FOR IMMEDIATE RELEASE
ATTENTION: FINANCIAL AND BUSINESS EDITORS
| Contact: | Martin A. Dietrich, CEO |
Michael J. Chewens, CFO
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
607-337-6119
NBT BANCORP INC. ANNOUNCES THIRD QUARTER EARNINGS OF $0.46 PER SHARE; DECLARES CASH DIVIDEND
NORWICH, NY (October 27, 2008) – NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today net income per diluted share for the three months ended September 30, 2008 of $0.46 per share, which is the same per share earnings as the third quarter last year. Similarly, net income for the three months ended September 30, 2008 was $15.1 million, the same as net income for the third quarter last year. Return on average assets and return on average equity were 1.13% and 14.58%, respectively, for the three months ended September 30, 2008, compared with 1.17% and 15.41%, respectively, for the three months ended September 30, 2007.
Net income per diluted share for the nine months ended September 30, 2008 was $1.34 per share, up $0.12, or 9.8%, from $1.22 per share for the nine months ended September 30, 2007. Return on average assets and return on average equity were 1.11% and 14.26%, respectively, for the nine months ended September 30, 2008, compared with 1.08% and 13.77%, respectively, for the nine months ended September 30, 2007. Net income for the nine months ended September 30, 2008 was $43.5 million, up $2.1 million, or 5.1%, from the nine months ended September 30, 2007. The increase in net income for the nine months ended September 30, 2008 compared with the nine months ended September 30, 2007 was primarily the result of increases in net interest income and noninterest income, partially offset by an increase in noninterest expense.
NBT President and CEO Martin Dietrich said: “Given the current economic conditions and the credit crisis throughout our financial system, many challenges face the banking industry today. Despite these challenges, we are extremely pleased with our earnings through the first nine months of 2008. While many banks are currently distracted by major credit problems, we have maintained focus on our diligent underwriting practices and are proud of our disciplined credit culture. We continue to maintain our capital above the minimum levels required to be “well capitalized” by our regulators. Our efforts to stimulate our noninterest income growth through various fee income initiatives and other areas of noninterest income continue to produce outstanding results. Noninterest income is up 19.1% year to date as of September 30, 2008, as compared with the same period last year. In addition, we continue to grow our net interest income in this rate environment by strategically managing earning assets and interest bearing liabilities. Our net interest margin was 3.91% for the nine months ended September 30, 2008, up from 3.61% for the same period in 2007. We will continue to navigate through these difficult economic times focused on positioning our company for continued future success.”
Loan and Lease Quality and Provision for Loan and Lease Losses
Nonperforming loans at September 30, 2008 were $24.7 million or 0.69% of total loans and leases compared with $30.6 million or 0.88% at December 31, 2007, and $30.7 million or 0.90% at September 30, 2007. The decrease in nonperforming loans at September 30, 2008 from December 31, 2007 and September 30, 2007 was primarily the result of net charge-offs during the nine month period ending September 30, 2008 related to two large commercial loans, both of which had been previously identified and one of the two reserved for in 2007. The allowance for loan and lease losses totaled $55.8 million at September 30, 2008, as compared with $54.2 million at December 31, 2007, and $54.8 million at September 30, 2007.
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The Company recorded a provision for loan and lease losses of $7.2 million during the third quarter of 2008 compared with $4.8 million for the three months ending September 30, 2007. The increase in the provision for loan and lease losses for the three months ended September 30, 2008 compared to the three months ended September 30, 2007 was due primarily to an additional charge off in the third quarter of 2008 related to the aforementioned large commercial loan which had not previously been reserved for. Net charge-offs totaled $5.9 million for the three month period ending September 30, 2008, down from $7.0 million for the three months ended September 30, 2007. The decrease in net charge-offs for the three months ended September 30, 2008 compared to the three months ended September 30, 2007 was due primarily to agricultural loan credit charge-offs in the third quarter of 2007, which did not repeat in the third quarter of 2008. Net charge-offs to average loans and leases for the three months ended September 30, 2008 were 0.65%, compared with 0.82% for the three months ended September 30, 2007. The Company’s allowance for loan and lease losses was 1.55% of loans and leases at September 30, 2008, compared with 1.57% at December 31, 2008 and 1.60% at September 30, 2007.
The Company recorded a provision for loan and lease losses of $19.5 million during the nine months ended September 30, 2008 as compared with $16.7 million for the nine months ended September 30, 2007. Net charge-offs totaled $17.8 million for the nine months ended September 30, 2008, up from $12.4 million for the same period a year ago. The increase in net charge-offs for the nine months ended September 30, 2008 was due primarily to additional charge-offs in 2008 related to two large commercial loans, which had been previously identified and reserved for in 2007 and an additional charge-off related to one of the aforementioned large commercial loans in the third quarter, which had not previously been reserved for. Net charge-offs to average loans and leases for the nine months ended September 30, 2008 were 0.67%, compared with 0.49% for the nine months ended September 30, 2007.
Net Interest Income
Net interest income was up 14.2% to $47.0 million for the three months ended September 30, 2008 compared with $41.2 million for the three months ended September 30, 2007. The Company’s fully taxable equivalent (FTE) net interest margin increased from 3.56% for the three months ended September 30, 2007 to 3.94% for the three months ended September 30, 2008. In addition, the Company experienced a 3.1% growth in average earning assets for the three months ending September 30, 2008 as compared to the three months ending September 30, 2007, due primarily to an increase in average loans and leases. Although the yield on interest earning assets decreased 47 basis points, the yield on interest bearing liabilities declined 98 basis points, which contributed to the increase in the net interest margin for the three months ended September 30, 2008 compared to the same period for 2007. The yield on money market deposit accounts declined from 3.38% for the three months ended September 30, 2007 to 1.83% for the three months ended September 30, 2008, while the yield on time deposits decreased 113 basis points for the same period. The yield on short term borrowings declined 282 basis points for the three months ended September 30, 2008 as compared to the three months ended September 30, 2007 as a result of the 275 basis point drop in the Fed Funds Target Rate from 4.75% at September 30, 2007 to 2.00% at September 30, 2008.
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Net interest income was up 11.3% to $137.1 million for the nine months ended September 30, 2008 compared with $123.2 million for the nine months ended September 30, 2007. The Company’s FTE net interest margin increased from 3.61% for the nine months ended September 30, 2007 to 3.91% for the nine months ended September 30, 2008. In addition, the Company experienced a 2.5% growth in average earning assets for the nine months ending September 30, 2008 as compared to the nine months ending September 30, 2007 due primarily to an increase in average loans and leases. Although the yield on interest earning assets decreased 38 basis points, the yield on interest bearing liabilities declined 79 basis points, which contributed to the increase in the net interest margin from the nine months ended September 30, 2007. The yield on money market deposit accounts declined from 3.42% for the nine months ended September 30, 2007 to 1.95% for the nine months ended September 30, 2008, while the yield on time deposits decreased 75 basis points for the same period. The yield on short term borrowings declined 223 basis points for the nine months ended September 30, 2008 as compared to the nine months ended September 30, 2007 as a result of the aforementioned 275 basis point drop in the Fed Funds Target Rate.
Noninterest Income
Noninterest income for the three months ended September 30, 2008 was $19.0 million, up $2.5 million or 14.7% from $16.5 million for the same period in 2007. The increase in noninterest income was due primarily to an increase in fees from service charges on deposit accounts and ATM and debit cards, which collectively increased $1.4 million as the benefits of various initiatives continued to enhance fee income. In addition, broker/dealer and insurance revenue increased approximately $1.3 million for the three month period ended September 30, 2008 due primarily to revenue generated by Mang Insurance Agency, LLC, which was acquired during the third quarter of 2008. Other noninterest income decreased $0.2 million for the three month period ended September 30, 2008, compared with the same period in 2007. Net securities gains for the three month periods ended September 30, 2008 and 2007 were approximately $1.5 million for both periods.
Noninterest income for the nine months ended September 30, 2008 was $51.5 million, up $8.3 million or 19.1% from $43.2 million for the same period in 2007. The increase in noninterest income was due primarily to an increase in fees from service charges on deposit accounts and ATM and debit cards, which collectively increased $5.8 million as the benefits of various initiatives continued to enhance fee income. In addition, trust administration income increased $0.7 million for the nine month period ended September 30, 2008, compared with the same period in 2007. This increase stems primarily from an increase in customer accounts resulting from successful business development. Broker/dealer and insurance revenue increased approximately $1.6 million for the nine month period ended September 30, 2008 primarily due to the aforementioned acquisition. Net securities gains for the nine month periods ended September 30, 2008 and 2007 were approximately $1.5 million for both periods.
Noninterest Expense and Income Tax Expense
Noninterest expense for the three months ended September 30, 2008 was $37.1 million, up from $31.2 million for the same period in 2007. Salaries and employee benefits increased $1.0 million, or 6.1%, for the three months ended September 30, 2008 compared with the same period in 2007. This increase was due primarily to increases in full time equivalent employees during 2008 largely due to new branch activity as well as the aforementioned acquisition. Occupancy, equipment and data processing and communications charges were $8.4 million for the three months ended September 30, 2008, up $0.9 million, or 12.2%, from $7.5 million for the three months ended September 30, 2007. This increase was due primarily to an increase in expenses related to the five new branches the Company has opened within the past year. The Company recorded an impairment on lease residual assets totaling $2.0 million as a result of a growth in losses incurred from the sales of certain returned leased vehicles. Other operating expenses were $5.3 million for the three months ended September 30, 2008, up $1.9 million from $3.4 million for the three months ended September 30, 2007. This increase resulted primarily from the aforementioned losses incurred from sales of certain returned lease vehicles totaling approximately $0.9 million during the third quarter of 2008 due to reduced values of the vehicles. In addition, Federal Deposit Insurance Corporation (“FDIC”) insurance premiums increased approximately $0.5 million for the three month period ending September 30, 2008 as compared to the same period in 2007. Income tax expense for the three month period ended September 30, 2008 was $6.7 million, up from $6.6 million for the same period in 2007. The effective rates were 30.7% and 30.2% for the three month periods ended September 30, 2008 and 2007, respectively.
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Noninterest expense for the nine months ended September 30, 2008 was $106.5 million, up from $90.1 million for the same period in 2007. Salaries and employee benefits increased $5.7 million, or 12.6%, for the nine months ended September 30, 2008 compared with the same period in 2007. This increase was due primarily to increases in full time equivalent employees during 2008 largely due to new branch activity as well as the aforementioned acquisition, and reduced levels of incentive compensation in 2007. Occupancy, equipment and data processing and communications charges were $25.4 million for the nine months ended September 30, 2008, up $2.6 million, or 11.8%, from $22.8 million for the nine months ended September 30, 2007. This increase was due primarily to an increase in expenses related to the aforementioned branch openings. Professional fees and outside services increased $2.0 million for the nine month period ended September 30, 2008, compared with the same period in 2007, due primarily to fees and costs related to the aforementioned noninterest income initiatives. Loan collection and other real estate owned expenses were $1.8 million for the nine month period ended September 30, 2008, up from $1.0 million for same period in 2007. The Company recorded an impairment on lease residual assets totaling $2.0 million as a result of a growth in losses incurred from the sales of certain returned leased vehicles. Other operating expenses were $13.7 million for the nine months ended September 30, 2008, up $3.3 million from $10.4 million for the nine months ended September 30, 2007. This increase resulted primarily from the aforementioned losses incurred from sales of certain returned lease vehicles totaling approximately $1.0 million during the period due to reduced values of the vehicles. In addition, FDIC insurance premiums increased approximately $0.6 million for the nine month period ending September 30, 2008 as compared to the same period in 2007. Income tax expense for the nine month period ended September 30, 2008 was $19.2 million, up from $18.3 million for the same period in 2007. The effective rates were 30.6% and 30.7% for the nine month periods ended September 30, 2008 and 2007, respectively.
Balance Sheet
Total assets were $5.3 billion at September 30, 2008, up $133.4 million or 2.6% from $5.2 billion at December 31, 2007, and up $184.1 million or 3.6% from $5.2 billion at September 30, 2007. Loans and leases were $3.6 billion at September 30, 2008, up $151.5 million or 4.4% from $3.5 billion at December 31, 2007, and up $185.1 million or 5.4% from $3.4 billion at September 30, 2007. The increase in loans and leases at September 30, 2008 as compared to December 31, 2007 and September 30, 2007 was due in large part to an increase in consumer loans of approximately $152.4 million and $168.4 million, respectively. Total deposits were $4.0 billion at September 30, 2008, up $118.7 million or 3.1% from December 31, 2007, and up $40.7 million or 1.0% from September 30, 2007. The increase from December 31, 2007 was due in large part to a $261.3 million, or 22.6%, increase in NOW and money market accounts, partially offset by a $178.3 million decrease in time deposits. The increase from September 30, 2007 was due in large part to a $288.8 million, or 25.6%, increase in NOW and money market accounts, partially offset by a $269.9 million decrease in time deposits. Stockholders’ equity was $421.1 million, representing a total equity to total assets ratio of 7.89% at September 30, 2008, compared with $397.3 million or a total equity to total assets ratio of 7.64% at December 31, 2007, and $385.6 million or a total equity to total assets ratio of 7.49% at September 30, 2007.
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Stock Repurchase Program
Under previously disclosed stock repurchase plans, the Company purchased 272,840 shares of its common stock during the nine month period ended September 30, 2008, for a total of $5.9 million at an average price of $21.77 per share. There were no shares purchased during the three month period ended September 30, 2008. At September 30, 2008, there were 1,203,040 shares available for repurchase under previously announced plans.
Dividend Declared
The NBT Board of Directors declared a fourth quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on December 15, 2008, to shareholders of record as of December 1, 2008.
Corporate Overview
NBT is a financial holding company headquartered in Norwich, NY, with total assets of $5.3 billion at September 30, 2008. The company primarily operates through NBT Bank, N.A., a full-service community bank with two divisions, and through three financial services companies. NBT Bank, N.A. has 122 locations, including 84 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. On September 1, 2008, NBT Bancorp Inc. acquired Mang Insurance Agency, a full-service insurance agency based in Binghamton, NY. More information about NBT and its divisions can be found on the Internet at: www.nbtbancorp.com, www.nbtbank.com, www.pennstarbank.com, www.hathawayagency.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.
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NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
| | | 2008 | | | 2007 | | | Net Change | | | Percent Change | |
| | | (dollars in thousands, except per share data) | | | | | | | |
| | | | | | | | | | | | | |
| Three Months Ended September 30, | | | | | | | | | | | | |
| Net Income | | $ | 15,083 | | | $ | 15,147 | | | $ | (64 | ) | | | 0 | % |
| Diluted Earnings Per Share | | $ | 0.46 | | | $ | 0.46 | | | $ | 0.00 | | | | 0 | % |
| Weighted Average Diluted Common Shares Outstanding | | | 32,453,307 | | | | 32,921,286 | | | | -467,979 | | | | -1 | % |
| Return on Average Assets (1) | | | 1.13 | % | | | 1.17 | % | | | -0.04 | % | | | -3 | % |
| Return on Average Equity (1) | | | 14.58 | % | | | 15.41 | % | | | -0.83 | % | | | -5 | % |
| Net Interest Margin (2) | | | 3.94 | % | | | 3.56 | % | | | 0.38 | % | | | 11 | % |
| | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, | | | | | | | | | | | | | | | | |
| Net Income | | $ | 43,456 | | | $ | 41,343 | | | $ | 2,113 | | | | 5 | % |
| Diluted Earnings Per Share | | $ | 1.34 | | | $ | 1.22 | | | $ | 0.12 | | | | 10 | % |
| Weighted Average Diluted Common Shares Outstanding | | | 32,315,744 | | | | 33,765,835 | | | | -1,450,091 | | | | -4 | % |
| Return on Average Assets (1) | | | 1.11 | % | | | 1.08 | % | | | 0.03 | % | | | 3 | % |
| Return on Average Equity (1) | | | 14.26 | % | | | 13.77 | % | | | 0.49 | % | | | 4 | % |
| Net Interest Margin (2) | | | 3.91 | % | | | 3.61 | % | | | 0.30 | % | | | 8 | % |
| | | | | | | | | | | | | | | | | |
| Asset Quality | | September 30, 2008 | | | December 31, 2007 | | | September 30, 2007 | | | | | |
| Nonaccrual Loans | | $ | 23,031 | | | $ | 29,697 | | | $ | 29,087 | | | | | |
| 90 Days Past Due and Still Accruing | | $ | 1,691 | | | $ | 882 | | | $ | 1,620 | | | | | |
| Total Nonperforming Loans | | $ | 24,722 | | | $ | 30,579 | | | $ | 30,707 | | | | | |
| Other Real Estate Owned | | $ | 855 | | | $ | 560 | | | $ | 917 | | | | | |
| Total Nonperforming Assets | | $ | 25,577 | | | $ | 31,139 | | | $ | 31,624 | | | | | |
| Past Due Loans | | $ | 24,880 | | | $ | 25,914 | | | $ | 24,044 | | | | | |
| Allowance for Loan and Lease Losses | | $ | 55,803 | | | $ | 54,183 | | | $ | 54,808 | | | | | |
| Year-to-Date (YTD) Net Charge-Offs | | $ | 17,840 | | | $ | 26,498 | | | $ | 12,433 | | | | | |
| Allowance for Loan and Lease Losses to Total Loans and Leases | | | 1.55 | % | | | 1.57 | % | | | 1.60 | % | | | | |
| Total Nonperforming Loans to Total Loans and Leases | | | 0.69 | % | | | 0.88 | % | | | 0.90 | % | | | | |
| Total Nonperforming Assets to Total Assets | | | 0.48 | % | | | 0.60 | % | | | 0.61 | % | | | | |
| Past Due Loans to Total Loans and Leases | | | 0.69 | % | | | 0.75 | % | | | 0.70 | % | | | | |
| Allowance for Loan and Lease Losses to Total Nonperforming Loans | | | 225.72 | % | | | 177.19 | % | | | 178.49 | % | | | | |
| Net Charge-Offs to YTD Average Loans and Leases (1) | | | 0.67 | % | | | 0.77 | % | | | 0.49 | % | | | | |
| | | | | | | | | | | | | | | | | |
| Capital | | | | | | | | | | | | | | | | |
| Equity to Assets | | | 7.89 | % | | | 7.64 | % | | | 7.49 | % | | | | |
| Book Value Per Share | | $ | 12.95 | | | $ | 12.29 | | | $ | 11.97 | | | | | |
| Tangible Book Value Per Share | | $ | 8.71 | | | $ | 8.78 | | | $ | 8.43 | | | | | |
| Tier 1 Leverage Ratio | | | 7.04 | % | | | 7.14 | % | | | 7.06 | % | | | | |
| Tier 1 Capital Ratio | | | 9.51 | % | | | 9.85 | % | | | 9.77 | % | | | | |
| Total Risk-Based Capital Ratio | | | 10.77 | % | | | 11.10 | % | | | 11.02 | % | | | | |
| Quarterly Common Stock Price | | 2008 | | | 2007 | | | 2006 | |
| Quarter End | | High | | | Low | | | High | | | Low | | | High | | | Low | |
| March 31 | | $ | 23.65 | | | $ | 17.95 | | | $ | 25.81 | | | $ | 21.73 | | | $ | 23.90 | | | $ | 21.02 | |
| June 30 | | $ | 25.00 | | | $ | 20.33 | | | | 23.45 | | | | 21.80 | | | | 23.24 | | | | 21.03 | |
| September 30 | | $ | 36.47 | | | $ | 19.05 | | | | 23.80 | | | | 17.10 | | | | 24.57 | | | | 21.44 | |
| December 31 | | | | | | | | | | | 25.00 | | | | 20.58 | | | | 26.47 | | | | 22.36 | |
(1) Annualized
(2) Calculated on a FTE basis
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SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
| | | 2008 | | | 2007 | | | Net Change | | | Percent Change | |
| | | (dollars in thousands) | | | | | | | |
| Balance Sheet as of September 30, | | | | | | | | | | | | |
| Loans and Leases | | $ | 3,607,321 | | | $ | 3,422,217 | | | $ | 185,104 | | | | 5 | % |
| Earning Assets | | $ | 4,899,934 | | | $ | 4,757,886 | | | $ | 142,048 | | | | 3 | % |
| Total Assets | | $ | 5,335,158 | | | $ | 5,151,072 | | | $ | 184,086 | | | | 4 | % |
| Deposits | | $ | 3,990,794 | | | $ | 3,950,065 | | | $ | 40,729 | | | | 1 | % |
| Stockholders’ Equity | | $ | 421,128 | | | $ | 385,646 | | | $ | 35,482 | | | | 9 | % |
| | | | | | | | | | | | | | | | | |
| Average Balances | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | | | | | | | | | | | | | | | |
| Loans and Leases | | $ | 3,605,700 | | | $ | 3,437,798 | | | $ | 167,902 | | | | 5 | % |
| Securities Available For Sale | | | | | | | | | | | | | | | | |
| (excluding unrealized gains or losses) | | $ | 1,116,089 | | | $ | 1,142,009 | | | $ | (25,920 | ) | | | -2 | % |
| Securities Held To Maturity | | $ | 148,397 | | | $ | 144,713 | | | $ | 3,684 | | | | 3 | % |
| Regulatory Equity Investment | | $ | 40,401 | | | $ | 33,637 | | | $ | 6,764 | | | | 20 | % |
| Short-Term Interest Bearing Accounts | | $ | 4,077 | | | $ | 7,714 | | | $ | (3,637 | ) | | | -47 | % |
| Total Earning Assets | | $ | 4,914,664 | | | $ | 4,765,871 | | | $ | 148,793 | | | | 3 | % |
| Total Assets | | $ | 5,301,640 | | | $ | 5,122,096 | | | $ | 179,544 | | | | 4 | % |
| Interest Bearing Deposits | | $ | 3,258,301 | | | $ | 3,267,440 | | | $ | (9,139 | ) | | | 0 | % |
| Non-Interest Bearing Deposits | | $ | 706,803 | | | $ | 656,176 | | | $ | 50,627 | | | | 8 | % |
| Short-Term Borrowings | | $ | 154,567 | | | $ | 322,245 | | | $ | (167,678 | ) | | | -52 | % |
| Long-Term Borrowings | | $ | 701,155 | | | $ | 429,459 | | | $ | 271,696 | | | | 63 | % |
| Total Interest Bearing Liabilities | | $ | 4,114,023 | | | $ | 4,019,144 | | | $ | 94,879 | | | | 2 | % |
| Stockholders’ Equity | | $ | 411,459 | | | $ | 389,863 | | | $ | 21,596 | | | | 6 | % |
| | | | | | | | | | | | | | | | | |
| Average Balances | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, | | | | | | | | | | | | | | | | |
| Loans and Leases | | $ | 3,544,787 | | | $ | 3,419,983 | | | $ | 124,804 | | | | 4 | % |
| Securities Available For Sale | | | | | | | | | | | | | | | | |
| (excluding unrealized gains or losses) | | $ | 1,112,582 | | | $ | 1,131,533 | | | $ | (18,951 | ) | | | -2 | % |
| Securities Held To Maturity | | $ | 153,010 | | | $ | 144,693 | | | $ | 8,317 | | | | 6 | % |
| Regulatory Equity Investment | | $ | 39,730 | | | $ | 33,668 | | | $ | 6,062 | | | | 18 | % |
| Short-Term Interest Bearing Accounts | | $ | 6,517 | | | $ | 8,523 | | | $ | (2,006 | ) | | | -24 | % |
| Total Earning Assets | | $ | 4,856,626 | | | $ | 4,738,400 | | | $ | 118,226 | | | | 2 | % |
| Total Assets | | $ | 5,236,130 | | | $ | 5,096,608 | | | $ | 139,522 | | | | 3 | % |
| Interest Bearing Deposits | | $ | 3,229,338 | | | $ | 3,273,359 | | | $ | (44,021 | ) | | | -1 | % |
| Non-Interest Bearing Deposits | | $ | 678,277 | | | $ | 633,572 | | | $ | 44,705 | | | | 7 | % |
| Short-Term Borrowings | | $ | 238,200 | | | $ | 279,443 | | | $ | (41,243 | ) | | | -15 | % |
| Long-Term Borrowings | | $ | 615,383 | | | $ | 453,457 | | | $ | 161,926 | | | | 36 | % |
| Total Interest Bearing Liabilities | | $ | 4,082,921 | | | $ | 4,006,259 | | | $ | 76,662 | | | | 2 | % |
| Stockholders’ Equity | | $ | 407,127 | | | $ | 401,310 | | | $ | 5,817 | | | | 1 | % |
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NBT Bancorp Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) | | September 30, 2008 | | | December 31, 2007 | | | September 30, 2007 | |
| (in thousands) | | | | | | | | | |
| | | | | | | | | | |
| ASSETS | | | | | | | | | |
| Cash and due from banks | | $ | 141,167 | | | $ | 155,495 | | | $ | 139,453 | |
| Short term interest bearing accounts | | | 2,426 | | | | 7,451 | | | | 9,028 | |
| Securities available for sale, at fair value | | | 1,101,103 | | | | 1,132,230 | | | | 1,137,890 | |
| Securities held to maturity (fair value of $144,303, $149,519 and $143,483 at September 30, 2008, December 31, 2007 and September 30, 2007, respectively) | | | 149,952 | | | | 149,111 | | | | 143,447 | |
| Federal Reserve and Federal Home Loan Bank stock | | | 39,122 | | | | 38,102 | | | | 33,218 | |
| Loans and leases | | | 3,607,321 | | | | 3,455,851 | | | | 3,422,217 | |
| Less allowance for loan and lease losses | | | 55,803 | | | | 54,183 | | | | 54,808 | |
| Net loans and leases | | | 3,551,518 | | | | 3,401,668 | | | | 3,367,409 | |
| Premises and equipment, net | | | 65,201 | | | | 64,042 | | | | 64,406 | |
| Goodwill | | | 113,514 | | | | 103,398 | | | | 103,400 | |
| Intangible assets, net | | | 24,242 | | | | 10,173 | | | | 10,585 | |
| Bank owned life insurance | | | 45,037 | | | | 43,614 | | | | 43,134 | |
| Other assets | | | 101,876 | | | | 96,492 | | | | 99,102 | |
| TOTAL ASSETS | | $ | 5,335,158 | | | $ | 5,201,776 | | | $ | 5,151,072 | |
| | | | | | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Demand (noninterest bearing) | | $ | 703,406 | | | $ | 666,698 | | | $ | 671,729 | |
| Savings, NOW, and money market | | | 1,874,608 | | | | 1,614,289 | | | | 1,595,622 | |
| Time | | | 1,412,780 | | | | 1,591,106 | | | | 1,682,714 | |
| Total deposits | | | 3,990,794 | | | | 3,872,093 | | | | 3,950,065 | |
| Short-term borrowings | | | 150,477 | | | | 368,467 | | | | 305,865 | |
| Long-term debt | | | 633,462 | | | | 424,887 | | | | 377,119 | |
| Trust preferred debentures | | | 75,422 | | | | 75,422 | | | | 75,422 | |
| Other liabilities | | | 63,875 | | | | 63,607 | | | | 56,955 | |
| Total liabilities | | | 4,914,030 | | | | 4,804,476 | | | | 4,765,426 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Total stockholders' equity | | | 421,128 | | | | 397,300 | | | | 385,646 | |
| | | | | | | | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 5,335,158 | | | $ | 5,201,776 | | | $ | 5,151,072 | |
Page 9 of 10
| | Three months ended September 30, | | | Nine months ended September 30, | |
| Consolidated Statements of Income (unaudited) | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| (in thousands, except per share data) | | | | | | |
| Interest, fee and dividend income: | | | | | | | | | | | | |
| Loans and leases | | $ | 58,154 | | | $ | 61,183 | | | $ | 173,991 | | | $ | 181,680 | |
| Securities available for sale | | | 13,451 | | | | 13,847 | | | | 40,614 | | | | 40,876 | |
| Securities held to maturity | | | 1,343 | | | | 1,471 | | | | 4,335 | | | | 4,440 | |
| Other | | | 673 | | | | 680 | | | | 2,187 | | | | 2,139 | |
| Total interest, fee and dividend income | | | 73,621 | | | | 77,181 | | | | 221,127 | | | | 229,135 | |
| Interest expense: | | | | | | | | | | | | | | | | |
| Deposits | | | 18,351 | | | | 27,062 | | | | 59,761 | | | | 79,996 | |
| Short-term borrowings | | | 763 | | | | 3,885 | | | | 4,465 | | | | 9,895 | |
| Long-term debt | | | 6,310 | | | | 3,770 | | | | 16,241 | | | | 12,253 | |
| Trust preferred debentures | | | 1,154 | | | | 1,277 | | | | 3,547 | | | | 3,817 | |
| Total interest expense | | | 26,578 | | | | 35,994 | | | | 84,014 | | | | 105,961 | |
| Net interest income | | | 47,043 | | | | 41,187 | | | | 137,113 | | | | 123,174 | |
| Provision for loan and lease losses | | | 7,179 | | | | 4,788 | | | | 19,460 | | | | 16,654 | |
| Net interest income after provision for loan and lease losses | | | 39,864 | | | | 36,399 | | | | 117,653 | | | | 106,520 | |
| Noninterest income: | | | | | | | | | | | | | | | | |
| Trust | | | 1,720 | | | | 1,701 | | | | 5,593 | | | | 4,930 | |
| Service charges on deposit accounts | | | 7,414 | | | | 6,195 | | | | 20,877 | | | | 15,600 | |
| ATM and debit card fees | | | 2,334 | | | | 2,159 | | | | 6,656 | | | | 6,096 | |
| Broker/dealer and insurance revenue | | | 2,338 | | | | 1,027 | | | | 4,811 | | | | 3,203 | |
| Net securities gains | | | 1,510 | | | | 1,484 | | | | 1,543 | | | | 1,500 | |
| Bank owned life insurance income | | | 491 | | | | 467 | | | | 1,423 | | | | 1,351 | |
| Retirement plan administration fees | | | 1,461 | | | | 1,586 | | | | 4,840 | | | | 4,779 | |
| Other | | | 1,694 | | | | 1,908 | | | | 5,733 | | | | 5,750 | |
| Total noninterest income | | | 18,962 | | | | 16,527 | | | | 51,476 | | | | 43,209 | |
| Noninterest expense: | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 16,850 | | | | 15,876 | | | | 50,526 | | | | 44,862 | |
| Office supplies and postage | | | 1,322 | | | | 1,354 | | | | 3,992 | | | | 3,984 | |
| Occupancy | | | 3,359 | | | | 2,928 | | | | 10,396 | | | | 8,682 | |
| Equipment | | | 1,908 | | | | 1,797 | | | | 5,595 | | | | 5,567 | |
| Professional fees and outside services | | | 2,205 | | | | 2,256 | | | | 7,825 | | | | 5,840 | |
| Data processing and communications | | | 3,155 | | | | 2,779 | | | | 9,440 | | | | 8,501 | |
| Amortization of intangible assets | | | 462 | | | | 413 | | | | 1,231 | | | | 1,232 | |
| Loan collection and other real estate owned | | | 505 | | | | 431 | | | | 1,802 | | | | 1,036 | |
| Impairment on lease residual assets | | | 2,000 | | | | - | | | | 2,000 | | | | - | |
| Other operating | | | 5,292 | | | | 3,393 | | | | 13,708 | | | | 10,409 | |
| Total noninterest expense | | | 37,058 | | | | 31,227 | | | | 106,515 | | | | 90,113 | |
| Income before income taxes | | | 21,768 | | | | 21,699 | | | | 62,614 | | | | 59,616 | |
| Income taxes | | | 6,685 | | | | 6,552 | | | | 19,158 | | | | 18,273 | |
| Net income | | $ | 15,083 | | | $ | 15,147 | | | $ | 43,456 | | | $ | 41,343 | |
| Earnings Per Share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.47 | | | $ | 0.46 | | | $ | 1.36 | | | $ | 1.23 | |
| Diluted | | $ | 0.46 | | | $ | 0.46 | | | $ | 1.34 | | | $ | 1.22 | |
Page 10 of 10
NBT Bancorp Inc. and Subsidiaries Quarterly Consolidated Statements of Income (unaudited) | | | 3Q 2008 | | | | 2Q 2008 | | | | 1Q 2008 | | | | 4Q 2007 | | | | 3Q 2007 | |
| (in thousands, except per share data) | | | | | | | | | | | | | | | | | | | | |
| Interest, fee and dividend income: | | | | | | | | | | | | | | | | | | | | |
| Loans and leases | | $ | 58,154 | | | $ | 57,220 | | | $ | 58,617 | | | $ | 60,817 | | | $ | 61,183 | |
| Securities available for sale | | | 13,451 | | | | 13,417 | | | | 13,746 | | | | 13,971 | | | | 13,847 | |
| Securities held to maturity | | | 1,343 | | | | 1,478 | | | | 1,514 | | | | 1,458 | | | | 1,471 | |
| Other | | | 673 | | | | 739 | | | | 775 | | | | 736 | | | | 680 | |
| Total interest, fee and dividend income | | | 73,621 | | | | 72,854 | | | | 74,652 | | | | 76,982 | | | | 77,181 | |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 18,351 | | | | 18,712 | | | | 22,698 | | | | 26,578 | | | | 27,062 | |
| Short-term borrowings | | | 763 | | | | 1,362 | | | | 2,340 | | | | 3,048 | | | | 3,885 | |
| Long-term debt | | | 6,310 | | | | 5,629 | | | | 4,302 | | | | 4,233 | | | | 3,770 | |
| Trust preferred debentures | | | 1,154 | | | | 1,146 | | | | 1,247 | | | | 1,270 | | | | 1,277 | |
| Total interest expense | | | 26,578 | | | | 26,849 | | | | 30,587 | | | | 35,129 | | | | 35,994 | |
| Net interest income | | | 47,043 | | | | 46,005 | | | | 44,065 | | | | 41,853 | | | | 41,187 | |
| Provision for loan and lease losses | | | 7,179 | | | | 5,803 | | | | 6,478 | | | | 13,440 | | | | 4,788 | |
| Net interest income after provision for loan and lease losses | | | 39,864 | | | | 40,202 | | | | 37,587 | | | | 28,413 | | | | 36,399 | |
| Noninterest income: | | | | | | | | | | | | | | | | | | | | |
| Trust | | | 1,720 | | | | 2,099 | | | | 1,774 | | | | 1,584 | | | | 1,701 | |
| Service charges on deposit accounts | | | 7,414 | | | | 6,938 | | | | 6,525 | | | | 7,142 | | | | 6,195 | |
| ATM and debit card fees | | | 2,334 | | | | 2,225 | | | | 2,097 | | | | 2,089 | | | | 2,159 | |
| Broker/dealer and insurance fees | | | 2,338 | | | | 1,366 | | | | 1,107 | | | | 1,052 | | | | 1,027 | |
| Net securities gains | | | 1,510 | | | | 18 | | | | 15 | | | | 613 | | | | 1,484 | |
| Bank owned life insurance income | | | 491 | | | | 480 | | | | 452 | | | | 480 | | | | 467 | |
| Retirement plan administration fees | | | 1,461 | | | | 1,671 | | | | 1,708 | | | | 1,557 | | | | 1,586 | |
| Other | | | 1,694 | | | | 1,622 | | | | 2,417 | | | | 1,973 | | | | 1,908 | |
| Total noninterest income | | | 18,962 | | | | 16,419 | | | | 16,095 | | | | 16,490 | | | | 16,527 | |
| Noninterest expense: | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 16,850 | | | | 16,906 | | | | 16,770 | | | | 14,654 | | | | 15,876 | |
| Office supplies and postage | | | 1,322 | | | | 1,331 | | | | 1,339 | | | | 1,136 | | | | 1,354 | |
| Occupancy | | | 3,359 | | | | 3,427 | | | | 3,610 | | | | 2,948 | | | | 2,928 | |
| Equipment | | | 1,908 | | | | 1,862 | | | | 1,825 | | | | 1,855 | | | | 1,797 | |
| Professional fees and outside services | | | 2,205 | | | | 2,521 | | | | 3,099 | | | | 3,295 | | | | 2,256 | |
| Data processing and communications | | | 3,155 | | | | 3,115 | | | | 3,170 | | | | 2,899 | | | | 2,779 | |
| Amortization of intangible assets | | | 462 | | | | 378 | | | | 391 | | | | 413 | | | | 413 | |
| Loan collection and other real estate owned | | | 505 | | | | 730 | | | | 567 | | | | 597 | | | | 431 | |
| Impairment on lease residual assets | | | 2,000 | | | | - | | | | - | | | | - | | | | - | |
| Other operating | | | 5,292 | | | | 5,153 | | | | 3,263 | | | | 4,607 | | | | 3,393 | |
| Total noninterest expense | | | 37,058 | | | | 35,423 | | | | 34,034 | | | | 32,404 | | | | 31,227 | |
| Income before income taxes | | | 21,768 | | | | 21,198 | | | | 19,648 | | | | 12,499 | | | | 21,699 | |
| Income taxes | | | 6,685 | | | | 6,541 | | | | 5,932 | | | | 3,514 | | | | 6,552 | |
| Net income | | $ | 15,083 | | | $ | 14,657 | | | $ | 13,716 | | | $ | 8,985 | | | $ | 15,147 | |
| Earnings per share: | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.47 | | | $ | 0.46 | | | $ | 0.43 | | | $ | 0.28 | | | $ | 0.46 | |
| Diluted | | $ | 0.46 | | | $ | 0.45 | | | $ | 0.43 | | | $ | 0.28 | | | $ | 0.46 | |
