Page 1 of 10
- --------------------------------------------------------------------------------
EXHIBIT 99
FOR IMMEDIATE RELEASE
ATTENTION: FINANCIAL AND BUSINESS EDITORS
- --------------------------------------------------------------------------------
Contact: Daryl R. Forsythe, CEO
Michael J. Chewens, CFO
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
607-337-6416
NBT BANCORP ANNOUNCES FIRST QUARTER RESULTS AND STOCK BUYBACK; DECLARES CASH
DIVIDEND
NORWICH, NY (April 28, 2003) - NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) today
reported net income for the three months ended March 31, 2003 of $11.6 million,
up $0.5 million from net income of $11.1 million reported for the same period in
2002. Net income per diluted share for the three months ended March 31, 2003 was
$0.35, up $0.02 or 6% from the $0.33 per diluted share earned in the same period
in 2002. Return on average assets and return on average equity were 1.27% and
16.05%, respectively, for the three months ended March 31, 2003, compared with
1.25% and 16.62%, respectively, for the same period in 2002.
The results for the three months ended March 31, 2003 were driven primarily
by strong growth in total noninterest income, which increased 18% or $1.3
million for the three months ended March 31, 2003 compared to the same period in
2002. Additionally, credit quality continued to improve during the three months
ended March 31, 2003. Total nonperforming loans decreased to $18.4 million at
March 31, 2003, down from $39.8 million at March 31, 2002 and $26.4 million at
December 31, 2002.
In commenting on the results, NBT Chairman, President and CEO Daryl R.
Forsythe stated, "We are pleased with the solid earnings increase the Company
experienced in the first quarter. The Company produced these results despite
continued downward pressure on net interest margins resulting from the
historically low interest rate environment. Significant growth in noninterest
income generated by our ongoing efforts to maximize our delivery of high quality
service in our market areas has helped us to mitigate margin compression.
Additionally, the progress made in reducing the level of nonperforming loans in
this uncertain economic environment is comforting. Our disciplined, conservative
process for
Page 2 of 10
monitoring loan performance has served us well and protects the value of the
Company to our stockholders."
LOAN AND LEASE QUALITY AND PROVISION FOR LOAN AND LEASE LOSSES
At March 31, 2003, the key indicators of credit quality improved
significantly from December 31, 2002 and March 31, 2002. Nonperforming loans
totaled $18.4 million at March 31, 2003, and represented 0.78% of total loans
and leases, down from $26.4 million and 1.12% at December 31, 2002 and $39.8
million and 1.72% at March 31, 2002. Annualized net charge-offs to average loans
for the three months ended March 31, 2003, were 0.17%, down from the 0.25%
annualized ratio for the three months ended March 31, 2002, and down
significantly from the year-to-date December 31, 2002 rate of 0.58%. The
allowance for loan and lease losses as a percentage of total loans and leases
was 1.73% at March 31, 2003 compared to 1.70% at December 31, 2002 and 1.95% at
March 31, 2002. The ratio of the allowance for loan and lease losses to
nonperforming loans was 223.00% at March 31, 2003, compared to 152.18% at
December 31, 2002 and 113.85% at March 31, 2002.
For the three months ended March 31, 2003, the provision for loan and lease
losses totaled $1.9 million, down slightly from the $2.0 million provided in the
same period in 2002. The provision for loan and lease losses represents the
charge against current earnings that is determined by Management, through a
disciplined credit review process, as the amount needed to maintain an allowance
that is sufficient to absorb loan and lease losses inherent in the Company's
current loan and lease portfolio.
NET INTEREST INCOME AND NET INTEREST MARGIN
Net interest income for the three months ended March 31, 2003, decreased 1%
to $36.0 million from $36.3 million in the same period for 2002. The Company's
net interest margin was 4.38% for the three months ended March 31, 2003,
compared to 4.54% for the same period a year ago but actually increased from
4.35% for the three months ended December 31, 2002. The compression in net
interest margin in the first quarter compared to last year resulted from earning
assets repricing down at a faster rate than interest-bearing liabilities. This
resulted primarily from accelerating pre-payments from mortgage-related loans
and securities, which in turn were reinvested at lower rates. For the remainder
of 2003, the Company expects its net interest margin to continue to compress
from first quarter 2003 levels if the interest rate environment remains at
current levels or lower. Mr. Forsythe commented "To mitigate margin compression,
the Company is focused on efforts to further reduce deposit costs, increase loan
growth at levels above previous quarters which should increase net interest
income, and have a continued focus on growing non-interest sources of income."
Page 3 of 10
NONINTEREST INCOME
Noninterest income for the three months ended March 31, 2003 totaled $8.7
million, up $1.3 million or 18%, from the $7.4 million reported in the same
period of 2002. Net securities transactions resulted in a slight gain for the
three months ended March 31, 2003 and a $0.5 million loss for the same period in
2002. Service charges on deposit accounts totaled $3.6 million for the three
months ended March 31, 2003, a $0.6 million, or 18% increase over the $3.1
million reported in the same period in 2002. The increase in service charges on
deposit accounts was driven by the combination of continued growth in core
deposit products as well as several pricing adjustments implemented during 2002.
Other income increased $0.5 million to $2.8 million for the three months ended
March 31, 2003 from $2.3 million for the same period a year ago. The increase in
other income was driven primarily by strong growth in consumer banking fees as
well as strong growth in ATM fees.
NONINTEREST EXPENSE
Total noninterest expense for the three months ended March 31, 2003
increased $0.7 million when compared to the same period in 2002. Salaries and
employee benefits increased $0.3 million, due primarily to higher incentive
compensation costs. Other expense increased $0.7 million due primarily to a
write-down related to a nonmarketable equity security in 2003. Offsetting these
increases was a decrease in loan collection expenses and other real estate owned
("OREO") transactions of $0.6 million, due primarily to gains from the sale of
OREO.
BALANCE SHEET
Total assets were $3.8 billion at March 31, 2003, up $0.2 billion from the
$3.6 billion at March 31, 2002. Loans and leases were $2.4 billion at March 31,
2003, up 2% from the $2.3 billion at March 31, 2002. The modest loan growth
experienced over 2002 reflects the effects of a stagnant economy as well as the
Company's continued focus on improving the overall credit quality of the loan
and lease portfolio.
The Company's reductions in time deposits from $1.4 billion at March 31,
2002 to $1.3 billion at March 31, 2003, was offset by a $0.2 billion or 12%
increase in core deposits. This resulted in total deposits increasing $0.1
billion from $2.9 billion at March 31, 2002 to $3.0 billion at March 31, 2003.
Stockholders' equity was $291.6 million, representing a Tier 1 leverage ratio of
6.71%, at March 31, 2003, compared to $268.4 million or a Tier 1 leverage ratio
of 6.70%, at March 31, 2002.
Page 4 of 10
STOCK BUY BACK
NBT announced today that it intends to repurchase up to an additional one
million shares (approximately 3%) of its outstanding common stock from time to
time over the next 12 months in open market and privately negotiated
transactions. Under the program no shares will knowingly be repurchased from
officers and directors of NBT or from persons who hold in excess of five percent
of its outstanding shares of common stock. Mr. Forsythe commented "The Board of
Directors believes the repurchase program is in the best interest of the Company
and its stockholders in view of the current price level of the Company's common
stock compared to alternate uses of these monies given the current interest rate
environment."
Currently, there are 193,554 shares remaining under a previous
authorization that will be repurchased prior to the commencement of the new
program. The Company repurchased a total of 330,813 shares in the three months
ended March 31, 2003, at an average price of $17.49 per share. Total cash paid
for these repurchases was $5.8 million. Total shares outstanding at March 31,
2003 were 32.4 million shares, compared to 33.2 million shares at March 31,
2002.
DIVIDEND DECLARED
The NBT Board of Directors declared a second quarter 2003 cash dividend of
$0.17 per share at a meeting held today. The dividend will be paid on June 15,
2003, to shareholders of record as of June 1, 2003.
CORPORATE OVERVIEW
NBT is a financial services holding company headquartered in Norwich, NY,
with combined assets of $3.8 billion at March 31, 2003. The Company primarily
operates through one full-service community bank with three geographic divisions
and through a financial services company. NBT Bank, N.A. has 109 locations,
including 43 NBT Bank offices and 26 Central National Bank offices in upstate
New York and 40 Pennstar Bank offices in northeastern Pennsylvania. NBT also
provides financial services related products through two companies, M. Griffith,
Inc. and Colonial Financial Services, Inc. More information about NBT's banking
divisions can be obtained on the Internet at www.nbtbank.com,
---------------
www.pennstarbank.com and www.canajocnb.com.
- -------------------- -----------------
Page 5 of 10
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. These
forward-looking statements involve risks and uncertainties and are based on the
beliefs and assumptions of the management of NBT Bancorp and its subsidiaries
and on the information available to management at the time that these statements
were made. There are a number of factors, many of which are beyond NBT's
control, that could cause actual conditions, events or results to differ
significantly from those described in the forward-looking statements. Factors
that may cause actual results to differ materially from those contemplated by
such forward-looking statements include, among others, the following
possibilities: (1) competitive pressures among depository and other financial
institutions may increase significantly; (2) revenues may be lower than
expected; (3) changes in the interest rate environment may reduce interest
margins; (4) general economic conditions, either nationally or regionally, may
be less favorable than expected, resulting in, among other things, a
deterioration in credit quality and/or a reduced demand for credit; (5)
legislative or regulatory changes, including changes in accounting standards and
tax laws, may adversely affect the businesses in which NBT is engaged; (6)
competitors may have greater financial resources and develop products that
enable such competitors to compete more successfully than NBT; and (7) adverse
changes may occur in the securities markets or with respect to inflation.
Forward-looking statements speak only as of the date they are made. Except as
required by law, NBT does not undertake to update forward-looking statements to
reflect subsequent circumstances or events.
FINANCIAL TABLES APPEAR ON FOLLOWING PAGES (6-10).
Page 6 of 10
NBT BANCORP INC.
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
Net Percent
2003 2002 Change Change
------------ ------------ ---------- --------
(dollars in thousands, except share
and per share data)
THREE MONTHS ENDED MARCH 31,
Net Income $ 11,566 $ 11,077 $ 489 4%
Diluted Earnings Per Share $ 0.35 $ 0.33 $ 0.02 6%
Weighted Average Diluted
Common Shares Outstanding 32,783,269 33,295,093 (511,824) -2%
Return on Average Assets 1.27% 1.25% 0.02% 2%
Return on Average Equity 16.05% 16.62% -0.57% -3%
Net Interest Margin 4.38% 4.54% -0.16% -4%
=======================================================================================================
BALANCE SHEET AS OF MARCH 31,
Loans $ 2,374,079 $ 2,317,644 $ 56,435 2%
Earning Assets $ 3,468,637 $ 3,370,121 $ 98,516 3%
Total Assets $ 3,751,747 $ 3,595,300 $ 156,447 4%
Deposits $ 2,955,893 $ 2,865,810 $ 90,083 3%
StockholdersEquity $ 291,620 $ 268,445 $ 23,175 9%
=======================================================================================================
AVERAGE BALANCES
QUARTER ENDED MARCH 31,
Loans $ 2,354,636 $ 2,322,129 $ 32,507 1%
Securities AFS (excluding unrealized gains or losses) $ 977,901 $ 888,450 $ 89,451 10%
Securities HTM $ 80,342 $ 103,328 ($22,986) -22%
Trading Securities $ 195 $ 128 $ 67 52%
Federal Reserve and Federal Home Loan Bank Stock $ 23,482 $ 21,045 $ 2,437 12%
Short-Term Interest Bearing Accounts $ 4,990 $ 13,050 ($8,060) -62%
Total Earning Assets $ 3,441,546 $ 3,348,130 $ 93,416 3%
Total Assets $ 3,697,543 $ 3,581,885 $ 115,658 3%
Interest Bearing Deposits $ 2,475,306 $ 2,459,781 $ 15,525 1%
Non-Interest Bearing Deposits $ 430,097 $ 405,401 $ 24,696 6%
Short-Term Borrowings $ 98,499 $ 86,661 $ 11,838 14%
Long-Term Debt $ 345,674 $ 308,378 $ 37,296 12%
Total Interest Bearing Liabilities $ 2,919,479 $ 2,854,820 $ 64,659 2%
StockholdersEquity $ 292,543 $ 270,376 $ 22,167 8%
=======================================================================================================
Page 7 of 10
NBT BANCORP INC.
SELECTED FINANCIAL HIGHLIGHTS
(UNAUDITED)
Net Percent
2003 2002 Change Change
----------------- ------------------ ------------------ --------
(dollars in thousands, except share and per share data)
ASSET QUALITY AT MARCH 31,
Nonaccrual Loans $ 17,078 $ 38,775 ($21,697) -56%
90 Days Past Due and Still Accruing $ 1,074 $ 483 $ 591 122%
Troubled Debt Restructuring Loans $ 297 $ 531 ($234) -44%
Total Nonperforming Loans $ 18,449 $ 39,789 ($21,340) -54%
Other Real Estate Owned (OREO) $ 2,609 $ 1,960 $ 649 33%
Total Nonperforming Loans and OREO $ 21,058 $ 41,749 ($20,691) -50%
Nonperforming Securities $ 925 $ 1,957 ($1,032) -53%
Total Nonperforming Assets $ 21,983 $ 43,706 ($21,723) -50%
Allowance for Loan and Lease Losses $ 41,141 $ 45,299 ($4,158) -9%
Year-to-Date (YTD) Net Charge-Offs $ 966 $ 1,458 ($492) -34%
Allowance to Loans and Leases 1.73% 1.95% -0.22% -11%
Total Nonperforming Loans to Loans and Leases 0.78% 1.72% -0.94% -55%
Total Nonperforming Assets to Assets 0.59% 1.22% -0.63% -52%
Allowance to Nonperforming Loans 223.00% 113.85% 109.15% 96%
Annualized Net Charge-Offs to
YTD Average Loans and Leases 0.17% 0.25% -0.08% -32%
===================================================================================================================
CAPITAL
Equity to Assets 7.77% 7.47% 0.30% 4%
Book Value Per Share $ 9.00 $ 8.09 $ 0.91 11%
Tangible Book Value Per Share $ 7.50 $ 6.61 $ 0.89 13%
Tier 1 Leverage Ratio 6.71% 6.70% 0.01% 0%
Tier 1 Capital Ratio 9.77% 9.97% -0.20% -2%
Total Risk-Based Capital Ratio 11.02% 11.23% -0.21% -2%
===================================================================================================================
- ---------------------------------------------------------------------------------------------------------
QUARTERLY COMMON STOCK PRICE*
2003 2002 2001
Quarter End High Low High Low High Low
-------- ------- --------- ------- --------- -------
March 31 $18.60 $16.76 $15.15 $13.15 $17.50 $13.25
June 30 19.32 14.00 25.42** 14.30
September 30 18.50 16.36 17.30 13.50
December 31 18.60 14.76 15.99 12.55
- ---------------------------------------------------------------------------------------------------------
<FN>
*historical NBT Bancorp Inc. only
**This price was reported on June 29, 2001, a day on which the Nasdaq Stock
Market experienced computerized trading disruptions which, among other things,
forced it to extend its regular trading session and cancel its late trading
session. Subsequently the Nasdaq Stock Market recalculated and republished
several closing stock prices (not including NBT Bancorp Inc., for which reported
a closing price of $19.30). Excluding trading on June 29, 2001, the high sales
price for the quarter ended June 30, 2001 was $16.75.
Page 8 of 10
NBT BANCORP INC. AND SUBSIDIARIES MARCH 31, March 31,
CONSOLIDATED BALANCE SHEETS 2003 2002
- -------------------------------------------------------------------------------------------
(in thousands) (Unaudited)
ASSETS
Cash and due from banks $ 123,709 $ 93,864
Short term interest bearing accounts 5,907 7,135
Trading securities, at fair value 188 155
Securities available for sale, at fair value 1,008,310 921,750
Securities held to maturity (fair value of $84,151 and $100,250, 82,155 101,099
at March 31, 2003 and 2002, respectively)
Federal Reserve and Federal Home Loan Bank stock 23,122 21,630
Loans and leases 2,374,079 2,317,644
Less allowance for loan and lease losses 41,141 45,299
- -------------------------------------------------------------------------------------------
Net loans and leases 2,332,938 2,272,345
Premises and equipment, net 61,609 60,875
Goodwill 46,121 46,121
Intangible assets, net 2,636 2,797
Other assets 65,052 67,529
- -------------------------------------------------------------------------------------------
TOTAL ASSETS $ 3,751,747 $3,595,300
===========================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $ 449,051 $ 404,186
Savings, NOW, and money market 1,249,424 1,109,598
Time 1,257,418 1,352,026
- -------------------------------------------------------------------------------------------
Total deposits 2,955,893 2,865,810
Short-term borrowings 95,103 81,162
Long-term debt 345,345 325,933
Other liabilities 46,786 36,950
- -------------------------------------------------------------------------------------------
Total liabilities 3,443,127 3,309,855
Guaranteed preferred beneficial interests in
Company's junior subordinated debentures 17,000 17,000
Total stockholders' equity 291,620 268,445
- -------------------------------------------------------------------------------------------
TOTAL LIABILITIES, GUARANTEED PREFERRED
BENEFICIAL INTERESTS IN COMPANYJUNIOR
SUBORDINATED DEBENTURES
AND STOCKHOLDERSEQUITY $ 3,751,747 $3,595,300
===========================================================================================
Page 9 of 10
Three months ended
NBT BANCORP INC. AND SUBSIDIARIES March 31,
CONSOLIDATED STATEMENTS OF INCOME 2003 2002
- -----------------------------------------------------------------------------
(in thousands, except per share data) (Unaudited)
INTEREST, FEE AND DIVIDEND INCOME:
Loans and leases $ 39,615 $ 42,227
Securities available for sale 11,805 13,629
Securities held to maturity 889 1,184
Securities trading 2 2
Other 324 280
- -----------------------------------------------------------------------------
Total interest, fee and dividend income 52,635 57,322
- -----------------------------------------------------------------------------
INTEREST EXPENSE:
Deposits 12,612 16,991
Short-term borrowings 289 348
Long-term debt 3,705 3,638
- -----------------------------------------------------------------------------
Total interest expense 16,606 20,977
- -----------------------------------------------------------------------------
Net interest income 36,029 36,345
Provision for loan and lease losses 1,940 2,011
- -----------------------------------------------------------------------------
Net interest income after provision for loan losses 34,089 34,334
- -----------------------------------------------------------------------------
NONINTEREST INCOME:
Trust 892 819
Service charges on deposit accounts 3,603 3,050
Broker/dealer and insurance revenue 1,392 1,495
Net securities gains (losses) 27 (502)
Gain on sale of a branch, net - 220
Other 2,828 2,329
- -----------------------------------------------------------------------------
Total noninterest income 8,742 7,411
- -----------------------------------------------------------------------------
NONINTEREST EXPENSE:
Salaries and employee benefits 12,659 12,374
Office supplies and postage 1,073 897
Occupancy 2,526 2,169
Equipment 1,766 1,714
Professional fees and outside services 1,302 1,615
Data processing and communications 2,721 2,565
Amortization of intangible assets 162 225
Capital securities 191 216
Loan collection and other real estate owned 280 927
Other operating 3,212 2,510
- -----------------------------------------------------------------------------
Total noninterest expense 25,892 25,212
- -----------------------------------------------------------------------------
Income before income taxes 16,939 16,533
Income taxes 5,373 5,456
- -----------------------------------------------------------------------------
NET INCOME $ 11,566 $ 11,077
- -----------------------------------------------------------------------------
Earnings Per Share:
Basic $ 0.36 $ 0.33
Diluted $ 0.35 $ 0.33
=============================================================================
2002 results have been restated to give effect to the adoption of Statement of
Financial Accounting Standards ("SFAS") No. 147.
Page 10 of 10
NBT BANCORP INC. AND SUBSIDIARIES 1Q 4Q 3Q 2Q 1Q
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME 2003 2002 2002 2002 2002
- ------------------------------------------------------------------------------------------------------------
(in thousands, except per share data) (Unaudited)
INTEREST, FEE AND DIVIDEND INCOME:
Loans $ 39,615 $41,598 $41,970 $41,390 $42,227
Securities available for sale 11,805 12,329 13,778 14,668 13,629
Securities held to maturity 889 951 1,010 1,115 1,184
Trading securities 2 2 2 2 2
Other 324 519 251 315 280
- ------------------------------------------------------------------------------------------------------------
Total interest, fee and dividend income 52,635 55,399 57,011 57,490 57,322
- ------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE:
Deposits 12,612 14,328 15,748 16,265 16,991
Short-term borrowings 289 282 417 287 348
Long-term debt 3,705 4,103 4,139 3,856 3,638
- ------------------------------------------------------------------------------------------------------------
Total interest expense 16,606 18,713 20,304 20,408 20,977
- ------------------------------------------------------------------------------------------------------------
Net interest income 36,029 36,686 36,707 37,082 36,345
Provision for loan and lease losses 1,940 2,546 2,424 2,092 2,011
- ------------------------------------------------------------------------------------------------------------
Net interest income after provision for loan losses 34,089 34,140 34,283 34,990 34,334
- ------------------------------------------------------------------------------------------------------------
NONINTEREST INCOME:
Trust 892 860 743 804 819
Service charges on deposit accounts 3,603 4,055 3,531 3,239 3,050
Broker/dealer and insurance fees 1,392 1,409 1,393 1,483 1,495
Net securities (losses) gains 27 26 (6) 69 (502)
Gain on sale of a branch, net - - - - 220
Other 2,828 1,917 2,380 2,207 2,329
- ------------------------------------------------------------------------------------------------------------
Total noninterest income 8,742 8,267 8,041 7,802 7,411
- ------------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE:
Salaries and employee benefits 12,659 11,621 11,720 12,497 12,374
Office supplies and postage 1,073 1,206 1,116 1,227 897
Occupancy 2,526 2,036 2,032 2,096 2,169
Equipment 1,766 1,862 1,672 1,818 1,714
Professional fees and outside services 1,302 1,746 1,446 1,782 1,615
Data processing and communications 2,721 2,725 2,705 2,598 2,565
Amortization of intangible assets 162 164 177 208 225
Capital securities 191 172 221 230 216
Merger, acquisition and reorganization (recovery) costs - - (130) - -
Loan collection and other real estate owned 280 601 570 748 927
Other operating 3,212 3,728 3,791 2,858 2,510
- ------------------------------------------------------------------------------------------------------------
Total noninterest expense 25,892 25,861 25,320 26,062 25,212
- ------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes 16,939 16,546 17,004 16,730 16,533
Income taxes 5,373 5,302 5,592 5,464 5,456
- ------------------------------------------------------------------------------------------------------------
NET INCOME $ 11,566 $11,244 $11,412 $11,266 $11,077
============================================================================================================
Earnings per share:
Basic $ 0.36 $ 0.34 $ 0.35 $ 0.34 $ 0.33
Diluted $ 0.35 $ 0.34 $ 0.34 $ 0.34 $ 0.33
============================================================================================================
2002 quarterly results have been restated to give effect to the adoption of SFAS No. 147.