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NBT Bancorp Inc. Announces Third Quarter Diluted Earnings Per Share Of $0.43; Strong Loan Growth

Stocks in this article: NBTB

Stock Repurchase Program

Under previously disclosed stock repurchase plans, the Company purchased 769,568 shares of its common stock during the nine month period ended September 30, 2012, for a total of $15.5 million at an average price of $20.13 per share. At September 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 fourth-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on December 15, 2012 to shareholders of record as of December 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 September 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)  
         
  2012 2011 Net Change Percent Change
  (dollars in thousands, except per share data)  
         
Three Months Ended September 30,        
Net Income $14,535 $15,217 ($682) -4%
Diluted Earnings Per Share $0.43 $0.45 ($0.02) -4%
Weighted Average Diluted Common Shares Outstanding 33,961,375 33,567,564 393,811 1%
Return on Average Assets (1) 0.97% 1.12% -15 bp -13%
Return on Average Equity (1) 10.13% 11.21% -108 bp -10%
Net Interest Margin (2) 3.90% 4.14% -24 bp -6%
         
Nine Months Ended September 30,        
Net Income $41,442 $44,179 ($2,737) -6%
Diluted Earnings Per Share $1.23 $1.29 ($0.06) -5%
Weighted Average Diluted Common Shares Outstanding 33,626,071 34,159,833 (533,762) -2%
Return on Average Assets (1) 0.95% 1.09% -14 bp -13%
Return on Average Equity (1) 9.97% 10.95% -98 bp -9%
Net Interest Margin (2) 3.87% 4.13% -26 bp -6%
         
         
Asset Quality  September 30, 2012 December 31, 2011    
Nonaccrual Loans $42,661 $38,290    
90 Days Past Due and Still Accruing $2,963 $3,190    
Total Nonperforming Loans $45,624 $41,480    
Other Real Estate Owned $1,863 $2,160    
Total Nonperforming Assets $47,487 $43,640    
Allowance for Loan and Lease Losses $70,734 $71,334    
Allowance for Loan and Lease Losses to Total Loans and Leases 1.66% 1.88%    
Total Nonperforming Loans to Total Loans and Leases 1.07% 1.09%    
Total Nonperforming Assets to Total Assets 0.79% 0.78%    
Past Due Loans to Total Loans and Leases 0.65% 0.89%    
Allowance for Loan and Lease Losses to Total Nonperforming Loans 155.04% 171.97%    
Net Charge-Offs to YTD Average Loans and Leases (1) 0.47% 0.56%    
         
Capital        
Equity to Assets 9.56% 9.61%    
Book Value Per Share $17.09 $16.23    
Tangible Book Value Per Share (3) $12.06 $11.70    
Tier 1 Leverage Ratio 8.51% 8.74%    
Tier 1 Capital Ratio 10.82% 11.56%    
Total Risk-Based Capital Ratio 12.07% 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 $22.89 $19.91 $23.25 $17.05
December 31     $22.63 $17.47
         
(1) Annualized        
(2) Calculated on a FTE basis        
(3) Tangible equity (total equity minus intangible assets) divided by common shares outstanding    
     
NBT Bancorp Inc. and Subsidiaries  September 30,  December 31, 
Consolidated Balance Sheets (unaudited) 2012 2011
(in thousands)    
     
ASSETS    
Cash and due from banks  $ 137,747  $ 128,517
Short term interest bearing accounts  2,693  864
Securities available for sale, at fair value   1,191,107  1,244,619
Securities held to maturity (fair value of $62,401 and $72,198 at September 30, 2012 and December 31, 2011, respectively)  61,302  70,811
Trading securities  3,851  3,062
Federal Reserve and Federal Home Loan Bank stock  28,706  27,020
Loans and leases  4,251,119  3,800,203
Less allowance for loan and lease losses  70,734  71,334
Net loans and leases 4,180,385 3,728,869
Premises and equipment, net  77,326  74,541
Goodwill  152,251  132,029
Intangible assets, net  17,346  18,194
Bank owned life insurance  79,854  77,626
Other assets  96,348  92,254
TOTAL ASSETS  $ 6,028,916  $ 5,598,406
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Deposits:    
Demand (noninterest bearing)  $ 1,187,502  $ 1,052,906
Savings, NOW, and money market  2,599,556  2,381,116
Time  1,018,957  933,127
Total deposits 4,806,015 4,367,149
Short-term borrowings  137,365  181,592
Long-term debt  367,144  370,344
Trust preferred debentures  75,422  75,422
Other liabilities  66,309  65,789
Total liabilities 5,452,255 5,060,296
     
Total stockholders' equity  576,661  538,110
     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 6,028,916  $ 5,598,406
     
  Three Months Ended Nine Months Ended
NBT Bancorp Inc. and Subsidiaries  September 30,  September 30,
Consolidated Statements of Income (unaudited) 2012 2011 2012 2011
(in thousands, except per share data)    
Interest, fee and dividend income:        
Loans and leases  $ 53,817  $ 50,991  $ 154,534  $ 152,977
Securities available for sale 6,550  7,771  21,024  23,622
Securities held to maturity 572  680  1,829  2,225
Other 348  342  1,153  1,275
Total interest, fee and dividend income  61,287  59,784  178,540  180,099
Interest expense:        
Deposits 4,544  5,352  14,521  17,690
Short-term borrowings 60  56  149  166
Long-term debt 3,640  3,621  10,801  10,783
Trust preferred debentures 436  394  1,319  1,683
Total interest expense  8,680  9,423  26,790  30,322
Net interest income  52,607  50,361  151,750  149,777
Provision for loan and lease losses 4,755  5,175  13,329  15,161
Net interest income after provision for loan and lease losses  47,852  45,186  138,421  134,616
Noninterest income:        
Insurance and other financial services revenue 5,591  5,127  17,024  15,925
Service charges on deposit accounts 4,626  5,532  13,538  16,059
ATM and debit card fees 3,378  3,135  9,403  8,731
Retirement plan administration fees 2,718  2,295  7,462  6,734
Trust 2,242  2,090  6,683  6,384
Bank owned life insurance income 639  674  2,228  2,369
Net securities gains 26  12  578  98
Other 2,407  1,329  8,449  3,881
Total noninterest income  21,627  20,194  65,365  60,181
Noninterest expense:        
Salaries and employee benefits 26,641  25,068  78,358  74,107
Occupancy 4,437  3,887  13,150  12,396
Data processing and communications 3,352  3,054  10,041  9,085
Professional fees and outside services 2,735  2,215  7,848  6,369
Equipment 2,435  2,288  7,224  6,658
Office supplies and postage 1,597  1,531  4,842  4,418
FDIC expenses  939  920  2,812  3,381
Advertising  701  685  2,308  2,286
Amortization of intangible assets 870  782  2,530  2,286
Loan collection and other real estate owned 614  676  2,051  1,838
Merger  558  155  1,895  155
Other operating 4,552  3,785  12,236  10,285
Total noninterest expense 49,431 45,046 145,295 133,264
Income before income taxes 20,048 20,334 58,491 61,533
Income taxes 5,513  5,117  17,049  17,354
Net income  $ 14,535  $ 15,217  $ 41,442  $ 44,179
Earnings Per Share:        
Basic  $ 0.43  $ 0.46  $ 1.24  $ 1.30
Diluted  $ 0.43  $ 0.45  $ 1.23  $ 1.29
           
           
NBT Bancorp Inc. and Subsidiaries 3Q 2Q 1Q 4Q 3Q
Quarterly Consolidated Statements of Income (unaudited) 2012 2012 2012 2011 2011
(in thousands, except per share data)          
Interest, fee and dividend income:          
Loans and leases  $ 53,817  $ 50,509  $ 50,208  $ 51,393  $ 50,991
Securities available for sale 6,550 7,108 7,366 7,461 7,771
Securities held to maturity 572 617 640 661 680
Other 348 413 392 383 342
Total interest, fee and dividend income 61,287 58,647 58,606 59,898 59,784
Interest expense:          
Deposits 4,544 4,834 5,143 5,330 5,352
Short-term borrowings 60 48 41 39 56
Long-term debt 3,640 3,580 3,581 3,621 3,621
Trust preferred debentures 436 434 449 409 394
Total interest expense 8,680 8,896 9,214 9,399 9,423
Net interest income 52,607 49,751 49,392 50,499 50,361
Provision for loan and lease losses 4,755 4,103 4,471 5,576 5,175
Net interest income after provision for loan and lease losses 47,852 45,648 44,921 44,923 45,186
Noninterest income:          
Insurance and other financial services revenue 5,591 5,279 6,154 4,918 5,127
Service charges on deposit accounts 4,626 4,571 4,341 5,405 5,532
ATM and debit card fees 3,378 3,063 2,962 2,911 3,135
Retirement plan administration fees 2,718 2,411 2,333 2,184 2,295
Trust  2,242 2,312 2,129 2,480 2,090
Bank owned life insurance income 639 618 971 716 674
Net securities gains 26 97 455 52 12
Other 2,407 2,331 3,711 1,464 1,329
Total noninterest income 21,627 20,682 23,056 20,130 20,194
Noninterest expense:          
Salaries and employee benefits 26,641 24,992 26,725 25,105 25,068
Occupancy 4,437 4,222 4,491 3,967 3,887
Data processing and communications 3,352 3,431 3,258 3,186 3,054
Professional fees and outside services 2,735 2,388 2,725 2,552 2,215
Equipment 2,435 2,409 2,380 2,206 2,288
Office supplies and postage 1,597 1,574 1,671 1,655 1,531
FDIC expenses 939 942 931 886 920
Advertising 701 805 802 1,174 685
Amortization of intangible assets 870 841 819 760 782
Loan collection and other real estate owned 614 799 638 793 676
Merger 558 826 511  649  155
Other operating 4,552 4,161 3,523 4,479 3,785
Total noninterest expense 49,431 47,390 48,474 47,412 45,046
Income before income taxes 20,048 18,940 19,503 17,641 20,334
Income taxes 5,513 5,683 5,853 3,919 5,117
Net income   $ 14,535  $ 13,257  $ 13,650  $ 13,722  $ 15,217
Earnings per share:          
Basic  $ 0.43  $ 0.40  $ 0.41  $ 0.42  $ 0.46
Diluted  $ 0.43  $ 0.40  $ 0.41  $ 0.41  $ 0.45
             
             
  Three Months ended September 30,      2012       2011  
(dollars in thousands) Average Balance Interest Yield/ Rates  Average Balance Interest Yield/ Rates 
ASSETS            
Short-term interest bearing accounts  $ 10,392  $ 11 0.43%  $ 25,088  $ 11 0.17%
Securities available for sale (1)(excluding unrealized gains or losses)  1,168,326  7,023 2.39%  1,120,083  8,317 2.95%
Securities held to maturity (1)   62,746  861 5.46%  74,482  1,026 5.46%
Investment in FRB and FHLB Banks  28,706  337 4.67%  27,022  329 4.84%
Loans and leases (2)   4,197,046  54,046 5.12%  3,686,693  51,227 5.51%
Total interest earning assets  $ 5,467,216  $ 62,278 4.53%  $ 4,933,368  $ 60,910 4.90%
Other assets  504,194      442,275    
Total assets  $ 5,971,410      $ 5,375,643    
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
Money market deposit accounts $1,111,624  $ 495 0.18% $1,036,572  $ 811 0.31%
NOW deposit accounts  686,768  377 0.22%  631,284  483 0.30%
Savings deposits  706,927  149 0.08%  615,168  170 0.11%
Time deposits  1,035,868  3,523 1.35%  882,896  3,888 1.75%
Total interest bearing deposits  $ 3,541,187  $ 4,544 0.51%  $ 3,165,920  $ 5,352 0.67%
Short-term borrowings  178,277  60 0.13%  172,370  56 0.13%
Trust preferred debentures  75,422  436 2.30%  75,422  394 2.07%
Long-term debt  367,146  3,640 3.94%  370,349  3,621 3.88%
Total interest bearing liabilities  $ 4,162,032  $ 8,680 0.83%  $ 3,784,061  $ 9,423 0.99%
Demand deposits  1,173,638      983,318    
Other liabilities  64,860      69,860    
Stockholders' equity  570,880      538,404    
Total liabilities and stockholders' equity  $ 5,971,410      $ 5,375,643    
Net interest income (FTE)    53,598      51,487  
Interest rate spread     3.70%     3.91%
Net interest margin     3.90%     4.14%
Taxable equivalent adjustment     991      1,126  
Net interest income    $ 52,607      $ 50,361  
             
(1) Securities are shown at average amortized cost            
(2) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding        
             
             
Nine Months ended September 30,      2012       2011  
(dollars in thousands) Average Balance  Interest Yield/ Rates  Average Balance  Interest Yield/ Rates 
ASSETS            
Short-term interest bearing accounts  $ 64,040  $ 131 0.27%  $ 97,973  $ 191 0.26%
Securities available for sale (1)(excluding unrealized gains or losses)  1,196,389  22,483 2.51%  1,105,777  25,330 3.06%
Securities held to maturity (1)   67,237  2,757 5.48%  84,660  3,353 5.29%
Investment in FRB and FHLB Banks  27,874  1,022 4.90%  27,112  1,084 5.34%
Loans and leases (2)   3,982,486  155,230 5.21%  3,650,667  153,678 5.63%
Total interest earning assets  $ 5,338,026  $ 181,623 4.54%  $ 4,966,189  $ 183,636 4.94%
Other assets  476,575      428,959    
Total assets  $ 5,814,601      $ 5,395,148    
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
Money market deposit accounts  $ 1,105,616  $ 1,646 0.20%  $ 1,070,971  $ 2,937 0.37%
NOW deposit accounts  695,502  1,387 0.27%  667,012  1,745 0.35%
Savings deposits  675,346  391 0.08%  599,173  517 0.12%
Time deposits  988,596  11,097 1.50%  911,161  12,491 1.83%
Total interest bearing deposits  $ 3,465,060  $ 14,521 0.56%  $ 3,248,317  $ 17,690 0.73%
Short-term borrowings  170,903  149 0.12%  153,857  166 0.14%
Trust preferred debentures  75,422  1,319 2.34%  75,422  1,683 2.98%
Long-term debt  368,592  10,801 3.91%  369,930  10,783 3.90%
Total interest bearing liabilities  $ 4,079,977  $ 26,790 0.88%  $ 3,847,526  $ 30,322 1.05%
Demand deposits  1,116,210      940,332    
Other liabilities  63,232      67,968    
Stockholders' equity  555,182      539,322    
Total liabilities and stockholders' equity  $ 5,814,601      $ 5,395,148    
Net interest income (FTE)    154,833      153,314  
Interest rate spread     3.67%     3.89%
Net interest margin     3.87%     4.13%
Taxable equivalent adjustment     3,083      3,537  
Net interest income    $ 151,750      $ 149,777  
             
(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)    
     
(In thousands) September 30, 2012 December 31, 2011
Residential real estate mortgages  $ 650,448  $ 581,511
Commercial  697,213  611,298
Commercial real estate mortgages  1,083,675  888,879
Real estate construction and development  99,181  93,977
Agricultural and agricultural real estate mortgages  112,822  108,423
Consumer  1,031,572  946,470
Home equity  576,208  569,645
Total loans and leases  $ 4,251,119  $ 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

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