NBT Bancorp Inc. Announces Year-to-Date Net Income of $44.2 Million, Up 2.8% From Last Year; Declares Cash Dividend; Closes Previously Announced Massachusetts Branch Deal
NORWICH, N.Y., Oct 24, 2011 (GlobeNewswire via COMTEX) --
NBT Bancorp Inc. (NBT) (Nasdaq:NBTB) reported today net income for the nine months ended September 30, 2011 was $44.2 million, up $1.2 million, or 2.8%, from the nine months ended September 30, 2010. Net income per diluted share for the nine months ended September 30, 2011 was $1.29 per share, up from $1.25 per diluted share for the nine months ended September 30, 2010. Annualized return on average assets and return on average equity were 1.09% and 10.95%, respectively, for the nine months ended September 30, 2011, compared with 1.05% and 11.01%, respectively, for the nine months ended September 30, 2010. Net interest margin (on a fully taxable equivalent basis ("FTE")) was 4.13% for the nine months ended September 30, 2011, down 4 basis points ("bps") from 4.17% for the nine months ended September 30, 2010.
Net income for the three months ended September 30, 2011 was $15.2 million, up $0.6 million, or 4.4%, from the three months ended September 30, 2010. Net income per diluted share for the three months ended September 30, 2011 was $0.45 per share, up from $0.42 per diluted share for the three months ended September 30, 2010. Annualized return on average assets and return on average equity were 1.12% and 11.21%, respectively, for the three months ended September 30, 2011, compared with 1.07% and 10.89%, respectively, for the three months ended September 30, 2010. Net interest margin (FTE) was 4.14% for the three months ended September 30, 2011, down slightly from 4.15% for the three months ended September 30, 2010.
Key items for 2011 include:
-- Diluted earnings per share of $1.29 for the first nine months of 2011
was the second highest in the Company's history; second to $1.34 for the
same period in 2008.
-- Net interest margin was 4.13% for the first nine months of 2011, down
from 4.17% for the same period of 2010, a result of the continued low
rate environment on loans and investments.
-- Net charge-offs were 0.55% of average loans and leases for the first
nine months of 2011, down 10 bps from the first nine months of 2010;
provision for loan and lease losses was down $7.9 million for the same
period.
-- Continued strategic expansion with the successful acquisition and
conversion of four branches in Berkshire County, Massachusetts on
October 21, 2011.
"Through our ongoing focus on our customers and our people, we have again delivered a strong performance with near-record earnings for the first three quarters of the year," said NBT President and CEO Marty Dietrich. "We also continue to seek out opportunities for strategic investments to secure our future success, including enhancements to our branch banking network. In the past four weeks, we have opened a total of seven new NBT Bank locations, including our Utica Financial Center and new branch offices in Binghamton, N.Y. and Essex, Vt. Today marks our first day of business in the state of Massachusetts with the successful acquisition and conversion of four new locations in Berkshire County. We're pleased to expand delivery of our unique brand of community banking in and to these markets and are confident the efforts of our banking professionals will be well received."
Loan and Lease Quality and Provision for Loan and Lease Losses
The provision for loan and lease losses was $15.2 million for the first nine months of 2011, down $7.9 million from the $23.1 million recorded in the first nine months of 2010. Net charge-offs were $15.1 million for the first nine months of 2011 representing 0.55% (annualized) of average loans and leases for the period versus $17.8 million, or 0.65% (annualized) of average loans and leases for the first nine months of 2010.
The provision for loan and lease losses was $5.2 million for the third quarter of 2011, down from $7.5 million recorded in the third quarter of 2010. Net charge-offs were $4.3 million for the third quarter of 2011 representing 0.47% (annualized) of average loans and leases for the quarter versus $6.0 million, or 0.65% (annualized) of average loans and leases for the third quarter of 2010. While there has been general improvement in asset quality indicators, the current quarter provision includes additional provisions as a result of the September flooding in the Company's geographic footprint.
Nonperforming loans were $44.3 million at September 30, 2011, down slightly from $44.8 million at December 31, 2010. Past due loans were down to 0.68% of total loans at September 30, 2011 from 0.86% at December 31, 2010. The allowance for loan and lease losses was $71.3 million at September 30, 2011, relatively flat compared to $71.2 million at December 31, 2010. The allowance for loan and lease losses represented 1.92% of loans and leases at September 30, 2011, compared to 1.97% at December 31, 2010.
Net Interest Income
Net interest income was $149.8 million for the nine months ended September 30, 2011, down 1.5% compared with $152.0 million for the nine months ended September 30, 2010. The Company's FTE net interest margin was 4.13% for the nine months ended September 30, 2011, down from 4.17% for the nine months ended September 30, 2010.
While the yield on interest bearing liabilities decreased 31 bps, the yield on interest earning assets declined 33 bps, resulting in slight margin compression for the nine months ended September 30, 2011, compared to the same period for 2010. The yield on securities available for sale was 3.06% for the nine months ended September 30, 2011, as compared with 3.74% for the nine months ended September 30, 2010. The yield on loans and leases was 5.63% for the nine months ended September 30, 2011, as compared with 5.92% for the nine months ended September 30, 2010. The yield on time deposits was 1.83% for the nine months ended September 30, 2011, as compared with 2.10% for the nine months ended September 30, 2010. The yield on money market deposit accounts was 0.37% for the nine months ended September 30, 2011, as compared with 0.62% for the nine months ended September 30, 2010.
Net interest income was $50.4 million for the three months ended September 30, 2011, down 0.5% compared with $50.6 million for the three months ended September 30, 2010. The Company's FTE net interest margin was 4.14% for the three months ended September 30, 2011, down slightly from 4.15% for the three months ended September 30, 2010.
While the yield on interest bearing liabilities decreased 28 bps, the yield on interest earning assets declined 27 bps, resulting in a fairly stable margin for the three months ended September 30, 2011 as compared with the three months ended September 30, 2010. The yield on securities available for sale was 2.95% for the three months ended September 30, 2011, as compared with 3.49% for the three months ended September 30, 2010. The yield on loans and leases was 5.51% for the three months ended September 30, 2011, as compared with 5.85% for the three months ended September 30, 2010. The yield on time deposits was 1.75% for the three months ended September 30, 2011, as compared with 2.00% for the three months ended September 30, 2010. The yield on money market deposit accounts was 0.31% for the three months ended September 30, 2011, as compared with 0.53% for the three months ended September 30, 2010.
Noninterest Income
Noninterest income for the nine months ended September 30, 2011 was $60.2 million, down slightly from $61.7 million for the same period in 2010. Insurance and other financial services revenue increased approximately $1.4 million for the nine months ended September 30, 2011, as compared to the nine months ended September 30, 2010, due primarily to the acquisition of an insurance agency during the second quarter of 2011 and an increase in brokerage commission revenue due to new business. ATM and debit card fees increased approximately $1.2 million for the nine months ended September 30, 2011, as compared to the nine months ended September 30, 2010 due to an increase in card usage as well as a change in the fee structure on foreign ATM transactions. Trust revenue increased approximately $0.9 million for the nine months ended September 30, 2011, as compared to the nine months ended September 30, 2010, due primarily to the addition of new business generated from markets where we have recently expanded, and an increase in the fair market value of trust assets under administration. These increases were offset by a decrease in service charges on deposit accounts of approximately $2.3 million, or 12.6%, for the nine months ended September 30, 2011, as compared with the same period in 2010. The decrease in service charges was the result of a decrease in overdraft activity due to the effects of implementing new regulations regarding overdraft fees in the third quarter of 2010, as well as the current state of the economy. In addition, retirement plan administration fees decreased by $0.9 million, or 11.4%, for the nine months ended September 30, 2011 as compared to the same period in 2010, driven by the loss of one client in the fourth quarter of 2010. This decrease was partially offset by increases from new business and market-based fees during 2011. Net securities gains decreased by $1.1 million for the nine months ended September 30, 2011 as compared to the same period in 2010 due to gains on certain securities sales in 2010.
Noninterest income for the three months ended September 30, 2011 was $20.2 million, down slightly from $21.0 million for the same period in 2010. Insurance and other financial services revenue increased approximately $0.5 million for the three months ended September 30, 2011, as compared to the three months ended September 30, 2010, due primarily to the aforementioned acquisition of an insurance agency during the second quarter of 2011. ATM and debit card fees also increased approximately $0.5 million for the three months ended September 30, 2011, as compared to the three months ended September 30, 2010 due to an increase in card usage as well as a change in the fee structure on foreign ATM transactions. Trust revenue increased approximately $0.3 million for the three months ended September 30, 2011, as compared to the three months ended September 30, 2010, due primarily to the addition of new business generated from markets where we have recently expanded, and an increase in the fair market value of trust assets under administration. These increases were offset by a decrease in service charges on deposit accounts of approximately $0.4 million, or 7.1%, for the three months ended September 30, 2011, as compared with the same period in 2010. The decrease in service charges was the result of a decrease in overdraft activity due to the current state of the economy. In addition, retirement plan administration fees decreased by $0.3 million, or 12.1%, for the three months ended September 30, 2011 as compared to the same period in 2010, driven by the loss of one client in the fourth quarter of 2010. This decrease was partially offset by increases from new business and market-based fees during 2011. Net securities gains decreased by $1.1 million for the three months ended September 30, 2011 as compared to the same period in 2010 due to gains on certain securities sales during the third quarter of 2010.
Noninterest Expense and Income Tax Expense
Noninterest expense for the nine months ended September 30, 2011 was $133.3 million, up from $131.0 million, or 1.7%, for the same period in 2010. Salaries and employee benefits increased $3.6 million, or 5.1%, for the nine months ended September 30, 2011, compared with the same period in 2010. This increase was due primarily to increases in full-time-equivalent employees, merit increases and other employee benefits. In addition, occupancy expenses increased approximately $0.9 million for the nine months ended September 30, 2011, as compared to the same period in 2010, primarily due to continued branch expansion and expenses related to the harsh winter. Other operating expenses increased approximately $0.9 million for the nine months ended September 30, 2011, as compared to the same period in 2010, primarily as a result of flood and merger related expenses during the third quarter of 2011. These increases were partially offset by a decrease in Federal Deposit Insurance Corporation (FDIC) premium expenses of approximately $1.4 million for the first nine months of 2011 as compared to the same period in 2010 due to the FDIC redefining the deposit insurance assessment base. In addition, the Company incurred a debt prepayment penalty of $1.2 million to pay off long-term debt during the third quarter of 2010, while no prepayment penalties were incurred for the same period in 2011. Data processing and communications expenses decreased approximately $0.4 million for the nine months ended September 30, 2011, as compared to the nine months ended September 30, 2010. This decrease was due to the renegotiation of a data processing contract resulting in a decrease in processing fees. In addition, loan collection and other real estate owned expenses decreased approximately $0.4 million for the nine months ended September 30, 2011, as compared to the nine months ended September 30, 2010, due primarily to a reduction in properties classified as other real estate owned resulting in a reduction in maintenance expenses on those properties. Income tax expense for the nine month period ended September 30, 2011 was $17.4 million, up from $16.5 million for the same period in 2010. The effective tax rate was 28.2% for the nine months ended September 30, 2011, as compared to 27.8% for the same period in 2010.
Noninterest expense for the three months ended September 30, 2011 was $45.0 million, up slightly from $44.7 million, or 0.8%, for the same period in 2010. Salaries and employee benefits increased $1.0 million, or 4.1%, for the three months ended September 30, 2011, compared with the same period in 2010. This increase was due primarily to increases in full-time-equivalent employees, merit increases and other employee benefits. Other operating expenses increased approximately $0.6 million for the three months ended September 30, 2011, as compared to the same period in 2010, primarily as a result of flood and merger related expenses during the third quarter of 2011. These increases were offset by a decrease in FDIC premium expenses of approximately $0.7 million for the three months ended September 30, 2011 as compared to the same period in 2010, due to the aforementioned redefined deposit insurance assessment base. In addition, the Company incurred a debt prepayment penalty of $1.2 million to pay off long-term debt during the third quarter of 2010, while no prepayment penalties were incurred for the same period in 2011. Income tax expense for the three month period ended September 30, 2011 was $5.1 million, up from $4.8 million for the same period in 2010. The effective tax rate was 25.2% for the three months ended September 30, 2011, as compared to 24.9% for the same period in 2010. During the three months ended September 30, 2011, a reduction in the Company's tax provision was driven by a reduction of tax reserves of $0.8 million, no longer required due to the expiration of the related statute of limitations.
Balance Sheet
Total assets were $5.5 billion at September 30, 2011 and $5.3 billion at December 31, 2010. Loans and leases were $3.7 billion at September 30, 2011, up $98.1 million from December 31, 2010. Total deposits were $4.3 billion at September 30, 2011, up $130.7 million from December 31, 2010. Stockholders' equity was $538.8 million, representing a total equity-to-total assets ratio of 9.84% at September 30, 2011, compared with $533.6 million or a total equity-to-total assets ratio of 9.99% at December 31, 2010.
Stock Repurchase Program
Under previously disclosed stock repurchase plans, the Company purchased 1,458,609 shares of its common stock during the nine month period ended September 30, 2011, for a total of $30.5 million at an average price of $20.91 per share. On July 25, 2011, the NBT Board of Directors authorized a new repurchase program for NBT to repurchase up to 1,000,000 shares (approximately 3%) of its outstanding common stock, effective July 25, 2011, as market conditions warrant in open market and privately negotiated transactions. At September 30, 2011, there were 517,581 shares available for repurchase under this plan, which expires on December 31, 2013. On October 24, 2011, the NBT Board of Directors authorized a new repurchase program for NBT to repurchase up to an additional 1,000,000 shares (approximately 3%) of its outstanding common stock, effective October 24, 2011, as market conditions warrant in open market and privately negotiated transactions. This plan expires on December 31, 2013.
Dividend Declared
The NBT Board of Directors declared a 2011 fourth-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on December 15, 2011 to shareholders of record as of December 1, 2011.
Branch Acquisition
On October 21, 2011, NBT Bank, N.A. ("NBT Bank"), the wholly owned national bank subsidiary of NBT Bancorp Inc., acquired from Berkshire Hills Bancorp, Inc. ("Berkshire Hills") approximately $147 million of deposits, $46 million in loans and four Berkshire County, Massachusetts bank branches located in the towns of Great Barrington, Lee, Pittsfield, and North Adams.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $5.5 billion at September 30, 2011. The company primarily operates through NBT Bank, N.A., a full-service community bank with two divisions, and through two financial services companies. As of the date of this release, NBT Bank, N.A. has 129 locations, including 86 NBT Bank offices in upstate New York, four NBT Bank offices in Berkshire County, Massachusetts, three NBT Bank offices in northwestern Vermont and 36 Pennstar Bank offices in northeastern Pennsylvania . EPIC Advisors, Inc., based in Rochester, N.Y., is a full-service 401(k) plan recordkeeping firm. Mang Insurance Agency, LLC, based in Norwich, N.Y., is a full-service insurance agency. More information about NBT and its divisions can be found on the Internet at: www.nbtbancorp.com, www.nbtbank.com, www.pennstarbank.com, www.epic1st.com and www.manginsurance.com.
Forward-Looking Statements
This news release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of NBT Bancorp and its subsidiaries and on the information available to management at the time that these statements were made. There are a number of factors, many of which are beyond NBT's control, that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which NBT is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than NBT; and (7) adverse changes may occur in the securities markets or with respect to inflation. Forward-looking statements speak only as of the date they are made. Except as required by law, NBT does not undertake to update forward-looking statements to reflect subsequent circumstances or events.
NBT Bancorp Inc. and
Subsidiaries
SELECTED FINANCIAL
HIGHLIGHTS
(unaudited)
Percent
Net
2011 2010 Change Change
------------ ---------- --------- -------
(dollars in thousands,
except per share data)
Three Months Ended September
30,
Net Income $15,217 $14,570 $647 4%
Diluted Earnings Per Share $0.45 $0.42 $0.03 7%
Weighted Average Diluted
Common Shares Outstanding 33,567,564 34,512,724 (945,160) -3%
Return on Average Assets (1) 1.12% 1.07% 5 bp 5%
Return on Average Equity (1) 11.21% 10.89% 32 bp 3%
Net Interest Margin (2) 4.14% 4.15% -1 bp 0%
------------------------------ ------------ ---------- --------- -------
Nine Months Ended September
30,
Net Income $44,179 $42,970 $1,209 3%
Diluted Earnings Per Share $1.29 $1.25 $0.04 3%
Weighted Average Diluted
Common Shares Outstanding 34,159,833 34,482,097 (322,264) -1%
Return on Average Assets 1.09% 1.05% 4 bp 4%
Return on Average Equity 10.95% 11.01% -6 bp -1%
Net Interest Margin (2) 4.13% 4.17% -4 bp -1%
------------------------------ ------------ ---------- --------- -------
September December
30, 31,
Asset Quality 2011 2010
------------ ----------
Nonaccrual Loans $39,752 $42,467
90 Days Past Due and Still
Accruing $4,525 $2,325
Total Nonperforming Loans $44,277 $44,792
Other Real Estate Owned $650 $901
Total Nonperforming Assets $44,927 $45,693
Past Due Loans $25,046 $31,004
Potential Problem Loans $96,688 $82,247
Allowance for Loan and Lease
Losses $71,334 $71,234
Year-to-Date (YTD) Net
Charge-Offs $15,061 $25,125
Allowance for Loan and Lease
Losses to Total Loans and
Leases 1.92% 1.97%
Total Nonperforming Loans to
Total Loans and Leases 1.19% 1.24%
Total Nonperforming Assets to
Total Assets 0.82% 0.86%
Past Due Loans to Total Loans
and Leases 0.68% 0.86%
Allowance for Loan and Lease
Losses to Total Nonperforming
Loans 161.11% 159.03%
Net Charge-Offs to YTD Average
Loans and Leases 0.55% 0.69%
------------------------------ ------------ ---------- --------- -------
Capital
Equity to Assets 9.84% 9.99%
Book Value Per Share $16.28 $15.51
Tangible Book Value Per Share $12.24 $11.67
Tier 1 Leverage Ratio 9.21% 9.16%
Tier 1 Capital Ratio 12.00% 12.44%
Total Risk-Based Capital Ratio 13.25% 13.70%
------------------------------ ------------ ---------- --------- -------
Quarterly Common Stock Price 2011 2010
------------------------------ ------------------------ ------------------
Quarter End High Low High Low
------------ ---------- --------- -------
March 31 $24.98 $21.55 $23.99 $19.15
June 30 $23.32 $20.62 $25.96 $20.21
September 30 $23.25 $17.05 $23.06 $19.27
December 31 $24.96 $21.41
------------------------------ ------------ ---------- --------- -------
(1) Annualized
(2) Calculated on a FTE basis
NBT Bancorp Inc. and
Subsidiaries
SELECTED FINANCIAL
HIGHLIGHTS
(unaudited)
September December Percent
30, 31, Net
2011 2010 Change Change
------------ ---------- ---------- -------
(dollars in thousands,
except per share data)
Balance Sheet
Loans and Leases $3,708,090 $3,610,006 $98,084 3%
Earning Assets $5,015,891 $4,914,972 $100,919 2%
Total Assets $5,478,451 $5,338,856 $139,595 3%
Deposits $4,265,064 $4,134,352 $130,712 3%
Stockholders' Equity $538,848 $533,572 $5,276 1%
--------------------------- ------------ ---------- ---------- -------
2011 2010
------------ ----------
(dollars in thousands,
Average Balances except per share data)
Three Months Ended
September 30,
Loans and Leases $3,686,693 $3,631,637 $55,056
Securities Available For
Sale
(excluding unrealized gains
or losses) $1,120,083 $1,052,985 $67,098
Securities Held To Maturity $74,482 $111,140 ($36,658)
Trading Securities $3,214 $2,513 $701
Regulatory Equity
Investment $27,022 $30,638 ($3,616)
Short-Term Interest Bearing
Accounts $25,088 $132,734 ($107,646)
Total Earning Assets $4,933,368 $4,959,134 ($25,766)
Total Assets $5,375,643 $5,396,676 ($21,033)
Interest Bearing Deposits $3,165,920 $3,281,560 ($115,640)
Non-Interest Bearing
Deposits $983,318 $827,358 $155,960
Short-Term Borrowings $172,370 $159,480 $12,890
Long-Term Borrowings $445,771 $520,103 ($74,332)
Total Interest Bearing
Liabilities $3,784,061 $3,961,143 ($177,082)
Stockholders' Equity $538,404 $530,585 $7,819
--------------------------- ------------ ---------- ----------
Average Balances
Nine Months Ended September
30,
Loans and Leases $3,650,667 $3,637,532 $13,135
Securities Available For
Sale
(excluding unrealized gains
or losses) $1,105,777 $1,085,171 $20,606
Securities Held To Maturity $84,660 $138,339 ($53,679)
Trading Securities $3,129 $2,515 $614
Regulatory Equity
Investment $27,112 $32,840 ($5,728)
Short-Term Interest Bearing
Accounts $97,973 $121,211 ($23,238)
Total Earning Assets $4,966,189 $5,015,093 ($48,904)
Total Assets $5,395,148 $5,455,845 ($60,697)
Interest Bearing Deposits $3,248,317 $3,343,001 ($94,684)
Non-Interest Bearing
Deposits $940,332 $789,160 $151,172
Short-Term Borrowings $153,857 $156,248 ($2,391)
Long-Term Borrowings $445,352 $566,044 ($120,692)
Total Interest Bearing
Liabilities $3,847,526 $4,065,293 ($217,767)
Stockholders' Equity $539,322 $521,861 $17,461
--------------------------- ------------ ---------- ----------
NBT Bancorp Inc. and
Subsidiaries September 30, December 31,
Consolidated Balance Sheets
(unaudited) 2011 2010
---------------------------- ------------- -------------
(in thousands)
ASSETS
Cash and due from banks $ 121,976 $ 99,673
Short term interest bearing
accounts 69,969 69,119
Securities available for
sale, at fair value 1,169,552 1,129,368
Securities held to maturity
(fair value of $74,448and
$98,759 at September 30,
2011 and December 31, 2010,
respectively) 72,959 97,310
Trading securities 2,965 2,808
Federal Reserve and Federal
Home Loan Bank stock 27,020 27,246
Loans and leases 3,708,090 3,610,006
Less allowance for loan and
lease losses 71,334 71,234
---------------------------- ------------- -------------
Net loans and leases 3,636,756 3,538,772
Premises and equipment, net 69,092 67,404
Goodwill 116,127 114,841
Intangible assets, net 17,620 17,543
Bank owned life insurance 77,669 75,301
Other assets 96,746 99,471
---------------------------- ------------- -------------
TOTAL ASSETS $ 5,478,451 $ 5,338,856
---------------------------- ------------- -------------
LIABILITIES AND
STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest
bearing) $ 1,028,553 $ 911,741
Savings, NOW, and money
market 2,365,359 2,291,833
Time 871,152 930,778
---------------------------- ------------- -------------
Total deposits 4,265,064 4,134,352
Short-term borrowings 158,285 159,434
Long-term debt 370,347 369,874
Trust preferred debentures 75,422 75,422
Other liabilities 70,485 66,202
---------------------------- ------------- -------------
Total liabilities 4,939,603 4,805,284
Total stockholders' equity 538,848 533,572
---------------------------- ------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 5,478,451 $ 5,338,856
---------------------------- ------------- -------------
Three Months Ended Nine Months Ended
NBT Bancorp Inc. and
Subsidiaries September 30, September 30,
Consolidated Statements of
Income (unaudited) 2011 2010 2011 2010
----------------------------- ---------- --------- ----------- ----------
(in thousands, except per
share data)
Interest, fee and dividend
income:
Loans and leases $ 50,991 $ 53,301 $ 152,977 $ 160,496
Securities available for sale 7,771 8,621 23,622 28,223
Securities held to maturity 680 908 2,225 3,123
Other 342 482 1,275 1,547
----------------------------- ---------- --------- ----------- ----------
Total interest, fee and
dividend income 59,784 63,312 180,099 193,389
----------------------------- ---------- --------- ----------- ----------
Interest expense:
Deposits 5,352 7,174 17,690 23,627
Short-term borrowings 56 91 166 338
Long-term debt 3,621 4,374 10,783 14,289
Trust preferred debentures 394 1,046 1,683 3,106
----------------------------- ---------- --------- ----------- ----------
Total interest expense 9,423 12,685 30,322 41,360
----------------------------- ---------- --------- ----------- ----------
Net interest income 50,361 50,627 149,777 152,029
Provision for loan and lease
losses 5,175 7,529 15,161 23,122
----------------------------- ---------- --------- ----------- ----------
Net interest income after
provision for loan and lease
losses 45,186 43,098 134,616 128,907
----------------------------- ---------- --------- ----------- ----------
Noninterest income:
Trust 2,090 1,786 6,384 5,461
Service charges on deposit
accounts 5,532 5,953 16,059 18,384
ATM and debit card fees 3,135 2,660 8,731 7,489
Insurance and other financial
services revenue 5,127 4,595 15,925 14,540
Net securities gains 12 1,120 98 1,211
Bank owned life insurance
income 674 655 2,369 2,444
Retirement plan
administration fees 2,295 2,612 6,734 7,597
Other 1,329 1,610 3,881 4,526
----------------------------- ---------- --------- ----------- ----------
Total noninterest income 20,194 20,991 60,181 61,652
----------------------------- ---------- --------- ----------- ----------
Noninterest expense:
Salaries and employee
benefits 25,068 24,090 74,107 70,518
Office supplies and postage 1,531 1,542 4,418 4,538
Occupancy 3,887 3,709 12,396 11,527
Equipment 2,288 2,053 6,658 6,194
Professional fees and outside
services 2,215 2,068 6,369 6,543
Data processing and
communications 3,054 2,971 9,085 9,454
Amortization of intangible
assets 782 767 2,286 2,328
Loan collection and other
real estate owned 676 548 1,838 2,275
Advertising 685 730 2,286 2,221
FDIC expenses 920 1,621 3,381 4,734
Prepayment penalty on
long-term debt -- 1,205 -- 1,205
Other operating 3,940 3,380 10,440 9,504
----------------------------- ---------- --------- ----------- ----------
Total noninterest expense 45,046 44,684 133,264 131,041
----------------------------- ---------- --------- ----------- ----------
Income before income taxes 20,334 19,405 61,533 59,518
Income taxes 5,117 4,835 17,354 16,548
----------------------------- ---------- --------- ----------- ----------
Net income $ 15,217 $ 14,570 $ 44,179 $ 42,970
----------------------------- ---------- --------- ----------- ----------
Earnings Per Share:
Basic $ 0.46 $ 0.42 $ 1.30 $ 1.25
Diluted $ 0.45 $ 0.42 $ 1.29 $ 1.25
----------------------------- ---------- --------- ----------- ----------
NBT Bancorp Inc. and
Subsidiaries 3Q 2Q 1Q 4Q 3Q
Quarterly Consolidated
Statements of Income
(unaudited) 2011 2011 2011 2010 2010
----------------------------- ---------- --------- --------- --------- ---------
(in thousands, except per
share data)
Interest, fee and dividend
income:
Loans and leases $ 50,991 $ 51,126 $ 50,860 $ 52,933 $ 53,301
Securities available for sale 7,771 7,947 7,904 7,944 8,621
Securities held to maturity 680 745 800 845 908
Other 342 440 493 627 482
----------------------------- ---------- --------- --------- --------- ---------
Total interest, fee and
dividend income 59,784 60,258 60,057 62,349 63,312
----------------------------- ---------- --------- --------- --------- ---------
Interest expense:
Deposits 5,352 6,051 6,287 6,727 7,174
Short-term borrowings 56 52 58 64 91
Long-term debt 3,621 3,591 3,571 4,025 4,374
Trust preferred debentures 394 400 889 1,034 1,046
----------------------------- ---------- --------- --------- --------- ---------
Total interest expense 9,423 10,094 10,805 11,850 12,685
----------------------------- ---------- --------- --------- --------- ---------
Net interest income 50,361 50,164 49,252 50,499 50,627
Provision for loan and lease
losses 5,175 6,021 3,965 6,687 7,529
----------------------------- ---------- --------- --------- --------- ---------
Net interest income after
provision for loan and lease
losses 45,186 44,143 45,287 43,812 43,098
----------------------------- ---------- --------- --------- --------- ---------
Noninterest income:
Trust 2,090 2,258 2,036 2,261 1,786
Service charges on deposit
accounts 5,532 5,455 5,072 5,657 5,953
ATM and debit card fees 3,135 2,928 2,668 2,546 2,660
Insurance and other financial
services revenue 5,127 5,025 5,773 4,327 4,595
Net securities gains 12 59 27 2,063 1,120
Bank owned life insurance
income 674 660 1,035 872 655
Retirement plan
administration fees 2,295 2,268 2,171 2,759 2,612
Other 1,329 1,208 1,344 1,751 1,610
----------------------------- ---------- --------- --------- --------- ---------
Total noninterest income 20,194 19,861 20,126 22,236 20,991
----------------------------- ---------- --------- --------- --------- ---------
Noninterest expense:
Salaries and employee
benefits 25,068 24,035 25,004 23,200 24,090
Office supplies and postage 1,531 1,342 1,545 1,564 1,542
Occupancy 3,887 3,987 4,522 3,823 3,709
Equipment 2,288 2,180 2,190 2,123 2,053
Professional fees and outside
services 2,215 2,088 2,066 2,489 2,068
Data processing and
communications 3,054 3,117 2,914 2,893 2,971
Amortization of intangible
assets 782 771 733 744 767
Loan collection and other
real estate owned 676 443 719 761 548
Advertising 685 1,033 568 1,266 730
FDIC expenses 920 965 1,496 1,347 1,621
Prepayment penalty on
long-term debt -- -- -- 3,321 1,205
Other operating 3,940 3,196 3,304 3,719 3,380
----------------------------- ---------- --------- --------- --------- ---------
Total noninterest expense 45,046 43,157 45,061 47,250 44,684
----------------------------- ---------- --------- --------- --------- ---------
Income before income taxes 20,334 20,847 20,352 18,798 19,405
Income taxes 5,117 6,192 6,045 4,364 4,835
----------------------------- ---------- --------- --------- --------- ---------
Net income $ 15,217 $ 14,655 $ 14,307 $ 14,434 $ 14,570
----------------------------- ---------- --------- --------- --------- ---------
Earnings per share:
Basic $ 0.46 $ 0.43 $ 0.42 $ 0.42 $ 0.42
Diluted $ 0.45 $ 0.43 $ 0.41 $ 0.42 $ 0.42
----------------------------- ---------- --------- --------- --------- ---------
Three Months ended September
30,
------------- ---------- ------ ------------- ---------- ------
Yield/ Yield/
Average 2011 Average 2010
(dollars in thousands) Balance Interest Rates Balance Interest Rates
------------------------------ ------------- ---------- ------ ------------- ---------- ------
ASSETS
Short-term interest bearing
accounts $25,088 $11 0.17% $132,734 $77 0.23%
Securities available for sale
(1)(excluding unrealized
gains or losses) 1,120,083 8,317 2.95% 1,052,985 9,258 3.49%
Securities held to maturity
(1) 74,482 1,026 5.46% 111,140 1,364 4.87%
Investment in FRB and FHLB
Banks 27,022 329 4.84% 30,638 405 5.23%
Loans and leases (2) 3,686,693 51,227 3,631,637 53,506
------------- ---------- 5.51% ------------- ---------- 5.85%
Total interest earning assets $ 4,933,368 $ 60,910 $ 64,610
---------- 4.90% $ 4,959,134 ---------- 5.17%
Other assets 442,275 437,542
------------- -------------
Total assets $ 5,375,643 $ 5,396,676
------------- -------------
LIABILITIES AND STOCKHOLDERS'
EQUITY
Money market deposit accounts $1,036,572 811 0.31% $1,078,771 $ 1,445 0.53%
NOW deposit accounts 631,284 483 0.30% 665,893 616 0.37%
Savings deposits 615,168 170 0.11% 564,847 217 0.15%
Time deposits 882,896 3,888 972,049 4,896
------------- ---------- 1.75% ------------- ---------- 2.00%
Total interest bearing
deposits $ 3,165,920 $ 5,352 0.67% $ 3,281,560 $ 7,174 0.87%
Short-term borrowings 172,370 56 0.13% 159,480 91 0.23%
Trust preferred debentures 75,422 394 2.07% 75,422 1,046 5.50%
Long-term debt 370,349 3,621 444,681 4,374
------------- ---------- 3.88% ------------- ---------- 3.90%
Total interest bearing
liabilities $ 3,784,061 $ 9,423 $ 12,685
---------- 0.99% $ 3,961,143 ---------- 1.27%
Demand deposits 983,318 827,358
Other liabilities 69,860 77,590
Stockholders' equity 538,404 530,585
------------- -------------
Total liabilities and
stockholders' equity $ 5,375,643 $5,396,676
------------- -------------
Net interest income (FTE) 51,487 51,925
---------- ----------
Interest rate spread 3.91% 3.90%
Net interest margin 4.14% 4.15%
Taxable equivalent adjustment 1,126 1,298
---------- ----------
Net interest income $ 50,361 $ 50,627
========== ==========
(1) Securities are shown at average amortized cost
(2) For purposes of these computations, nonaccrual loans are included in the average loan balances
outstanding
Nine Months ended September 30,
------------------------------------------------------------------------
Average 2011 Yield/ Average 2010 Yield/
(dollars in thousands) Balance Interest Rates Balance Interest Rates
--------------------------------------------------------------------------------------------------------
ASSETS
Short-term interest bearing
accounts $97,973 $191 0.26% $121,211 $219 0.24%
Securities available for sale
(1)(excluding unrealized gains
or losses) 1,105,777 25,330 3.06% 1,085,171 30,326 3.74%
Securities held to maturity (1) 84,660 3,353 5.29% 138,339 4,702 4.54%
Investment in FRB and FHLB Banks 27,112 1,084 5.34% 32,840 1,329 5.40%
Loans and leases (2) 3,650,667 153,678 3,637,532 161,097
---------------------------- 5.63%---------------------------- 5.92%
Total interest earning assets $ 4,966,189 $ 183,636 $ 197,673
------------- 4.94% $ 5,015,093------------- 5.27%
Other assets 428,959 440,752
--------------- ---------------
Total assets $ 5,395,148 $ 5,455,845
--------------- ---------------
LIABILITIES AND STOCKHOLDERS'
EQUITY
Money market deposit accounts $1,070,971 2,937 0.37% $1,100,904 $ 5,085 0.62%
NOW deposit accounts 667,012 1,745 0.35% 692,178 2,207 0.43%
Savings deposits 599,173 517 0.12% 551,662 623 0.15%
Time deposits 911,161 12,491 998,257 15,712
---------------------------- 1.83%---------------------------- 2.10%
Total interest bearing deposits $ 3,248,317 $ 17,690 0.73% $ 3,343,001 $ 23,627 0.94%
Short-term borrowings 153,857 166 0.14% 156,248 338 0.29%
Trust preferred debentures 75,422 1,683 2.98% 75,422 3,106 5.51%
Long-term debt 369,930 10,783 490,622 14,289
---------------------------- 3.90%---------------------------- 3.89%
Total interest bearing
liabilities $ 3,847,526 $ 30,322 $ 41,360
------------- 1.05% $ 4,065,293------------- 1.36%
Demand deposits 940,332 789,160
Other liabilities 67,968 79,531
Stockholders' equity 539,322 521,861
--------------- ---------------
Total liabilities and
stockholders' equity $ 5,395,148 $ 5,455,845
--------------- ---------------
Net interest income (FTE) 153,314 156,313
------------- -------------
Interest rate spread 3.89% 3.91%
Net interest margin 4.13% 4.17%
Taxable equivalent adjustment 3,537 4,284
------------- -------------
Net interest income $ 149,777 $ 152,029
============= =============
(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)
September December 31,
30,
(In thousands) 2011 2010
------------------------------------- ------------ ------------
Residential real estate mortgages $ 570,448 $ 548,394
Commercial 608,675 577,731
Commercial real estate mortgages 867,258 844,458
Real estate construction and
development 66,054 45,444
Agricultural and agricultural real
estate mortgages 105,747 112,738
Consumer 936,983 905,563
Home equity 552,925 575,678
------------ ------------
Total loans and leases $ 3,708,090 $ 3,610,006
============ ============
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: NBT Bancorp Inc.
CONTACT: Martin A. Dietrich, CEO
Michael J. Chewens, CFO
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
607-337-6119