SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 1, 2000
----------------------
NBT Bancorp Inc.
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(Exact Name of Registrant as Specified in Charter)
Delaware 0-14703 16-1268674
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification Number)
52 South Broad Street, Norwich, New York 13815
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(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code 607/337-2265
---------------------
N/A
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(Former Name or Former Address, if Changed Since Last Report)
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) The (i) consolidated audited balance sheets of Pioneer American as
of December 31, 1999 and 1998 and (ii) consolidated statements of income and
cash flows of Pioneer American for the fiscal years ended December 31, 1999,
1998 and 1997 have been filed with the SEC as part of Pioneer American's Annual
Report on Form 10-K, filed March 13, 2000 (File No. 0-14506), and are
incorporated by reference. The (iii) unaudited consolidated balance sheet of
Pioneer American as of March 31, 2000 and (iv) unaudited consolidated statements
of income and cash flows of Pioneer American for the three months ended March
31, 2000 and 1999 have been filed with the SEC as part of Pioneer American's
Quarterly Report on Form 10-Q, filed May 10, 2000 (File No. 0-14506), and are
incorporated herein by reference.
The (i) consolidated audited balance sheets of BSB Bancorp, Inc. as of
December 31, 1999 and 1998 and (ii) consolidated statements of income and cash
flows of BSB Bancorp for the fiscal years ended December 31, 1999, 1998 and 1997
have been filed with the SEC as part of BSB Bancorp's Annual Report on Form
10-K, filed March 30, 2000 (File No. 0-17177), and are incorporated by
reference. The (iii) unaudited consolidated balance sheet of BSB Bancorp as of
March 31, 2000 and (iv) unaudited consolidated statements of income and cash
flows of BSB Bancorp for the three months ended March 31, 2000 and 1999 have
been filed with the SEC as part of BSB Bancorp's Quarterly Report on Form 10-Q,
filed May 15, 2000 (File No. 0-17177), and are incorporated herein by reference.
(b) Pro Forma Financial Information. The (i) pro forma combined
condensed statements of income of NBT, Pioneer American and BSB Bancorp for the
three months ended March 31, 2000 and 1999, and the years ended December 31,
1999, 1998 and 1997; and (ii) pro forma combined condensed balance sheet of NBT,
Pioneer American and BSB Bancorp as of March 31, 2000.
(c) Exhibits.
The following exhibits are filed with this Current Report or
incorporated by reference into this Current Report on Form 8-K:
Exhibit
Number Description
- ------ -----------
23.1 Consent of KPMG LLP
23.2 Consent of PricewaterhouseCoopers LLP
99.1 Consolidated audited balance sheets of Pioneer American as of
December 31, 1999 and 1998 and consolidated statements of
income and cash flows of Pioneer American for the fiscal years
ended December 31, 1999, 1998 and 1997 (incorporated by
reference to Pioneer American's Annual Report on Form 10-K,
filed March 13, 2000, File No. 0-14506).
99.2 Unaudited consolidated balance sheet of Pioneer American as of
March 31, 2000 and unaudited consolidated statements of income
and cash flows of Pioneer American for the three months ended
March 31, 2000 and 1999 (incorporated by reference to Pioneer
American's Quarterly Report on Form 10-Q, filed May 10, 2000,
File No. 0- 14506).
99.3 Consolidated audited balance sheets of BSB Bancorp as of
December 31, 1999 and 1998 and consolidated statements of
income and cash flows of BSB Bancorp for the fiscal years
ended December 31, 1999, 1998 and 1997 (incorporated by
reference to BSB Bancorp's Annual Report on Form 10-K, filed
March 30, 2000, File No. 0- 17177).
99.4 Unaudited consolidated balance sheet of BSB Bancorp as of
March 31, 2000 and unaudited consolidated statements of income
and cash flows of BSB Bancorp for the three months ended March
31, 2000 and 1999 (incorporated by reference to BSB Bancorp's
Quarterly Report on Form 10-Q, filed May 15, 2000, File No.
0-17177).
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
The following unaudited pro forma condensed combined balance sheet presents the
financial position of NBT Bancorp Inc. (NBT), Pioneer American Holding Company
Corp (Pioneer American), and BSB Bancorp, Inc. (BSB) as of March 31, 2000
assuming that both mergers had occurred as of March 31, 2000 after giving effect
to certain pro forma adjustments described in the accompanying notes. The
following unaudited pro forma condensed combined statements of income for the
three months ended March 31, 2000 and 1999, and the years ended December 31,
1999, 1998, and 1997 present the combined historical results of operations of
NBT, Pioneer American, and BSB as if the mergers had been completed as of the
first day of the period presented. The historical financial information of NBT
has been restated to include the effects of the merger with Lake Ariel Bancop,
Inc. (Lake Ariel), which was completed on February 17, 2000 and has been
accounted for as a pooling of interests. Pro forma earnings per share are based
on the exchange ratios of 1.805 and 2.0 for the Pioneer American and BSB
mergers, respectively. The fiscal years of NBT, Pioneer American, and BSB end
December 31. The unaudited pro forma condensed combined balance sheet reflects
estimated non-recurring charges that may be incurred in connection with the
mergers.
The unaudited pro forma condensed combined financial statements were prepared
giving effect to the mergers on the pooling of interests accounting method.
Under this method of accounting, the recorded assets, liabilities, stockholders'
equity, income and expense of NBT, Pioneer American, and BSB are combined and
reflected at their historical amounts, except as noted in the accompanying
notes.
The combined company expects to achieve certain merger benefits in the form of
operating expense reductions and revenue enhancements. The unaudited pro forma
condensed combined statements of income do not reflect potential operating
expense reductions or revenue enhancements that are expected to result from the
mergers, and therefore may not be indicative of the results of future
operations. No assurance can be given with respect to the ultimate level of
operating expense reductions or revenue enhancements.
The unaudited pro forma condensed combined financial statements should be read
in conjunction with, and are qualified in their entirety by, the historical
consolidated financial statements and accompanying notes of NBT, Pioneer
American, and BSB and the supplemental consolidated financial statements and
accompanying notes of NBT, which have been restated to include the effects of
the Lake Ariel merger. These supplemental financial statements were included in
Current Report on Form 8-K, dated March 31, 2000 and filed with the SEC. The
following historical financial information of Pioneer American and BSB has been
derived from the respective companies' interim consolidated financial statements
as of March 31, 2000 and for the three months ended March 31, 2000 and 1999
which are included in the respective companies Form 10-Q for the three months
ended March 31, 2000 and are incorporated by reference herein, and their
respective consolidated financial statements and accompanying notes as of
December 31, 1999 and 1998 and for each of the years in the three year period
ended December 31, 1999, which were included in the respective companies' Form
10-K for the year ended December 31, 1999 and incorporated by reference herein.
The unaudited pro forma condensed combined financial statements are presented
for informational purposes only. These statements are not necessarily indicative
of the combined financial position and results of operations that would have
occurred if the mergers had been completed on March 31, 2000 or at the beginning
of the respective periods presented or that may be attained in the future.
Unaudited Pro Forma Condensed Combined Balance Sheet
March 31, 2000
(in thousands)
Pioneer American
NBT Holding Pro Forma
Bancorp Inc. Company Corp. Adjustments
------------ ------------- -----------
ASSETS
Cash and cash equivalents $ 60,823 $ 13,216 --
Securities available for sale, at fair value 497,528 105,239 --
Securities held to maturity (fair value-NBT Bancorp Inc.
$75,808, BSB Bancorp, Inc. $13,208, and Pioneer
American Holding Company Corp. $34,560) 78,772 35,746 --
Loans 1,295,651 245,147
Less: Allowance for loan losses 17,543 3,145 --
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Net loans 1,278,108 242,002 --
Premises and equipment, net 40,292 5,910 --
Other assets 73,583 13,615 1,300
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TOTAL ASSETS $ 2,029,106 $ 415,728 $ 1,300
===============================================================================================================================
NBT
Pioneer American
Combined BSB Pro Forma Combined
Pro Forma Bancorp, Inc. Adjustments Pro Forma
--------- ------------- ----------- ---------
ASSETS
Cash and cash equivalents $ 74,039 16 $ 47,718 16 $ -- $ 121,757
Securities available for sale, at fair value 602,767 382,703 -- 985,470
Securities held to maturity (fair value-NBT Bancorp Inc.
$75,808, BSB Bancorp, Inc. $13,208, and Pioneer
American Holding Company Corp. $34,560) 114,518 13,079 -- 127,597
Loans 1,540,798 1,745,959 3,286,757
Less: Allowance for loan losses 20,688 31,705 -- 52,393
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Net loans 1,520,110 1,714,254 -- 3,234,364
Premises and equipment, net 46,202 15,541 -- 61,743
Other assets 88,498 57,569 4,500 150,567
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TOTAL ASSETS $ 2,446,134 $ 2,230,864 $ 4,500 $ 4,681,498
===================================================================================================================================
Pioneer American
NBT Holding Pro Forma
Bancorp Inc. Company Corp. Adjustments
------------ ------------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $ 210,579 $ 45,842 $ --
Savings,NOW, and money market 490,328 110,880 --
Time 822,842 143,152 --
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Total deposits 1,523,749 299,874 --
Borrowings 327,238 79,489 --
Other liabilities 15,587 4,272 5,100
Mandatorily redeemable preferred securities of subsidiary -- --
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Total liabilities 1,866,574 383,635 5,100
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NBT
Pioneer American
Combined BSB Pro Forma Combined
Pro Forma Bancorp, Inc. Adjustments Pro Forma
--------- ------------- ----------- ---------
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $ 256,421 $ 139,639 $ -- 396,060
Savings,NOW, and money market 601,208 653,091 -- 1,254,299
Time 965,994 1,106,548 -- 2,072,542
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Total deposits 1,823,623 1,899,278 -- 3,722,901
Borrowings 406,727 135,982 -- 542,709
Other liabilities 24,959 8,588 16,500 50,047
Mandatorily redeemable preferred securities of subsidiary -- 30,000 -- 30,000
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Total liabilities 2,255,309 2,073,848 16,500 4,345,657
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Pioneer American
NBT Holding Pro Forma
Bancorp Inc. Company Corp. Adjustments
------------ ------------- -----------
Stockholders' equity:
Preferred stock -- -- --
Common stock 186 2,935 (2,883)
Additional paid-in-capital 167,047 11,962 1,153
Retained earnings 24,225 22,355 (3,800)
Accumulated other comprehensive income (loss) (17,615) (3,429) --
Common stock in treasury, at cost (11,311) (1,730) 1,730
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Total stockholders' equity 162,532 32,093 (3,800)
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,029,106 $ 415,728 $ 1,300
====================================================================================================================================
NBT
Pioneer American
Combined BSB Pro Forma Combined
Pro Forma Bancorp, Inc. Adjustments Pro Forma
--------- ------------- ----------- ---------
Stockholders' equity:
Preferred stock -- -- -- --
Common stock 238 114 91 443
Additional paid-in-capital 180,162 37,590 (13,548) 204,204
Retained earnings 42,780 143,481 (12,000) 174,261
Accumulated other comprehensive income (loss) (21,044) (10,712) -- (31,756)
Common stock in treasury, at cost (11,311) (13,457) 13,457 (11,311)
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Total stockholders' equity 190,825 157,016 (12,000) 335,841
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,446,134 $ 2,230,864 $ 4,500 $ 4,681,498
====================================================================================================================================
See accompanying notes to unaudited pro forma condensed combined financial statements
Unaudited Pro Forma Condensed Combined Statement of Income
For the Three Months Ended March 31, 2000
Pioneer
American NBT
Holding Pioneer American
NBT Company Pro Forma Combined
Bancorp Inc. Corp. Adjustments Pro Forma
------------ ----- ----------- ---------
Interest and fee income:
Loan $27,189 $5,048 $ -- $32,237
Securities 9,865 2,358 -- 12,223
Other 402 4 -- 406
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Total interest and fee income: 37,456 7,410 -- 44,866
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Interest expense:
Deposits 13,446 2,637 -- 16,083
Borrowings 4,400 1,135 -- 5,535
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Total interest expense 17,846 3,772 -- 21,618
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Net interest income 19,610 3,638 -- 23,248
Provision for loan losses 1,334 120 -- 1,454
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Net interest income after provision for loan losses 18,276 3,518 -- 21,794
--------------------------------------------------------------------------------------------------------------------------------
Noninterest income:
Trust 860 -- -- 860
Service charges on deposit accounts 1,620 526 -- 2,146
Net security gains (losses) -- -- -- --
Other 1,135 195 -- 1,330
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Total noninterest income 3,615 721 -- 4,336
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Noninterest expense:
Salaries and employee benefits 7,081 1,322 -- 8,403
Office supplies and postage 592 119 -- 711
Occupancy 1,232 269 -- 1,501
Equipment 1,137 225 -- 1,362
Professional fees and outside services 756 240 -- 996
Data processing and communications 1,132 96 -- 1,228
Amortization of intangible assets 312 10 -- 322
Merger and acquisition charges 1,122 -- -- 1,122
Other operating 1,619 494 -- 2,113
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Total noninterest expense 14,983 2,775 -- 17,758
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Income before income taxes 6,908 1,464 -- 8,372
Income taxes 2,667 425 -- 3,092
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Net Income $ 4,241 $1,039 $ -- $ 5,280
================================================================================================================================
Weighted Average Shares Outstanding
Basic 18,028 2,864 23,198
Diluted 18,134 2,887 23,345
Earnings Per Share
Basic 0.24 0.36 0.23
Diluted 0.23 0.36 0.23
NBT
BSB
Pioneer
BSB Pro Forma Combined
Bancorp, Inc. Adjustments Pro Forma
------------- ----------- ---------
Interest and fee income:
Loan $39,593 $ -- $71,830
Securities 6,674 -- 18,897
Other 13 -- 419
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Total interest and fee income: 46,280 -- 91,146
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Interest expense:
Deposits 21,319 -- 37,402
Borrowings 2,582 -- 8,117
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Total interest expense 23,901 -- 45,519
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Net interest income 22,379 -- 45,627
Provision for loan losses 4,608 -- 6,062
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Net interest income after provision for loan losses 17,771 -- 39,565
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Noninterest income:
Trust 331 -- 1,191
Service charges on deposit accounts 1,213 -- 3,359
Net security gains (losses) -- -- --
Other 1,817 -- 3,147
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Total noninterest income 3,361 -- 7,697
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Noninterest expense:
Salaries and employee benefits 5,899 -- 14,302
Office supplies and postage 393 -- 1,104
Occupancy 727 -- 2,228
Equipment 442 -- 1,804
Professional fees and outside services 1,479 -- 2,475
Data processing and communications 416 -- 1,644
Amortization of intangible assets 96 -- 418
Merger and acquisition charges -- -- 1,122
Other operating 2,261 -- 4,374
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Total noninterest expense 11,713 -- 29,471
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Income before income taxes 9,419 -- 17,791
Income taxes 3,671 -- 6,763
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- ------------------------------------------------------------------------------------------------------------------------------------
Net Income $ 5,748 $ -- $11,028
====================================================================================================================================
Weighted Average Shares Outstanding
Basic 10,243 43,684
Diluted 10,337 44,019
Earnings Per Share
Basic 0.56 0.25
Diluted 0.56 0.25
See accompanying notes to unaudited pro forma condensed combined financial statements
Unaudited Pro Forma Condensed Combined Statement of Income
For the Three Months Ended March 31, 1999
Pioneer
American NBT
Holding BSB
NBT Company Pro Forma Combined
Bancorp Inc. Corp. Adjustments Pro Forma
------------ ----- ----------- ---------
Interest and fee income:
Loan $22,679 $4,812 $ -- $27,491
Securities 8,465 2,291 -- 10,756
Other 458 82 -- 540
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Total interest and fee income: 31,602 7,185 -- 38,787
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Interest expense:
Deposits 11,006 2,729 -- 13,735
Borrowings 2,878 968 -- 3,846
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Total interest expense 13,884 3,697 -- 17,581
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Net interest income 17,718 3,488 -- 21,206
Provision for loan losses 1,120 75 -- 1,195
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Net interest income after provision for loan losses 16,598 3,413 -- 20,011
-----------------------------------------------------------------------------------------------------------------------------------
Noninterest income:
Trust 835 -- -- 835
Service charges on deposit accounts 1,408 517 -- 1,925
Net security gains (losses) 668 -- -- 668
Other 1,365 126 -- 1,491
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Total noninterest income 4,276 643 -- 4,919
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Noninterest expense:
Salaries and employee benefits 5,970 1,331 -- 7,301
Office supplies and postage 637 145 -- 782
Occupancy 1,024 285 -- 1,309
Equipment 947 242 -- 1,189
Professional fees and outside services 697 183 -- 880
Data processing and communications 972 118 -- 1,090
Amortization of intangible assets 329 10 -- 339
Other operating 1,240 559 -- 1,799
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Total noninterest expense 11,816 2,873 -- 14,689
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Income before income taxes 9,058 1,183 -- 10,241
Income taxes 3,282 300 -- 3,582
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-----------------------------------------------------------------------------------------------------------------------------------
Net Income $ 5,776 $ 883 $ -- $ 6,659
===================================================================================================================================
Weighted Average Shares Outstanding
Basic 17,860 2,921 23,132
Diluted 18,104 2,947 23,423
Earnings Per Share
Basic 0.32 0.30 0.29
Diluted 0.32 0.30 0.28
NBT
BSB
Pioneer
BSB Pro Forma Combined
Bancorp, Inc. Adjustments Pro Forma
------------- ----------- ---------
Interest and fee income:
Loan $ 35,463 $ -- $62,954
Securities 6,838 -- 17,594
Other 204 -- 744
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Total interest and fee income: 42,505 -- 81,292
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Interest expense:
Deposits 17,927 -- 31,662
Borrowings 3,466 -- 7,312
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Total interest expense 21,393 -- 38,974
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Net interest income 21,112 -- 42,318
Provision for loan losses 3,461 -- 4,656
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Net interest income after provision for loan losses 17,651 -- 37,662
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Noninterest income:
Trust 251 -- 1,086
Service charges on deposit accounts 1,000 -- 2,925
Net security gains (losses) (401) -- 267
Other 1,539 -- 3,030
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Total noninterest income 2,389 -- 7,308
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Noninterest expense:
Salaries and employee benefits 5,081 -- 12,382
Office supplies and postage 433 -- 1,215
Occupancy 773 -- 2,082
Equipment 427 -- 1,616
Professional fees and outside services 1,331 -- 2,211
Data processing and communications 490 -- 1,580
Amortization of intangible assets 96 -- 435
Other operating 2,533 -- 4,332
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Total noninterest expense 11,164 -- 25,853
- ------------------------------------------------------------------------------------------------------------------------------------
Income before income taxes 8,876 -- 19,117
Income taxes 3,340 -- 6,922
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Net Income $ 5,536 $ -- $12,195
====================================================================================================================================
Weighted Average Shares Outstanding
Basic 10,071 43,274
Diluted 10,341 44,105
Earnings Per Share
Basic 0.55 0.28
Diluted 0.54 0.28
See accompanying notes to unaudited pro forma condensed combined financial statements
Unaudited Pro Forma Condensed Combined Statement of Income
For the Year Ended December 31, 1999
Pioneer
American NBT
Holding Pioneer American
NBT Company Pro Forma Combined
Bancorp Inc. Corp. Adjustments Pro Forma
------------ ----- ----------- ---------
Interest and fee income:
Loans $ 96,235 $19,661 $ -- $115,896
Securities 38,166 9,491 -- 47,657
Other 988 237 -- 1,225
- -------------------------------------------------------------------------------------------------------------------------------
Total interest and fee income: 135,389 29,389 -- 164,778
- -------------------------------------------------------------------------------------------------------------------------------
Interest expense:
Deposits 46,067 10,519 -- 56,586
Borrowings 14,515 4,379 -- 18,894
- -------------------------------------------------------------------------------------------------------------------------------
Total interest expense 60,582 14,898 -- 75,480
- -------------------------------------------------------------------------------------------------------------------------------
Net interest income 74,807 14,491 -- 89,298
Provision for loan losses 5,070 370 -- 5,440
- -------------------------------------------------------------------------------------------------------------------------------
Net interest income after provision for loan losses 69,737 14,121 -- 83,858
- -------------------------------------------------------------------------------------------------------------------------------
Noninterest income:
Trust 3,305 -- -- 3,305
Service charges on deposit accounts 6,303 1,635 -- 7,938
Net security gains (losses) 1,716 88 -- 1,804
Other 5,097 1,108 -- 6,205
- -------------------------------------------------------------------------------------------------------------------------------
Total noninterest income 16,421 2,831 -- 19,252
- -------------------------------------------------------------------------------------------------------------------------------
Noninterest expense:
Salaries and employee benefits 25,213 5,291 -- 30,504
Office supplies and postage 2,436 534 -- 2,970
Occupancy 4,317 1,062 -- 5,379
Equipment 4,230 990 -- 5,220
Professional fees and outside services 3,325 1,005 -- 4,330
Data processing and communications 4,091 437 -- 4,528
Amortization of intangible assets 1,278 39 -- 1,317
Merger and acquisition charges 798 -- -- 798
Other operating 5,812 2,024 -- 7,836
- -------------------------------------------------------------------------------------------------------------------------------
Total noninterest expense 51,500 11,382 -- 62,882
- -------------------------------------------------------------------------------------------------------------------------------
Income before income taxes 34,658 5,570 -- 40,228
Income taxes 12,483 1,488 -- 13,971
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
Net Income $ 22,175 $ 4,082 $ -- $ 26,257
===============================================================================================================================
Weighted Average Shares Outstanding
Basic 17,851 2,902 23,089
Diluted 18,095 2,929 23,382
Earnings Per Share
Basic 1.24 1.41 1.14
Diluted 1.23 1.39 1.12
NBT
BSB
Pioneer
BSB Pro Forma Combined
Bancorp, Inc. Adjustments Pro Forma
------------- ----------- ---------
Interest and fee income:
Loans $ 151,001 $ -- $266,897
Securities 25,038 -- 72,695
Other 682 -- 1,907
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest and fee income: 176,721 -- 341,499
- ------------------------------------------------------------------------------------------------------------------------------------
Interest expense:
Deposits 75,542 -- 132,128
Borrowings 14,034 -- 32,928
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest expense 89,576 -- 165,056
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income 87,145 -- 176,443
Provision for loan losses 19,137 -- 24,577
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income after provision for loan losses 68,008 -- 151,866
- ------------------------------------------------------------------------------------------------------------------------------------
Noninterest income:
Trust 1,104 -- 4,409
Service charges on deposit accounts 4,382 -- 12,320
Net security gains (losses) (231) -- 1,573
Other 7,116 -- 13,321
- ------------------------------------------------------------------------------------------------------------------------------------
Total noninterest income 12,371 -- 31,623
- ------------------------------------------------------------------------------------------------------------------------------------
Noninterest expense:
Salaries and employee benefits 20,386 -- 50,890
Office supplies and postage 1,684 -- 4,654
Occupancy 2,874 -- 8,253
Equipment 1,733 -- 6,953
Professional fees and outside services 6,001 -- 10,331
Data processing and communications 1,930 -- 6,458
Amortization of intangible assets 386 -- 1,703
Merger and acquisition charges 5,408 -- 6,206
Other operating 10,261 -- 18,097
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Total noninterest expense 50,663 -- 113,545
- ------------------------------------------------------------------------------------------------------------------------------------
Income before income taxes 29,716 -- 69,944
Income taxes 11,491 -- 25,462
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Net Income $ 18,225 $ -- $ 44,482
====================================================================================================================================
Weighted Average Shares Outstanding
Basic 10,138 43,365
Diluted 10,312 44,006
Earnings Per Share
Basic 1.80 1.03
Diluted 1.77 1.01
See accompanying notes to unaudited pro forma condensed combined financial statements
Unaudited Pro Forma Condensed Combined Statement of Income
For the Year Ended December 31, 1998
Pioneer
American NBT
Holding Pioneer American
NBT Company Pro Forma Combined
Bancorp Inc. Corp. Adjustments Pro Forma
Interest and fee income:
Loans $ 89,399 $ 19,093 $ - $ 108,492
Securities 40,370 8,729 - 49,099
Other 531 480 - 1,011
- -----------------------------------------------------------------------------------------------------------------------------------
Total interest and fee income: 130,300 28,302 - 158,602
- -----------------------------------------------------------------------------------------------------------------------------------
Interest expense:
Deposits 48,058 10,840 - 58,898
Borrowings 12,359 3,479 - 15,838
- -----------------------------------------------------------------------------------------------------------------------------------
Total interest expense 60,417 14,319 - 74,736
- -----------------------------------------------------------------------------------------------------------------------------------
Net interest income 69,883 13,983 - 83,866
Provision for loan losses 5,729 420 - 6,149
- -----------------------------------------------------------------------------------------------------------------------------------
Net interest income after provision for loan losses 64,154 13,563 - 77,717
- -----------------------------------------------------------------------------------------------------------------------------------
Noninterest income:
Trust 3,115 - - 3,115
Service charges on deposit accounts 5,325 1,404 - 6,729
Net security gains (losses) 1,056 511 - 1,567
Other 5,417 1,046 - 6,463
- -----------------------------------------------------------------------------------------------------------------------------------
Total noninterest income 14,913 2,961 - 17,874
- -----------------------------------------------------------------------------------------------------------------------------------
Noninterest expense:
Salaries and employee benefits 24,215 5,071 - 29,286
Office supplies and postage 2,523 506 - 3,029
Occupancy 4,132 1,027 - 5,159
Equipment 3,599 773 - 4,372
Professional fees and outside services 3,375 1,027 - 4,402
Data processing and communications 3,796 483 - 4,279
Amortization of intangible assets 1,275 39 - 1,314
Other operating 7,665 2,041 - 9,706
- -----------------------------------------------------------------------------------------------------------------------------------
Total noninterest expense 50,580 10,967 - 61,547
- -----------------------------------------------------------------------------------------------------------------------------------
Income before income taxes 28,487 5,557 - 34,044
Income taxes 5,614 1,535 - 7,149
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Net Income $ 22,873 $ 4,022 $ - $ 26,895
===================================================================================================================================
Weighted Average Shares Outstanding
Basic 17,976 2,894 23,200
Diluted 18,361 2,953 23,691
Earnings Per Share
Basic 1.27 1.39 1.16
Diluted 1.25 1.36 1.14
NBT
BSB
Pioneer
BSB Pro Forma Combined
Bancorp, Inc. Adjustments Pro Forma
Interest and fee income:
Loans $ 139,374 $ - $ 247,866
Securities 25,926 - 75,025
Other 866 - 1,877
- ----------------------------------------------------------------------------------------------------------------
Total interest and fee income: 166,166 - 324,768
- ----------------------------------------------------------------------------------------------------------------
Interest expense:
Deposits 72,387 - 131,285
Borrowings 12,399 - 28,237
- ----------------------------------------------------------------------------------------------------------------
Total interest expense 84,786 - 159,522
- ----------------------------------------------------------------------------------------------------------------
Net interest income 81,380 - 165,246
Provision for loan losses 12,931 - 19,080
- ----------------------------------------------------------------------------------------------------------------
Net interest income after provision for loan losses 68,449 - 146,166
- ----------------------------------------------------------------------------------------------------------------
Noninterest income:
Trust 994 - 4,109
Service charges on deposit accounts 3,714 - 10,443
Net security gains (losses) (851) - 716
Other 4,738 - 11,201
- ----------------------------------------------------------------------------------------------------------------
Total noninterest income 8,595 - 26,469
- ----------------------------------------------------------------------------------------------------------------
Noninterest expense:
Salaries and employee benefits 19,528 - 48,814
Office supplies and postage 1,998 - 5,027
Occupancy 2,911 - 8,070
Equipment 1,466 - 5,838
Professional fees and outside services 4,086 - 8,488
Data processing and communications 2,027 - 6,306
Amortization of intangible assets 386 - 1,700
Other operating 9,581 - 19,287
- ----------------------------------------------------------------------------------------------------------------
Total noninterest expense 41,983 - 103,530
- ----------------------------------------------------------------------------------------------------------------
Income before income taxes 35,061 - 69,105
Income taxes 13,542 - 20,691
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
Net Income $ 21,519 $ - $ 48,414
================================================================================================================
Weighted Average Shares Outstanding
Basic 10,006 43,212
Diluted 10,365 44,421
Earnings Per Share
Basic 2.15 1.12
Diluted 2.08 1.09
See accompanying notes to unaudited pro forma condensed combined financial statements
Unaudited Pro Forma Condensed Combined Statement of Income
For the Year Ended December 31, 1997
Pioneer NBT
American Pioneer American
NBT Holding Pro Forma Combined
Bancorp Inc. Company Corp. Adjustments Pro Forma
Interest and fee income:
Loans $ 81,688 $ 18,101 $ - $ 99,789
Securities 38,536 8,086 - 46,622
Other 607 320 - 927
- -----------------------------------------------------------------------------------------------------------------------------------
Total interest and fee income: 120,831 26,507 - 147,338
- -----------------------------------------------------------------------------------------------------------------------------------
Interest expense:
Deposits 45,629 11,337 - 56,966
Borrowings 10,418 1,508 - 11,926
- -----------------------------------------------------------------------------------------------------------------------------------
Total interest expense 56,047 12,845 - 68,892
- -----------------------------------------------------------------------------------------------------------------------------------
Net interest income 64,784 13,662 - 78,446
Provision for loan losses 4,285 535 - 4,820
- -----------------------------------------------------------------------------------------------------------------------------------
Net interest income after provision for loan losses 60,499 13,127 - 73,626
- -----------------------------------------------------------------------------------------------------------------------------------
Noninterest income:
Trust 2,675 - - 2,675
Service charges on deposit accounts 4,942 1,397 - 6,339
Net security gains (losses) (123) 157 - 34
Other 3,973 907 - 4,880
- -----------------------------------------------------------------------------------------------------------------------------------
Total noninterest income 11,467 2,461 - 13,928
- -----------------------------------------------------------------------------------------------------------------------------------
Noninterest expense:
Salaries and employee benefits 22,111 5,040 - 27,151
Office supplies and postage 2,250 507 - 2,757
Occupancy 3,754 1,026 - 4,780
Equipment 2,632 685 - 3,317
Professional fees and outside services 2,485 900 - 3,385
Data processing and communications 2,966 456 - 3,422
Amortization of intangible assets 1,505 39 - 1,544
Other operating 6,677 1,427 - 8,104
- -----------------------------------------------------------------------------------------------------------------------------------
Total noninterest expense 44,380 10,080 - 54,460
- -----------------------------------------------------------------------------------------------------------------------------------
Income before income taxes 27,586 5,508 - 33,094
Income taxes 9,406 1,500 - 10,906
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Net Income $ 18,180 $ 4,008 $ - $ 22,188
===================================================================================================================================
Weighted Average Shares Outstanding
Basic 17,095 2,850 22,239
Diluted 17,393 2,939 22,698
Earnings Per Share
Basic 1.06 1.41 1.00
Diluted 1.05 1.36 0.98
NBT
BSB
Pioneer
BSB Pro Forma Combined
Bancorp, Inc. Adjustments Pro Forma
Interest and fee income:
Loans $ 120,750 $ - $ 220,539
Securities 20,398 - 67,020
Other 200 - 1,127
- ----------------------------------------------------------------------------------------------------------------
Total interest and fee income: 141,348 - 288,686
- ----------------------------------------------------------------------------------------------------------------
Interest expense:
Deposits 60,180 - 117,146
Borrowings 11,272 - 23,198
- ----------------------------------------------------------------------------------------------------------------
Total interest expense 71,452 - 140,344
- ----------------------------------------------------------------------------------------------------------------
Net interest income 69,896 - 148,342
Provision for loan losses 10,814 - 15,634
- ----------------------------------------------------------------------------------------------------------------
Net interest income after provision for loan losses 59,082 - 132,708
- ----------------------------------------------------------------------------------------------------------------
Noninterest income:
Trust 709 - 3,384
Service charges on deposit accounts 3,297 - 9,636
Net security gains (losses) 380 - 414
Other 3,762 - 8,642
- ----------------------------------------------------------------------------------------------------------------
Total noninterest income 8,148 - 22,076
- ----------------------------------------------------------------------------------------------------------------
Noninterest expense:
Salaries and employee benefits 17,121 - 44,272
Office supplies and postage 1,886 - 4,643
Occupancy 2,547 - 7,327
Equipment 1,378 - 4,695
Professional fees and outside services 2,716 - 6,101
Data processing and communications 1,358 - 4,780
Amortization of intangible assets 386 - 1,930
Other operating 9,548 - 17,652
- ----------------------------------------------------------------------------------------------------------------
Total noninterest expense 36,940 - 91,400
- ----------------------------------------------------------------------------------------------------------------
Income before income taxes 30,290 - 63,384
Income taxes 11,641 - 22,547
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
Net Income $ 18,649 $ - $ 40,837
================================================================================================================
Weighted Average Shares Outstanding
Basic 9,905 42,049
Diluted 10,258 43,214
Earnings Per Share
Basic 1.88 0.97
Diluted 1.82 0.94
See accompanying notes to unaudited pro forma condensed combined financial statements
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
(1) Pro forma earnings per share have been calculated on the applicable
weighted average number of shares of NBT plus the additional shares of NBT
assumed to be issued in the mergers in exchange for the weighted average
outstanding shares of Pioneer American and BSB for each applicable period
based on the exchange ratios of 1.805 and 2.0, respectively.
(2) Pro forma entry to retire treasury stock held by Pioneer American
(approximately 71,060 shares having a par value of $1.00 per share):
Common Stock 71,060
Paid in Capital 1,658,739
Treasury Stock 1,729,799
Pro forma entry to issue 1.805 shares of NBT common stock in exchange for
each share of Pioneer American common stock. The par value of NBT common
stock to be issued is determined as follows:
NBT common stock issued at March 31, 2000 18,623,435
NBT common stock issued in exchange for Pioneer American common stock after
retirement of Pioneer American treasury stock (2,864,307 shares of Pioneer
American common stock times conversion ratio of 1.805) 5,170,074
-----------
Combined pro forma total shares of common stock issued 23,793,509
Par value per share of common stock $ .01
-----------
Combined pro forma total par value $ 237,935
===========
Actual par value of common stock at March 31, 2000:
NBT/BSB combined pro forma (note 1) $ 186,234
Pioneer American (after retirement of treasury shares) 2,864,307
-----------
Total $ 3,050,541
===========
Required decrease in par value $ 2,812,606
===========
Entry to conform par value of common stock:
Common stock 2,812,606
Paid in Capital 2,812,606
Summary of pro forma entries above:
Common Stock 2,883,666
Paid in Capital 1,153,867
Treasury Stock 1,729,799
(3) Pro forma entry to retire treasury stock held by BSB (approximately
1,174,216 shares having a par value of $.01 per share):
Common Stock 11,742
Paid in Capital 13,445,258
Treasury Stock 13,457,000
BSB common stock issued at March 31, 2000 11,430,761
Less treasury stock retired above (1,174,216)
-----------
BSB common stock issued and outstanding at March 31, 2000 10,256,545
===========
Pro forma entry to issue 2.0 shares of NBT common stock in exchange for
each share of BSB common stock:
Combined NBT/Pioneer American pro forma common stock issued at March 31, 2000
(note 2) 23,793,509
NBT common stock issued in exchange for BSB common stock after retirement
of BSB's treasury stock (10,256,545 shares of BSB common stock times
conversion ratio of 2.0) 20,513,090
----------
Combined pro forma total shares of common stock issued 44,306,599
Par value per share of NBT common stock $ .01
-----------
Combined NBT/BSB pro forma total par value $ 443,066
===========
Actual par value of common stock at March 31, 2000:
NBT/Pioneer American pro forma (note 2) $ 237,935
BSB (after retirement of treasury shares) 102,566
-----------
Total $ 340,501
===========
Required increase in par value $ 102,565
===========
Entry to conform par value of common stock:
Paid in Capital 102,565
Common stock 102,565
Summary of pro forma entries above:
Paid in Capital 13,547,823
Common Stock 90,823
Treasury Stock 13,457,000
(4) Authorized, issued and outstanding share information is as follows at March
31, 2000:
- ------------------------------------------------------------------------------------------------------------------------------
NBT Pioneer NBT/Pioneer BSB NBT/Pioneer
American American Pro forma American/BSB Pro
forma
- ------------------------------------------------------------------------------------------------------------------------------
PREFERRED
- ------------------------------------------------------------------------------------------------------------------------------
Authorized 2,500,000 - 2,500,000 2,500,000 2,500,000
- ------------------------------------------------------------------------------------------------------------------------------
Issued and Outstanding - - - - -
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
COMMON
- ------------------------------------------------------------------------------------------------------------------------------
Par value $0.01 $1.00 $0.01 $.01 $0.01
- ------------------------------------------------------------------------------------------------------------------------------
Authorized 30,000,000 30,000,000 30,000,000 30,000,000 100,000,000
- ------------------------------------------------------------------------------------------------------------------------------
Issued 18,623,435 2,935,367 23,793,509 11,430,761 44,306,599
- ------------------------------------------------------------------------------------------------------------------------------
Outstanding 18,100,868 2,864,307 23,270,942 10,256,545 43,784,032
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
(5) The unaudited pro forma condensed combined balance sheet at March 31, 2000,
reflects anticipated non-recurring merger and integration costs for both
the Pioneer American and BSB mergers. Costs related to the Pioneer American
merger are estimated to be in the range of $4.6 million to $5.6 million
($3.3 million to $4.3 million after taxes). Costs related to the BSB merger
are estimated to be in the range of $16.0 million to $17.0 million ($11.5
million to $12.5 million after taxes). These estimates include primarily
investment banking, legal, accounting, printing, data processing and system
integration costs, and employee and contract termination costs. Anticipated
merger and integration cost estimates are not included in the unaudited pro
forma condensed combined statements of income for any of the periods
presented.
The pro forma statements do not reflect potential expense reductions or
revenue enhancements expected to be realized subsequent to consummation of
the mergers.
The unaudited pro forma condensed combined balance sheet at March 31, 2000
only reflects merger and integration costs related to the Lake Ariel merger
that were incurred through March 31, 2000. It is anticipated that there
will be an additional $5.0 million of merger and integration costs incurred
in the future in connection with the Lake Ariel merger. These additional
costs are not recognized in the unaudited pro forma condensed combined
balance sheet at March 31, 2000.
The entries to record the anticipated merger and integration costs on the
unaudited pro forma condensed combined balance sheet are as follows:
BSB
Current tax receivable 4,500,000
Retained earnings 12,000,000
Other liabilities 16,500,000
Pioneer American
Current tax receivable 1,300,000
Retained earnings 3,800,000
Other liabilities 5,100,000
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NBT BANCORP INC.
By: /s/ Daryl R. Forsythe
--------------------------
Name: Daryl R. Forsythe
Title: President and Chief
Executive Officer
Date: July 24, 2000
EXHIBIT INDEX
23.1 Consent of KPMG LLP
23.2 Consent of PricewaterhouseCoopers LLP