UPDATE: NBT Bancorp Inc. Announces First Quarter Net Income of $14.3 Million, up 2.4% From Last Year; Declares Cash Dividend
NORWICH, NY, Apr 25, 2011 (MARKETWIRE via COMTEX) --
NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today net income for the three months ended March 31, 2011 was $14.3 million, up $0.3 million, or 2.4%, from the three months ended March 31, 2010. Net income per diluted share for the three months ended March 31, 2011 was $0.41 per share, equal to the net income per diluted share for the three months ended March 31, 2010. Annualized return on average assets and return on average equity were 1.08% and 10.78%, respectively, for the three months ended March 31, 2011, compared with 1.03% and 11.05%, respectively, for the three months ended March 31, 2010. Net interest margin (on a fully taxable equivalent basis ("FTE")) was 4.11% for the three months ended March 31, 2011, down 10 basis points ("bp") from 4.21% for the three months ended March 31, 2010.
Key items for the first quarter of 2011 include:
-- Net income of $14.3 million exceeded last year's first quarter earnings
by 2.4%.
-- Diluted earnings per share of $0.41 equaled last year's results.
-- Net interest margin was 4.11% for the first quarter, down from the same
period of 2010, resulting from the continued impact of the low rate
environment on loan and investment yields.
-- Continued strategic expansion with the opening of a new branch in
Williston, VT.
"Our strategy of balancing performance and investment continues to yield positive results, as demonstrated by our strong earnings and increased year-over-year net income," said NBT President and CEO Martin Dietrich. "Our team is focused on putting customers first and seeking new opportunities for growth as a means of constantly building a sustainable, high-performing financial services company."
Loan and Lease Quality and Provision for Loan and Lease Losses
The provision for loan and lease losses was $4.0 million for the first quarter of 2011, down $5.3 million from the $9.3 million recorded in the first quarter of 2010. Net charge-offs were $5.3 million for the quarter, representing 0.59% of average loans and leases for the quarter versus $5.6 million, or 0.63% of average loans and leases for the first quarter of 2010.
There were no significant changes in other asset quality indicators during the quarter. Past due loans declined during the quarter. Total nonperforming loans increased from $44.8 million at December 31, 2010 to $48.7 million at March 31, 2011. Net charge-offs were $5.3 million, the lowest net charge-off quarter since the fourth quarter of 2008. The allowance for loan and lease losses was $69.9 million at March 31, 2011, versus $71.2 million at December 31, 2010 and $70.1 million at March 31, 2010. The allowance for loan and lease losses represented 1.93% of loans and leases at March 31, 2011, compared to 1.97% at December 31, 2010 and 1.93% at March 31, 2010.
Net Interest Income
Net interest income was down 3.0% to $49.3 million for the three months ended March 31, 2011, compared with $50.8 million for the three months ended March 31, 2010. The Company's FTE net interest margin was 4.11% for the three months ended March 31, 2011, down from 4.21% for the three months ended March 31, 2010.
While the yield on interest bearing liabilities decreased 31 bp, the yield on interest earning assets declined 40 bp, resulting in margin compression for the three months ended March 31, 2011, compared to the same period for 2010. The yield on securities available for sale was 3.14% for the three months ended March 31, 2011, as compared with 4.02% for the three months ended March 31, 2010. The yield on loans and leases was 5.73% for the three months ended March 31, 2011, as compared with 6.00% for the three months ended March 31, 2010. The yield on time deposits was 1.90% for the three months ended March 31, 2011, as compared with 2.19% for the three months ended March 31, 2010. The yield on money market deposit accounts was 0.42% for the three months ended March 31, 2011, as compared with 0.70% for the three months ended March 31, 2010.
Noninterest Income
Noninterest income for the three months ended March 31, 2011 was $20.1 million, relatively flat compared with $20.3 million for the same period in 2010. Insurance and other financial services revenue increased approximately $0.5 million for the three months ended March 31, 2011, as compared to the three months ended March 31, 2010, due primarily to new business and improved market conditions. Trust revenue increased approximately $0.3 million for the three months ended March 31, 2011, as compared to the three months ended March 31, 2010, due primarily to an increase in fair market value of trust assets under administration. ATM and debit card fees also increased approximately $0.3 million for the three months ended March 31, 2011, as compared to the three months ended March 31, 2010. These increases were offset by a decrease in service charges on deposit accounts of approximately $1.1 million, or 17.3%, for the three months ended March 31, 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.
Noninterest Expense and Income Tax Expense
Noninterest expense for the three months ended March 31, 2011 was $45.1 million, up from $42.2 million, or 6.9%, for the same period in 2010. Salaries and employee benefits increased $2.8 million, or 12.6%, for the three months ended March 31, 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 $0.4 million for the three months ended March 31, 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 $0.7 million for the three months ended March 31, 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 $0.3 million for the three months ended March 31, 2011, as compared to the three months ended March 31, 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 $0.3 million for the three months ended March 31, 2011, as compared to the three months ended March 31, 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 three month period ended March 31, 2011 was $6.0 million, up from $5.8 million for the same period in 2010. The effective tax rate was 29.7% for the three months ended March 31, 2011, as compared to 29.2% for the same period in 2010.
Balance Sheet
Total assets were $5.5 billion at March 31, 2011, up $138.8 million or 2.6% from December 31, 2010. Loans and leases were $3.6 billion at March 31, 2011, up $17.0 million from December 31, 2010. Total deposits were $4.3 billion at March 31, 2011, up $124.6 million from December 31, 2010. Stockholders' equity was $539.1 million, representing a total equity-to-total assets ratio of 9.84% at March 31, 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 107,871 shares of its common stock during the three month period ended March 31, 2011, for a total of $2.4 million at an average price of $21.96 per share. At March 31, 2011, there were 868,319 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 2011 second-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on June 15, 2011 to shareholders of record as of June 1, 2011.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $5.5 billion at March 31, 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 124 locations, including 85 NBT Bank offices in upstate New York, two NBT Bank offices in Vermont and 37 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
March 31,
Net Income $ 14,307 $ 13,976 $ 331 2%
Diluted Earnings
Per Share $ 0.41 $ 0.41 $ 0.00 0%
Weighted Average
Diluted Common
Shares Outstanding 34,650,368 34,424,752 225,616 1%
Return on Average
Assets (1) 1.08% 1.03% 5 bp 5%
Return on Average
Equity (1) 10.78% 11.05% -27 bp -2%
Net Interest Margin
(2) 4.11% 4.21% -10 bp -2%
Asset Quality March 31, December 31,
2011 2010
--------------- ---------------
Nonaccrual Loans $ 46,691 $ 42,467
90 Days Past Due
and Still Accruing $ 2,007 $ 2,325
Total Nonperforming
Loans $ 48,698 $ 44,792
Other Real Estate
Owned $ 630 $ 901
Total Nonperforming
Assets $ 49,328 $ 45,693
Past Due Loans $ 23,848 $ 31,004
Potential Problem
Loans $ 79,361 $ 82,247
Allowance for Loan
and Lease Losses $ 69,934 $ 71,234
Year-to-Date (YTD)
Net Charge-Offs $ 5,265 $ 25,125
Allowance for Loan
and Lease Losses
to Total Loans and
Leases 1.93% 1.97%
Total Nonperforming
Loans to Total
Loans and Leases 1.34% 1.24%
Total Nonperforming
Assets to Total
Assets 0.90% 0.86%
Past Due Loans to
Total Loans and
Leases 0.66% 0.86%
Allowance for Loan
and Lease Losses
to Total
Nonperforming
Loans 143.61% 159.03%
Net Charge-Offs to
YTD Average Loans
and Leases 0.59% 0.69%
Capital
Equity to Assets 9.84% 9.99%
Book Value Per
Share $ 15.65 $ 15.51
Tangible Book Value
Per Share $ 11.82 $ 11.67
Tier 1 Leverage
Ratio 9.40% 9.16%
Tier 1 Capital
Ratio 12.76% 12.44%
Total Risk-Based
Capital Ratio 14.02% 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 $25.96 $20.33
September 30 $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)
March 31, December 31, Net Percent
2011 2010 Change Change
---------------- ---------------- --------- ---------
(dollars in thousands, except
per share data)
Balance Sheet
Loans and Leases $ 3,626,994 $ 3,610,006 $ 16,988 0%
Earning Assets $ 5,071,803 $ 4,914,972 $ 156,831 3%
Total Assets $ 5,477,612 $ 5,338,856 $ 138,756 3%
Deposits $ 4,258,942 $ 4,134,352 $ 124,590 3%
Stockholders'
Equity $ 539,076 $ 533,572 $ 5,504 1%
2011 2010
---------------- ----------------
(dollars in thousands, except
Average Balances per share data)
Three Months Ended
March 31,
Loans and Leases $ 3,616,191 $ 3,640,137 $ (23,946)
Securities
Available For Sale
(excluding
unrealized gains
or losses) $ 1,098,042 $ 1,088,604 $ 9,438
Securities Held To
Maturity $ 94,098 $ 155,800 $ (61,702)
Trading Securities $ 2,969 $ 2,428 $ 541
Regulatory Equity
Investment $ 27,246 $ 34,728 $ (7,482)
Short-Term Interest
Bearing Accounts $ 141,309 $ 124,018 $ 17,291
Total Earning
Assets $ 4,976,886 $ 5,043,287 $ (66,401)
Total Assets $ 5,397,057 $ 5,489,544 $ (92,487)
Interest Bearing
Deposits $ 3,289,925 $ 3,376,185 $ (86,260)
Non-Interest
Bearing Deposits $ 904,748 $ 759,533 $ 145,215
Short-Term
Borrowings $ 153,374 $ 157,255 $ (3,881)
Long-Term
Borrowings $ 445,401 $ 601,748 $(156,347)
Total Interest
Bearing
Liabilities $ 3,888,700 $ 4,135,188 $(246,488)
Stockholders'
Equity $ 538,211 $ 513,174 $ 25,037
NBT Bancorp Inc. and Subsidiaries March 31, December 31,
Consolidated Balance Sheets (unaudited) 2011 2010
----------- -----------
(in thousands)
ASSETS
Cash and due from banks $ 84,599 $ 99,673
Short term interest bearing accounts 237,347 69,119
Securities available for sale, at fair value 1,105,606 1,129,368
Securities held to maturity (fair value of $91,426
and $98,759 at March 31, 2011 and December 31,
2010, respectively) 90,008 97,310
Trading securities 3,119 2,808
Federal Reserve and Federal Home Loan Bank stock 27,246 27,246
Loans and leases 3,626,994 3,610,006
Less allowance for loan and lease losses 69,934 71,234
=========== ===========
Net loans and leases 3,557,060 3,538,772
Premises and equipment, net 67,109 67,404
Goodwill 114,841 114,841
Intangible assets, net 17,016 17,543
Bank owned life insurance 76,336 75,301
Other assets 97,325 99,471
----------- -----------
TOTAL ASSETS $ 5,477,612 $ 5,338,856
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $ 909,833 $ 911,741
Savings, NOW, and money market 2,418,748 2,291,833
Time 930,361 930,778
----------- -----------
Total deposits 4,258,942 4,134,352
Short-term borrowings 167,461 159,434
Long-term debt 370,032 369,874
Trust preferred debentures 75,422 75,422
Other liabilities 66,679 66,202
----------- -----------
Total liabilities 4,938,536 4,805,284
Total stockholders' equity 539,076 533,572
=========== ===========
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,477,612 $ 5,338,856
=========== ===========
Three months ended
NBT Bancorp Inc. and Subsidiaries March 31,
Consolidated Statements of Income (unaudited) 2011 2010
----------- -----------
(in thousands, except per share data)
Interest, fee and dividend income:
Loans and leases $ 50,860 $ 53,692
Securities available for sale 7,904 10,046
Securities held to maturity 800 1,137
Other 493 596
----------- -----------
Total interest, fee and dividend income 60,057 65,471
----------- -----------
Interest expense:
Deposits 6,287 8,454
Short-term borrowings 58 124
Long-term debt 3,571 5,065
Trust preferred debentures 889 1,027
----------- -----------
Total interest expense 10,805 14,670
----------- -----------
Net interest income 49,252 50,801
Provision for loan and lease losses 3,965 9,243
----------- -----------
Net interest income after provision for loan and
lease losses 45,287 41,558
----------- -----------
Noninterest income:
Trust 2,036 1,766
Service charges on deposit accounts 5,072 6,130
ATM and debit card fees 2,668 2,367
Insurance and other financial services revenue 5,773 5,245
Net securities gains 27 28
Bank owned life insurance income 1,035 981
Retirement plan administration fees 2,171 2,390
Other 1,344 1,434
----------- -----------
Total noninterest income 20,126 20,341
----------- -----------
Noninterest expense:
Salaries and employee benefits 25,004 22,204
Office supplies and postage 1,545 1,542
Occupancy 4,522 4,152
Equipment 2,190 2,100
Professional fees and outside services 2,066 2,284
Data processing and communications 2,914 3,218
Amortization of intangible assets 733 781
Loan collection and other real estate owned 719 1,059
Advertising 568 667
FDIC expenses 1,496 1,553
Other operating 3,304 2,600
----------- -----------
Total noninterest expense 45,061 42,160
----------- -----------
Income before income taxes 20,352 19,739
Income taxes 6,045 5,763
----------- -----------
Net income $ 14,307 $ 13,976
----------- -----------
Earnings Per Share:
Basic $ 0.42 $ 0.41
Diluted $ 0.41 $ 0.41
=========== ===========
NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated
Statements of Income 1Q 4Q 3Q 2Q 1Q
(unaudited) 2011 2010 2010 2010 2010
-------- -------- -------- -------- --------
(in thousands, except per
share data)
Interest, fee and dividend
income:
Loans and leases $ 50,860 $ 52,933 $ 53,301 $ 53,503 $ 53,692
Securities available for sale 7,904 7,944 8,621 9,556 10,046
Securities held to maturity 800 845 908 1,078 1,137
Other 493 627 482 469 596
-------- -------- -------- -------- --------
Total interest, fee and
dividend income 60,057 62,349 63,312 64,606 65,471
-------- -------- -------- -------- --------
Interest expense:
Deposits 6,287 6,727 7,174 7,999 8,454
Short-term borrowings 58 64 91 123 124
Long-term debt 3,571 4,025 4,374 4,850 5,065
Trust preferred debentures 889 1,034 1,046 1,033 1,027
-------- -------- -------- -------- --------
Total interest expense 10,805 11,850 12,685 14,005 14,670
-------- -------- -------- -------- --------
Net interest income 49,252 50,499 50,627 50,601 50,801
Provision for loan and lease
losses 3,965 6,687 7,529 6,350 9,243
-------- -------- -------- -------- --------
Net interest income after
provision for loan and lease
losses 45,287 43,812 43,098 44,251 41,558
-------- -------- -------- -------- --------
Noninterest income:
Trust 2,036 2,261 1,786 1,909 1,766
Service charges on deposit
accounts 5,072 5,657 5,953 6,301 6,130
ATM and debit card fees 2,668 2,546 2,660 2,462 2,367
Insurance and other financial
services revenue 5,773 4,327 4,595 4,700 5,245
Net securities gains/(losses) 27 2,063 1,120 63 28
Bank owned life insurance
income 1,035 872 655 808 981
Retirement plan administration
fees 2,171 2,759 2,612 2,595 2,390
Other 1,344 1,751 1,610 1,482 1,434
-------- -------- -------- -------- --------
Total noninterest income 20,126 22,236 20,991 20,320 20,341
-------- -------- -------- -------- --------
Noninterest expense:
Salaries and employee benefits 25,004 23,200 24,090 24,224 22,204
Office supplies and postage 1,545 1,564 1,542 1,454 1,542
Occupancy 4,522 3,823 3,709 3,666 4,152
Equipment 2,190 2,123 2,053 2,041 2,100
Professional fees and outside
services 2,066 2,489 2,068 2,191 2,284
Data processing and
communications 2,914 2,893 2,971 3,265 3,218
Amortization of intangible
assets 733 744 767 780 781
Loan collection and other real
estate owned 719 761 548 668 1,059
Advertising 568 1,266 730 825 667
FDIC expenses 1,496 1,347 1,621 1,560 1,553
Prepayment penalty on
long-term debt - 3,321 1,205 - -
Other operating 3,304 3,719 3,380 3,523 2,600
-------- -------- -------- -------- --------
Total noninterest expense 45,061 47,250 44,684 44,197 42,160
-------- -------- -------- -------- --------
Income before income taxes 20,352 18,798 19,405 20,374 19,739
Income taxes 6,045 4,364 4,835 5,950 5,763
-------- -------- -------- -------- --------
Net income $ 14,307 $ 14,434 $ 14,570 $ 14,424 $ 13,976
======== ======== ======== ======== ========
Earnings per share:
Basic $ 0.42 $ 0.42 $ 0.42 $ 0.42 $ 0.41
Diluted $ 0.41 $ 0.42 $ 0.42 $ 0.42 $ 0.41
======== ======== ======== ======== ========
Three Months ended
March 31,
2011 2010
(dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rates Balance Interest Rates
----------- --------- ----- ----------- --------- -----
ASSETS
Short-term
interest bearing
accounts $ 141,309 $ 69 0.20% $ 124,018 $ 67 0.22%
Securities
available for
sale (1)
(excluding
unrealized gains
or losses) 1,098,042 8,501 3.14% 1,088,604 10,781 4.02%
Securities held
to maturity (1) 94,098 1,202 5.18% 155,800 1,714 4.46%
Investment in FRB
and FHLB Banks 27,246 425 6.33% 34,728 529 6.17%
Loans and leases
(2) 3,616,191 51,092 5.73% 3,640,137 53,880 6.00%
----------- --------- ----------- ---------
Total interest
earning assets $ 4,976,886 $ 61,289 4.99% $ 5,043,287 $ 66,971 5.39%
--------- ---------
Other assets 420,171 446,257
----------- -----------
Total assets $ 5,397,057 $ 5,489,544
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Money market
deposit accounts $ 1,085,882 1,116 0.42% $ 1,093,986 $ 1,896 0.70%
NOW deposit
accounts 698,141 635 0.37% 722,179 822 0.46%
Savings deposits 574,370 165 0.12% 532,677 193 0.15%
Time deposits 931,532 4,371 1.90% 1,027,343 5,543 2.19%
----------- --------- ----------- ---------
Total interest
bearing
deposits $ 3,289,925 $ 6,287 0.78% $ 3,376,185 $ 8,454 1.02%
Short-term
borrowings 153,374 58 0.15% 157,255 124 0.32%
Trust preferred
debentures 75,422 889 4.78% 75,422 1,027 5.52%
Long-term debt 369,979 3,571 3.91% 526,326 5,065 3.90%
----------- --------- ----------- ---------
Total interest
bearing
liabilities $ 3,888,700 $ 10,805 1.13% $ 4,135,188 $ 14,670 1.44%
--------- ---------
Demand deposits 904,748 759,533
Other liabilities 65,398 81,649
Stockholders'
equity 538,211 513,174
----------- -----------
Total liabilities
and
stockholders'
equity $ 5,397,057 $ 5,489,544
----------- -----------
Net interest
income (FTE) 50,484 52,301
--------- ---------
Interest rate
spread 3.86% 3.95%
Net interest
margin 4.11% 4.21%
Taxable
equivalent
adjustment 1,232 1,500
--------- ---------
Net interest
income $ 49,252 $ 50,801
(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)
March 31, December 31,
(In thousands) 2011 2010
----------- -----------
Residential real estate mortgages $ 561,783 $ 548,394
Commercial 593,857 577,731
Commercial real estate mortgages 839,482 844,458
Real estate construction and development 62,389 45,444
Agricultural and agricultural real estate mortgages 109,666 112,738
Consumer 901,287 905,563
Home equity 558,530 575,678
----------- -----------
Total loans and leases $ 3,626,994 $ 3,610,006
=========== ===========
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.