| | · | Net interest margin was 3.90% for the third quarter of 2012, up 8 basis points on a linked quarter basis. |
| | · | Annualized net charge-off ratio was 0.47% as compared to 0.55% for the same period last year. |
"At NBT we continue to leverage opportunities to invest in our future success through acquisition, including our expansion in New England and our recently announced merger agreement with Alliance Financial Corporation," said NBT President and CEO Martin Dietrich. "Acquiring the Alliance franchise in the greater Syracuse market is an exciting opportunity for strategic expansion that will be a great complement to our existing footprint in central New York. In addition, we remain focused on organic growth and banking fundamentals. We are generating strong organic loan growth and maintaining a quality loan portfolio through the efforts of our customer-oriented team of community bankers. We are pleased with our results through the first three quarters of 2012, particularly in light of the pressures that the economy and regulatory environment continue to place on banks."
Loan and Lease Quality and Provision for Loan and Lease Losses
The Company recorded a provision for loan and lease losses of $13.3 million during the nine months ended September 30, 2012, compared with $15.2 million for the nine months ended September 30, 2011. Net charge-offs were $13.9 million for the nine months ended September 30, 2012, down from $15.1 million for the same period in 2011, due primarily to the charge-off of one large commercial loan during the first quarter of 2011, as well as the general improvement in asset quality indicators in 2012. The annualized net charge-off ratio for the nine months ended September 30, 2012 was 0.47%, compared to 0.55% for the nine months ended September 30, 2011.
The Company recorded a provision for loan and lease losses of $4.8 million during the three months ended September 30, 2012, compared with $5.2 million for the three months ended September 30, 2011. Net charge-offs were $4.8 million and the annualized net charge-off ratio was 0.45% for the three months ended September 30, 2012. Net charge-offs were $4.3 million and the annualized net charge-off ratio was 0.47% for the three months ended September 30, 2011.
Past due loans as a percentage of total loans was 0.65% at September 30, 2012, up from 0.54% at June 30, 2012, and down from 0.89% at December 31, 2011. Nonperforming loans remained flat at $45.6 million September 30, 2012 compared with June 30, 2012, and up from $41.5 million at December 31, 2011.
The allowance for loan and lease losses totaled $70.7 million at September 30, 2012, compared to $71.3 million at December 31, 2011. The allowance for loan losses as a percentage of loans and leases was 1.66% at September 30, 2012, compared to 1.88% at December 31, 2011. This reduction was due primarily to acquired loans that were recorded at fair value at acquisition. As acquired loans do not have a related allowance recorded, the acquisition resulted in a decrease of 9 basis points in the allowance for loan losses as a percentage of total loans as of September 30, 2012. The balance of the reduced allowance is due to improvement in asset quality indicators throughout the year, as well as improvement in certain economic indicators.
Net Interest Income
Net interest income was up to $151.8 million for the nine months ended September 30, 2012, compared with $149.8 million for the nine months ended September 30, 2011. The Company's FTE net interest margin was 3.87% for the nine months ended September 30, 2012, down from 4.13% for the nine months ended September 30, 2011. Average earning assets for the nine months ended September 30, 2012 was $5.3 billion, compared to $5.0 billion for the same period of 2011. This increase offset the decline in net interest margin, resulting in a $2.0 million increase in net interest income for nine months ended September 30, 2012.
While the yield on interest bearing liabilities decreased 17 basis points, the yield on interest earning assets declined 40 basis points, resulting in margin compression for the nine months ended September 30, 2012, compared to the same period for 2011. The yield on securities available for sale was 2.51% for the nine months ended September 30, 2012, compared with 3.06% for the nine months ended September 30, 2011. This decrease was due primarily to the reinvestment of cash flows from maturing securities and cash received from branch acquisitions in 2011 and the first quarter of 2012 into lower yielding securities in the current rate environment. The average balance of securities available for sale for the nine months ended September 30, 2012 was $1.2 billion, up approximately $90.6 million, or 8.2%, from the nine months ended September 30, 2011. This increase was due primarily to reinvestment of maturing held to maturity securities into available for sale securities, and investment of liquidity from branch acquisition activity and deposit growth into available for sale securities. The yield on loans and leases was 5.21% for the nine months ended September 30, 2012, compared with 5.63% for the nine months ended September 30, 2011. The average balance of loans and leases for the nine months ended September 30, 2012 was $4.0 billion, up approximately $331.8 million, or 9.1%, from the nine months ended September 30, 2011. The reduction in yields on earning assets was partially offset by a reduction in rates paid on interest bearing liabilities. The rate on time deposits was 1.50% for the nine months ended September 30, 2012, compared with 1.83% for the nine months ended September 30, 2011. The rate on money market deposit accounts was 0.20% for the nine months ended September 30, 2012, compared with 0.37% for the nine months ended September 30, 2011.
Net interest income was up to $52.6 million for the three months ended September 30, 2012, compared with $50.4 million for the three months ended September 30, 2011. The Company's FTE net interest margin was 3.90% for the three months ended September 30, 2012, down from 4.14% for the three months ended September 30, 2011. The increase in average earning assets for the three months ended September 30, 2012 as compared to the same period of 2011 offset the decline in net interest margin, resulting in the increase in net interest income over the same period last year.
While the yield on interest bearing liabilities decreased 16 basis points, the yield on interest earning assets declined 37 basis points, resulting in margin compression for the three months ended September 30, 2012, compared to the same period for 2011. The yield on securities available for sale was 2.39% for the three months ended September 30, 2012, as compared with 2.95% for the three months ended September 30, 2011. This decrease was due primarily to the reinvestment of cash flows from maturing securities and cash received from branch acquisitions into lower yielding securities in the current rate environment. The average balance of securities available for sale for the three months ended September 30, 2012 was $1.2 billion, up approximately $48.2 million, or 4.3%, from the three months ended September 30, 2011. This increase was due primarily to reinvestment of maturing held to maturity securities into available for sale securities, and investment of liquidity from branch acquisition activity and deposit growth into available for sale securities. The yield on loans and leases was 5.12% for the three months ended September 30, 2012, compared with 5.51% for the three months ended September 30, 2011. The average balance of loans and leases for the three months ended September 30, 2012 was $4.2 billion, up approximately $510.4 million, or 13.8%, from the three months ended September 30, 2011. The reduction in yields on earning assets was partially offset by a reduction in rates paid on interest bearing liabilities. The rate on time deposits was 1.35% for the three months ended September 30, 2012, compared with 1.75% for the three months ended September 30, 2011. The rate on money market deposit accounts was 0.18% for the three months ended September 30, 2012, compared with 0.31% for the three months ended September 30, 2011.
Noninterest Income
Noninterest income for the nine months ended September 30, 2012 was $65.4 million, up 8.6% or $5.2 million, compared with $60.2 million for the same period in 2011. Insurance and other financial services revenue increased approximately $1.1 million for the nine months ended September 30, 2012, compared to the nine months ended September 30, 2011. This increase was due primarily to the acquisition of an insurance agency during the second quarter of 2011 as well as organic growth in commercial product lines. ATM and debit card fees increased approximately $0.7 million for the nine months ended September 30, 2012, compared to the nine months ended September 30, 2011, due primarily to an increase in card usage and customer base. Retirement plan administration fees increased approximately $0.7 million for the nine months ended September 30, 2012, compared to the nine months ended September 30, 2011, due primarily to an increase in customer base. Other noninterest income increased approximately $4.6 million for the nine months ended September 30, 2012 as compared to September 30, 2011. This increase was due primarily to a $1.1 million payoff gain on a purchased commercial real estate loan, as well as a prepayment penalty fee collected of $0.8 million during the nine months ended September 30, 2012 related to a previously disclosed loss of a retirement plan client. In addition, mortgage banking revenue increased approximately $2.0 million for the nine months ended September 30, 2012 as compared to the same period in 2011 as the Company sold certain residential mortgages as market conditions warranted. The Company sold approximately $39.3 million residential mortgages during the first nine months of 2012, as compared to no sales during the first nine months of 2011. The Company also realized net securities gains of approximately $0.6 million during the nine months ended September 30, 2012, as compared to $0.1 million for the same period in 2011. These increases were partially offset by a decrease in service charges on deposit accounts of approximately $2.5 million, or 15.7%, for the nine months ended September 30, 2012, compared with the same period in 2011 primarily due to a decrease in overdraft fee income.
Noninterest income for the three months ended September 30, 2012 was $21.6 million, up 7.1% or $1.4 million, compared with $20.2 million for the same period in 2011. Insurance and other financial services revenue increased approximately $0.5 million for the three months ended September 30, 2012, compared to the three months ended September 30, 2011. This increase was due primarily to organic growth in commercial product lines. Retirement plan administration fees increased approximately $0.4 million for the three months ended September 30, 2012, compared to the three months ended September 30, 2011, due primarily to an increase in customer base. Other noninterest income increased approximately $1.1 million for the three months ended September 30, 2012 as compared to the three months ended September 30, 2011. This increase was due primarily to an increase in mortgage banking activity during the three months ended September 30, 2012 as compared with the three months ended September 30, 2011. The Company sold approximately $9.7 million residential mortgages during the three months ended September 30, 2012, as compared to no sales during the same period in 2011. These increases were partially offset by a decrease in service charges on deposit accounts of approximately $0.9 million, or 16.4%, for the three months ended September 30, 2012, compared with the same period in 2011 primarily due to the aforementioned decrease in overdraft fee income.
Noninterest Expense and Income Tax Expense
Noninterest expense for the nine months ended September 30, 2012 was $145.3 million, up $12.0 million or 9.0%, for the same period in 2011. Salaries and employee benefits increased $4.3 million, or 5.7%, for the nine months ended September 30, 2012, compared with the same period in 2011. This increase was due primarily to increases in full-time-equivalent employees from acquisitions, merit increases, and increased pension expenses. Professional fees and outside services increased $1.5 million, or 23.2%, for the nine months ended September 30, 2012 as compared to the same period in 2011. Data processing and communications expenses increased approximately $1.0 million, or 10.5%, for the nine months ended September 30, 2012 as compared to the same period in 2011, due primarily to expansion into new markets. Merger related expenses totaled $1.9 million in the first nine months of 2012, as compared to $0.2 million for the same period in 2011. Other operating expenses increased $2.0 million in the first nine months of 2012 as compared with the same period in 2011. These increases were partially offset by a decrease in Federal Deposit Insurance Corporation ("FDIC") expenses of approximately $0.6 million for the nine months ended September 30, 2012 as compared to the nine months ended September 30, 2011. This decrease was due to the FDIC redefining the deposit insurance assessment base effective the second quarter of 2011. Income tax expense for the nine month period ended September 30, 2012 was $17.0 million, down from $17.4 million for the same period in 2011. The effective tax rate was 29.1% for the nine months ended September 30, 2012, compared to 28.2% for the same period in 2011.
Noninterest expense for the three months ended September 30, 2012 was $49.4 million, up $4.4 million or 9.7%, for the same period in 2011. Salaries and employee benefits increased $1.6 million, or 6.3%, for the three months ended September 30, 2012, compared with the same period in 2011. This increase was due primarily to increases in full-time-equivalent employees from acquisitions, merit increases, and increased pension expenses. Occupancy expenses for the three months ended September 30, 2012 increased $0.6 million, or 14.1%, over the same period in 2011 primarily due to aforementioned expansion. Professional fees and outside services increased approximately $0.5 million, or 23.5%, for the three months ended September 30, 2012 as compared to the same period in 2011, due primarily to a nonrecurring consulting fee incurred during the period. Merger related expenses totaled $0.6 million for the three months ended September 30, 2012 as compared with $0.2 for the same period in 2011, which also contributed to the increase in noninterest expense for the period. Other operating expenses increased $0.8 million for the three months ended September 30, 2012 as compared to the same period in 2011. Income tax expense for the three month period ended September 30, 2012 was $5.5 million, up from $5.1 million for the same period in 2011. The effective tax rate was 27.5% for the three months ended September 30, 2012, compared to 25.2% for the same period in 2011.
Balance Sheet
Total assets were $6.0 billion at September 30, 2012, up $430.5 million or 7.7% from December 31, 2011. Loans and leases were $4.3 billion at September 30, 2012, up $450.9 million from December 31, 2011. Total deposits were $4.8 billion at September 30, 2012, up $438.9 million from December 31, 2011. Stockholders' equity was $576.7 million, representing a total equity-to-total assets ratio of 9.56% at September 30, 2012, compared with $538.1 million or a total equity-to-total assets ratio of 9.61% at December 31, 2011.
Stock Repurchase Program
Under previously disclosed stock repurchase plans, the Company purchased 769,568 shares of its common stock during the nine month period ended September 30, 2012, for a total of $15.5 million at an average price of $20.13 per share. At September 30, 2012, there were 748,013 shares available for repurchase under a previously disclosed repurchase plan, which expires on December 31, 2013.
Dividend
The NBT Board of Directors declared a 2012 fourth-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on December 15, 2012 to shareholders of record as of December 1, 2012.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $6.0 billion at September 30, 2012. The company primarily operates through NBT Bank, N.A., a full-service community bank with three divisions, and through two financial services companies. NBT Bank, N.A. has 137 locations, including 97 NBT Bank offices in upstate New York, northwestern Vermont and western Massachusetts, 35 Pennstar Bank offices in northeastern Pennsylvania, and 5 Hampshire First Bank offices in southern New Hampshire. 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.hampshirefirst.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 update forward-looking statements to reflect subsequent circumstances or events.
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
| | | | | | | | Net | | | Percent | |
| | 2012 | | | 2011 | | | Change | | | Change | |
| | (dollars in thousands, except per share data) | | | | | | | |
| | | | | | | | | | | | |
| Three Months Ended September 30, | | | | | | | | | | | | |
| Net Income | | $ | 14,535 | | | $ | 15,217 | | | $ | (682 | ) | | | -4 | % |
| Diluted Earnings Per Share | | $ | 0.43 | | | $ | 0.45 | | | $ | (0.02 | ) | | | -4 | % |
| Weighted Average Diluted Common Shares Outstanding | | | 33,961,375 | | | | 33,567,564 | | | | 393,811 | | | | 1 | % |
| Return on Average Assets (1) | | | 0.97 | % | | | 1.12 | % | | | -15 | bp | | | -13 | % |
| Return on Average Equity (1) | | | 10.13 | % | | | 11.21 | % | | | -108 | bp | | | -10 | % |
| Net Interest Margin (2) | | | 3.90 | % | | | 4.14 | % | | | -24 | bp | | | -6 | % |
| | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, | | | | | | | | | | | | | | | | |
| Net Income | | $ | 41,442 | | | $ | 44,179 | | | $ | (2,737 | ) | | | -6 | % |
| Diluted Earnings Per Share | | $ | 1.23 | | | $ | 1.29 | | | $ | (0.06 | ) | | | -5 | % |
| Weighted Average Diluted Common Shares Outstanding | | | 33,626,071 | | | | 34,159,833 | | | | (533,762 | ) | | | -2 | % |
| Return on Average Assets (1) | | | 0.95 | % | | | 1.09 | % | | | -14 | bp | | | -13 | % |
| Return on Average Equity (1) | | | 9.97 | % | | | 10.95 | % | | | -98 | bp | | | -9 | % |
| Net Interest Margin (2) | | | 3.87 | % | | | 4.13 | % | | | -26 | bp | | | -6 | % |
| | | | | | | | | | | | | | | | |
| Asset Quality | | September 30, | | | December 31, | | | | | | | | | |
| | | 2012 | | | | 2011 | | | | | | | | | |
| Nonaccrual Loans | | $ | 42,661 | | | $ | 38,290 | | | | | | | | | |
| 90 Days Past Due and Still Accruing | | $ | 2,963 | | | $ | 3,190 | | | | | | | | | |
| Total Nonperforming Loans | | $ | 45,624 | | | $ | 41,480 | | | | | | | | | |
| Other Real Estate Owned | | $ | 1,863 | | | $ | 2,160 | | | | | | | | | |
| Total Nonperforming Assets | | $ | 47,487 | | | $ | 43,640 | | | | | | | | | |
| Allowance for Loan and Lease Losses | | $ | 70,734 | | | $ | 71,334 | | | | | | | | | |
| Allowance for Loan and Lease Losses to Total Loans and Leases | | | 1.66 | % | | | 1.88 | % | | | | | | | | |
| Total Nonperforming Loans to Total Loans and Leases | | | 1.07 | % | | | 1.09 | % | | | | | | | | |
| Total Nonperforming Assets to Total Assets | | | 0.79 | % | | | 0.78 | % | | | | | | | | |
| Past Due Loans to Total Loans and Leases | | | 0.65 | % | | | 0.89 | % | | | | | | | | |
| Allowance for Loan and Lease Losses to Total Nonperforming Loans | | | 155.04 | % | | | 171.97 | % | | | | | | | | |
| Net Charge-Offs to YTD Average Loans and Leases (1) | | | 0.47 | % | | | 0.56 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Capital | | | | | | | | | | | | | | | | |
| Equity to Assets | | | 9.56 | % | | | 9.61 | % | | | | | | | | |
| Book Value Per Share | | $ | 17.09 | | | $ | 16.23 | | | | | | | | | |
| Tangible Book Value Per Share (3) | | $ | 12.06 | | | $ | 11.70 | | | | | | | | | |
| Tier 1 Leverage Ratio | | | 8.51 | % | | | 8.74 | % | | | | | | | | |
| Tier 1 Capital Ratio | | | 10.82 | % | | | 11.56 | % | | | | | | | | |
| Total Risk-Based Capital Ratio | | | 12.07 | % | | | 12.81 | % | | | | | | | | |
| Quarterly Common Stock Price | | 2012 | | | 2011 | |
| Quarter End | | High | | | Low | | | High | | | Low | |
| March 31 | | $ | 24.10 | | | $ | 20.75 | | | $ | 24.98 | | | $ | 21.55 | |
| June 30 | | $ | 22.50 | | | $ | 19.19 | | | $ | 23.32 | | | $ | 20.62 | |
| September 30 | | $ | 22.89 | | | $ | 19.91 | | | $ | 23.25 | | | $ | 17.05 | |
| December 31 | | | | | | | | | | $ | 22.63 | | | $ | 17.47 | |
| (2) | Calculated on a FTE basis |
| (3) | Tangible equity (total equity minus intangible assets) divided by common shares outstanding |
| NBT Bancorp Inc. and Subsidiaries | | September 30, | | | December 31, | |
| Consolidated Balance Sheets (unaudited) | | 2012 | | | 2011 | |
| (in thousands) | | | | | | |
| | | | | | |
| ASSETS | | | | | | |
| Cash and due from banks | | $ | 137,747 | | | $ | 128,517 | |
| Short term interest bearing accounts | | | 2,693 | | | | 864 | |
| Securities available for sale, at fair value | | | 1,191,107 | | | | 1,244,619 | |
Securities held to maturity (fair value of $62,401 and $72,198 at September 30, 2012 and December 31, 2011, respectively) | | | 61,302 | | | | 70,811 | |
| Trading securities | | | 3,851 | | | | 3,062 | |
| Federal Reserve and Federal Home Loan Bank stock | | | 28,706 | | | | 27,020 | |
| Loans and leases | | | 4,251,119 | | | | 3,800,203 | |
| Less allowance for loan and lease losses | | | 70,734 | | | | 71,334 | |
| Net loans and leases | | | 4,180,385 | | | | 3,728,869 | |
| Premises and equipment, net | | | 77,326 | | | | 74,541 | |
| Goodwill | | | 152,251 | | | | 132,029 | |
| Intangible assets, net | | | 17,346 | | | | 18,194 | |
| Bank owned life insurance | | | 79,854 | | | | 77,626 | |
| Other assets | | | 96,348 | | | | 92,254 | |
| TOTAL ASSETS | | $ | 6,028,916 | | | $ | 5,598,406 | |
| | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| Deposits: | | | | | | | | |
| Demand (noninterest bearing) | | $ | 1,187,502 | | | $ | 1,052,906 | |
| Savings, NOW, and money market | | | 2,599,556 | | | | 2,381,116 | |
| Time | | | 1,018,957 | | | | 933,127 | |
| Total deposits | | | 4,806,015 | | | | 4,367,149 | |
| Short-term borrowings | | | 137,365 | | | | 181,592 | |
| Long-term debt | | | 367,144 | | | | 370,344 | |
| Trust preferred debentures | | | 75,422 | | | | 75,422 | |
| Other liabilities | | | 66,309 | | | | 65,789 | |
| Total liabilities | | | 5,452,255 | | | | 5,060,296 | |
| | | | | | | | |
| Total stockholders' equity | | | 576,661 | | | | 538,110 | |
| | | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 6,028,916 | | | $ | 5,598,406 | |
| | | Three Months Ended | | | Nine Months Ended | |
| NBT Bancorp Inc. and Subsidiaries | | September 30, | | | September 30, | |
| Consolidated Statements of Income (unaudited) | | 2012 | | | 2011 | | | 2012 | | | 2011 | |
| (in thousands, except per share data) | | | | | | |
| Interest, fee and dividend income: | | | | | | | | | | | | |
| Loans and leases | | $ | 53,817 | | | $ | 50,991 | | | $ | 154,534 | | | $ | 152,977 | |
| Securities available for sale | | | 6,550 | | | | 7,771 | | | | 21,024 | | | | 23,622 | |
| Securities held to maturity | | | 572 | | | | 680 | | | | 1,829 | | | | 2,225 | |
| Other | | | 348 | | | | 342 | | | | 1,153 | | | | 1,275 | |
| Total interest, fee and dividend income | | | 61,287 | | | | 59,784 | | | | 178,540 | | | | 180,099 | |
| Interest expense: | | | | | | | | | | | | | | | | |
| Deposits | | | 4,544 | | | | 5,352 | | | | 14,521 | | | | 17,690 | |
| Short-term borrowings | | | 60 | | | | 56 | | | | 149 | | | | 166 | |
| Long-term debt | | | 3,640 | | | | 3,621 | | | | 10,801 | | | | 10,783 | |
| Trust preferred debentures | | | 436 | | | | 394 | | | | 1,319 | | | | 1,683 | |
| Total interest expense | | | 8,680 | | | | 9,423 | | | | 26,790 | | | | 30,322 | |
| Net interest income | | | 52,607 | | | | 50,361 | | | | 151,750 | | | | 149,777 | |
| Provision for loan and lease losses | | | 4,755 | | | | 5,175 | | | | 13,329 | | | | 15,161 | |
| Net interest income after provision for loan and lease losses | | | 47,852 | | | | 45,186 | | | | 138,421 | | | | 134,616 | |
| Noninterest income: | | | | | | | | | | | | | | | | |
| Insurance and other financial services revenue | | | 5,591 | | | | 5,127 | | | | 17,024 | | | | 15,925 | |
| Service charges on deposit accounts | | | 4,626 | | | | 5,532 | | | | 13,538 | | | | 16,059 | |
| ATM and debit card fees | | | 3,378 | | | | 3,135 | | | | 9,403 | | | | 8,731 | |
| Retirement plan administration fees | | | 2,718 | | | | 2,295 | | | | 7,462 | | | | 6,734 | |
| Trust | | | 2,242 | | | | 2,090 | | | | 6,683 | | | | 6,384 | |
| Bank owned life insurance income | | | 639 | | | | 674 | | | | 2,228 | | | | 2,369 | |
| Net securities gains | | | 26 | | | | 12 | | | | 578 | | | | 98 | |
| Other | | | 2,407 | | | | 1,329 | | | | 8,449 | | | | 3,881 | |
| Total noninterest income | | | 21,627 | | | | 20,194 | | | | 65,365 | | | | 60,181 | |
| Noninterest expense: | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 26,641 | | | | 25,068 | | | | 78,358 | | | | 74,107 | |
| Occupancy | | | 4,437 | | | | 3,887 | | | | 13,150 | | | | 12,396 | |
| Data processing and communications | | | 3,352 | | | | 3,054 | | | | 10,041 | | | | 9,085 | |
| Professional fees and outside services | | | 2,735 | | | | 2,215 | | | | 7,848 | | | | 6,369 | |
| Equipment | | | 2,435 | | | | 2,288 | | | | 7,224 | | | | 6,658 | |
| Office supplies and postage | | | 1,597 | | | | 1,531 | | | | 4,842 | | | | 4,418 | |
| FDIC expenses | | | 939 | | | | 920 | | | | 2,812 | | | | 3,381 | |
| Advertising | | | 701 | | | | 685 | | | | 2,308 | | | | 2,286 | |
| Amortization of intangible assets | | | 870 | | | | 782 | | | | 2,530 | | | | 2,286 | |
| Loan collection and other real estate owned | | | 614 | | | | 676 | | | | 2,051 | | | | 1,838 | |
| Merger | | | 558 | | | | 155 | | | | 1,895 | | | | 155 | |
| Other operating | | | 4,552 | | | | 3,785 | | | | 12,236 | | | | 10,285 | |
| Total noninterest expense | | | 49,431 | | | | 45,046 | | | | 145,295 | | | | 133,264 | |
| Income before income taxes | | | 20,048 | | | | 20,334 | | | | 58,491 | | | | 61,533 | |
| Income taxes | | | 5,513 | | | | 5,117 | | | | 17,049 | | | | 17,354 | |
| Net income | | $ | 14,535 | | | $ | 15,217 | | | $ | 41,442 | | | $ | 44,179 | |
| Earnings Per Share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.43 | | | $ | 0.46 | | | $ | 1.24 | | | $ | 1.30 | |
| Diluted | | $ | 0.43 | | | $ | 0.45 | | | $ | 1.23 | | | $ | 1.29 | |
| NBT Bancorp Inc. and Subsidiaries | | | 3Q | | | | 2Q | | | | 1Q | | | | 4Q | | | | 3Q | |
| Quarterly Consolidated Statements of Income (unaudited) | | | 2012 | | | | 2012 | | | | 2012 | | | | 2011 | | | | 2011 | |
| (in thousands, except per share data) | | | | | | | | | | | | | | | | | | | | |
| Interest, fee and dividend income: | | | | | | | | | | | | | | | | | | | | |
| Loans and leases | | $ | 53,817 | | | $ | 50,509 | | | $ | 50,208 | | | $ | 51,393 | | | $ | 50,991 | |
| Securities available for sale | | | 6,550 | | | | 7,108 | | | | 7,366 | | | | 7,461 | | | | 7,771 | |
| Securities held to maturity | | | 572 | | | | 617 | | | | 640 | | | | 661 | | | | 680 | |
| Other | | | 348 | | | | 413 | | | | 392 | | | | 383 | | | | 342 | |
| Total interest, fee and dividend income | | | 61,287 | | | | 58,647 | | | | 58,606 | | | | 59,898 | | | | 59,784 | |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 4,544 | | | | 4,834 | | | | 5,143 | | | | 5,330 | | | | 5,352 | |
| Short-term borrowings | | | 60 | | | | 48 | | | | 41 | | | | 39 | | | | 56 | |
| Long-term debt | | | 3,640 | | | | 3,580 | | | | 3,581 | | | | 3,621 | | | | 3,621 | |
| Trust preferred debentures | | | 436 | | | | 434 | | | | 449 | | | | 409 | | | | 394 | |
| Total interest expense | | | 8,680 | | | | 8,896 | | | | 9,214 | | | | 9,399 | | | | 9,423 | |
| Net interest income | | | 52,607 | | | | 49,751 | | | | 49,392 | | | | 50,499 | | | | 50,361 | |
| Provision for loan and lease losses | | | 4,755 | | | | 4,103 | | | | 4,471 | | | | 5,576 | | | | 5,175 | |
| Net interest income after provision for loan and lease losses | | | 47,852 | | | | 45,648 | | | | 44,921 | | | | 44,923 | | | | 45,186 | |
| Noninterest income: | | | | | | | | | | | | | | | | | | | | |
| Insurance and other financial services revenue | | | 5,591 | | | | 5,279 | | | | 6,154 | | | | 4,918 | | | | 5,127 | |
| Service charges on deposit accounts | | | 4,626 | | | | 4,571 | | | | 4,341 | | | | 5,405 | | | | 5,532 | |
| ATM and debit card fees | | | 3,378 | | | | 3,063 | | | | 2,962 | | | | 2,911 | | | | 3,135 | |
| Retirement plan administration fees | | | 2,718 | | | | 2,411 | | | | 2,333 | | | | 2,184 | | | | 2,295 | |
| Trust | | | 2,242 | | | | 2,312 | | | | 2,129 | | | | 2,480 | | | | 2,090 | |
| Bank owned life insurance income | | | 639 | | | | 618 | | | | 971 | | | | 716 | | | | 674 | |
| Net securities gains | | | 26 | | | | 97 | | | | 455 | | | | 52 | | | | 12 | |
| Other | | | 2,407 | | | | 2,331 | | | | 3,711 | | | | 1,464 | | | | 1,329 | |
| Total noninterest income | | | 21,627 | | | | 20,682 | | | | 23,056 | | | | 20,130 | | | | 20,194 | |
| Noninterest expense: | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 26,641 | | | | 24,992 | | | | 26,725 | | | | 25,105 | | | | 25,068 | |
| Occupancy | | | 4,437 | | | | 4,222 | | | | 4,491 | | | | 3,967 | | | | 3,887 | |
| Data processing and communications | | | 3,352 | | | | 3,431 | | | | 3,258 | | | | 3,186 | | | | 3,054 | |
| Professional fees and outside services | | | 2,735 | | | | 2,388 | | | | 2,725 | | | | 2,552 | | | | 2,215 | |
| Equipment | | | 2,435 | | | | 2,409 | | | | 2,380 | | | | 2,206 | | | | 2,288 | |
| Office supplies and postage | | | 1,597 | | | | 1,574 | | | | 1,671 | | | | 1,655 | | | | 1,531 | |
| FDIC expenses | | | 939 | | | | 942 | | | | 931 | | | | 886 | | | | 920 | |
| Advertising | | | 701 | | | | 805 | | | | 802 | | | | 1,174 | | | | 685 | |
| Amortization of intangible assets | | | 870 | | | | 841 | | | | 819 | | | | 760 | | | | 782 | |
| Loan collection and other real estate owned | | | 614 | | | | 799 | | | | 638 | | | | 793 | | | | 676 | |
| Merger | | | 558 | | | | 826 | | | | 511 | | | | 649 | | | | 155 | |
| Other operating | | | 4,552 | | | | 4,161 | | | | 3,523 | | | | 4,479 | | | | 3,785 | |
| Total noninterest expense | | | 49,431 | | | | 47,390 | | | | 48,474 | | | | 47,412 | | | | 45,046 | |
| Income before income taxes | | | 20,048 | | | | 18,940 | | | | 19,503 | | | | 17,641 | | | | 20,334 | |
| Income taxes | | | 5,513 | | | | 5,683 | | | | 5,853 | | | | 3,919 | | | | 5,117 | |
| Net income | | $ | 14,535 | | | $ | 13,257 | | | $ | 13,650 | | | $ | 13,722 | | | $ | 15,217 | |
| Earnings per share: | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.43 | | | $ | 0.40 | | | $ | 0.41 | | | $ | 0.42 | | | $ | 0.46 | |
| Diluted | | $ | 0.43 | | | $ | 0.40 | | | $ | 0.41 | | | $ | 0.41 | | | $ | 0.45 | |
| Three Months ended September 30, | | | | | | | | | | | | | | | | | | |
| | | | | 2012 | | | | | | | | | 2011 | | | | |
| | Average | | | | | | Yield/ | | | Average | | | | | | Yield/ | |
| (dollars in thousands) | | Balance | | | Interest | | | Rates | | | Balance | | | Interest | | | Rates | |
| ASSETS | | | | | | | | | | | | | | | | | | |
| Short-term interest bearing accounts | | $ | 10,392 | | | $ | 11 | | | | 0.43 | % | | $ | 25,088 | | | $ | 11 | | | | 0.17 | % |
| Securities available for sale (1)(excluding unrealized gains or losses) | | | 1,168,326 | | | | 7,023 | | | | 2.39 | % | | | 1,120,083 | | | | 8,317 | | | | 2.95 | % |
| Securities held to maturity (1) | | | 62,746 | | | | 861 | | | | 5.46 | % | | | 74,482 | | | | 1,026 | | | | 5.46 | % |
| Investment in FRB and FHLB Banks | | | 28,706 | | | | 337 | | | | 4.67 | % | | | 27,022 | | | | 329 | | | | 4.84 | % |
| Loans and leases (2) | | | 4,197,046 | | | | 54,046 | | | | 5.12 | % | | | 3,686,693 | | | | 51,227 | | | | 5.51 | % |
| Total interest earning assets | | $ | 5,467,216 | | | $ | 62,278 | | | | 4.53 | % | | $ | 4,933,368 | | | $ | 60,910 | | | | 4.90 | % |
| Other assets | | | 504,194 | | | | | | | | | | | | 442,275 | | | | | | | | | |
| Total assets | | $ | 5,971,410 | | | | | | | | | | | $ | 5,375,643 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | | | | | | |
| Money market deposit accounts | | $ | 1,111,624 | | | $ | 495 | | | | 0.18 | % | | $ | 1,036,572 | | | $ | 811 | | | | 0.31 | % |
| NOW deposit accounts | | | 686,768 | | | | 377 | | | | 0.22 | % | | | 631,284 | | | | 483 | | | | 0.30 | % |
| Savings deposits | | | 706,927 | | | | 149 | | | | 0.08 | % | | | 615,168 | | | | 170 | | | | 0.11 | % |
| Time deposits | | | 1,035,868 | | | | 3,523 | | | | 1.35 | % | | | 882,896 | | | | 3,888 | | | | 1.75 | % |
| Total interest bearing deposits | | $ | 3,541,187 | | | $ | 4,544 | | | | 0.51 | % | | $ | 3,165,920 | | | $ | 5,352 | | | | 0.67 | % |
| Short-term borrowings | | | 178,277 | | | | 60 | | | | 0.13 | % | | | 172,370 | | | | 56 | | | | 0.13 | % |
| Trust preferred debentures | | | 75,422 | | | | 436 | | | | 2.30 | % | | | 75,422 | | | | 394 | | | | 2.07 | % |
| Long-term debt | | | 367,146 | | | | 3,640 | | | | 3.94 | % | | | 370,349 | | | | 3,621 | | | | 3.88 | % |
| Total interest bearing liabilities | | $ | 4,162,032 | | | $ | 8,680 | | | | 0.83 | % | | $ | 3,784,061 | | | $ | 9,423 | | | | 0.99 | % |
| Demand deposits | | | 1,173,638 | | | | | | | | | | | | 983,318 | | | | | | | | | |
| Other liabilities | | | 64,860 | | | | | | | | | | | | 69,860 | | | | | | | | | |
| Stockholders' equity | | | 570,880 | | | | | | | | | | | | 538,404 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 5,971,410 | | | | | | | | | | | $ | 5,375,643 | | | | | | | | | |
| Net interest income (FTE) | | | | | | | 53,598 | | | | | | | | | | | | 51,487 | | | | | |
| Interest rate spread | | | | | | | | | | | 3.70 | % | | | | | | | | | | | 3.91 | % |
| Net interest margin | | | | | | | | | | | 3.90 | % | | | | | | | | | | | 4.14 | % |
| Taxable equivalent adjustment | | | | | | | 991 | | | | | | | | | | | | 1,126 | | | | | |
| Net interest income | | | | | | $ | 52,607 | | | | | | | | | | | $ | 50,361 | | | | | |
| (1) | Securities are shown at average amortized cost |
| (2) | For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding |
| Nine Months ended September 30, | | | | | | | | | | | | | | | | | | |
| | | | | 2012 | | | | | | | | | 2011 | | | | |
| | Average | | | | | | Yield/ | | | Average | | | | | | Yield/ | |
| (dollars in thousands) | | Balance | | | Interest | | | Rates | | | Balance | | | Interest | | | Rates | |
| ASSETS | | | | | | | | | | | | | | | | | | |
| Short-term interest bearing accounts | | $ | 64,040 | | | $ | 131 | | | | 0.27 | % | | $ | 97,973 | | | $ | 191 | | | | 0.26 | % |
| Securities available for sale (1)(excluding unrealized gains or losses) | | | 1,196,389 | | | | 22,483 | | | | 2.51 | % | | | 1,105,777 | | | | 25,330 | | | | 3.06 | % |
| Securities held to maturity (1) | | | 67,237 | | | | 2,757 | | | | 5.48 | % | | | 84,660 | | | | 3,353 | | | | 5.29 | % |
| Investment in FRB and FHLB Banks | | | 27,874 | | | | 1,022 | | | | 4.90 | % | | | 27,112 | | | | 1,084 | | | | 5.34 | % |
| Loans and leases (2) | | | 3,982,486 | | | | 155,230 | | | | 5.21 | % | | | 3,650,667 | | | | 153,678 | | | | 5.63 | % |
| Total interest earning assets | | $ | 5,338,026 | | | $ | 181,623 | | | | 4.54 | % | | $ | 4,966,189 | | | $ | 183,636 | | | | 4.94 | % |
| Other assets | | | 476,575 | | | | | | | | | | | | 428,959 | | | | | | | | | |
| Total assets | | $ | 5,814,601 | | | | | | | | | | | $ | 5,395,148 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | | | | | | |
| Money market deposit accounts | | $ | 1,105,616 | | | $ | 1,646 | | | | 0.20 | % | | $ | 1,070,971 | | | $ | 2,937 | | | | 0.37 | % |
| NOW deposit accounts | | | 695,502 | | | | 1,387 | | | | 0.27 | % | | | 667,012 | | | | 1,745 | | | | 0.35 | % |
| Savings deposits | | | 675,346 | | | | 391 | | | | 0.08 | % | | | 599,173 | | | | 517 | | | | 0.12 | % |
| Time deposits | | | 988,596 | | | | 11,097 | | | | 1.50 | % | | | 911,161 | | | | 12,491 | | | | 1.83 | % |
| Total interest bearing deposits | | $ | 3,465,060 | | | $ | 14,521 | | | | 0.56 | % | | $ | 3,248,317 | | | $ | 17,690 | | | | 0.73 | % |
| Short-term borrowings | | | 170,903 | | | | 149 | | | | 0.12 | % | | | 153,857 | | | | 166 | | | | 0.14 | % |
| Trust preferred debentures | | | 75,422 | | | | 1,319 | | | | 2.34 | % | | | 75,422 | | | | 1,683 | | | | 2.98 | % |
| Long-term debt | | | 368,592 | | | | 10,801 | | | | 3.91 | % | | | 369,930 | | | | 10,783 | | | | 3.90 | % |
| Total interest bearing liabilities | | $ | 4,079,977 | | | $ | 26,790 | | | | 0.88 | % | | $ | 3,847,526 | | | $ | 30,322 | | | | 1.05 | % |
| Demand deposits | | | 1,116,210 | | | | | | | | | | | | 940,332 | | | | | | | | | |
| Other liabilities | | | 63,232 | | | | | | | | | | | | 67,968 | | | | | | | | | |
| Stockholders' equity | | | 555,182 | | | | | | | | | | | | 539,322 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 5,814,601 | | | | | | | | | | | $ | 5,395,148 | | | | | | | | | |
| Net interest income (FTE) | | | | | | | 154,833 | | | | | | | | | | | | 153,314 | | | | | |
| Interest rate spread | | | | | | | | | | | 3.67 | % | | | | | | | | | | | 3.89 | % |
| Net interest margin | | | | | | | | | | | 3.87 | % | | | | | | | | | | | 4.13 | % |
| Taxable equivalent adjustment | | | | | | | 3,083 | | | | | | | | | | | | 3,537 | | | | | |
| Net interest income | | | | | | $ | 151,750 | | | | | | | | | | | $ | 149,777 | | | | | |
| (1) | Securities are shown at average amortized cost |
| (2) | For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding |
| NBT Bancorp Inc. and Subsidiaries | | | | |
| Loans and Leases (Unaudited) | | | | |
| | | | |
| September 30, | | December 31, | |
| (In thousands) | 2012 | | 2011 | |
| Residential real estate mortgages | | $ | 650,448 | | | $ | 581,511 | |
| Commercial | | | 697,213 | | | | 611,298 | |
| Commercial real estate mortgages | | | 1,083,675 | | | | 888,879 | |
| Real estate construction and development | | | 99,181 | | | | 93,977 | |
| Agricultural and agricultural real estate mortgages | | | 112,822 | | | | 108,423 | |
| Consumer | | | 1,031,572 | | | | 946,470 | |
| Home equity | | | 576,208 | | | | 569,645 | |
| Total loans and leases | | $ | 4,251,119 | | | $ | 3,800,203 | |
