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): October 23,
2006
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
October 23, 2006, NBT Bancorp Inc. issued a press release describing its results
of operations for the nine months and quarter ending September 30, 2006 as
well
as announcing a quarterly dividend of $0.19 per share to be paid on December
15,
2006 to shareholders of record on December 1, 2006. 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 October 23,
2006
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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 onits
behalfby 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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Chief
Financial Officer and Corporate
Secretary
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Date:
October 24, 2006
Page
1 of
10
FOR
IMMEDIATE RELEASE
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 Quarterly Earnings of $14.5 Million; Declares Cash
Dividend
NORWICH,
NY (October 23, 2006) - NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today
that net income for the quarter ended September 30, 2006 was $14.5 million,
up
7.5% or $1.0 million from net income of $13.5 million reported for the same
period in 2005. Net income per diluted share for the three months ended
September 30, 2006 was $0.43 per share, compared with $0.41 per share for the
same period in 2005. Return on average assets and return on average equity
were
1.15% and 14.89%, respectively, for the quarter ended September 30, 2006,
compared with 1.23% and 16.06% respectively, for the same period in 2005. The
increase in net income for the quarter ended September 30, 2006, was primarily
the result of a $1.0 million increase in net interest income and a $2.2 million
increase in noninterest income. In addition, the Company experienced a decrease
in the provision for loan and lease losses of $0.3 million for the quarter
ended
September 30, 2006, compared with the same period in 2005. The aforementioned
increases in income and reduction of the provision for loan and lease losses
were partially offset by a $1.3 million increase in noninterest expense.
Results
for the three months ended September 30, 2006, include $0.4 million in pre-tax
salaries and benefits expense related to stock options resulting from the
adoption on January 1, 2006, of Statement of Financial Accounting Standard
No.
123 (revised 2004) (FAS 123R) “Share-Based Payment,” which requires companies to
measure and recognize compensation expense for all share-based payments. The
adoption of FAS 123R lowered diluted earnings per share by $0.01 for the three
months ended September 30, 2006.
Net
income for the nine months ended September 30, 2006, was $42.3 million, up
7.2%
or $2.9 million from net income of $39.4 million reported for the same period
in
2005. Net income per diluted share for the nine month period ended September
30,
2006 was $1.24 per share, compared with $1.20 per share for the same period
in
2005. Return on average assets and return on average equity were 1.16% and
14.93%, respectively, for the nine months ended September 30, 2006, compared
with 1.23% and 16.03%, respectively, for the same period in 2005. The increase
in net income for the nine months ended September 30, 2006 was primarily the
result of a $4.3 million increase in net interest income and a $4.2 million
increase in noninterest income. In addition, the Company experienced a decrease
in the provision for loan and lease losses of $1.0 million for the nine months
ended September 30, 2006, compared with the same period in 2005. The
aforementioned increases in income were partially offset by a $5.9 million
increase in noninterest expense. Results
for the nine months ended September 30, 2006, include $1.4 million in pre-tax
salaries and benefits expense related to stock options resulting from the
adoption of FAS 123R on January 1, 2006. This lowered diluted earnings per
share
by $0.03 for the nine months ended September 30, 2006.
The
comparability of financial information is affected by the acquisition of CNB
Bancorp, Inc. (“CNB”). Operating results include the operations of CNB from the
date of acquisition, which was February 10, 2006.
Page
2 of
10
NBT
President and CEO Martin A. Dietrich said, “Despite the continuing flat/inverted
yield curve environment in our industry, we were able to sustain our growth
and
eclipse $5 billion in total assets during the quarter. While net interest
margins continue to tighten, we were able to post improved earnings due to
our
noninterest income and the growth of our earning assets. We overcame the effects
of the historic June flooding with minimal financial impact and minimal business
interruption due to the focus and commitment of our people.”
Loan
and Lease Quality and Provision for Loan and Lease Losses
Nonperforming
loans at September 30, 2006 were $14.5 million or 0.43% of total loans and
leases compared with $13.3 million or 0.44% of total loans and leases at
September 30, 2005 and $14.3 million or 0.47% of total loans and leases at
December 31, 2005. Annualized net charge-offs to average loans and leases for
the nine months ended September 30, 2006, were 0.21%, compared with the 0.19%
annualized ratio for the nine months ended September 30, 2005, and the ratio
for
the year ended December 31, 2005 of 0.23%. The Company’s allowance for loan and
lease losses was 1.50% of loans and leases at September 30, 2006, compared
with
1.58% at September 30, 2005, and 1.57% at December 31, 2005. The ratio of the
allowance for loan and lease losses to nonperforming loans was 350.49% at
September 30, 2006 compared with 356.85% at September 30, 2005, and 331.92%
at
December 31, 2005.
For
the
quarter and nine months ended September 30, 2006, the provision for loan and
lease losses totaled $2.5 million and $5.9 million, respectively, compared
with
the $2.8 million and $6.9 million for the same periods in 2005. The provision
for loan and lease losses has increased on a linked quarter basis due to a
slight deterioration in asset quality.
Net
Interest Income
Net
interest income was up 2.4% to $40.9 million for the quarter ended September
30,
2006, compared with $40.0 million for the same period a year ago. Despite a
decrease in the Company’s net interest margin, which was 3.60% for the quarter
ended September 30, 2006, down from 3.99% for the same period in 2005, the
increase in net interest income was attributable to 15% growth in average
earning assets. The growth in average earning assets was due primarily to the
acquisition of CNB. The Company’s net interest margin was 3.73% for the nine
months ended September 30, 2006, down from 4.04% for the same period in 2005.
Despite this decrease, net interest income for the nine months ended September
30, 2006, increased 3.7%, to $122.4 million from $118.1 million in the same
period for 2005, which was attributable to a 13% growth in average earning
assets due primarily to the acquisition of CNB. The
decline in the net interest margin is due largely to the effect from our
borrowings, money market accounts and time deposits repricing in the higher
interest rate environment. Earning assets, particularly those tied to a fixed
rate, have not realized the benefit of the higher interest rate environment,
since rates for earning assets with terms three years or longer have remained
relatively flat during this period. The Company anticipates that margin pressure
will persist into the next several quarters, given the flat/inverted yield
curve. If
the
yield curve remains flat or inverted, we expect net income to be relatively
flat
in 2007.
Noninterest
Income
Noninterest
income for the quarter ended September 30, 2006, was $12.5 million, up $2.1
million or 20.9% from $10.4 million for the same period in 2005. Fees
from
service charges on deposit accounts and ATM and debit cards collectively
increased $0.4 million from solid growth in demand deposit accounts and debit
card base. Retirement plan administration fees for the three months ended
September 30, 2006, increased $0.3 million, compared with the same period in
2005, as a result of our growing client base. Trust
administration income increased $0.1 million for the quarter ended September
30,
2006, compared with the same period in 2005. This increase stems from the
increased market value of accounts generating greater fees, an increase in
customer accounts as a result of the acquisition of CNB and successful business
development. Broker/dealer
and insurance revenue for the three months ended September 30, 2006, increased
$0.5 million in large part due to the growth in brokerage income from retail
financial services as well as the addition of Hathaway Insurance Agency as
part
of the acquisition of CNB. Net securities gains for the three months ended
September 30, 2006, were $7 thousand , compared to a $0.7 million loss in the
3rd
quarter
of 2005. This loss resulted from the sale of $25 million in securities available
for sale. Excluding the effect of these securities transactions, noninterest
income increased $1.4 million, or 12.8%, for the quarter ended September 30,
2006, compared with the same period in 2005.
Page
3 of
10
Noninterest
income for the nine months ended September 30, 2006, was $36.3 million, up
$4.2
million or 13.0% from $32.1 million for the same period in 2005. Fees
from
service charges on deposit accounts and ATM and debit cards increased $1.4
million from solid growth in demand deposit accounts. Retirement plan
administration fees for the nine months ended September 30, 2006, increased
$0.9
million, compared with the same period in 2005, as our client base grew.
Trust
administration income increased $0.4 million for the nine months ended September
30, 2006, compared with the same period in 2005, stemming from the increased
market value of accounts generating greater fees, an increase in customer
accounts as a result of the acquisition of CNB and successful business
development. For the nine months ended September 30, 2006, broker/dealer and
insurance revenue increased by $0.2 million, compared with the same period
in
2005. While the Company experienced growth
in
brokerage income from retail financial services and
acquired Hathaway Insurance Agency during the period in 2006, these increases
over 2005 were partially offset by the sale of M. Griffith, Inc. in the first
quarter of 2005. Other
noninterest income increased $1.2 million for the nine months ended September
30, 2006, compared with the same period in 2005, due primarily to increases
in
loan fees, mortgage banking income, and a gain on the sale of a branch during
the period. Included in noninterest income for the nine months ended September
30, 2006, and September 30, 2005, were $0.9 million and $0.7 million in net
losses, respectively, from investment securities sales. Excluding the effect
of
these securities transactions, noninterest income increased $4.4 million or
13.4% for the nine months ended September 30, 2006, compared with the same
period in 2005.
Noninterest
Expense and Income Tax Expense
Noninterest
expense for the quarter ended September 30, 2006, was $29.9 million, up from
$28.6 million for the same period in 2005. Office expenses such as supplies
and
postage, occupancy, equipment and data processing and communications charges
increased by $0.9 million for the quarter ended September 30, 2006, compared
with the same period in 2005. This 10.5% increase resulted primarily from the
acquisition of CNB Bancorp on February 10, 2006. Professional fees and services
increased $0.2 million for the quarter ended September 30, 2006, compared with
the same period in 2005. This increase was due to several factors, including
an
increase in courier service expenses due to the acquisition of CNB, as well
as
other increasing transportation costs. In addition, item processing fees during
the quarter ended September 30, 2006, increased over the same period in 2005
because the Company outsourced a portion of its item processing work as a result
of flood-related damage to one of its processing centers. Amortization expense
increased $0.3 million for the quarter ended September 30, 2006, over the same
period in 2005. This increase was due primarily to the acquisition of CNB.
Other
operating expense for the quarter ended September 30, 2006, decreased $0.3
million compared with the same period in 2005, primarily due to flood-related
insurance recoveries. Income tax expense for the quarter ended September 30,
2006, was $6.5 million, up from $5.4 million for the same period in 2005. The
effective rate for the quarter ended September 30, 2006, was 30.9%, up from
28.7% for the same period in 2005. The increase in the effective tax rate during
the third quarter of 2006 versus the same period in 2005 is due to the reversal
in the quarter ended September 30, 2005, of a previously accrued $0.7 million
liability that was determined to no longer be required.
Page
4 of
10
Noninterest
expense for the nine months ended September 30, 2006, was $92.1 million, up
from
$86.2 million for the same period in 2005. Salaries and employee benefits for
the nine months ended September 30, 2006, increased $1.6 million over the same
period in 2005, mainly from higher salaries from merit increases, the
acquisition of CNB and stock-based compensation costs associated with the
adoption of FAS 123R. Office expenses such as supplies and postage, occupancy,
equipment and data processing and communications charges increased by $2.0
million for the nine months ended September 30, 2006, compared with the same
period in 2005. This 7.9% increase resulted primarily from the overall growth
of
the Company as well as the acquisition of CNB Bancorp on February 10, 2006.
Professional fees and services increased $0.8 million for the nine months ended
September 30, 2006, compared with the same period in 2005. This increase was
due
to several factors, including an increase in courier service expenses due to
the
acquisition of CNB as well as increasing transportation costs. In addition,
item
processing fees during the nine months ended September 30, 2006, increased
over
the same period in 2005 because the Company outsourced a portion of its item
processing work as a result of flood-related damage to one of its processing
centers. In addition, legal fees incurred during the period increased over
the
same period in 2005 as the Company was reimbursed during the second quarter
of
2005 for legal fees associated with prior litigation. Amortization expense
increased $0.9 million for the nine months ended September 30, 2006, over the
same period in 2005. This increase was due primarily to the acquisition of
CNB.
Other operating expense for the nine months ended September 30, 2006, increased
$0.8 million compared with the same period in 2005, due to several factors
including flood related expenses, Pennstar advertising campaign, fixed asset
write-offs, increased contributions, and merger expenses incurred as a result
of
the acquisition of CNB. These expenses were partially offset by flood-related
insurance recoveries. Income tax expense for the nine months ended September
30,
2006, was $18.4 million, up from $17.7 million for the same period in 2005.
The
effective rate for the nine months ended September 30, 2006, was 30.3%, down
from 31.0% for the same period in 2005. The decrease in the effective tax rate
for the nine months ended September 30, 2006, resulted primarily from an
increase in interest income from tax-exempt sources.
Balance
Sheet
Total
assets were $5.1 billion at September 30, 2006, up $0.7 billion from $4.4
billion at September 30, 2005. Loans and leases increased $0.4 billion or 12%
from $3.0 billion at September 30, 2005, to $3.4 billion at September 30, 2006,
due in large part to the acquisition of CNB. In addition, loan growth was fueled
by solid production from consumer and commercial loan products. Total deposits
were $3.8 billion at September 30, 2006, up 18% from the same period at
September 30, 2005, also due in large part to the acquisition of CNB.
Stockholders’ equity was $399.5 million, representing total equity to total
assets of 7.90% at September 30, 2006, compared with $332.2 million or a total
equity to total asset ratio of 7.57% at September 30, 2005.
Stock
Repurchase Program
Under
previously disclosed stock repurchase plans, the Company purchased 27,500 shares
of its common stock during the quarter ended September 30, 2006, for a total
of
$0.6 million at an average price of $22.15 per share. For the nine-month period
ended September 30, 2006, the Company purchased 766,004 shares of its common
stock for a total of $17.1 million at an average price of $22.34 per share.
At
September 30, 2006, there were 737,147 shares available for repurchase under
previously announced plans.
Page
5 of
10
Dividend
Declared
The
NBT
Board of Directors declared a third-quarter cash dividend of $0.19 per share
at
a meeting held today. The dividend will be paid on December 15, 2006, to
shareholders of record as of December 1, 2006.
Corporate
Overview
NBT
is a
financial holding company headquartered in Norwich, NY, with total assets of
$5.1 billion at September 30, 2006. 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 118 locations, including 80
NBT
Bank offices in upstate New York and 38 Pennstar Bank offices in northeastern
Pennsylvania. EPIC Advisors, Inc., based in Rochester, NY, is a full-service
401(k) plan recordkeeping firm. Hathaway Insurance Agency, Inc., based in
Gloversville, 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.hathawayagency.com.
Forward-Looking
Statements
This
news
release contains forward-looking statements. These forward-looking statements
involve risks and uncertainties and are based on the beliefs and assumptions
of
the management of NBT Bancorp and its subsidiaries and on the information
available to management at the time that these statements were made. There
are a
number of factors, many of which are beyond NBT's control, that could cause
actual conditions, events or results to differ significantly from those
described in the forward-looking statements. Factors that may cause actual
results to differ materially from those contemplated by such forward-looking
statements include, among others, the following possibilities: (1) competitive
pressures among depository and other financial institutions may increase
significantly; (2) revenues may be lower than expected; (3) changes in the
interest rate environment may reduce interest margins; (4) general economic
conditions, either nationally or regionally, may be less favorable than
expected, resulting in, among other things, a deterioration in credit quality
and/or a reduced demand for credit; (5) legislative or regulatory changes,
including changes in accounting standards and tax laws, may adversely affect
the
businesses in which NBT is engaged; (6) competitors may have greater financial
resources and develop products that enable such competitors to compete more
successfully than NBT; (7) NBT may fail to realize projected cost savings,
revenue enhancements and the accretive effect of the CNB acquisition on our
earnings; and (8) adverse changes may occur in the securities markets or with
respect to inflation. Forward-looking statements speak only as of the date
they
are made. Except as required by law, NBT does not undertake to update
forward-looking statements to reflect subsequent circumstances or
events.
Page
6 of
10
NBT
Bancorp Inc. and Subsidiaries
SELECTED
FINANCIAL HIGHLIGHTS
(unaudited)
|
2006
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2005
|
Net
Change
|
Percent
Change
|
||||||||||
|
(dollars
in thousands, except per share data)
|
|||||||||||||
|
Three
Months Ended September 30,
|
|||||||||||||
|
Net
Income
|
$
|
14,542
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$
|
13,526
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$
|
1,016
|
8
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%
|
|||||
|
Diluted
Earnings Per Share
|
$
|
0.43
|
$
|
0.41
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$
|
0.02
|
5
|
%
|
|||||
|
Weighted
Average Diluted Common Shares Outstanding
|
34,196,917
|
32,729,000
|
1,467,917
|
4
|
%
|
||||||||
|
Return
on Average Assets
|
1.15
|
%
|
1.23
|
%
|
-0.08
|
%
|
-7
|
%
|
|||||
|
Return
on Average Equity
|
14.89
|
%
|
16.06
|
%
|
-1.17
|
%
|
-7
|
%
|
|||||
|
Net
Interest Margin *
|
3.60
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%
|
3.99
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%
|
-0.39
|
%
|
-10
|
%
|
|||||
|
Nine
Months Ended September 30,
|
|||||||||||||
|
Net
Income
|
$
|
42,299
|
$
|
39,443
|
$
|
2,856
|
7
|
%
|
|||||
|
Diluted
Earnings Per Share
|
$
|
1.24
|
$
|
1.20
|
$
|
0.04
|
3
|
%
|
|||||
|
Weighted
Average Diluted Common Shares Outstanding
|
34,140,004
|
32,762,417
|
1,377,587
|
4
|
%
|
||||||||
|
Return
on Average Assets
|
1.16
|
%
|
1.23
|
%
|
-0.07
|
%
|
-6
|
%
|
|||||
|
Return
on Average Equity
|
14.93
|
%
|
16.03
|
%
|
-1.10
|
%
|
-7
|
%
|
|||||
|
Net
Interest Margin *
|
3.73
|
%
|
4.04
|
%
|
-0.31
|
%
|
-8
|
%
|
|||||
|
Asset
Quality
|
September
30,
|
December
31,
|
September
30,
|
||||||||||
|
2006
|
2005
|
2005
|
|||||||||||
|
Nonaccrual
Loans
|
$
|
12,403
|
$
|
13,419
|
$
|
12,412
|
|||||||
|
90
Days Past Due and Still Accruing
|
$
|
2,047
|
$
|
878
|
$
|
913
|
|||||||
|
Total
Nonperforming Loans
|
$
|
14,450
|
$
|
14,297
|
$
|
13,325
|
|||||||
|
Other
Real Estate Owned (OREO)
|
$
|
395
|
$
|
265
|
$
|
235
|
|||||||
|
Total
Nonperforming Assets
|
$
|
14,845
|
$
|
14,562
|
$
|
13,560
|
|||||||
|
Allowance
for Loan and Lease Losses
|
$
|
50,646
|
$
|
47,455
|
$
|
47,550
|
|||||||
|
Year-to-Date
(YTD) Net Charge-Offs
|
$
|
5,130
|
$
|
6,941
|
$
|
4,250
|
|||||||
|
Allowance
for Loan and Lease Losses to Total Loans and Leases
|
1.50
|
%
|
1.57
|
%
|
1.58
|
%
|
|||||||
|
Total
Nonperforming Loans to Total Loans and Leases
|
0.43
|
%
|
0.47
|
%
|
0.44
|
%
|
|||||||
|
Total
Nonperforming Assets to Total Assets
|
0.29
|
%
|
0.33
|
%
|
0.31
|
%
|
|||||||
|
Allowance
for Loan and Lease Losses to Total Nonperforming Loans
|
350.49
|
%
|
331.92
|
%
|
356.85
|
%
|
|||||||
|
Annualized
Net Charge-Offs to YTD Average Loans and Leases
|
0.21
|
%
|
0.23
|
%
|
0.19
|
%
|
|||||||
|
Capital
|
|||||||||||||
|
Equity
to Assets
|
7.90
|
%
|
7.54
|
%
|
7.57
|
%
|
|||||||
|
Book
Value Per Share
|
$
|
11.73
|
$
|
10.34
|
$
|
10.25
|
|||||||
|
Tangible
Book Value Per Share
|
$
|
8.33
|
$
|
8.75
|
$
|
8.66
|
|||||||
|
Tier
1 Leverage Ratio
|
7.38
|
%
|
7.16
|
%
|
6.99
|
%
|
|||||||
|
Tier
1 Capital Ratio
|
10.15
|
%
|
9.80
|
%
|
9.56
|
%
|
|||||||
|
Total
Risk-Based Capital Ratio
|
11.40
|
%
|
11.05
|
%
|
10.82
|
%
|
|||||||
|
Quarterly
Common Stock Price
|
2006
|
2005
|
2004
|
||||||||||||||||
|
Quarter
End
|
High
|
Low
|
High
|
Low
|
High
|
Low
|
|||||||||||||
|
March
31
|
$
|
23.90
|
$
|
21.02
|
$
|
25.66
|
$
|
21.48
|
$
|
23.00
|
$
|
21.21
|
|||||||
|
June
30
|
$
|
23.24
|
$
|
21.03
|
24.15
|
20.10
|
23.18
|
19.92
|
|||||||||||
|
September
30
|
$
|
24.57
|
$
|
21.44
|
25.50
|
22.79
|
24.34
|
21.02
|
|||||||||||
|
December
31
|
23.79
|
20.75
|
26.84
|
21.94
|
|||||||||||||||
*
Calculated on a Federal Taxable Equivalent (FTE) basis
Page
7 of
10
NBT
Bancorp Inc. and Subsidiaries
SELECTED
FINANCIAL HIGHLIGHTS
(unaudited)
|
2006
|
2005
|
Net
Change
|
Percent
Change
|
||||||||||
|
(dollars
in thousands, except per share data)
|
|||||||||||||
|
Balance
Sheet as of September 30,
|
|||||||||||||
|
Loans
and Leases
|
$
|
3,369,732
|
$
|
3,003,103
|
$
|
366,629
|
12
|
%
|
|||||
|
Earning
Assets
|
$
|
4,673,441
|
$
|
4,085,590
|
$
|
587,851
|
14
|
%
|
|||||
|
Total
Assets
|
$
|
5,059,171
|
$
|
4,385,621
|
$
|
673,550
|
15
|
%
|
|||||
|
Deposits
|
$
|
3,787,863
|
$
|
3,212,173
|
$
|
575,690
|
18
|
%
|
|||||
|
Stockholders’
Equity
|
$
|
399,549
|
$
|
332,168
|
$
|
67,381
|
20
|
%
|
|||||
|
Average
Balances
|
|||||||||||||
|
Quarter
Ended September 30,
|
|||||||||||||
|
Loans
and Leases
|
$
|
3,361,676
|
$
|
3,002,017
|
$
|
359,659
|
12
|
%
|
|||||
|
Securities
Available For Sale
|
|||||||||||||
|
(excluding
unrealized gains or losses)
|
$
|
1,134,668
|
$
|
944,062
|
$
|
190,606
|
20
|
%
|
|||||
|
Securities
Held To Maturity
|
$
|
126,654
|
$
|
87,663
|
$
|
38,991
|
44
|
%
|
|||||
|
Regulatory
Equity Investment
|
$
|
40,070
|
$
|
37,965
|
$
|
2,105
|
6
|
%
|
|||||
|
Short-Term
Interest Bearing Accounts
|
$
|
9,869
|
$
|
8,357
|
$
|
1,512
|
18
|
%
|
|||||
|
Total
Earning Assets
|
$
|
4,672,937
|
$
|
4,080,064
|
$
|
592,873
|
15
|
%
|
|||||
|
Total
Assets
|
$
|
5,029,197
|
$
|
4,364,715
|
$
|
664,482
|
15
|
%
|
|||||
|
Interest
Bearing Deposits
|
$
|
3,154,865
|
$
|
2,599,750
|
$
|
555,115
|
21
|
%
|
|||||
|
Non-Interest
Bearing Deposits
|
$
|
625,282
|
$
|
572,450
|
$
|
52,832
|
9
|
%
|
|||||
|
Short-Term
Borrowings
|
$
|
313,099
|
$
|
367,737
|
($54,638
|
)
|
-15
|
%
|
|||||
|
Long-Term
Borrowings
|
$
|
493,580
|
$
|
438,087
|
$
|
55,493
|
13
|
%
|
|||||
|
Total
Interest Bearing Liabilities
|
$
|
3,961,544
|
$
|
3,405,574
|
$
|
555,970
|
16
|
%
|
|||||
|
Stockholders’
Equity
|
$
|
387,771
|
$
|
334,426
|
$
|
53,345
|
16
|
%
|
|||||
|
Average
Balances
|
|||||||||||||
|
Nine
Months Ended September 30,
|
|||||||||||||
|
Loans
and Leases
|
$
|
3,271,095
|
$
|
2,941,292
|
$
|
329,803
|
11
|
%
|
|||||
|
Securities
Available For Sale
|
|||||||||||||
|
(excluding
unrealized gains or losses)
|
$
|
1,107,417
|
$
|
950,660
|
$
|
156,757
|
16
|
%
|
|||||
|
Securities
Held To Maturity
|
$
|
108,601
|
$
|
86,959
|
$
|
21,642
|
25
|
%
|
|||||
|
Regulatory
Equity Investment
|
$
|
40,260
|
$
|
37,044
|
$
|
3,216
|
9
|
%
|
|||||
|
Short-Term
Interest Bearing Accounts
|
$
|
8,327
|
$
|
7,171
|
$
|
1,156
|
16
|
%
|
|||||
|
Total
Earning Assets
|
$
|
4,535,700
|
$
|
4,023,126
|
$
|
512,574
|
13
|
%
|
|||||
|
Total
Assets
|
$
|
4,878,785
|
$
|
4,303,581
|
$
|
575,204
|
13
|
%
|
|||||
|
Interest
Bearing Deposits
|
$
|
3,002,756
|
$
|
2,620,446
|
$
|
382,310
|
15
|
%
|
|||||
|
Non-Interest
Bearing Deposits
|
$
|
610,265
|
$
|
533,330
|
$
|
76,935
|
14
|
%
|
|||||
|
Short-Term
Borrowings
|
$
|
343,557
|
$
|
339,344
|
$
|
4,213
|
1
|
%
|
|||||
|
Long-Term
Borrowings
|
$
|
489,710
|
$
|
427,348
|
$
|
62,362
|
15
|
%
|
|||||
|
Total
Interest Bearing Liabilities
|
$
|
3,836,023
|
$
|
3,387,138
|
$
|
448,885
|
13
|
%
|
|||||
|
Stockholders’
Equity
|
$
|
379,740
|
$
|
329,741
|
$
|
49,999
|
15
|
%
|
|||||
Page
8 of
10
|
NBT
Bancorp Inc. and Subsidiaries
Consolidated
Balance Sheets (unaudited)
|
September
30,
2006
|
December
31,
2005
|
September
30,
2005
|
|||||||
|
(in
thousands)
|
||||||||||
|
ASSETS
|
||||||||||
|
Cash
and due from banks
|
$
|
143,678
|
$
|
134,501
|
$
|
134,131
|
||||
|
Short
term interest bearing accounts
|
7,999
|
7,987
|
7,515
|
|||||||
|
Securities
available for sale, at fair value
|
1,111,473
|
954,474
|
942,770
|
|||||||
|
Securities
held to maturity (fair value of $134,775, $93,701 and $89,887 at
September
30, 2006, December 31, 2005 and September 30, 2005,
respectively)
|
134,608
|
93,709
|
89,660
|
|||||||
|
Federal
Reserve and Federal Home Loan Bank stock
|
39,488
|
40,259
|
36,842
|
|||||||
|
Loans
and leases
|
3,369,732
|
3,022,657
|
3,003,103
|
|||||||
|
Less
allowance for loan and lease losses
|
50,646
|
47,455
|
47,550
|
|||||||
|
Net
loans and leases
|
3,319,086
|
2,975,202
|
2,955,553
|
|||||||
|
Premises
and equipment, net
|
66,988
|
63,693
|
63,611
|
|||||||
|
Goodwill
|
102,858
|
47,544
|
47,544
|
|||||||
|
Intangible
assets, net
|
12,873
|
3,808
|
3,950
|
|||||||
|
Bank
owned life insurance
|
41,344
|
33,648
|
33,306
|
|||||||
|
Other
assets
|
78,776
|
71,948
|
70,739
|
|||||||
|
TOTAL
ASSETS
|
$
|
5,059,171
|
$
|
4,426,773
|
$
|
4,385,621
|
||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||||
|
Deposits:
|
||||||||||
|
Demand
(noninterest bearing)
|
$
|
634,308
|
$
|
593,422
|
$
|
583,289
|
||||
|
Savings,
NOW, and money market
|
1,577,510
|
1,325,166
|
1,409,114
|
|||||||
|
Time
|
1,576,045
|
1,241,608
|
1,219,770
|
|||||||
|
Total
deposits
|
3,787,863
|
3,160,196
|
3,212,173
|
|||||||
|
Short-term
borrowings
|
324,461
|
444,977
|
356,193
|
|||||||
|
Long-term
debt
|
417,753
|
414,330
|
419,353
|
|||||||
|
Trust
preferred debentures
|
75,422
|
23,875
|
18,720
|
|||||||
|
Other
liabilities
|
54,123
|
49,452
|
47,014
|
|||||||
|
Total
liabilities
|
4,659,622
|
4,092,830
|
4,053,453
|
|||||||
|
Total
stockholders' equity
|
399,549
|
333,943
|
332,168
|
|||||||
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
5,059,171
|
$
|
4,426,773
|
$
|
4,385,621
|
||||
Page
9 of
10
|
NBT
Bancorp Inc. and Subsidiaries
|
Three
months ended
September
30,
|
Nine
months ended
September
30,
|
|||||||||||
|
Consolidated
Statements of Income (unaudited)
|
2006
|
2005
|
2006
|
2005
|
|||||||||
|
(in
thousands, except per share data)
|
|
|
|||||||||||
|
Interest,
fee and dividend income:
|
|||||||||||||
|
Loans
and leases
|
$
|
59,329
|
$
|
48,784
|
$
|
169,247
|
$
|
138,988
|
|||||
|
Securities
available for sale
|
13,342
|
10,103
|
38,303
|
30,576
|
|||||||||
|
Securities
held to maturity
|
1,293
|
860
|
3,321
|
2,494
|
|||||||||
|
Other
|
724
|
535
|
1,954
|
1,551
|
|||||||||
|
Total
interest, fee and dividend income
|
74,688
|
60,282
|
212,825
|
173,609
|
|||||||||
|
Interest
expense:
|
|||||||||||||
|
Deposits
|
24,052
|
12,842
|
62,146
|
35,580
|
|||||||||
|
Short-term
borrowings
|
3,828
|
3,005
|
11,876
|
7,073
|
|||||||||
|
Long-term
debt
|
4,603
|
4,176
|
12,972
|
12,016
|
|||||||||
|
Trust
preferred debentures
|
1,285
|
308
|
3,423
|
851
|
|||||||||
|
Total
interest expense
|
33,768
|
20,331
|
90,417
|
55,520
|
|||||||||
|
Net
interest income
|
40,920
|
39,951
|
122,408
|
118,089
|
|||||||||
|
Provision
for loan and lease losses
|
2,480
|
2,752
|
5,911
|
6,868
|
|||||||||
|
Net
interest income after provision for loan and lease losses
|
38,440
|
37,199
|
116,497
|
111,221
|
|||||||||
|
Noninterest
income:
|
|||||||||||||
|
Trust
|
1,425
|
1,292
|
4,242
|
3,795
|
|||||||||
|
Service
charges on deposit accounts
|
4,460
|
4,314
|
13,172
|
12,554
|
|||||||||
|
ATM
and debit card fees
|
1,888
|
1,631
|
5,322
|
4,575
|
|||||||||
|
Broker/dealer
and insurance revenue
|
1,024
|
571
|
2,899
|
2,659
|
|||||||||
|
Net
securities gains (losses)
|
7
|
(737
|
)
|
(905
|
)
|
(690
|
)
|
||||||
|
Bank
owned life insurance income
|
431
|
339
|
1,204
|
1,005
|
|||||||||
|
Retirement
plan administration fees
|
1,450
|
1,195
|
4,112
|
3,214
|
|||||||||
|
Other
|
1,832
|
1,746
|
6,251
|
5,005
|
|||||||||
|
Total
noninterest income
|
12,517
|
10,351
|
36,297
|
32,117
|
|||||||||
|
Noninterest
expense:
|
|||||||||||||
|
Salaries
and employee benefits
|
15,628
|
15,438
|
47,711
|
46,142
|
|||||||||
|
Office
supplies and postage
|
1,275
|
1,135
|
3,912
|
3,406
|
|||||||||
|
Occupancy
|
3,044
|
2,425
|
8,779
|
7,763
|
|||||||||
|
Equipment
|
2,040
|
1,971
|
6,263
|
5,998
|
|||||||||
|
Professional
fees and outside services
|
1,627
|
1,447
|
5,259
|
4,503
|
|||||||||
|
Data
processing and communications
|
2,637
|
2,613
|
7,988
|
7,801
|
|||||||||
|
Amortization
of intangible assets
|
471
|
142
|
1,260
|
402
|
|||||||||
|
Loan
collection and other real estate owned
|
222
|
115
|
722
|
724
|
|||||||||
|
Other
operating
|
2,974
|
3,293
|
10,190
|
9,417
|
|||||||||
|
Total
noninterest expense
|
29,918
|
28,579
|
92,084
|
86,156
|
|||||||||
|
Income
before income taxes
|
21,039
|
18,971
|
60,710
|
57,182
|
|||||||||
|
Income
taxes
|
6,497
|
5,445
|
18,411
|
17,739
|
|||||||||
|
Net
income
|
$
|
14,542
|
$
|
13,526
|
$
|
42,299
|
$
|
39,443
|
|||||
|
Earnings
Per Share:
|
|||||||||||||
|
Basic
|
$
|
0.43
|
$
|
0.42
|
$
|
1.25
|
$
|
1.21
|
|||||
|
Diluted
|
$
|
0.43
|
$
|
0.41
|
$
|
1.24
|
$
|
1.20
|
|||||
Page
10
of 10
|
NBT
Bancorp Inc. and Subsidiaries
Quarterly
Consolidated Statements of Income (unaudited)
|
3Q
2006
|
2Q
2006
|
1Q
2006
|
4Q
2005
|
3Q
2005
|
|||||||||||
|
(in
thousands, except per share data)
|
||||||||||||||||
|
Interest,
fee and dividend income:
|
||||||||||||||||
|
Loans
and leases
|
$
|
59,329
|
$
|
57,085
|
$
|
52,833
|
$
|
50,726
|
$
|
48,784
|
||||||
|
Securities
available for sale
|
13,342
|
13,084
|
11,877
|
10,544
|
10,103
|
|||||||||||
|
Securities
held to maturity
|
1,293
|
1,043
|
985
|
913
|
860
|
|||||||||||
|
Other
|
724
|
619
|
611
|
575
|
535
|
|||||||||||
|
Total
interest, fee and dividend income
|
74,688
|
71,831
|
66,306
|
62,758
|
60,282
|
|||||||||||
|
Interest
expense:
|
||||||||||||||||
|
Deposits
|
24,052
|
20,869
|
17,225
|
14,352
|
12,842
|
|||||||||||
|
Short-term
borrowings
|
3,828
|
4,111
|
3,937
|
3,911
|
3,005
|
|||||||||||
|
Long-term
debt
|
4,603
|
4,227
|
4,142
|
4,098
|
4,176
|
|||||||||||
|
Trust
preferred debentures
|
1,285
|
1,255
|
883
|
375
|
308
|
|||||||||||
|
Total
interest expense
|
33,768
|
30,462
|
26,187
|
22,736
|
20,331
|
|||||||||||
|
Net
interest income
|
40,920
|
41,369
|
40,119
|
40,022
|
39,951
|
|||||||||||
|
Provision
for loan and lease losses
|
2,480
|
1,703
|
1,728
|
2,596
|
2,752
|
|||||||||||
|
Net
interest income after provision for loan and lease losses
|
38,440
|
39,666
|
38,391
|
37,426
|
37,199
|
|||||||||||
|
Noninterest
income:
|
||||||||||||||||
|
Trust
|
1,425
|
1,459
|
1,358
|
1,234
|
1,292
|
|||||||||||
|
Service
charges on deposit accounts
|
4,460
|
4,493
|
4,219
|
4,340
|
4,314
|
|||||||||||
|
ATM
and debit card fees
|
1,888
|
1,789
|
1,645
|
1,587
|
1,631
|
|||||||||||
|
Broker/dealer
and insurance fees
|
1,024
|
967
|
908
|
527
|
571
|
|||||||||||
|
Net
securities gains (losses)
|
7
|
22
|
(934
|
)
|
(546
|
)
|
(737
|
)
|
||||||||
|
Bank
owned life insurance income
|
431
|
392
|
381
|
342
|
339
|
|||||||||||
|
Retirement
plan administration fees
|
1,450
|
1,431
|
1,231
|
1,212
|
1,195
|
|||||||||||
|
Other
|
1,832
|
2,003
|
2,416
|
1,736
|
1,746
|
|||||||||||
|
Total
noninterest income
|
12,517
|
12,556
|
11,224
|
10,432
|
10,351
|
|||||||||||
|
Noninterest
expense:
|
||||||||||||||||
|
Salaries
and employee benefits
|
15,628
|
16,335
|
15,748
|
13,863
|
15,438
|
|||||||||||
|
Office
supplies and postage
|
1,275
|
1,456
|
1,181
|
1,222
|
1,135
|
|||||||||||
|
Occupancy
|
3,044
|
2,747
|
2,988
|
2,689
|
2,425
|
|||||||||||
|
Equipment
|
2,040
|
2,067
|
2,156
|
2,120
|
1,971
|
|||||||||||
|
Professional
fees and outside services
|
1,627
|
1,800
|
1,832
|
1,584
|
1,447
|
|||||||||||
|
Data
processing and communications
|
2,637
|
2,649
|
2,702
|
2,548
|
2,613
|
|||||||||||
|
Amortization
of intangible assets
|
471
|
466
|
323
|
142
|
142
|
|||||||||||
|
Loan
collection and other real estate owned
|
222
|
289
|
211
|
278
|
115
|
|||||||||||
|
Other
operating
|
2,974
|
3,885
|
3,331
|
4,703
|
3,293
|
|||||||||||
|
Total
noninterest expense
|
29,918
|
31,694
|
30,472
|
29,149
|
28,579
|
|||||||||||
|
Income
before income taxes
|
21,039
|
20,528
|
19,143
|
18,709
|
18,971
|
|||||||||||
|
Income
taxes
|
6,497
|
6,359
|
5,555
|
5,714
|
5,445
|
|||||||||||
|
Net
income
|
$
|
14,542
|
$
|
14,169
|
$
|
13,588
|
$
|
12,995
|
$
|
13,526
|
||||||
|
Earnings
per share:
|
||||||||||||||||
|
Basic
|
$
|
0.43
|
$
|
0.41
|
$
|
0.41
|
$
|
0.40
|
$
|
0.42
|
||||||
|
Diluted
|
$
|
0.43
|
$
|
0.41
|
$
|
0.40
|
$
|
0.40
|
$
|
0.41
|
||||||