NORWICH, NY--(MARKET WIRE)--Apr 28, 2008 -- NBT Bancorp Inc. (NBT) (NasdaqGS:
NBTB -
News) reported
today that net income per diluted share for the three months
ended March
31, 2008 was $0.43 per share, compared with $0.28 per share
and $0.41 per
share for the three months ended December 31, 2007 and March
31, 2007,
respectively. Return on average assets and return on average
equity were
1.07% and 13.68%, respectively, for the three months ended
March 31, 2008,
compared with 0.69% and 9.06%, respectively, for the three
months ended
December 31, 2007 and 1.13% and 14.06%, respectively, for
the three months
ended March 31, 2007. Net income for the three months ended
March 31, 2008
was $13.7 million, up $4.7 million, or 52.7%, from the three
months ended
December 31, 2007, and down $0.4 million, or 2.9%, from
net income of $14.1
million reported for the three months ended March 31, 2007.
The increase
in net income for the three months ended March 31, 2008
as compared with
the three months ended December 31, 2007 was primarily the
result of an
increase in net interest income as well as a decrease in
the provision for
loan and lease losses in the first quarter of 2008. The
decrease in net
income for the three months ended March 31, 2008 as compared
with the same
period in 2007 was primarily the result of a $4.4 million
increase in the
provision for loan and lease losses from the prior period,
as well as an
increase in noninterest expense totaling $3.2 million. These
increases
were partially offset by a $3.4 million, or 8.5%, increase
in net interest
income for the three months ended March 31, 2008 as compared
to the three
months ended March 31, 2007. In addition, noninterest income
for the three
months ended March 31, 2008 was $16.1 million, up $3.4 million
or 26.8%
from noninterest income of $12.7 million reported for the
same period in
2007.
NBT President and CEO Martin A. Dietrich said, "The financial
services
industry continues to experience challenging market conditions
in 2008.
Given this difficult environment, I am pleased with our
results for the
first quarter. In particular, noninterest income was up
26.8% for the
first quarter of 2008, compared with the first quarter of
2007, as we
continue to focus on our fee initiatives as well as other
areas of
noninterest income that are so important to our future.
In addition, our
net interest income was up 8.5% from the first quarter of
2007, as we
experienced growth in earning assets and an increase in
our net interest
margin of 21 basis points. We continue to closely monitor
our asset
quality and are encouraged by the improvement in the past
due loans from
$25.9 million to $19.7 million and the decrease in potential
problem loans
from $73.3 million to $58.5 million. As a result of the
continued
dedication and focus of our team, I am pleased and encouraged
by our
results in the first quarter of 2008."
Loan and Lease Quality and Provision for Loan and Lease
Losses
Nonperforming loans at March 31, 2008 were $30.4 million
or 0.87% of total
loans and leases compared with $30.6 million or 0.88% at
December 31, 2007.
The allowance for loan and lease losses totaled $56.5 million
at March 31,
2008, as compared to $54.2 million at December 31, 2007
and $50.6 million
at March 31, 2007.
The Company recorded a provision for loan and lease losses
of $6.5 million
during the first quarter of 2008 compared with $13.4 million
and $2.1
million for the three months ending December 31, 2007 and
March 31, 2007,
respectively. Net charge-offs totaled $4.2 million for the
three month
period ending March 31, 2008, down from $14.1 million for
the three months
ending December 31, 2007, and up from $2.1 million for the
three months
ended March 31, 2007. The decrease in the provision for
loan and lease
losses and net charge-offs from December 31, 2007 was due
primarily to a
charge-off related to one large commercial loan during the
fourth quarter
of 2007. The increase in the provision for loan and lease
losses and net
charge-offs from the three months ended March 31, 2007 was
due primarily to
an additional charge-off in the first quarter of 2008 related
to the
aforementioned commercial loan. Net charge-offs to average
loans and
leases for the three months ended March 31, 2008, were 0.48%,
compared with
1.63% for the three months ended December 31, 2007, and
0.25% for the three
months ended March 31, 2007. The Company's allowance for
loan and lease
losses was 1.61% of loans and leases at March 31, 2008,
compared with 1.57%
at December 31, 2007 and 1.49% at March 31, 2007.
Net Interest Income
Net interest income was up 5.3% to $44.1 million for the
three months ended
March 31, 2008 compared with the three months ended December
31, 2007, and
up 8.5% compared with $40.6 million for the three months
ended March 31,
2007. The Company's fully taxable equivalent (FTE) net interest
margin
increased from 3.61% and 3.63% for the three months ended
December 31, 2007
and March 31, 2007, respectively, to 3.84% for the three
months ended March
31, 2008. In addition, the Company experienced a 1.7% growth
in average
earning assets for the three months ending March 31, 2008
as compared to
the three months ending March 31, 2007. The growth in average
earning
assets for the three months ended March 31, 2008, as compared
to the three
months ended March 31, 2007 was due primarily to an increase
in average
loans and leases. Although the yield on interest earning
assets decreased
22 basis points, the yield on interest bearing liabilities
declined 49
basis points, which contributed to the increase in the net
interest margin
from the three months ended March 31, 2007. The yield on
money market
deposit accounts declined from 3.45% for the three months
ended March 31,
2007 to 2.37% for the three months ended March 31, 2008,
while the yield on
time deposits decreased 30 basis points for the same periods.
The yield on
short term borrowings declined 163 basis points for the
three months ended
March 31, 2008 as compared to the three months ended March
31, 2007, as a
result of the 300 basis points drop in the Fed Funds Target
Rate from 5.25%
at March 31, 2007 to 2.25% at March 31, 2008.
Noninterest Income
Noninterest income for the three months ended March 31,
2008 was $16.1
million, up $3.4 million or 26.8% from $12.7 million for
the same period in
2007. The increase in noninterest income was due primarily
to an increase
in fees from service charges on deposit accounts and ATM
and debit cards,
which collectively increased $2.3 million as the Company
focused on
enhancing fee income through various initiatives. In addition,
trust
administration income increased $0.3 million for the three
month period
ended March 31, 2008, compared with the same period in 2007.
This increase
stems primarily from an increase in customer accounts resulting
from
successful business development. Other noninterest income
increased $0.6
million for the three month period ended March 31, 2008,
compared with the
same period in 2007. This increase was due primarily to
a $0.4 million
gain from the mandatory redemption of Visa, Inc. common
stock associated
with its initial public offering. Net securities gains and
losses for the
three month periods ended March 31, 2008 and 2007 were nominal
and had no
significant effect on noninterest income.
Noninterest Expense and Income Tax Expense
Noninterest expense for the three months ended March 31,
2008 was $34.0
million, up from $30.9 million for the same period in 2007.
Office
expenses, such as supplies and postage, occupancy, equipment
and data
processing and communications charges were $9.9 million
for the three
months ended March 31, 2008, up $0.6 million, or 7.2%, from
$9.3 million
for the three months ended March 31, 2007. This increase
was due primarily
to increased expenses related to branch openings. Salaries
and employee
benefits increased $0.8 million, or 5.0%, for the three
months ended March
31, 2008 compared with the same period in 2007. Professional
fees and
outside services increased $1.4 million for the three month
period ended
March 31, 2008, compared with the same period in 2007, due
primarily to
fees and costs related to the aforementioned noninterest
income
initiatives. Income tax expense for the three month period
ended March 31,
2008 was $5.9 million, down from $6.2 million for the same
period in 2007.
The effective rates were 30.2% and 30.6% for the three month
periods ended
March 31, 2008 and 2007, respectively.
Balance Sheet
Total assets were $5.2 billion at March 31, 2008, up $28.0
million or 0.5%
from $5.2 billion at December 31, 2007, and up $129.0 million
or 2.5% from
$5.1 billion at March 31, 2007. Loans and leases were $3.5
billion at
March 31, 2008, up $49.6 million or 1.4% from $3.5 billion
at December 31,
2007, and up $110.0 million or 3.2% from $3.4 billion at
March 31, 2007.
The increase in loans and leases for the three months ended
March 31, 2008
as compared to March 31, 2007 was due in large part to an
increase in
consumer loans of approximately $136.9 million. This increase
in consumer
loans was partially offset by decreases in commercial loans
and real estate
loans totaling approximately $24.4 million. Total deposits
were $3.9
billion at March 31, 2008, down $17.9 million or 0.5% from
$3.9 billion at
December 31, 2007, and down $112.4 million or 2.8% from
$4.0 billion at
March 31, 2007. The decrease from March 31, 2007 was due
in large part to
a $185.0 million, or 10.8%, decrease in time deposit accounts.
This
decrease was partially offset by a $48.4 million increase
in demand deposit
accounts and a $59.6 million increase in money market accounts
from March
31, 2007 to March 31, 2008. Stockholders' equity was $405.9
million,
representing a total equity to total assets ratio of 7.76%
at March 31,
2008, compared with $397.3 million or a total equity to
total assets ratio
of 7.64% at December 31, 2007, and $407.6 million or a total
equity to
total assets ratio of 7.99% at March 31, 2007.
Stock Repurchase Program
Under previously disclosed stock repurchase plans, the Company
purchased
272,840 shares of its common stock during the three month
period ended
March 31, 2008, for a total of $5.9 million at an average
price of $21.77
per share. At March 31, 2008, there were 1,203,040 shares
available for
repurchase under previously announced plans.
Dividend Declared
The NBT Board of Directors declared a second quarter cash
dividend of $0.20
per share at a meeting held today. The dividend will be
paid on June 15,
2008, to shareholders of record as of June 1, 2008.
Corporate Overview
NBT is a financial holding company headquartered in Norwich,
NY, with total
assets of $5.2 billion at March 31, 2008. The Company primarily
operates
through NBT Bank, N.A., a full-service community bank with
two divisions,
and through two financial services companies. NBT Bank,
N.A. has 122
locations, including 83 NBT Bank offices in upstate New
York and 39
Pennstar Bank offices in northeastern Pennsylvania. EPIC
Advisors, Inc.,
based in Rochester, NY, is a full-service 401(k) plan recordkeeping
firm.
Hathaway Insurance Agency, Inc., based in Gloversville,
NY, 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.epic1st.com and
www.hathawayagency.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 undertake to update forward-looking
statements to reflect subsequent circumstances or events.
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
Net Percent
2008 2007 Change Change
---------- ---------- ---------- -------
(dollars in thousands,
except per share data)
Three Months Ended March 31,
Net Income $ 13,716 $ 14,132 ($ 416) -3%
Diluted Earnings Per Share $ 0.43 $ 0.41 $ 0.02 5%
Weighted Average Diluted
Common Shares Outstanding 32,251,700 34,457,082 -2,205,382 -6%
Return on Average Assets (1) 1.07% 1.13% -0.06% -5%
Return on Average Equity (1) 13.68% 14.06% -0.38% -3%
Net Interest Margin (2) 3.84% 3.63% 0.21% 6%
========== ========== ========== =======
Asset Quality March 31, December 31, March 31,
2008 2007 2007
---------- ---------- ----------
Nonaccrual Loans $ 29,864 $ 29,697 $ 16,294
90 Days Past Due and Still
Accruing $ 543 $ 882 $ 1,069
Total Nonperforming Loans $ 30,407 $ 30,579 $ 17,363
Other Real Estate Owned $ 480 $ 560 $ 632
Total Nonperforming Assets $ 30,887 $ 31,139 $ 17,995
Past Due Loans $ 19,748 $ 25,914 $ 28,497
Allowance for Loan and Lease
Losses $ 56,500 $ 54,183 $ 50,554
Year-to-Date (YTD) Net
Charge-Offs $ 4,161 $ 26,498 $ 2,129
Allowance for Loan and Lease
Losses to Total Loans and
Leases 1.61% 1.57% 1.49%
Total Nonperforming Loans to
Total Loans and Leases 0.87% 0.88% 0.51%
Total Nonperforming Assets to
Total Assets 0.59% 0.60% 0.35%
Past Due Loans to Total Loans
and Leases 0.56% 0.75% 0.84%
Allowance for Loan and Lease
Losses to Total Nonperforming
Loans 185.81% 177.19% 291.16%
Net Charge-Offs to YTD Average
Loans and Leases 0.48% 0.77% 0.25%
========== ========== ==========
Capital
Equity to Assets 7.76% 7.64% 7.99%
Book Value Per Share $ 12.65 $ 12.29 $ 11.99
Tangible Book Value Per Share $ 9.13 $ 8.78 $ 8.61
Tier 1 Leverage Ratio 7.17% 7.14% 7.60%
Tier 1 Capital Ratio 9.75% 9.85% 10.53%
Total Risk-Based Capital Ratio 11.00% 11.10% 11.78%
========== ========== ==========
Quarterly Common
Stock Price 2008 2007 2006
Quarter End High Low High Low High Low
----- ----- ----- ----- ----- -----
March 31 $23.65 $17.95 $25.81 $21.73 $23.90 $21.02
June 30 23.45 21.80 23.24 21.03
September 30 23.80 17.10 24.57 21.44
December 31 25.00 20.58 26.47 22.36
(1) Annualized
(2) Calculated on a FTE basis
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
Net Percent
2008 2007 Change Change
----------- ----------- ---------- -------
(dollars in thousands,
except per share data)
Balance Sheet as of March 31,
Loans and Leases $ 3,505,453 $ 3,395,476 $ 109,977 3%
Earning Assets $ 4,818,733 $ 4,710,263 $ 108,470 2%
Total Assets $ 5,229,771 $ 5,100,781 $ 128,990 3%
Deposits $ 3,854,226 $ 3,966,655 ($112,429) -3%
Stockholders’ Equity $ 405,863 $ 407,580 ($1,717) 0%
=========== =========== ========== =======
Average Balances
Three Months Ended March 31,
Loans and Leases $ 3,466,360 $ 3,398,590 $ 67,770 2%
Securities Available For Sale
(excluding unrealized gains
or losses) $ 1,120,257 $ 1,123,414 ($3,157) 0%
Securities Held To Maturity $ 152,860 $ 140,856 $ 12,004 9%
Regulatory Equity Investment $ 37,509 $ 34,804 $ 2,705 8%
Short-Term Interest Bearing
Accounts $ 8,400 $ 9,255 ($855) -9%
Total Earning Assets $ 4,785,386 $ 4,706,919 $ 78,467 2%
Total Assets $ 5,164,344 $ 5,068,491 $ 95,853 2%
Interest Bearing Deposits $ 3,232,999 $ 3,245,152 ($12,153) 0%
Non-Interest Bearing Deposits $ 659,417 $ 616,938 $ 42,479 7%
Short-Term Borrowings $ 303,576 $ 265,347 $ 38,229 14%
Long-Term Borrowings $ 500,294 $ 482,025 $ 18,269 4%
Total Interest Bearing
Liabilities $ 4,036,869 $ 3,992,524 $ 44,345 1%
Stockholders’ Equity $ 403,165 $ 407,519 ($4,354) -1%
=========== =========== ========== =======
NBT Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets March 31, December 31, March 31,
(unaudited) 2008 2007 2007
------------- ------------- -------------
(in thousands)
ASSETS
Cash and due from banks $ 129,630 $ 155,495 $ 132,494
Short term interest bearing
accounts 7,345 7,451 24,598
Securities available for sale, at
fair value 1,127,707 1,132,230 1,107,624
Securities held to maturity (fair
value of $158,482, $149,519 and 157,353 149,111 145,760
$145,762 at March 31, 2008,
December 31, 2007 and
March 31, 2007, respectively)
Federal Reserve and Federal Home
Loan Bank stock 41,353 38,102 30,487
Loans and leases 3,505,453 3,455,851 3,395,476
Less allowance for loan and lease
losses 56,500 54,183 50,554
============= ============= =============
Net loans and leases 3,448,953 3,401,668 3,344,922
Premises and equipment, net 64,302 64,042 65,784
Goodwill 103,398 103,398 103,420
Intangible assets, net 9,782 10,173 11,408
Bank owned life insurance 44,066 43,614 42,217
Other assets 95,882 96,492 92,067
------------- ------------- -------------
TOTAL ASSETS $ 5,229,771 $ 5,201,776 $ 5,100,781
============= ============= =============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Deposits:
Demand (noninterest bearing) $ 672,616 $ 666,698 $ 624,171
Savings, NOW, and money market 1,656,374 1,614,289 1,632,222
Time 1,525,236 1,591,106 1,710,262
------------- ------------- -------------
Total deposits 3,854,226 3,872,093 3,966,655
Short-term borrowings 399,992 368,467 204,421
Long-term debt 424,858 424,887 392,792
Trust preferred debentures 75,422 75,422 75,422
Other liabilities 69,410 63,607 53,911
------------- ------------- -------------
Total liabilities 4,823,908 4,804,476 4,693,201
Total stockholders' equity 405,863 397,300 407,580
============= ============= =============
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 5,229,771 $ 5,201,776 $ 5,100,781
============= ============= =============
Three months ended
NBT Bancorp Inc. and Subsidiaries March 31,
Consolidated Statements of Income (unaudited) 2008 2007
------------- ------------
(in thousands, except per share data)
Interest, fee and dividend income:
Loans and leases $ 58,617 $ 59,808
Securities available for sale 13,746 13,467
Securities held to maturity 1,514 1,444
Other 775 740
------------- ------------
Total interest, fee and dividend income 74,652 75,459
------------- ------------
Interest expense:
Deposits 22,698 25,984
Short-term borrowings 2,340 3,092
Long-term debt 4,302 4,486
Trust preferred debentures 1,247 1,268
------------- ------------
Total interest expense 30,587 34,830
------------- ------------
Net interest income 44,065 40,629
Provision for loan and lease losses 6,478 2,096
------------- ------------
Net interest income after provision for loan
and lease losses 37,587 38,533
------------- ------------
Noninterest income:
Trust 1,774 1,437
Service charges on deposit accounts 6,525 4,469
ATM and debit card fees 2,097 1,896
Broker/dealer and insurance revenue 1,107 1,083
Net securities gains (losses) 15 (5)
Bank owned life insurance income 452 434
Retirement plan administration fees 1,708 1,592
Other 2,417 1,784
------------- ------------
Total noninterest income 16,095 12,690
------------- ------------
Noninterest expense:
Salaries and employee benefits 16,770 15,964
Office supplies and postage 1,339 1,296
Occupancy 3,610 3,169
Equipment 1,825 1,933
Professional fees and outside services 3,099 1,658
Data processing and communications 3,170 2,877
Amortization of intangible assets 391 409
Loan collection and other real estate owned 567 377
Other operating 3,263 3,189
------------- ------------
Total noninterest expense 34,034 30,872
------------- ------------
Income before income taxes 19,648 20,351
Income taxes 5,932 6,219
------------- ------------
Net income $ 13,716 $ 14,132
------------- ------------
Earnings Per Share:
Basic $ 0.43 $ 0.41
Diluted $ 0.43 $ 0.41
============= ============
NBT Bancorp Inc. and
Subsidiaries
Quarterly Consolidated
Statements of Income 1Q 4Q 3Q 2Q 1Q
(unaudited) 2008 2007 2007 2007 2007
--------- --------- --------- --------- --------
(in thousands, except per
share data)
Interest, fee and
dividend income:
Loans and leases $ 58,617 $ 60,817 $ 61,183 $ 60,689 $ 59,808
Securities available for
sale 13,746 13,971 13,847 13,562 13,467
Securities held to
maturity 1,514 1,458 1,471 1,525 1,444
Other 775 736 680 719 740
--------- --------- --------- --------- --------
Total interest, fee and
dividend income 74,652 76,982 77,181 76,495 75,459
--------- --------- --------- --------- --------
Interest expense:
Deposits 22,698 26,578 27,062 26,950 25,984
Short-term borrowings 2,340 3,048 3,885 2,918 3,092
Long-term debt 4,302 4,233 3,770 3,997 4,486
Trust preferred
debentures 1,247 1,270 1,277 1,272 1,268
--------- --------- --------- --------- --------
Total interest expense 30,587 35,129 35,994 35,137 34,830
--------- --------- --------- --------- --------
Net interest income 44,065 41,853 41,187 41,358 40,629
Provision for loan and
lease losses 6,478 13,440 4,788 9,770 2,096
--------- --------- --------- --------- --------
Net interest income after
provision for loan and
lease losses 37,587 28,413 36,399 31,588 38,533
--------- --------- --------- --------- --------
Noninterest income:
Trust 1,774 1,584 1,701 1,792 1,437
Service charges on
deposit accounts 6,525 7,142 6,195 4,936 4,469
ATM and debit card fees 2,097 2,089 2,159 2,041 1,896
Broker/dealer and
insurance fees 1,107 1,052 1,027 1,093 1,083
Net securities gains
(losses) 15 613 1,484 21 (5)
Bank owned life insurance
income 452 480 467 450 434
Retirement plan
administration fees 1,708 1,557 1,586 1,601 1,592
Other 2,417 1,973 1,908 2,058 1,784
--------- --------- --------- --------- --------
Total noninterest
income 16,095 16,490 16,527 13,992 12,690
--------- --------- --------- --------- --------
Noninterest expense:
Salaries and employee
benefits 16,770 14,654 15,876 13,022 15,964
Office supplies and
postage 1,339 1,136 1,354 1,334 1,296
Occupancy 3,610 2,948 2,928 2,585 3,169
Equipment 1,825 1,855 1,797 1,837 1,933
Professional fees and
outside services 3,099 3,295 2,256 1,926 1,658
Data processing and
communications 3,170 2,899 2,779 2,845 2,877
Amortization of
intangible assets 391 413 413 410 409
Loan collection and other
real estate owned 567 597 431 228 377
Other operating 3,263 4,607 3,393 3,827 3,189
--------- --------- --------- --------- --------
Total noninterest
expense 34,034 32,404 31,227 28,014 30,872
--------- --------- --------- --------- --------
Income before income
taxes 19,648 12,499 21,699 17,566 20,351
Income taxes 5,932 3,514 6,552 5,502 6,219
--------- --------- --------- --------- --------
Net income $ 13,716 $ 8,985 $ 15,147 $ 12,064 $ 14,132
========= ========= ========= ========= ========
Earnings per share:
Basic $ 0.43 $ 0.28 $ 0.46 $ 0.36 $ 0.41
Diluted $ 0.43 $ 0.28 $ 0.46 $ 0.36 $ 0.41
========= ========= ========= ========= ========