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NBT Bancorp Inc. Announces Second Quarter Diluted Earnings Per Share of $0.40; Strong Loan Growth and Completion of Acquisition

NORWICH, N.Y., July 23, 2012 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (NBT) (Nasdaq:NBTB) reported today net income for the six months ended June 30, 2012 was $26.9 million, down $2.1 million, or 7.1%, from the six months ended June 30, 2011. Net income per diluted share for the six months ended June 30, 2012 was $0.80 per share, down from $0.84 per diluted share for the six months ended June 30, 2011. The Company incurred approximately $1.3 million in merger related expenses for the first six months of 2012, which had a negative impact on diluted earnings per share of approximately $0.03. Annualized return on average assets and return on average equity were 0.94% and 9.89%, respectively, for the six months ended June 30, 2012, compared with 1.08% and 10.82%, respectively, for the six months ended June 30, 2011. Net interest margin (on a fully taxable equivalent or FTE basis) was 3.86% for the six months ended June 30, 2012, down 26 basis points from 4.12% for the six months ended June 30, 2011.

Net income for the three months ended June 30, 2012 was $13.3 million, down $1.4 million, or 9.5%, from the three months ended June 30, 2011. Net income per diluted share for the three months ended June 30, 2012 was $0.40 per share, down from $0.43 per diluted share for the three months ended June 30, 2011. The Company incurred approximately $0.8 million in merger related expenses for the three months ended June 30, 2012, which had a negative impact on diluted earnings per share of approximately $0.02. Annualized return on average assets and return on average equity were 0.92% and 9.66%, respectively, for the three months ended June 30, 2012, compared with 1.09% and 10.86%, respectively, for the three months ended June 30, 2011. FTE net interest margin was 3.82% for the three months ended June 30, 2012, down 31 basis points from 4.13% for the three months ended June 30, 2011.

Selected highlights for the second quarter of 2012 include:

  • Outstanding loan balances as of June 30, 2012 are up $361.0 million from December 31, 2011 driven by:
  • 7.5% organic loan growth (annualized)
  • Approximately $217 million in loans from the Hampshire First acquisition
  • Net interest margin was 3.82% for the second quarter, down 8 basis points on a linked quarter basis, resulting from the continued impact of the low rate environment on loans and investments.
  • Annualized net charge-off ratio was 0.48% as compared to 0.60% for the same period last year.
  • Past due loans to total loans was 0.54% as of June 30, 2012, compared to 0.89% at December 31, 2011.
  • Continued strategic expansion with the completion of the acquisition of Hampshire First Bank on June 8, 2012. The Company now operates 5 branches in southern New Hampshire.

"During the second quarter we continued to demonstrate commitment to strategic investment in our company's future with extension of our footprint into a fifth state through the successful acquisition of Hampshire First Bank in southern New Hampshire," said NBT President and CEO Martin Dietrich. "We are also encouraged by our strong loan growth during the first half of 2012, both organic and from our acquisition of Hampshire First Bank. Organic loan growth was spurred by strong commercial and consumer loan originations in our legacy markets, particularly our upstate New York footprint, as well as from our recent expansion into new markets such as Vermont. The economic and regulatory environment continues to present challenges, but we remain focused on the fundamentals of banking and customer service as our community-minded team works to meet the needs of our customers."

Loan and Lease Quality and Provision for Loan and Lease Losses

The Company recorded a provision for loan and lease losses of $8.6 million during the six months ended June 30, 2012, compared with $10.0 million for the six months ended June 30, 2011. Net charge-offs were $9.2 million for the six months ended June 30, 2012, down from $10.7 million for the same period in 2011, due primarily to the charge-off of one large commercial loan during the first quarter of 2011, as well as the general improvement in asset quality indicators. The annualized net charge-off ratio for the six months ended June 30, 2012 was 0.48%, compared to 0.60% for the six months ended June 30, 2011.

The Company recorded a provision for loan and lease losses of $4.1 million during the three months ended June 30, 2012, compared with $6.0 million for the three months ended June 30, 2011. Net charge-offs were $4.7 million for the three months ended June 30, 2012, down from $5.5 million for the same period in 2011, due primarily to the general improvement in asset quality indicators. The annualized net charge-off ratio for the three months ended June 30, 2012 was 0.48%, compared to 0.60% for the three months ended June 30, 2011.

Past due loans as a percentage of total loans was 0.54% at June 30, 2012, compared with 0.58% at March 31, 2012. Nonperforming loans decreased to $45.6 million or 1.09% of total loans and leases at June 30, 2012, compared with $45.9 million or 1.20% at March 31, 2012.

The allowance for loan and lease losses totaled $70.7 million at June 30, 2012, compared to $71.3 million at March 31, 2012. Improvement in the asset quality indicators noted above resulted in a reduction in the allowance, partially offset by reserves provided for the aforementioned loan growth. The allowance for loan losses as a percentage of loans and leases was 1.70% at June 30, 2012, compared to 1.87% at March 31, 2012. This reduction was due primarily to the addition of the Hampshire First loans that were recorded at fair value at acquisition. As acquired loans do not have a related allowance recorded, this resulted in a decrease of 11 basis points in the allowance for loan losses as a percentage of total loans as of June 30, 2012.

Net Interest Income

Net interest income was down slightly to $99.1 million for the six months ended June 30, 2012, compared with $99.4 million for the six months ended June 30, 2011. The Company's FTE net interest margin was 3.86% for the six months ended June 30, 2012, down from 4.12% for the six months ended June 30, 2011. The increase in average earning assets for the six months ended June 30, 2012, compared to the same period of 2011 offset the decline in net interest margin, resulting in a relatively flat net interest income for the periods.

While the yield on interest bearing liabilities decreased 19 basis points, the yield on interest earning assets declined 42 basis points, resulting in margin compression for the six months ended June 30, 2012, compared to the same period for 2011. The yield on securities available for sale was 2.57% for the six months ended June 30, 2012, compared with 3.12% for the six months ended June 30, 2011. This decrease was due primarily to the reinvestment of cash flows from maturing securities and cash received from branch acquisitions in 2011 and the first quarter of 2012 into lower yielding securities in the current rate environment. The average balance of securities available for sale for the six months ended June 30, 2012 was $1.2 billion, up approximately $112.1 million, or 10.2%, from the six months ended June 30, 2011. This increase was due primarily to reinvestment of maturing held to maturity securities into available for sale securities, and investment of liquidity from branch acquisition activity and deposit growth into available for sale securities. The yield on loans and leases was 5.25% for the six months ended June 30, 2012, compared with 5.69% for the six months ended June 30, 2011. The average balance of loans and leases for the six months ended June 30, 2012 was $3.9 billion, up approximately $241.7 million, or 6.7%, from the six months ended June 30, 2011. The reduction in yields on earning assets was partially offset by a reduction in rates paid on interest bearing liabilities. The rate on time deposits was 1.58% for the six months ended June 30, 2012, compared with 1.87% for the six months ended June 30, 2011. The rate on money market deposit accounts was 0.21% for the six months ended June 30, 2012, compared with 0.39% for the six months ended June 30, 2011.

Net interest income was down slightly to $49.8 million for the three months ended June 30, 2012, compared with $50.2 million for the three months ended June 30, 2011. The Company's FTE net interest margin was 3.82% for the three months ended June 30, 2012, down from 4.13% for the three months ended June 30, 2011. The increase in average earning assets for the three months ended June 30, 2012 as compared to the same period of 2011 offset the decline in net interest margin, resulting in a relatively flat net interest income for the periods.

While the yield on interest bearing liabilities decreased 17 basis points, the yield on interest earning assets declined 45 basis points, resulting in margin compression for the three months ended June 30, 2012, compared to the same period for 2011. The yield on securities available for sale was 2.53% for the three months ended June 30, 2012, as compared with 3.11% for the three months ended June 30, 2011. This decrease was due primarily to the reinvestment of cash flows from maturing securities and cash received from branch acquisitions into lower yielding securities in the current rate environment. The average balance of securities available for sale for the three months ended June 30, 2012 was $1.2 billion, up approximately $109.4 million, or 10.0%, from the three months ended June 30, 2011. This increase was due primarily to reinvestment of maturing held to maturity securities into available for sale securities, and investment of liquidity from branch acquisition activity and deposit growth into available for sale securities. The yield on loans and leases was 5.18% for the three months ended June 30, 2012, compared with 5.65% for the three months ended June 30, 2011. The average balance of loans and leases for the three months ended June 30, 2012 was $3.9 billion, up approximately $290.2 million, or 8.0%, from the three months ended June 30, 2011. The reduction in yields on earning assets was partially offset by a reduction in rates paid on interest bearing liabilities. The rate on time deposits was 1.52% for the three months ended June 30, 2012, compared with 1.85% for the three months ended June 30, 2011. The rate on money market deposit accounts was 0.19% for the three months ended June 30, 2012, compared with 0.37% for the three months ended June 30, 2011.

Noninterest Income

Noninterest income for the six months ended June 30, 2012 was $43.7 million, up 9.4% or $3.7 million, compared with $40.0 million for the same period in 2011. Insurance and other financial services revenue increased approximately $0.6 million for the six months ended June 30, 2012, compared to the six months ended June 30, 2011. This increase was due primarily to the acquisition of an insurance agency during the second quarter of 2011 and an increase in brokerage commission revenue from new business. ATM and debit card fees increased approximately $0.4 million for the six months ended June 30, 2012, compared to the six months ended June 30, 2011, due primarily to an increase in card usage. Other noninterest income increased approximately $3.5 million for the six months ended June 30, 2012 as compared to June 30, 2011. This increase was due primarily to a $1.1 million payoff gain on a purchased commercial real estate loan, as well as a prepayment penalty fee collected of $0.8 million during the six months ended June 30, 2012 related to a previously disclosed loss of a retirement plan client. In addition, mortgage banking revenue increased approximately $1.1 million for the six months ended June 30, 2012 as compared to the same period in 2011 as the Company sold certain residential mortgages as market conditions warranted. The Company also realized net securities gains of approximately $0.6 million during the six months ended June 30, 2012. These increases were partially offset by a decrease in service charges on deposit accounts of approximately $1.6 million, or 15.3%, for the six months ended June 30, 2012, compared with the same period in 2011 primarily due to a decrease in overdraft fee income.

Noninterest income for the three months ended June 30, 2012 was $20.7 million, up 4.1% or $0.8 million, compared with $19.9 million for the same period in 2011. Insurance and other financial services revenue increased approximately $0.3 million for the three months ended June 30, 2012, compared to the three months ended June 30, 2011. This increase was due primarily to the acquisition of an insurance agency in May 2011. Other noninterest income increased approximately $1.1 million for the three months ended June 30, 2012 as compared to the three months ended June 30, 2011. This increase was due primarily to an increase in mortgage banking activity during the three months ended June 30, 2012 as compared with the three months ended June 30, 2011. These increases were partially offset by a decrease in service charges on deposit accounts of approximately $0.9 million, or 16.2%, for the three months ended June 30, 2012, compared with the same period in 2011 primarily due to the aforementioned decrease in overdraft fee income.

Noninterest Expense and Income Tax Expense

Noninterest expense for the six months ended June 30, 2012 was $95.9 million, up $7.6 million or 8.7%, for the same period in 2011. Salaries and employee benefits increased $2.7 million, or 5.5%, for the six months ended June 30, 2012, compared with the same period in 2011. This increase was due primarily to increases in full-time-equivalent employees from acquisitions, merit increases, and increased pension expenses. Professional fees and outside services increased $1.0 million, or 23.1%, for the six months ended June 30, 2012 as compared to the same period in 2011. Data processing and communications expenses increased approximately $0.7 million, or 10.9%, for the six months ended June 30, 2012 as compared to the same period in 2011, due primarily to expansion into the new markets. Merger related expenses totaled $1.3 million in the first six months of 2012, which also contributed to the increase in noninterest expense for the period. These increases were partially offset by a decrease in Federal Deposit Insurance Corporation ("FDIC") expenses of approximately $0.6 million for the six months ended June 30, 2012 as compared to the six months ended June 30, 2011. This decrease was due to the FDIC redefining the deposit insurance assessment base effective the second quarter of 2011. Income tax expense for the six month period ended June 30, 2012 was $11.5 million, down from $12.2 million for the same period in 2011. The effective tax rate was 30.0% for the six months ended June 30, 2012, compared to 29.7% for the same period in 2011.

Noninterest expense for the three months ended June 30, 2012 was $47.4 million, up $4.2 million or 9.8%, for the same period in 2011. Salaries and employee benefits increased $1.0 million, or 4.0%, for the three months ended June 30, 2012, compared with the same period in 2011. This increase was due primarily to increases in full-time-equivalent employees from acquisitions, merit increases, and increased pension expenses. Data processing and communications expenses increased approximately $0.3 million, or 10.1%, for the three months ended June 30, 2012 as compared to the same period in 2011, due primarily to expansion into the new markets. Loan collection and other real estate owned expenses increased $0.4 million for the three months ended June 30, 2012 as compared to the same period in 2011. Merger related expenses totaled $0.8 million for the three months ended June 30, 2012, which also contributed to the increase in noninterest expense for the period. Income tax expense for the three month period ended June 30, 2012 was $5.7 million, down from $6.2 million for the same period in 2011. The effective tax rate was 30.0% for the three months ended June 30, 2012, compared to 29.7% for the same period in 2011.

Balance Sheet

Total assets were $6.0 billion at June 30, 2012, up $369.2 million or 6.6% from December 31, 2011. Loans and leases were $4.2 billion at June 30, 2012, up $361.0 million from December 31, 2011. Total deposits were $4.7 billion at June 30, 2012, up $321.8 million from December 31, 2011. Stockholders' equity was $566.5 million, representing a total equity-to-total assets ratio of 9.49% at June 30, 2012, compared with $538.1 million or a total equity-to-total assets ratio of 9.61% at December 31, 2011.

Stock Repurchase Program

Under previously disclosed stock repurchase plans, the Company purchased 769,568 shares of its common stock during the six month period ended June 30, 2012, for a total of $15.5 million at an average price of $20.13 per share. At June 30, 2012, there were 748,013 shares available for repurchase under a previously disclosed repurchase plan, which expires on December 31, 2013.

Dividend

The NBT Board of Directors declared a 2012 third-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on September 15, 2012 to shareholders of record as of September 1, 2012.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $6.0 billion at June 30, 2012. The company primarily operates through NBT Bank, N.A., a full-service community bank with three divisions, and through two financial services companies. NBT Bank, N.A. has 137 locations, including 97 NBT Bank offices in upstate New York, northwestern Vermont and western Massachusetts, 35 Pennstar Bank offices in northeastern Pennsylvania, and 5 Hampshire First Bank offices in southern New Hampshire. EPIC Advisors, Inc., based in Rochester, N.Y., is a full-service 401(k) plan recordkeeping firm. Mang Insurance Agency, LLC, based in Norwich, N.Y., is a full-service insurance agency. More information about NBT and its divisions can be found on the Internet at: www.nbtbancorp.com, www.nbtbank.com, www.pennstarbank.com, www.hampshirefirst.com, www.epic1st.com and www.manginsurance.com.

Forward-Looking Statements

This news release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of NBT Bancorp and its subsidiaries and on the information available to management at the time that these statements were made. There are a number of factors, many of which are beyond NBT's control, that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which NBT is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than NBT; and (7) adverse changes may occur in the securities markets or with respect to inflation. Forward-looking statements speak only as of the date they are made. Except as required by law, NBT does not update forward-looking statements to reflect subsequent circumstances or events.

       
       
  NBT Bancorp Inc. and Subsidiaries    
  SELECTED FINANCIAL HIGHLIGHTS    
  (unaudited)    
       Net Percent
  2012 2011 Change Change
  (dollars in thousands, except per share data)    
         
Three Months Ended June 30,        
Net Income $13,257 $14,655 ($1,398) -10%
Diluted Earnings Per Share $0.40 $0.43 ($0.03) -7%
Weighted Average Diluted         
Common Shares Outstanding 33,492,659 34,319,665 (827,006) -2%
Return on Average Assets (1) 0.92% 1.09% -17 bp -16%
Return on Average Equity (1) 9.66% 10.86% -120 bp -11%
Net Interest Margin (2) 3.82% 4.13% -31 bp -8%
         
Six Months Ended June 30,        
Net Income $26,907 $28,962 ($2,055) -7%
Diluted Earnings Per Share $0.80 $0.84 ($0.04) -5%
Weighted Average Diluted         
Common Shares Outstanding 33,452,970 34,491,627 (1,038,657) -3%
Return on Average Assets (1) 0.94% 1.08% -14 bp -13%
Return on Average Equity (1) 9.89% 10.82% -93 bp -9%
Net Interest Margin (2) 3.86% 4.12% -26 bp -6%
         
         
Asset Quality  June 30, December 31,    
  2012 2011    
Nonaccrual Loans $43,924 $38,290    
90 Days Past Due and Still Accruing $1,629 $3,190    
Total Nonperforming Loans $45,553 $41,480    
Other Real Estate Owned $1,815 $2,160    
Total Nonperforming Assets $47,368 $43,640    
Allowance for Loan and Lease Losses $70,734 $71,334    
Allowance for Loan and Lease Losses to Total Loans and Leases 1.70% 1.88%    
Total Nonperforming Loans to Total Loans and Leases 1.09% 1.09%    
Total Nonperforming Assets to Total Assets 0.79% 0.78%    
Past Due Loans to Total Loans and Leases 0.54% 0.89%    
Allowance for Loan and Lease Losses to Total Nonperforming Loans 155.28% 171.97%    
Net Charge-Offs to YTD Average Loans and Leases (1) 0.48% 0.56%    
         
Capital        
Equity to Assets 9.49% 9.61%    
Book Value Per Share $16.79 $16.23    
Tangible Book Value Per Share $11.76 $11.70    
Tier 1 Leverage Ratio 8.59% 8.74%    
Tier 1 Capital Ratio 10.78% 11.56%    
Total Risk-Based Capital Ratio 12.03% 12.81%    
         
Quarterly Common Stock Price 2012 2011
Quarter End  High  Low  High  Low
March 31 $24.10 $20.75 $24.98 $21.55
June 30 $22.50 $19.19 $23.32 $20.62
September 30     $23.25 $17.05
December 31     $22.63 $17.47
         
(1)  Annualized        
(2)  Calculated on a FTE basis        
       
       
  NBT Bancorp Inc. and Subsidiaries    
  SELECTED FINANCIAL HIGHLIGHTS    
  (unaudited)    
         
  June 30, December 31,  Net Percent
  2012 2011 Change Change
  (dollars in thousands)    
Balance Sheet        
Loans and Leases $4,161,214 $3,800,203 $361,011 9%
Earning Assets $5,470,270 $5,112,831 $357,439 7%
Total Assets $5,967,568 $5,598,406 $369,162 7%
Deposits $4,688,907 $4,367,149 $321,758 7%
Stockholders' Equity $566,505 $538,110 $28,395 5%
         
  June 30, June 30,  Net  
  2012 2011 Change  
Average Balances  (dollars in thousands)    
Three Months Ended        
Loans and Leases $3,938,592 $3,648,343 $290,249  
Securities Available For Sale         
(excluding unrealized gains or losses) $1,208,384 $1,098,964 $109,420  
Securities Held To Maturity $68,472 $85,615 ($17,143)  
Trading Securities $3,725 $3,202 $523  
Regulatory Equity Investment $27,886 $27,071 $815  
Short-Term Interest Bearing Accounts $102,192 $128,799 ($26,607)  
Total Earning Assets $5,345,526 $4,988,792 $356,734  
Total Assets $5,810,584 $5,412,979 $397,605  
Interest Bearing Deposits $3,470,553 $3,290,469 $180,084  
Non-Interest Bearing Deposits $1,111,804 $932,066 $179,738  
Short-Term Borrowings  $171,545 $135,618 $35,927  
Long-Term Borrowings $443,673 $444,881 ($1,208)  
Total Interest Bearing Liabilities $4,085,771 $3,870,968 $214,803  
Stockholders' Equity $551,865 $541,349 $10,516  
         
Average Balances         
Six Months Ended        
Loans and Leases $3,874,027 $3,632,355 $241,672  
Securities Available For Sale         
(excluding unrealized gains or losses) $1,210,575 $1,098,506 $112,069  
Securities Held To Maturity $69,507 $89,833 ($20,326)  
Trading Securities $3,512 $3,086 $426  
Regulatory Equity Investment $27,453 $27,158 $295  
Short-Term Interest Bearing Accounts $91,159 $135,019 ($43,860)  
Total Earning Assets $5,272,721 $4,982,871 $289,850  
Total Assets $5,735,021 $5,405,062 $329,959  
Interest Bearing Deposits $3,426,578 $3,290,198 $136,380  
Non-Interest Bearing Deposits $1,087,180 $918,483 $168,697  
Short-Term Borrowings  $167,176 $144,447 $22,729  
Long-Term Borrowings $444,745 $445,139 ($394)  
Total Interest Bearing Liabilities $4,038,499 $3,879,784 $158,715  
Stockholders' Equity $547,246 $539,789 $7,457  
     
     
NBT Bancorp Inc. and Subsidiaries  June 30,  December 31, 
Consolidated Balance Sheets (unaudited) 2012 2011
(in thousands)    
     
ASSETS    
Cash and due from banks  $ 114,441  $ 128,517
Short term interest bearing accounts  24,723  864
Securities available for sale, at fair value   1,221,706  1,244,619
Securities held to maturity (fair value of $65,556 and $72,198 at June 30, 2012 and December 31, 2011, respectively)  64,387  70,811
Trading securities  3,641  3,062
Federal Reserve and Federal Home Loan Bank stock  28,706  27,020
Loans and leases  4,161,214  3,800,203
Less allowance for loan and lease losses  70,734  71,334
Net loans and leases 4,090,480 3,728,869
Premises and equipment, net  76,906  74,541
Goodwill  151,628  132,029
Intangible assets, net  18,191  18,194
Bank owned life insurance  79,215  77,626
Other assets  93,544  92,254
TOTAL ASSETS  $ 5,967,568  $ 5,598,406
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Deposits:    
Demand (noninterest bearing)  $ 1,152,646  $ 1,052,906
Savings, NOW, and money market  2,483,683  2,381,116
Time  1,052,578  933,127
Total deposits 4,688,907 4,367,149
Short-term borrowings  212,203  181,592
Long-term debt  367,147  370,344
Trust preferred debentures  75,422  75,422
Other liabilities  57,384  65,789
Total liabilities 5,401,063 5,060,296
     
     
Total stockholders' equity  566,505  538,110
     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 5,967,568  $ 5,598,406
     
     
  Three Months Ended Six Months Ended
NBT Bancorp Inc. and Subsidiaries  June 30,  June 30,
Consolidated Statements of Income (unaudited) 2012 2011 2012 2011
(in thousands, except per share data)    
Interest, fee and dividend income:        
Loans and leases  $ 50,509  $ 51,126  $ 100,717  $ 101,986
Securities available for sale 7,108  7,947 14,474  15,851
Securities held to maturity 617  745 1,257  1,545
Other 413  440 805  933
Total interest, fee and dividend income  58,647  60,258  117,253  120,315
Interest expense:        
Deposits 4,834  6,051 9,977  12,338
Short-term borrowings 48  52 89  110
Long-term debt 3,580  3,591 7,161  7,162
Trust preferred debentures 434  400 883  1,289
Total interest expense  8,896  10,094  18,110  20,899
Net interest income  49,751  50,164 99,143  99,416
Provision for loan and lease losses 4,103  6,021 8,574  9,986
Net interest income after provision for loan and lease losses  45,648  44,143  90,569  89,430
Noninterest income:        
Insurance and other financial services revenue 5,279  5,025 11,433  10,798
Service charges on deposit accounts 4,571  5,455 8,912  10,527
ATM and debit card fees 3,063  2,928 6,025  5,596
Retirement plan administration fees 2,411  2,268 4,744  4,439
Trust 2,312  2,258 4,441  4,294
Bank owned life insurance income 618  660 1,589  1,695
Net securities gains 97  59 552  86
Other 2,331  1,208 6,042  2,552
Total noninterest income  20,682  19,861  43,738  39,987
Noninterest expense:        
Salaries and employee benefits 24,992  24,035 51,717  49,039
Occupancy 4,222  3,987 8,713  8,509
Data processing and communications 3,431  3,117 6,689  6,031
Professional fees and outside services 2,388  2,088 5,113  4,154
Equipment 2,409  2,180 4,789  4,370
Office supplies and postage 1,574  1,342 3,245  2,887
FDIC expenses  942  965 1,873  2,461
Advertising  805  1,033 1,607  1,601
Amortization of intangible assets 841  771 1,660  1,504
Loan collection and other real estate owned 799  443 1,437  1,162
Merger  826  --  1,337  -- 
Other operating 4,161  3,196 7,684  6,500
Total noninterest expense 47,390 43,157 95,864 88,218
Income before income taxes 18,940 20,847 38,443 41,199
Income taxes 5,683  6,192 11,536  12,237
Net income  $ 13,257  $ 14,655  $ 26,907  $ 28,962
Earnings Per Share:        
Basic  $ 0.40  $ 0.43  $ 0.81  $ 0.85
Diluted  $ 0.40  $ 0.43  $ 0.80  $ 0.84
           
           
NBT Bancorp Inc. and Subsidiaries 2Q 1Q 4Q 3Q 2Q
Quarterly Consolidated Statements of Income (unaudited) 2012 2012 2011 2011 2011
(in thousands, except per share data)          
Interest, fee and dividend income:          
Loans and leases  $ 50,509  $ 50,208  $ 51,393  $ 50,991  $ 51,126
Securities available for sale 7,108 7,366 7,461 7,771 7,947
Securities held to maturity 617 640 661 680 745
Other 413 392 383 342 440
Total interest, fee and dividend income 58,647 58,606 59,898 59,784 60,258
Interest expense:          
Deposits 4,834 5,143 5,330 5,352 6,051
Short-term borrowings 48 41 39 56 52
Long-term debt 3,580 3,581 3,621 3,621 3,591
Trust preferred debentures 434 449 409 394 400
Total interest expense 8,896 9,214 9,399 9,423 10,094
Net interest income 49,751 49,392 50,499 50,361 50,164
Provision for loan and lease losses 4,103 4,471 5,576 5,175 6,021
Net interest income after provision for loan and lease losses 45,648 44,921 44,923 45,186 44,143
Noninterest income:          
Insurance and other financial services revenue 5,279 6,154 4,918 5,127 5,025
Service charges on deposit accounts 4,571 4,341 5,405 5,532 5,455
ATM and debit card fees 3,063 2,962 2,911 3,135 2,928
Retirement plan administration fees 2,411 2,333 2,184 2,295 2,268
Trust  2,312 2,129 2,480 2,090 2,258
Bank owned life insurance income 618 971 716 674 660
Net securities gains 97 455 52 12 59
Other 2,331 3,711 1,464 1,329 1,208
Total noninterest income 20,682 23,056 20,130 20,194 19,861
Noninterest expense:          
Salaries and employee benefits 24,992 26,725 25,105 25,068 24,035
Occupancy 4,222 4,491 3,967 3,887 3,987
Data processing and communications 3,431 3,258 3,186 3,054 3,117
Professional fees and outside services 2,388 2,725 2,552 2,215 2,088
Equipment 2,409 2,380 2,206 2,288 2,180
Office supplies and postage 1,574 1,671 1,655 1,531 1,342
FDIC expenses 942 931 886 920 965
Advertising 805 802 1,174 685 1,033
Amortization of intangible assets 841 819 760 782 771
Loan collection and other real estate owned 799 638 793 676 443
Merger 826 511  649  155  -- 
Other operating 4,161 3,523 4,479 3,785 3,196
Total noninterest expense 47,390 48,474 47,412 45,046 43,157
Income before income taxes 18,940 19,503 17,641 20,334 20,847
Income taxes 5,683 5,853 3,919 5,117 6,192
Net income   $ 13,257  $ 13,650  $ 13,722  $ 15,217  $ 14,655
Earnings per share:          
Basic  $ 0.40  $ 0.41  $ 0.42  $ 0.46  $ 0.43
Diluted  $ 0.40  $ 0.41  $ 0.41  $ 0.45  $ 0.43
             
             
 Three Months ended June 30,             
    2012     2011  
  Average   Yield/ Average   Yield/
(dollars in thousands) Balance Interest Rates  Balance Interest Rates 
ASSETS            
Short-term interest bearing accounts $102,192 $84 0.33% $128,799 $111 0.35%
Securities available for sale (1)(excluding unrealized gains or losses)  1,208,384  7,605 2.53%  1,098,964  8,512 3.11%
Securities held to maturity (1)   68,472  931 5.47%  85,615  1,125 5.27%
Investment in FRB and FHLB Banks  27,886  328 4.73%  27,071  329 4.87%
Loans and leases (2)   3,938,592  50,741 5.18%  3,648,343  51,359 5.65%
 Total interest earning assets  $ 5,345,526  $ 59,689 4.49%  $ 4,988,792  $ 61,436 4.94%
Other assets  465,058      424,187    
Total assets  $ 5,810,584      $ 5,412,979    
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
Money market deposit accounts $1,115,812  539 0.19% $1,091,001  $ 1,009 0.37%
NOW deposit accounts  704,896  480 0.27%  672,345  627 0.37%
Savings deposits  676,794  127 0.08%  607,533  182 0.12%
Time deposits  973,051  3,688 1.52%  919,590  4,233 1.85%
 Total interest bearing deposits  $ 3,470,553  $ 4,834 0.56%  $ 3,290,469  $ 6,051 0.74%
Short-term borrowings  171,545  48 0.11%  135,618  52 0.15%
Trust preferred debentures  75,422  434 2.31%  75,422  400 2.13%
Long-term debt  368,251  3,580 3.91%  369,459  3,591 3.90%
 Total interest bearing liabilities  $ 4,085,771  $ 8,896 0.88%  $ 3,870,968  $ 10,094 1.05%
Demand deposits  1,111,804      932,066    
Other liabilities  61,144      68,596    
Stockholders' equity  551,865      541,349    
Total liabilities and stockholders' equity  $ 5,810,584      $ 5,412,979    
 Net interest income (FTE)    50,793      51,342  
Interest rate spread     3.61%     3.89%
Net interest margin     3.82%     4.13%
Taxable equivalent adjustment     1,042      1,178  
Net interest income    $ 49,751      $ 50,164  
             
(1) Securities are shown at average amortized cost            
(2) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding        
             
             
 Six Months ended June 30,             
    2012     2011  
  Average   Yield/ Average   Yield/
(dollars in thousands) Balance Interest Rates  Balance Interest Rates 
ASSETS            
Short-term interest bearing accounts $91,159 $120 0.26% $135,019 $180 0.27%
Securities available for sale (1)(excluding unrealized gains or losses)  1,210,575  15,460 2.57%  1,098,506  17,013 3.12%
Securities held to maturity (1)   69,507  1,896 5.48%  89,833  2,327 5.22%
Investment in FRB and FHLB Banks  27,453  685 5.02%  27,158  754 5.60%
Loans and leases (2)   3,874,027  101,184 5.25%  3,632,355  102,451 5.69%
Total interest earning assets  $ 5,272,721  $ 119,345 4.55%  $ 4,982,871  $ 122,725 4.97%
Other assets  462,300      422,191    
Total assets  $ 5,735,021      $ 5,405,062    
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
Money market deposit accounts $1,102,579  1,151 0.21% $1,088,456  $ 2,125 0.39%
NOW deposit accounts  699,917  1,010 0.29%  685,171  1,261 0.37%
Savings deposits  659,381  242 0.07%  591,043  347 0.12%
Time deposits  964,701  7,574 1.58%  925,528  8,605 1.87%
Total interest bearing deposits  $ 3,426,578  $ 9,977 0.59%  $ 3,290,198  $ 12,338 0.76%
Short-term borrowings  167,176  89 0.11%  144,447  110 0.15%
Trust preferred debentures  75,422  883 2.35%  75,422  1,289 3.45%
Long-term debt  369,323  7,161 3.90%  369,717  7,162 3.91%
Total interest bearing liabilities  $ 4,038,499  $ 18,110 0.90%  $ 3,879,784  $ 20,899 1.09%
Demand deposits  1,087,180      918,483    
Other liabilities  62,096      67,006    
Stockholders' equity  547,246      539,789    
Total liabilities and stockholders' equity  $ 5,735,021      $ 5,405,062    
Net interest income (FTE)    101,235      101,826  
Interest rate spread     3.65%     3.88%
Net interest margin     3.86%     4.12%
Taxable equivalent adjustment     2,092      2,410  
Net interest income    $ 99,143      $ 99,416  
             
(1) Securities are shown at average amortized cost            
(2) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding        
     
     
NBT Bancorp Inc. and Subsidiaries    
Loans and Leases (Unaudited)    
     
  June 30, December 31,
(In thousands) 2012 2011
Residential real estate mortgages $630,791 $581,511
Commercial  691,055  611,298
Commercial real estate mortgages  1,066,039  888,879
Real estate construction and development  99,236  93,977
Agricultural and agricultural real estate mortgages  107,337  108,423
Consumer  993,586  946,470
Home equity  573,170  569,645
Total loans and leases  $ 4,161,214  $ 3,800,203

CONTACT:

Martin A. Dietrich, CEO
Michael J. Chewens, CFO
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
607-337-6119

NBT Bancorp Inc.





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