical therapy office and a real estate holding company. The allowance for loan and lease losses totaled $64.7 million at September 30, 2009, $62.7 million at June 30, 2009, and $58.6 million at December 31, 2008. The increase from December 31, 2008 was mostly due to an increase in specific reserves on two of the aforementioned commercial credits and two of the aforementioned agricultural credits, in addition to increased reserve levels on certain types of consumer loans. These specific reserves, along with worsening economic conditions, also contributed to the increase in the Company's allowance for loan and lease losses as a percentage of loans, which was 1.79% of loans and leases at September 30, 2009, 1.72% at June 30, 2009, and 1.60% at December 31, 2008. Past due loans as a percentage of total loans increased to 1.00% at September 30, 2009, as compared with 0.81% at June 30, 2009 and 0.91% at December 31, 2008.
The Company recorded a provision for loan and lease losses of $9.1 million during the third quarter of 2009 compared with $9.2 million during the second quarter of 2009, and $7.2 million during the third quarter of 2008. The increase in the provision for loan and lease losses for the three months ended September 30, 2009 as compared with the three months ended September 30, 2008 was due primarily to an increase in net charge-offs which totaled $7.2 million for the three month period ending September 30, 2009, up from $5.9 million for the three months ending September 30, 2008, due primarily to a charge-off related to one large agricultural loan during the third quarter of 2009. Net charge-offs to average loans and leases for the three months ended September 30, 2009 were 0.79%, compared with 0.65% for the three months ended September 30, 2008.
The Company recorded a provision for loan and lease losses of $24.8 million during the nine months ended September 30, 2009 compared with $19.5 million during the nine months ended September 30, 2008. The increase in the provision for loan and lease losses for the nine months ended September 30, 2009 was due primarily to the aforementioned charge-off and an increase in specific reserves on certain impaired loans, along with worsening economic conditions. Net charge-offs totaled $18.7 million for the nine month period ending September 30, 2009, up from $17.8 million for the nine months ending September 30, 2008. Net charge-offs to average loans and leases for the nine months ended September 30, 2009 were 0.68%, compared with 0.67% for the nine months ended September 30, 2008.
Net Interest Income
Net interest income was up 3.5% to $48.7 million for the three months ended September 30, 2009 compared with $47.0 million for the three months ended September 30, 2008. The Company's fully taxable equivalent (FTE) net interest margin was 3.98% for the three months ended September 30, 2009, as compared with 3.94% for the three months ended September 30, 2008. In addition, the Company experienced a 1.9% growth in average earning assets for the three months ending September 30, 2009 as compared with the three months ending September 30, 2008, due primarily to increases in average loans and leases and average short-term interest bearing accounts. As a result of our excess liquidity, our Federal Funds sold position had a negative impact of 9 bp on our net interest margin for the three months ended September 30, 2009.
Although the yield on interest earning assets decreased 61 basis points, the yield on interest bearing liabilities declined 74 basis points, which contributed to the increase in the net interest margin for the three months ended September 30, 2009 compared to the same period for 2008. The yield on time deposits was 2.57% for the three months ended September 30, 2009, as compared with 3.47% for the three months ended September 30, 2008. The yield on money market deposit accounts was 1.28% for the three months ended September 30, 2009, as compared with 1.83% for the three months ended September 30, 2008. The yield on short term borrowings declined 154 basis points for the three months ended September 30, 2009 as compared to the three months ended September 30, 2008 as a result of the 175 basis point drop in the Fed Funds Target Rate from 2.00% at September 30, 2008 to 0.25% at September 30, 2009.
Net interest income was up 5.6% to $144.8 million for the nine months ended September 30, 2009 compared with $137.1 million for the nine months ended September 30, 2008. The Company's fully taxable equivalent (FTE) net interest margin was 4.00% for the nine months ended September 30, 2009, as compared with 3.91% for the nine months ended September 30, 2008. In addition, the Company experienced a 2.8% growth in average earning assets for the nine months ending September 30, 2009 as compared with the nine months ending September 30, 2008, due primarily to increases in average loans and leases and short term interest bearing accounts. As a result of our excess liquidity, our Federal Funds sold position had a negative impact of 7 bp on our net interest margin for the nine months ended September 30, 2009.
Although the yield on interest earning assets decreased 59 basis points, the yield on interest bearing liabilities declined 80 basis points, which contributed to the increase in the net interest margin for the nine months ended September 30, 2009 compared to the same period for 2008. The yield on time deposits was 2.75% for the nine months ended September 30, 2009, as compared with 3.80% for the nine months ended September 30, 2008. The yield on money market deposit accounts was 1.32% for the nine months ended September 30, 2009, as compared with 1.95% for the nine months ended September 30, 2008. The yield on short term borrowings declined 209 basis points for the nine months ended September 30, 2009 as compared to the nine months ended September 30, 2008 as a result of the aforementioned drop in the Fed Funds Target Rate.
Noninterest Income
Noninterest income for the three months ended September 30, 2009 was $20.9 million, up $1.9 million or 10.0% from $19.0 million for the same period in 2008. The increase in noninterest income was due primarily to an increase in insurance and broker/dealer revenue, which increased approximately $2.0 million for the three month period ended September 30, 2009 as compared with the three month period ended September 30, 2008. This increase was due primarily to revenue generated by Mang Insurance Agency, LLC, which was acquired on September 1, 2008. In addition, retirement plan administration fees increased approximately $1.0 million for the three month period ended September 30, 2009 as compared with the three month period ended September 30, 2008 as a result of organic growth from new business. These increases were partially offset by a decrease in net securities gains of approximately $1.4 million for the three months ended September 30, 2009 as compared with the three months ended September 30, 2008.
Noninterest income for the nine months ended September 30, 2009 was $60.3 million, up $8.8 million or 17.1% from $51.5 million for the same period in 2008. The increase in noninterest income was due primarily to an increase in insurance and broker/dealer revenue, which increased approximately $9.1 million for the nine month period ended September 30, 2009 as compared with the nine month period ended September 30, 2008. This increase was due primarily to revenue generated by Mang Insurance Agency, LLC as previously mentioned. In addition, retirement plan administration fees increased approximately $1.5 million for the nine month period ended September 30, 2009 as compared with the nine month period ended September 30, 2008 as a result of organic growth from new business. These increases were partially offset by a decrease in net securities gains of approximately $1.4 million for the nine months ended September 30, 2009 as compared with the nine months ended September 30, 2008.
Noninterest Expense and Income Tax Expense
Noninterest expense for the three months ended September 30, 2009 was $41.0 million, up from $37.1 million for the same period in 2008. FDIC expenses increased approximately $0.9 million for the three months ended September 30, 2009, compared with the same period in 2008 due to recurring FDIC premiums, which increased to $1.5 million for the three months ended September 30, 2009 as compared with $0.6 million for the same period last year. Salaries and employee benefits increased $4.4 million, or 26.2%, for the three months ended September 30, 2009 compared with the same period in 2008. This increase was due primarily to increases in full-time-equivalent employees during 2009, largely due to the aforementioned acquisition and de novo branch activity. In addition, the Company experienced an increase of approximately $0.7 million in pension expenses for the three months ended September 30, 2009 as compared with the same period in 2008. Amortization of intangible assets was $0.8 million for the three months ended September 30, 2009, up from $0.5 million for same period in 2008 due to the aforementioned acquisition. In addition, professional fees and outside services expenses increased approximately $0.5 million, or 22.0%, for the three months ended September 30, 2009 as compared with the three months ended September 30, 2008. This increase was due primarily to non-recurring systems consulting services. These increases were partially offset by an impairment on lease residual assets incurred during the third quarter of 2008 totaling $2.0 million. The increases were also partially offset by a decrease in other operating expenses. For the three month period ended September 30, 2009, other operating expenses totaled $3.7 million, down $1.0 million or 20.0%, from $4.7 million for the three months ended September 30, 2008. This decrease resulted primarily from a decrease in losses incurred from sales of certain returned lease vehicles totaling approximately $0.9 million during the third quarter of 2008, due to reduced values of the vehicles. Income tax expense for the three month period ended September 30, 2009 was $5.8 million, down from $6.7 million for the same period in 2008. The effective rates were 30.0% and 30.7% for the three month periods ended September 30, 2009 and 2008, respectively.
Noninterest expense for the nine months ended September 30, 2009 was $125.3 million, up from $106.5 million for the same period in 2008. FDIC expenses increased approximately $6.1 million for the nine months ended September 30, 2009, compared with the same period in 2008. This increase was due to the special assessment imposed by the FDIC totaling approximately $2.5 million during the second quarter of 2009, in addition to increased recurring FDIC premiums. Salaries and employee benefits increased $12.1 million, or 24.0%, for the nine months ended September 30, 2009 compared with the same period in 2008. This increase was due primarily to increases in full-time-equivalent employees during 2009, largely due to the aforementioned acquisition and de novo branch activity. In addition, the Company experienced increases of approximately $2.2 million and $0.9 million in pension and medical expenses, respectively, for the nine months ended September 30, 2009 as compared with the same period in 2008. Amortization of intangible assets was $2.5 million for the nine months ended September 30, 2009, up from $1.2 million for same period in 2008 due to the aforementioned acquisition. Occupancy expenses were up approximately $0.9 million for the nine months ended September 30, 2009 as compared with the nine months ended September 30, 2008. This increase was due primarily to the aforementioned acquisition and de novo branch activity during the period. Income tax expense for the nine month period ended September 30, 2009 was $16.9 million, down from $19.2 million for the same period in 2008. The effective rates were 30.7% and 30.6% for the nine month periods ended September 30, 2009 and 2008, respectively.
Balance Sheet
Total assets were $5.5 billion at September 30, 2009, up $148.3 million or 2.8% from $5.3 billion at December 31, 2008. Loans and leases were $3.6 billion at September 30, 2009 and December 31, 2008. The Company experienced a shift from residential real estate mortgages, which decreased by approximately $84.7 million, or 11.7%, from December 31, 2008 to September 30, 2009, to consumer loans, which increased by approximately $75.6 million, or 9.5%, from December 31, 2008 to September 30, 2009. Total deposits were $4.1 billion at September 30, 2009, up $181.2 million or 4.6% from December 31, 2008. The increase from December 31, 2008 was due in large part to a $318.9 million, or 16.9%, increase in NOW, savings and money market accounts, partially offset by a $196.6 million decrease in time deposits. Stockholders' equity was $497.5 million, representing a total equity-to-total assets ratio of 9.07% at September 30, 2009, compared with $431.8 million or a total equity-to-total assets ratio of 8.09% at December 31, 2008. The increase in stockholders' equity was due in large part to the Company completing a public offering of 1,576,230 shares of its common stock on April 1, 2009 and raising approximately $33.5 million in net proceeds.
Stock Repurchase Program
Today, the NBT Board of Directors authorized a new repurchase program for NBT to repurchase up to an additional 1,000,000 shares (approximately 3%) of its outstanding common stock, effective January 1, 2010, as market conditions warrant in open market and privately negotiated transactions. The plan expires on December 31, 2011. At September 30, 2009, there were 1,000,000 shares available for repurchase under a previously announced stock repurchase plan. This plan was authorized on January 28, 2008 in the amount of 1,000,000 shares and expires on December 31, 2009. The Company made no purchases of its common stock securities during the nine months ended September 30, 2009.
Dividend Declared
The NBT Board of Directors declared a 2009 fourth-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on December 15, 2009, to shareholders of record as of December 1, 2009.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $5.5 billion at September 30, 2009. 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 123 locations, including 84 NBT Bank offices in upstate New York, 38 Pennstar Bank offices in northeastern Pennsylvania and a regional office in Burlington, Vermont. EPIC Advisors, Inc., based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm. Mang Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. 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.manginsurance.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
2009 2008 Change Change
------------- ------------- ------------- -------------
(dollars in thousands,
except per share data)
Three Months
Ended
September 30,
Net Income $ 13,578 $ 15,083 $ (1,505) -10%
Diluted
Earnings Per
Share $ 0.40 $ 0.46 $ (0.06) -13%
Weighted
Average
Diluted
Common Shares
Outstanding 34,342,125 32,453,307 1,888,818 6%
Return on
Average Assets
(1) 0.99% 1.13% -0.14% -12%
Return on
Average Equity
(1) 11.01% 14.58% -3.57% -24%
Net Interest
Margin (2) 3.98% 3.94% 0.04% 1%
============= ============= ============= =============
Nine Months
Ended
September 30,
Net Income $ 38,210 $ 43,456 $ (5,246) -12%
Diluted
Earnings Per
Share $ 1.13 $ 1.34 $ (0.21) -16%
Weighted
Average
Diluted
Common Shares
Outstanding 33,780,769 32,315,744 1,465,025 5%
Return on
Average Assets 0.95% 1.11% -0.16% -14%
Return on
Average Equity 10.89% 14.26% -3.37% -24%
Net Interest
Margin (2) 4.00% 3.91% 0.09% 2%
============= ============= ============= =============
Asset Quality September 30, June 30, December 31,
2009 2009 2008
------------- ------------- -------------
Nonaccrual
Loans $ 35,614 $ 37,646 $ 24,191
90 Days Past
Due and Still
Accruing $ 3,543 $ 2,529 $ 2,305
Total
Nonperforming
Loans $ 39,157 $ 40,175 $ 26,496
Other Real
Estate Owned $ 3,319 $ 1,688 $ 665
Total
Nonperforming
Assets $ 42,476 $ 41,863 $ 27,161
Past Due Loans $ 36,252 $ 29,545 $ 33,098
Allowance for
Loan and Lease
Losses $ 64,650 $ 62,734 $ 58,564
Year-to-Date
(YTD) Net
Charge-Offs $ 18,665 $ 11,480 $ 22,800
Allowance for
Loan and Lease
Losses to
Total Loans
and Leases 1.79% 1.72% 1.60%
Total
Nonperforming
Loans to Total
Loans and
Leases 1.08% 1.10% 0.73%
Total
Nonperforming
Assets to
Total Assets 0.77% 0.77% 0.51%
Past Due Loans
to Total Loans
and Leases 1.00% 0.81% 0.91%
Allowance for
Loan and Lease
Losses to
Total
Nonperforming
Loans 165.10% 156.15% 221.03%
Net Charge-Offs
to YTD Average
Loans and
Leases 0.68% 0.63% 0.64%
============= ============= =============
Capital
Equity to
Assets 9.07% 8.09%
Book Value Per
Share $ 14.49 $ 13.24
Tangible Book
Value Per
Share $ 10.52 $ 9.01
Tier 1 Leverage
Ratio 8.30% 7.17%
Tier 1 Capital
Ratio 11.20% 9.75%
Total
Risk-Based
Capital Ratio 12.46% 11.00%
============= =============
Quarterly
Common Stock
Price 2009 2008 2007
Quarter End High Low High Low High Low
------ ------ ------ ------ ------ ------
March 31 $28.37 $15.42 $23.65 $17.95 $25.81 $21.73
June 30 $25.22 $20.49 25.00 20.33 23.45 21.80
September 30 $24.16 $20.57 36.47 19.05 23.80 17.10
December 31 30.83 21.71 25.00 20.58
(1) Annualized
(2) Calculated on a FTE basis
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
September 30, December 31, Net Percent
2009 2008 Change Change
------------- ------------- ------------ ------------
(dollars in thousands,
except per share data)
Balance Sheet
Loans and Leases $ 3,615,890 $ 3,651,911 $ (36,021) -1%
Earning Assets $ 5,036,086 $ 4,933,099 $ 102,987 2%
Total Assets $ 5,484,387 $ 5,336,088 $ 148,299 3%
Deposits $ 4,104,473 $ 3,923,258 $ 181,215 5%
Stockholders'
Equity $ 497,542 $ 431,845 $ 65,697 15%
============= ============= ============ ============
2009 2008
------------- -------------
(dollars in thousands,
except per share data)
Average Balances
Three Months Ended
September 30,
Loans and Leases $ 3,627,803 $ 3,605,700 $ 22,103 1%
Securities
Available For Sale
(excluding
unrealized gains
or losses) $ 1,082,655 $ 1,116,089 $ (33,434) -3%
Securities Held To
Maturity $ 161,915 $ 148,397 $ 13,518 9%
Trading Securities $ 2,109 $ 2,266 $ (157) -7%
Regulatory Equity
Investment $ 37,372 $ 40,401 $ (3,029) -7%
Short-Term Interest
Bearing Accounts $ 99,501 $ 4,077 $ 95,424 2341%
Total Earning
Assets $ 5,009,246 $ 4,914,664 $ 94,582 2%
Total Assets $ 5,415,374 $ 5,301,640 $ 113,734 2%
Interest Bearing
Deposits $ 3,316,011 $ 3,258,301 $ 57,710 2%
Non-Interest
Bearing Deposits $ 737,064 $ 706,803 $ 30,261 4%
Short-Term
Borrowings $ 132,459 $ 154,567 $ (22,108) -14%
Long-Term
Borrowings $ 660,838 $ 701,155 $ (40,317) -6%
Total Interest
Bearing
Liabilities $ 4,109,308 $ 4,114,023 $ (4,715) 0%
Stockholders'
Equity $ 489,140 $ 411,459 $ 77,681 19%
============= ============= ============ ============
Average Balances
Nine Months Ended
September 30,
Loans and Leases $ 3,646,437 $ 3,544,787 $ 101,650 3%
Securities
Available For Sale
(excluding
unrealized gains
or losses) $ 1,085,746 $ 1,112,582 $ (26,836) -2%
Securities Held To
Maturity $ 146,350 $ 153,010 $ (6,660) -4%
Trading Securities $ 1,801 $ 2,388 $ (587) -25%
Regulatory Equity
Investment $ 38,143 $ 39,730 $ (1,587) -4%
Short-Term Interest
Bearing Accounts $ 76,523 $ 6,517 $ 70,006 1074%
Total Earning
Assets $ 4,993,199 $ 4,856,626 $ 136,573 3%
Total Assets $ 5,405,331 $ 5,236,130 $ 169,201 3%
Interest Bearing
Deposits $ 3,336,644 $ 3,229,338 $ 107,306 3%
Non-Interest
Bearing Deposits $ 708,513 $ 678,277 $ 30,236 4%
Short-Term
Borrowings $ 133,668 $ 238,200 $ (104,532) -44%
Long-Term
Borrowings $ 683,830 $ 615,383 $ 68,447 11%
Total Interest
Bearing
Liabilities $ 4,154,142 $ 4,082,921 $ 71,221 2%
Stockholders'
Equity $ 469,236 $ 407,127 $ 62,109 15%
============= ============= ============ ============
NBT Bancorp Inc. and Subsidiaries September 30, December 31,
Consolidated Balance Sheets (unaudited) 2009 2008
------------- -------------
(in thousands)
ASSETS
Cash and due from banks $ 127,001 $ 107,409
Short term interest bearing accounts 118,224 2,987
Securities available for sale, at fair value 1,132,423 1,119,665
Securities held to maturity (fair value of
$170,851 and $141,308 at September 30, 2009
and December 31, 2008, respectively) 168,658 140,209
Trading securities 2,263 1,407
Federal Reserve and Federal Home Loan Bank
stock 37,103 39,045
Loans and leases 3,615,890 3,651,911
Less allowance for loan and lease losses 64,650 58,564
============= =============
Net loans and leases 3,551,240 3,593,347
Premises and equipment, net 65,652 65,241
Goodwill 114,942 114,838
Intangible assets, net 21,371 23,367
Bank owned life insurance 73,430 72,276
Other assets 72,080 56,297
------------- -------------
TOTAL ASSETS $ 5,484,387 $ 5,336,088
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $ 744,383 $ 685,495
Savings, NOW, and money market 2,204,456 1,885,551
Time 1,155,634 1,352,212
------------- -------------
Total deposits 4,104,473 3,923,258
Short-term borrowings 147,792 206,492
Long-term debt 579,712 632,209
Trust preferred debentures 75,422 75,422
Other liabilities 79,446 66,862
------------- -------------
Total liabilities 4,986,845 4,904,243
Total stockholders' equity 497,542 431,845
============= =============
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,484,387 $ 5,336,088
============= =============
NBT Bancorp Inc. and Subsidiaries Three months ended Nine months ended
Consolidated Statements of Income September 30, September 30,
(unaudited) 2009 2008 2009 2008
--------- --------- --------- ---------
(in thousands, except per share
data)
Interest, fee and dividend income:
Loans and leases $ 54,666 $ 58,154 $ 164,963 $ 173,991
Securities available for sale 11,116 13,451 35,162 40,614
Securities held to maturity 1,239 1,343 3,682 4,335
Other 615 673 1,582 2,187
--------- --------- --------- ---------
Total interest, fee and dividend
income 67,636 73,621 205,389 221,127
--------- --------- --------- ---------
Interest expense:
Deposits 12,002 18,351 38,964 59,761
Short-term borrowings 142 763 413 4,465
Long-term debt 5,761 6,310 17,956 16,241
Trust preferred debentures 1,049 1,154 3,211 3,547
--------- --------- --------- ---------
Total interest expense 18,954 26,578 60,544 84,014
--------- --------- --------- ---------
Net interest income 48,682 47,043 144,845 137,113
Provision for loan and lease losses 9,101 7,179 24,751 19,460
--------- --------- --------- ---------
Net interest income after provision
for loan and lease losses 39,581 39,864 120,094 117,653
--------- --------- --------- ---------
Noninterest income:
Trust 1,668 1,720 4,838 5,593
Service charges on deposit accounts 7,110 7,414 20,357 20,877
ATM and debit card fees 2,443 2,334 6,993 6,656
Insurance and broker/dealer revenue 4,368 2,338 13,926 4,811
Net securities gains 129 1,510 146 1,543
Bank owned life insurance income 683 923 2,225 2,438
Retirement plan administration fees 2,412 1,461 6,347 4,840
Other 2,037 1,262 5,453 4,718
--------- --------- --------- ---------
Total noninterest income 20,850 18,962 60,285 51,476
--------- --------- --------- ---------
Noninterest expense:
Salaries and employee benefits 21,272 16,850 62,646 50,526
Office supplies and postage 1,426 1,322 4,385 3,992
Occupancy 3,481 3,359 11,256 10,396
Equipment 1,997 1,908 6,024 5,595
Professional fees and outside
services 2,691 2,205 7,820 7,825
Data processing and communications 3,305 3,155 9,924 9,440
Amortization of intangible assets 827 462 2,465 1,231
Loan collection and other real
estate owned 755 505 2,177 1,802
Impairment on lease residual assets - 2,000 - 2,000
FDIC expenses 1,535 614 7,096 986
Other operating 3,743 4,678 11,483 12,722
--------- --------- --------- ---------
Total noninterest expense 41,032 37,058 125,276 106,515
--------- --------- --------- ---------
Income before income taxes 19,399 21,768 55,103 62,614
Income taxes 5,821 6,685 16,893 19,158
--------- --------- --------- ---------
Net income $ 13,578 $ 15,083 $ 38,210 $ 43,456
--------- --------- --------- ---------
Earnings Per Share:
Basic $ 0.40 $ 0.47 $ 1.14 $ 1.36
Diluted $ 0.40 $ 0.46 $ 1.13 $ 1.34
========= ========= ========= =========
NBT Bancorp Inc. and
Subsidiaries
Quarterly Consolidated
Statements of Income 3Q 2Q 1Q 4Q 3Q
(unaudited) 2009 2009 2009 2008 2008
--------- --------- --------- -------- ---------
(in thousands, except per
share data)
Interest, fee and
dividend income:
Loans and leases $ 54,666 $ 54,886 $ 55,411 $ 58,164 $ 58,154
Securities available for
sale 11,116 11,671 12,375 13,434 13,451
Securities held to
maturity 1,239 1,209 1,234 1,253 1,343
Other 615 606 361 436 673
--------- --------- --------- -------- ---------
Total interest, fee and
dividend income 67,636 68,372 69,381 73,287 73,621
--------- --------- --------- -------- ---------
Interest expense:
Deposits 12,002 13,123 13,839 16,371 18,351
Short-term borrowings 142 124 147 382 763
Long-term debt 5,761 5,998 6,197 6,401 6,310
Trust preferred
debentures 1,049 1,076 1,086 1,200 1,154
--------- --------- --------- -------- ---------
Total interest expense 18,954 20,321 21,269 24,354 26,578
--------- --------- --------- -------- ---------
Net interest income 48,682 48,051 48,112 48,933 47,043
Provision for loan and
lease losses 9,101 9,199 6,451 7,721 7,179
--------- --------- --------- -------- ---------
Net interest income after
provision for loan and
lease losses 39,581 38,852 41,661 41,212 39,864
--------- --------- --------- -------- ---------
Noninterest income:
Trust 1,668 1,761 1,409 1,685 1,720
Service charges on
deposit accounts 7,110 6,950 6,297 7,266 7,414
ATM and debit card fees 2,443 2,368 2,182 2,176 2,334
Insurance and
broker/dealer revenue 4,368 4,220 5,338 3,915 2,338
Net securities gains
(losses) 129 17 - (8) 1,510
Bank owned life insurance
income 683 670 872 2,484 924
Retirement plan
administration fees 2,412 2,194 1,741 1,468 1,461
Other 2,037 1,665 1,751 1,244 1,261
--------- --------- --------- -------- ---------
Total noninterest
income 20,850 19,845 19,590 20,230 18,962
--------- --------- --------- -------- ---------
Noninterest expense:
Salaries and employee
benefits 21,272 19,947 21,427 20,633 16,850
Office supplies and
postage 1,426 1,429 1,530 1,354 1,322
Occupancy 3,481 3,610 4,165 3,385 3,359
Equipment 1,997 2,005 2,022 1,944 1,908
Professional fees and
outside services 2,691 2,407 2,722 2,651 2,205
Data processing and
communications 3,305 3,324 3,295 3,254 3,155
Amortization of
intangible assets 827 825 813 874 462
Loan collection and other
real estate owned 755 674 748 692 505
Impairment on lease
residual assets - - - - 2,000
FDIC expenses 1,535 4,032 1,529 827 614
Other operating 3,743 3,686 4,054 4,684 4,678
--------- --------- --------- -------- ---------
Total noninterest
expense 41,032 41,939 42,305 40,298 37,058
--------- --------- --------- -------- ---------
Income before income
taxes 19,399 16,758 18,946 21,144 21,768
Income taxes 5,821 5,198 5,874 6,247 6,685
--------- --------- --------- -------- ---------
Net income $ 13,578 $ 11,560 $ 13,072 $ 14,897 $ 15,083
========= ========= ========= ======== =========
Earnings per share:
Basic $ 0.40 $ 0.34 $ 0.40 $ 0.46 $ 0.47
Diluted $ 0.40 $ 0.34 $ 0.40 $ 0.45 $ 0.46
========= ========= ========= ======== =========
Three months ended September 30,
2009 2008
(dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rates Balance Interest Rates
----------- -------- ---- ----------- -------- ----
ASSETS
Short-term interest
bearing accounts $ 99,501 $ 74 0.30% $ 4,077 $ 20 1.95%
Securities available
for sale (1)(excluding
unrealized gains or
losses) 1,082,655 11,859 4.35% 1,116,089 14,159 5.05%
Securities held to
maturity (1) 161,915 1,871 4.58% 148,397 2,026 5.43%
Investment in FRB and
FHLB Banks 37,372 541 5.74% 40,401 653 6.43%
Loans and leases (2) 3,627,803 54,857 6.00% 3,605,700 58,371 6.44%
----------- -------- ----------- --------
Total interest
earning assets 5,009,246 $ 69,202 5.48% 4,914,664 $ 75,229 6.09%
-------- --------
Trading securities 2,109 2,266
Other assets $ 404,019 384,710
----------- -----------
Total assets $ 5,415,374 $ 5,301,640
----------- -----------
LIABILITIES AND
STOCKHOLDERS' EQUITY
Money market deposit
accounts $ 1,025,345 $ 3,317 1.28% $ 779,954 $ 3,593 1.83%
NOW deposit accounts $ 582,307 694 0.47% 491,673 1,060 0.86%
Savings deposits $ 509,258 217 0.17% 474,602 514 0.43%
Time deposits 1,199,101 7,774 2.57% 1,512,072 13,184 3.47%
----------- -------- ----------- --------
Total interest
bearing deposits 3,316,011 12,002 1.44% 3,258,301 18,351 2.24%
Short-term borrowings $ 132,459 142 0.42% 154,567 763 1.96%
Trust preferred
debentures $ 75,422 1,049 5.52% 75,422 1,154 6.09%
Long-term debt $ 585,416 5,761 3.90% 625,733 6,310 4.01%
----------- -------- ----------- --------
Total interest
bearing
liabilities 4,109,308 $ 18,954 1.83% 4,114,023 $ 26,578 2.57%
-------- --------
Demand deposits $ 737,064 706,803
Other liabilities $ 79,862 69,355
Stockholders' equity 489,140 411,459
----------- -----------
Total liabilities and
stockholders' equity $ 5,415,374 $ 5,301,640
----------- -----------
Net interest income
(FTE) 50,248 48,651
-------- --------
Interest rate spread 3.64% 3.52%
Net interest margin 3.98% 3.94%
Taxable equivalent
adjustment 1,566 1,608
-------- --------
Net interest income 48,682 $ 47,043
(1) Securities are shown at average amortized cost
(2) For purposes of these computations, nonaccrual loans are included in
the average loan balances outstanding
Nine months ended September 30,
2009 2008
(dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rates Balance Interest Rates
----------- --------- ---- ----------- --------- ----
ASSETS
Short-term interest
bearing accounts $ 76,523 $ 150 0.26% $ 6,517 $ 145 2.98%
Securities
available for sale
(1)(excluding
unrealized gains
or losses) 1,085,746 37,399 4.61% 1,112,582 42,689 5.13%
Securities held to
maturity (1) 146,350 5,553 5.07% 153,010 6,544 5.71%
Investment in FRB
and FHLB Banks 38,143 1,432 5.02% 39,730 2,042 6.87%
Loans and leases
(2) 3,646,437 165,578 6.07% 3,544,787 174,635 6.58%
----------- --------- ----------- ---------
Total interest
earning assets 4,993,199 $ 210,112 5.63% 4,856,626 $ 226,055 6.22%
--------- ---------
Trading securities 1,801 2,388
Other assets $ 410,331 377,116
----------- -----------
Total assets $ 5,405,331 $ 5,236,130
----------- -----------
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Money market
deposit accounts $ 995,233 $ 9,806 1.32% $ 736,313 $ 10,724 1.95%
NOW deposit
accounts $ 571,478 2,328 0.54% 464,396 2,943 0.85%
Savings deposits $ 497,040 631 0.17% 469,335 1,780 0.51%
Time deposits 1,272,893 26,199 2.75% 1,559,294 44,314 3.80%
----------- --------- ----------- ---------
Total interest
bearing deposits 3,336,644 38,964 1.56% 3,229,338 59,761 2.47%
Short-term
borrowings $ 133,668 413 0.41% 238,200 4,465 2.50%
Trust preferred
debentures $ 75,422 3,211 5.69% 75,422 3,547 6.28%
Long-term debt $ 608,408 17,956 3.95% 539,961 16,241 4.02%
----------- --------- ----------- ---------
Total interest
bearing
liabilities 4,154,142 $ 60,544 1.95% 4,082,921 $ 84,014 2.75%
--------- ---------
Demand deposits $ 708,513 678,277
Other liabilities $ 73,440 67,805
Stockholders'
equity 469,236 407,127
----------- -----------
Total liabilities
and stockholders'
equity $ 5,405,331 $ 5,236,130
----------- -----------
Net interest
income (FTE) 149,568 142,041
--------- ---------
Interest rate
spread 3.67% 3.47%
Net interest margin 4.00% 3.91%
Taxable equivalent
adjustment 4,723 4,928
--------- ---------
Net interest income $ 144,845 $ 137,113
(1) Securities are shown at average amortized cost
(2) For purposes of these computations, nonaccrual loans are included in
the average loan balances outstanding
NBT Bancorp Inc. and Subsidiaries
Loans and Leases (Unaudited)
September 30, December 31,
(In thousands) 2009 2008
------------- -------------
Residential real estate mortgages $ 638,001 $ 722,723
Commercial 545,001 572,059
Commercial real estate mortgages 683,623 669,720
Real estate construction and development 77,391 67,859
Agricultural and agricultural real estate
mortgages 122,691 113,566
Consumer 870,766 795,123
Home equity 609,571 627,603
Lease financing 68,846 83,258
------------- -------------
Total loans and leases $ 3,615,890 $ 3,651,911
============= =============
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.