NBT Bancorp Inc. Announces Year-to-Date Net Income of $43.0 Million, Up 12.5% From Last Year; Declares Cash Dividend
NORWICH, NY, Oct 25, 2010 (MARKETWIRE via COMTEX) --
NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today net income per diluted share for the nine months ended September 30, 2010 was $1.25 per share, as compared with $1.13 per share for the nine months ended September 30, 2009. Annualized return on average assets and return on average equity were 1.05% and 11.01%, respectively, for the nine months ended September 30, 2010, compared with 0.95% and 10.89%, respectively, for the nine months ended September 30, 2009. Net interest margin (on a fully taxable equivalent basis ("FTE")) was 4.17% for the nine months ended September 30, 2010, up 17 basis points ("bp") from 4.00% for the nine months ended September 30, 2009. Net income for the nine months ended September 30, 2010 was $43.0 million, up $4.8 million, or 12.5%, from the nine months ended September 30, 2009.
Net income per diluted share for the three months ended September 30, 2010 was $0.42, as compared with $0.40 per share for the three months ended September 30, 2009. Annualized return on average assets and return on average equity were 1.07% and 10.89%, respectively, for the three months ended September 30, 2010, compared with 0.99% and 11.01%, respectively, for the three months ended September 30, 2009. FTE net interest margin was 4.15% for the three months ended September 30, 2010, up 17 bp from 3.98% for the three months ended September 30, 2009. Net income for the three months ended September 30, 2010 was $14.6 million, up $1.0 million, or 7.3%, from $13.6 million for the third quarter last year.
"We remain pleased with our financial results in this challenging environment," said NBT President and CEO Martin Dietrich. "Our approach of aggressively managing our conservative banking strategy continues to produce positive results. Our financial performance is especially encouraging when compared to peer data, specifically net interest margin, return on average assets and return on average equity. Importantly, we have achieved these results while maintaining our focus on strategic investments for future growth, including expanding into new markets."
Loan and Lease Quality and Provision for Loan and Lease Losses
Past due loans as a percentage of total loans has improved to 0.78% at September 30, 2010, as compared with 0.89% at December 31, 2009. Nonperforming loans increased slightly to $43.6 million or 1.20% of total loans and leases at September 30, 2010 compared with $41.3 million or 1.13% at December 31, 2009.
Net charge-offs for the nine months ended September 30, 2010 were $17.8 million compared to $18.7 million for the same period in 2009. Net charge-offs for the three months ended September 30, 2010 were $6.0 million compared to $7.2 million for the same period in 2009. The annualized net charge-off ratio for the nine months ended September 30, 2010 was 0.65% compared to 0.70% for the year ended December 31, 2009.
The allowance for loan and lease losses totaled $71.9 million at September 30, 2010 as compared with $70.3 million at June 30, 2010. The allowance for loan and lease losses as a percentage of loans and leases was 1.98% at September 30, 2010 as compared to 1.93% at June 30, 2010. The increase in the allowance for loan and lease losses is due to a specific allocation made during the three month period ended September 30, 2010 of $1.6 million on one impaired commercial credit.
The Company recorded a provision for loan and lease losses of $23.1 million during the nine months ended September 30, 2010, as compared with $24.8 million during the nine months ended September 30, 2009. The Company recorded a provision for loan and lease losses of $7.5 million during the third quarter of 2010 compared with $9.1 million during the third quarter of 2009. While the aforementioned specific allocation which was recorded during the three month period ending September 30, 2010 contributed to an increase in provision for these periods, this was more than offset by the overall decrease in total provision. The decrease in total provision is due to ongoing modeling of the required levels of reserves which considers historical charge-offs, loan growth and economic trends.
Net Interest Income
Net interest income was up 5.0% to $152.0 million for the nine months ended September 30, 2010 compared with $144.8 million for the nine months ended September 30, 2009. The Company's FTE net interest margin was 4.17% for the nine months ended September 30, 2010, as compared with 4.00% for the nine months ended September 30, 2009. As a result of the Company's excess liquidity, our Federal Funds sold position had a net negative impact of approximately 5 bp on our net interest margin for the nine months ended September 30, 2010 as compared to the nine months ended September 30, 2009.
While the yield on interest earning assets decreased 36 bp, the yield on interest bearing liabilities declined 59 bp, which resulted in an increase in the FTE net interest margin for the nine months ended September 30, 2010 compared to the same period for 2009. The yield on securities available for sale was 3.74% for the nine months ended September 30, 2010, as compared with 4.61% for the nine months ended September 30, 2009. The yield on loans and leases was 5.92% for the nine months ended September 30, 2010, as compared with 6.07% for the nine months ended September 30, 2009. The yield on time deposits was 2.10% for the nine months ended September 30, 2010, as compared with 2.75% for the nine months ended September 30, 2009. The yield on money market deposit accounts was 0.62% for the nine months ended September 30, 2010, as compared with 1.32% for the nine months ended September 30, 2009.
Net interest income was up 4.0% to $50.6 million for the three months ended September 30, 2010 compared with $48.7 million for the three months ended September 30, 2009. The Company's FTE net interest margin was 4.15% for the three months ended September 30, 2010, as compared with 3.98% for the three months ended September 30, 2009. As a result of the Company's excess liquidity, our Federal Funds sold position had a net negative impact of approximately 4 bp on our net interest margin for the three months ended September 30, 2010 as compared to the three months ended September 30, 2009.
While the yield on interest earning assets decreased 31 bp, the yield on interest bearing liabilities declined 56 bp, which resulted in an increase in the net interest margin for the three months ended September 30, 2010 compared to the same period for 2009. The yield on securities available for sale was 3.49% for the three months ended September 30, 2010, as compared with 4.35% for the three months ended September 30, 2009. The yield on loans and leases was 5.85% for the three months ended September 30, 2010, as compared with 6.00% for the three months ended September 30, 2009. The yield on time deposits was 2.00% for the three months ended September 30, 2010, as compared with 2.57% for the three months ended September 30, 2009. The yield on money market deposit accounts was 0.53% for the three months ended September 30, 2010, as compared with 1.28% for the three months ended September 30, 2009.
Noninterest Income
Noninterest income for the nine months ended September 30, 2010 was $61.7 million, up $1.4 million or 2.3% from $60.3 million for the same period in 2009. The increase in noninterest income was due primarily to an increase in retirement plan administration fees of approximately $1.3 million for the nine month period ended September 30, 2010 as compared with the nine month period ended September 30, 2009 as a result of organic growth and increased asset values from improved market conditions. In addition, the Company experienced an increase in net securities gains of approximately $1.1 million for the nine months ended September 30, 2010 as compared to the same period in 2009 due primarily to the sale of one equity position during the third quarter of 2010. Trust revenue increased approximately $0.6 million for the nine months ended September 30, 2010 as compared to the same period in 2009 due primarily to an increase in fair value of trust assets under administration. Other financial services revenue increased approximately $0.6 million for the nine months ended September 30, 2010 as compared to the same period in 2009, due primarily to expansion into new markets within our footprint. These increases were partially offset by a decrease in service charges on deposit accounts of approximately $2.0 million as a result of a decrease in overdraft activity due to changes in consumer behavior caused by economic conditions as well as the effects of implementing new regulations regarding overdraft fees. In addition, other noninterest income decreased approximately $0.9 million, or 17.0%, for the nine months ended September 30, 2010 as compared with the same period in 2009 due primarily to a decrease in mortgage banking revenue as a result of a decrease in loan sales.
Noninterest income for the three months ended September 30, 2010 was $21.0 million, relatively flat compared with $20.9 million for the same period in 2009. Net securities gains increased approximately $1.0 million for the three months ended September 30, 2010 as compared to the same period in 2009. This increase was due primarily to the aforementioned equity sale. Slight increases in ATM and debit card fees, insurance and other financial services revenue, and retirement plan administration fees also contributed to the increase in noninterest income. These increases were offset by a decrease in service charges on deposit accounts of approximately $1.2 million, or 16.3%, for the three months ended September 30, 2010 as compared with the same period in 2009. The decrease in service charges was the result of a decrease in overdraft activity due to changes in consumer behavior caused by economic conditions as well as the effects of implementing new regulations regarding overdraft fees. In addition, other noninterest income decreased approximately $0.4 million, or 21.0%, for the three months ended September 30, 2010 as compared with the same period in 2009, due primarily to a decrease in mortgage banking revenue as a result of a decrease in loan sales.
Noninterest Expense and Income Tax Expense
Noninterest expense for the nine months ended September 30, 2010 was $131.0 million, up from $125.3 million, or 4.6%, for the same period in 2009. Salaries and employee benefits increased $7.9 million, or 12.6%, for the nine months ended September 30, 2010 compared with the same period in 2009. This increase was due primarily to increases in full-time-equivalent employees, merit increases, employee benefits, and incentive compensation. In addition, the Company incurred a debt prepayment penalty of $1.2 million to pay off long-term debt during the third quarter of 2010, while no prepayment penalties were incurred for the same period in 2009. These increases were partially offset by a decrease in FDIC expenses of approximately $2.4 million for the nine month period ended September 30, 2010, as compared with the nine months ended September 30, 2009. This decrease resulted from the special assessment levied by the FDIC in the second quarter of 2009. In addition, professional fees and outside services decreased by $1.3 million, or 16.3%, for the nine month period ended September 30, 2010 as compared with the nine months ended September 30, 2009. This decrease was due primarily to nonrecurring legal fees incurred during the second quarter of 2009 related to de novo branch activity as well as non-recurring systems consulting services incurred in the third quarter of 2009. Income tax expense for the nine month period ended September 30, 2010 was $16.5 million, down from $16.9 million for the same period in 2009. This decrease is primarily the result of an amendment to New York State tax law to conform to the bad debt treatment afforded under Federal law, which resulted in a reduction to tax expense of $0.6 million for the nine month period ended September 30, 2010. The effective tax rate was 27.8% for the nine months ended September 30, 2010, as compared to 30.7% for the same period in 2009.
Noninterest expense for the three months ended September 30, 2010 was $44.7 million, up from $41.0 million, or 8.9%, for the same period in 2009. Salaries and employee benefits increased $2.8 million, or 13.2%, for the three months ended September 30, 2010 compared with the same period in 2009. This increase was due primarily to increases in full-time-equivalent employees, merit increases and other employee benefits. In addition, the Company incurred a debt prepayment penalty of $1.2 million to pay off long-term debt during the third quarter of 2010, while no prepayment penalties were incurred for the same period in 2009. These increases were partially offset by a decrease in professional fees and outside services of approximately $0.6 million for the three month period ended September 30, 2010, as compared with the three months ended September 30, 2009. This decrease resulted primarily from non-recurring systems consulting services incurred in the third quarter of 2009. Income tax expense for the three month period ended September 30, 2010 was $4.8 million, down from $5.8 million for the same period in 2009. This decrease is primarily the result of an amendment to New York State tax law to conform to the bad debt treatment afforded under Federal law, which resulted in a reduction to tax expense of $0.6 million in the third quarter of 2010. The effective tax rate was 24.9% for the three months ended September 30, 2010, as compared to 30.0% for the same period in 2009.
Balance Sheet
Total assets were $5.5 billion at September 30, 2010, up $18.0 million or 0.3% from December 31, 2009. Loans and leases were $3.6 billion at September 30, 2010, down $24.0 million from December 31, 2009. Total deposits were $4.2 billion at September 30, 2010, up $109.6 million from December 31, 2009. Stockholders' equity was $534.3 million, representing a total equity-to-total assets ratio of 9.75% at September 30, 2010, compared with $505.1 million or a total equity-to-total assets ratio of 9.24% at December 31, 2009.
Stock Repurchase Program
Under previously disclosed stock repurchase plans, the Company purchased 23,810 shares of its common stock during the nine month period ended September 30, 2010, for a total of $0.5 million at an average price of $20.03 per share. At September 30, 2010, there were 976,190 shares available for repurchase under this previously announced stock repurchase plan. This plan was authorized on October 26, 2009 in the amount of 1,000,000 shares and expires on December 31, 2011.
Dividend Declared
The NBT Board of Directors declared a 2010 fourth-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on December 15, 2010 to shareholders of record as of December 1, 2010.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $5.5 billion at September 30, 2010. 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, 37 Pennstar Bank offices in northeastern Pennsylvania and one 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
2010 2009 Change Change
---------- ---------- -------- -------
(dollars in thousands,
except per share data)
Three Months Ended September 30,
Net Income $ 14,570 $ 13,578 $ 992 7%
Diluted Earnings Per Share $ 0.42 $ 0.40 $ 0.02 5%
Weighted Average Diluted
Common Shares Outstanding 34,512,724 34,342,125 170,599 0%
Return on Average Assets (1) 1.07% 0.99% 8 bp 8%
Return on Average Equity (1) 10.89% 11.01% (12 bp) -1%
Net Interest Margin (2) 4.15% 3.98% 17 bp 4%
========== ========== ======== =======
Nine Months Ended September 30,
Net Income $ 42,970 $ 38,210 $ 4,760 12%
Diluted Earnings Per Share $ 1.25 $ 1.13 $ 0.12 11%
Weighted Average Diluted
Common Shares Outstanding 34,482,097 33,780,769 701,328 2%
Return on Average Assets 1.05% 0.95% 10 bp 11%
Return on Average Equity 11.01% 10.89% 12 bp 1%
Net Interest Margin (2) 4.17% 4.00% 17 bp 4%
========== ========== ======== =======
Asset Quality September 30, December 31,
2010 2009
---------- ----------
Nonaccrual Loans $ 41,248 $ 38,746
90 Days Past Due and Still
Accruing $ 2,349 $ 2,526
Total Nonperforming Loans $ 43,597 $ 41,272
Other Real Estate Owned $ 1,143 $ 2,358
Total Nonperforming Assets $ 44,740 $ 43,630
Past Due Loans $ 28,200 $ 32,349
Potential Problem Loans $ 84,043 $ 79,072
Allowance for Loan and Lease
Losses $ 71,875 $ 66,550
Allowance for Loan and Lease
Losses to Total Loans and
Leases 1.98% 1.83%
Total Nonperforming Loans to
Total Loans and Leases 1.20% 1.13%
Total Nonperforming Assets to
Total Assets 0.82% 0.80%
Past Due Loans to Total Loans
and Leases 0.78% 0.89%
Allowance for Loan and Lease
Losses to Total Nonperforming
Loans 164.86% 161.25%
Net Charge-Offs to YTD Average
Loans and Leases 0.65% 0.70%
========== ==========
Capital
Equity to Assets 9.75% 9.24%
Book Value Per Share $ 15.50 $ 14.69
Tangible Book Value Per Share $ 11.64 $ 10.75
Tier 1 Leverage Ratio 9.06% 8.35%
Tier 1 Capital Ratio 12.19% 11.34%
Total Risk-Based Capital Ratio 13.44% 12.59%
========== ==========
------------- -------------
Quarterly Common Stock Price 2010 2009
Quarter End High Low High Low
------ ------ ------ ------
March 31 $23.99 $19.15 $28.37 $15.42
June 30 $25.96 $20.33 25.22 20.49
September 30 $23.06 $19.27 24.16 20.57
December 31 23.59 19.43
------------- -------------
(1) Annualized
(2) Calculated on a FTE basis
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
September 30, December 31, Net Percent
2010 2009 Change Change
------------- ------------- --------- -------
(dollars in thousands,
except per share data)
Balance Sheet
Loans and Leases $ 3,621,367 $ 3,645,398 $ (24,031) -1%
Earning Assets $ 5,023,366 $ 5,009,251 $ 14,115 0%
Total Assets $ 5,481,992 $ 5,464,026 $ 17,966 0%
Deposits $ 4,202,621 $ 4,093,046 $ 109,575 3%
Stockholders' Equity $ 534,251 $ 505,123 $ 29,128 6%
============= ============= ========= =======
2010 2009
------------- -------------
(dollars in thousands,
Average Balances except per share data)
Three Months Ended
September 30,
Loans and Leases $ 3,631,637 $ 3,627,803 $ 3,834
Securities Available
For Sale (excluding
unrealized gains or
losses) $ 1,052,985 $ 1,082,655 $ (29,670)
Securities Held To
Maturity $ 111,140 $ 161,915 $ (50,775)
Trading Securities $ 2,513 $ 2,109 $ 404
Regulatory Equity
Investment $ 30,638 $ 37,372 $ (6,734)
Short-Term Interest
Bearing Accounts $ 132,734 $ 99,501 $ 33,233
Total Earning Assets $ 4,959,134 $ 5,009,246 $ (50,112)
Total Assets $ 5,396,676 $ 5,415,374 $ (18,698)
Interest Bearing Deposits $ 3,281,560 $ 3,316,011 $ (34,451)
Non-Interest Bearing
Deposits $ 827,358 $ 737,064 $ 90,294
Short-Term Borrowings $ 159,480 $ 132,459 $ 27,021
Long-Term Borrowings $ 520,103 $ 660,838 $(140,735)
Total Interest Bearing
Liabilities $ 3,961,143 $ 4,109,308 $(148,165)
Stockholders' Equity $ 530,585 $ 489,140 $ 41,445
============= ============= =========
Average Balances
Nine Months Ended
September 30,
Loans and Leases $ 3,637,532 $ 3,646,437 $ (8,905)
Securities Available For
Sale (excluding
Unrealized gains or
losses) $ 1,085,171 $ 1,085,746 $ (575)
Securities Held To
Maturity $ 138,339 $ 146,350 $ (8,011)
Trading Securities $ 2,515 $ 1,801 $ 714
Regulatory Equity
Investment $ 32,840 $ 38,143 $ (5,303)
Short-Term Interest
Bearing Accounts $ 121,211 $ 76,523 $ 44,688
Total Earning Assets $ 5,015,093 $ 4,993,199 $ 21,894
Total Assets $ 5,455,845 $ 5,405,331 $ 50,514
Interest Bearing Deposits $ 3,343,001 $ 3,336,644 $ 6,357
Non-Interest Bearing
Deposits $ 789,160 $ 708,513 $ 80,647
Short-Term Borrowings $ 156,248 $ 133,668 $ 22,580
Long-Term Borrowings $ 566,044 $ 683,830 $(117,786)
Total Interest Bearing
Liabilities $ 4,065,293 $ 4,154,142 $ (88,849)
Stockholders' Equity $ 521,861 $ 469,236 $ 52,625
============= ============= =========
NBT Bancorp Inc. and Subsidiaries September 30, December 31,
Consolidated Balance Sheets (unaudited) 2010 2009
------------- -------------
(in thousands)
ASSETS
Cash and due from banks $ 119,519 $ 107,980
Short term interest bearing accounts 221,214 79,181
Securities available for sale, at fair value 1,080,165 1,116,758
Securities held to maturity (fair value of
$105,130 and $161,851 at September 30, 2010
and December 31, 2009, respectively) 103,173 159,946
Trading securities 2,550 2,410
Federal Reserve and Federal Home Loan Bank stock 29,928 35,979
Loans and leases 3,621,367 3,645,398
Less allowance for loan and lease losses 71,875 66,550
============= =============
Net loans and leases 3,549,492 3,578,848
Premises and equipment, net 66,602 66,221
Goodwill 114,842 114,938
Intangible assets, net 18,288 20,590
Bank owned life insurance 74,428 74,751
Other assets 101,791 106,424
------------- -------------
TOTAL ASSETS $ 5,481,992 $ 5,464,026
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $ 825,022 $ 789,989
Savings, NOW, and money market 2,409,661 2,269,779
Time 967,938 1,033,278
------------- -------------
Total deposits 4,202,621 4,093,046
Short-term borrowings 166,464 155,977
Long-term debt 429,468 554,698
Trust preferred debentures 75,422 75,422
Other liabilities 73,766 79,760
------------- -------------
Total liabilities 4,947,741 4,958,903
Total stockholders' equity 534,251 505,123
============= =============
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,481,992 $ 5,464,026
============= =============
NBT Bancorp Inc. and Subsidiaries Three months ended Nine months ended
Consolidated Statements of Income September 30, September 30,
(unaudited) 2010 2009 2010 2009
--------- --------- --------- ---------
(in thousands, except per share
data)
Interest, fee and dividend income:
Loans and leases $ 53,301 $ 54,666 $ 160,496 $ 164,963
Securities available for sale 8,621 11,116 28,223 35,162
Securities held to maturity 908 1,239 3,123 3,682
Other 482 615 1,547 1,582
--------- --------- --------- ---------
Total interest, fee and dividend
income 63,312 67,636 193,389 205,389
--------- --------- --------- ---------
Interest expense:
Deposits 7,174 12,002 23,627 38,964
Short-term borrowings 91 142 338 413
Long-term debt 4,374 5,761 14,289 17,956
Trust preferred debentures 1,046 1,049 3,106 3,211
--------- --------- --------- ---------
Total interest expense 12,685 18,954 41,360 60,544
--------- --------- --------- ---------
Net interest income 50,627 48,682 152,029 144,845
Provision for loan and lease losses 7,529 9,101 23,122 24,751
--------- --------- --------- ---------
Net interest income after provision
for loan and lease losses 43,098 39,581 128,907 120,094
--------- --------- --------- ---------
Noninterest income:
Trust 1,786 1,668 5,461 4,838
Service charges on deposit accounts 5,953 7,110 18,384 20,357
ATM and debit card fees 2,660 2,443 7,489 6,993
Insurance and other financial
services revenue 4,595 4,368 14,540 13,926
Net securities gains 1,120 129 1,211 146
Bank owned life insurance income 655 683 2,444 2,225
Retirement plan administration fees 2,612 2,412 7,597 6,347
Other 1,610 2,037 4,526 5,453
--------- --------- --------- ---------
Total noninterest income 20,991 20,850 61,652 60,285
--------- --------- --------- ---------
Noninterest expense:
Salaries and employee benefits 24,090 21,272 70,518 62,646
Office supplies and postage 1,542 1,426 4,538 4,385
Occupancy 3,709 3,481 11,527 11,256
Equipment 2,053 1,997 6,194 6,024
Professional fees and outside
services 2,068 2,691 6,543 7,820
Data processing and communications 2,971 3,305 9,454 9,924
Amortization of intangible assets 767 827 2,328 2,465
Loan collection and other real
estate owned 548 755 2,275 2,177
FDIC expenses 1,621 1,535 4,734 7,096
Prepayment penalty on long-term
debt 1,205 - 1,205 -
Other operating 4,110 3,743 11,725 11,483
--------- --------- --------- ---------
Total noninterest expense 44,684 41,032 131,041 125,276
--------- --------- --------- ---------
Income before income taxes 19,405 19,399 59,518 55,103
Income taxes 4,835 5,821 16,548 16,893
--------- --------- --------- ---------
Net income $ 14,570 $ 13,578 $ 42,970 $ 38,210
--------- --------- --------- ---------
Earnings Per Share:
Basic $ 0.42 $ 0.40 $ 1.25 $ 1.14
Diluted $ 0.42 $ 0.40 $ 1.25 $ 1.13
========= ========= ========= =========
NBT Bancorp Inc. and
Subsidiaries
Quarterly Consolidated
Statements of Income 3Q 2Q 1Q 4Q 3Q
(unaudited) 2010 2010 2010 2009 2009
-------- -------- -------- -------- --------
(in thousands, except per
share data)
Interest, fee and dividend
income:
Loans and leases $ 53,301 $ 53,503 $ 53,692 $ 55,361 $ 54,666
Securities available for
sale 8,621 9,556 10,046 10,810 11,116
Securities held to
maturity 908 1,078 1,137 1,212 1,239
Other 482 469 596 621 615
-------- -------- -------- -------- --------
Total interest, fee and
dividend income 63,312 64,606 65,471 68,004 67,636
-------- -------- -------- -------- --------
Interest expense:
Deposits 7,174 7,999 8,454 9,532 12,002
Short-term borrowings 91 123 124 139 142
Long-term debt 4,374 4,850 5,065 5,673 5,761
Trust preferred debentures 1,046 1,033 1,027 1,036 1,049
-------- -------- -------- -------- --------
Total interest expense 12,685 14,005 14,670 16,380 18,954
-------- -------- -------- -------- --------
Net interest income 50,627 50,601 50,801 51,624 48,682
Provision for loan and
lease losses 7,529 6,350 9,243 8,641 9,101
-------- -------- -------- -------- --------
Net interest income after
provision for loan and
lease losses 43,098 44,251 41,558 42,983 39,581
-------- -------- -------- -------- --------
Noninterest income:
Trust 1,786 1,909 1,766 1,881 1,668
Service charges on deposit
accounts 5,953 6,301 6,130 6,808 7,110
ATM and debit card fees 2,660 2,462 2,367 2,346 2,443
Insurance and other
financial services
revenue 4,595 4,700 5,245 3,799 4,368
Net securities
gains/(losses) 1,120 63 28 (2) 129
Bank owned life insurance
income 655 808 981 910 683
Retirement plan
administration fees 2,612 2,595 2,390 2,739 2,412
Other 1,610 1,482 1,434 1,365 2,037
-------- -------- -------- -------- --------
Total noninterest income 20,991 20,320 20,341 19,846 20,850
-------- -------- -------- -------- --------
Noninterest expense:
Salaries and employee
benefits 24,090 24,224 22,204 22,919 21,272
Office supplies and
postage 1,542 1,454 1,542 1,472 1,426
Occupancy 3,709 3,666 4,152 3,608 3,481
Equipment 2,053 2,041 2,100 2,115 1,997
Professional fees and
outside services 2,068 2,191 2,284 2,688 2,691
Data processing and
communications 2,971 3,265 3,218 3,314 3,305
Amortization of intangible
assets 767 780 781 781 827
Loan collection and other
real estate owned 548 668 1,059 589 755
FDIC expenses 1,621 1,560 1,553 1,312 1,535
Prepayment penalty on
long-term debt 1,205 - - - -
Other operating 4,110 4,348 3,267 6,492 3,743
-------- -------- -------- -------- --------
Total noninterest expense 44,684 44,197 42,160 45,290 41,032
-------- -------- -------- -------- --------
Income before income taxes 19,405 20,374 19,739 17,539 19,399
Income taxes 4,835 5,950 5,763 3,738 5,821
-------- -------- -------- -------- --------
Net income $ 14,570 $ 14,424 $ 13,976 $ 13,801 $ 13,578
======== ======== ======== ======== ========
Earnings per share:
Basic $ 0.42 $ 0.42 $ 0.41 $ 0.40 $ 0.40
Diluted $ 0.42 $ 0.42 $ 0.41 $ 0.40 $ 0.40
======== ======== ======== ======== ========
Three months ended September 30,
2010 2009
(dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rates Balance Interest Rates
---------- -------- ----- ---------- -------- -----
ASSETS
Short-term interest
bearing accounts $ 132,734 $ 77 0.23% $ 99,501 $ 74 0.30%
Securities available
for sale (1)
(excluding unrealized
gains or losses) 1,052,985 9,258 3.49% 1,082,655 11,859 4.35%
Securities held to
maturity (1) 111,140 1,364 4.87% 161,915 1,871 4.58%
Investment in FRB and
FHLB Banks 30,638 405 5.23% 37,372 541 5.74%
Loans and leases (2) 3,631,637 53,506 5.85% 3,627,803 54,857 6.00%
---------- -------- ---------- --------
Total interest
earning assets $4,959,134 $ 64,610 5.17% $5,009,246 $ 69,202 5.48%
-------- --------
Other assets 437,542 406,128
---------- ----------
Total assets $5,396,676 $5,415,374
---------- ----------
LIABILITIES AND
STOCKHOLDERS' EQUITY
Money market deposit
accounts $1,078,771 1,445 0.53% $1,025,345 $ 3,317 1.28%
NOW deposit accounts 665,893 616 0.37% 582,307 694 0.47%
Savings deposits 564,847 217 0.15% 509,258 217 0.17%
Time deposits 972,049 4,896 2.00% 1,199,101 7,774 2.57%
---------- -------- ---------- --------
Total interest
bearing deposits $3,281,560 $ 7,174 0.87% $3,316,011 $ 12,002 1.44%
Short-term borrowings 159,480 91 0.23% 132,459 142 0.43%
Trust preferred
debentures 75,422 1,046 5.50% 75,422 1,049 5.52%
Long-term debt 444,681 4,374 3.90% 585,416 5,761 3.90%
---------- -------- ---------- --------
Total interest
bearing
liabilities $3,961,143 $ 12,685 1.27% $4,109,308 $ 18,954 1.83%
-------- --------
Demand deposits 827,358 737,064
Other liabilities 77,590 79,862
Stockholders' equity 530,585 489,140
---------- ----------
Total liabilities and
stockholders' equity $5,396,676 $5,415,374
---------- ----------
Net interest
income (FTE) 51,925 50,248
-------- --------
Interest rate spread 3.90% 3.64%
Net interest margin 4.15% 3.98%
Taxable equivalent
adjustment 1,298 1,566
-------- --------
Net interest income $ 50,627 $ 48,682
(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,
2010 2009
(dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rates Balance Interest Rates
---------- -------- ----- ---------- -------- -----
ASSETS
Short-term interest
bearing accounts $ 121,211 $ 219 0.24% $ 76,523 $ 150 0.26%
Securities available
for sale (1)
(excluding unrealized
gains or losses) 1,085,171 30,326 3.74% 1,085,746 37,399 4.61%
Securities held to
maturity (1) 138,339 4,702 4.54% 146,350 5,553 5.07%
Investment in FRB and
FHLB Banks 32,840 1,329 5.40% 38,143 1,432 5.02%
Loans and leases (2) 3,637,532 161,097 5.92% 3,646,437 165,578 6.07%
---------- -------- ---------- --------
Total interest
earning assets $5,015,093 $197,673 5.27% $4,993,199 $210,112 5.63%
-------- --------
Other assets 440,752 412,132
---------- ----------
Total assets $5,455,845 $5,405,331
---------- ----------
LIABILITIES AND
STOCKHOLDERS' EQUITY
Money market deposit
accounts $1,100,904 5,085 0.62% $ 995,233 $ 9,806 1.32%
NOW deposit accounts 692,178 2,207 0.43% 571,478 2,328 0.54%
Savings deposits 551,662 623 0.15% 497,040 631 0.17%
Time deposits 998,257 15,712 2.10% 1,272,893 26,199 2.75%
---------- -------- ---------- --------
Total interest
bearing deposits $3,343,001 $ 23,627 0.94% $3,336,644 $ 38,964 1.56%
Short-term borrowings 156,248 338 0.29% 133,668 413 0.41%
Trust preferred
debentures 75,422 3,106 5.51% 75,422 3,211 5.69%
Long-term debt 490,622 14,289 3.89% 608,408 17,956 3.95%
---------- -------- ---------- --------
Total interest
bearing
liabilities $4,065,293 $ 41,360 1.36% $4,154,142 $ 60,544 1.95%
-------- --------
Demand deposits 789,160 708,513
Other liabilities 79,531 73,440
Stockholders' equity 521,861 469,236
---------- ----------
Total liabilities and
stockholders' equity $5,455,845 $5,405,331
---------- ----------
Net interest income
(FTE) 156,313 149,568
-------- --------
Interest rate spread 3.91% 3.68%
Net interest margin 4.17% 4.00%
Taxable equivalent
adjustment 4,284 4,723
-------- --------
Net interest income $152,029 $144,845
(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) 2010 2009
------------- -------------
Residential real estate mortgages $ 558,875 $ 622,898
Commercial 597,809 581,870
Commercial real estate mortgages 815,349 718,235
Real estate construction and development 50,979 76,721
Agricultural and agricultural real estate
mortgages 114,673 122,466
Consumer 860,405 856,956
Home equity 586,873 603,585
Lease financing 36,404 62,667
------------- -------------
Total loans and leases $ 3,621,367 $ 3,645,398
============= =============
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.