Exhibit 99.1
| 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 REPORTED NET INCOME OF $27.6 MILLION AND CORE NET INCOME OF $19.1 MILLION FOR THE SECOND QUARTER OF 2014; DECLARES CASH DIVIDEND
NORWICH, NY (July 28, 2014) – NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported net income for the three months ended June 30, 2014 was $27.6 million, up from $18.0 million for the previous quarter, and up from $16.9 million for the same period last year. Reported net income included an $11.2 million net gain (after taxes and related incentive compensation) on the sale of our ownership interest in Springstone LLC (“Springstone”), partially offset by $2.9 million in prepayment penalties, net of tax, related to our long-term debt restructure strategy. Reported earnings per diluted share for the three months ended June 30, 2014 was $0.62 as compared to $0.41 for the previous quarter and $0.38 for the same period in 2013.
Core net income for the three months ended June 30, 2014 was $19.1 million, up 3.5% from $18.4 million for the previous quarter and up 6.9% from $17.8 million for the same period in 2013. Core diluted earnings per share for the three months ended June 30, 2014 was $0.43, up from $0.42 for the previous quarter and up from $0.40 for the same period in 2013.
Reported net income for the six months ended June 30, 2014 was $45.6 million, up from $24.6 million for the same period last year, which included the aforementioned net Springstone gain and long-term prepayment penalties in 2014 and approximately $12.0 million in merger-related expenses in 2013. Reported earnings per diluted share for the six months ended June 30, 2014 was $1.03 as compared to $0.61 for the same period in 2013.
Core net income for the six months ended June 30, 2014 was $37.5 million, up 16.8% from $32.1 million for the same period in 2013. Core diluted earnings per share for the six months ended June 30, 2014 was $0.85, up from $0.79 for the same period in 2013.
The second quarter and first half reported results for 2014 and 2013 both contained items which the Company considers non-core, such as gain on the sale of the Springstone equity investment, long-term debt restructure prepayment penalties, merger expenses, securities gains, and other items not considered core to our operations.
Second Quarter 2014 Highlights:
| | · | Strong organic loan growth continued in the second quarter of 2014 annualized at 6.8% |
| | · | Past due loans to total loans was 0.57% for the second quarter of 2014, consistent with the previous quarter, and down from 0.77% at the end of 2013 |
| | · | Sold 20% ownership interest in Springstone recognizing a $19.4 million gain during the quarter |
| | · | Restructured $165 million in long-term borrowings, resulting in $4.6 million in prepayment penalties (non-core) recognized in the second quarter of 2014 and expecting to recognize additional prepayment penalties (non-core) in the third quarter of 2014 upon completion of the restructure strategy |
| | o | The fully executed strategy is expected to lower the cost of the restructured long-term debt by approximately 200 basis points and is expected to improve our interest rate risk profile |
“We are pleased to report that our core net income for the second quarter of 2014 reached a near-record level and is second only to our core net income for the third quarter of 2013," said NBT President and CEO Martin Dietrich. "Our dedicated and customer-focused team continues to promote strong organic loan growth and excellent asset quality. We continuously strive to manage our company and our balance sheet strategically for the long-term value of our shareholders as demonstrated by the sale of our ownership interest in Springstone Financial, LLC and leveraging that transaction to restructure our long-term borrowings.”
Net interest income was $62.6 million for the second quarter of 2014, up 1.7% from the previous quarter, and up 1.5% from the same period last year. Fully taxable equivalent (“FTE”) net interest margin was 3.60% for the three months ended June 30, 2014, down from 3.63% from the prior quarter, and down from 3.69% for the second quarter of 2013. Average interest earning assets were up $90.9 million, or 1.3%, for the second quarter of 2014 as compared to the prior quarter, driven primarily by organic loan production. Slight rate compression on earning assets continued to negatively impact net interest margin in the second quarter of 2014 as evidenced by decreasing loan yields from 4.50% for the first quarter of 2014 to 4.42% for the second quarter of 2014. Average interest bearing liabilities increased $37.1 million, or 0.7%, from the first quarter of 2014 to the second quarter of 2014. The rates paid on interest bearing liabilities decreased by 7 basis points from the first quarter of 2014 to the second quarter of 2014. This decrease was primarily driven by a decrease of 4 basis points in rates paid on deposits as well as a 34 basis point decrease in the rate paid on long-term debt resulting from the aforementioned debt restructuring in the second quarter of 2014.
Net interest income was $124.1 million for the six months ended June 30, 2014, up 9.0% from the same period in 2013. FTE net interest margin was 3.62% for the six months ended June 30, 2014, down from 3.68% from the six months ended June 30, 2013. Average interest earning assets were up $683.5 million, or 10.8%, for the six months ended June 30, 2014 as compared to the same period in 2013. This increase was driven primarily by the acquisition of Alliance Financial Corporation (“Alliance”) in March 2013 as well as organic loan production during the past several quarters. The yield on earning assets for the six months ended June 30, 2014 was down 22 basis points from the same period in 2013, driven primarily by the decrease in loan yields from 4.81% for the first six months of 2013 to 4.46% for the first six months of 2014. Average interest bearing liabilities increased $396.4 million, or 8.3%, for the first six months of 2014 as compared to the same period in 2013. This increase was due primarily to an increase in deposits resulting from organic deposit growth as well as the aforementioned acquisition of Alliance. The rates paid on interest bearing liabilities for the first half of 2014 decreased by 19 basis points from the first six months of 2013. This decrease was primarily driven by a decrease of 12 basis points in rates paid on deposits as well as a 51 basis point decrease in the rate paid on long-term debt due primarily to maturity of long-term debt in the prior year, as well as the aforementioned debt restructuring in the second quarter of 2014.
Noninterest income for the three months ended June 30, 2014 was $46.0 million, up $19.8 million from the previous quarter, and up $20.5 million from the same period in 2013. The increase from the prior quarter and 2013 was primarily driven by a $19.4 million gain from the previously disclosed sale of our ownership interest in Springstone. Excluding this gain, noninterest income for the three months ended June 30, 2014 was $26.6 million, up $0.3 million, or 1.3%, from the previous quarter, and up $1.1 million, or 4.3%, from the same period in 2013.
Noninterest income for the six months ended June 30, 2014 was $72.3 million, up $21.5 million, or 42.4%, from the same period in 2013. The increase from 2013 was primarily driven by the aforementioned $19.4 million gain recorded in the second quarter of 2014. Excluding this gain, noninterest income for the six months ended June 30, 2014 was $52.9 million, up $2.1 million, or 4.2%, from the same period in 2013. This increase from 2013 was due primarily to increases in trust and ATM and debit card fees, due in large part to the full impact from Alliance in 2014. These increases were partially offset by decreases in service charges on deposit accounts and net securities gains for the first six months of 2014 as compared with the same period in 2013. The decrease in service charges on deposit accounts from the prior year was due primarily to lower nonsufficient funds fees recorded during the first six months of 2014.
Noninterest expense for the three months ended June 30, 2014 was $62.7 million, up $5.2 million from the previous quarter, and up $6.3 million from the same period in 2013. This increase from the prior quarter and 2013 was due primarily to $4.6 million of prepayment penalties from the aforementioned strategic long-term debt restructuring in the second quarter of 2014. Excluding these prepayment penalties, noninterest expense for the three months ended June 30, 2014 was $58.2 million, up $0.7 million, or 1.2% from the previous quarter, and up $1.7 million, or 3.1%, from the same period in 2013. This increase from the prior year was due primarily to a $2.0 million increase in salaries and employee benefits driven by an increase in incentive compensation related to the Springstone transaction.
Noninterest expense for the six months ended June 30, 2014 was $120.3 million, up $3.1 million from the same period in 2013. Excluding the aforementioned $4.6 million prepayment penalties in 2014 and the merger related expenses totaling $12.0 million in the first six months of 2013, noninterest expense for the six months ended June 30, 2014 was $115.7 million, up $10.5 million, or 10.0% from the same period in 2013. This increase from the six months ended June 30, 2013 was due primarily to 2014 including the full six months of Alliance expenses including occupancy, salaries and employee benefits, data processing, professional fees, and equipment. In addition, the increase in salaries and benefits included incremental incentive compensation related to the Springstone transaction, partially offset by lower retirement plan expenses due mainly to plan asset performance and a previous plan amendment.
The effective tax rate was 33.7% for the second quarter of 2014, 32.5% for the first quarter of 2014, and 30.5% for the second quarter of 2013. The effective tax rate was 33.2% for the six months ended June 30, 2014, as compared to 30.5% for the first six months of 2013. The increases in the effective tax rate for the three and six month periods ending June 30, 2014 were primarily due to a higher level of taxable income as a percentage of total income as compared to the same periods in 2013.
Asset Quality
Net charge-offs were $4.1 million for the second quarter of 2014, up from $3.6 million for the first quarter of 2014, and up slightly from $4.0 million for the second quarter of 2013. Net charge-offs to average loans for the second quarter of 2014 was 0.30%, compared to 0.27% for the first quarter of 2014 and 0.30% for the same period in 2013. NBT recorded a provision for loan losses of $4.2 million for the three months ended June 30, 2014, compared with $3.6 million for the previous quarter, and $6.4 million for the same period in 2013.
Nonperforming loans to total loans was 0.96% at June 30, 2014, down from 0.99% at March 31, 2014 and December 31, 2013. Past due loans as a percentage of total loans was 0.57% for the second quarter of 2014, which was equivalent to the first quarter of 2014, and down from 0.77% as of December 31, 2013.
The allowance for loan losses totaled $69.5 million at June 30, 2014, up slightly from $69.4 million at December 31, 2013. The allowance for loan losses as a percentage of loans was 1.25% (1.44% excluding acquired loans) at June 30, 2014, compared to 1.27% (1.51% excluding acquired loans with no related allowance recorded) at March 31, 2014 and 1.28% (1.55% excluding acquired loans with no related allowance recorded) at December 31, 2013.
Balance Sheet
Total assets were $7.9 billion at June 30, 2014, up $217.3 million or 2.8% from December 31, 2013. Loans were $5.6 billion at June 30, 2014, up $167.7 million from December 31, 2013. Total deposits were $6.0 billion at June 30, 2014, up $152.4 million from December 31, 2013. Stockholders’ equity was $857.1 million, representing a total equity-to-total assets ratio of 10.89% at June 30, 2014, compared with $816.6 million or a total equity-to-total assets ratio of 10.67% at December 31, 2013.
Stock Repurchase Program
The Company purchased 3,288 shares of its common stock during the six months ended June 30, 2014 at an average price of $22.02 per share under a previously announced plan. As of June 30, 2014, there were 996,712 shares available for repurchase under this plan, which expires on December 31, 2014.
Dividend
The NBT Board of Directors declared a 2014 third-quarter cash dividend of $0.21 per share at a meeting held today. The dividend will be paid on September 15, 2014 to shareholders of record as of September 1, 2014.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $7.9 billion at June 30, 2014. The company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A. has over 155 banking locations with offices in upstate New York, northwestern Vermont, western Massachusetts, southern New Hampshire, and 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.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.
Non-GAAP Measures
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). These measures adjust GAAP measures to exclude the effects of sales of securities and certain non-recurring and merger-related expenses. Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provided useful information that is important to an understanding of the operating results of NBT’s core business (due to the non-recurring nature of the excluded items). Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider NBT’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of NBT.
NBT Bancorp Inc. and Subsidiaries
| SELECTED FINANCIAL DATA |
| (unaudited, dollars in thousands except per share data) |
| | 2014 | | | 2013 | |
| | 2nd Q | | | 1st Q | | | 4th Q | | | 3rd Q | | | 2nd Q | |
| Reconciliation of Non-GAAP Financial Measures: | | | | | | | | | | | | | | | |
| Reported net income (GAAP) | | $ | 27,640 | | | $ | 18,009 | | | $ | 17,925 | | | $ | 19,257 | | | $ | 16,916 | |
| Adj: (Gain) / Loss on sale of securities, net (net of tax) | | | (9 | ) | | | (5 | ) | | | (9 | ) | | | (228 | ) | | | 42 | |
| Adj: Other adjustments (net of tax) (1) | | | (315 | ) | | | 430 | | | | 402 | | | | 110 | | | | - | |
| Adj: Gain on sale of Springstone (net of tax and related incentive compensation) | | | (11,168 | ) | | | - | | | | - | | | | - | | | | - | |
| Adj: Prepayment penalties related to debt restructuring (net of tax) | | | 2,925 | | | | - | | | | - | | | | - | | | | - | |
| Plus: Merger related expenses (net of tax) | | | - | | | | - | | | | 59 | | | | 224 | | | | 882 | |
| Total Adjustments | | | (8,567 | ) | | | 425 | | | | 452 | | | | 106 | | | | 924 | |
| Core net income | | $ | 19,073 | | | $ | 18,434 | | | $ | 18,377 | | | $ | 19,363 | | | $ | 17,840 | |
| | | | | | | | | | | | | | | | | | | | |
| Profitability: | | | | | | | | | | | | | | | | | | | | |
| Core Diluted Earnings Per Share | | $ | 0.43 | | | $ | 0.42 | | | $ | 0.42 | | | $ | 0.44 | | | $ | 0.40 | |
| Diluted Earnings Per Share | | $ | 0.62 | | | $ | 0.41 | | | $ | 0.41 | | | $ | 0.44 | | | $ | 0.38 | |
| Weighted Average Diluted Common Shares Outstanding | | | 44,363,787 | | | | 44,296,445 | | | | 44,121,102 | | | | 44,135,114 | | | | 44,316,531 | |
| Core Return on Average Assets (2) | | | 0.99 | % | | | 0.98 | % | | | 0.96 | % | | | 1.02 | % | | | 0.95 | % |
| Return on Average Assets (2) | | | 1.43 | % | | | 0.95 | % | | | 0.94 | % | | | 1.01 | % | | | 0.90 | % |
| Core Return on Average Equity (2) | | | 9.06 | % | | | 9.02 | % | | | 9.04 | % | | | 9.67 | % | | | 8.88 | % |
| Return on Average Equity (2) | | | 13.12 | % | | | 8.81 | % | | | 8.81 | % | | | 9.62 | % | | | 8.42 | % |
| Core Return on Average Tangible Common Equity (2)(4) | | | 14.27 | % | | | 14.48 | % | | | 14.77 | % | | | 15.95 | % | | | 14.57 | % |
| Return on Average Tangible Common Equity (2)(4) | | | 20.43 | % | | | 14.16 | % | | | 14.42 | % | | | 15.86 | % | | | 13.85 | % |
| Net Interest Margin (2)(3) | | | 3.60 | % | | | 3.63 | % | | | 3.61 | % | | | 3.65 | % | | | 3.69 | % |
| Six Months Ended June 30, | | | | | | |
| | | | | | |
| Reconciliation of Non-GAAP Financial Measures: | | 2014 | | | 2013 | |
| Reported net income (GAAP) | | $ | 45,649 | | | $ | 24,565 | |
| Adj: Gain on sale of securities, net (net of tax) | | | (14 | ) | | | (753 | ) |
| Adj: Other adjustments (net of tax) (6) | | | 115 | | | | - | |
| Adj: Gain on sale of Springstone (net of tax and related incentive compensation) | | | (11,168 | ) | | | - | |
| Adj: Prepayment penalties related to debt restructuring (net of tax) | | | 2,925 | | | | - | |
| Plus: Merger related expenses (net of tax) | | | - | | | | 8,305 | |
| Total Adjustments | | | (8,142 | ) | | | 7,552 | |
| Core net income | | $ | 37,507 | | | $ | 32,117 | |
| | | | | | | | |
| Profitability: | | | | | | | | |
| Core Diluted Earnings Per Share | | $ | 0.85 | | | $ | 0.79 | |
| Diluted Earnings Per Share | | $ | 1.03 | | | $ | 0.61 | |
| Weighted Average Diluted Common Shares Outstanding | | | 44,328,854 | | | | 40,574,934 | |
| Core Return on Average Assets (2) | | | 0.98 | % | | | 0.93 | % |
| Return on Average Assets (2) | | | 1.20 | % | | | 0.71 | % |
| Core Return on Average Equity (2) | | | 9.04 | % | | | 8.93 | % |
| Return on Average Equity (2) | | | 11.00 | % | | | 6.83 | % |
| Core Return on Average Tangible Common Equity (2)(5) | | | 14.38 | % | | | 14.11 | % |
| Return on Average Tangible Common Equity (2)(5) | | | 17.37 | % | | | 10.93 | % |
| Net Interest Margin (2)(3) | | | 3.62 | % | | | 3.68 | % |
| (1) | Primarily net gain on settlement of litigation and reorganization expenses for 2014 and reorganization expenses for 2013 |
| (3) | Calculated on a Fully Tax Equivalent (“FTE”) basis |
| (4) | Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows: |
| | 2014 | | | 2013 | |
| | 2nd Q | | | 1st Q | | | 4th Q | | | 3rd Q | | | 2nd Q | |
| Average stockholders' equity | | $ | 844,707 | | | $ | 828,588 | | | $ | 806,791 | | | $ | 794,273 | | | $ | 806,200 | |
| Less: average goodwill and other intangibles | | | 287,366 | | | | 290,019 | | | | 291,659 | | | | 292,271 | | | | 292,775 | |
| Average tangible common equity | | $ | 557,341 | | | $ | 538,569 | | | $ | 515,132 | | | $ | 502,002 | | | $ | 513,425 | |
| (5) | Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows: |
| | 6 Months ended June 30, | |
| | 2014 | | | 2013 | |
| Average stockholders' equity | | $ | 836,692 | | | $ | 724,898 | |
| Less: average goodwill and other intangibles | | | 288,685 | | | | 247,031 | |
| Average tangible common equity | | $ | 548,007 | | | $ | 477,867 | |
| (6) | Primarily net gain on settlement of litigation and reorganization expenses for 2014. |
NBT Bancorp Inc. and Subsidiaries
| SELECTED FINANCIAL DATA |
| (unaudited, dollars in thousands except per share data) |
| | 2014 | | | 2013 | |
| | 2nd Q | | | 1st Q | | | 4th Q | | | 3rd Q | | | 2nd Q | |
| Balance Sheet Data: | | | | | | | | | | | | | | | |
| Securities Available for Sale | | $ | 1,378,799 | | | $ | 1,377,585 | | | $ | 1,364,881 | | | $ | 1,385,734 | | | $ | 1,390,403 | |
| Securities Held to Maturity | | | 125,965 | | | | 117,896 | | | | 117,283 | | | | 118,259 | | | | 122,302 | |
| Net Loans | | | 5,504,954 | | | | 5,412,591 | | | | 5,337,361 | | | | 5,297,047 | | | | 5,219,526 | |
| Total Assets | | | 7,869,512 | | | | 7,753,129 | | | | 7,652,175 | | | | 7,668,903 | | | | 7,534,518 | |
| Total Deposits | | | 6,042,588 | | | | 6,068,898 | | | | 5,890,224 | | | | 6,003,138 | | | | 5,878,176 | |
| Total Borrowings | | | 886,799 | | | | 766,753 | | | | 866,061 | | | | 783,439 | | | | 795,918 | |
| Total Liabilities | | | 7,012,371 | | | | 6,920,927 | | | | 6,835,606 | | | | 6,873,344 | | | | 6,742,943 | |
| Stockholders' Equity | | | 857,141 | | | | 832,202 | | | | 816,569 | | | | 795,559 | | | | 791,575 | |
| | | | | | | | | | | | | | | | | | | | |
| Asset Quality: | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual Loans | | $ | 51,234 | | | $ | 51,464 | | | $ | 49,965 | | | $ | 41,418 | | | $ | 40,525 | |
| 90 Days Past Due and Still Accruing | | | 2,186 | | | | 2,700 | | | | 3,737 | | | | 3,286 | | | | 2,004 | |
| Total Nonperforming Loans | | | 53,420 | | | | 54,164 | | | | 53,702 | | | | 44,704 | | | | 42,529 | |
| Other Real Estate Owned | | | 1,953 | | | | 2,564 | | | | 2,904 | | | | 3,626 | | | | 3,757 | |
| Total Nonperforming Assets | | | 55,373 | | | | 56,728 | | | | 56,606 | | | | 48,330 | | | | 46,286 | |
| Allowance for Loan Losses | | | 69,534 | | | | 69,434 | | | | 69,434 | | | | 70,184 | | | | 71,184 | |
| Allowance for Loan Losses to Total Originated Loans (1) | | | 1.44 | % | | | 1.51 | % | | | 1.55 | % | | | 1.60 | % | | | 1.68 | % |
| Allowance for Loan Losses to Total Loans | | | 1.25 | % | | | 1.27 | % | | | 1.28 | % | | | 1.31 | % | | | 1.35 | % |
| Total Nonperforming Loans to Total Loans | | | 0.96 | % | | | 0.99 | % | | | 0.99 | % | | | 0.83 | % | | | 0.80 | % |
| Total Nonperforming Assets to Total Assets | | | 0.70 | % | | | 0.73 | % | | | 0.74 | % | | | 0.63 | % | | | 0.61 | % |
| Past Due Loans to Total Loans | | | 0.57 | % | | | 0.57 | % | | | 0.77 | % | | | 0.70 | % | | | 0.71 | % |
| Allowance for Loan Losses to Total Nonperforming Loans | | | 130.16 | % | | | 128.19 | % | | | 129.29 | % | | | 157.00 | % | | | 167.38 | % |
| Net Charge-Offs to Average Loans (3) | | | 0.30 | % | | | 0.27 | % | | | 0.44 | % | | | 0.46 | % | | | 0.30 | % |
| | | | | | | | | | | | | | | | | | | | |
| Capital: | | | | | | | | | | | | | | | | | | | | |
| Equity to Assets | | | 10.89 | % | | | 10.73 | % | | | 10.67 | % | | | 10.37 | % | | | 10.51 | % |
| Book Value Per Share | | $ | 19.61 | | | $ | 19.09 | | | $ | 18.77 | | | $ | 18.38 | | | $ | 18.18 | |
| Tangible Book Value Per Share (2) | | $ | 13.06 | | | $ | 12.48 | | | $ | 12.09 | | | $ | 11.64 | | | $ | 11.46 | |
| Tier 1 Leverage Ratio | | | 9.23 | % | | | 9.05 | % | | | 8.93 | % | | | 8.79 | % | | | 8.72 | % |
| Tier 1 Capital Ratio | | | 11.95 | % | | | 11.81 | % | | | 11.74 | % | | | 11.46 | % | | | 11.20 | % |
| Total Risk-Based Capital Ratio | | | 13.20 | % | | | 13.06 | % | | | 12.99 | % | | | 12.71 | % | | | 12.45 | % |
| Common Stock Price (End of Period) | | $ | 24.02 | | | $ | 24.46 | | | $ | 25.90 | | | $ | 22.98 | | | $ | 21.17 | |
| (1) | Excludes acquired loans |
| (2) | Stockholders' equity less goodwill and intangible assets divided by common shares outstanding |
| Note: | Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences. |
NBT Bancorp Inc. and Subsidiaries
| CONSOLIDATED BALANCE SHEETS |
| (unaudited, dollars in thousands) |
| | June 30, | | | December 31, | |
| ASSETS | | 2014 | | | 2013 | |
| Cash and due from banks | | $ | 178,539 | | | $ | 157,625 | |
| Short term interest bearing accounts | | | 4,798 | | | | 1,301 | |
| Securities available for sale, at fair value | | | 1,378,799 | | | | 1,364,881 | |
Securities held to maturity (fair value of $123,376 and $113,276 at June 30, 2014 and December 31, 2013, respectively) | | | | | | | | |
| Trading securities | | | 7,355 | | | | 5,779 | |
| Federal Reserve and Federal Home Loan Bank stock | | | 49,093 | | | | 46,864 | |
| Loans | | | 5,574,488 | | | | 5,406,795 | |
| Less allowance for loan losses | | | 69,534 | | | | 69,434 | |
| Net loans | | | 5,504,954 | | | | 5,337,361 | |
| Premises and equipment, net | | | 87,972 | | | | 88,327 | |
| Goodwill | | | 263,634 | | | | 264,997 | |
| Intangible assets, net | | | 22,819 | | | | 25,557 | |
| Bank owned life insurance | | | 116,007 | | | | 114,966 | |
| Other assets | | | 129,577 | | | | 127,234 | |
| TOTAL ASSETS | | $ | 7,869,512 | | | $ | 7,652,175 | |
| | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| Deposits: | | | | | | | | |
| Demand (noninterest bearing) | | $ | 1,676,246 | | | $ | 1,645,641 | |
| Savings, NOW, and money market | | | 3,363,911 | | | | 3,223,441 | |
| Time | | | 1,002,431 | | | | 1,021,142 | |
| Total deposits | | | 6,042,588 | | | | 5,890,224 | |
| Short-term borrowings | | | 534,478 | | | | 456,042 | |
| Long-term debt | | | 251,125 | | | | 308,823 | |
| Junior subordinated debt | | | 101,196 | | | | 101,196 | |
| Other liabilities | | | 82,984 | | | | 79,321 | |
| Total liabilities | | | 7,012,371 | | | | 6,835,606 | |
| | | | | | | | |
| Total stockholders' equity | | | 857,141 | | | | 816,569 | |
| | | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 7,869,512 | | | $ | 7,652,175 | |
NBT Bancorp Inc. and Subsidiaries
| CONSOLIDATED STATEMENTS OF INCOME |
| (unaudited, dollars in thousands except per share data) |
| | Three Months Ended | | | Six Months Ended | |
| | June 30, | | | June 30, | |
| | 2014 | | | 2013 | | | 2014 | | | 2013 | |
| Interest, fee and dividend income: | | | | | | | | | | | | |
| Loans | | $ | 60,559 | | | $ | 62,031 | | | $ | 120,574 | | | $ | 115,726 | |
| Securities available for sale | | | 6,612 | | | | 6,537 | | | | 13,369 | | | | 12,283 | |
| Securities held to maturity | | | 783 | | | | 548 | | | | 1,551 | | | | 1,073 | |
| Other | | | 502 | | | | 488 | | | | 1,039 | | | | 891 | |
| Total interest, fee and dividend income | | | 68,456 | | | | 69,604 | | | | 136,533 | | | | 129,973 | |
| Interest expense: | | | | | | | | | | | | | | | | |
| Deposits | | | 3,000 | | | | 4,296 | | | | 6,284 | | | | 8,446 | |
| Short-term borrowings | | | 209 | | | | 67 | | | | 440 | | | | 109 | |
| Long-term debt | | | 2,135 | | | | 3,026 | | | | 4,642 | | | | 6,635 | |
| Junior subordinated debt | | | 538 | | | | 560 | | | | 1,076 | | | | 988 | |
| Total interest expense | | | 5,882 | | | | 7,949 | | | | 12,442 | | | | 16,178 | |
| Net interest income | | | 62,574 | | | | 61,655 | | | | 124,091 | | | | 113,795 | |
| Provision for loan losses | | | 4,166 | | | | 6,402 | | | | 7,762 | | | | 12,060 | |
| Net interest income after provision for loan losses | | | 58,408 | | | | 55,253 | | | | 116,329 | | | | 101,735 | |
| Noninterest income: | | | | | | | | | | | | | | | | |
| Insurance and other financial services revenue | | | 5,594 | | | | 5,755 | | | | 12,331 | | | | 12,648 | |
| Service charges on deposit accounts | | | 4,397 | | | | 4,933 | | | | 8,766 | | | | 9,256 | |
| ATM and debit card fees | | | 4,357 | | | | 4,044 | | | | 8,429 | | | | 7,286 | |
| Retirement plan administration fees | | | 2,977 | | | | 2,957 | | | | 5,895 | | | | 5,639 | |
| Trust | | | 4,953 | | | | 4,699 | | | | 9,399 | | | | 7,612 | |
| Bank owned life insurance income | | | 978 | | | | 886 | | | | 2,360 | | | | 1,735 | |
| Net securities gains (losses) | | | 14 | | | | (61 | ) | | | 21 | | | | 1,084 | |
| Gain on the sale of Springstone investment | | | 19,401 | | | | - | | | | 19,401 | | | | - | |
| Other | | | 3,356 | | | | 2,324 | | | | 5,702 | | | | 5,506 | |
| Total noninterest income | | | 46,027 | | | | 25,537 | | | | 72,304 | | | | 50,766 | |
| Noninterest expense: | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 31,142 | | | | 29,160 | | | | 60,676 | | | | 56,207 | |
| Occupancy | | | 5,435 | | | | 5,219 | | | | 11,661 | | | | 10,196 | |
| Data processing and communications | | | 4,015 | | | | 3,854 | | | | 8,016 | | | | 7,309 | |
| Professional fees and outside services | | | 3,752 | | | | 3,237 | | | | 7,167 | | | | 6,138 | |
| Equipment | | | 3,132 | | | | 2,910 | | | | 6,248 | | | | 5,492 | |
| Office supplies and postage | | | 1,803 | | | | 1,656 | | | | 3,488 | | | | 3,246 | |
| FDIC expenses | | | 1,229 | | | | 1,273 | | | | 2,507 | | | | 2,403 | |
| Advertising | | | 726 | | | | 1,000 | | | | 1,465 | | | | 1,723 | |
| Amortization of intangible assets | | | 1,236 | | | | 1,351 | | | | 2,546 | | | | 2,202 | |
| Loan collection and other real estate owned | | | 801 | | | | 421 | | | | 1,841 | | | | 1,139 | |
| Merger related | | | - | | | | 1,269 | | | | - | | | | 11,950 | |
| Prepayment penalties on long term debt | | | 4,554 | | | | - | | | | 4,554 | | | | - | |
| Other operating | | | 4,911 | | | | 5,100 | | | | 10,084 | | | | 9,150 | |
| Total noninterest expense | | | 62,736 | | | | 56,450 | | | | 120,253 | | | | 117,155 | |
| Income before income taxes | | | 41,699 | | | | 24,340 | | | | 68,380 | | | | 35,346 | |
| Income taxes | | | 14,059 | | | | 7,424 | | | | 22,731 | | | | 10,781 | |
| Net income | | $ | 27,640 | | | $ | 16,916 | | | $ | 45,649 | | | $ | 24,565 | |
| Earnings Per Share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.63 | | | $ | 0.39 | | | $ | 1.04 | | | $ | 0.61 | |
| Diluted | | $ | 0.62 | | | $ | 0.38 | | | $ | 1.03 | | | $ | 0.61 | |
NBT Bancorp Inc. and Subsidiaries
| QUARTERLY CONSOLIDATED STATEMENTS OF INCOME |
(unaudited, dollars in thousands except per share data) |
| | 2014 | | | 2013 | |
| | 2nd Q | | | 1st Q | | | 4th Q | | | 3rd Q | | | 2nd Q | |
| Interest, fee and dividend income: | | | | | | | | | | | | | | | |
| Loans | | $ | 60,559 | | | $ | 60,015 | | | $ | 61,173 | | | $ | 61,773 | | | $ | 62,031 | |
| Securities available for sale | | | 6,612 | | | | 6,757 | | | | 6,707 | | | | 6,520 | | | | 6,537 | |
| Securities held to maturity | | | 783 | | | | 768 | | | | 783 | | | | 804 | | | | 548 | |
| Other | | | 502 | | | | 537 | | | | 518 | | | | 472 | | | | 488 | |
| Total interest, fee and dividend income | | | 68,456 | | | | 68,077 | | | | 69,181 | | | | 69,569 | | | | 69,604 | |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 3,000 | | | | 3,284 | | | | 3,845 | | | | 3,999 | | | | 4,296 | |
| Short-term borrowings | | | 209 | | | | 231 | | | | 174 | | | | 232 | | | | 67 | |
| Long-term debt | | | 2,135 | | | | 2,507 | | | | 2,559 | | | | 2,561 | | | | 3,026 | |
| Junior subordinated debt | | | 538 | | | | 538 | | | | 545 | | | | 551 | | | | 560 | |
| Total interest expense | | | 5,882 | | | | 6,560 | | | | 7,123 | | | | 7,343 | | | | 7,949 | |
| Net interest income | | | 62,574 | | | | 61,517 | | | | 62,058 | | | | 62,226 | | | | 61,655 | |
| Provision for loan losses | | | 4,166 | | | | 3,596 | | | | 5,166 | | | | 5,198 | | | | 6,402 | |
| Net interest income after provision for loan losses | | | 58,408 | | | | 57,921 | | | | 56,892 | | | | 57,028 | | | | 55,253 | |
| Noninterest income: | | | | | | | | | | | | | | | | | | | | |
| Insurance and other financial services revenue | | | 5,594 | | | | 6,737 | | | | 5,761 | | | | 6,038 | | | | 5,755 | |
| Service charges on deposit accounts | | | 4,397 | | | | 4,369 | | | | 4,996 | | | | 5,055 | | | | 4,933 | |
| ATM and debit card fees | | | 4,357 | | | | 4,072 | | | | 3,996 | | | | 4,276 | | | | 4,044 | |
| Retirement plan administration fees | | | 2,977 | | | | 2,918 | | | | 2,796 | | | | 3,062 | | | | 2,957 | |
| Trust | | | 4,953 | | | | 4,446 | | | | 4,725 | | | | 4,345 | | | | 4,699 | |
| Bank owned life insurance income | | | 978 | | | | 1,382 | | | | 1,145 | | | | 913 | | | | 886 | |
| Net securities gains (losses) | | | 14 | | | | 7 | | | | 13 | | | | 329 | | | | (61 | ) |
| Gain on the sale of Springstone investment | | | 19,401 | | | | - | | | | - | | | | - | | | | - | |
| Other | | | 3,356 | | | | 2,346 | | | | 1,870 | | | | 3,129 | | | | 2,324 | |
| Total noninterest income | | | 46,027 | | | | 26,277 | | | | 25,302 | | | | 27,147 | | | | 25,537 | |
| Noninterest expense: | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 31,142 | | | | 29,534 | | | | 28,106 | | | | 29,267 | | | | 29,160 | |
| Occupancy | | | 5,435 | | | | 6,226 | | | | 5,262 | | | | 5,262 | | | | 5,219 | |
| Data processing and communications | | | 4,015 | | | | 4,001 | | | | 3,985 | | | | 4,059 | | | | 3,854 | |
| Professional fees and outside services | | | 3,752 | | | | 3,415 | | | | 3,969 | | | | 3,202 | | | | 3,237 | |
| Equipment | | | 3,132 | | | | 3,116 | | | | 3,013 | | | | 2,988 | | | | 2,910 | |
| Office supplies and postage | | | 1,803 | | | | 1,685 | | | | 1,677 | | | | 1,640 | | | | 1,656 | |
| FDIC expenses | | | 1,229 | | | | 1,278 | | | | 1,272 | | | | 1,285 | | | | 1,273 | |
| Advertising | | | 726 | | | | 739 | | | | 759 | | | | 722 | | | | 1,000 | |
| Amortization of intangible assets | | | 1,236 | | | | 1,310 | | | | 1,324 | | | | 1,346 | | | | 1,351 | |
| Loan collection and other real estate owned | | | 801 | | | | 1,040 | | | | 594 | | | | 886 | | | | 421 | |
| Merger | | | - | | | | - | | | | 88 | | | | 326 | | | | 1,269 | |
| Prepayment penalties on long term debt | | | 4,554 | | | | - | | | | - | | | | - | | | | - | |
| Other operating | | | 4,911 | | | | 5,173 | | | | 5,437 | | | | 5,303 | | | | 5,100 | |
| Total noninterest expense | | | 62,736 | | | | 57,517 | | | | 55,486 | | | | 56,286 | | | | 56,450 | |
| Income before income taxes | | | 41,699 | | | | 26,681 | | | | 26,708 | | | | 27,889 | | | | 24,340 | |
| Income taxes | | | 14,059 | | | | 8,672 | | | | 8,783 | | | | 8,632 | | | | 7,424 | |
| Net income | | $ | 27,640 | | | $ | 18,009 | | | $ | 17,925 | | | $ | 19,257 | | | $ | 16,916 | |
| Earnings per share: | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.63 | | | $ | 0.41 | | | $ | 0.41 | | | $ | 0.44 | | | $ | 0.39 | |
| Diluted | | $ | 0.62 | | | $ | 0.41 | | | $ | 0.41 | | | $ | 0.44 | | | $ | 0.38 | |
NBT Bancorp Inc. and Subsidiaries
| AVERAGE QUARTERLY BALANCE SHEETS |
| (unaudited, dollars in thousands) |
| | | | Average Balance | | | | Yield / Rates | | | | Average Balance | | | Yield / Rates | | | | Average Balance | | | Yield / Rates | | | | Average Balance | | | Yield / Rates | | | Average Balance | | | Yield / Rates | |
| | | | Q2 - 2014 | | | | Q1 - 2014 | | | | Q4 - 2013 | | | | Q3 - 2013 | | | Q2 - 2013 | |
| ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-term interest bearing accounts | | $ | 3,915 | | | | 0.76 | % | | $ | 2,733 | | | | 1.02 | % | | $ | 4,798 | | | | 0.81 | % | | $ | 1,955 | | | | 1.73 | % | | $ | 41,313 | | | | 0.57 | % |
| Securities available for sale (1)(2) | | | 1,376,314 | | | | 2.05 | % | | | 1,381,744 | | | | 2.11 | % | | | 1,383,273 | | | | 2.05 | % | | | 1,387,714 | | | | 2.00 | % | | | 1,428,864 | | | | 1.97 | % |
| Securities held to maturity (1) | | | 121,042 | | | | 3.43 | % | | | 116,613 | | | | 3.52 | % | | | 117,574 | | | | 3.47 | % | | | 118,781 | | | | 3.54 | % | | | 62,463 | | | | 5.23 | % |
| Investment in FRB and FHLB Banks | | | 42,965 | | | | 4.63 | % | | | 43,596 | | | | 4.94 | % | | | 41,115 | | | | 4.92 | % | | | 43,895 | | | | 4.20 | % | | | 35,497 | | | | 4.85 | % |
| Loans (3) | | | 5,517,315 | | | | 4.42 | % | | | 5,425,938 | | | | 4.50 | % | | | 5,369,474 | | | | 4.54 | % | | | 5,309,446 | | | | 4.63 | % | | | 5,243,534 | | | | 4.76 | % |
| Total interest earning assets | | $ | 7,061,551 | | | | 3.94 | % | | $ | 6,970,624 | | | | 4.01 | % | | $ | 6,916,234 | | | | 4.02 | % | | $ | 6,861,791 | | | | 4.08 | % | | $ | 6,811,671 | | | | 4.16 | % |
| Other assets | | | 680,059 | | | | | | | | 679,246 | | | | | | | | 680,435 | | | | | | | | 671,482 | | | | | | | | 705,869 | | | | | |
| Total assets | | $ | 7,741,610 | | | | | | | $ | 7,649,870 | | | | | | | $ | 7,596,669 | | | | | | | $ | 7,533,273 | | | | | | | $ | 7,517,540 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Money market deposit accounts | | $ | 1,441,284 | | | | 0.15 | % | | $ | 1,411,444 | | | | 0.15 | % | | $ | 1,419,458 | | | | 0.15 | % | | $ | 1,360,067 | | | | 0.15 | % | | $ | 1,402,429 | | | | 0.15 | % |
| NOW deposit accounts | | | 960,698 | | | | 0.06 | % | | | 932,528 | | | | 0.05 | % | | | 925,544 | | | | 0.13 | % | | | 877,387 | | | | 0.13 | % | | | 927,037 | | | | 0.19 | % |
| Savings deposits | | | 1,040,528 | | | | 0.07 | % | | | 1,000,029 | | | | 0.07 | % | | | 973,650 | | | | 0.08 | % | | | 984,093 | | | | 0.09 | % | | | 983,413 | | | | 0.09 | % |
| Time deposits | | | 971,595 | | | | 0.88 | % | | | 999,579 | | | | 0.99 | % | | | 1,042,710 | | | | 1.07 | % | | | 1,081,549 | | | | 1.09 | % | | | 1,136,511 | | | | 1.10 | % |
| Total interest bearing deposits | | $ | 4,414,105 | | | | 0.27 | % | | $ | 4,343,580 | | | | 0.31 | % | | $ | 4,361,362 | | | | 0.35 | % | | $ | 4,303,096 | | | | 0.37 | % | | $ | 4,449,390 | | | | 0.39 | % |
| Short-term borrowings | | | 383,480 | | | | 0.22 | % | | | 398,951 | | | | 0.24 | % | | | 338,476 | | | | 0.20 | % | | | 383,238 | | | | 0.24 | % | | | 229,906 | | | | 0.12 | % |
| Junior subordinated debentures | | | 101,196 | | | | 2.13 | % | | | 101,196 | | | | 2.16 | % | | | 101,196 | | | | 2.14 | % | | | 101,196 | | | | 2.16 | % | | | 101,196 | | | | 2.22 | % |
| Long-term debt | | | 290,791 | | | | 2.95 | % | | | 308,760 | | | | 3.29 | % | | | 308,969 | | | | 3.29 | % | | | 309,069 | | | | 3.29 | % | | | 355,702 | | | | 3.41 | % |
| Total interest bearing liabilities | | $ | 5,189,572 | | | | 0.45 | % | | $ | 5,152,487 | | | | 0.52 | % | | $ | 5,110,003 | | | | 0.55 | % | | $ | 5,096,599 | | | | 0.57 | % | | $ | 5,136,194 | | | | 0.62 | % |
| Demand deposits | | | 1,620,488 | | | | | | | | 1,589,865 | | | | | | | | 1,595,145 | | | | | | | | 1,559,506 | | | | | | | | 1,496,486 | | | | | |
| Other liabilities | | | 86,843 | | | | | | | | 78,930 | | | | | | | | 84,730 | | | | | | | | 82,896 | | | | | | | | 78,660 | | | | | |
| Stockholders' equity | | | 844,707 | | | | | | | | 828,588 | | | | | | | | 806,791 | | | | | | | | 794,272 | | | | | | | | 806,200 | | | | | |
| Total liabilities and stockholders' equity | | $ | 7,741,610 | | | | | | | $ | 7,649,870 | | | | | | | $ | 7,596,669 | | | | | | | $ | 7,533,273 | | | | | | | $ | 7,517,540 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest rate spread | | | | | | | 3.49 | % | | | | | | | 3.49 | % | | | | | | | 3.47 | % | | | | | | | 3.51 | % | | | | | | | 3.54 | % |
| Net interest margin | | | | | | | 3.60 | % | | | | | | | 3.63 | % | | | | | | | 3.61 | % | | | | | | | 3.65 | % | | | | | | | 3.69 | % |
| (1) | Securities are shown at average amortized cost |
| (2) | Excluding unrealized gains or losses |
| (3) | For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding |
NBT Bancorp Inc. and Subsidiaries
| AVERAGE YEAR-TO-DATE BALANCE SHEETS |
| (unaudited, dollars in thousands) |
| | Average | | | | | | Yield/ | | | Average | | | | | | Yield/ | |
| | Balance | | | Interest | | | Rates | | | Balance | | | Interest | | | Rates | |
| Six Months ended June 30, | | 2014 | | | 2013 | |
| ASSETS: | | | | | | | | | | | | | | | | | | |
| Short-term interest bearing accounts | | $ | 3,328 | | | $ | 14 | | | | 0.87 | % | | $ | 58,118 | | | $ | 98 | | | | 0.34 | % |
| Securities available for sale (1)(2) | | | 1,379,014 | | | | 14,212 | | | | 2.08 | % | | | 1,313,691 | | | | 13,212 | | | | 2.03 | % |
| Securities held to maturity (1) | | | 118,840 | | | | 2,048 | | | | 3.48 | % | | | 57,710 | | | | 1,605 | | | | 5.61 | % |
| Investment in FRB and FHLB Banks | | | 43,279 | | | | 1,028 | | | | 4.79 | % | | | 33,416 | | | | 796 | | | | 4.80 | % |
| Loans and leases (3) | | | 5,471,879 | | | | 121,002 | | | | 4.46 | % | | | 4,869,896 | | | | 116,171 | | | | 4.81 | % |
| Total interest earning assets | | $ | 7,016,340 | | | $ | 138,304 | | | | 3.98 | % | | $ | 6,332,831 | | | $ | 131,882 | | | | 4.20 | % |
| Other assets | | | 679,654 | | | | | | | | | | | | 360,532 | | | | | | | | | |
| Total assets | | $ | 7,695,994 | | | | | | | | | | | $ | 6,693,363 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY: | | | | | | | | | | | | | | | | | | | | | | | | |
| Money market deposit accounts | | $ | 1,426,446 | | | | 1,066 | | | | 0.15 | % | | $ | 1,297,077 | | | $ | 934 | | | | 0.15 | % |
| NOW deposit accounts | | | 946,691 | | | | 256 | | | | 0.05 | % | | | 863,481 | | | | 889 | | | | 0.21 | % |
| Savings deposits | | | 1,020,391 | | | | 369 | | | | 0.07 | % | | | 877,574 | | | | 354 | | | | 0.08 | % |
| Time deposits | | | 985,510 | | | | 4,593 | | | | 0.94 | % | | | 1,076,445 | | | | 6,269 | | | | 1.17 | % |
| Total interest bearing deposits | | $ | 4,379,038 | | | $ | 6,284 | | | | 0.29 | % | | $ | 4,114,577 | | | $ | 8,446 | | | | 0.41 | % |
| Short-term borrowings | | | 391,173 | | | | 440 | | | | 0.23 | % | | | 199,513 | | | | 109 | | | | 0.11 | % |
| Trust preferred debentures | | | 101,196 | | | | 1,076 | | | | 2.14 | % | | | 91,798 | | | | 988 | | | | 2.17 | % |
| Long-term debt | | | 299,726 | | | | 4,642 | | | | 3.12 | % | | | 368,867 | | | | 6,635 | | | | 3.63 | % |
| Total interest bearing liabilities | | $ | 5,171,133 | | | $ | 12,442 | | | | 0.49 | % | | $ | 4,774,755 | | | $ | 16,178 | | | | 0.68 | % |
| Demand deposits | | | 1,605,261 | | | | | | | | | | | | 1,390,700 | | | | | | | | | |
| Other liabilities | | | 82,908 | | | | | | | | | | | | 73,010 | | | | | | | | | |
| Stockholders' equity | | | 836,692 | | | | | | | | | | | | 724,898 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 7,695,994 | | | | | | | | | | | $ | 6,963,363 | | | | | | | | | |
| Net interest income (FTE) | | | | | | | 125,862 | | | | | | | | | | | | 115,704 | | | | | |
| Interest rate spread | | | | | | | | | | | 3.49 | % | | | | | | | | | | | 3.52 | % |
| Net interest margin | | | | | | | | | | | 3.62 | % | | | | | | | | | | | 3.68 | % |
| Taxable equivalent adjustment | | | | | | | 1,771 | | | | | | | | | | | | 1,909 | | | | | |
| Net interest income | | | | | | $ | 124,091 | | | | | | | | | | | $ | 113,795 | | | | | |
| (1) | Securities are shown at average amortized cost |
| (2) | Excluding unrealized gains or losses |
| (3) | For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding |
NBT Bancorp Inc. and Subsidiaries
CONSOLIDATED LOAN BALANCES |
| (unaudited, dollars in thousands) |
| | 2014 | | | 2013 | |
| | 2nd Q | | | 1st Q | | | 4th Q | | | 3rd Q | | | 2nd Q | |
| Residential real estate mortgages | | $ | 1,073,207 | | | $ | 1,056,793 | | | $ | 1,041,637 | | | $ | 1,028,158 | | | $ | 1,001,642 | |
| Commercial | | | 895,128 | | | | 878,152 | | | | 859,026 | | | | 849,095 | | | | 867,513 | |
| Commercial real estate mortgages | | | 1,378,065 | | | | 1,347,940 | | | | 1,328,313 | | | | 1,302,978 | | | | 1,241,271 | |
| Real estate construction and development | | | 94,019 | | | | 99,295 | | | | 93,247 | | | | 116,662 | | | | 152,548 | |
| Agricultural and agricultural real estate mortgages | | | 109,035 | | | | 110,815 | | | | 112,035 | | | | 110,113 | | | | 107,565 | |
| Consumer | | | 1,435,643 | | | | 1,387,221 | | | | 1,352,638 | | | | 1,327,203 | | | | 1,284,888 | |
| Home equity | | | 589,391 | | | | 601,809 | | | | 619,899 | | | | 633,022 | | | | 635,283 | |
| Total loans | | $ | 5,574,488 | | | $ | 5,482,025 | | | $ | 5,406,795 | | | $ | 5,367,231 | | | $ | 5,290,710 | |
