Printer Friendly Version View printer-friendly version | E-mail Alerts Receive E-mail Alerts

NBT Bancorp Inc. Announces Year-to-Date Net Income of $44.2 Million, Up 2.8% From Last Year; Declares Cash Dividend; Closes Previously Announced Massachusetts Branch Deal

10/24/11

NORWICH, N.Y., Oct 24, 2011 (GlobeNewswire via COMTEX) --

NBT Bancorp Inc. (NBT) (Nasdaq:NBTB) reported today net income for the nine months ended September 30, 2011 was $44.2 million, up $1.2 million, or 2.8%, from the nine months ended September 30, 2010. Net income per diluted share for the nine months ended September 30, 2011 was $1.29 per share, up from $1.25 per diluted share for the nine months ended September 30, 2010. Annualized return on average assets and return on average equity were 1.09% and 10.95%, respectively, for the nine months ended September 30, 2011, compared with 1.05% and 11.01%, respectively, for the nine months ended September 30, 2010. Net interest margin (on a fully taxable equivalent basis ("FTE")) was 4.13% for the nine months ended September 30, 2011, down 4 basis points ("bps") from 4.17% for the nine months ended September 30, 2010.

Net income for the three months ended September 30, 2011 was $15.2 million, up $0.6 million, or 4.4%, from the three months ended September 30, 2010. Net income per diluted share for the three months ended September 30, 2011 was $0.45 per share, up from $0.42 per diluted share for the three months ended September 30, 2010. Annualized return on average assets and return on average equity were 1.12% and 11.21%, respectively, for the three months ended September 30, 2011, compared with 1.07% and 10.89%, respectively, for the three months ended September 30, 2010. Net interest margin (FTE) was 4.14% for the three months ended September 30, 2011, down slightly from 4.15% for the three months ended September 30, 2010.

Key items for 2011 include:

  --  Diluted earnings per share of $1.29 for the first nine months of 2011
      was the second highest in the Company's history; second to $1.34 for the
      same period in 2008.
  --  Net interest margin was 4.13% for the first nine months of 2011, down
      from 4.17% for the same period of 2010, a result of the continued low
      rate environment on loans and investments.
  --  Net charge-offs were 0.55% of average loans and leases for the first
      nine months of 2011, down 10 bps from the first nine months of 2010;
      provision for loan and lease losses was down $7.9 million for the same
      period.
  --  Continued strategic expansion with the successful acquisition and
      conversion of four branches in Berkshire County, Massachusetts on
      October 21, 2011.

"Through our ongoing focus on our customers and our people, we have again delivered a strong performance with near-record earnings for the first three quarters of the year," said NBT President and CEO Marty Dietrich. "We also continue to seek out opportunities for strategic investments to secure our future success, including enhancements to our branch banking network. In the past four weeks, we have opened a total of seven new NBT Bank locations, including our Utica Financial Center and new branch offices in Binghamton, N.Y. and Essex, Vt. Today marks our first day of business in the state of Massachusetts with the successful acquisition and conversion of four new locations in Berkshire County. We're pleased to expand delivery of our unique brand of community banking in and to these markets and are confident the efforts of our banking professionals will be well received."

Loan and Lease Quality and Provision for Loan and Lease Losses

The provision for loan and lease losses was $15.2 million for the first nine months of 2011, down $7.9 million from the $23.1 million recorded in the first nine months of 2010. Net charge-offs were $15.1 million for the first nine months of 2011 representing 0.55% (annualized) of average loans and leases for the period versus $17.8 million, or 0.65% (annualized) of average loans and leases for the first nine months of 2010.

The provision for loan and lease losses was $5.2 million for the third quarter of 2011, down from $7.5 million recorded in the third quarter of 2010. Net charge-offs were $4.3 million for the third quarter of 2011 representing 0.47% (annualized) of average loans and leases for the quarter versus $6.0 million, or 0.65% (annualized) of average loans and leases for the third quarter of 2010. While there has been general improvement in asset quality indicators, the current quarter provision includes additional provisions as a result of the September flooding in the Company's geographic footprint.

Nonperforming loans were $44.3 million at September 30, 2011, down slightly from $44.8 million at December 31, 2010. Past due loans were down to 0.68% of total loans at September 30, 2011 from 0.86% at December 31, 2010. The allowance for loan and lease losses was $71.3 million at September 30, 2011, relatively flat compared to $71.2 million at December 31, 2010. The allowance for loan and lease losses represented 1.92% of loans and leases at September 30, 2011, compared to 1.97% at December 31, 2010.

Net Interest Income

Net interest income was $149.8 million for the nine months ended September 30, 2011, down 1.5% compared with $152.0 million for the nine months ended September 30, 2010. The Company's FTE net interest margin was 4.13% for the nine months ended September 30, 2011, down from 4.17% for the nine months ended September 30, 2010.

While the yield on interest bearing liabilities decreased 31 bps, the yield on interest earning assets declined 33 bps, resulting in slight margin compression for the nine months ended September 30, 2011, compared to the same period for 2010. The yield on securities available for sale was 3.06% for the nine months ended September 30, 2011, as compared with 3.74% for the nine months ended September 30, 2010. The yield on loans and leases was 5.63% for the nine months ended September 30, 2011, as compared with 5.92% for the nine months ended September 30, 2010. The yield on time deposits was 1.83% for the nine months ended September 30, 2011, as compared with 2.10% for the nine months ended September 30, 2010. The yield on money market deposit accounts was 0.37% for the nine months ended September 30, 2011, as compared with 0.62% for the nine months ended September 30, 2010.

Net interest income was $50.4 million for the three months ended September 30, 2011, down 0.5% compared with $50.6 million for the three months ended September 30, 2010. The Company's FTE net interest margin was 4.14% for the three months ended September 30, 2011, down slightly from 4.15% for the three months ended September 30, 2010.

While the yield on interest bearing liabilities decreased 28 bps, the yield on interest earning assets declined 27 bps, resulting in a fairly stable margin for the three months ended September 30, 2011 as compared with the three months ended September 30, 2010. The yield on securities available for sale was 2.95% for the three months ended September 30, 2011, as compared with 3.49% for the three months ended September 30, 2010. The yield on loans and leases was 5.51% for the three months ended September 30, 2011, as compared with 5.85% for the three months ended September 30, 2010. The yield on time deposits was 1.75% for the three months ended September 30, 2011, as compared with 2.00% for the three months ended September 30, 2010. The yield on money market deposit accounts was 0.31% for the three months ended September 30, 2011, as compared with 0.53% for the three months ended September 30, 2010.

Noninterest Income

Noninterest income for the nine months ended September 30, 2011 was $60.2 million, down slightly from $61.7 million for the same period in 2010. Insurance and other financial services revenue increased approximately $1.4 million for the nine months ended September 30, 2011, as compared to the nine months ended September 30, 2010, due primarily to the acquisition of an insurance agency during the second quarter of 2011 and an increase in brokerage commission revenue due to new business. ATM and debit card fees increased approximately $1.2 million for the nine months ended September 30, 2011, as compared to the nine months ended September 30, 2010 due to an increase in card usage as well as a change in the fee structure on foreign ATM transactions. Trust revenue increased approximately $0.9 million for the nine months ended September 30, 2011, as compared to the nine months ended September 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. These increases were offset by a decrease in service charges on deposit accounts of approximately $2.3 million, or 12.6%, for the nine months ended September 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, as well as the current state of the economy. In addition, retirement plan administration fees decreased by $0.9 million, or 11.4%, for the nine months ended September 30, 2011 as compared to the same period in 2010, driven by the loss of one client in the fourth quarter of 2010. This decrease was partially offset by increases from new business and market-based fees during 2011. Net securities gains decreased by $1.1 million for the nine months ended September 30, 2011 as compared to the same period in 2010 due to gains on certain securities sales in 2010.

Noninterest income for the three months ended September 30, 2011 was $20.2 million, down slightly from $21.0 million for the same period in 2010. Insurance and other financial services revenue increased approximately $0.5 million for the three months ended September 30, 2011, as compared to the three months ended September 30, 2010, due primarily to the aforementioned acquisition of an insurance agency during the second quarter of 2011. ATM and debit card fees also increased approximately $0.5 million for the three months ended September 30, 2011, as compared to the three months ended September 30, 2010 due to an increase in card usage as well as a change in the fee structure on foreign ATM transactions. Trust revenue increased approximately $0.3 million for the three months ended September 30, 2011, as compared to the three months ended September 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. These increases were offset by a decrease in service charges on deposit accounts of approximately $0.4 million, or 7.1%, for the three months ended September 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 current state of the economy. In addition, retirement plan administration fees decreased by $0.3 million, or 12.1%, for the three months ended September 30, 2011 as compared to the same period in 2010, driven by the loss of one client in the fourth quarter of 2010. This decrease was partially offset by increases from new business and market-based fees during 2011. Net securities gains decreased by $1.1 million for the three months ended September 30, 2011 as compared to the same period in 2010 due to gains on certain securities sales during the third quarter of 2010.

Noninterest Expense and Income Tax Expense

Noninterest expense for the nine months ended September 30, 2011 was $133.3 million, up from $131.0 million, or 1.7%, for the same period in 2010. Salaries and employee benefits increased $3.6 million, or 5.1%, for the nine months ended September 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 $0.9 million for the nine months ended September 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 increased approximately $0.9 million for the nine months ended September 30, 2011, as compared to the same period in 2010, primarily as a result of flood and merger related expenses during the third quarter of 2011. These increases were partially offset by a decrease in Federal Deposit Insurance Corporation (FDIC) premium expenses of approximately $1.4 million for the first nine months of 2011 as compared to the same period in 2010 due to the FDIC redefining the deposit insurance assessment base. 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 2011. Data processing and communications expenses decreased approximately $0.4 million for the nine months ended September 30, 2011, as compared to the nine months ended September 30, 2010. This decrease was due to the renegotiation of a data processing contract resulting in a decrease in processing fees. In addition, loan collection and other real estate owned expenses decreased approximately $0.4 million for the nine months ended September 30, 2011, as compared to the nine months ended September 30, 2010, due primarily to a reduction in properties classified as other real estate owned resulting in a reduction in maintenance expenses on those properties. Income tax expense for the nine month period ended September 30, 2011 was $17.4 million, up from $16.5 million for the same period in 2010. The effective tax rate was 28.2% for the nine months ended September 30, 2011, as compared to 27.8% for the same period in 2010.

Noninterest expense for the three months ended September 30, 2011 was $45.0 million, up slightly from $44.7 million, or 0.8%, for the same period in 2010. Salaries and employee benefits increased $1.0 million, or 4.1%, for the three months ended September 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. Other operating expenses increased approximately $0.6 million for the three months ended September 30, 2011, as compared to the same period in 2010, primarily as a result of flood and merger related expenses during the third quarter of 2011. These increases were offset by a decrease in FDIC premium expenses of approximately $0.7 million for the three months ended September 30, 2011 as compared to the same period in 2010, due to the aforementioned redefined deposit insurance assessment base. 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 2011. Income tax expense for the three month period ended September 30, 2011 was $5.1 million, up from $4.8 million for the same period in 2010. The effective tax rate was 25.2% for the three months ended September 30, 2011, as compared to 24.9% for the same period in 2010. During the three months ended September 30, 2011, a reduction in the Company's tax provision was driven by a reduction of tax reserves of $0.8 million, no longer required due to the expiration of the related statute of limitations.

Balance Sheet

Total assets were $5.5 billion at September 30, 2011 and $5.3 billion at December 31, 2010. Loans and leases were $3.7 billion at September 30, 2011, up $98.1 million from December 31, 2010. Total deposits were $4.3 billion at September 30, 2011, up $130.7 million from December 31, 2010. Stockholders' equity was $538.8 million, representing a total equity-to-total assets ratio of 9.84% at September 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 previously disclosed stock repurchase plans, the Company purchased 1,458,609 shares of its common stock during the nine month period ended September 30, 2011, for a total of $30.5 million at an average price of $20.91 per share. On July 25, 2011, the NBT Board of Directors authorized a new repurchase program for NBT to repurchase up to 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. At September 30, 2011, there were 517,581 shares available for repurchase under this plan, which expires on December 31, 2013. On October 24, 2011, 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 October 24, 2011, as market conditions warrant in open market and privately negotiated transactions. This plan expires on December 31, 2013.

Dividend Declared

The NBT Board of Directors declared a 2011 fourth-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on December 15, 2011 to shareholders of record as of December 1, 2011.

Branch Acquisition

On October 21, 2011, NBT Bank, N.A. ("NBT Bank"), the wholly owned national bank subsidiary of NBT Bancorp Inc., acquired from Berkshire Hills Bancorp, Inc. ("Berkshire Hills") approximately $147 million of deposits, $46 million in loans and four Berkshire County, Massachusetts bank branches located in the towns of Great Barrington, Lee, Pittsfield, and North Adams.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $5.5 billion at September 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. As of the date of this release, NBT Bank, N.A. has 129 locations, including 86 NBT Bank offices in upstate New York, four NBT Bank offices in Berkshire County, Massachusetts, three 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)
                                                                       Percent
                                                               Net
                                      2011         2010      Change     Change
                                  ------------  ----------  ---------  -------
                                   (dollars in thousands,
                                   except per share data)
  Three Months Ended September
   30,
  Net Income                           $15,217     $14,570       $647       4%
  Diluted Earnings Per Share             $0.45       $0.42      $0.03       7%
  Weighted Average Diluted
   Common Shares Outstanding        33,567,564  34,512,724  (945,160)      -3%
  Return on Average Assets (1)           1.12%       1.07%       5 bp       5%
  Return on Average Equity (1)          11.21%      10.89%      32 bp       3%
  Net Interest Margin (2)                4.14%       4.15%      -1 bp       0%
  ------------------------------  ------------  ----------  ---------  -------
  Nine Months Ended September
   30,
  Net Income                           $44,179     $42,970     $1,209       3%
  Diluted Earnings Per Share             $1.29       $1.25      $0.04       3%
  Weighted Average Diluted
   Common Shares Outstanding        34,159,833  34,482,097  (322,264)      -1%
  Return on Average Assets               1.09%       1.05%       4 bp       4%
  Return on Average Equity              10.95%      11.01%      -6 bp      -1%
  Net Interest Margin (2)                4.13%       4.17%      -4 bp      -1%
  ------------------------------  ------------  ----------  ---------  -------

                                   September     December
                                       30,         31,
  Asset Quality                       2011         2010
                                  ------------  ----------
  Nonaccrual Loans                     $39,752     $42,467
  90 Days Past Due and Still
   Accruing                             $4,525      $2,325
  Total Nonperforming Loans            $44,277     $44,792
  Other Real Estate Owned                 $650        $901
  Total Nonperforming Assets           $44,927     $45,693
  Past Due Loans                       $25,046     $31,004
  Potential Problem Loans              $96,688     $82,247
  Allowance for Loan and Lease
   Losses                              $71,334     $71,234
  Year-to-Date (YTD) Net
   Charge-Offs                         $15,061     $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                1.19%       1.24%
  Total Nonperforming Assets to
   Total Assets                          0.82%       0.86%
  Past Due Loans to Total Loans
   and Leases                            0.68%       0.86%
  Allowance for Loan and Lease
   Losses to Total Nonperforming
   Loans                               161.11%     159.03%
  Net Charge-Offs to YTD Average
   Loans and Leases                      0.55%       0.69%
  ------------------------------  ------------  ----------  ---------  -------
  Capital
  Equity to Assets                       9.84%       9.99%
  Book Value Per Share                  $16.28      $15.51
  Tangible Book Value Per Share         $12.24      $11.67
  Tier 1 Leverage Ratio                  9.21%       9.16%
  Tier 1 Capital Ratio                  12.00%      12.44%
  Total Risk-Based Capital Ratio        13.25%      13.70%
  ------------------------------  ------------  ----------  ---------  -------

  Quarterly Common Stock Price              2011                   2010
  ------------------------------  ------------------------  ------------------
  Quarter End                         High         Low         High      Low
                                  ------------  ----------  ---------  -------
  March 31                              $24.98      $21.55     $23.99   $19.15
  June 30                               $23.32      $20.62     $25.96   $20.21
  September 30                          $23.25      $17.05     $23.06   $19.27
  December 31                                                  $24.96   $21.41
  ------------------------------  ------------  ----------  ---------  -------
  (1) Annualized
  (2) Calculated on a FTE basis
                                 NBT Bancorp Inc. and
                                     Subsidiaries
                                  SELECTED FINANCIAL
                                      HIGHLIGHTS
                                      (unaudited)

                                September     December               Percent
                                    30,         31,         Net
                                   2011         2010       Change     Change
                               ------------  ----------  ----------  -------
                                (dollars in thousands,
                                except per share data)
  Balance Sheet
  Loans and Leases               $3,708,090  $3,610,006     $98,084       3%
  Earning Assets                 $5,015,891  $4,914,972    $100,919       2%
  Total Assets                   $5,478,451  $5,338,856    $139,595       3%
  Deposits                       $4,265,064  $4,134,352    $130,712       3%
  Stockholders' Equity             $538,848    $533,572      $5,276       1%
  ---------------------------  ------------  ----------  ----------  -------

                                   2011         2010
                               ------------  ----------
                                (dollars in thousands,
  Average Balances              except per share data)
  Three Months Ended
   September 30,
  Loans and Leases               $3,686,693  $3,631,637     $55,056
  Securities Available For
   Sale
  (excluding unrealized gains
   or losses)                    $1,120,083  $1,052,985     $67,098
  Securities Held To Maturity       $74,482    $111,140   ($36,658)
  Trading Securities                 $3,214      $2,513        $701
  Regulatory Equity
   Investment                       $27,022     $30,638    ($3,616)
  Short-Term Interest Bearing
   Accounts                         $25,088    $132,734  ($107,646)
  Total Earning Assets           $4,933,368  $4,959,134   ($25,766)
  Total Assets                   $5,375,643  $5,396,676   ($21,033)
  Interest Bearing Deposits      $3,165,920  $3,281,560  ($115,640)
  Non-Interest Bearing
   Deposits                        $983,318    $827,358    $155,960
  Short-Term Borrowings            $172,370    $159,480     $12,890
  Long-Term Borrowings             $445,771    $520,103   ($74,332)
  Total Interest Bearing
   Liabilities                   $3,784,061  $3,961,143  ($177,082)
  Stockholders' Equity             $538,404    $530,585      $7,819
  ---------------------------  ------------  ----------  ----------
  Average Balances
  Nine Months Ended September
   30,
  Loans and Leases               $3,650,667  $3,637,532     $13,135
  Securities Available For
   Sale
  (excluding unrealized gains
   or losses)                    $1,105,777  $1,085,171     $20,606
  Securities Held To Maturity       $84,660    $138,339   ($53,679)
  Trading Securities                 $3,129      $2,515        $614
  Regulatory Equity
   Investment                       $27,112     $32,840    ($5,728)
  Short-Term Interest Bearing
   Accounts                         $97,973    $121,211   ($23,238)
  Total Earning Assets           $4,966,189  $5,015,093   ($48,904)
  Total Assets                   $5,395,148  $5,455,845   ($60,697)
  Interest Bearing Deposits      $3,248,317  $3,343,001   ($94,684)
  Non-Interest Bearing
   Deposits                        $940,332    $789,160    $151,172
  Short-Term Borrowings            $153,857    $156,248    ($2,391)
  Long-Term Borrowings             $445,352    $566,044  ($120,692)
  Total Interest Bearing
   Liabilities                   $3,847,526  $4,065,293  ($217,767)
  Stockholders' Equity             $539,322    $521,861     $17,461
  ---------------------------  ------------  ----------  ----------
  NBT Bancorp Inc. and
   Subsidiaries                 September 30,   December 31,
  Consolidated Balance Sheets
   (unaudited)                       2011           2010
  ----------------------------  -------------  -------------
  (in thousands)
  ASSETS
  Cash and due from banks           $ 121,976       $ 99,673
  Short term interest bearing
   accounts                            69,969         69,119
  Securities available for
   sale, at fair value              1,169,552      1,129,368
  Securities held to maturity
   (fair value of $74,448and
   $98,759 at September 30,
   2011 and December 31, 2010,
   respectively)                       72,959         97,310
  Trading securities                    2,965          2,808
  Federal Reserve and Federal
   Home Loan Bank stock                27,020         27,246
  Loans and leases                  3,708,090      3,610,006
  Less allowance for loan and
   lease losses                        71,334         71,234
  ----------------------------  -------------  -------------
  Net loans and leases              3,636,756      3,538,772
  Premises and equipment, net          69,092         67,404
  Goodwill                            116,127        114,841
  Intangible assets, net               17,620         17,543
  Bank owned life insurance            77,669         75,301
  Other assets                         96,746         99,471
  ----------------------------  -------------  -------------
  TOTAL ASSETS                    $ 5,478,451    $ 5,338,856
  ----------------------------  -------------  -------------
  LIABILITIES AND
   STOCKHOLDERS' EQUITY
  Deposits:
   Demand (noninterest
    bearing)                      $ 1,028,553      $ 911,741
   Savings, NOW, and money
    market                          2,365,359      2,291,833
   Time                               871,152        930,778
  ----------------------------  -------------  -------------
    Total deposits                  4,265,064      4,134,352
  Short-term borrowings               158,285        159,434
  Long-term debt                      370,347        369,874
  Trust preferred debentures           75,422         75,422
  Other liabilities                    70,485         66,202
  ----------------------------  -------------  -------------
    Total liabilities               4,939,603      4,805,284

  Total stockholders' equity          538,848        533,572
  ----------------------------  -------------  -------------

  TOTAL LIABILITIES AND
   STOCKHOLDERS' EQUITY           $ 5,478,451    $ 5,338,856
  ----------------------------  -------------  -------------
                                  Three Months Ended       Nine Months Ended
  NBT Bancorp Inc. and
   Subsidiaries                      September 30,           September 30,
  Consolidated Statements of
   Income (unaudited)               2011        2010       2011         2010
  -----------------------------  ----------  ---------  -----------  ----------
  (in thousands, except per
   share data)
  Interest, fee and dividend
   income:
  Loans and leases                 $ 50,991   $ 53,301    $ 152,977   $ 160,496
  Securities available for sale       7,771      8,621       23,622      28,223
  Securities held to maturity           680        908        2,225       3,123
  Other                                 342        482        1,275       1,547
  -----------------------------  ----------  ---------  -----------  ----------
   Total interest, fee and
    dividend income                  59,784     63,312      180,099     193,389
  -----------------------------  ----------  ---------  -----------  ----------
  Interest expense:
  Deposits                            5,352      7,174       17,690      23,627
  Short-term borrowings                  56         91          166         338
  Long-term debt                      3,621      4,374       10,783      14,289
  Trust preferred debentures            394      1,046        1,683       3,106
  -----------------------------  ----------  ---------  -----------  ----------
   Total interest expense             9,423     12,685       30,322      41,360
  -----------------------------  ----------  ---------  -----------  ----------
  Net interest income                50,361     50,627      149,777     152,029
  Provision for loan and lease
   losses                             5,175      7,529       15,161      23,122
  -----------------------------  ----------  ---------  -----------  ----------
  Net interest income after
   provision for loan and lease
   losses                            45,186     43,098      134,616     128,907
  -----------------------------  ----------  ---------  -----------  ----------
  Noninterest income:
  Trust                               2,090      1,786        6,384       5,461
  Service charges on deposit
   accounts                           5,532      5,953       16,059      18,384
  ATM and debit card fees             3,135      2,660        8,731       7,489
  Insurance and other financial
   services revenue                   5,127      4,595       15,925      14,540
  Net securities gains                   12      1,120           98       1,211
  Bank owned life insurance
   income                               674        655        2,369       2,444
  Retirement plan
   administration fees                2,295      2,612        6,734       7,597
  Other                               1,329      1,610        3,881       4,526
  -----------------------------  ----------  ---------  -----------  ----------
   Total noninterest income          20,194     20,991       60,181      61,652
  -----------------------------  ----------  ---------  -----------  ----------
  Noninterest expense:
  Salaries and employee
   benefits                          25,068     24,090       74,107      70,518
  Office supplies and postage         1,531      1,542        4,418       4,538
  Occupancy                           3,887      3,709       12,396      11,527
  Equipment                           2,288      2,053        6,658       6,194
  Professional fees and outside
   services                           2,215      2,068        6,369       6,543
  Data processing and
   communications                     3,054      2,971        9,085       9,454
  Amortization of intangible
   assets                               782        767        2,286       2,328
  Loan collection and other
   real estate owned                    676        548        1,838       2,275
  Advertising                           685        730        2,286       2,221
  FDIC expenses                         920      1,621        3,381       4,734
  Prepayment penalty on
   long-term debt                        --      1,205           --       1,205
  Other operating                     3,940      3,380       10,440       9,504
  -----------------------------  ----------  ---------  -----------  ----------
   Total noninterest expense         45,046     44,684      133,264     131,041
  -----------------------------  ----------  ---------  -----------  ----------
  Income before income taxes         20,334     19,405       61,533      59,518
  Income taxes                        5,117      4,835       17,354      16,548
  -----------------------------  ----------  ---------  -----------  ----------
  Net income                       $ 15,217   $ 14,570     $ 44,179    $ 42,970
  -----------------------------  ----------  ---------  -----------  ----------
  Earnings Per Share:
    Basic                            $ 0.46     $ 0.42       $ 1.30      $ 1.25
    Diluted                          $ 0.45     $ 0.42       $ 1.29      $ 1.25
  -----------------------------  ----------  ---------  -----------  ----------
  NBT Bancorp Inc. and
   Subsidiaries                      3Q         2Q         1Q         4Q         3Q
  Quarterly Consolidated
   Statements of Income
   (unaudited)                      2011        2011       2011       2010       2010
  -----------------------------  ----------  ---------  ---------  ---------  ---------
  (in thousands, except per
   share data)
  Interest, fee and dividend
   income:
  Loans and leases                 $ 50,991   $ 51,126   $ 50,860   $ 52,933   $ 53,301
  Securities available for sale       7,771      7,947      7,904      7,944      8,621
  Securities held to maturity           680        745        800        845        908
  Other                                 342        440        493        627        482
  -----------------------------  ----------  ---------  ---------  ---------  ---------
   Total interest, fee and
    dividend income                  59,784     60,258     60,057     62,349     63,312
  -----------------------------  ----------  ---------  ---------  ---------  ---------
  Interest expense:
  Deposits                            5,352      6,051      6,287      6,727      7,174
  Short-term borrowings                  56         52         58         64         91
  Long-term debt                      3,621      3,591      3,571      4,025      4,374
  Trust preferred debentures            394        400        889      1,034      1,046
  -----------------------------  ----------  ---------  ---------  ---------  ---------
   Total interest expense             9,423     10,094     10,805     11,850     12,685
  -----------------------------  ----------  ---------  ---------  ---------  ---------
  Net interest income                50,361     50,164     49,252     50,499     50,627
  Provision for loan and lease
   losses                             5,175      6,021      3,965      6,687      7,529
  -----------------------------  ----------  ---------  ---------  ---------  ---------
  Net interest income after
   provision for loan and lease
   losses                            45,186     44,143     45,287     43,812     43,098
  -----------------------------  ----------  ---------  ---------  ---------  ---------
  Noninterest income:
  Trust                               2,090      2,258      2,036      2,261      1,786
  Service charges on deposit
   accounts                           5,532      5,455      5,072      5,657      5,953
  ATM and debit card fees             3,135      2,928      2,668      2,546      2,660
  Insurance and other financial
   services revenue                   5,127      5,025      5,773      4,327      4,595
  Net securities gains                   12         59         27      2,063      1,120
  Bank owned life insurance
   income                               674        660      1,035        872        655
  Retirement plan
   administration fees                2,295      2,268      2,171      2,759      2,612
  Other                               1,329      1,208      1,344      1,751      1,610
  -----------------------------  ----------  ---------  ---------  ---------  ---------
   Total noninterest income          20,194     19,861     20,126     22,236     20,991
  -----------------------------  ----------  ---------  ---------  ---------  ---------
  Noninterest expense:
  Salaries and employee
   benefits                          25,068     24,035     25,004     23,200     24,090
  Office supplies and postage         1,531      1,342      1,545      1,564      1,542
  Occupancy                           3,887      3,987      4,522      3,823      3,709
  Equipment                           2,288      2,180      2,190      2,123      2,053
  Professional fees and outside
   services                           2,215      2,088      2,066      2,489      2,068
  Data processing and
   communications                     3,054      3,117      2,914      2,893      2,971
  Amortization of intangible
   assets                               782        771        733        744        767
  Loan collection and other
   real estate owned                    676        443        719        761        548
  Advertising                           685      1,033        568      1,266        730
  FDIC expenses                         920        965      1,496      1,347      1,621
  Prepayment penalty on
   long-term debt                        --         --         --      3,321      1,205
  Other operating                     3,940      3,196      3,304      3,719      3,380
  -----------------------------  ----------  ---------  ---------  ---------  ---------
   Total noninterest expense         45,046     43,157     45,061     47,250     44,684
  -----------------------------  ----------  ---------  ---------  ---------  ---------
  Income before income taxes         20,334     20,847     20,352     18,798     19,405
  Income taxes                        5,117      6,192      6,045      4,364      4,835
  -----------------------------  ----------  ---------  ---------  ---------  ---------
   Net income                      $ 15,217   $ 14,655   $ 14,307   $ 14,434   $ 14,570
  -----------------------------  ----------  ---------  ---------  ---------  ---------
  Earnings per share:
   Basic                             $ 0.46     $ 0.43     $ 0.42     $ 0.42     $ 0.42
   Diluted                           $ 0.45     $ 0.43     $ 0.41     $ 0.42     $ 0.42
  -----------------------------  ----------  ---------  ---------  ---------  ---------
  Three Months ended September
   30,

                                  -------------  ----------  ------  -------------  ----------  ------
                                                             Yield/                             Yield/
                                     Average        2011                Average        2010
  (dollars in thousands)             Balance      Interest    Rates     Balance      Interest    Rates
  ------------------------------  -------------  ----------  ------  -------------  ----------  ------
  ASSETS
  Short-term interest bearing
   accounts                             $25,088         $11   0.17%       $132,734         $77   0.23%
  Securities available for sale
   (1)(excluding unrealized
   gains or losses)                   1,120,083       8,317   2.95%      1,052,985       9,258   3.49%
  Securities held to maturity
   (1)                                   74,482       1,026   5.46%        111,140       1,364   4.87%
  Investment in FRB and FHLB
   Banks                                 27,022         329   4.84%         30,638         405   5.23%
  Loans and leases (2)                3,686,693      51,227              3,631,637      53,506
                                  -------------  ----------   5.51%  -------------  ----------   5.85%
   Total interest earning assets    $ 4,933,368    $ 60,910                           $ 64,610
                                                 ----------   4.90%    $ 4,959,134  ----------   5.17%
  Other assets                          442,275                            437,542
                                  -------------                      -------------
  Total assets                      $ 5,375,643                        $ 5,396,676
                                  -------------                      -------------
  LIABILITIES AND STOCKHOLDERS'
   EQUITY
  Money market deposit accounts      $1,036,572         811   0.31%     $1,078,771     $ 1,445   0.53%
  NOW deposit accounts                  631,284         483   0.30%        665,893         616   0.37%
  Savings deposits                      615,168         170   0.11%        564,847         217   0.15%
  Time deposits                         882,896       3,888                972,049       4,896
                                  -------------  ----------   1.75%  -------------  ----------   2.00%
   Total interest bearing
    deposits                        $ 3,165,920     $ 5,352   0.67%    $ 3,281,560     $ 7,174   0.87%
  Short-term borrowings                 172,370          56   0.13%        159,480          91   0.23%
  Trust preferred debentures             75,422         394   2.07%         75,422       1,046   5.50%
  Long-term debt                        370,349       3,621                444,681       4,374
                                  -------------  ----------   3.88%  -------------  ----------   3.90%
   Total interest bearing
    liabilities                     $ 3,784,061     $ 9,423                           $ 12,685
                                                 ----------   0.99%    $ 3,961,143  ----------   1.27%
  Demand deposits                       983,318                            827,358
  Other liabilities                      69,860                             77,590
  Stockholders' equity                  538,404                            530,585
                                  -------------                      -------------
  Total liabilities and
   stockholders' equity             $ 5,375,643                         $5,396,676
                                  -------------                      -------------
   Net interest income (FTE)                         51,487                             51,925
                                                 ----------                         ----------
  Interest rate spread                                        3.91%                              3.90%
  Net interest margin                                         4.14%                              4.15%
  Taxable equivalent adjustment                       1,126                              1,298
                                                 ----------                         ----------
  Net interest income                              $ 50,361                           $ 50,627
                                                 ==========                         ==========
  (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,

                                 ------------------------------------------------------------------------
                                     Average         2011     Yield/     Average         2010     Yield/
 (dollars in thousands)              Balance       Interest   Rates      Balance       Interest   Rates
 --------------------------------------------------------------------------------------------------------
 ASSETS
 Short-term interest bearing
  accounts                               $97,973         $191   0.26%       $121,211         $219   0.24%
 Securities available for sale
  (1)(excluding unrealized gains
  or losses)                           1,105,777       25,330   3.06%      1,085,171       30,326   3.74%
 Securities held to maturity (1)          84,660        3,353   5.29%        138,339        4,702   4.54%
 Investment in FRB and FHLB Banks         27,112        1,084   5.34%         32,840        1,329   5.40%
 Loans and leases (2)                  3,650,667      153,678              3,637,532      161,097
                                 ----------------------------   5.63%----------------------------   5.92%
  Total interest earning assets      $ 4,966,189    $ 183,636                           $ 197,673
                                                -------------   4.94%    $ 5,015,093-------------   5.27%
 Other assets                            428,959                             440,752
                                 ---------------                     ---------------
 Total assets                        $ 5,395,148                         $ 5,455,845
                                 ---------------                     ---------------
 LIABILITIES AND STOCKHOLDERS'
  EQUITY
 Money market deposit accounts        $1,070,971        2,937   0.37%     $1,100,904      $ 5,085   0.62%
 NOW deposit accounts                    667,012        1,745   0.35%        692,178        2,207   0.43%
 Savings deposits                        599,173          517   0.12%        551,662          623   0.15%
 Time deposits                           911,161       12,491                998,257       15,712
                                 ----------------------------   1.83%----------------------------   2.10%
  Total interest bearing deposits    $ 3,248,317     $ 17,690   0.73%    $ 3,343,001     $ 23,627   0.94%
 Short-term borrowings                   153,857          166   0.14%        156,248          338   0.29%
 Trust preferred debentures               75,422        1,683   2.98%         75,422        3,106   5.51%
 Long-term debt                          369,930       10,783                490,622       14,289
                                 ----------------------------   3.90%----------------------------   3.89%
  Total interest bearing
   liabilities                       $ 3,847,526     $ 30,322                            $ 41,360
                                                -------------   1.05%    $ 4,065,293-------------   1.36%
 Demand deposits                         940,332                             789,160
 Other liabilities                        67,968                              79,531
 Stockholders' equity                    539,322                             521,861
                                 ---------------                     ---------------
 Total liabilities and
  stockholders' equity               $ 5,395,148                         $ 5,455,845
                                 ---------------                     ---------------
  Net interest income (FTE)                           153,314                             156,313
                                                -------------                       -------------
 Interest rate spread                                           3.89%                               3.91%
 Net interest margin                                            4.13%                               4.17%
 Taxable equivalent adjustment                          3,537                               4,284
                                                -------------                       -------------
 Net interest income                                $ 149,777                           $ 152,029
                                                =============                       =============
 (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    December 31,
                                              30,
  (In thousands)                             2011          2010
  -------------------------------------  ------------  ------------
  Residential real estate mortgages         $ 570,448     $ 548,394
  Commercial                                  608,675       577,731
  Commercial real estate mortgages            867,258       844,458
  Real estate construction and
   development                                 66,054        45,444
  Agricultural and agricultural real
   estate mortgages                           105,747       112,738
  Consumer                                    936,983       905,563
  Home equity                                 552,925       575,678
                                         ------------  ------------

   Total loans and leases                 $ 3,708,090   $ 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

Copyright © 2018 - NBT Bancorp All Right Reserved.