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): April 28, 2014
NBT BANCORP INC.
(Exact name of registrant as specified in its charter)
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DELAWARE
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0-14703
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16-1268674
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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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:
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o
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Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.02 Results of Operations and Financial Condition
On April 28, 2014, NBT Bancorp Inc. issued a press release describing its results of operations for the quarter ended March 31, 2014. That press release is furnished as Exhibit 99.1 hereto.
ITEM 9.01 Financial Statements and Exhibits
(d) The following is being furnished herewith:
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Exhibit No.
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Exhibit Description
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Press release text of NBT Bancorp Inc. dated April 28, 2014
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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.
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(Registrant)
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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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and Chief Financial Officer
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Date: April 29, 2014
Exhibit 99.1
FOR IMMEDIATE RELEASE
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ATTENTION: FINANCIAL AND BUSINESS EDITORS
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Contact:
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Martin A. Dietrich, CEO
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Michael J. Chewens, CFO
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
607-337-6119
NBT BANCORP INC. ANNOUNCES NET INCOME OF $18.0 MILLION AND ORGANIC LOAN GROWTH OF 5.6% FOR THE FIRST QUARTER OF 2014
NORWICH, NY (April 28, 2014) – NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported net income for the three months ended March 31, 2014 was $18.0 million, up from $7.6 million for the same period last year. The 2014 first quarter results included the full impact of the March 8, 2013 acquisition of Alliance Financial Corporation (“Alliance”). Reported results for the first quarter of 2013 included approximately $10.7 million in merger related expenses. Reported earnings per diluted share for the three months ended March 31, 2014 was $0.41 as compared to $0.21 for the same period in 2013.
Core net income (excluding net securities gains, merger related expenses, and other items not considered core) for the three months ended March 31, 2014 was $18.4 million, up 29.1% from $14.3 million for the same period in 2013. Core diluted earnings per share for the three months ended March 31, 2014 was $0.42, up from $0.39 for the same period in 2013.
First Quarter 2014 Highlights:
| · | Net income of $18.0 million for the first quarter of 2014 is the second highest quarter in the Company’s history |
| · | Strong organic loan growth continued in the first quarter of 2014 annualized at 5.6% |
| · | Net charge-offs to average loans was 0.27% for the first quarter of 2014, down from 0.44% from the fourth quarter of 2013, and lowest since the first quarter of 2007 |
| · | The 32 branches of NBT Bank’s Pennstar division were rebranded in March. Now all of the Company’s banking locations do business under the NBT Bank name |
“We are once again pleased to report record net income and strong organic loan growth as we communicate our first quarter 2014 results,” said NBT President and CEO Martin Dietrich. “As our quality team of financial professionals continues to promote NBT’s unique brand of customer and community-focused banking, we remain attentive to asset quality, expense control and investing in technology and training in our efforts to enhance NBT’s long-term value for our shareholders. We are also pleased to report that, with the rebranding of our Pennsylvania branches in March, all of our banking locations across our five-state footprint are now doing business as NBT Bank, creating operational efficiencies and enabling our customers to more easily identify us and fully access the range of financial services we offer.”
Page 2 of 11
Net interest income was $61.5 million for the first quarter of 2014, down slightly from the prior quarter, and up $9.4 million from the first quarter of 2013 primarily due to the acquisition of Alliance. FTE net interest margin was 3.63% for the three months ended March 31, 2014, up from 3.61% from the prior quarter, and down from 3.68% for the first quarter of 2013. Average interest earning assets were up $54.4 million, or 0.8%, for the first quarter of 2014 as compared to the prior quarter, driven primarily by organic loan production during the first quarter. Slight rate compression on earning assets continued to negatively impact net interest margin in the first quarter of 2014 as evidenced by decreasing loan yields from 4.54% for the fourth quarter of 2013 to 4.50% for the first quarter of 2014. Average interest bearing liabilities increased $42.5 million, or 0.8%, from the fourth quarter of 2013 to the first quarter of 2014. The rate compression on earning assets was offset by a decrease of 3 basis points in the rates paid on interest bearing liabilities in the first quarter of 2014 versus the prior quarter. This decrease was primarily driven by a decrease of 4 basis points in rates paid on deposits and lower time deposit balances.
Noninterest income for the three months ended March 31, 2014 was $26.3 million, up 3.9% from the prior quarter, and up 4.2% from the first quarter of 2013. The increase from the prior quarter was $1.0 million and was driven primarily by insurance and other financial services revenue, mostly due to an increase in contingent insurance revenue in the first quarter of 2014. The increase from the three months ended March 31, 2013 was due primarily to increases in trust and ATM and debit card fees, due in large part to the full quarter impact from Alliance in 2014.
Noninterest expense for the three months ended March 31, 2014 was $57.5 million, up 3.7% from the prior quarter. This increase from the prior quarter was due primarily to a 5.1% increase in salaries and employee benefits and an 18.3% increase in occupancy expenses mostly due to the harsh winter. Noninterest expense for the three months ended March 31, 2014 was down 5.3% from the first quarter of 2013 primarily due to merger expenses associated with the acquisition of Alliance. Excluding merger expenses totaling $10.7 million during the first quarter of 2013, noninterest expense was up 15.0% for the first quarter of 2014 as compared to the same period last year. This increase from the prior year was due primarily to the acquisition of Alliance expenses including occupancy, salaries and employee benefits, data processing, and equipment. The increase in salaries and benefits from the Alliance acquisition was partially offset by lower retirement plan expenses due mainly to plan asset performance and a previous plan amendment. Income tax expense for the three month period ended March 31, 2014 was $8.7 million, down slightly from $8.8 million from the prior quarter, and up from $3.4 million for the first quarter of 2013. The increase from the first quarter of 2013 is due primarily to the increase in pre-tax income during the first quarter of 2014 over the first quarter of 2013. The effective tax rate was 32.5% for the first quarter of 2014, 32.9% for the fourth quarter of 2013, and 30.5% for the first quarter of 2013.
Asset Quality
Net charge-offs were $3.6 million for the first quarter of 2014, down from $5.9 million for the fourth quarter of 2013, and down from $6.3 million for the first quarter of 2013. Net charge-offs to average loans for the first quarter of 2014 was 0.27%, compared to 0.44% for the fourth quarter of 2013 and 0.56% for the same period in 2013. NBT recorded a provision for loan losses of $3.6 million for the three months ended March 31, 2014, compared with $5.2 million for the fourth quarter of 2013 and $5.7 million for the first quarter of 2013.
Nonperforming loans to total loans was 0.99% at March 31, 2014, equivalent to December 31, 2013, and up from 0.83% at March 31, 2013. Past due loans as a percentage of total loans was 0.57% for the first quarter of 2014 as compared to 0.77% as of December 31, 2013, and 0.81% as of March 31, 2013.
Page 3 of 11
The allowance for loan losses totaled $69.4 million at March 31, 2014, equivalent to December 31, 2013 and up from $68.7 million at March 31, 2013. The allowance for loan losses as a percentage of loans was 1.27% (1.51% excluding acquired loans with no related allowance recorded) at March 31, 2014, compared to 1.28% (1.55% excluding acquired loans with no related allowance recorded) at December 31, 2013 and 1.32% (1.69% excluding acquired loans with no related allowance recorded) at March 31, 2013.
Balance Sheet
Total assets were $7.8 billion at March 31, 2014, up $101.0 million or 1.3% from December 31, 2013. Loans were $5.5 billion at March 31, 2014, up $75.2 million from December 31, 2013, primarily due to strong organic loan growth during the first quarter of 2014. Total deposits were $6.1 billion at March 31, 2014, up $178.7 million from December 31, 2013. Stockholders’ equity was $832.2 million, representing a total equity-to-total assets ratio of 10.73% at March 31, 2014, compared with $816.6 million or a total equity-to-total assets ratio of 10.67% at December 31, 2013.
Subsequent Event
On April 17, 2014, NBT Capital Corp., a wholly-owned subsidiary of NBT, sold its 20% ownership interest in Springstone Financial, LLC, which NBT originally acquired in exchange for a $3 million investment, to LendingClub Corporation as part of LendingClub’s acquisition of all of the outstanding equity in Springstone. LendingClub paid the selling equityholders a total purchase price equal to $140 million in cash and preferred stock. Springstone provides affordable financing options for consumers seeking to finance private education and elective medical procedures through a network of over 14,000 schools and healthcare providers. In connection with the acquisition, NBT Bank and Springstone entered into an amended and restated program agreement pursuant to which NBT Bank will continue to participate in lending activities with respect to Springstone’s financing operations. “The management of Springstone developed a very successful business, and we are pleased to have played a role in it,” said NBT President and CEO Martin Dietrich. “We look forward to the opportunity to continue our relationship with Springstone as they grow with LendingClub Corporation and are engaged in discussions to further develop collaborative opportunities with LendingClub.” NBT is exploring balance sheet strategies for optimal use of the proceeds from this transaction.
Stock Repurchase Program
The Company did not purchase shares of its common stock during the three month period ended March 31, 2014. As of March 31, 2014, there were 1,000,000 shares available for repurchase under a previously announced plan, which expires on December 31, 2014.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $7.8 billion at March 31, 2014. The company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A. has over 155 banking locations with offices in upstate New York, northwestern Vermont, western Massachusetts, southern New Hampshire, and 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.epic1st.com and www.manginsurance.com.
Page 4 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 update forward-looking statements to reflect subsequent circumstances or events.
Non-GAAP Measures
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). These measures adjust GAAP measures to exclude the effects of sales of securities and certain non-recurring and merger-related expenses. Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provided useful information that is important to an understanding of the operating results of NBT’s core business (due to the non-recurring nature of the excluded items). Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider NBT’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of NBT.
Page 5 of 11
NBT Bancorp Inc. and Subsidiaries
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SELECTED FINANCIAL DATA
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(unaudited, dollars in thousands except per share data)
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2014
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2013
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||||||||||||||||||
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1st Q
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4th Q
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3rd Q
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2nd Q
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1st Q
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|||||||||||||||
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Reconciliation of Non-GAAP Financial Measures:
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||||||||||||||||||||
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Reported net income (GAAP)
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$
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18,009
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$
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17,925
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$
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19,257
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$
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16,916
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$
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7,649
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||||||||||
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Adj: (Gain) / Loss on sale of securities, net (net of tax)
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(5
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)
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(9
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)
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(228
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)
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42
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(795
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)
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|||||||||||
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Adj: Other adjustments (net of tax) (1)
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430
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402
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110
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-
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-
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|||||||||||||||
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Plus: Merger related expenses (net of tax)
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-
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59
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224
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882
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7,423
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|||||||||||||||
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Total Adjustments
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425
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452
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106
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924
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6,628
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|||||||||||||||
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Core net income
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$
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18,434
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$
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18,377
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$
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19,363
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$
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17,840
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$
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14,277
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||||||||||
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||||||||||||||||||||
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Profitability:
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||||||||||||||||||||
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Core Diluted Earnings Per Share
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$
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0.42
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$
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0.42
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$
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0.44
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$
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0.40
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$
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0.39
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||||||||||
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Diluted Earnings Per Share
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$
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0.41
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$
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0.41
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$
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0.44
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$
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0.38
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$
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0.21
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||||||||||
| Weighted Average Diluted | ||||||||||||||||||||
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Common Shares Outstanding
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44,296,445
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44,121,102
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44,135,114
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44,316,531
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36,794,356
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|||||||||||||||
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Core Return on Average Assets (2)
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0.98
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%
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0.96
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%
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1.02
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%
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0.95
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%
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0.90
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%
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||||||||||
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Return on Average Assets (2)
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0.95
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%
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0.94
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%
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1.01
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%
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0.90
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%
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0.48
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%
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||||||||||
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Core Return on Average Equity (2)
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9.02
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%
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9.04
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%
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9.67
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%
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8.88
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%
|
9.01
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%
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||||||||||
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Return on Average Equity (2)
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8.81
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%
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8.81
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%
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9.62
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%
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8.42
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%
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4.83
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%
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||||||||||
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Core Return on Average Tangible Common Equity (2)(4)
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14.48
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%
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14.77
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%
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15.95
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%
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14.57
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%
|
13.58
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%
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||||||||||
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Return on Average Tangible Common Equity (2)(4)
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14.16
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%
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14.42
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%
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15.86
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%
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13.85
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%
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7.49
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%
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||||||||||
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Net Interest Margin (2)(3)
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3.63
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%
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3.61
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%
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3.65
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%
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3.69
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%
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3.68
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%
|
||||||||||
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(1)
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Primarily reorganization expenses for 2014 and 2013
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(2)
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Annualized
|
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(3)
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Calculated on a Fully Tax Equivalent (“FTE”)
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(4)
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Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:
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|
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2014
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2013
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||||||||||||||||||
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|
1st Q
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4th Q
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3rd Q
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2nd Q
|
1st Q
|
|||||||||||||||
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Average stockholders' equity
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$
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828,588
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$
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806,791
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$
|
794,273
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$
|
806,200
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$
|
642,693
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||||||||||
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Less: average goodwill and other intangibles
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290,019
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291,659
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292,271
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292,775
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200,779
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|||||||||||||||
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Average tangible common equity
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$
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538,569
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$
|
515,132
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$
|
502,002
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$
|
513,425
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$
|
441,914
|
||||||||||
Page 6 of 11
NBT Bancorp Inc. and Subsidiaries
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SELECTED FINANCIAL DATA
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(unaudited, dollars in thousands except per share data)
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|
2014
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2013
|
||||||||||||||||||
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|
1st Q
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4th Q
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3rd Q
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2nd Q
|
1st Q
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|||||||||||||||
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Balance Sheet Data:
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||||||||||||||||||||
|
Securities Available for Sale
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$
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1,377,585
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$
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1,364,881
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$
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1,385,734
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$
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1,390,403
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$
|
1,465,791
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||||||||||
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Securities Held to Maturity
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117,896
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117,283
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118,259
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122,302
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62,474
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|||||||||||||||
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Net Loans
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5,412,591
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5,337,361
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5,297,047
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5,219,526
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5,126,299
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|||||||||||||||
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Total Assets
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7,753,129
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7,652,175
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7,668,903
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7,534,518
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7,610,831
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|||||||||||||||
|
Total Deposits
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6,068,898
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5,890,224
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6,003,138
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5,878,176
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6,015,963
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|||||||||||||||
|
Total Borrowings
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766,753
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866,061
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783,439
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795,918
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715,728
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|||||||||||||||
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Total Liabilities
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6,920,927
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6,835,606
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6,873,344
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6,742,943
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6,807,536
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|||||||||||||||
|
Stockholders' Equity
|
832,202
|
816,569
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795,559
|
791,575
|
803,295
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|||||||||||||||
|
|
||||||||||||||||||||
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Asset Quality:
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||||||||||||||||||||
|
Nonaccrual Loans
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$
|
51,464
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$
|
49,965
|
$
|
41,418
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$
|
40,525
|
$
|
41,726
|
||||||||||
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90 Days Past Due and Still Accruing
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2,700
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3,737
|
3,286
|
2,004
|
1,651
|
|||||||||||||||
|
Total Nonperforming Loans
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54,164
|
53,702
|
44,704
|
42,529
|
43,377
|
|||||||||||||||
|
Other Real Estate Owned
|
2,564
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2,904
|
3,626
|
3,757
|
2,864
|
|||||||||||||||
|
Total Nonperforming Assets
|
56,728
|
56,606
|
48,330
|
46,286
|
46,241
|
|||||||||||||||
|
Allowance for Loan Losses
|
69,434
|
69,434
|
70,184
|
71,184
|
68,734
|
|||||||||||||||
|
Allowance for Loan Losses to Total Originated Loans (1)
|
1.51
|
%
|
1.55
|
%
|
1.60
|
%
|
1.68
|
%
|
1.69
|
%
|
||||||||||
|
Allowance for Loan Losses to Total Loans
|
1.27
|
%
|
1.28
|
%
|
1.31
|
%
|
1.35
|
%
|
1.32
|
%
|
||||||||||
|
Total Nonperforming Loans to Total Loans
|
0.99
|
%
|
0.99
|
%
|
0.83
|
%
|
0.80
|
%
|
0.83
|
%
|
||||||||||
|
Total Nonperforming Assets to Total Assets
|
0.73
|
%
|
0.74
|
%
|
0.63
|
%
|
0.61
|
%
|
0.61
|
%
|
||||||||||
|
Past Due Loans to Total Loans
|
0.57
|
%
|
0.77
|
%
|
0.70
|
%
|
0.71
|
%
|
0.81
|
%
|
||||||||||
|
Allowance for Loan Losses to Total Nonperforming Loans
|
128.19
|
%
|
129.29
|
%
|
157.00
|
%
|
167.38
|
%
|
158.46
|
%
|
||||||||||
|
Net Charge-Offs to Average Loans (4)
|
0.27
|
%
|
0.44
|
%
|
0.46
|
%
|
0.30
|
%
|
0.56
|
%
|
||||||||||
|
|
||||||||||||||||||||
|
Capital:
|
||||||||||||||||||||
|
Equity to Assets
|
10.73
|
%
|
10.67
|
%
|
10.37
|
%
|
10.51
|
%
|
10.55
|
%
|
||||||||||
|
Book Value Per Share
|
$
|
19.09
|
$
|
18.77
|
$
|
18.38
|
$
|
18.18
|
$
|
18.36
|
||||||||||
|
Tangible Book Value Per Share (2)
|
$
|
12.48
|
$
|
12.09
|
$
|
11.64
|
$
|
11.46
|
$
|
11.67
|
||||||||||
|
Tier 1 Leverage Ratio (3)
|
9.05
|
%
|
8.93
|
%
|
8.79
|
%
|
8.72
|
%
|
10.25
|
%
|
||||||||||
|
Tier 1 Capital Ratio
|
11.81
|
%
|
11.74
|
%
|
11.46
|
%
|
11.20
|
%
|
11.33
|
%
|
||||||||||
|
Total Risk-Based Capital Ratio
|
13.06
|
%
|
12.99
|
%
|
12.71
|
%
|
12.45
|
%
|
12.58
|
%
|
||||||||||
|
Common Stock Price (End of Period)
|
$
|
24.46
|
$
|
25.90
|
$
|
22.98
|
$
|
21.17
|
$
|
22.15
|
||||||||||
|
(1)
|
Excludes acquired loans with no related allowance recorded
|
|
(2)
|
Stockholders' equity less goodwill and intangible assets divided by common shares outstanding
|
|
(3)
|
The Tier 1 Leverage Ratio for the first quarter of 2013 was impacted by timing of the acquisition of Alliance on March 8, 2013
|
|
(4)
|
Annualized
|
Note: Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.
Page 7 of 11
NBT Bancorp Inc. and Subsidiaries
|
CONSOLIDATED BALANCE SHEETS
|
(unaudited, dollars in thousands)
|
|
March 31,
|
December 31,
|
||||||
|
ASSETS
|
2014
|
2013
|
||||||
|
Cash and due from banks
|
$
|
182,071
|
$
|
157,625
|
||||
|
Short term interest bearing accounts
|
3,493
|
1,301
|
||||||
|
Securities available for sale, at fair value
|
1,377,585
|
1,364,881
|
||||||
|
Securities held to maturity (fair value of $114,920 and $113,276 at March 31, 2014 and December 31, 2013, respectively)
|
117,896
|
117,283
|
||||||
|
Trading securities
|
6,954
|
5,779
|
||||||
|
Federal Reserve and Federal Home Loan Bank stock
|
41,458
|
46,864
|
||||||
|
Loans
|
5,482,025
|
5,406,795
|
||||||
|
Less allowance for loan losses
|
69,434
|
69,434
|
||||||
|
Net loans
|
5,412,591
|
5,337,361
|
||||||
|
Premises and equipment, net
|
87,647
|
88,327
|
||||||
|
Goodwill
|
263,634
|
264,997
|
||||||
|
Intangible assets, net
|
24,248
|
25,557
|
||||||
|
Bank owned life insurance
|
115,775
|
114,966
|
||||||
|
Other assets
|
119,777
|
127,234
|
||||||
|
TOTAL ASSETS
|
$
|
7,753,129
|
$
|
7,652,175
|
||||
|
|
||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
|
Deposits:
|
||||||||
|
Demand (noninterest bearing)
|
$
|
1,616,612
|
$
|
1,645,641
|
||||
|
Savings, NOW, and money market
|
3,482,925
|
3,223,441
|
||||||
|
Time
|
969,361
|
1,021,142
|
||||||
|
Total deposits
|
6,068,898
|
5,890,224
|
||||||
|
Short-term borrowings
|
356,878
|
456,042
|
||||||
|
Long-term debt
|
308,679
|
308,823
|
||||||
|
Junior subordinated debt
|
101,196
|
101,196
|
||||||
|
Other liabilities
|
85,276
|
79,321
|
||||||
|
Total liabilities
|
6,920,927
|
6,835,606
|
||||||
|
|
||||||||
|
Total stockholders' equity
|
832,202
|
816,569
|
||||||
|
|
||||||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
7,753,129
|
$
|
7,652,175
|
||||
Page 8 of 11
NBT Bancorp Inc. and Subsidiaries
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
Three Months Ended
|
|||||||
|
|
March 31,
|
|||||||
|
|
2014
|
2013
|
||||||
|
Interest, fee and dividend income:
|
||||||||
|
Loans
|
$
|
60,015
|
$
|
53,695
|
||||
|
Securities available for sale
|
6,757
|
5,746
|
||||||
|
Securities held to maturity
|
768
|
525
|
||||||
|
Other
|
537
|
403
|
||||||
|
Total interest, fee and dividend income
|
68,077
|
60,369
|
||||||
|
Interest expense:
|
||||||||
|
Deposits
|
3,284
|
4,150
|
||||||
|
Short-term borrowings
|
231
|
42
|
||||||
|
Long-term debt
|
2,507
|
3,609
|
||||||
|
Junior subordinated debt
|
538
|
428
|
||||||
|
Total interest expense
|
6,560
|
8,229
|
||||||
|
Net interest income
|
61,517
|
52,140
|
||||||
|
Provision for loan losses
|
3,596
|
5,658
|
||||||
|
Net interest income after provision for loan losses
|
57,921
|
46,482
|
||||||
|
Noninterest income:
|
||||||||
|
Insurance and other financial services revenue
|
6,737
|
6,893
|
||||||
|
Service charges on deposit accounts
|
4,369
|
4,323
|
||||||
|
ATM and debit card fees
|
4,072
|
3,242
|
||||||
|
Retirement plan administration fees
|
2,918
|
2,682
|
||||||
|
Trust
|
4,446
|
2,913
|
||||||
|
Bank owned life insurance income
|
1,382
|
849
|
||||||
|
Net securities gains
|
7
|
1,145
|
||||||
|
Other
|
2,346
|
3,182
|
||||||
|
Total noninterest income
|
26,277
|
25,229
|
||||||
|
Noninterest expense:
|
||||||||
|
Salaries and employee benefits
|
29,534
|
27,047
|
||||||
|
Occupancy
|
6,226
|
4,977
|
||||||
|
Data processing and communications
|
4,001
|
3,455
|
||||||
|
Professional fees and outside services
|
3,415
|
2,901
|
||||||
|
Equipment
|
3,116
|
2,582
|
||||||
|
Office supplies and postage
|
1,685
|
1,590
|
||||||
|
FDIC expenses
|
1,278
|
1,130
|
||||||
|
Advertising
|
739
|
723
|
||||||
|
Amortization of intangible assets
|
1,310
|
851
|
||||||
|
Loan collection and other real estate owned
|
1,040
|
718
|
||||||
|
Merger related
|
-
|
10,681
|
||||||
|
Other operating
|
5,173
|
4,050
|
||||||
|
Total noninterest expense
|
57,517
|
60,705
|
||||||
|
Income before income taxes
|
26,681
|
11,006
|
||||||
|
Income taxes
|
8,672
|
3,357
|
||||||
|
Net income
|
$
|
18,009
|
$
|
7,649
|
||||
|
Earnings Per Share:
|
||||||||
|
Basic
|
$
|
0.41
|
$
|
0.21
|
||||
|
Diluted
|
$
|
0.41
|
$
|
0.21
|
||||
Page 9 of 11
NBT Bancorp Inc. and Subsidiaries
|
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
|
(unaudited, dollars in thousands except per share data)
|
|
2014
|
2013
|
||||||||||||||||||
|
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
|||||||||||||||
|
Interest, fee and dividend income:
|
||||||||||||||||||||
|
Loans
|
$
|
60,015
|
$
|
61,173
|
$
|
61,773
|
$
|
62,031
|
$
|
53,695
|
||||||||||
|
Securities available for sale
|
6,757
|
6,707
|
6,520
|
6,537
|
5,746
|
|||||||||||||||
|
Securities held to maturity
|
768
|
783
|
804
|
548
|
525
|
|||||||||||||||
|
Other
|
537
|
518
|
472
|
488
|
403
|
|||||||||||||||
|
Total interest, fee and dividend income
|
68,077
|
69,181
|
69,569
|
69,604
|
60,369
|
|||||||||||||||
|
Interest expense:
|
||||||||||||||||||||
|
Deposits
|
3,284
|
3,845
|
3,999
|
4,296
|
4,150
|
|||||||||||||||
|
Short-term borrowings
|
231
|
174
|
232
|
67
|
42
|
|||||||||||||||
|
Long-term debt
|
2,507
|
2,559
|
2,561
|
3,026
|
3,609
|
|||||||||||||||
|
Junior subordinated debt
|
538
|
545
|
551
|
560
|
428
|
|||||||||||||||
|
Total interest expense
|
6,560
|
7,123
|
7,343
|
7,949
|
8,229
|
|||||||||||||||
|
Net interest income
|
61,517
|
62,058
|
62,226
|
61,655
|
52,140
|
|||||||||||||||
|
Provision for loan losses
|
3,596
|
5,166
|
5,198
|
6,402
|
5,658
|
|||||||||||||||
|
Net interest income after provision for loan losses
|
57,921
|
56,892
|
57,028
|
55,253
|
46,482
|
|||||||||||||||
|
Noninterest income:
|
||||||||||||||||||||
|
Insurance and other financial services revenue
|
6,737
|
5,761
|
6,038
|
5,755
|
6,893
|
|||||||||||||||
|
Service charges on deposit accounts
|
4,369
|
4,996
|
5,055
|
4,933
|
4,323
|
|||||||||||||||
|
ATM and debit card fees
|
4,072
|
3,996
|
4,276
|
4,044
|
3,242
|
|||||||||||||||
|
Retirement plan administration fees
|
2,918
|
2,796
|
3,062
|
2,957
|
2,682
|
|||||||||||||||
|
Trust
|
4,446
|
4,725
|
4,345
|
4,699
|
2,913
|
|||||||||||||||
|
Bank owned life insurance income
|
1,382
|
1,145
|
913
|
886
|
849
|
|||||||||||||||
|
Net securities gains (losses)
|
7
|
13
|
329
|
(61
|
)
|
1,145
|
||||||||||||||
|
Other
|
2,346
|
1,870
|
3,129
|
2,324
|
3,182
|
|||||||||||||||
|
Total noninterest income
|
26,277
|
25,302
|
27,147
|
25,537
|
25,229
|
|||||||||||||||
|
Noninterest expense:
|
||||||||||||||||||||
|
Salaries and employee benefits
|
29,534
|
28,106
|
29,267
|
29,160
|
27,047
|
|||||||||||||||
|
Occupancy
|
6,226
|
5,262
|
5,262
|
5,219
|
4,977
|
|||||||||||||||
|
Data processing and communications
|
4,001
|
3,985
|
4,059
|
3,854
|
3,455
|
|||||||||||||||
|
Professional fees and outside services
|
3,415
|
3,969
|
3,202
|
3,237
|
2,901
|
|||||||||||||||
|
Equipment
|
3,116
|
3,013
|
2,988
|
2,910
|
2,582
|
|||||||||||||||
|
Office supplies and postage
|
1,685
|
1,677
|
1,640
|
1,656
|
1,590
|
|||||||||||||||
|
FDIC expenses
|
1,278
|
1,272
|
1,285
|
1,273
|
1,130
|
|||||||||||||||
|
Advertising
|
739
|
759
|
722
|
1,000
|
723
|
|||||||||||||||
|
Amortization of intangible assets
|
1,310
|
1,324
|
1,346
|
1,351
|
851
|
|||||||||||||||
|
Loan collection and other real estate owned
|
1,040
|
594
|
886
|
421
|
718
|
|||||||||||||||
|
Merger
|
-
|
88
|
326
|
1,269
|
10,681
|
|||||||||||||||
|
Other operating
|
5,173
|
5,437
|
5,303
|
5,100
|
4,050
|
|||||||||||||||
|
Total noninterest expense
|
57,517
|
55,486
|
56,286
|
56,450
|
60,705
|
|||||||||||||||
|
Income before income taxes
|
26,681
|
26,708
|
27,889
|
24,340
|
11,006
|
|||||||||||||||
|
Income taxes
|
8,672
|
8,783
|
8,632
|
7,424
|
3,357
|
|||||||||||||||
|
Net income
|
$
|
18,009
|
$
|
17,925
|
$
|
19,257
|
$
|
16,916
|
$
|
7,649
|
||||||||||
|
Earnings per share:
|
||||||||||||||||||||
|
Basic
|
$
|
0.41
|
$
|
0.41
|
$
|
0.44
|
$
|
0.39
|
$
|
0.21
|
||||||||||
|
Diluted
|
$
|
0.41
|
$
|
0.41
|
$
|
0.44
|
$
|
0.38
|
$
|
0.21
|
||||||||||
Page 10 of 11
NBT Bancorp Inc. and Subsidiaries
|
AVERAGE QUARTERLY BALANCE SHEETS
|
(unaudited, dollars in thousands)
|
Average
Balance
|
Yield /
Rates
|
Average
Balance
|
Yield /
Rates
|
Average
Balance
|
Yield /
Rates
|
Average
Balance
|
Yield /
Rates
|
Average
Balance
|
Yield /
Rates
|
|||||||||||||||||||||||||||||||
|
Q1 - 2014
|
Q4 - 2013
|
Q3 - 2013
|
Q2 - 2013
|
Q1 - 2013
|
||||||||||||||||||||||||||||||||||||
|
ASSETS:
|
||||||||||||||||||||||||||||||||||||||||
|
Short-term interest bearing accounts
|
$
|
2,733
|
1.02
|
%
|
$
|
4,798
|
0.81
|
%
|
$
|
1,955
|
1.73
|
%
|
$
|
41,313
|
0.57
|
%
|
$
|
75,110
|
0.21
|
%
|
||||||||||||||||||||
|
Securities available for sale (1)(2)
|
1,381,744
|
2.11
|
%
|
1,383,273
|
2.05
|
%
|
1,387,714
|
2.00
|
%
|
1,428,864
|
1.97
|
%
|
1,197,238
|
2.09
|
%
|
|||||||||||||||||||||||||
|
Securities held to maturity (1)
|
116,613
|
3.52
|
%
|
117,574
|
3.47
|
%
|
118,781
|
3.54
|
%
|
62,463
|
5.23
|
%
|
52,905
|
6.06
|
%
|
|||||||||||||||||||||||||
|
Investment in FRB and FHLB Banks
|
43,596
|
4.94
|
%
|
41,115
|
4.92
|
%
|
43,895
|
4.20
|
%
|
35,497
|
4.85
|
%
|
31,312
|
4.75
|
%
|
|||||||||||||||||||||||||
|
Loans (3)
|
5,425,938
|
4.50
|
%
|
5,369,474
|
4.54
|
%
|
5,309,446
|
4.63
|
%
|
5,243,534
|
4.76
|
%
|
4,492,106
|
4.87
|
%
|
|||||||||||||||||||||||||
|
Total interest earning assets
|
$
|
6,970,624
|
4.01
|
%
|
$
|
6,916,234
|
4.02
|
%
|
$
|
6,861,791
|
4.08
|
%
|
$
|
6,811,671
|
4.16
|
%
|
$
|
5,848,671
|
4.25
|
%
|
||||||||||||||||||||
|
Other assets
|
679,246
|
680,435
|
671,482
|
705,869
|
554,355
|
|||||||||||||||||||||||||||||||||||
|
Total assets
|
$
|
7,649,870
|
$
|
7,596,669
|
$
|
7,533,273
|
$
|
7,517,540
|
$
|
6,403,026
|
||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY:
|
||||||||||||||||||||||||||||||||||||||||
|
Money market deposit accounts
|
$
|
1,411,444
|
0.15
|
%
|
$
|
1,419,458
|
0.15
|
%
|
$
|
1,360,067
|
0.15
|
%
|
$
|
1,402,429
|
0.15
|
%
|
$
|
1,190,555
|
0.14
|
%
|
||||||||||||||||||||
|
NOW deposit accounts
|
932,528
|
0.05
|
%
|
925,544
|
0.13
|
%
|
877,387
|
0.13
|
%
|
927,037
|
0.19
|
%
|
799,219
|
0.23
|
%
|
|||||||||||||||||||||||||
|
Savings deposits
|
1,000,029
|
0.07
|
%
|
973,650
|
0.08
|
%
|
984,093
|
0.09
|
%
|
983,413
|
0.09
|
%
|
770,559
|
0.08
|
%
|
|||||||||||||||||||||||||
|
Time deposits
|
999,579
|
0.99
|
%
|
1,042,710
|
1.07
|
%
|
1,081,549
|
1.09
|
%
|
1,136,511
|
1.10
|
%
|
1,015,711
|
1.26
|
%
|
|||||||||||||||||||||||||
|
Total interest bearing deposits
|
$
|
4,343,580
|
0.31
|
%
|
$
|
4,361,362
|
0.35
|
%
|
$
|
4,303,096
|
0.37
|
%
|
$
|
4,449,390
|
0.39
|
%
|
$
|
3,776,044
|
0.45
|
%
|
||||||||||||||||||||
|
Short-term borrowings
|
398,951
|
0.24
|
%
|
338,476
|
0.20
|
%
|
383,238
|
0.24
|
%
|
229,906
|
0.12
|
%
|
168,783
|
0.10
|
%
|
|||||||||||||||||||||||||
|
Junior subordinated debentures
|
101,196
|
2.16
|
%
|
101,196
|
2.14
|
%
|
101,196
|
2.16
|
%
|
101,196
|
2.22
|
%
|
82,295
|
2.11
|
%
|
|||||||||||||||||||||||||
|
Long-term debt
|
308,760
|
3.29
|
%
|
308,969
|
3.29
|
%
|
309,069
|
3.29
|
%
|
355,702
|
3.41
|
%
|
382,177
|
3.83
|
%
|
|||||||||||||||||||||||||
|
Total interest bearing liabilities
|
$
|
5,152,487
|
0.52
|
%
|
$
|
5,110,003
|
0.55
|
%
|
$
|
5,096,599
|
0.57
|
%
|
$
|
5,136,194
|
0.62
|
%
|
$
|
4,409,299
|
0.76
|
%
|
||||||||||||||||||||
|
Demand deposits
|
1,589,865
|
1,595,145
|
1,559,506
|
1,496,486
|
1,283,737
|
|||||||||||||||||||||||||||||||||||
|
Other liabilities
|
78,930
|
84,730
|
82,896
|
78,660
|
67,297
|
|||||||||||||||||||||||||||||||||||
|
Stockholders' equity
|
828,588
|
806,791
|
794,272
|
806,200
|
642,693
|
|||||||||||||||||||||||||||||||||||
|
Total liabilities and stockholders' equity
|
$
|
7,649,870
|
$
|
7,596,669
|
$
|
7,533,273
|
$
|
7,517,540
|
$
|
6,403,026
|
||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||
|
Interest rate spread
|
3.49
|
%
|
3.47
|
%
|
3.51
|
%
|
3.54
|
%
|
3.49
|
%
|
||||||||||||||||||||||||||||||
|
Net interest margin
|
3.63
|
%
|
3.61
|
%
|
3.65
|
%
|
3.69
|
%
|
3.68
|
%
|
||||||||||||||||||||||||||||||
|
(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 11 of 11
NBT Bancorp Inc. and Subsidiaries
|
CONSOLIDATED LOAN BALANCES
|
(unaudited, dollars in thousands)
|
|
2014
|
2013
|
||||||||||||||||||
|
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
|||||||||||||||
|
Residential real estate mortgages
|
$
|
1,056,793
|
$
|
1,041,637
|
$
|
1,028,158
|
$
|
1,001,642
|
$
|
996,925
|
||||||||||
|
Commercial
|
878,152
|
859,026
|
849,095
|
867,513
|
829,766
|
|||||||||||||||
|
Commercial real estate mortgages
|
1,347,940
|
1,328,313
|
1,302,978
|
1,241,271
|
1,233,763
|
|||||||||||||||
|
Real estate construction and development
|
99,295
|
93,247
|
116,662
|
152,548
|
136,402
|
|||||||||||||||
|
Agricultural and agricultural real estate mortgages
|
110,815
|
112,035
|
110,113
|
107,565
|
107,023
|
|||||||||||||||
|
Consumer
|
1,387,221
|
1,352,638
|
1,327,203
|
1,284,888
|
1,253,645
|
|||||||||||||||
|
Home equity
|
601,809
|
619,899
|
633,022
|
635,283
|
637,509
|
|||||||||||||||
|
Total loans
|
$
|
5,482,025
|
$
|
5,406,795
|
$
|
5,367,231
|
$
|
5,290,710
|
$
|
5,195,033
|
||||||||||