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 28, 2013
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:
| ¨ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | 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 28, 2013, NBT Bancorp Inc. issued a press release describing its results of operations for the quarter and year ended December 31, 2012. That press release is attached as Exhibit 99.1 hereto.
ITEM 8.01 Other Events
On January 28, 2013, NBT Bancorp Inc. issued a press release describing its results of operations for the quarter and year ended December 31, 2012. That press release is attached as Exhibit 99.1 hereto and incorporated by reference herein.
ITEM 9.01 Financial Statements and Exhibits
(d) The following is being furnished herewith:
| Exhibit No. | Exhibit Description | |
| 99.1 | Press release of NBT Bancorp Inc. dated January 28, 2013 | |
SIGNATURES
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.
| NBT BANCORP INC. |
| (Registrant) |
| /s/ Michael J. Chewens |
| Michael J. Chewens |
| Senior Executive Vice President and Chief Financial Officer |
Date: January 28, 2013
EXHIBIT LIST
| Exhibit No. |
Exhibit Description | |
| 99.1 | Press release of NBT Bancorp Inc. dated January 28, 2013 | |
Exhibit 99.1
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 2012 DILUTED EARNINGS PER SHARE OF $1.62 AND
ORGANIC LOAN GROWTH OF 6.8%; DECLARES CASH DIVIDEND
NORWICH, NY (January 28, 2013) – NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today net income for the year ended December 31, 2012 was $54.6 million, down $3.3 million, or 5.8%, from the year ended December 31, 2011. Net income per diluted share for the year ended December 31, 2012 was $1.62, down from $1.71 per diluted share for the year ended December 31, 2011. Net interest margin (on a fully taxable equivalent or FTE basis) was 3.86% for the year ended December 31, 2012, down 23 basis points from 4.09% for the year ended December 31, 2011. Return on average assets and return on average equity were 0.93% and 9.72%, respectively, for the year ended December 31, 2012, compared with 1.06% and 10.73%, respectively, for the year ended December 31, 2011.
Net income for the three months ended December 31, 2012 was $13.1 million, down $0.6 million, or 4.4%, from the three months ended December 31, 2011. Net income per diluted share for the three months ended December 31, 2012 was $0.39 per share, down from $0.41 per diluted share for the three months ended December 31, 2011. FTE net interest margin was 3.83% for the three months ended December 31, 2012, down 15 basis points from 3.98% for the three months ended December 31, 2011. Annualized return on average assets and return on average equity were 0.86% and 9.01%, respectively, for the three months ended December 31, 2012, compared with 0.97% and 10.09%, respectively, for the three months ended December 31, 2011.
Selected highlights for 2012 include:
| • | Significant strategic expansion during 2012: |
| • | Announced the planned acquisition of Alliance Financial Corporation, a $1.4 billion financial holding company headquartered in Syracuse, N.Y., expected to close in early 2013. |
| • | Acquired and successfully integrated Hampshire First Bank in the second quarter of 2012; now operating 5 branches in southern New Hampshire. |
| • | Acquired three branches in Greene County, New York, which closed on January 21, 2012. |
| • | Net interest margin for 2012 declined 23 basis points as a result of the continued low rate environment on loans and investments. |
| • | 2012 organic loan growth of 6.8%, offsetting aforementioned margin compression, driven by: |
| • | Consumer loan growth of 10.7% |
| • | Commercial loan growth of 8.7% |
| • | Asset quality indicators showed improvement from last year: |
| • | Nonperforming loans to total loans was 0.98%, down from 1.09% for last year |
| • | Past due loans to total loans was 0.71%, down from 0.89% for last year |
| • | Net charge-off ratio was 0.55%, down from 0.56% for last year. |
“Throughout 2012, we worked against a challenging economic and regulatory environment while maintaining our focus on banking fundamentals and enhancing the long-term value of our company,” said NBT President and CEO Martin Dietrich. “We are pleased with our results, especially our success in the areas of organic loan growth and integration of seven former Legacy Banks branches and our Hampshire First Bank acquisition. We expect to complete our acquisition of Alliance Financial Corporation and its 26-branch network in central New York in early 2013. This acquisition is another important step in further building our franchise in key markets where we identify strategic opportunities.”
Loan Quality and Provision for Loan Losses
The Company recorded a provision for loan losses of $20.3 million during the year ended December 31, 2012, compared with $20.7 million for the year ended December 31, 2011. Net charge-offs were $22.3 million for the year ended December 31, 2012, up from $20.6 million for the same period in 2011, due primarily to the charge-off of two large commercial loans during the fourth quarter of 2012. Net charge-offs to average loans for the year ended December 31, 2012 was 0.55%, compared to 0.56% for the year ended December 31, 2011.
The Company recorded a provision for loan losses of $6.9 million during the three months ended December 31, 2012, compared with $5.6 million for the three months ended December 31, 2011. Net charge-offs were $8.3 million for the three months ended December 31, 2012 and $5.6 million for the three months ended December 31, 2011.
Past due loans as a percentage of total loans was 0.71% at December 31, 2012, down from 0.89% at December 31, 2011. Nonperforming loans to total loans improved to 0.98% at December 31, 2012 as compared with 1.09% at December 31, 2011.
The allowance for loan losses totaled $69.3 million at December 31, 2012, compared to $71.3 million at December 31, 2011. The allowance for loan losses as a percentage of loans was 1.62% at December 31, 2012, compared to 1.66% at September 30, 2012, 1.70% at June 30, 2012, 1.87% at March 31, 2012, and 1.88% at December 31, 2011. The reduction of the allowance throughout the year was due primarily to the aforementioned improvement in key asset quality indicators, as well as improvement in certain economic indicators. In addition, the reduction in the second quarter of 2012 was due in part to acquired loans that were recorded at fair value at acquisition. As acquired loans do not have a related allowance recorded, the acquisition resulted in a decrease of 10 basis points in the allowance for loan losses as a percentage of total loans as of December 31, 2012.
Net Interest Income
Net interest income was up to $204.2 million for the year ended December 31, 2012, compared with $200.3 million for the year ended December 31, 2011. The Company’s FTE net interest margin was 3.86% for the year ended December 31, 2012, down from 4.09% for the year ended December 31, 2011. Average earning assets for the year ended December 31, 2012 was $5.4 billion, compared to $5.0 billion for the same period of 2011. This increase offset the decline in rates, resulting in a $3.9 million increase in net interest income for year ended December 31, 2012.
While the rate paid on interest bearing liabilities decreased 17 basis points, the yield on interest earning assets declined 37 basis points compared to the same period for 2011, resulting in margin compression for the year ended December 31, 2012. The yield on securities available for sale was 2.45% for the year ended December 31, 2012, compared with 2.97% for the year ended December 31, 2011. This decrease was due primarily to the reinvestment of cash flows from maturing securities and cash received from branch acquisitions in 2011 and the first quarter of 2012 into lower yielding securities in the current rate environment. The average balance of securities available for sale for the year ended December 31, 2012 was $1.2 billion, up approximately $54.8 million, or 4.9%, from the year ended December 31, 2011. This increase was due primarily to reinvestment of cash flows from held to maturity securities into available for sale securities, and investment of liquidity from branch acquisition activity and deposit growth. The yield on loans was 5.17% for the year ended December 31, 2012, compared with 5.58% for the year ended December 31, 2011. The average balance of loans for the year ended December 31, 2012 was $4.1 billion, up approximately $375.5 million ($124.3 million from acquisitions), or 10.2%, from the year ended December 31, 2011. The reduction in yields on earning assets was partially offset by a reduction in rates paid on interest bearing liabilities. The rate on time deposits was 1.45% for the year ended December 31, 2012, compared with 1.80% for the year ended December 31, 2011. The rate on money market deposit accounts was 0.18% for the year ended December 31, 2012, compared with 0.34% for the year ended December 31, 2011.
Net interest income was up to $52.5 million for the three months ended December 31, 2012, compared with $50.5 million for the three months ended December 31, 2011. The Company’s FTE net interest margin was 3.83% for the three months ended December 31, 2012, down from 3.98% for the three months ended December 31, 2011. The increase in average earning assets for the three months ended December 31, 2012 as compared to the same period of 2011 offset the decline in rates, resulting in the increase in net interest income over the same period last year.
While the rate paid on interest bearing liabilities decreased 15 basis points, the yield on interest earning assets declined 28 basis points, resulting in margin compression for the three months ended December 31, 2012, compared to the same period for 2011. The yield on securities available for sale was 2.27% for the three months ended December 31, 2012, as compared with 2.70% for the three months ended December 31, 2011. This decrease was due primarily to the reinvestment of cash flows from maturing securities and cash received from previous branch acquisitions into lower yielding securities in the current rate environment. The average balance of securities available for sale for the three months ended December 31, 2012 was $1.1 billion, down approximately $51.9 million, or 4.4%, from the three months ended December 31, 2011, as cash flows from maturing available for sale securities was used to support the aforementioned loan growth. The yield on loans was 5.05% for the three months ended December 31, 2012, compared with 5.45% for the three months ended December 31, 2011. The average balance of loans for the three months ended December 31, 2012 was $4.3 billion, up approximately $505.8 million, or 13.5%, from the three months ended December 31, 2011. The reduction in yields on earning assets was partially offset by a reduction in rates paid on interest bearing liabilities. The rate on time deposits was 1.31% for the three months ended December 31, 2012, compared with 1.72% for the three months ended December 31, 2011. The rate on money market deposit accounts was 0.14% for the three months ended December 31, 2012, compared with 0.24% for the three months ended December 31, 2011.
Noninterest Income
Noninterest income for the year ended December 31, 2012 was $87.3 million, up 8.7% or $7.0 million, compared with $80.3 million for the same period in 2011. Insurance and other financial services revenue increased approximately $1.5 million for the year ended December 31, 2012, compared to the year ended December 31, 2011. This increase was due primarily to the acquisition of an
insurance agency during the second quarter of 2011 as well as organic growth in commercial product lines. Retirement plan administration fees increased approximately $1.2 million for the year ended December 31, 2012, compared to the year ended December 31, 2011, due primarily to an increase in customer base. ATM and debit card fees increased approximately $0.7 million for the year ended December 31, 2012, compared to the year ended December 31, 2011, due primarily to an increase in card usage and customer base. Other noninterest income increased approximately $6.1 million for the year ended December 31, 2012 as compared to December 31, 2011. This increase was due in part to a $1.1 million payoff gain on a purchased commercial real estate loan. In addition, the Company recognized nonrecurring items totaling approximately $1.4 million during 2012 including a prepayment penalty fee related to a previously disclosed loss of a retirement plan client and flood related recoveries. Further, mortgage banking revenue increased approximately $2.6 million for the year ended December 31, 2012 as compared to the same period in 2011 as the Company sold certain residential mortgages as market conditions warranted. The Company sold approximately $64.6 million residential mortgages during 2012, as compared to approximately $17.5 million sales during 2011, while also experiencing more favorable gains during 2012. The Company also realized net securities gains of approximately $0.6 million during the year ended December 31, 2012, as compared to $0.2 million for the same period in 2011. These increases were partially offset by a decrease in service charges on deposit accounts of approximately $3.2 million, or 15.1%, for the year ended December 31, 2012, compared with the same period in 2011 primarily due to a decrease in overdraft fee income.
Noninterest income for the three months ended December 31, 2012 was $22.0 million, up 9.1% or $1.8 million, compared with $20.1 million for the same period in 2011. Retirement plan administration fees increased approximately $0.5 million for the three months ended December 31, 2012, compared to the three months ended December 31, 2011, due primarily to an increase in customer base. Insurance and other financial services revenue increased approximately $0.4 million for the three months ended December 31, 2012, compared to the three months ended December 31, 2011. This increase was due primarily to organic growth in commercial product lines. Other noninterest income increased approximately $1.5 million for the three months ended December 31, 2012 as compared to the three months ended December 31, 2011. This increase was due primarily to an increase in mortgage banking income of approximately $0.6 million, resulting from an increase in mortgage sales activity and more favorable gains during the three months ended December 31, 2012 as compared with the three months ended December 31, 2011. The Company also experienced an increase in loan fee income during the fourth quarter of 2012 which contributed to the increase in other noninterest income. These increases were partially offset by a decrease in service charges on deposit accounts of approximately $0.7 million, or 13.3%, for the three months ended December 31, 2012, compared with the same period in 2011 primarily due to the aforementioned decrease in overdraft fee income.
Noninterest Expense and Income Tax Expense
Noninterest expense for the year ended December 31, 2012 was $193.9 million, up $13.2 million or 7.3%, for the same period in 2011. Salaries and employee benefits increased $5.6 million, or 5.6%, for the year ended December 31, 2012, compared with the same period in 2011. This increase was due primarily to increases in full-time-equivalent employees from acquisitions, merit increases, and increased pension expense. Professional fees and outside services increased $1.5 million, or 17.3%, for the year ended December 31, 2012 as compared to 2011. Data processing, communications, and occupancy expenses increased approximately $2.2 million collectively, or 7.7%, for the year ended December 31, 2012 as compared to 2011, due primarily to increased activity from recent expansion into new markets. The Company incurred approximately $2.6 million in merger related expenses for the year ended December 31, 2012, as compared to $0.8 million for the same period in 2011. These increases were partially offset by a decrease in Federal Deposit Insurance Corporation (“FDIC”) expenses of approximately $0.4 million for the year ended December 31, 2012 as
compared to the year ended December 31, 2011. This decrease was due to the FDIC redefining the deposit insurance assessment base effective the second quarter of 2011. In addition, advertising expenses were down approximately $0.6 in 2012 as compared with 2011 due in large part to expense reduction initiatives. Income tax expense for the year ended December 31, 2012 was $22.8 million, up from $21.3 million for the same period in 2011. The effective tax rate was 29.5% for the year ended December 31, 2012, compared to 26.9% for the same period in 2011. The relatively low effective tax rate in 2011 was driven primarily by a reduction in tax expense as a result of the settlement of a New York State tax audit during the fourth quarter of 2011.
Noninterest expense for the three months ended December 31, 2012 was $48.6 million, up $1.2 million or 2.5%, for the same period in 2011. Salaries and employee benefits increased $1.4 million, or 5.4%, for the three months ended December 31, 2012, compared with the same period in 2011. This increase was due primarily to increases in full-time-equivalent employees from acquisitions, merit increases, and increased pension expense. Occupancy expenses for the three months ended December 31, 2012 increased $0.3 million, or 7.5%, over the same period in 2011 primarily due to aforementioned expansion. These increases were partially offset by a decrease in advertising expenses of approximately $0.6 million for the three months ended December 31, 2012 as compared to the same period in 2011, due primarily to expense reduction initiatives. In addition, other operating expenses decreased $0.4 million for the three months ended December 31, 2012 as compared to the same period in 2011, due to various cost cutting initiatives. Income tax expense for the three month period ended December 31, 2012 was $5.8 million, up from $3.9 million for the same period in 2011. The effective tax rate was 30.5% for the three months ended December 31, 2012, compared to 22.22% for the same period in 2011. The relatively low effective tax rate in 2011 was driven primarily by the aforementioned tax audit settlement.
Balance Sheet
Total assets were $6.0 billion at December 31, 2012, up $443.9 million or 7.9% from December 31, 2011. Loans were $4.3 billion at December 31, 2012, up $477.4 million from December 31, 2011. Total deposits were $4.8 billion at December 31, 2012, up $417.2 million from December 31, 2011. Stockholders’ equity was $582.3 million, representing a total equity-to-total assets ratio of 9.64% at December 31, 2012, compared with $538.1 million or a total equity-to-total assets ratio of 9.61% at December 31, 2011.
Stock Repurchase Program
Under previously disclosed stock repurchase plans, the Company purchased 769,568 shares of its common stock during the year ended December 31, 2012, for a total of $15.5 million at an average price of $20.13 per share. At December 31, 2012, there were 748,013 shares available for repurchase under a previously disclosed repurchase plan, which expires on December 31, 2013.
Dividend
The NBT Board of Directors declared a 2013 first-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on March 15, 2013 to shareholders of record as of March 1, 2013.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $6.0 billion at December 31, 2012. The company primarily operates through NBT Bank, N.A., a full-service community bank with three divisions,
and through two financial services companies. NBT Bank, N.A. has 135 locations, including 95 NBT Bank offices in upstate New York, northwestern Vermont and western Massachusetts, 35 Pennstar Bank offices in northeastern Pennsylvania, and 5 Hampshire First Bank offices in southern New Hampshire. 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.hampshirefirst.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; (7) adverse changes may occur in the securities markets or with respect to inflation; (8) disruption of NBT’s business as a result of the announcement and pendency of the merger with Alliance Financial Corporation; (9) the risk that NBT’s and Alliance’s business may not be combined successfully, or such combination may take longer, cost more or otherwise be more difficult than expected; (10) operating costs, customer losses and business disruption following the merger, including adverse effects of relationships with employees, may be greater than expected; and (11) the risk that the anticipated benefits, costs savings and any other savings from the merger may not be fully realized or may take longer than expected to realize. Forward-looking statements speak only as of the date they are made. Except as required by law, NBT does not update forward-looking statements to reflect subsequent circumstances or events.
Page 7 of 13
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
| 2012 | 2011 | Net Change |
Percent Change |
|||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||
| Three Months Ended December 31, |
||||||||||||||||
| Net Income |
$ | 13,116 | $ | 13,722 | ($ | 606 | ) | -4 | % | |||||||
| Diluted Earnings Per Share |
$ | 0.39 | $ | 0.41 | ($ | 0.02 | ) | -5 | % | |||||||
| Weighted Average Diluted |
||||||||||||||||
| Common Shares Outstanding |
33,987,465 | 33,238,658 | 748,807 | 2 | % | |||||||||||
| Return on Average Assets (1) |
0.86 | % | 0.97 | % | -11 bps | -11 | % | |||||||||
| Return on Average Equity (1) |
9.01 | % | 10.09 | % | -108 bps | -11 | % | |||||||||
| Return on Average Tangible Common Equity (1)(3) |
13.25 | % | 14.00 | % | -75 bps | -5 | % | |||||||||
| Net Interest Margin (2) |
3.83 | % | 3.98 | % | -15 bps | -4 | % | |||||||||
| Years Ended December 31, |
||||||||||||||||
| Net Income |
$ | 54,558 | $ | 57,901 | ($ | 3,343 | ) | -6 | % | |||||||
| Diluted Earnings Per Share |
$ | 1.62 | $ | 1.71 | ($ | 0.09 | ) | -5 | % | |||||||
| Weighted Average Diluted |
||||||||||||||||
| Common Shares Outstanding |
33,718,718 | 33,923,645 | (204,927 | ) | -1 | % | ||||||||||
| Return on Average Assets |
0.93 | % | 1.06 | % | -13 bps | -12 | % | |||||||||
| Return on Average Equity |
9.72 | % | 10.73 | % | -101 bps | -9 | % | |||||||||
| Return on Average Tangible Common Equity (3) |
14.14 | % | 14.75 | % | -61 bps | -4 | % | |||||||||
| Net Interest Margin (2) |
3.86 | % | 4.09 | % | -23 bps | -6 | % | |||||||||
| December 31, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Asset Quality |
||||||||
| Nonaccrual Loans |
$ | 39,676 | $ | 38,290 | ||||
| 90 Days Past Due and Still Accruing |
$ | 2,448 | $ | 3,190 | ||||
| Total Nonperforming Loans |
$ | 42,124 | $ | 41,480 | ||||
| Other Real Estate Owned |
$ | 2,276 | $ | 2,160 | ||||
| Total Nonperforming Assets |
$ | 44,400 | $ | 43,640 | ||||
| Allowance for Loan Losses |
$ | 69,334 | $ | 71,334 | ||||
| Allowance for Loan Losses to Total Loans |
1.62 | % | 1.88 | % | ||||
| Total Nonperforming Loans to Total Loans |
0.98 | % | 1.09 | % | ||||
| Total Nonperforming Assets to Total Assets |
0.73 | % | 0.78 | % | ||||
| Past Due Loans to Total Loans |
0.71 | % | 0.89 | % | ||||
| Allowance for Loan Losses to Total Nonperforming Loans |
164.60 | % | 171.97 | % | ||||
| Net Charge-Offs to Average Loans |
0.55 | % | 0.56 | % | ||||
| Capital |
||||||||
| Equity to Assets |
9.64 | % | 9.61 | % | ||||
| Book Value Per Share |
$ | 17.24 | $ | 16.23 | ||||
| Tangible Book Value Per Share |
$ | 12.23 | $ | 11.70 | ||||
| Tier 1 Leverage Ratio |
8.54 | % | 8.74 | % | ||||
| Tier 1 Capital Ratio |
10.82 | % | 11.56 | % | ||||
| Total Risk-Based Capital Ratio |
12.07 | % | 12.81 | % | ||||
| 2012 | 2011 | |||||||||||||||
| High | Low | High | Low | |||||||||||||
| Quarterly Common Stock Price |
||||||||||||||||
| Quarter End |
||||||||||||||||
| March 31 |
$ | 24.10 | $ | 20.75 | $ | 24.98 | $ | 21.55 | ||||||||
| June 30 |
$ | 22.50 | $ | 19.19 | $ | 23.32 | $ | 20.62 | ||||||||
| September 30 |
$ | 22.89 | $ | 19.91 | $ | 23.25 | $ | 17.05 | ||||||||
| December 31 |
$ | 22.45 | $ | 18.92 | $ | 22.63 | $ | 17.47 | ||||||||
| (1) | Annualized |
| (2) | Calculated on a FTE basis |
| (3) | Excludes amortization of intangible assets (net of tax) from net income and intangible assets from total equity |
Page 8 of 13
| NBT Bancorp Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) |
December 31, 2012 |
December 31, 2011 |
||||||
| (in thousands) | ||||||||
| ASSETS |
||||||||
| Cash and due from banks |
$ | 157,094 | $ | 128,517 | ||||
| Short term interest bearing accounts |
6,574 | 864 | ||||||
| Securities available for sale, at fair value |
1,147,999 | 1,244,619 | ||||||
| Securities held to maturity (fair value of $61,535 and $72,198 at December 30, 2012 and 2011, respectively) |
60,563 | 70,811 | ||||||
| Trading securities |
3,918 | 3,062 | ||||||
| Federal Reserve and Federal Home Loan Bank stock |
29,920 | 27,020 | ||||||
| Loans |
4,277,616 | 3,800,203 | ||||||
| Less allowance for loan losses |
69,334 | 71,334 | ||||||
|
|
|
|
|
|||||
| Net loans |
4,208,282 | 3,728,869 | ||||||
| Premises and equipment, net |
77,875 | 74,541 | ||||||
| Goodwill |
152,373 | 132,029 | ||||||
| Intangible assets, net |
16,962 | 18,194 | ||||||
| Bank owned life insurance |
80,702 | 77,626 | ||||||
| Other assets |
99,997 | 92,254 | ||||||
|
|
|
|
|
|||||
| TOTAL ASSETS |
$ | 6,042,259 | $ | 5,598,406 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| Deposits: |
||||||||
| Demand (noninterest bearing) |
$ | 1,242,712 | $ | 1,052,906 | ||||
| Savings, NOW, and money market |
2,558,376 | 2,381,116 | ||||||
| Time |
983,261 | 933,127 | ||||||
|
|
|
|
|
|||||
| Total deposits |
4,784,349 | 4,367,149 | ||||||
| Short-term borrowings |
162,941 | 181,592 | ||||||
| Long-term debt |
367,492 | 370,344 | ||||||
| Trust preferred debentures |
75,422 | 75,422 | ||||||
| Other liabilities |
69,782 | 65,789 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
5,459,986 | 5,060,296 | ||||||
| Total stockholders’ equity |
582,273 | 538,110 | ||||||
|
|
|
|
|
|||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ | 6,042,259 | $ | 5,598,406 | ||||
|
|
|
|
|
|||||
Page 9 of 13
| Three Months Ended | Years Ended | |||||||||||||||
| NBT Bancorp Inc. and Subsidiaries | December 31, | December 31, | ||||||||||||||
| Consolidated Statements of Income (unaudited) |
2012 | 2011 | 2012 | 2011 | ||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Interest, fee and dividend income: |
||||||||||||||||
| Loans |
$ | 53,924 | $ | 51,393 | $ | 208,458 | $ | 204,370 | ||||||||
| Securities available for sale |
5,981 | 7,461 | 27,005 | 31,083 | ||||||||||||
| Securities held to maturity |
549 | 661 | 2,378 | 2,886 | ||||||||||||
| Other |
403 | 383 | 1,556 | 1,658 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total interest, fee and dividend income |
60,857 | 59,898 | 239,397 | 239,997 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Interest expense: |
||||||||||||||||
| Deposits |
4,327 | 5,330 | 18,848 | 23,020 | ||||||||||||
| Short-term borrowings |
39 | 39 | 188 | 205 | ||||||||||||
| Long-term debt |
3,627 | 3,621 | 14,428 | 14,404 | ||||||||||||
| Trust preferred debentures |
411 | 409 | 1,730 | 2,092 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total interest expense |
8,404 | 9,399 | 35,194 | 39,721 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net interest income |
52,453 | 50,499 | 204,203 | 200,276 | ||||||||||||
| Provision for loan losses |
6,940 | 5,576 | 20,269 | 20,737 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net interest income after provision for loan losses |
45,513 | 44,923 | 183,934 | 179,539 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Noninterest income: |
||||||||||||||||
| Insurance and other financial services revenue |
5,363 | 4,918 | 22,387 | 20,843 | ||||||||||||
| Service charges on deposit accounts |
4,687 | 5,405 | 18,225 | 21,464 | ||||||||||||
| ATM and debit card fees |
2,955 | 2,911 | 12,358 | 11,642 | ||||||||||||
| Retirement plan administration fees |
2,635 | 2,184 | 10,097 | 8,918 | ||||||||||||
| Trust |
2,489 | 2,480 | 9,172 | 8,864 | ||||||||||||
| Bank owned life insurance income |
849 | 716 | 3,077 | 3,085 | ||||||||||||
| Net securities gains |
21 | 52 | 599 | 150 | ||||||||||||
| Other |
2,963 | 1,464 | 11,412 | 5,345 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total noninterest income |
21,962 | 20,130 | 87,327 | 80,311 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Noninterest expense: |
||||||||||||||||
| Salaries and employee benefits |
26,457 | 25,105 | 104,815 | 99,212 | ||||||||||||
| Occupancy |
4,265 | 3,967 | 17,415 | 16,363 | ||||||||||||
| Data processing and communications |
3,396 | 3,186 | 13,437 | 12,271 | ||||||||||||
| Professional fees and outside services |
2,615 | 2,552 | 10,463 | 8,921 | ||||||||||||
| Equipment |
2,403 | 2,206 | 9,627 | 8,864 | ||||||||||||
| Office supplies and postage |
1,647 | 1,655 | 6,489 | 6,073 | ||||||||||||
| FDIC expenses |
1,020 | 886 | 3,832 | 4,267 | ||||||||||||
| Advertising |
581 | 1,174 | 2,889 | 3,460 | ||||||||||||
| Amortization of intangible assets |
864 | 760 | 3,394 | 3,046 | ||||||||||||
| Loan collection and other real estate owned |
509 | 793 | 2,560 | 2,631 | ||||||||||||
| Merger |
713 | 649 | 2,608 | 804 | ||||||||||||
| Other operating |
4,122 | 4,479 | 16,358 | 14,764 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total noninterest expense |
48,592 | 47,412 | 193,887 | 180,676 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before income taxes |
18,883 | 17,641 | 77,374 | 79,174 | ||||||||||||
| Income taxes |
5,767 | 3,919 | 22,816 | 21,273 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
$ | 13,116 | $ | 13,722 | $ | 54,558 | $ | 57,901 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings Per Share: |
||||||||||||||||
| Basic |
$ | 0.39 | $ | 0.42 | $ | 1.63 | $ | 1.72 | ||||||||
| Diluted |
$ | 0.39 | $ | 0.41 | $ | 1.62 | $ | 1.71 | ||||||||
Page 10 of 13
| NBT Bancorp Inc. and Subsidiaries Quarterly Consolidated Statements of Income (unaudited) |
4Q 2012 |
3Q 2012 |
2Q 2012 |
1Q 2012 |
4Q 2011 |
|||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||
| Interest, fee and dividend income: |
||||||||||||||||||||
| Loans |
$ | 53,924 | $ | 53,817 | $ | 50,509 | $ | 50,208 | $ | 51,393 | ||||||||||
| Securities available for sale |
5,981 | 6,550 | 7,108 | 7,366 | 7,461 | |||||||||||||||
| Securities held to maturity |
549 | 572 | 617 | 640 | 661 | |||||||||||||||
| Other |
403 | 348 | 413 | 392 | 383 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total interest, fee and dividend income |
60,857 | 61,287 | 58,647 | 58,606 | 59,898 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Interest expense: |
||||||||||||||||||||
| Deposits |
4,327 | 4,544 | 4,834 | 5,143 | 5,330 | |||||||||||||||
| Short-term borrowings |
39 | 60 | 48 | 41 | 39 | |||||||||||||||
| Long-term debt |
3,627 | 3,640 | 3,580 | 3,581 | 3,621 | |||||||||||||||
| Trust preferred debentures |
411 | 436 | 434 | 449 | 409 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total interest expense |
8,404 | 8,680 | 8,896 | 9,214 | 9,399 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net interest income |
52,453 | 52,607 | 49,751 | 49,392 | 50,499 | |||||||||||||||
| Provision for loan losses |
6,940 | 4,755 | 4,103 | 4,471 | 5,576 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net interest income after provision for loan losses |
45,513 | 47,852 | 45,648 | 44,921 | 44,923 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Noninterest income: |
||||||||||||||||||||
| Insurance and other financial services revenue |
5,363 | 5,591 | 5,279 | 6,154 | 4,918 | |||||||||||||||
| Service charges on deposit accounts |
4,687 | 4,626 | 4,571 | 4,341 | 5,405 | |||||||||||||||
| ATM and debit card fees |
2,955 | 3,378 | 3,063 | 2,962 | 2,911 | |||||||||||||||
| Retirement plan administration fees |
2,635 | 2,718 | 2,411 | 2,333 | 2,184 | |||||||||||||||
| Trust |
2,489 | 2,242 | 2,312 | 2,129 | 2,480 | |||||||||||||||
| Bank owned life insurance income |
849 | 639 | 618 | 971 | 716 | |||||||||||||||
| Net securities gains |
21 | 26 | 97 | 455 | 52 | |||||||||||||||
| Other |
2,963 | 2,407 | 2,331 | 3,711 | 1,464 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total noninterest income |
21,962 | 21,627 | 20,682 | 23,056 | 20,130 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Noninterest expense: |
||||||||||||||||||||
| Salaries and employee benefits |
26,457 | 26,641 | 24,992 | 26,725 | 25,105 | |||||||||||||||
| Occupancy |
4,265 | 4,437 | 4,222 | 4,491 | 3,967 | |||||||||||||||
| Data processing and communications |
3,396 | 3,352 | 3,431 | 3,258 | 3,186 | |||||||||||||||
| Professional fees and outside services |
2,615 | 2,735 | 2,388 | 2,725 | 2,552 | |||||||||||||||
| Equipment |
2,403 | 2,435 | 2,409 | 2,380 | 2,206 | |||||||||||||||
| Office supplies and postage |
1,647 | 1,597 | 1,574 | 1,671 | 1,655 | |||||||||||||||
| FDIC expenses |
1,020 | 939 | 942 | 931 | 886 | |||||||||||||||
| Advertising |
581 | 701 | 805 | 802 | 1,174 | |||||||||||||||
| Amortization of intangible assets |
864 | 870 | 841 | 819 | 760 | |||||||||||||||
| Loan collection and other real estate owned |
509 | 614 | 799 | 638 | 793 | |||||||||||||||
| Merger |
713 | 558 | 826 | 511 | 649 | |||||||||||||||
| Other operating |
4,122 | 4,552 | 4,161 | 3,523 | 4,479 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total noninterest expense |
48,592 | 49,431 | 47,390 | 48,474 | 47,412 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income before income taxes |
18,883 | 20,048 | 18,940 | 19,503 | 17,641 | |||||||||||||||
| Income taxes |
5,767 | 5,513 | 5,683 | 5,853 | 3,919 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income |
$ | 13,116 | $ | 14,535 | $ | 13,257 | $ | 13,650 | $ | 13,722 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Earnings per share: |
||||||||||||||||||||
| Basic |
$ | 0.39 | $ | 0.43 | $ | 0.40 | $ | 0.41 | $ | 0.42 | ||||||||||
| Diluted |
$ | 0.39 | $ | 0.43 | $ | 0.40 | $ | 0.41 | $ | 0.41 | ||||||||||
Page 11 of 13
| Three Months ended December 31, | 2012 | 2011 | ||||||||||||||||||||||
| (dollars in thousands) |
Average Balance |
Interest | Yield/ Rates |
Average Balance |
Interest | Yield/ Rates |
||||||||||||||||||
| ASSETS |
||||||||||||||||||||||||
| Short-term interest bearing accounts |
$ | 72,660 | $ | 48 | 0.26 | % | $ | 110,871 | $ | 79 | 0.28 | % | ||||||||||||
| Securities available for sale (1)(2) |
1,123,110 | 6,420 | 2.27 | % | 1,174,960 | 7,988 | 2.70 | % | ||||||||||||||||
| Securities held to maturity (1) |
60,651 | 826 | 5.42 | % | 72,354 | 997 | 5.47 | % | ||||||||||||||||
| Investment in FRB and FHLB Banks |
29,801 | 356 | 4.75 | % | 27,021 | 306 | 4.49 | % | ||||||||||||||||
| Loans (3) |
4,264,680 | 54,141 | 5.05 | % | 3,758,834 | 51,640 | 5.45 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest earning assets |
$ | 5,550,902 | $ | 61,791 | 4.43 | % | $ | 5,144,040 | $ | 61,010 | 4.71 | % | ||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Other assets |
503,124 | 452,623 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 6,054,026 | $ | 5,596,663 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||||||||||||||
| Money market deposit accounts |
$ | 1,149,248 | $ | 408 | 0.14 | % | $ | 1,067,130 | $ | 655 | 0.24 | % | ||||||||||||
| NOW deposit accounts |
752,737 | 467 | 0.25 | % | 740,529 | 568 | 0.30 | % | ||||||||||||||||
| Savings deposits |
694,226 | 131 | 0.08 | % | 614,030 | 119 | 0.08 | % | ||||||||||||||||
| Time deposits |
1,006,581 | 3,321 | 1.31 | % | 919,766 | 3,988 | 1.72 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest bearing deposits |
$ | 3,602,792 | $ | 4,327 | 0.48 | % | $ | 3,341,455 | $ | 5,330 | 0.63 | % | ||||||||||||
| Short-term borrowings |
150,372 | 39 | 0.10 | % | 154,286 | 39 | 0.10 | % | ||||||||||||||||
| Trust preferred debentures |
75,422 | 411 | 2.17 | % | 75,422 | 409 | 2.15 | % | ||||||||||||||||
| Long-term debt |
367,312 | 3,627 | 3.93 | % | 370,346 | 3,621 | 3.88 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest bearing liabilities |
$ | 4,195,898 | $ | 8,404 | 0.80 | % | $ | 3,941,509 | $ | 9,399 | 0.95 | % | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Demand deposits |
1,210,440 | 1,043,285 | ||||||||||||||||||||||
| Other liabilities |
68,477 | 72,315 | ||||||||||||||||||||||
| Stockholders’ equity |
579,211 | 539,554 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 6,054,026 | $ | 5,596,663 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest income (FTE) |
53,387 | 51,611 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest rate spread |
3.63 | % | 3.76 | % | ||||||||||||||||||||
| Net interest margin |
3.83 | % | 3.98 | % | ||||||||||||||||||||
| Taxable equivalent adjustment |
934 | 1,112 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest income |
$ | 52,453 | $ | 50,499 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| (1) | Securities are shown at average amortized cost |
| (2) | Excluding unrealized gains or losses |
| (3) | For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding |
Page 12 of 13
| Years ended December 31, | 2012 | 2011 | ||||||||||||||||||||||
| (dollars in thousands) |
Average Balance |
Interest | Yield/ Rates |
Average Balance |
Interest | Yield/ Rates |
||||||||||||||||||
| ASSETS |
||||||||||||||||||||||||
| Short-term interest bearing accounts |
$ | 66,207 | $ | 179 | 0.27 | % | $ | 101,224 | $ | 269 | 0.27 | % | ||||||||||||
| Securities available for sale (1)(2) |
1,177,969 | 28,904 | 2.45 | % | 1,123,215 | 33,319 | 2.97 | % | ||||||||||||||||
| Securities held to maturity (1) |
65,582 | 3,583 | 5.46 | % | 81,558 | 4,350 | 5.33 | % | ||||||||||||||||
| Investment in FRB and FHLB Banks |
28,358 | 1,378 | 4.86 | % | 27,089 | 1,389 | 5.13 | % | ||||||||||||||||
| Loans (3) |
4,053,420 | 209,370 | 5.17 | % | 3,677,931 | 205,318 | 5.58 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest earning assets |
$ | 5,391,536 | $ | 243,414 | 4.51 | % | $ | 5,011,017 | $ | 244,645 | 4.88 | % | ||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Other assets |
483,248 | 434,924 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 5,874,784 | $ | 5,445,941 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||||||||||||||
| Money market deposit accounts |
$ | 1,116,583 | $ | 2,054 | 0.18 | % | $ | 1,070,003 | $ | 3,592 | 0.34 | % | ||||||||||||
| NOW deposit accounts |
709,889 | 1,854 | 0.26 | % | 685,542 | 2,313 | 0.34 | % | ||||||||||||||||
| Savings deposits |
680,092 | 522 | 0.08 | % | 602,918 | 635 | 0.11 | % | ||||||||||||||||
| Time deposits |
993,117 | 14,418 | 1.45 | % | 913,330 | 16,480 | 1.80 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest bearing deposits |
$ | 3,499,681 | $ | 18,848 | 0.54 | % | $ | 3,271,793 | $ | 23,020 | 0.70 | % | ||||||||||||
| Short-term borrowings |
165,742 | 188 | 0.11 | % | 153,965 | 205 | 0.13 | % | ||||||||||||||||
| Trust preferred debentures |
75,422 | 1,730 | 2.29 | % | 75,422 | 2,092 | 2.77 | % | ||||||||||||||||
| Long-term debt |
368,270 | 14,428 | 3.92 | % | 370,035 | 14,404 | 3.89 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest bearing liabilities |
$ | 4,109,115 | $ | 35,194 | 0.86 | % | $ | 3,871,215 | $ | 39,721 | 1.03 | % | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Demand deposits |
1,139,896 | 966,282 | ||||||||||||||||||||||
| Other liabilities |
64,551 | 69,063 | ||||||||||||||||||||||
| Stockholders’ equity |
561,222 | 539,381 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 5,874,784 | $ | 5,445,941 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest income (FTE) |
208,220 | 204,924 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest rate spread |
3.65 | % | 3.85 | % | ||||||||||||||||||||
| Net interest margin |
3.86 | % | 4.09 | % | ||||||||||||||||||||
| Taxable equivalent adjustment |
4,017 | 4,648 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest income |
$ | 204,203 | $ | 200,276 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| (1) | Securities are shown at average amortized cost |
| (2) | Excluding unrealized gains or losses |
| (3) | For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding |
Page 13 of 13
NBT Bancorp Inc. and Subsidiaries
Loans (Unaudited)
| (In thousands) |
December
31, 2012 |
December
31, 2011 |
||||||
| Residential real estate mortgages |
$ | 651,107 | $ | 581,511 | ||||
| Commercial |
694,799 | 611,298 | ||||||
| Commercial real estate mortgages |
1,072,807 | 888,879 | ||||||
| Real estate construction and development |
123,078 | 93,977 | ||||||
| Agricultural and agricultural real estate mortgages |
112,687 | 108,423 | ||||||
| Consumer |
1,047,856 | 946,470 | ||||||
| Home equity |
575,282 | 569,645 | ||||||
|
|
|
|
|
|||||
| Total loans |
$ | 4,277,616 | $ | 3,800,203 | ||||
|
|
|
|
|
|||||