NBT Bancorp Inc. Announces Year-to-Date Net Income of $29.0 Million; Declares Cash Dividend
NORWICH, N.Y., Jul 25, 2011 (GlobeNewswire via COMTEX) --
NBT Bancorp Inc. (NBT) (Nasdaq:NBTB) reported today net income for the six months ended June 30, 2011 was $29.0 million, up $0.6 million, or 2.0%, from the six months ended June 30, 2010. Net income per diluted share for the six months ended June 30, 2011 was $0.84 per share, up from $0.82 per diluted share for the six months ended June 30, 2010. Annualized return on average assets and return on average equity were 1.08% and 10.82%, respectively, for the six months ended June 30, 2011, compared with 1.04% and 11.07%, respectively, for the six months ended June 30, 2010. Net interest margin (on a fully taxable equivalent basis ("FTE")) was 4.12% for the six months ended June 30, 2011, down 5 basis points ("bps") from 4.17% for the six months ended June 30, 2010.
Net income for the three months ended June 30, 2011 was $14.7 million, up $0.2 million, or 1.6%, from the three months ended June 30, 2010. Net income per diluted share for the three months ended June 30, 2011 was $0.43 per share, up from $0.42 per diluted share for the three months ended June 30, 2010. Annualized return on average assets and return on average equity were 1.09% and 10.86%, respectively, for the three months ended June 30, 2011, compared with 1.06% and 11.09%, respectively, for the three months ended June 30, 2010. Net interest margin (FTE) was 4.13% for the three months ended June 30, 2011, down slightly from 4.14% for the three months ended June 30, 2010.
Key items for the first six months of 2011 include:
-- Diluted earnings per share of $0.84 for the first six months of 2011 was
the second highest in the Company's history; second to $0.88 for the
same period in 2008.
-- Net interest margin was 4.12% for the first six months of 2011, down
from 4.17% for the same period of 2010, a result of the continued low
rate environment on loan and investment yields.
-- Net charge-offs were 0.60% of average loans and leases for the first six
months of 2011, down 6 bps from the first six months of 2010; provision
for loan and lease losses was down $5.6 million for the same period.
-- Continued strategic expansion with the announcement of the acquisition
of four branches in Berkshire County, Massachusetts, pending regulatory
approval.
"Our near record earnings for the first six months of 2011 are further evidence of our company's strong performance. Our financial results for 2008 through 2010 represented the most profitable three year term in our company's history, during a period of time when the banking industry had record losses. We continue to make investments to further strengthen our already strong foundation to better position us for future success. Our recent announcement to expand into western Massachusetts with the acquisition of four Legacy Banks branches is another exciting investment we are making in our future. Our strong balance sheet and earnings momentum, along with a passionate and professional team of employees, continues to position us well to take advantage of new growth opportunities," said NBT President and CEO Martin Dietrich.
Loan and Lease Quality and Provision for Loan and Lease Losses
The provision for loan and lease losses was $10.0 million for the first six months of 2011, down $5.6 million from the $15.6 million recorded in the first six months of 2010. Net charge-offs were $10.7 million for the first six months of 2011 representing 0.60% of average loans and leases for the period versus $11.8 million, or 0.66% of average loans and leases for the first six months of 2010.
The provision for loan and lease losses was $6.0 million for the second quarter of 2011, down from $6.4 million recorded in the second quarter of 2010. Net charge-offs were $5.5 million for the second quarter of 2011 representing 0.60% of average loans and leases for the quarter versus $6.2 million, or 0.68% of average loans and leases for the second quarter of 2010. The general improvement in asset quality indicators contributed to the decrease in the provision for loan and lease losses.
Nonperforming loans were $41.7 million at June 30, 2011, down from $48.7 million at March 31, 2011 and $44.8 million at December 31, 2010. This decrease in nonperforming loans was due primarily to the payoff of a large commercial credit as well as various commercial charge-offs. Past due loans were up slightly to 0.69% of total loans at June 30, 2011 from 0.66% at March 31, 2011, but down considerably from 0.86% at December 31, 2010. The allowance for loan and lease losses was $70.5 million at June 30, 2011, relatively flat compared to $69.9 million at March 31, 2011 and $71.2 million at December 31, 2010. The allowance for loan and lease losses represented 1.92% of loans and leases at June 30, 2011, compared to 1.93% at March 31, 2011 and 1.97% at December 31, 2010.
Net Interest Income
Net interest income was down 2.0% to $99.4 million for the six months ended June 30, 2011, compared with $101.4 million for the six months ended June 30, 2010. The Company's FTE net interest margin was 4.12% for the six months ended June 30, 2011, down from 4.17% for the six months ended June 30, 2010.
While the yield on interest bearing liabilities decreased 31 bps, the yield on interest earning assets declined 35 bps, resulting in margin compression for the six months ended June 30, 2011, compared to the same period for 2010. The yield on securities available for sale was 3.12% for the six months ended June 30, 2011, as compared with 3.86% for the six months ended June 30, 2010. The yield on loans and leases was 5.69% for the six months ended June 30, 2011, as compared with 5.96% for the six months ended June 30, 2010. The yield on time deposits was 1.87% for the six months ended June 30, 2011, as compared with 2.16% for the six months ended June 30, 2010. The yield on money market deposit accounts was 0.39% for the six months ended June 30, 2011, as compared with 0.66% for the six months ended June 30, 2010.
Net interest income was down 0.9% to $50.2 million for the three months ended June 30, 2011, compared with $50.6 million for the three months ended June 30, 2010. The Company's FTE net interest margin was 4.13% for the three months ended June 30, 2011, down slightly from 4.14% for the three months ended June 30, 2010.
The yield on interest bearing liabilities and interest earning assets each decreased 32 bps, which resulted in a fairly stable margin for the three months ended June 30, 2011 as compared with the three months ended June 30, 2010. The yield on securities available for sale was 3.11% for the three months ended June 30, 2011, as compared with 3.70% for the three months ended June 30, 2010. The yield on loans and leases was 5.65% for the three months ended June 30, 2011, as compared with 5.92% for the three months ended June 30, 2010. The yield on time deposits was 1.85% for the three months ended June 30, 2011, as compared with 2.12% for the three months ended June 30, 2010. The yield on money market deposit accounts was 0.37% for the three months ended June 30, 2011, as compared with 0.62% for the three months ended June 30, 2010.
Noninterest Income
Noninterest income for the six months ended June 30, 2011 was $40.0 million, down slightly from $40.7 million for the same period in 2010. Insurance and other financial services revenue increased approximately $0.9 million for the six months ended June 30, 2011, as compared to the six months ended June 30, 2010, due primarily to new business generated from markets where we have recently expanded and improved market conditions. Trust revenue increased approximately $0.6 million for the six months ended June 30, 2011, as compared to the six months ended June 30, 2010, due primarily to the addition of new business generated from markets where we have recently expanded, and an increase in the fair market value of trust assets under administration. ATM and debit card fees also increased approximately $0.8 million for the six months ended June 30, 2011, as compared to the six months ended June 30, 2010 due to an increase in activity. These increases were offset by a decrease in service charges on deposit accounts of approximately $1.9 million, or 15.3%, for the six months ended June 30, 2011, as compared with the same period in 2010. The decrease in service charges was the result of a decrease in overdraft activity due to the effects of implementing new regulations regarding overdraft fees in the third quarter of 2010. In addition, retirement plan administration fees decreased by $0.5 million, or 11.0%, for the six months ended June 30, 2011 as compared to the same period in 2010. We experienced increases in new business and market-based fees, yet these were offset by the loss of one client.
Noninterest income for the three months ended June 30, 2011 was $19.9 million, down slightly from $20.3 million for the same period in 2010. Insurance and other financial services revenue increased approximately $0.3 million for the three months ended June 30, 2011, as compared to the three months ended June 30, 2010, due primarily to new business generated from markets where we have recently expanded and improved market conditions. Trust revenue increased approximately $0.3 million for the three months ended June 30, 2011, as compared to the three months ended June 30, 2010, due primarily to the addition of new business generated from markets where we have recently expanded, and an increase in the fair market value of trust assets under administration. ATM and debit card fees also increased approximately $0.5 million for the three months ended June 30, 2011, as compared to the three months ended June 30, 2010. These increases were offset by a decrease in service charges on deposit accounts of approximately $0.8 million, or 13.4%, for the three months ended June 30, 2011, as compared with the same period in 2010. The decrease in service charges was the result of a decrease in overdraft activity due to the effects of implementing new regulations regarding overdraft fees in the third quarter of 2010. In addition, retirement plan administration fees decreased by $0.3 million, or 12.6%, for the three months ended June 30, 2011 as compared to the same period in 2010. We experienced increases in new business and market-based fees, yet these were offset by the loss of one client.
Noninterest Expense and Income Tax Expense
Noninterest expense for the six months ended June 30, 2011 was $88.2 million, up from $86.4 million, or 2.2%, for the same period in 2010. Salaries and employee benefits increased $2.6 million, or 5.6%, for the six months ended June 30, 2011, compared with the same period in 2010. This increase was due primarily to increases in full-time-equivalent employees, merit increases and other employee benefits. In addition, occupancy expenses increased approximately $0.7 million for the six months ended June 30, 2011, as compared to the same period in 2010, primarily due to continued branch expansion and expenses related to the harsh winter. Other operating expenses consisting of various items increased approximately $0.4 million for the six months ended June 30, 2011, as compared to the same period in 2010 with no significant driver. These increases were partially offset by a decrease in data processing and communications expenses of approximately $0.5 million for the six months ended June 30, 2011, as compared to the six months ended June 30, 2010. This decrease was due to the renegotiation of a data processing contract resulting in a decrease in processing fees. FDIC expenses decreased approximately $0.7 million for the first six months of 2011 as compared to the same period in 2010 due to the Federal Deposit Insurance Corporation (FDIC) redefining the deposit insurance assessment base. In addition, loan collection and other real estate owned expenses decreased approximately $0.6 million for the six months ended June 30, 2011, as compared to the six months ended June 30, 2010. This decrease was due primarily to sales of certain properties classified as other real estate owned resulting in a reduction in maintenance expenses on properties owned by the Company. Income tax expense for the six month period ended June 30, 2011 was $12.2 million, up from $11.7 million for the same period in 2010. The effective tax rate was 29.7% for the six months ended June 30, 2011, as compared to 29.2% for the same period in 2010.
Noninterest expense for the three months ended June 30, 2011 was $43.2 million, down from $44.2 million, or 2.4%, for the same period in 2010. FDIC expenses decreased approximately $0.6 million for the three months ended June 30, 2011 as compared to the same period in 2010, due to the aforementioned redefined deposit insurance assessment base. In addition, loan collection and other real estate owned expenses decreased approximately $0.2 million for the three months ended June 30, 2011, as compared to the three months ended June 30, 2010. This decrease was due primarily to sales of certain properties classified as other real estate owned resulting in a reduction in maintenance expenses on properties owned by the Company. Other operating expenses consisting of various items decreased approximately $0.3 million for the three months ended June 30, 2011, as compared to the same period in 2010 with no significant driver. These decreases were partially offset by an increase in occupancy expenses of approximately $0.3 million for the three months ended June 30, 2011, as compared to the same period in 2010, primarily due to continued branch expansion. Income tax expense for the three month period ended June 30, 2011 was $6.2 million, up from $6.0 million for the same period in 2010. The effective tax rate was 29.7% for the three months ended June 30, 2011, as compared to 29.2% for the same period in 2010.
Balance Sheet
Total assets were $5.3 billion at June 30, 2011 and December 31, 2010. Loans and leases were $3.7 billion at June 30, 2011, up $54.5 million from December 31, 2010. Total deposits were $4.1 billion at June 30, 2011, down $19.7 million from December 31, 2010. Stockholders' equity was $535.3 million, representing a total equity-to-total assets ratio of 10.03% at June 30, 2011, compared with $533.6 million or a total equity-to-total assets ratio of 9.99% at December 31, 2010.
Stock Repurchase Program
Under a previously disclosed stock repurchase plan, the Company purchased 976,190 shares of its common stock during the six month period ended June 30, 2011, for a total of $21.2 million at an average price of $21.68 per share. At June 30, 2011, there were no shares available for repurchase under this plan.
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 July 25, 2011, as market conditions warrant in open market and privately negotiated transactions. The plan expires on December 31, 2013.
Dividend Declared
The NBT Board of Directors declared a 2011 third-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on September 15, 2011 to shareholders of record as of September 1, 2011.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $5.3 billion at June 30, 2011. 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 85 NBT Bank offices in upstate New York, two NBT Bank offices in northwestern Vermont and 36 Pennstar Bank offices in northeastern Pennsylvania. EPIC Advisors, Inc., based in Rochester, N.Y., is a full-service 401(k) plan recordkeeping firm. Mang Insurance Agency, LLC, based in Norwich, N.Y., 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
2011 2010 Change Change
---------- ---------- --------- -------
(dollars in thousands,
except per share data)
Three Months Ended June 30,
Net Income $14,655 $14,424 $231 2%
Diluted Earnings Per Share $0.43 $0.42 $0.01 2%
Weighted Average Diluted
Common Shares Outstanding 34,319,665 34,565,005 (245,340) -1%
Return on Average Assets (1) 1.09% 1.06% 3 bp 3%
Return on Average Equity (1) 10.86% 11.09% -23 bp -2%
Net Interest Margin (2) 4.13% 4.14% -1 bp 0%
------------------------------ ---------- ---------- --------- -------
Six Months Ended June 30,
Net Income $28,962 $28,400 $562 2%
Diluted Earnings Per Share $0.84 $0.82 $0.02 2%
Weighted Average Diluted
Common Shares Outstanding 34,491,627 34,485,201 6,426 0%
Return on Average Assets 1.08% 1.04% 4 bp 4%
Return on Average Equity 10.82% 11.07% -25 bp -2%
Net Interest Margin (2) 4.12% 4.17% -5 bp -1%
------------------------------ ---------- ---------- --------- -------
December
Asset Quality June 30, 31,
2011 2010
---------- ----------
Nonaccrual Loans $40,191 $42,467
90 Days Past Due and Still
Accruing $1,459 $2,325
Total Nonperforming Loans $41,650 $44,792
Other Real Estate Owned $1,034 $901
Total Nonperforming Assets $42,684 $45,693
Past Due Loans $25,399 $31,004
Potential Problem Loans $92,736 $82,247
Allowance for Loan and Lease
Losses $70,484 $71,234
Year-to-Date (YTD) Net
Charge-Offs $10,736 $25,125
Allowance for Loan and Lease
Losses to Total Loans and
Leases 1.92% 1.97%
Total Nonperforming Loans to
Total Loans and Leases 1.14% 1.24%
Total Nonperforming Assets to
Total Assets 0.80% 0.86%
Past Due Loans to Total Loans
and Leases 0.69% 0.86%
Allowance for Loan and Lease
Losses to Total Nonperforming
Loans 169.23% 159.03%
Net Charge-Offs to YTD Average
Loans and Leases 0.60% 0.69%
------------------------------ ---------- ---------- ------------------
Capital
Equity to Assets 10.03% 9.99%
Book Value Per Share $15.94 $15.51
Tangible Book Value Per Share $11.93 $11.67
Tier 1 Leverage Ratio 9.13% 9.16%
Tier 1 Capital Ratio 12.23% 12.44%
Total Risk-Based Capital Ratio 13.49% 13.70%
------------------------------ ---------- ---------- ------------------
------------------------------------------------------
Quarterly Common Stock Price 2011 2010
High High
Quarter End Low Low
---------- ----------
$24.98 $23.99
March 31 $21.55 $19.15
$23.32 $25.96
June 30 $20.62 $20.33
$23.06
September 30 $19.27
$24.96
December 31 $21.41
------------------------------ ---------- ----------
(1) Annualized
(2) Calculated on a FTE basis
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
December
June 30, 31,
Percent
2011 2010 Net Change Change
---------- ---------- ---------- -------
(dollars in thousands,
except per share data)
Balance Sheet
Loans and Leases $3,664,517 $3,610,006 $54,511 2%
Earning Assets $4,900,597 $4,914,972 ($14,375) 0%
Total Assets $5,336,996 $5,338,856 ($1,860) 0%
Deposits $4,114,613 $4,134,352 ($19,739) 0%
Stockholders' Equity $535,263 $533,572 $1,691 0%
--------------------------- ---------- ---------- ---------- -------
2011 2010
---------- ----------
(dollars in thousands,
Average Balances except per share data)
Three Months Ended June 30,
Loans and Leases $3,648,343 $3,640,915 $7,428
Securities Available For
Sale
(excluding unrealized gains
or losses) $1,098,964 $1,114,315 ($15,351)
Securities Held To Maturity $85,615 $148,568 ($62,953)
Trading Securities $3,202 $2,605 $597
Regulatory Equity
Investment $27,071 $33,199 ($6,128)
Short-Term Interest Bearing
Accounts $128,799 $106,784 $22,015
Total Earning Assets $4,988,792 $5,043,781 ($54,989)
Total Assets $5,412,979 $5,482,336 ($69,357)
Interest Bearing Deposits $3,290,469 $3,372,297 ($81,828)
Non-Interest Bearing
Deposits $932,066 $779,841 $152,225
Short-Term Borrowings $135,618 $151,985 ($16,367)
Long-Term Borrowings $444,881 $577,179 ($132,298)
Total Interest Bearing
Liabilities $3,870,968 $4,101,461 ($230,493)
Stockholders' Equity $541,349 $521,632 $19,717
--------------------------- ---------- ---------- ----------
Average Balances
Six Months Ended June 30,
Loans and Leases $3,632,355 $3,640,528 ($8,173)
Securities Available For
Sale
(excluding unrealized gains
or losses) $1,098,506 $1,101,530 ($3,024)
Securities Held To Maturity $89,833 $152,164 ($62,331)
Trading Securities $3,086 $2,517 $569
Regulatory Equity
Investment $27,158 $33,959 ($6,801)
Short-Term Interest Bearing
Accounts $135,019 $115,354 $19,665
Total Earning Assets $4,982,871 $5,043,535 ($60,664)
Total Assets $5,405,062 $5,485,920 ($80,858)
Interest Bearing Deposits $3,290,198 $3,374,231 ($84,033)
Non-Interest Bearing
Deposits $918,483 $769,744 $148,739
Short-Term Borrowings $144,447 $154,605 ($10,158)
Long-Term Borrowings $445,139 $589,396 ($144,257)
Total Interest Bearing
Liabilities $3,879,784 $4,118,232 ($238,448)
Stockholders' Equity $539,789 $517,426 $22,363
--------------------------- ---------- ---------- ----------
NBT Bancorp Inc. and
Subsidiaries June 30, December 31,
Consolidated Balance Sheets
(unaudited) 2011 2010
------------------------------ ------------- -------------
(in thousands)
ASSETS
Cash and due from banks $ 101,936 $ 99,673
Short term interest bearing
accounts 830 69,119
Securities available for sale,
at fair value 1,156,679 1,129,368
Securities held to maturity
(fair value of $78,357and
$98,759 76,878 97,310
at June 30, 2011 and December
31, 2010, respectively)
Trading securities 3,276 2,808
Federal Reserve and Federal
Home Loan Bank stock 27,425 27,246
Loans and leases 3,664,517 3,610,006
Less allowance for loan and
lease losses 70,484 71,234
------------------------------ ------------- -------------
Net loans and leases 3,594,033 3,538,772
Premises and equipment, net 66,898 67,404
Goodwill 116,127 114,841
Intangible assets, net 18,402 17,543
Bank owned life insurance 76,996 75,301
Other assets 97,516 99,471
------------------------------ ------------- -------------
TOTAL ASSETS $ 5,336,996 $ 5,338,856
------------------------------ ------------- -------------
LIABILITIES AND STOCKHOLDERS'
EQUITY
Deposits:
Demand (noninterest bearing) $ 930,292 $ 911,741
Savings, NOW, and money
market 2,288,515 2,291,833
Time 895,806 930,778
------------------------------ ------------- -------------
Total deposits 4,114,613 4,134,352
Short-term borrowings 175,958 159,434
Long-term debt 370,350 369,874
Trust preferred debentures 75,422 75,422
Other liabilities 65,390 66,202
------------------------------ ------------- -------------
Total liabilities 4,801,733 4,805,284
Total stockholders' equity 535,263 533,572
------------------------------ ------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 5,336,996 $ 5,338,856
------------------------------ ------------- -------------
Three Months Ended Six Months Ended
NBT Bancorp Inc. and
Subsidiaries June 30, June 30,
Consolidated Statements of
Income (unaudited) 2011 2010 2011 2010
------------------------------ ---------- --------- ----------- ----------
(in thousands, except per
share data)
Interest, fee and dividend
income:
Loans and leases $ 51,126 $ 53,503 $ 101,986 $ 107,195
Securities available for sale 7,947 9,556 15,851 19,602
Securities held to maturity 745 1,078 1,545 2,215
Other 440 469 933 1,065
------------------------------ ---------- --------- ----------- ----------
Total interest, fee and
dividend income 60,258 64,606 120,315 130,077
------------------------------ ---------- --------- ----------- ----------
Interest expense:
Deposits 6,051 7,999 12,338 16,453
Short-term borrowings 52 123 110 247
Long-term debt 3,591 4,850 7,162 9,915
Trust preferred debentures 400 1,033 1,289 2,060
------------------------------ ---------- --------- ----------- ----------
Total interest expense 10,094 14,005 20,899 28,675
------------------------------ ---------- --------- ----------- ----------
Net interest income 50,164 50,601 99,416 101,402
Provision for loan and lease
losses 6,021 6,350 9,986 15,593
------------------------------ ---------- --------- ----------- ----------
Net interest income after
provision for loan and lease
losses 44,143 44,251 89,430 85,809
------------------------------ ---------- --------- ----------- ----------
Noninterest income:
Trust 2,258 1,909 4,294 3,675
Service charges on deposit
accounts 5,455 6,301 10,527 12,431
ATM and debit card fees 2,928 2,462 5,596 4,829
Insurance and other financial
services revenue 5,025 4,700 10,798 9,945
Net securities gains 59 63 86 91
Bank owned life insurance
income 660 808 1,695 1,789
Retirement plan administration
fees 2,268 2,595 4,439 4,985
Other 1,208 1,482 2,552 2,916
------------------------------ ---------- --------- ----------- ----------
Total noninterest income 19,861 20,320 39,987 40,661
------------------------------ ---------- --------- ----------- ----------
Noninterest expense:
Salaries and employee benefits 24,035 24,224 49,039 46,428
Office supplies and postage 1,342 1,454 2,887 2,996
Occupancy 3,987 3,666 8,509 7,818
Equipment 2,180 2,041 4,370 4,141
Professional fees and outside
services 2,088 2,191 4,154 4,475
Data processing and
communications 3,117 3,265 6,031 6,483
Amortization of intangible
assets 771 780 1,504 1,561
Loan collection and other real
estate owned 443 668 1,162 1,727
Advertising 1,033 825 1,601 1,492
FDIC expenses 965 1,560 2,461 3,113
Other operating 3,196 3,523 6,500 6,123
------------------------------ ---------- --------- ----------- ----------
Total noninterest expense 43,157 44,197 88,218 86,357
------------------------------ ---------- --------- ----------- ----------
Income before income taxes 20,847 20,374 41,199 40,113
Income taxes 6,192 5,950 12,237 11,713
------------------------------ ---------- --------- ----------- ----------
Net income $ 14,655 $ 14,424 $ 28,962 $ 28,400
------------------------------ ---------- --------- ----------- ----------
Earnings Per Share:
Basic $ 0.43 $ 0.42 $ 0.85 $ 0.83
Diluted $ 0.43 $ 0.42 $ 0.84 $ 0.82
------------------------------ ---------- --------- ----------- ----------
NBT Bancorp Inc. and
Subsidiaries 2Q 1Q 4Q 3Q 2Q
Quarterly Consolidated
Statements of Income
(unaudited) 2011 2011 2010 2010 2010
------------------------------ ---------- --------- --------- --------- ---------
(in thousands, except per
share data)
Interest, fee and dividend
income:
Loans and leases $ 51,126 $ 50,860 $ 52,933 $ 53,301 $ 53,503
Securities available for sale 7,947 7,904 7,944 8,621 9,556
Securities held to maturity 745 800 845 908 1,078
Other 440 493 627 482 469
------------------------------ ---------- --------- --------- --------- ---------
Total interest, fee and
dividend income 60,258 60,057 62,349 63,312 64,606
------------------------------ ---------- --------- --------- --------- ---------
Interest expense:
Deposits 6,051 6,287 6,727 7,174 7,999
Short-term borrowings 52 58 64 91 123
Long-term debt 3,591 3,571 4,025 4,374 4,850
Trust preferred debentures 400 889 1,034 1,046 1,033
------------------------------ ---------- --------- --------- --------- ---------
Total interest expense 10,094 10,805 11,850 12,685 14,005
------------------------------ ---------- --------- --------- --------- ---------
Net interest income 50,164 49,252 50,499 50,627 50,601
Provision for loan and lease
losses 6,021 3,965 6,687 7,529 6,350
------------------------------ ---------- --------- --------- --------- ---------
Net interest income after
provision for loan and lease
losses 44,143 45,287 43,812 43,098 44,251
------------------------------ ---------- --------- --------- --------- ---------
Noninterest income:
Trust 2,258 2,036 2,261 1,786 1,909
Service charges on deposit
accounts 5,455 5,072 5,657 5,953 6,301
ATM and debit card fees 2,928 2,668 2,546 2,660 2,462
Insurance and other financial
services revenue 5,025 5,773 4,327 4,595 4,700
Net securities gains 59 27 2,063 1,120 63
Bank owned life insurance
income 660 1,035 872 655 808
Retirement plan administration
fees 2,268 2,171 2,759 2,612 2,595
Other 1,208 1,344 1,751 1,610 1,482
------------------------------ ---------- --------- --------- --------- ---------
Total noninterest income 19,861 20,126 22,236 20,991 20,320
------------------------------ ---------- --------- --------- --------- ---------
Noninterest expense:
Salaries and employee benefits 24,035 25,004 23,200 24,090 24,224
Office supplies and postage 1,342 1,545 1,564 1,542 1,454
Occupancy 3,987 4,522 3,823 3,709 3,666
Equipment 2,180 2,190 2,123 2,053 2,041
Professional fees and outside
services 2,088 2,066 2,489 2,068 2,191
Data processing and
communications 3,117 2,914 2,893 2,971 3,265
Amortization of intangible
assets 771 733 744 767 780
Loan collection and other real
estate owned 443 719 761 548 668
Advertising 1,033 568 1,266 730 825
FDIC expenses 965 1,496 1,347 1,621 1,560
Prepayment penalty on
long-term debt -- -- 3,321 1,205 --
Other operating 3,196 3,304 3,719 3,380 3,523
------------------------------ ---------- --------- --------- --------- ---------
Total noninterest expense 43,157 45,061 47,250 44,684 44,197
------------------------------ ---------- --------- --------- --------- ---------
Income before income taxes 20,847 20,352 18,798 19,405 20,374
Income taxes 6,192 6,045 4,364 4,835 5,950
------------------------------ ---------- --------- --------- --------- ---------
Net income $ 14,655 $ 14,307 $ 14,434 $ 14,570 $ 14,424
------------------------------ ---------- --------- --------- --------- ---------
Earnings per share:
Basic $ 0.43 $ 0.42 $ 0.42 $ 0.42 $ 0.42
Diluted $ 0.43 $ 0.41 $ 0.42 $ 0.42 $ 0.42
------------------------------ ---------- --------- --------- --------- ---------
Three Months ended June 30,
--------------------------------------------------------------------
2011 2010
Average Yield/ Average Yield/
(dollars in thousands) Balance Interest Rates Balance Interest Rates
------------------------------- ------------- ---------- ------ ------------- ---------- ------
ASSETS
Short-term interest bearing
accounts $128,799 $111 0.35% $106,784 $75 0.28%
Securities available for sale
(1)(excluding unrealized gains
or losses) 1,098,964 8,512 3.11% 1,114,315 10,286 3.70%
Securities held to maturity (1) 85,615 1,125 5.27% 148,568 1,624 4.38%
Investment in FRB and FHLB
Banks 27,071 329 4.87% 33,199 394 4.76%
Loans and leases (2) 3,648,343 51,359 3,640,915 53,713
------------- ---------- 5.65% ------------- ---------- 5.92%
Total interest earning assets $ 4,988,792 $ 61,436 $ 66,092
---------- 4.94% $ 5,043,781 ---------- 5.26%
Other assets 424,187 438,555
------------- -------------
Total assets $ 5,412,979 $ 5,482,336
------------- -------------
LIABILITIES AND STOCKHOLDERS'
EQUITY
Money market deposit accounts $1,091,001 1,009 0.37% $1,130,124 $ 1,743 0.62%
NOW deposit accounts 672,345 627 0.37% 689,079 770 0.45%
Savings deposits 607,533 182 0.12% 557,109 214 0.15%
Time deposits 919,590 4,233 995,985 5,272
------------- ---------- 1.85% ------------- ---------- 2.12%
Total interest bearing
deposits $ 3,290,469 $ 6,051 0.74% $ 3,372,297 $ 7,999 0.95%
Short-term borrowings 135,618 52 0.15% 151,985 123 0.32%
Trust preferred debentures 75,422 400 2.13% 75,422 1,033 5.49%
Long-term debt 369,459 3,591 501,757 4,850
------------- ---------- 3.90% ------------- ---------- 3.88%
Total interest bearing
liabilities $ 3,870,968 $ 10,094 $ 14,005
---------- 1.05% $ 4,101,461 ---------- 1.37%
Demand deposits 932,066 779,841
Other liabilities 68,596 79,402
Stockholders' equity 541,349 521,632
------------- -------------
Total liabilities and
stockholders' equity $ 5,412,979 $5,482,336
------------- -------------
Net interest income (FTE) 51,342 52,087
---------- ----------
Interest rate spread 3.89% 3.89%
Net interest margin 4.13% 4.14%
Taxable equivalent adjustment 1,178 1,486
---------- ----------
Net interest income $ 50,164 $ 50,601
(1) Securities are shown at average amortized cost
(2) For purposes of these computations, nonaccrual loans are included in the average loan balances
outstanding
Six Months ended June 30,
----------------------------------------------------------------------
------------- 2011 2010
Average
------------- Yield/ Average Yield/
(dollars in thousands) Balance Interest Rates Balance Interest Rates
------------------------------- ------------- ----------- ------ ------------- ----------- ------
ASSETS
Short-term interest bearing
accounts $135,019 $180 0.27% $115,354 $142 0.25%
Securities available for sale
(1)(excluding unrealized gains
or losses) 1,098,506 17,013 3.12% 1,101,530 21,068 3.86%
Securities held to maturity (1) 89,833 2,327 5.22% 152,164 3,338 4.42%
Investment in FRB and FHLB
Banks 27,158 754 5.60% 33,959 924 5.48%
Loans and leases (2) 3,632,355 102,451 3,640,528 107,591
------------- ----------- 5.69% ------------- ----------- 5.96%
Total interest earning assets $ 4,982,871 $ 122,725 $ 133,063
----------- 4.97% $ 5,043,535 ----------- 5.32%
Other assets 422,191 442,385
------------- -------------
Total assets $ 5,405,062 $ 5,485,920
------------- -------------
LIABILITIES AND STOCKHOLDERS'
EQUITY
Money market deposit accounts $1,088,456 2,125 0.39% $1,112,154 $ 3,639 0.66%
NOW deposit accounts 685,171 1,261 0.37% 705,538 1,591 0.45%
Savings deposits 591,043 347 0.12% 544,961 407 0.15%
Time deposits 925,528 8,605 1,011,578 10,816
------------- ----------- 1.87% ------------- ----------- 2.16%
Total interest bearing
deposits $ 3,290,198 $ 12,338 0.76% $ 3,374,231 $ 16,453 0.98%
Short-term borrowings 144,447 110 0.15% 154,605 247 0.32%
Trust preferred debentures 75,422 1,289 3.45% 75,422 2,060 5.51%
Long-term debt 369,717 7,162 513,974 9,915
------------- ----------- 3.91% ------------- ----------- 3.89%
Total interest bearing
liabilities $ 3,879,784 $ 20,899 $ 28,675
----------- 1.09% $ 4,118,232 ----------- 1.40%
Demand deposits 918,483 769,744
Other liabilities 67,006 80,518
Stockholders' equity 539,789 517,426
------------- -------------
Total liabilities and
stockholders' equity $ 5,405,062 $5,485,920
------------- -------------
Net interest income (FTE) 101,826 104,388
----------- -----------
Interest rate spread 3.88% 3.92%
Net interest margin 4.12% 4.17%
Taxable equivalent adjustment 2,410 2,986
----------- -----------
Net interest income $ 99,416 $ 101,402
(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)
June 30, December 31,
(In thousands) 2011 2010
------------------------------------- ------------ ------------
Residential real estate mortgages $564,345 $548,394
Commercial 623,832 577,731
Commercial real estate mortgages 834,524 844,458
Real estate construction and
development 64,245 45,444
Agricultural and agricultural real
estate mortgages 108,496 112,738
Consumer 910,976 905,563
Home equity 558,099 575,678
------------ ------------
Total loans and leases $ 3,664,517 $ 3,610,006
============ ============
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: NBT Bancorp Inc.
CONTACT: Martin A. Dietrich, CEO
Michael J. Chewens, CFO
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
607-337-6119