5. NBT Bancorp Shares of NBT Bancorp ( NBTB) of Norwich, N.Y., closed at $22.06 Tuesday, returning 3% year-to-date, following a 5% decline during 2011. Based on quarterly payout of 20 cents, the shares have a dividend yield of 3.63%. The shares trade for 1.9 times tangible book value, according to Thomson Reuters Bank Insight, and for 13 times the consensus 2013 EPS estimate of $1.65 a share, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is $1.60. For the 12-month period ended June 30, NBT's operating return on average assets (ROA) was 0.97%, and its return on average tangible common equity (ROE) was 14.02%, according to Thomson Reuters Bank Insight. During that period, the company's dividend payout ratio was 59.20%. Guggenheim Securities analyst David Darst has a neutral rating on NBT Bancorp, with a $21 price target, and said in July after the company reported its second-quarter results that "organic loan growth accelerated in 2Q12 to over 7% given stronger demand in Utica, the Capital Region, and Vermont. We now expect total loan growth of 12% with 6% organic growth in 2012, which reflects a nice acceleration." Darst estimates that NBT will report third-quarter earnings of 40 cents a share, matching the company's results during the second quarter, but down from 45 cents during the third quarter of 2011. NBT's net interest margin -- the difference between the average yield on loans and investments and the average cost for deposits and borrowings -- narrowed to 3.82%, from 3.90% the previous quarter, and 4.13% a year earlier, in line with the banking industry's aggregate performance, as the Federal Reserve's target short-term rate has remained in a range of zero to 0.25% since late 2008, while long-term rates have continued to decline. Darst said "we believe revenue growth will remain a challenge in the current interest rate environment," and that he expects "a NIM of ~3.70% by year-end." NBTB data by YCharts Interested in more on NBT Bancorp? See TheStreet Ratings' report card for this stock.
Steve Ricchiuto, MZUHO Securities chief economist, and Bob Michele asset management global CIO with JP Morgan (JPM), joined BloomberTV's 'Bloomberg GO' to discuss the economy and the Fed raising rates.