SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported): January 26, 2009
|
NBT
BANCORP INC.
|
|
(Exact
name of registrant as specified in its
charter)
|
|
DELAWARE
|
0-14703
|
16-1268674
|
|
(State
or other jurisdiction of incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
52
SOUTH BROAD STREET, NORWICH, NEW YORK 13815
(Address
of principal executive offices)
Registrant's
telephone number, including area code: (607) 337-2265
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o Written communication
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
ITEM
2.02 Results of Operations and Financial Condition
On
January 26, 2009, NBT Bancorp Inc. issued a press release describing its results
of operations for the year and quarter ending December 31, 2008 and announcing a
quarterly dividend of $0.20 per share to be paid on March 15, 2009 to
shareholders of record on March 1, 2009. That press release is furnished as
Exhibit 99.1 hereto.
ITEM
9.01 Financial Statements and Exhibits
(d)
The following is being furnished herewith:
|
Exhibit
No.
|
Exhibit
Description
|
|
Press
release text of NBT Bancorp Inc. dated January 26,
2009
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Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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NBT
BANCORP INC.
|
||
|
(Registrant)
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||
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/s/
Michael J. Chewens
|
||
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Michael
J. Chewens
|
||
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Senior
Executive Vice President,
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||
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Chief
Financial Officer and Corporate
Secretary
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||
Date:
January 27, 2009
Exhibit
99.1
Page
1 of 11
FOR IMMEDIATE
RELEASE
ATTENTION:
FINANCIAL AND BUSINESS EDITORS
|
Contact:
|
Martin
A. Dietrich, CEO
|
Michael
J. Chewens, CFO
NBT
Bancorp Inc.
52 South
Broad Street
Norwich,
NY 13815
607-337-6119
NBT
BANCORP INC. ANNOUNCES RECORD ANNUAL EARNINGS OF $1.80 PER DILUTED SHARE, UP
19.2% FROM 2007; DECLARES CASH DIVIDEND
NORWICH,
NY (January 26, 2009) – NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today
that net income for the year ended December 31, 2008 was $58.4 million, up $8.1
million, or 15.9%, from net income of $50.3 million reported in
2007. Net income per diluted share for the year ended December 31,
2008 was $1.80 per share, compared with $1.51 per share for
2007. Return on average assets and return on average equity were
1.11% and 14.16%, respectively, for the year ended December 31, 2008, compared
with 0.98% and 12.60%, respectively, for 2007.
Net
income for the three months ended December 31, 2008 was $14.9 million, up $5.9
million, or 65.8%, from net income of $9.0 million reported for the same period
in 2007. Net income per diluted share for the three months ended
December 31, 2008 was $0.45 per share, compared with $0.28 per share for the
same period in 2007. Return on average assets and return on average
equity were 1.11% and 13.88%, respectively, for the three months ended December
31, 2008, compared with 0.69% and 9.06%, respectively, for the same period in
2007.
NBT
President and CEO Martin Dietrich said: “Although 2008 presented many challenges
for the financial services industry and the economy in general, I am extremely
pleased with the record earnings we achieved in this difficult
environment. While the current financial crisis has caused many banks
to struggle, we were able to post record diluted earnings per share of $1.80 and
record net income of $58.4 million. In addition, the return on our
stock, including reinvested dividends, was up over 26% as of December 31, 2008,
compared with December 31, 2007. Our strong 2008 performance can be
attributed to many factors, including growth in net interest income resulting
from strategic management of our earning assets and interest bearing
liabilities. Our net interest margin was 3.95% in 2008, compared with
3.61% for 2007. In addition, our efforts to grow our noninterest
income resulted in a 20.1% increase over 2007. We have also seen
several asset quality indicators improve from 2007. Our nonperforming
assets were down approximately 12.8% from 2007, and net charge-offs were down
approximately 14.0% from last year. During 2008, we continued our
controlled growth initiative by opening three new branches within our
footprint. While 2009 may be a very challenging year given the
economic environment, I am confident in our ability to successfully navigate
through the challenges ahead and deliver long-term value to our shareholders and
customers.”
Loan
and Lease Quality and Provision for Loan and Lease Losses
Nonperforming
loans at December 31, 2008 were $26.5 million or 0.73% of total loans and leases
compared with $30.6 million or 0.88% at December 31, 2007. The
decrease in nonperforming loans at December 31, 2008 from December 31, 2007 was
primarily the result of net charge-offs during the 12 month period ending
December 31, 2008 related to two large commercial loans, both of which had been
previously identified and reserved for in 2007. The allowance for
loan and lease losses totaled $58.6 million at December 31, 2008, compared with
$54.2 million at December 31, 2007.
Page
2 of 11
The
Company recorded a provision for loan and lease losses of $27.2 million for the
year ended December 31, 2008, compared with $30.1 million for the 12 months
ended December 31, 2007. Net charge-offs totaled $22.8 million for
the 12 months ended December 31, 2008, down from $26.5 million for the same
period a year ago. The decrease in net charge-offs for the 12 months
ended December 31, 2008 was due primarily to charge-offs in 2007 related to one
large commercial real estate loan. Net charge-offs to average loans
and leases for the 12 months ended December 31, 2008 were 0.64%, compared with
0.77% for the 12 months ended December 31, 2007.
The
Company recorded a provision for loan and lease losses of $7.7 million during
the fourth quarter of 2008 compared with $13.4 million for the three months
ending December 31, 2007. The decrease in the provision for loan and
lease losses for the three months ended December 31, 2008, compared with the
three months ended December 31, 2007, was due primarily to the provision in the
fourth quarter of 2007 related to one large commercial non-real estate
loan. Net charge-offs totaled $5.0 million for the three month period
ending December 31, 2008, down from $14.1 million for the three months ended
December 31, 2007. The decrease in net charge-offs for the three
months ended December 31, 2008, compared with the three months ended December
31, 2007, was due primarily to charge-offs in the fourth quarter of 2007 related
to the aforementioned commercial real estate loan. Annualized net
charge-offs to average loans and leases for the three months ended December 31,
2008 were 0.54%, compared with 1.62% for the three months ended December 31,
2007. The Company’s allowance for loan and lease losses was 1.60% of
loans and leases at December 31, 2008, compared with 1.57% at December 31,
2007.
Net
Interest Income
Net
interest income was up 12.7% to $186.0 million for the year ended December 31,
2008, compared with $165.0 million for the year ended December 31, 2007. The
Company’s fully taxable equivalent (FTE) net interest margin increased from
3.61% for the year ended December 31, 2007 to 3.95% for the year ended December
31, 2008. In addition, the Company experienced a 2.8% growth in
average earning assets for the year ended December 31, 2008, compared with the
year ended December 31, 2007, due primarily to an increase in average loans and
leases. Although the yield on interest earning assets decreased 41
basis points, the yield on interest bearing liabilities declined 88 basis
points, which contributed to the increase in the net interest margin from the 12
months ended December 31, 2007. The yield on money market deposit
accounts declined from 3.38% for the 12 months ended December 31, 2007 to 1.85%
for the 12 months ended December 31, 2008, while the yield on time deposits
decreased 86 basis points for the same period. The yield on short
term borrowings declined 245 basis points for the 12 months ended December 31,
2008, compared with the 12 months ended December 31, 2007, as a result of the
400 basis point drop in the Federal Reserve’s target for the federal funds rate
from 4.25% at December 31, 2007 to 0.25% at December 31, 2008.
Net
interest income was up 16.9% to $48.9 million for the three months ended
December 31, 2008 compared with $41.9 million for the three months ended
December 31, 2007. The Company’s FTE net interest margin increased from 3.61%
for the three months ended December 31, 2007 to 4.06% for the three months ended
December 31, 2008. In addition, the Company experienced a 3.7% growth
in average earning assets for the three months ending December 31, 2008,
compared with the three months ending December 31, 2007, due primarily to an
increase in average loans and leases. Although the yield on interest
earning assets decreased 51 basis points, the yield on interest bearing
liabilities declined 113 basis points, which contributed to the increase in the
net interest margin for the three months ended December 31, 2008, compared with
the same period for 2007. The yield on money market deposit accounts
declined from 3.24% for the three months ended December 31, 2007 to 1.61% for
the three months ended December 31, 2008, while the yield on time deposits
decreased 124 basis points for the same period. The yield on short
term borrowings declined 344 basis points for the three months ended December
31, 2008, compared with the three months ended December 31, 2007, as a result of
the aforementioned 400 basis point drop in the Federal Reserve’s target for the
federal funds rate.
Page 3
of 11
Noninterest
Income
Noninterest
income for the year ended December 31, 2008 was $71.7 million, up $12.0 million
or 20.1% from $59.7 million for the same period in 2007. The increase
in noninterest income was due primarily to an increase in service charges on
deposit accounts and ATM and debit card fees, which collectively increased $6.0
million due to various initiatives in 2008. In addition, trust
administration income increased $0.8 million for the year ended December 31,
2008, compared with the same period in 2007. This increase stems
primarily from an increase in customer accounts resulting from successful
business development. Broker/dealer and insurance revenue increased
approximately $4.5 million for the year ended December 31, 2008, primarily due
to the acquisition of Mang Insurance Agency, LLC during the third quarter of
2008. Other noninterest income increased $0.7 million for the year
ended December 31, 2008, compared with the same period in 2007. This
increase was due primarily to a death benefit realized during the fourth quarter
of 2008 from a life insurance policy. Net securities gains for the 12
month period ending December 31, 2008 were $1.5 million, compared with $2.1
million for the 12 month period ending December 31, 2007. Excluding
the effects of these securities transactions, noninterest income increased $12.6
million, or 21.9%, for the 12 months ended December 31, 2008, compared with
2007.
Noninterest
income for the three months ended December 31, 2008 was $20.2 million, up $3.7
million or 22.7% from $16.5 million for the same period in 2007. The
increase in noninterest income was due primarily to an increase in broker/dealer
and insurance revenue of approximately $2.9 million for the three month period
ended December 31, 2008, due primarily to revenue generated by the
aforementioned acquisition of Mang Insurance Agency, LLC. Other
noninterest income increased $0.8 million for the three month period ended
December 31, 2008, compared with the same period in 2007. This
increase was due primarily to the aforementioned death benefit realized during
the fourth quarter of 2008 from a life insurance policy. Net
securities losses for the three month period ending December 31, 2008 were
nominal, compared with $0.6 million in net securities gains during the three
month period ending December 31, 2007. Excluding the effects of these
securities transactions, noninterest income increased $4.4 million, or 27.5%,
for the three months ended December 31, 2008, compared with the same period in
2007.
Noninterest
Expense and Income Tax Expense
Noninterest
expense for the year ended December 31, 2008 was $146.8 million, up from $122.5
million for the same period in 2007. Salaries and employee benefits
increased $11.6 million, or 19.6%, for the year ended December 31, 2008,
compared with the same period in 2007. This increase was due
primarily to increases in full time equivalent employees during 2008 and reduced
levels of incentive compensation in 2007 compared with 2008. The
increase in full time equivalent employees was largely due to new branch
activity and the aforementioned acquisition. Occupancy, equipment and
data processing and communications expenses were $34.0 million for the year
ended December 31, 2008, up $3.5 million, or 11.7%, from $30.5 million for the
year ended December 31, 2007. This increase was due primarily to an
increase in expenses related to new branch activity during the past
year. Professional fees and outside services increased $1.3 million
for the year ended December 31, 2008, compared with the same period in 2007, due
primarily to increases in legal and audit fees incurred in 2008, as well as
increases in fees related to the aforementioned noninterest income
initiatives. Loan collection and other real estate owned expenses
were $2.5 million for the year ended December 31, 2008, up from $1.6 million for
same period in 2007. The Company recorded an other than temporary
impairment charge on lease residual assets totaling $2.0 million during the
third quarter of 2008 as a result of declines in the fair value of lease
residual assets associated with certain leased vehicles. Other
operating expenses were $19.2 million for the year ended December 31, 2008, up
$4.2 million from $15.0 million for the year ended December 31,
2007. This increase resulted primarily from losses incurred from
sales of certain returned lease vehicles totaling approximately $1.4 million
during the period due to reduced values of those vehicles. In
addition, Federal Deposit Insurance Corporation (“FDIC”) insurance premiums
increased approximately $1.4 million for the year ended December 31, 2008,
compared with the same period in 2007. Income tax expense
for the year ended December 31, 2008 was $25.4 million, up from $21.8 million
for the same period in 2007. The effective rates were 30.3% and 30.2%
for the years ended December 31, 2008 and 2007, respectively.
Page 4
of 11
Noninterest
expense for the three months ended December 31, 2008 was $40.3 million, up from
$32.4 million for the same period in 2007. Salaries and employee
benefits increased $6.0 million, or 40.8%, for the three months ended December
31, 2008, compared with the same period in 2007. This increase was
due primarily to increases in full time equivalent employees during 2008 and
reduced levels of incentive compensation in 2007. Occupancy,
equipment and data processing and communications expenses were $8.6 million for
the three months ended December 31, 2008, up $0.9 million, or 11.4%, from $7.7
million for the three months ended December 31, 2007. This increase
was due primarily to an increase in expenses related to the aforementioned
branch openings. Other operating expenses were $5.5 million for the
three months ended December 31, 2008, up $0.9 million from $4.6 million for the
three months ended December 31, 2007. This increase resulted
primarily from an increase in FDIC insurance premiums of approximately $0.7
million for the three month period ending December 31, 2008, compared with the
same period in 2007. Income tax expense for the three month period
ended December 31, 2008 was $6.2 million, up from $3.5 million for the same
period in 2007. The effective rates were 29.5% and 28.1% for the
three month periods ended December 31, 2008 and 2007, respectively.
Balance
Sheet
Total
assets were $5.3 billion at December 31, 2008, up $134.3 million or 2.6% from
$5.2 billion at December 31, 2007. Loans and leases were $3.7 billion
at December 31, 2008, up $196.1 million or 5.7% from $3.5 billion at December
31, 2007. The increase in loans and leases at December 31, 2008, compared with
December 31, 2007, was due in large part to an increase in consumer loans of
approximately $186.5 million. Total deposits were $3.9 billion at
December 31, 2008, up $51.2 million or 1.3% from December 31,
2007. The increase from December 31, 2007 was due in large part to a
$271.3 million, or 16.8%, increase in NOW, savings and money market accounts,
partially offset by a $238.9 million decrease in time
deposits. Stockholders’ equity was $431.8 million, representing a
total equity to total assets ratio of 8.09% at December 31, 2008, compared with
$397.3 million or a total equity to total assets ratio of 7.64% at December 31,
2007.
Stock
Repurchase Program
Under
previously disclosed stock repurchase plans, the Company purchased
272,840 shares of its common stock during the year ended December 31, 2008,
for a total of $5.9 million at an average price of $21.77 per
share. There were no shares purchased during the three month period
ended December 31, 2008. At December 31, 2008, there were 1,203,040
shares available for repurchase under previously announced
plans.
Page 5
of 11
Dividend
Declared
The NBT
Board of Directors declared a 2009 first quarter cash dividend of $0.20 per
share at a meeting held today. The dividend will be paid on March 15, 2009, to
shareholders of record as of March 1, 2009.
2009
Outlook
While the
Company reported record earnings for 2008, it anticipates that current global
economic conditions and challenges in the financial services industry may
negatively impact earnings in 2009. In particular, the Company currently expects
that in 2009:
•
premiums paid to the Federal Deposit Insurance Corporation will increase
significantly;
• pension
and postretirement expenses will increase significantly;
• revenue
from Federal Home Loan Bank dividends may decrease significantly;
•
payments representing interest and principal on currently outstanding loans and
investments will most likely be reinvested at rates that are lower than the
rates on currently outstanding loans and investments; and
• the
economy may have an adverse affect on asset quality indicators and the provision
for loan and lease losses, and therefore credit costs, which have trended higher
in recent years are not expected to decline until economic indicators
improve.
Due to
current uncertainty in economic conditions and the financial services industry
in general, it is particularly difficult to estimate certain revenues, expenses
and other related matters. There may be factors in addition to those
identified above that impact 2009 results. For a discussion of risks
and uncertainties that could impact the Company’s future results, see “Risk
Factors” in the Company’s Annual Report on Form 10-K for the year ended December
31, 2007 and its Quarterly Report on Form 10-Q for the quarter ended September
30, 2008.
Corporate
Overview
NBT
Bancorp, Inc. is a financial holding company headquartered in Norwich, NY, with
total assets of $5.4 billion at December 31, 2008. The company primarily
operates through NBT Bank, N.A., a full-service community bank with two
divisions, and through three financial services companies. NBT Bank,
N.A. has 122 locations, including 84 NBT Bank offices in upstate New
York and 38 Pennstar Bank offices in northeastern
Pennsylvania. EPIC Advisors, Inc., based in Rochester, NY, is a
full-service 401(k) plan recordkeeping firm. Mang Insurance
Agency, LLC, based in Binghamton, 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.hathawayagency.com, www.epic1st.com and www.manginsurance.com.
Page 6
of 11
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.
Page 7
of 11
NBT
Bancorp Inc. and Subsidiaries
SELECTED
FINANCIAL HIGHLIGHTS
(unaudited)
|
Net
|
Percent
|
|||||||||||||||
|
2008
|
2007
|
Change
|
Change
|
|||||||||||||
|
(dollars
in thousands, except per share data)
|
||||||||||||||||
|
Three
Months Ended December 31,
|
||||||||||||||||
|
Net
Income
|
$ | 14,897 | $ | 8,985 | $ | 5,912 | 66 | % | ||||||||
|
Diluted
Earnings Per Share
|
$ | 0.45 | $ | 0.28 | $ | 0.17 | 61 | % | ||||||||
|
Weighted
Average Diluted Common Shares Outstanding
|
32,758,405 | 32,398,179 | 360,226 | 1 | % | |||||||||||
|
Return
on Average Assets (1)
|
1.11 | % | 0.69 | % | 0.42 | % | 61 | % | ||||||||
|
Return
on Average Equity (1)
|
13.88 | % | 9.06 | % | 4.82 | % | 53 | % | ||||||||
|
Net
Interest Margin (2)
|
4.06 | % | 3.61 | % | 0.45 | % | 12 | % | ||||||||
|
Twelve
Months Ended December 31,
|
||||||||||||||||
|
Net
Income
|
$ | 58,353 | $ | 50,328 | $ | 8,025 | 16 | % | ||||||||
|
Diluted
Earnings Per Share
|
$ | 1.80 | $ | 1.51 | $ | 0.29 | 19 | % | ||||||||
|
Weighted
Average Diluted Common Shares Outstanding
|
32,427,193 | 33,421,078 | -993,885 | -3 | % | |||||||||||
|
Return
on Average Assets
|
1.11 | % | 0.98 | % | 0.13 | % | 13 | % | ||||||||
|
Return
on Average Equity
|
14.16 | % | 12.60 | % | 1.56 | % | 12 | % | ||||||||
|
Net
Interest Margin (2)
|
3.95 | % | 3.61 | % | 0.34 | % | 9 | % | ||||||||
|
Asset
Quality
|
December
31,
|
December
31,
|
||||||||||||||
|
2008
|
2007
|
|||||||||||||||
|
Nonaccrual
Loans
|
$ | 24,191 | $ | 29,697 | ||||||||||||
|
90
Days Past Due and Still Accruing
|
$ | 2,305 | $ | 882 | ||||||||||||
|
Total
Nonperforming Loans
|
$ | 26,496 | $ | 30,579 | ||||||||||||
|
Other
Real Estate Owned
|
$ | 665 | $ | 560 | ||||||||||||
|
Total
Nonperforming Assets
|
$ | 27,161 | $ | 31,139 | ||||||||||||
|
Past
Due Loans
|
$ | 33,098 | $ | 25,914 | ||||||||||||
|
Allowance
for Loan and Lease Losses
|
$ | 58,564 | $ | 54,183 | ||||||||||||
|
Year-to-Date
(YTD) Net Charge-Offs
|
$ | 22,800 | $ | 26,498 | ||||||||||||
|
Allowance
for Loan and Lease Losses to Total Loans and Leases
|
1.60 | % | 1.57 | % | ||||||||||||
|
Total
Nonperforming Loans to Total Loans and Leases
|
0.73 | % | 0.88 | % | ||||||||||||
|
Total
Nonperforming Assets to Total Assets
|
0.51 | % | 0.60 | % | ||||||||||||
|
Past
Due Loans to Total Loans and Leases
|
0.91 | % | 0.75 | % | ||||||||||||
|
Allowance
for Loan and Lease Losses to Total Nonperforming Loans
|
221.03 | % | 177.19 | % | ||||||||||||
|
Net
Charge-Offs to YTD Average Loans and Leases
|
0.64 | % | 0.77 | % | ||||||||||||
|
Capital
|
||||||||||||||||
|
Equity
to Assets
|
8.09 | % | 7.64 | % | ||||||||||||
|
Book
Value Per Share
|
$ | 13.24 | $ | 12.29 | ||||||||||||
|
Tangible
Book Value Per Share
|
$ | 9.01 | $ | 8.78 | ||||||||||||
|
Tier
1 Leverage Ratio
|
7.17 | % | 7.14 | % | ||||||||||||
|
Tier
1 Capital Ratio
|
9.75 | % | 9.85 | % | ||||||||||||
|
Total
Risk-Based Capital Ratio
|
11.00 | % | 11.10 | % | ||||||||||||
|
Quarterly
Common Stock Price
|
2008
|
2007
|
2006
|
|||||||||||||||||||||
|
Quarter
End
|
High
|
Low
|
High
|
Low
|
High
|
Low
|
||||||||||||||||||
|
March
31
|
$ | 23.65 | $ | 17.95 | $ | 25.81 | $ | 21.73 | $ | 23.90 | $ | 21.02 | ||||||||||||
|
June
30
|
25.00 | 20.33 | 23.45 | 21.80 | 23.24 | 21.03 | ||||||||||||||||||
|
September
30
|
36.47 | 19.05 | 23.80 | 17.10 | 24.57 | 21.44 | ||||||||||||||||||
|
December
31
|
30.83 | 21.71 | 25.00 | 20.58 | 26.47 | 22.36 | ||||||||||||||||||
(1) Annualized
(2) Calculated
on a FTE basis
Page 8
of 11
SELECTED
FINANCIAL HIGHLIGHTS
(unaudited)
|
Net
|
Percent
|
|||||||||||||||
|
2008
|
2007
|
Change
|
Change
|
|||||||||||||
|
(dollars
in thousands, except per share data)
|
||||||||||||||||
|
Balance
Sheet as of December 31,
|
||||||||||||||||
|
Loans
and Leases
|
$ | 3,651,911 | $ | 3,455,851 | $ | 196,060 | 6 | % | ||||||||
|
Earning
Assets
|
$ | 4,933,099 | $ | 4,783,519 | $ | 149,580 | 3 | % | ||||||||
|
Total
Assets
|
$ | 5,336,088 | $ | 5,201,776 | $ | 134,312 | 3 | % | ||||||||
|
Deposits
|
$ | 3,923,258 | $ | 3,872,093 | $ | 51,165 | 1 | % | ||||||||
|
Stockholders’
Equity
|
$ | 431,845 | $ | 397,300 | $ | 34,545 | 9 | % | ||||||||
|
Average
Balances
|
||||||||||||||||
|
Three
Months Ended December 31,
|
||||||||||||||||
|
Loans
and Leases
|
$ | 3,634,346 | $ | 3,441,150 | $ | 193,196 | 6 | % | ||||||||
|
Securities
Available For Sale (excluding unrealized gains or losses)
|
$ | 1,117,469 | $ | 1,144,639 | $ | (27,170 | ) | -2 | % | |||||||
|
Securities
Held To Maturity
|
$ | 140,141 | $ | 143,999 | $ | (3,858 | ) | -3 | % | |||||||
|
Regulatory
Equity Investment
|
$ | 39,751 | $ | 35,073 | $ | 4,678 | 13 | % | ||||||||
|
Short-Term
Interest Bearing Accounts
|
$ | 17,151 | $ | 8,015 | $ | 9,136 | 114 | % | ||||||||
|
Total
Earning Assets
|
$ | 4,948,858 | $ | 4,772,876 | $ | 175,982 | 4 | % | ||||||||
|
Total
Assets
|
$ | 5,349,609 | $ | 5,148,099 | $ | 201,510 | 4 | % | ||||||||
|
Interest
Bearing Deposits
|
$ | 3,267,893 | $ | 3,273,248 | $ | (5,355 | ) | 0 | % | |||||||
|
Non-Interest
Bearing Deposits
|
$ | 695,696 | $ | 656,784 | $ | 38,912 | 6 | % | ||||||||
|
Short-Term
Borrowings
|
$ | 181,032 | $ | 282,296 | $ | (101,264 | ) | -36 | % | |||||||
|
Long-Term
Borrowings
|
$ | 708,867 | $ | 477,190 | $ | 231,677 | 49 | % | ||||||||
|
Total
Interest Bearing Liabilities
|
$ | 4,157,792 | $ | 4,032,734 | $ | 125,058 | 3 | % | ||||||||
|
Stockholders’
Equity
|
$ | 426,918 | $ | 393,333 | $ | 33,585 | 9 | % | ||||||||
|
Average
Balances
|
||||||||||||||||
|
Twelve
Months Ended December 31,
|
||||||||||||||||
|
Loans
and Leases
|
$ | 3,567,299 | $ | 3,425,318 | $ | 141,981 | 4 | % | ||||||||
|
Securities
Available For Sale (excluding unrealized gains or losses)
|
$ | 1,113,810 | $ | 1,134,837 | $ | (21,027 | ) | -2 | % | |||||||
|
Securities
Held To Maturity
|
$ | 149,775 | $ | 144,518 | $ | 5,257 | 4 | % | ||||||||
|
Regulatory
Equity Investment
|
$ | 39,735 | $ | 34,022 | $ | 5,713 | 17 | % | ||||||||
|
Short-Term
Interest Bearing Accounts
|
$ | 9,190 | $ | 8,395 | $ | 795 | 9 | % | ||||||||
|
Total
Earning Assets
|
$ | 4,879,809 | $ | 4,747,090 | $ | 132,719 | 3 | % | ||||||||
|
Total
Assets
|
$ | 5,264,655 | $ | 5,109,587 | $ | 155,068 | 3 | % | ||||||||
|
Interest
Bearing Deposits
|
$ | 3,239,029 | $ | 3,273,332 | $ | (34,303 | ) | -1 | % | |||||||
|
Non-Interest
Bearing Deposits
|
$ | 682,656 | $ | 639,423 | $ | 43,233 | 7 | % | ||||||||
|
Short-Term
Borrowings
|
$ | 223,830 | $ | 280,162 | $ | (56,332 | ) | -20 | % | |||||||
|
Long-Term
Borrowings
|
$ | 638,882 | $ | 459,439 | $ | 179,443 | 39 | % | ||||||||
|
Total
Interest Bearing Liabilities
|
$ | 4,101,741 | $ | 4,012,933 | $ | 88,808 | 2 | % | ||||||||
|
Stockholders’
Equity
|
$ | 412,102 | $ | 399,299 | $ | 12,803 | 3 | % | ||||||||
Page 9
of 11
|
NBT
Bancorp Inc. and Subsidiaries
|
December
31,
|
December
31,
|
||||||
|
Consolidated
Balance Sheets (unaudited)
|
2008
|
2007
|
||||||
|
(in
thousands)
|
||||||||
|
ASSETS
|
||||||||
|
Cash
and due from banks
|
$ | 107,409 | $ | 155,495 | ||||
|
Short
term interest bearing accounts
|
2,987 | 7,451 | ||||||
|
Securities
available for sale, at fair value
|
1,119,665 | 1,132,230 | ||||||
|
Securities
held to maturity (fair value of $141,308 and $149,519 at December 31, 2008
and December 31, 2007, respectively)
|
140,209 | 149,111 | ||||||
|
Federal
Reserve and Federal Home Loan Bank stock
|
39,045 | 38,102 | ||||||
|
Loans
and leases
|
3,651,911 | 3,455,851 | ||||||
|
Less
allowance for loan and lease losses
|
58,564 | 54,183 | ||||||
|
Net
loans and leases
|
3,593,347 | 3,401,668 | ||||||
|
Premises
and equipment, net
|
65,241 | 64,042 | ||||||
|
Goodwill
|
114,838 | 103,398 | ||||||
|
Intangible
assets, net
|
23,367 | 10,173 | ||||||
|
Bank
owned life insurance
|
46,030 | 43,614 | ||||||
|
Other
assets
|
83,950 | 96,492 | ||||||
|
TOTAL
ASSETS
|
$ | 5,336,088 | $ | 5,201,776 | ||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
Deposits:
|
||||||||
|
Demand
(noninterest bearing)
|
$ | 685,495 | $ | 666,698 | ||||
|
Savings,
NOW, and money market
|
1,885,551 | 1,614,289 | ||||||
|
Time
|
1,352,212 | 1,591,106 | ||||||
|
Total
deposits
|
3,923,258 | 3,872,093 | ||||||
|
Short-term
borrowings
|
206,492 | 368,467 | ||||||
|
Long-term
debt
|
632,209 | 424,887 | ||||||
|
Trust
preferred debentures
|
75,422 | 75,422 | ||||||
|
Other
liabilities
|
66,862 | 63,607 | ||||||
|
Total
liabilities
|
4,904,243 | 4,804,476 | ||||||
|
Total
stockholders' equity
|
431,845 | 397,300 | ||||||
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 5,336,088 | $ | 5,201,776 | ||||
Page 10
of 11
|
Three
months ended
|
Twelve
months ended
|
|||||||||||||||
|
NBT
Bancorp Inc. and Subsidiaries
|
December
31,
|
December
31,
|
||||||||||||||
|
Consolidated
Statements of Income (unaudited)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
|
(in
thousands, except per share data)
|
||||||||||||||||
|
Interest,
fee and dividend income:
|
||||||||||||||||
|
Loans
and leases
|
$ | 58,164 | $ | 60,817 | $ | 232,155 | $ | 242,497 | ||||||||
|
Securities
available for sale
|
13,434 | 13,971 | 54,048 | 54,847 | ||||||||||||
|
Securities
held to maturity
|
1,253 | 1,458 | 5,588 | 5,898 | ||||||||||||
|
Other
|
436 | 736 | 2,623 | 2,875 | ||||||||||||
|
Total
interest, fee and dividend income
|
73,287 | 76,982 | 294,414 | 306,117 | ||||||||||||
|
Interest
expense:
|
||||||||||||||||
|
Deposits
|
16,371 | 26,578 | 76,132 | 106,574 | ||||||||||||
|
Short-term
borrowings
|
382 | 3,048 | 4,847 | 12,943 | ||||||||||||
|
Long-term
debt
|
6,401 | 4,233 | 22,642 | 16,486 | ||||||||||||
|
Trust
preferred debentures
|
1,200 | 1,270 | 4,747 | 5,087 | ||||||||||||
|
Total
interest expense
|
24,354 | 35,129 | 108,368 | 141,090 | ||||||||||||
|
Net
interest income
|
48,933 | 41,853 | 186,046 | 165,027 | ||||||||||||
|
Provision
for loan and lease losses
|
7,721 | 13,440 | 27,181 | 30,094 | ||||||||||||
|
Net
interest income after provision for loan and lease losses
|
41,212 | 28,413 | 158,865 | 134,933 | ||||||||||||
|
Noninterest
income:
|
||||||||||||||||
|
Trust
|
1,685 | 1,584 | 7,278 | 6,514 | ||||||||||||
|
Service
charges on deposit accounts
|
7,266 | 7,142 | 28,143 | 22,742 | ||||||||||||
|
ATM
and debit card fees
|
2,176 | 2,089 | 8,832 | 8,185 | ||||||||||||
|
Broker/dealer
and insurance revenue
|
3,915 | 1,052 | 8,726 | 4,255 | ||||||||||||
|
Net
securities (losses) gains
|
(8 | ) | 613 | 1,535 | 2,113 | |||||||||||
|
Bank
owned life insurance income
|
993 | 480 | 2,416 | 1,831 | ||||||||||||
|
Retirement
plan administration fees
|
1,468 | 1,557 | 6,308 | 6,336 | ||||||||||||
|
Other
|
2,735 | 1,973 | 8,468 | 7,723 | ||||||||||||
|
Total
noninterest income
|
20,230 | 16,490 | 71,706 | 59,699 | ||||||||||||
|
Noninterest
expense:
|
||||||||||||||||
|
Salaries
and employee benefits
|
20,633 | 14,654 | 71,159 | 59,516 | ||||||||||||
|
Office
supplies and postage
|
1,354 | 1,136 | 5,346 | 5,120 | ||||||||||||
|
Occupancy
|
3,385 | 2,948 | 13,781 | 11,630 | ||||||||||||
|
Equipment
|
1,944 | 1,855 | 7,539 | 7,422 | ||||||||||||
|
Professional
fees and outside services
|
2,651 | 3,295 | 10,476 | 9,135 | ||||||||||||
|
Data
processing and communications
|
3,254 | 2,899 | 12,694 | 11,400 | ||||||||||||
|
Amortization
of intangible assets
|
874 | 413 | 2,105 | 1,645 | ||||||||||||
|
Loan
collection and other real estate owned
|
692 | 597 | 2,494 | 1,633 | ||||||||||||
|
Impairment
on lease residual assets
|
- | - | 2,000 | - | ||||||||||||
|
Other
operating
|
5,511 | 4,607 | 19,219 | 15,016 | ||||||||||||
|
Total
noninterest expense
|
40,298 | 32,404 | 146,813 | 122,517 | ||||||||||||
|
Income
before income taxes
|
21,144 | 12,499 | 83,758 | 72,115 | ||||||||||||
|
Income
taxes
|
6,247 | 3,514 | 25,405 | 21,787 | ||||||||||||
|
Net
income
|
$ | 14,897 | $ | 8,985 | $ | 58,353 | $ | 50,328 | ||||||||
|
Earnings
Per Share:
|
||||||||||||||||
|
Basic
|
$ | 0.46 | $ | 0.28 | $ | 1.81 | $ | 1.52 | ||||||||
|
Diluted
|
$ | 0.45 | $ | 0.28 | $ | 1.80 | $ | 1.51 | ||||||||
Page 11
of 11
|
NBT
Bancorp Inc. and Subsidiaries
|
4Q
|
3Q
|
2Q
|
1Q
|
4Q
|
|||||||||||||||
|
Quarterly
Consolidated Statements of Income (unaudited)
|
2008
|
2008
|
2008
|
2008
|
2007
|
|||||||||||||||
|
(in
thousands, except per share data)
|
||||||||||||||||||||
|
Interest,
fee and dividend income:
|
||||||||||||||||||||
|
Loans
and leases
|
$ | 58,164 | $ | 58,154 | $ | 57,220 | $ | 58,617 | $ | 60,817 | ||||||||||
|
Securities
available for sale
|
13,434 | 13,451 | 13,417 | 13,746 | 13,971 | |||||||||||||||
|
Securities
held to maturity
|
1,253 | 1,343 | 1,478 | 1,514 | 1,458 | |||||||||||||||
|
Other
|
436 | 673 | 739 | 775 | 736 | |||||||||||||||
|
Total
interest, fee and dividend income
|
73,287 | 73,621 | 72,854 | 74,652 | 76,982 | |||||||||||||||
|
Interest
expense:
|
||||||||||||||||||||
|
Deposits
|
16,371 | 18,351 | 18,712 | 22,698 | 26,578 | |||||||||||||||
|
Short-term
borrowings
|
382 | 763 | 1,362 | 2,340 | 3,048 | |||||||||||||||
|
Long-term
debt
|
6,401 | 6,310 | 5,629 | 4,302 | 4,233 | |||||||||||||||
|
Trust
preferred debentures
|
1,200 | 1,154 | 1,146 | 1,247 | 1,270 | |||||||||||||||
|
Total
interest expense
|
24,354 | 26,578 | 26,849 | 30,587 | 35,129 | |||||||||||||||
|
Net
interest income
|
48,933 | 47,043 | 46,005 | 44,065 | 41,853 | |||||||||||||||
|
Provision
for loan and lease losses
|
7,721 | 7,179 | 5,803 | 6,478 | 13,440 | |||||||||||||||
|
Net
interest income after provision for loan and lease losses
|
41,212 | 39,864 | 40,202 | 37,587 | 28,413 | |||||||||||||||
|
Noninterest
income:
|
||||||||||||||||||||
|
Trust
|
1,685 | 1,720 | 2,099 | 1,774 | 1,584 | |||||||||||||||
|
Service
charges on deposit accounts
|
7,266 | 7,414 | 6,938 | 6,525 | 7,142 | |||||||||||||||
|
ATM
and debit card fees
|
2,176 | 2,334 | 2,225 | 2,097 | 2,089 | |||||||||||||||
|
Broker/dealer
and insurance fees
|
3,915 | 2,338 | 1,366 | 1,107 | 1,052 | |||||||||||||||
|
Net
securities (losses) gains
|
(8 | ) | 1,510 | 18 | 15 | 613 | ||||||||||||||
|
Bank
owned life insurance income
|
993 | 491 | 480 | 452 | 480 | |||||||||||||||
|
Retirement
plan administration fees
|
1,468 | 1,461 | 1,671 | 1,708 | 1,557 | |||||||||||||||
|
Other
|
2,735 | 1,694 | 1,622 | 2,417 | 1,973 | |||||||||||||||
|
Total
noninterest income
|
20,230 | 18,962 | 16,419 | 16,095 | 16,490 | |||||||||||||||
|
Noninterest
expense:
|
||||||||||||||||||||
|
Salaries
and employee benefits
|
20,633 | 16,850 | 16,906 | 16,770 | 14,654 | |||||||||||||||
|
Office
supplies and postage
|
1,354 | 1,322 | 1,331 | 1,339 | 1,136 | |||||||||||||||
|
Occupancy
|
3,385 | 3,359 | 3,427 | 3,610 | 2,948 | |||||||||||||||
|
Equipment
|
1,944 | 1,908 | 1,862 | 1,825 | 1,855 | |||||||||||||||
|
Professional
fees and outside services
|
2,651 | 2,205 | 2,521 | 3,099 | 3,295 | |||||||||||||||
|
Data
processing and communications
|
3,254 | 3,155 | 3,115 | 3,170 | 2,899 | |||||||||||||||
|
Amortization
of intangible assets
|
874 | 462 | 378 | 391 | 413 | |||||||||||||||
|
Loan
collection and other real estate owned
|
692 | 505 | 730 | 567 | 597 | |||||||||||||||
|
Impairment
on lease residual assets
|
- | 2,000 | - | - | - | |||||||||||||||
|
Other
operating
|
5,511 | 5,292 | 5,153 | 3,263 | 4,607 | |||||||||||||||
|
Total
noninterest expense
|
40,298 | 37,058 | 35,423 | 34,034 | 32,404 | |||||||||||||||
|
Income
before income taxes
|
21,144 | 21,768 | 21,198 | 19,648 | 12,499 | |||||||||||||||
|
Income
taxes
|
6,247 | 6,685 | 6,541 | 5,932 | 3,514 | |||||||||||||||
|
Net
income
|
$ | 14,897 | $ | 15,083 | $ | 14,657 | $ | 13,716 | $ | 8,985 | ||||||||||
|
Earnings
per share:
|
||||||||||||||||||||
|
Basic
|
$ | 0.46 | $ | 0.47 | $ | 0.46 | $ | 0.43 | $ | 0.28 | ||||||||||
|
Diluted
|
$ | 0.45 | $ | 0.46 | $ | 0.45 | $ | 0.43 | $ | 0.28 | ||||||||||