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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 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, NY (October 24, 2011) – 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. |
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“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.
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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.
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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.
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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)
| Net | Percent | |||||||||||||||
| 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 | % | ||||||||
| Asset Quality | September 30, | December 31, | ||||||||||||||
| 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
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NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
| September 30, | December 31, | Net | Percent | |||||||||||||
| 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 | |||||||||||||||
| Average Balances | (dollars in thousands, 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 Sepember 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 | ||||||||||
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NBT Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets (unaudited)
(in thousands)
| September 30, | December 31, | |||||||
| 2011 | 2010 | |||||||
| 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 $74,448 and $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 | ||||
Page 10 of 14
NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Income (unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 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 | ||||||||
Page 11 of 14
NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements of Income (unaudited)
(in thousands, except per share data)
| 3Q | 2Q | 1Q | 4Q | 3Q | ||||||||||||||||
| 2011 | 2011 | 2011 | 2010 | 2010 | ||||||||||||||||
| 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 |
Page 12 of 14
| Three Months ended September 30, | ||||||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||||||||
| (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 | 5.51 | % | 3,631,637 | 53,506 | 5.85 | % | ||||||||||||||||
| Total interest earning assets | $ | 4,933,368 | $ | 60,910 | 4.90 | % | $ | 4,959,134 | $ | 64,610 | 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 | 1.75 | % | 972,049 | 4,896 | 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 | 3.88 | % | 444,681 | 4,374 | 3.90 | % | ||||||||||||||||
| Total interest bearing liabilities | $ | 3,784,061 | $ | 9,423 | 0.99 | % | $ | 3,961,143 | $ | 12,685 | 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
Page 13 of 14
| Nine Months ended September 30, | ||||||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||||||
| Average | Yield/ | Average | 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 | 5.63 | % | 3,637,532 | 161,097 | 5.92 | % | ||||||||||||||||
| Total interest earning assets | $ | 4,966,189 | $ | 183,636 | 4.94 | % | $ | 5,015,093 | $ | 197,673 | 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 | 1.83 | % | 998,257 | 15,712 | 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 | 3.90 | % | 490,622 | 14,289 | 3.89 | % | ||||||||||||||||
| Total interest bearing liabilities | $ | 3,847,526 | $ | 30,322 | 1.05 | % | $ | 4,065,293 | $ | 41,360 | 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
Page 14 of 14
NBT Bancorp Inc. and Subsidiaries
Loans and Leases (Unaudited)
| September 30, | December 31, | |||||||
| (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 | ||||