NBT Bancorp Inc. Announces First Quarter Earnings of $0.41 per Diluted Share; Declares Cash Dividend
NORWICH, NY, Apr 26, 2010 (MARKETWIRE via COMTEX) --NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today net income per diluted share for the three months ended March 31, 2010 of $0.41 per share, as compared with $0.40 per share for the three months ended March 31, 2009. Annualized return on average assets and return on average equity were 1.03% and 11.05%, respectively, for the three months ended March 31, 2010, compared with 0.99% and 12.14%, respectively, for the three months ended March 31, 2009. Net interest margin was 4.21% for the three months ended March 31, 2010, up 12 basis points ("bp") from 4.09% for the three months ended March 31, 2009. Net income for the three months ended March 31, 2010 was $14.0 million, up $0.9 million, or 6.9%, from $13.1 million for the first quarter last year.
NBT President and CEO Martin Dietrich said: "I am pleased to report that we continued to achieve strong results in the first quarter of 2010, including positive trends in net income and nonperforming loans. Although the weak economy remains a challenge, we have maintained a high level of performance while continuing to invest strategically in future opportunities. We are confident that our performance and investments will make us a stronger company in the long run and have us well-positioned as the economy strengthens."
Loan and Lease Quality and Provision for Loan and Lease Losses
Nonperforming loans at March 31, 2010 were $40.8 million or 1.12% of total loans and leases compared with $41.3 million or 1.13% at December 31, 2009 and $27.3 million or 0.75% at March 31, 2009. The increase in nonperforming loans at March 31, 2010 as compared with March 31, 2009 was primarily the result of specific commercial and agricultural credits. Past due loans as a percentage of total loans has improved slightly to 0.87% at March 31, 2010, as compared with 0.89% at December 31, 2009 and 0.93% at March 31, 2009 which reflects the Company's continued commitment to sound underwriting practices.
The allowance for loan and lease losses totaled $70.2 million at March 31, 2010, $66.6 million at December 31, 2009 and $59.3 million at March 31, 2009. As a result of the increase in the allowance for loan and lease losses, accompanied by a slight decrease in loans and leases, the allowance for loan losses as a percentage of loans and leases increased to 1.93% at March 31, 2010 from 1.83% at December 31, 2009. The recent stabilization and slight improvement of certain asset quality trends, such as nonperforming and past due loans is encouraging despite the ongoing economic uncertainty. If these indicators and classified loans remain stable or continue to improve, we would expect the allowance for loan and lease losses to decrease.
The Company recorded a provision for loan and lease losses of $9.2 million during the first quarter of 2010 compared with $6.5 million during the first quarter of 2009. Due to continued effects of the Company's diligent collection efforts, net charge-offs to average loans and leases for the three months ended March 31, 2010 decreased to 0.63%, compared with 0.70% for the three months ended March 31, 2009.
Net Interest Income
Net interest income was up 5.6% to $50.8 million for the three months ended March 31, 2010 compared with $48.1 million for the three months ended March 31, 2009. The Company's fully taxable equivalent (FTE) net interest margin was 4.21% for the three months ended March 31, 2010, as compared with 4.09% for the three months ended March 31, 2009.
The Company experienced a 2.3% growth in average earning assets for the three months ending March 31, 2010 as compared with the three months ending March 31, 2009, due primarily to increases in average short-term interest bearing accounts and average securities held to maturity. However, as a result of this excess liquidity, our Federal Funds sold position had a negative impact of 12 bp on our net interest margin for the three months ended March 31, 2010 as compared to the three months ended March 31, 2009.
While the yield on interest earning assets decreased 45 basis points, the yield on interest bearing liabilities declined 63 basis points, which resulted in an increase in the net interest margin for the three months ended March 31, 2010 compared to the same period for 2009. The yield on time deposits was 2.19% for the three months ended March 31, 2010, as compared with 2.94% for the three months ended March 31, 2009. The yield on money market deposit accounts was 0.70% for the three months ended March 31, 2010, as compared with 1.34% for the three months ended March 31, 2009. The yield on trust preferred debentures declined 32 basis points for the three months ended March 31, 2010 as compared to the three months ended March 31, 2009 as the rate on a majority of the balance of the debentures is tied to the three-month LIBOR, which decreased approximately 1 percentage point in the first quarter of 2010 as compared with the first quarter of 2009.
Noninterest Income
Noninterest income for the three months ended March 31, 2010 was $20.3 million, up $0.7 million or 3.8% from $19.6 million for the same period in 2009. The increase in noninterest income was due primarily to an increase in retirement plan administration fees of approximately $0.6 million for the three month period ended March 31, 2010 as compared with the three month period ended March 31, 2009 as a result of organic growth. In addition, trust income increased approximately $0.4 million for the three months ended March 31, 2010 as compared to the same period in 2009 as a result of an increase in fair value of trust assets under administration. These increases were partially offset by a decrease in other noninterest income of approximately $0.3 million due in large part to a decrease in mortgage banking activity in the first quarter of 2010 as compared with the first quarter of 2009.
Noninterest Expense and Income Tax Expense
Noninterest expense for the three months ended March 31, 2010 was $42.2 million, down slightly from $42.3 million for the same period in 2009. Salaries and employee benefits increased $0.8 million, or 3.6%, for the three months ended March 31, 2010 compared with the same period in 2009. This increase was due primarily to increases in full-time-equivalent employees and merit increases. Loan collection and other real estate owned expenses increased approximately $0.3 million, or 41.6%, for the three month period ended March 31, 2010 as compared with the three months ended March 31, 2009. This increase was due to higher property taxes paid by the Company on collateral securing certain loans. These increases were partially offset by a decrease in other operating expenses of approximately $0.8 million for the three month period ended March 31, 2010, as compared with the three months ended March 31, 2009. This decrease resulted from a decline in losses incurred on lease residual asset sales during the first quarter of 2010 as compared with the first quarter of 2009. In addition, professional fees and outside services decreased by $0.4 million, or 16.1%, for the three month period ended March 31, 2010 as compared with the three months ended March 31, 2009. This decrease was due to legal fees incurred during the first quarter of 2009 related to de novo branch activity. Income tax expense for the three month period ended March 31, 2010 was $5.8 million, down from $5.9 million for the same period in 2009.
Balance Sheet
Total assets were $5.5 billion at March 31, 2010, up $67.0 million or 1.2% from December 31, 2009. Loans and leases were $3.6 billion at March 31, 2010, down $7.8 million from December 31, 2009. Total deposits were $4.2 billion at March 31, 2010, up $84.1 million or 2.1% from December 31, 2009. The increase from December 31, 2009 was due in large part to a $139.1 million, or 6.1%, increase in NOW, savings and money market accounts. This increase was partially offset by a $31.2 million decrease in demand deposits. Stockholders' equity was $515.5 million, representing a total equity-to-total assets ratio of 9.32% at March 31, 2010, compared with $505.1 million or a total equity-to-total assets ratio of 9.24% at December 31, 2009.
Stock Repurchase Program
The Company made no purchases of its common stock securities during the quarter ended March 31, 2010. At March 31, 2010, there were 1,000,000 shares available for repurchase under a previously announced stock repurchase plan. This plan was authorized on October 26, 2009 in the amount of 1,000,000 shares and expires on December 31, 2011.
Dividend Declared
The NBT Board of Directors declared a 2010 second-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on June 15, 2010, to shareholders of record as of June 1, 2010.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $5.5 billion at March 31, 2010. The company primarily operates through NBT Bank, N.A., a full-service community bank with two divisions, and through two financial services companies. NBT Bank, N.A. has 124 locations, including 85 NBT Bank offices in upstate New York, 38 Pennstar Bank offices in northeastern Pennsylvania and one office in Burlington, Vermont. EPIC Advisors, Inc., based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm. Mang Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions can be found on the Internet at: www.nbtbancorp.com, www.nbtbank.com, www.pennstarbank.com, www.epic1st.com and www.manginsurance.com.
Forward-Looking Statements
This news release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of NBT Bancorp and its subsidiaries and on the information available to management at the time that these statements were made. There are a number of factors, many of which are beyond NBT's control, that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which NBT is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than NBT; and (7) adverse changes may occur in the securities markets or with respect to inflation. Forward-looking statements speak only as of the date they are made. Except as required by law, NBT does not undertake to update forward-looking statements to reflect subsequent circumstances or events.
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
Net Percent
2010 2009 Change Change
---------------- ---------------- --------- --------
(dollars in thousands, except per
share data)
Three Months Ended
March 31,
Net Income $ 13,976 $ 13,072 $ 904 7%
Diluted Earnings
Per Share $ 0.41 $ 0.40 $ 0.01 2%
Weighted Average
Diluted Common
Shares Outstanding 34,424,752 32,644,599 1,780,153 5%
Return on Average
Assets (1) 1.03% 0.99% 4 bp 4%
Return on Average
Equity (1) 11.05% 12.14% -109 bp -9%
Net Interest Margin
(2) 4.21% 4.09% 12 bp 3%
================ ================ ========= ========
Asset Quality March 31, December 31,
2010 2009
---------------- ----------------
Nonaccrual Loans $ 38,786 $ 38,746
90 Days Past Due
and Still Accruing $ 2,007 $ 2,526
Total Nonperforming
Loans $ 40,793 $ 41,272
Other Real Estate
Owned $ 1,989 $ 2,358
Total Nonperforming
Assets $ 42,782 $ 43,630
Past Due Loans $ 31,715 $ 32,349
Potential Problem
Loans $ 82,415 $ 79,072
Allowance for Loan
and Lease Losses $ 70,150 $ 66,550
Allowance for Loan
and Lease Losses
to Total Loans and
Leases 1.93% 1.83%
Total Nonperforming
Loans to Total
Loans and Leases 1.12% 1.13%
Total Nonperforming
Assets to Total
Assets 0.77% 0.80%
Past Due Loans to
Total Loans and
Leases 0.87% 0.89%
Allowance for Loan
and Lease Losses
to Total
Nonperforming
Loans 171.97% 161.25%
Net Charge-Offs to
YTD Average Loans
and Leases 0.63% 0.70%
================ ================
Capital
Equity to Assets 9.32% 9.24%
Book Value Per
Share $ 14.97 $ 14.69
Tangible Book Value
Per Share $ 11.06 $ 10.75
Tier 1 Leverage
Ratio 8.55% 8.35%
Tier 1 Capital
Ratio 11.59% 11.34%
Total Risk-Based
Capital Ratio 12.84% 12.59%
================ ================
---------------- ----------------
Quarterly Common
Stock Price 2010 2009
Quarter End High Low High Low
---------------- ----------------
March 31 $ 23.99 $19.15 $ 28.37 $ 15.42
June 30 $ 25.22 $ 20.49
September 30 $ 24.16 $ 20.57
December 31 $ 23.59 $ 19.43
---------------- ----------------
(1) Annualized
(2) Calculated on a FTE basis
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
March 31, December 31, Net Percent
2010 2009 Change Change
----------- ----------- ---------- ----------
(dollars in thousands,
except per share data)
Balance Sheet
Loans and Leases $ 3,637,622 $ 3,645,398 ($ 7,776) 0%
Earning Assets $ 5,085,817 $ 5,009,251 $ 76,566 2%
Total Assets $ 5,531,060 $ 5,464,026 $ 67,034 1%
Deposits $ 4,177,179 $ 4,093,046 $ 84,133 2%
Stockholders' Equity $ 515,476 $ 505,123 $ 10,353 2%
=========== =========== ========== ==========
2010 2009
----------- -----------
(dollars in thousands,
Average Balances except per share data)
Three Months Ended March
31,
Loans and Leases $ 3,640,137 $ 3,658,682 ($ 18,545)
Securities Available For
Sale
(excluding unrealized gains
or losses) $ 1,088,604 $ 1,089,512 ($ 908)
Securities Held To Maturity $ 155,800 $ 138,700 $ 17,100
Trading Securities $ 2,428 $ 1,433 $ 995
Regulatory Equity
Investment $ 34,728 $ 38,852 ($ 4,124)
Short-Term Interest Bearing
Accounts $ 124,018 $ 2,684 $ 121,334
Total Earning Assets $ 5,043,287 $ 4,928,430 $ 114,857
Total Assets $ 5,489,544 $ 5,351,476 $ 138,068
Interest Bearing Deposits $ 3,376,185 $ 3,312,594 $ 63,591
Non-Interest Bearing
Deposits $ 759,533 $ 680,835 $ 78,698
Short-Term Borrowings $ 157,255 $ 148,448 $ 8,807
Long-Term Borrowings $ 601,748 $ 706,660 ($ 104,912)
Total Interest Bearing
Liabilities $ 4,135,188 $ 4,167,702 ($ 32,514)
Stockholders' Equity $ 513,174 $ 436,685 $ 76,489
=========== =========== ==========
NBT Bancorp Inc. and Subsidiaries March 31, December 31,
Consolidated Balance Sheets (unaudited) 2010 2009
------------ ------------
(in thousands)
ASSETS
Cash and due from banks $ 101,170 $ 107,980
Short term interest bearing accounts 135,606 79,181
Securities available for sale, at fair value 1,151,746 1,116,758
Securities held to maturity (fair value of
$158,896 and $161,851 at March 31, 2010 and
December 31, 2009, respectively) 157,108 159,946
Trading securities 2,593 2,410
Federal Reserve and Federal Home Loan Bank stock 33,728 35,979
Loans and leases 3,637,622 3,645,398
Less allowance for loan and lease losses 70,150 66,550
============ ============
Net loans and leases 3,567,472 3,578,848
Premises and equipment, net 66,229 66,221
Goodwill 114,841 114,938
Intangible assets, net 19,809 20,590
Bank owned life insurance 75,732 74,751
Other assets 105,026 106,424
------------ ------------
TOTAL ASSETS $ 5,531,060 $ 5,464,026
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $ 758,770 $ 789,989
Savings, NOW, and money market 2,408,924 2,269,779
Time 1,009,485 1,033,278
------------ ------------
Total deposits 4,177,179 4,093,046
Short-term borrowings 166,942 155,977
Long-term debt 504,590 554,698
Trust preferred debentures 75,422 75,422
Other liabilities 91,451 79,760
------------ ------------
Total liabilities 5,015,584 4,958,903
Total stockholders' equity 515,476 505,123
============ ============
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,531,060 $ 5,464,026
============ ============
Three months ended
NBT Bancorp Inc. and Subsidiaries March 31,
Consolidated Statements of Income (unaudited) 2010 2009
--------- ---------
(in thousands, except per share data)
Interest, fee and dividend income:
Loans and leases $ 53,692 $ 55,411
Securities available for sale 10,046 12,375
Securities held to maturity 1,137 1,234
Other 596 361
--------- ---------
Total interest, fee and dividend income 65,471 69,381
--------- ---------
Interest expense:
Deposits 8,454 13,839
Short-term borrowings 124 147
Long-term debt 5,065 6,197
Trust preferred debentures 1,027 1,086
--------- ---------
Total interest expense 14,670 21,269
--------- ---------
Net interest income 50,801 48,112
Provision for loan and lease losses 9,243 6,451
--------- ---------
Net interest income after provision for loan and lease
losses 41,558 41,661
--------- ---------
Noninterest income:
Trust 1,766 1,409
Service charges on deposit accounts 6,130 6,297
ATM and debit card fees 2,367 2,182
Insurance revenue 5,245 5,338
Net securities gains 28 -
Bank owned life insurance income 981 872
Retirement plan administration fees 2,390 1,741
Other 1,434 1,751
--------- ---------
Total noninterest income 20,341 19,590
--------- ---------
Noninterest expense:
Salaries and employee benefits 22,204 21,427
Office supplies and postage 1,542 1,530
Occupancy 4,152 4,165
Equipment 2,100 2,022
Professional fees and outside services 2,284 2,722
Data processing and communications 3,218 3,295
Amortization of intangible assets 781 813
Loan collection and other real estate owned 1,059 748
FDIC expenses 1,553 1,529
Other operating 3,267 4,054
--------- ---------
Total noninterest expense 42,160 42,305
--------- ---------
Income before income taxes 19,739 18,946
Income taxes 5,763 5,874
--------- ---------
Net income $ 13,976 $ 13,072
--------- ---------
Earnings Per Share:
Basic $ 0.41 $ 0.40
Diluted $ 0.41 $ 0.40
========= =========
NBT Bancorp Inc. and
Subsidiaries
Quarterly Consolidated
Statements of Income 1Q 4Q 3Q 2Q 1Q
(unaudited) 2010 2009 2009 2009 2009
--------- -------- --------- --------- ---------
(in thousands, except per
share data)
Interest, fee and
dividend income:
Loans and leases $ 53,692 $ 55,361 $ 54,666 $ 54,886 $ 55,411
Securities available for
sale 10,046 10,810 11,116 11,671 12,375
Securities held to
maturity 1,137 1,212 1,239 1,209 1,234
Other 596 621 615 606 361
--------- -------- --------- --------- ---------
Total interest, fee and
dividend income 65,471 68,004 67,636 68,372 69,381
--------- -------- --------- --------- ---------
Interest expense:
Deposits 8,454 9,532 12,002 13,123 13,839
Short-term borrowings 124 139 142 124 147
Long-term debt 5,065 5,673 5,761 5,998 6,197
Trust preferred
debentures 1,027 1,036 1,049 1,076 1,086
--------- -------- --------- --------- ---------
Total interest expense 14,670 16,380 18,954 20,321 21,269
--------- -------- --------- --------- ---------
Net interest income 50,801 51,624 48,682 48,051 48,112
Provision for loan and
lease losses 9,243 8,641 9,101 9,199 6,451
--------- -------- --------- --------- ---------
Net interest income after
provision for loan and
lease losses 41,558 42,983 39,581 38,852 41,661
--------- -------- --------- --------- ---------
Noninterest income:
Trust 1,766 1,881 1,668 1,761 1,409
Service charges on
deposit accounts 6,130 6,808 7,110 6,950 6,297
ATM and debit card fees 2,367 2,346 2,443 2,368 2,182
Insurance revenue 5,245 3,799 4,368 4,220 5,338
Net securities
gains/(losses) 28 (2) 129 17 -
Bank owned life insurance
income 981 910 683 670 872
Retirement plan
administration fees 2,390 2,739 2,412 2,194 1,741
Other 1,434 1,365 2,037 1,665 1,751
--------- -------- --------- --------- ---------
Total noninterest
income 20,341 19,846 20,850 19,845 19,590
--------- -------- --------- --------- ---------
Noninterest expense:
Salaries and employee
benefits 22,204 22,919 21,272 19,947 21,427
Office supplies and
postage 1,542 1,472 1,426 1,429 1,530
Occupancy 4,152 3,608 3,481 3,610 4,165
Equipment 2,100 2,115 1,997 2,005 2,022
Professional fees and
outside services 2,284 2,688 2,691 2,407 2,722
Data processing and
communications 3,218 3,314 3,305 3,324 3,295
Amortization of
intangible assets 781 781 827 825 813
Loan collection and other
real estate owned 1,059 589 755 674 748
FDIC expenses 1,553 1,312 1,535 4,032 1,529
Other operating 3,267 6,492 3,743 3,686 4,054
--------- -------- --------- --------- ---------
Total noninterest
expense 42,160 45,290 41,032 41,939 42,305
--------- -------- --------- --------- ---------
Income before income
taxes 19,739 17,539 19,399 16,758 18,946
Income taxes 5,763 3,738 5,821 5,198 5,874
--------- -------- --------- --------- ---------
Net income $ 13,976 $ 13,801 $ 13,578 $ 11,560 $ 13,072
========= ======== ========= ========= =========
Earnings per share:
Basic $ 0.41 $ 0.40 $ 0.40 $ 0.34 $ 0.40
Diluted $ 0.41 $ 0.40 $ 0.40 $ 0.34 $ 0.40
========= ======== ========= ========= =========
Three months ended
March 31,
------------------------- -------------------------
2010 2009
(dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rates Balance Interest Rates
---------- ------- ------ ---------- ------- ------
ASSETS
Short-term interest
bearing accounts $ 124,018 $ 67 0.22% $ 2,684 $ 13 1.96%
Securities available
for sale
(1)(excluding
unrealized gains or
losses) 1,088,604 10,781 4.02% 1,089,512 13,114 4.88%
Securities held to
maturity (1) 155,800 1,714 4.46% 138,700 1,861 5.44%
Investment in FRB and
FHLB Banks 34,728 529 6.17% 38,852 349 3.64%
Loans and leases (2) 3,640,137 53,880 6.00% 3,658,682 55,626 6.17%
---------- ------- ---------- -------
Total interest
earning assets $5,043,287 $66,971 5.39% $4,928,430 $70,963 5.84%
------- -------
Other assets 446,257 423,046
---------- ----------
Total assets $5,489,544 $5,351,476
---------- ----------
LIABILITIES AND
STOCKHOLDERS' EQUITY
Money market deposit
accounts $1,093,986 $ 1,896 0.70% $ 942,223 $ 3,109 1.34%
NOW deposit accounts 722,179 822 0.46% 550,241 786 0.58%
Savings deposits 532,677 193 0.15% 478,033 210 0.18%
Time deposits 1,027,343 5,543 2.19% 1,342,097 9,734 2.94%
---------- ------- ---------- -------
Total interest
bearing deposits $3,376,185 $ 8,454 1.02% $3,312,594 $13,839 1.69%
Short-term borrowings 157,255 124 0.32% 148,448 147 0.40%
Trust preferred
debentures 75,422 1,027 5.52% 75,422 1,086 5.84%
Long-term debt 526,326 5,065 3.90% 631,238 6,197 3.98%
---------- ------- ---------- -------
Total interest
bearing
liabilities $4,135,188 $14,670 1.44% $4,167,702 $21,269 2.07%
------- -------
Demand deposits 759,533 680,835
Other liabilities 81,649 66,254
Stockholders' equity 513,174 436,685
---------- ----------
Total liabilities and
stockholders' equity $5,489,544 $5,351,476
---------- ----------
Net interest income
(FTE) 52,301 49,694
------- -------
Interest rate spread 3.95% 3.77%
Net interest margin 4.21% 4.09%
Taxable equivalent
adjustment 1,500 1,582
------- -------
Net interest income $50,801 $48,112
(1) Securities are shown at average amortized cost
(2) For purposes of these computations, nonaccrual loans are included in
the average loan balances outstanding
NBT Bancorp Inc. and Subsidiaries
Loans and Leases (Unaudited)
March 31, December
(In thousands) 2010 31, 2009
----------- -----------
Residential real estate mortgages $ 607,201 $ 622,898
Commercial 588,428 581,870
Commercial real estate mortgages 744,215 718,235
Real estate construction and development 76,864 76,721
Agricultural and agricultural real estate mortgages 119,520 122,466
Consumer 850,380 856,956
Home equity 594,610 603,585
Lease financing 56,404 62,667
----------- -----------
Total loans and leases $ 3,637,622 $ 3,645,398
=========== ===========
Contact: Martin A. Dietrich CEO Michael J. Chewens CFO NBT Bancorp Inc. 52 South Broad Street Norwich, NY 13815 607-337-6119
SOURCE: NBT Bancorp Inc.