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EXHIBIT 99.1
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 ANNUAL EARNINGS OF $50.0 MILLION AND STOCK BUYBACK;
DECLARES CASH DIVIDEND
NORWICH, NY (January 24, 2005) - NBT Bancorp Inc. (NBT) (NASDAQ: NBTB)
reported today that net income for the year ended December 31, 2004, was $50.0
million, or $1.51 per diluted share, up 6% compared with $47.1 million or $1.43
per diluted share for the same period in 2003. The increase in net income for
the year ended December 31, 2004, was primarily the result of increases in net
interest income of $6.1 million and noninterest income of $3.1 million that was
partially offset by a $5.3 million increase in noninterest expense. Return on
average assets and return on average equity were 1.21% and 15.69%, respectively,
for the year ended December 31, 2004, compared with 1.22% and 15.90%,
respectively, for the same period in 2003.
Net income for the quarter ended December 31, 2004, was $12.5 million, or
$0.38 per diluted share, up 6% on a per diluted share basis from $11.9 million,
or $0.36 per diluted share for the same period a year ago. The increase in net
income for the quarter ended December 31, 2004, was primarily the result of an
increase in net interest income of $1.3 million as well as decreases in the
provision for loan and lease losses of $0.6 million and income tax expense of
$1.1 million that was partially offset by a $2.6 million increase in noninterest
expense. Annualized return on average assets and return on average equity were
1.18% and 15.08%, respectively, for the quarter ended December 31, 2004,
compared with 1.17% and 15.47%, respectively, for the same period in 2003.
NBT Chairman and CEO Daryl R. Forsythe stated, "With net income just over
$50 million, NBT delivered another year of solid performance in 2004. Our
performance continues to be driven by strong loan growth and maintaining
excellent credit quality. Our expansion efforts in the Albany and Binghamton
markets helped contribute to another solid year of strong core deposit growth.
As in 2004,
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2005 will be a year of investment in our newer banking markets, as NBT plans to
continue expansion in Albany and northeastern Pennsylvania to complement the
solid foundation we have built for continuing growth while building additional
shareholder value."
LOAN AND LEASE QUALITY AND PROVISION FOR LOAN AND LEASE LOSSES
Nonperforming loans at December 31, 2004 were $16.2 million or 0.56% of
total loans and leases compared with $14.8 million or 0.56% of total loans and
leases at December 31, 2003. The Company's allowance for loan and lease losses
was 1.57% of loans and leases at December 31, 2004 compared with 1.62% at
December 31, 2003. The ratio of the allowance for loan and lease losses to
nonperforming loans was 277.75% at December 31, 2004 compared with 287.62% at
December 31, 2003. Net charge-offs to average loans and leases for the year
ended December 31, 2004 and 2003, were 0.27%, respectively.
For the year and quarter ended December 31, 2004, the provision for loan
and lease losses totaled $9.6 million and $2.8 million, respectively, compared
with the $9.1 million and $3.3 million for the same periods in 2003. The
increase in the provision for loan and lease losses for the year ended December
31, 2004, when compared with the same period in 2003 resulted mainly from
continued loan growth and a slight increase in nonperforming loans. The decrease
in the provision for the quarter ended December 31, 2004, when compared with the
same period in the prior year was due to a higher net charge-off rate for the
quarter ended December 31, 2003, as well as a stronger loan growth rate for that
same period.
NET INTEREST INCOME
Net interest income for the year ended December 31, 2004 increased 4% to
$150.5 million from $144.4 million in the same period for 2003. The Company's
net interest margin was 4.03% for the year ended December 31, 2004 compared with
4.16% in 2003. Net interest income was up 4% to $38.7 million for the quarter
ended December 31, 2004, compared with $37.3 million for the same period a year
ago. The increase in net interest income was due primarily to a 5% increase in
average earning assets offset by a slight decline in the Company's net interest
margin, which was 4.03% for the quarter ended December 31, 2004, down from 4.07%
for the same period in 2003. The increase in average earning assets was due
primarily to loan growth, as average loans were up 9% for the quarter ended
December 31, 2004, when compared with the same period in 2003. The Company's net
interest margin of 4.03% for the quarter ended December 31, 2004, improved from
the net interest margin for the
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quarter ended September 30, 2004 of 3.99%, as the Company benefited from the
recent increases in the federal funds rate during the second half of 2004.
NONINTEREST INCOME
Noninterest income for the year ended December 31, 2004 was $40.9 million,
up $3.1 million or 8% from $37.8 million for the same period in 2003. Service
charges on deposit accounts for the year ended December 31, 2004, increased $0.6
million or 4% over the same period in 2003. The increase in service charges on
deposit accounts resulted primarily from higher revenue collected for overdraft
fees. Revenue from trust services increased $0.6 million or 14% for the year
ended December 31, 2004, over the same period in 2003, due in part to an
increase in assets under management resulting from improved stock market
conditions and an increase in the number of managed asset accounts. Income from
BOLI increased $0.7 million for the year ended December 31, 2004, over the same
period in the prior year resulting from the purchase of $30 million in BOLI in
June 2003. Other income increased $1.3 million or 13% primarily from increases
in revenue from ATM fees and other consumer and commercial banking fees.
Noninterest income for the quarter ended December 31, 2004 was $10.3 million, up
$0.2 million from $10.1 million for the same period in 2003.
NONINTEREST EXPENSE
Noninterest expense for the year ended December 31, 2004, was $109.8
million, up $5.3 million or 5% from $104.5 million for the same period in 2003.
The increase in noninterest expense was due largely to increases in salaries and
employee benefits, occupancy expense, professional fees and outside services and
a $2.0 million goodwill impairment charge partially offset by decreases in loan
collection and OREO expenses and other operating expense. Salaries and employee
benefits increased $4.5 million primarily from increases in full-time-equivalent
employees and merit increases as well as an increase in medical insurance costs
and incentive compensation. Occupancy expense increased $0.6 million primarily
from branch expansion in the Albany and Binghamton markets. Professional fees
and outside services increased $0.7 million mainly from higher courier, legal
and audit costs. The $2.0 million goodwill impairment charge resulted from the
expected sale of the Company's broker/dealer subsidiary in the first quarter of
2005. Loan collection and OREO costs decreased $0.6 million from a decrease in
OREO expenses resulting from a decline in the number of OREO properties under
management as OREO totaled $0.4 million at December 31, 2004, compared to $1.2
million at December 31, 2003. Other operating expense decreased $1.3 million
primarily from the reversal of a previously accrued $1.4 million liability that
was determined in the fourth quarter of 2004 to no longer be required.
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Noninterest expense for the quarter ended December 31, 2004, was $29.4
million, up $2.6 million or 10% from $26.8 million for the same period in 2003.
The increase in noninterest expense resulted principally from increases in
salaries and benefits of $1.7 million and the previously mentioned $2.0 million
goodwill impairment charge offset by an $0.8 million decrease in other operating
expense. The increase in salaries and benefits was driven primarily by higher
salaries expense resulting from an increase in full-time-equivalent employees
and merit increases as well as increases in medical insurance and retirement
expense. The decrease in other operating expense resulted from the previously
mentioned reversal of a previously accrued $1.4 million liability that was
determined to no longer be required.
INCOME TAXES
Income tax expense for the quarter ended December 31, 2004, was $4.4
million, down $1.1 million from the $5.5 million recorded during the same period
in 2003. The effective rate for the quarter ended December 31, 2004, was 25.8%,
down from 31.4% for the same period in 2003. The decrease in tax expense and the
effective tax rate for the quarter ended December 31, 2004, was due to the
reversal of a previously accrued $0.8 million liability that was determined to
no longer be required.
BALANCE SHEET
Total assets were $4.2 billion at December 31, 2004 up $0.2 billion from
$4.0 billion at December 31, 2003. Loans and leases increased $0.2 billion or 9%
from $2.6 billion at December 31, 2003 to $2.9 billion at December 31, 2004.
Loan growth was driven predominantly by consumer loans and commercial loans.
Total deposits were $3.1 billion at December 31, 2004, up $0.1 billion from $3.0
billion at December 31, 2003. Core deposits, which include checking, savings and
money market accounts increased $0.1 billion or 3% from $1.9 billion at December
31, 2003 to $2.0 billion at December 31, 2004. Meanwhile, average core deposits
for the year ended December 31, 2004 increased 12% to $2.0 billion from $1.8
billion for the same period in 2003. Stockholders' equity was $332.2 million
representing a Tier 1 leverage ratio of 7.13% at December 31, 2004 compared with
$310.0 million or a Tier 1 leverage ratio of 6.76% at December 31, 2003.
DIVIDEND DECLARED
The NBT Board of Directors declared a quarterly cash dividend of $0.19 per
share at a meeting held today. The dividend will be paid on March 15, 2005, to
shareholders of record as of March 1, 2005.
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OTHER MATTERS
NBT announced today that it has acquired EPIC Advisors, Inc. ("EPIC"),
effective January 21, 2005. EPIC, located in Rochester, NY, is engaged primarily
in the administration of corporate pension and 401 (k) plans. NBT President
Martin A. Dietrich stated, "EPIC is a growing, well-managed firm with a great
group of employees and the right customer base for us. The acquisition of EPIC
will allow us to offer our Trust customers additional services from a quality
firm. EPIC will play an important role in diversifying our revenue channels and
strengthening our position as a full-service financial resource provider for our
customers." NBT also announced today that it has entered into a definitive
agreement to sell its broker-dealer subsidiary, M. Griffith, Inc. The sale is
expected to be completed during the first quarter of 2005.
STOCK BUYBACK
NBT announced today that the NBT Board of Directors authorized a new
repurchase program whereby NBT intends to repurchase up to an additional
1,500,000 shares (approximately 5%) of its outstanding common stock from time to
time as market conditions warrant in open market and privately negotiated
transactions. Currently, there are 719,800 shares remaining under a previous
authorization that will be superseded by the new repurchase program. 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. The Company repurchased a total of 423,989 shares in the year
ended December 31, 2004, at an average price of $21.58 per share. Total cash
paid for these repurchases was $9.1 million. Total shares outstanding at
December 31, 2004 were 32.9 million shares, compared to 32.8 million shares at
December 31, 2003.
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CORPORATE OVERVIEW
NBT is a financial services holding company headquartered in Norwich, NY,
with total assets of $4.2 billion at December 31, 2004. The Company primarily
operates through NBT Bank, N.A., a full-service community bank with two
divisions and through a financial services company. NBT Bank, N.A. has 114
locations, including 73 NBT Bank offices in upstate New York and 41 Pennstar
Bank offices in northeastern Pennsylvania. More information about NBT and its
banking divisions can be found on the Internet at www.nbtbancorp.com,
------------------
www.nbtbank.com, and www.pennstarbank.com.
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FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. These
forward-looking statements involve risks and uncertainties and are based on the
beliefs and assumptions of the management of NBT Bancorp and its subsidiaries
and on the information available to management at the time that these statements
were made. There are a number of factors, many of which are beyond NBT's
control, that could cause actual conditions, events or results to differ
significantly from those described in the forward-looking statements. Factors
that may cause actual results to differ materially from those contemplated by
such forward-looking statements include, among others, the following
possibilities: (1) competitive pressures among depository and other financial
institutions may increase significantly; (2) revenues may be lower than
expected; (3) changes in the interest rate environment may reduce interest
margins; (4) general economic conditions, either nationally or regionally, may
be less favorable than expected, resulting in, among other things, a
deterioration in credit quality and/or a reduced demand for credit; (5)
legislative or regulatory changes, including changes in accounting standards and
tax laws, may adversely affect the businesses in which NBT is engaged; (6)
competitors may have greater financial resources and develop products that
enable such competitors to compete more successfully than NBT; and (7) adverse
changes may occur in the securities markets or with respect to inflation.
Forward-looking statements speak only as of the date they are made. Except as
required by law, NBT does not undertake to update forward-looking statements to
reflect subsequent circumstances or events.
FINANCIAL TABLES APPEAR ON FOLLOWING PAGES (7-11).
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NBT BANCORP INC.
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
NET PERCENT
2004 2003 CHANGE CHANGE
------------------------ ------------------ ------------------ -----------
(dollars in thousands, except share
and per share data)
THREE MONTHS ENDED DECEMBER 31,
Net Income $ 12,491 $ 11,882 $ 609 5%
Diluted Earnings Per Share $ 0.38 $ 0.36 $ 0.02 6%
Weighted Average Diluted
Common Shares Outstanding 33,155,085 33,070,298 84,787 0%
Return on Average Assets 1.18% 1.17% 0.01% 1%
Return on Average Equity 15.08% 15.47% -0.39% -3%
Net Interest Margin 4.03% 4.07% -0.04% -1%
=============================================================================================================================
TWELVE MONTHS ENDED DECEMBER 31,
Net Income $ 50,047 $ 47,104 $ 2,943 6%
Diluted Earnings Per Share $ 1.51 $ 1.43 $ 0.08 6%
Weighted Average Diluted
Common Shares Outstanding 33,086,716 32,843,582 243,134 1%
Return on Average Assets 1.21% 1.22% -0.01% -1%
Return on Average Equity 15.69% 15.90% -0.21% -1%
Net Interest Margin 4.03% 4.16% -0.13% -3%
=============================================================================================================================
ASSET QUALITY DECEMBER 31, December 31,
2004 2003
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Nonaccrual Loans $ 14,991 $ 13,861
90 Days Past Due and Still Accruing $ 1,186 $ 968
Total Nonperforming Loans $ 16,177 $ 14,829
Other Real Estate Owned (OREO) $ 428 $ 1,157
Total Nonperforming Loans and OREO $ 16,605 $ 15,986
Nonperforming Securities $ 0 $ 395
Total Nonperforming Assets $ 16,605 $ 16,381
Allowance for Loan and Lease Losses $ 44,932 $ 42,651
Year-to-Date (YTD) Net Charge-Offs $ 7,334 $ 6,627
Allowance to Loans and Leases 1.57% 1.62%
Total Nonperforming Loans to Loans and Leases 0.56% 0.56%
Total Nonperforming Assets to Assets 0.39% 0.40%
Allowance to Nonperforming Loans 277.75% 287.62%
Annualized Net Charge-Offs to
YTD Average Loans and Leases 0.27% 0.27%
=============================================================================================================================
CAPITAL
Equity to Assets 7.89% 7.66%
Book Value Per Share $ 10.11 $ 9.46
Tangible Book Value Per Share $ 8.66 $ 7.94
Tier 1 Leverage Ratio 7.13% 6.76%
Tier 1 Capital Ratio 9.78% 9.96%
Total Risk-Based Capital Ratio 11.04% 11.21%
=============================================================================================================================
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QUARTERLY COMMON STOCK PRICE 2004 2003 2002
Quarter End High Low High Low High Low
---------------- ------------------ ------------------
March 31 $23.00 $21.21 $ 18.60 $16.76 $ 15.15 $13.15
June 30 $23.18 $19.92 19.94 17.37 19.32 14.00
September 30 $24.34 $21.02 21.76 19.24 18.50 16.36
December 31 $26.84 $21.94 22.78 19.50 18.60 14.76
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NBT BANCORP INC.
SELECTED FINANCIAL HIGHLIGHTS
(UNAUDITED)
Net Percent
2004 2003 Change Change
-------------------- ------------------- ----------- -----------
(dollars in thousands, except share
and per share data)
BALANCE SHEET AS OF DECEMBER 31,
Loans $ 2,869,921 $ 2,639,976 $ 229,945 9%
Earning Assets $ 3,940,565 $ 3,741,131 $ 199,434 5%
Total Assets $ 4,212,304 $ 4,046,885 $ 165,419 4%
Deposits $ 3,073,838 $ 3,001,351 $ 72,487 2%
Stockholders' Equity $ 332,233 $ 310,034 $ 22,199 7%
==========================================================================================================================
AVERAGE BALANCES
QUARTER ENDED DECEMBER 31,
Loans $ 2,843,841 $ 2,597,259 $ 246,582 9%
Securities AFS (excluding unrealized gains or losses) $ 956,183 $ 1,018,157 ($61,974) -6%
Securities HTM $ 81,152 $ 95,581 ($14,429) -15%
Regulatory Equity Investment $ 34,920 $ 35,383 ($463) -1%
Short-Term Interest Bearing Accounts $ 7,419 $ 2,321 $ 5,098 220%
Total Earning Assets $ 3,923,514 $ 3,748,701 $ 174,813 5%
Total Assets $ 4,206,900 $ 4,032,250 $ 174,650 4%
Interest Bearing Deposits $ 2,593,393 $ 2,485,494 $ 107,899 4%
Non-Interest Bearing Deposits $ 513,795 $ 480,141 $ 33,654 7%
Short-Term Borrowings $ 299,372 $ 324,737 ($25,365) -8%
Long-Term Borrowings $ 413,255 $ 369,712 $ 43,543 12%
Total Interest Bearing Liabilities $ 3,306,021 $ 3,179,943 $ 126,078 4%
Stockholders' Equity $ 329,543 $ 304,915 $ 24,628 8%
==========================================================================================================================
AVERAGE BALANCES
YEAR ENDED DECEMBER 31,
Loans $ 2,743,753 $ 2,474,899 $ 268,854 11%
Securities AFS (excluding unrealized gains or losses) $ 970,024 $ 984,620 ($14,596) -1%
Securities HTM $ 85,771 $ 90,601 ($4,830) -5%
Regulatory Equity Investment $ 34,813 $ 28,117 $ 6,696 24%
Short-Term Interest Bearing Accounts $ 7,538 $ 3,358 $ 4,180 124%
Total Earning Assets $ 3,841,944 $ 3,581,595 $ 260,349 7%
Total Assets $ 4,120,547 $ 3,852,523 $ 268,024 7%
Interest Bearing Deposits $ 2,555,384 $ 2,483,026 $ 72,358 3%
Non-Interest Bearing Deposits $ 492,746 $ 457,238 $ 35,508 8%
Short-Term Borrowings $ 302,276 $ 190,332 $ 111,944 59%
Long-Term Borrowings $ 400,053 $ 360,928 $ 39,125 11%
Total Interest Bearing Liabilities $ 3,257,713 $ 3,034,286 $ 223,427 7%
Stockholders' Equity $ 318,901 $ 296,276 $ 22,625 8%
==========================================================================================================================
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NBT BANCORP INC. AND SUBSIDIARIES DECEMBER 31, December 31,
CONSOLIDATED BALANCE SHEETS 2004 2003
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(in thousands) (UNAUDITED)
ASSETS
Cash and due from banks $ 98,437 $ 125,590
Short term interest bearing accounts 8,286 2,502
Securities available for sale, at fair value 952,542 980,961
Securities held to maturity (fair value of $82,712 and $98,576 81,782 97,204
at December 31, 2004 and December 31, 2003 respectively)
Federal Reserve and Federal Home Loan Bank stock 36,842 34,043
Loans and leases 2,869,921 2,639,976
Less allowance for loan and lease losses 44,932 42,651
==============================================================================================
Net loans and leases 2,824,989 2,597,325
Premises and equipment, net 63,743 62,443
Goodwill 45,570 47,521
Intangible assets, net 2,013 2,331
Bank owned life insurance 32,302 30,815
Other assets 65,798 66,150
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TOTAL ASSETS $ 4,212,304 $ 4,046,885
==============================================================================================
LIABILITIES, GUARANTEED PREFERRED BENEFICIAL
INTERESTS IN COMPANY'S JUNIOR SUBORDINATE
DEBENTURES AND CAPITAL
Deposits:
Demand (noninterest bearing) $ 520,218 $ 500,303
Savings, NOW, and money market 1,435,561 1,401,825
Time 1,118,059 1,099,223
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Total deposits 3,073,838 3,001,351
Short-term borrowings 338,823 302,931
Long-term debt 394,523 369,700
Trust preferred debentures 18,720 -
Other liabilities 54,167 45,869
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Total liabilities 3,880,071 3,719,851
Guaranteed preferred beneficial interests in
Company's junior subordinated debentures - 17,000
Total stockholders' equity 332,233 310,034
==============================================================================================
TOTAL LIABILITIES, GUARANTEED PREFERRED
BENEFICIAL INTERESTS IN COMPANY'S JUNIOR
SUBORDINATE DEBENTURES AND CAPITAL $ 4,212,304 $ 4,046,885
==============================================================================================
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Three months ended Twelve months ended
NBT BANCORP INC. AND SUBSIDIARIES December 31, December 31,
CONSOLIDATED STATEMENTS OF INCOME 2004 2003 2004 2003
- --------------------------------- -------- -------- -------- --------
(in thousands, except per share data) (Unaudited)
INTEREST, FEE AND DIVIDEND INCOME:
Loans and leases $ 42,983 $ 40,082 $163,795 $159,118
Securities available for sale 10,398 11,311 42,264 43,851
Securities held to maturity 761 805 3,044 3,391
Other 279 84 1,076 938
- ------------------------------------------------------------- -------- -------- -------- --------
Total interest, fee and dividend income 54,421 52,282 210,179 207,298
- ------------------------------------------------------------- -------- -------- -------- --------
INTEREST EXPENSE:
Deposits 10,299 10,369 39,761 45,941
Short-term borrowings 1,307 808 4,086 2,171
Long-term debt 3,919 3,780 15,022 14,762
Trust preferred debentures 235 - 823 -
- ------------------------------------------------------------- -------- -------- -------- --------
Total interest expense 15,760 14,957 59,692 62,874
- ------------------------------------------------------------- -------- -------- -------- --------
Net interest income 38,661 37,325 150,487 144,424
Provision for loan and lease losses 2,750 3,322 9,615 9,111
- ------------------------------------------------------------- -------- -------- -------- --------
Net interest income after provision for loan and lease losses 35,911 34,003 140,872 135,313
- ------------------------------------------------------------- -------- -------- -------- --------
NONINTEREST INCOME:
Trust 1,174 1,075 4,605 4,041
Service charges on deposit accounts 4,184 4,302 16,470 15,833
Broker/dealer and insurance revenue 1,572 1,964 6,782 6,869
Net securities gains 160 92 216 175
Bank owned life insurance income 345 403 1,487 815
Other 2,905 2,288 11,329 10,045
- ------------------------------------------------------------- -------- -------- -------- --------
Total noninterest income 10,340 10,124 40,889 37,778
- ------------------------------------------------------------- -------- -------- -------- --------
NONINTEREST EXPENSE:
Salaries and employee benefits 14,063 12,355 54,063 49,560
Office supplies and postage 1,118 1,028 4,459 4,216
Occupancy 2,416 2,477 9,905 9,328
Equipment 1,998 2,008 7,573 7,627
Professional fees and outside services 1,583 1,470 6,175 5,433
Data processing and communications 2,740 2,671 10,972 10,752
Capital securities - 181 - 732
Amortization of intangible assets 71 145 284 620
Loan collection and other real estate owned 431 636 1,241 1,840
Goodwill impairment 1,950 - 1,950 -
Other operating 3,037 3,823 13,155 14,409
- ------------------------------------------------------------- -------- -------- -------- --------
Total noninterest expense 29,407 26,794 109,777 104,517
- ------------------------------------------------------------- -------- -------- -------- --------
Income before income taxes 16,844 17,333 71,984 68,574
Income taxes 4,353 5,451 21,937 21,470
- ------------------------------------------------------------- -------- -------- -------- --------
NET INCOME $ 12,491 $ 11,882 $ 50,047 $ 47,104
============================================================= ======== ======== ======== ========
Earnings Per Share:
Basic $ 0.38 $ 0.36 $ 1.53 $ 1.45
Diluted $ 0.38 $ 0.36 $ 1.51 $ 1.43
============================================================= ======== ======== ======== ========
Page 11 of 11
NBT BANCORP INC. AND SUBSIDIARIES 4Q 3Q 2Q 1Q 4Q
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME 2004 2004 2004 2004 2003
- ------------------------------------------- ------- ------- ------- ------- -------
(in thousands, except per share data) (Unaudited)
INTEREST, FEE AND DIVIDEND INCOME:
Loans $42,983 $41,283 $39,635 $39,894 $40,082
Securities available for sale 10,398 10,784 10,313 10,769 11,311
Securities held to maturity 761 731 755 797 805
Other 279 295 235 267 84
- ----------------------------------------------------------------------------------------------------------
Total interest, fee and dividend income 54,421 53,093 50,938 51,727 52,282
- ----------------------------------------------------------------------------------------------------------
INTEREST EXPENSE:
Deposits 10,299 9,743 9,674 10,045 10,369
Short-term borrowings 1,307 1,192 794 793 808
Long-term debt 3,919 3,861 3,627 3,615 3,780
Trust preferred debentures 235 245 163 180 -
- ----------------------------------------------------------------------------------------------------------
Total interest expense 15,760 15,041 14,258 14,633 14,957
- ----------------------------------------------------------------------------------------------------------
Net interest income 38,661 38,052 36,680 37,094 37,325
Provision for loan and lease losses 2,750 2,313 2,428 2,124 3,322
- ----------------------------------------------------------------------------------------------------------
Net interest income after provision for loan and lease losses 35,911 35,739 34,252 34,970 34,003
- ----------------------------------------------------------------------------------------------------------
NONINTEREST INCOME:
Trust 1,174 1,182 1,142 1,107 1,075
Service charges on deposit accounts 4,184 4,159 4,090 4,037 4,302
Broker/dealer and insurance fees 1,572 1,696 1,783 1,731 1,964
Net securities gains 160 18 29 9 92
Bank owned life insurance income 345 348 409 385 403
Other 2,905 2,714 2,536 3,174 2,288
- ----------------------------------------------------------------------------------------------------------
Total noninterest income 10,340 10,117 9,989 10,443 10,124
- ----------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE:
Salaries and employee benefits 14,063 13,345 12,542 14,113 12,355
Office supplies and postage 1,118 1,167 1,143 1,031 1,028
Occupancy 2,416 2,445 2,446 2,598 2,477
Equipment 1,998 1,941 1,781 1,853 2,008
Professional fees and outside services 1,583 1,536 1,424 1,632 1,470
Data processing and communications 2,740 2,688 2,852 2,692 2,671
Capital securities - - - - 181
Amortization of intangible assets 71 71 71 71 145
Loan collection and other real estate owned 431 339 99 372 636
Goodwill impairment 1,950 - - - -
Other operating 3,037 3,773 3,505 2,840 3,823
- ----------------------------------------------------------------------------------------------------------
Total noninterest expense 29,407 27,305 25,863 27,202 26,794
- ----------------------------------------------------------------------------------------------------------
Income before income taxes 16,844 18,551 18,378 18,211 17,333
Income taxes 4,353 5,934 5,810 5,840 5,451
- ----------------------------------------------------------------------------------------------------------
NET INCOME $12,491 $12,617 $12,568 $12,371 $11,882
==========================================================================================================
Earnings per share:
Basic $ 0.38 $ 0.38 $ 0.38 $ 0.38 $ 0.36
Diluted $ 0.38 $ 0.38 $ 0.38 $ 0.37 $ 0.36
==========================================================================================================