NORWICH, N.Y., Jan. 27, 2014 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (NBT) (Nasdaq:NBTB) reported net income for the year ended December 31, 2013 of $61.7 million, up from $54.6 million from the prior year. 2013 results included the impact of the acquisition of Alliance Financial Corporation ("Alliance") in March 2013, including approximately $12.4 million in merger related expenses. Reported earnings per diluted share for the year ended December 31, 2013 was $1.46 as compared to $1.62 for 2012.
Core net income (excluding merger related expenses, net securities gains, and other items not considered core) for the year ended December 31, 2013 was $69.9 million, up 27.5% from $54.8 million for 2012. Core diluted earnings per share for the year ended December 31, 2013 was $1.65, up from $1.63 for the prior year.
Reported net income for the three months ended December 31, 2013 was $17.9 million, up from $13.1 million for the same period last year. 2013 results included the impact of the aforementioned acquisition of Alliance. Reported diluted earnings per share for the three months ended December 31, 2013 was $0.41, as compared to $0.39 for the same period in 2012.
Core net income (excluding merger related expenses, net securities gains, and other items not considered core) for the three months ended December 31, 2013 was $18.4 million, up 35.2% from $13.6 million for the same period in 2012, due primarily to the impact of the Alliance acquisition. Core diluted earnings per share for the three months ended December 31, 2013 was $0.42, as compared to $0.40 for the same period last year.
2013 Highlights:
-
Significant strategic expansion during 2013:
-- Acquired Alliance Financial Corporation, a $1.4 billion financial holding company headquartered in Syracuse, N.Y. on March 8, 2013 -
2013 organic loan growth of 5.3%
-- Consumer loan growth of 4.8%
-- Commercial loan growth of 5.5% - Net charge-offs to average loans was 0.44% for 2013, down from 0.55% for 2012
"We are extremely proud of the results generated by our team in 2013. We achieved record core earnings and realized strong organic loan growth while maintaining stable asset quality. Strategic initiatives—including the successful acquisition and integration of Alliance, investments in training and technology, and expense control—all contributed to our strong financial results and have our company well-positioned for 2014 and beyond. Ultimately, the engine that drives our success is the talented group of financial professionals we cultivate. While the regulatory and economic environment continues to present challenges, we remain confident in our team and their ability to continue to enhance the long-term value of our company for our shareholders."
Net interest income was $238.1 million for the year ended December 31, 2013, up 16.6% from 2012. This increase from the prior year was due primarily to the 22.7% increase in average earning assets for the year ended December 31, 2013 over the prior year. The acquisition of Alliance in March 2013 as well as the sustained organic loan growth in 2013 contributed to the growth in average earning assets.
NBT's fully tax equivalent ("FTE") net interest margin was 3.66% for the year ended December 31, 2013, down from 3.86% for 2012. Rate compression on earning assets continued to negatively impact net interest margin in 2013 as evidenced by decreasing loan yields from 5.17% for the year ended December 31, 2012 to 4.69% for 2013. In addition, yields on available for sale securities declined 42 bps for the year ended December 31, 2013 as compared to 2012. The rate compression on earning assets was partially offset by the 24 bp decrease in the rates paid on interest bearing liabilities, driven by a more favorable deposit mix and a decrease in deposit rates, in 2013 as compared to the same period in 2012. Further contributing to net interest margin compression during 2013 was the incorporation of Alliance's interest earning assets and interest bearing liabilities into NBT.
Net interest income was $62.1 million for the fourth quarter of 2013, down marginally from the prior quarter, and up $9.6 million from the fourth quarter of 2012 primarily due to the acquisition of Alliance. Average interest earning assets were up $54.4 million, or 0.8%, for the fourth quarter of 2013 as compared to the prior quarter, driven primarily by organic loan production during the fourth quarter. This increase was offset by a decrease in the yields on interest earning assets from 4.08% for the third quarter of 2013 to 4.02% for the fourth quarter, driven primarily by the 9 bp decrease in loan yields. Average interest bearing liabilities increased slightly from the third quarter of 2013 to the fourth quarter. Rates paid on interest bearing liabilities decreased 2 bps during the same period resulting in a 3.0% decrease in interest expense from the third quarter of 2013 to the fourth quarter.
NBT's FTE net interest margin was 3.61% for the three months ended December 31, 2013, down from 3.65% from the prior quarter, and down from 3.83% for the fourth quarter of 2012. Rate compression on earning assets continued to negatively impact net interest margin in the fourth quarter of 2013 as evidenced by decreasing loan yields from 4.63% for the third quarter of 2013 to 4.54% for the fourth quarter of 2013. The rate compression on earning assets was partially offset by the 2 bp decrease in the rates paid on interest bearing liabilities in the fourth quarter of 2013 versus the prior quarter. This decrease was primarily driven by the 2 bp decrease in rates paid on deposits.
Noninterest income for the year ended December 31, 2013 was $103.2 million, up 18.2% from 2012, with the primary drivers being increases in trust revenue and ATM and debit card fees driven primarily by the acquisition of Alliance. In addition, NBT experienced a 9.2% increase in insurance and financial services revenue for the year ended December 31, 2013 as compared to 2012, due primarily to a $1.0 million, or 6.0%, increase in insurance revenue as well as a $1.0 million, or 19.5%, increase in financial services revenue. Retirement plan administration fees were also up $1.4 million, or 13.9% for the year ended December 31, 2013 as compared to 2012 due to growth in new business during 2013.
Noninterest income for the three months ended December 31, 2013 was $25.3 million, down 6.8% from the prior quarter, and up 15.2% from the fourth quarter of 2012 which was due primarily to the acquisition of Alliance. The decrease from the prior quarter was driven primarily by other noninterest income, which decreased $1.3 million from the prior quarter. Decreases in loan fees collected and swap fees recognized during the fourth quarter were the main drivers. In addition, NBT recorded $0.3 million in securities gains during the third quarter, as compared to nominal securities gains recorded for the fourth quarter of 2013.
Noninterest expense for the year ended December 31, 2013 was $228.9 million, up $35.0 million or 18.1%, from 2012. Excluding merger expenses totaling $12.4 million and $2.6 million for the years ended December 31, 2013 and 2012, respectively, noninterest expense was up $25.3 million, or 13.2%, for 2013 as compared to 2012. Several noninterest expense categories were affected by the acquisition of Alliance in March 2013 and the full year impact of the June 2012 acquisition of Hampshire First Bank, with salaries and employee benefits and occupancy expenses being the primary drivers of the increase. Income tax expense for the year ended December 31, 2013 was $28.2 million, up from $22.8 million from 2012 due primarily to the increase in pre-tax income for 2013 and an increase in the effective tax rate to 31.3% for the year ended December 31, 2013 as compared with 29.5% for 2012.
Noninterest expense for the three months ended December 31, 2013 was $55.5 million, down 1.4% from the prior quarter, and up 14.2% from the fourth quarter of 2012 primarily due to the acquisition of Alliance. Excluding merger expenses totaling $0.1 million and $0.3 million during the fourth quarter and third quarter of 2013, respectively, noninterest expense was down $0.6 million, or 1.0%, for the fourth quarter of 2013 as compared to the prior quarter. Income tax expense for the three month period ended December 31, 2013 was $8.8 million, up slightly from $8.6 million from the prior quarter, and up from $5.8 million for the fourth quarter of 2012. The increase from the fourth quarter of 2012 is due primarily to the increase in pre-tax income during the fourth quarter of 2013 over the fourth quarter of 2012. The effective tax rate was 32.9% for the fourth quarter and 31.0% for the third quarter of 2013.
Asset Quality
Net charge-offs were $22.3 million for the year ended December 31, 2013, equivalent to the year ended December 31, 2012. Net charge-offs to average loans for the year ended December 31, 2013 was 0.44%, compared to 0.55% for last year. NBT recorded a provision for loan losses of $22.4 million for the year ended December 31, 2013, compared with $20.3 million for 2012. This increase was due primarily to strong organic loan growth during 2013.
Net charge-offs were $5.9 million for the three months ended December 31, 2013, down from $6.2 million for the prior quarter, and down from $8.3 million from the three months ended December 31, 2012. NBT recorded a provision for loan losses of $5.2 million for the three months ended December 31, 2013, equivalent to the prior quarter, and $6.9 million for the fourth quarter of 2012.
Nonperforming loans to total loans was 0.99% at December 31, 2013, up 16 bps from the prior quarter, and up from 0.98% at December 31, 2012. The increase from the prior quarter was due to an increase in commercial nonaccrual loans, driven primarily by one commercial relationship. Past due loans as a percentage of total loans were 0.77% for the fourth quarter as compared to 0.70% for the third quarter of 2013, and 0.71% as of December 31, 2012.
The allowance for loan losses totaled $69.4 million at December 31, 2013, compared to $70.2 million at September 30, 2013 and $69.3 million at December 31, 2012. The allowance for loan losses as a percentage of loans was 1.28% (1.55% excluding acquired loans with no related allowance recorded) at December 31, 2013, compared to 1.31% (1.60% excluding acquired loans with no related allowance recorded) at September 30, 2013 and 1.62% (1.72% excluding acquired loans with no related allowance recorded) at December 31, 2012.
Balance Sheet
Total assets were $7.7 billion at December 31, 2013, up $1.6 billion (approximately $1.4 billion from Alliance acquisition) or 26.6% from December 31, 2012. Loans were $5.4 billion at December 31, 2013, up $1.1 billion from December 31, 2012, primarily due to approximately $904 million from the Alliance acquisition coupled with strong organic loan growth during 2013. Total deposits were $5.9 billion at December 31, 2013, up $1.1 billion from December 31, 2012, primarily due to the Alliance acquisition. Stockholders' equity was $816.6 million, representing a total equity-to-total assets ratio of 10.67% at December 31, 2013, compared with $582.3 million or a total equity-to-total assets ratio of 9.64% at December 31, 2012.
Stock Repurchase Program
Under a previously disclosed stock repurchase plan which expired on December 31, 2013, NBT purchased 584,925 shares of its common stock during the twelve month period ended December 31, 2013, for a total of $12.5 million at an average price of $21.30 per share. At December 31, 2013, there were 1,000,000 shares available for repurchase under a previously announced plan, which expires on December 31, 2014.
Dividend
The NBT Board of Directors declared a 2014 first-quarter cash dividend of $0.21 per share at a meeting held today. The dividend will be paid on March 14, 2014 to shareholders of record as of March 1, 2014.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $7.7 billion at December 31, 2013. The company primarily operates through NBT Bank, N.A., a full-service community bank with two geographic divisions, and through two financial services companies. NBT Bank, N.A. has 157 locations, including 125 NBT Bank offices in upstate New York, northwestern Vermont, western Massachusetts, and southern New Hampshire. NBT's Pennstar Bank division operates from 32 Pennstar Bank offices in northeastern Pennsylvania. 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.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.
Non-GAAP Measures
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). These measures adjust GAAP measures to exclude the effects of sales of securities and certain non-recurring and merger-related expenses. Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provided useful information that is important to an understanding of the operating results of NBT's core business (due to the non-recurring nature of the excluded items). Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider NBT's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of NBT.
| NBT Bancorp Inc. and Subsidiaries | |||||
| SELECTED FINANCIAL DATA | |||||
| (unaudited, dollars in thousands except per share data) | |||||
| 2013 | 2012 | ||||
| 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | |
| Reconciliation of Non-GAAP Financial Measures: | |||||
| Reported net income (GAAP) | $17,925 | $19,257 | $16,916 | $7,649 | $13,116 |
| Adj: (Gain) / Loss on sale of securities, net (net of tax) | (9) | (228) | 42 | (795) | (15) |
| Adj: Other adjustments (net of tax) (1) | 402 | 110 | -- | -- | -- |
| Plus: Merger related expenses (net of tax) | 59 | 224 | 882 | 7,423 | 496 |
| Total Adjustments | 452 | 106 | 924 | 6,628 | 481 |
| Core net income | $18,377 | $19,363 | $17,840 | $14,277 | $13,597 |
| Profitability: | |||||
| Core Diluted Earnings Per Share | $0.42 | $0.44 | $0.40 | $0.39 | $0.40 |
| Diluted Earnings Per Share | $0.41 | $0.44 | $0.38 | $0.21 | $0.39 |
| Weighted Average Diluted Common Shares Outstanding | 44,121,102 | 44,135,114 | 44,316,531 | 36,794,356 | 33,987,465 |
| Core Return on Average Assets (2) | 0.96% | 1.02% | 0.95% | 0.90% | 0.89% |
| Return on Average Assets (2) | 0.94% | 1.01% | 0.90% | 0.48% | 0.86% |
| Core Return on Average Equity (2) | 9.04% | 9.67% | 8.88% | 9.01% | 9.34% |
| Return on Average Equity (2) | 8.81% | 9.62% | 8.42% | 4.83% | 9.01% |
| Core Return on Average Tangible Common Equity (2)(4) | 14.77% | 15.95% | 14.57% | 13.58% | 13.71% |
| Return on Average Tangible Common Equity (2)(4) | 14.42% | 15.86% | 13.85% | 7.49% | 13.25% |
| Net Interest Margin (2)(3) | 3.61% | 3.65% | 3.69% | 3.68% | 3.83% |
| Twelve Months Ended December 31, | |||||
| Reconciliation of Non-GAAP Financial Measures: | 2013 | 2012 | |||
| Reported net income (GAAP) | $61,747 | $54,558 | |||
| Adj: (Gain) / Loss on sale of securities, net (net of tax) | (990) | (421) | |||
| Adj: Other adjustments (net of tax) (6) | 512 | (382) | |||
| Plus: Merger related expenses (net of tax) | 8,588 | 1,836 | |||
| Reversal of uncertain tax position | -- | (790) | |||
| Total Adjustments | 8,110 | 243 | |||
| Core net income | $69,857 | $54,801 | |||
| Profitability: | |||||
| Core Diluted Earnings Per Share | $1.65 | $1.63 | |||
| Diluted Earnings Per Share | $1.46 | $1.62 | |||
| Weighted Average Diluted Common Shares Outstanding | 42,350,580 | 33,718,718 | |||
| Core Return on Average Assets | 0.96% | 0.93% | |||
| Return on Average Assets | 0.85% | 0.93% | |||
| Core Return on Average Equity | 9.16% | 9.77% | |||
| Return on Average Equity | 8.09% | 9.72% | |||
| Core Return on Average Tangible Common Equity (5) | 14.76% | 14.20% | |||
| Return on Average Tangible Common Equity (5) | 13.11% | 14.14% | |||
| Net Interest Margin (3) | 3.66% | 3.86% | |||
| (1) Primarily reorganization expenses for 2013 and a write-down of an other asset for 2012 | |||||
| (2) Annualized | |||||
| (3) Calculated on a Fully Tax Equivalent ("FTE") | |||||
| (4) Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows: | |||||
| 2013 | 2012 | ||||
| 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | |
| Average stockholders' equity | $ 806,791 | $ 794,273 | $ 806,200 | $ 642,693 | $ 579,211 |
| Less: average goodwill and other intangibles | 291,659 | 292,271 | 292,775 | 200,779 | 169,612 |
| Average tangible common equity | $ 515,132 | $ 502,002 | $ 513,425 | $ 441,914 | $ 409,599 |
| (5) Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows: | |||||
| 12 Months ended December 31, | |||||
| 2013 | 2012 | ||||
| Average stockholders' equity | $ 763,026 | $ 555,182 | |||
| Less: average goodwill and other intangibles | 269,683 | 158,035 | |||
| Average tangible common equity | $ 493,343 | $ 397,147 | |||
| (6) Reorganization expenses for 2013; prepayment penalty income and flood insurance recoveries, partially offset by an other asset write-down for 2012 | |||||
| NBT Bancorp Inc. and Subsidiaries | |||||
| SELECTED FINANCIAL DATA | |||||
| (unaudited, dollars in thousands except per share data) | |||||
| 2013 | 2012 | ||||
| 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | |
| Balance Sheet Data: | |||||
| Securities Available for Sale | $1,364,881 | $1,385,734 | $1,390,403 | $1,465,791 | $1,147,999 |
| Securities Held to Maturity | 117,283 | 118,259 | 122,302 | 62,474 | 60,563 |
| Net Loans | 5,337,361 | 5,297,047 | 5,219,526 | 5,126,299 | 4,208,282 |
| Total Assets | 7,652,175 | 7,668,903 | 7,534,518 | 7,610,831 | 6,042,259 |
| Total Deposits | 5,890,224 | 6,003,138 | 5,878,176 | 6,015,963 | 4,784,349 |
| Total Borrowings | 866,061 | 783,439 | 795,918 | 715,728 | 605,855 |
| Total Liabilities | 6,835,606 | 6,873,344 | 6,742,943 | 6,807,536 | 5,459,986 |
| Stockholders' Equity | 816,569 | 795,559 | 791,575 | 803,295 | 582,273 |
| Asset Quality: | |||||
| Nonaccrual Loans | $49,965 | $41,418 | $40,525 | $41,726 | $39,676 |
| 90 Days Past Due and Still Accruing | 3,737 | 3,286 | 2,004 | 1,651 | 2,448 |
| Total Nonperforming Loans | 53,702 | 44,704 | 42,529 | 43,377 | 42,124 |
| Other Real Estate Owned | 2,904 | 3,626 | 3,757 | 2,864 | 2,276 |
| Total Nonperforming Assets | 56,606 | 48,330 | 46,286 | 46,241 | 44,400 |
| Allowance for Loan Losses | 69,434 | 70,184 | 71,184 | 68,734 | 69,334 |
| Allowance for Loan Losses to Total Originated Loans (1) | 1.55% | 1.60% | 1.68% | 1.69% | 1.72% |
| Allowance for Loan Losses to Total Loans | 1.28% | 1.31% | 1.35% | 1.32% | 1.62% |
| Total Nonperforming Loans to Total Loans | 0.99% | 0.83% | 0.80% | 0.83% | 0.98% |
| Total Nonperforming Assets to Total Assets | 0.74% | 0.63% | 0.61% | 0.61% | 0.73% |
| Past Due Loans to Total Loans | 0.77% | 0.70% | 0.71% | 0.81% | 0.71% |
| Allowance for Loan Losses to Total Nonperforming Loans | 129.29% | 157.00% | 167.38% | 158.46% | 164.60% |
| Net Charge-Offs to Average Loans (4) | 0.44% | 0.46% | 0.30% | 0.56% | 0.78% |
| Capital: | |||||
| Equity to Assets | 10.67% | 10.37% | 10.51% | 10.55% | 9.64% |
| Book Value Per Share | $18.77 | $18.38 | $18.18 | $18.36 | $17.24 |
| Tangible Book Value Per Share (2) | $12.09 | $11.64 | $11.46 | $11.67 | $12.23 |
| Tier 1 Leverage Ratio (3) | 8.93% | 8.79% | 8.72% | 10.25% | 8.54% |
| Tier 1 Capital Ratio | 11.74% | 11.46% | 11.20% | 11.33% | 11.00% |
| Total Risk-Based Capital Ratio | 12.99% | 12.71% | 12.45% | 12.58% | 12.25% |
| Common Stock Price (End of Period) | $25.90 | $22.98 | $21.17 | $22.15 | $20.27 |
| (1) Excludes acquired loans with no related allowance recorded |
| (2) Stockholders' equity less goodwill and intangible assets divided by common shares outstanding |
| (3) The Tier 1 Leverage Ratio for the first quarter of 2013 was impacted by timing of the acquisition of Alliance on March 8, 2013 |
| (4) Annualized |
| Note: Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences. |
| NBT Bancorp Inc. and Subsidiaries | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (unaudited, dollars in thousands) | ||
| December 31, | December 31, | |
| ASSETS | 2013 | 2012 |
| Cash and due from banks | $ 157,625 | $ 157,094 |
| Short term interest bearing accounts | 1,301 | 6,574 |
| Securities available for sale, at fair value | 1,364,881 | 1,147,999 |
| Securities held to maturity (fair value of $113,276 and $61,535 at December 31, 2013 and 2012, respectively) | 117,283 | 60,563 |
| Trading securities | 5,779 | 3,918 |
| Federal Reserve and Federal Home Loan Bank stock | 46,864 | 29,920 |
| Loans | 5,406,795 | 4,277,616 |
| Less allowance for loan losses | 69,434 | 69,334 |
| Net loans | 5,337,361 | 4,208,282 |
| Premises and equipment, net | 88,327 | 77,875 |
| Goodwill | 264,997 | 152,373 |
| Intangible assets, net | 25,557 | 16,962 |
| Bank owned life insurance | 114,966 | 80,702 |
| Other assets | 127,234 | 99,997 |
| TOTAL ASSETS | $ 7,652,175 | $ 6,042,259 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Deposits: | ||
| Demand (noninterest bearing) | $ 1,645,641 | $ 1,242,712 |
| Savings, NOW, and money market | 3,223,441 | 2,558,376 |
| Time | 1,021,142 | 983,261 |
| Total deposits | 5,890,224 | 4,784,349 |
| Short-term borrowings | 456,042 | 162,941 |
| Long-term debt | 308,823 | 367,492 |
| Junior subordinated debt | 101,196 | 75,422 |
| Other liabilities | 79,321 | 69,782 |
| Total liabilities | 6,835,606 | 5,459,986 |
| Total stockholders' equity | 816,569 | 582,273 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 7,652,175 | $ 6,042,259 |
| NBT Bancorp Inc. and Subsidiaries | ||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||
| (unaudited, dollars in thousands except per share data) | ||||
| Three Months Ended | Twelve Months Ended | |||
| December 31, | December 31, | |||
| 2013 | 2012 | 2013 | 2012 | |
| Interest, fee and dividend income: | ||||
| Loans | $ 61,173 | $ 53,924 | $ 238,672 | $ 208,458 |
| Securities available for sale | 6,707 | 5,981 | 25,510 | 27,005 |
| Securities held to maturity | 783 | 549 | 2,660 | 2,378 |
| Other | 518 | 403 | 1,881 | 1,556 |
| Total interest, fee and dividend income | 69,181 | 60,857 | 268,723 | 239,397 |
| Interest expense: | ||||
| Deposits | 3,845 | 4,327 | 16,290 | 18,848 |
| Short-term borrowings | 174 | 39 | 515 | 188 |
| Long-term debt | 2,559 | 3,627 | 11,755 | 14,428 |
| Trust preferred debt | 545 | 411 | 2,084 | 1,730 |
| Total interest expense | 7,123 | 8,404 | 30,644 | 35,194 |
| Net interest income | 62,058 | 52,453 | 238,079 | 204,203 |
| Provision for loan losses | 5,166 | 6,940 | 22,424 | 20,269 |
| Net interest income after provision for loan losses | 56,892 | 45,513 | 215,655 | 183,934 |
| Noninterest income: | ||||
| Insurance and other financial services revenue | 5,761 | 5,363 | 24,447 | 22,387 |
| Service charges on deposit accounts | 4,996 | 4,687 | 19,307 | 18,225 |
| ATM and debit card fees | 3,996 | 2,955 | 15,558 | 12,358 |
| Retirement plan administration fees | 2,796 | 2,635 | 11,497 | 10,097 |
| Trust | 4,725 | 2,489 | 16,682 | 9,172 |
| Bank owned life insurance income | 1,145 | 849 | 3,793 | 3,077 |
| Net securities gains | 13 | 21 | 1,426 | 599 |
| Other | 1,870 | 2,963 | 10,505 | 11,412 |
| Total noninterest income | 25,302 | 21,962 | 103,215 | 87,327 |
| Noninterest expense: | ||||
| Salaries and employee benefits | 28,106 | 26,457 | 113,580 | 104,815 |
| Occupancy | 5,262 | 4,265 | 20,720 | 17,415 |
| Data processing and communications | 3,985 | 3,396 | 15,353 | 13,437 |
| Professional fees and outside services | 3,969 | 2,615 | 13,309 | 10,463 |
| Equipment | 3,013 | 2,403 | 11,493 | 9,627 |
| Office supplies and postage | 1,677 | 1,647 | 6,563 | 6,489 |
| FDIC expenses | 1,272 | 1,020 | 4,960 | 3,832 |
| Advertising | 759 | 581 | 3,204 | 2,889 |
| Amortization of intangible assets | 1,324 | 864 | 4,872 | 3,394 |
| Loan collection and other real estate owned | 594 | 509 | 2,619 | 2,560 |
| Merger related | 88 | 713 | 12,364 | 2,608 |
| Other operating | 5,437 | 4,122 | 19,890 | 16,358 |
| Total noninterest expense | 55,486 | 48,592 | 228,927 | 193,887 |
| Income before income taxes | 26,708 | 18,883 | 89,943 | 77,374 |
| Income taxes | 8,783 | 5,767 | 28,196 | 22,816 |
| Net income | $ 17,925 | $ 13,116 | $ 61,747 | $ 54,558 |
| Earnings Per Share: | ||||
| Basic | $ 0.41 | $ 0.39 | $ 1.47 | $ 1.63 |
| Diluted | $ 0.41 | $ 0.39 | $ 1.46 | $ 1.62 |
| Note: Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences. |
| NBT Bancorp Inc. and Subsidiaries | |||||
| QUARTERLY CONSOLIDATED STATEMENTS OF INCOME | |||||
| (unaudited, dollars in thousands except per share data) | |||||
| 2013 | 2012 | ||||
| 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | |
| Interest, fee and dividend income: | |||||
| Loans | $ 61,173 | $ 61,773 | $ 62,031 | $ 53,695 | $ 53,924 |
| Securities available for sale | 6,707 | 6,520 | 6,537 | 5,746 | 5,981 |
| Securities held to maturity | 783 | 804 | 548 | 525 | 549 |
| Other | 518 | 472 | 488 | 403 | 403 |
| Total interest, fee and dividend income | 69,181 | 69,569 | 69,604 | 60,369 | 60,857 |
| Interest expense: | |||||
| Deposits | 3,845 | 3,999 | 4,296 | 4,150 | 4,327 |
| Short-term borrowings | 174 | 232 | 67 | 42 | 39 |
| Long-term debt | 2,559 | 2,561 | 3,026 | 3,609 | 3,627 |
| Junior subordinated debt | 545 | 551 | 560 | 428 | 411 |
| Total interest expense | 7,123 | 7,343 | 7,949 | 8,229 | 8,404 |
| Net interest income | 62,058 | 62,226 | 61,655 | 52,140 | 52,453 |
| Provision for loan losses | 5,166 | 5,198 | 6,402 | 5,658 | 6,940 |
| Net interest income after provision for loan losses | 56,892 | 57,028 | 55,253 | 46,482 | 45,513 |
| Noninterest income: | |||||
| Insurance and other financial services revenue | 5,761 | 6,038 | 5,755 | 6,893 | 5,363 |
| Service charges on deposit accounts | 4,996 | 5,055 | 4,933 | 4,323 | 4,687 |
| ATM and debit card fees | 3,996 | 4,276 | 4,044 | 3,242 | 2,955 |
| Retirement plan administration fees | 2,796 | 3,062 | 2,957 | 2,682 | 2,635 |
| Trust | 4,725 | 4,345 | 4,699 | 2,913 | 2,489 |
| Bank owned life insurance income | 1,145 | 913 | 886 | 849 | 849 |
| Net securities gains (losses) | 13 | 329 | (61) | 1,145 | 21 |
| Other | 1,870 | 3,129 | 2,324 | 3,182 | 2,963 |
| Total noninterest income | 25,302 | 27,147 | 25,537 | 25,229 | 21,962 |
| Noninterest expense: | |||||
| Salaries and employee benefits | 28,106 | 29,267 | 29,160 | 27,047 | 26,457 |
| Occupancy | 5,262 | 5,262 | 5,219 | 4,977 | 4,265 |
| Data processing and communications | 3,985 | 4,059 | 3,854 | 3,455 | 3,396 |
| Professional fees and outside services | 3,969 | 3,202 | 3,237 | 2,901 | 2,615 |
| Equipment | 3,013 | 2,988 | 2,910 | 2,582 | 2,403 |
| Office supplies and postage | 1,677 | 1,640 | 1,656 | 1,590 | 1,647 |
| FDIC expenses | 1,272 | 1,285 | 1,273 | 1,130 | 1,020 |
| Advertising | 759 | 722 | 1,000 | 723 | 581 |
| Amortization of intangible assets | 1,324 | 1,346 | 1,351 | 851 | 864 |
| Loan collection and other real estate owned | 594 | 886 | 421 | 718 | 509 |
| Merger | 88 | 326 | 1,269 | 10,681 | 713 |
| Other operating | 5,437 | 5,303 | 5,100 | 4,050 | 4,122 |
| Total noninterest expense | 55,486 | 56,286 | 56,450 | 60,705 | 48,592 |
| Income before income taxes | 26,708 | 27,889 | 24,340 | 11,006 | 18,883 |
| Income taxes | 8,783 | 8,632 | 7,424 | 3,357 | 5,767 |
| Net income | $ 17,925 | $ 19,257 | $ 16,916 | $ 7,649 | $ 13,116 |
| Earnings per share: | |||||
| Basic | $ 0.41 | $ 0.44 | $ 0.39 | $ 0.21 | $ 0.39 |
| Diluted | $ 0.41 | $ 0.44 | $ 0.38 | $ 0.21 | $ 0.39 |
| Note: Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences. |
| NBT Bancorp Inc. and Subsidiaries | ||||||||||
| AVERAGE QUARTERLY BALANCE SHEETS | ||||||||||
| (unaudited, dollars in thousands) | ||||||||||
| Average | Yield / | Average | Yield / | Average | Yield / | Average | Yield / | Average | Yield / | |
| Balance | Rates | Balance | Rates | Balance | Rates | Balance | Rates | Balance | Rates | |
| Q4 - 2013 | Q3 - 2013 | Q2 - 2013 | Q1 - 2013 | Q4 - 2012 | ||||||
| ASSETS: | ||||||||||
| Short-term interest bearing accounts | $ 4,798 | 0.81% | $ 1,955 | 1.73% | $ 41,313 | 0.57% | $ 75,110 | 0.21% | $ 72,660 | 0.26% |
| Securities available for sale (1)(2) | 1,383,273 | 2.05% | 1,387,714 | 2.00% | 1,428,864 | 1.97% | 1,197,238 | 2.09% | 1,123,110 | 2.27% |
| Securities held to maturity (1) | 117,574 | 3.47% | 118,781 | 3.54% | 62,463 | 5.23% | 52,905 | 6.06% | 60,651 | 5.42% |
| Investment in FRB and FHLB Banks | 41,115 | 4.92% | 43,895 | 4.20% | 35,497 | 4.85% | 31,312 | 4.75% | 29,801 | 4.75% |
| Loans (3) | 5,369,474 | 4.54% | 5,309,446 | 4.63% | 5,243,534 | 4.76% | 4,492,106 | 4.87% | 4,264,680 | 5.05% |
| Total interest earning assets | $ 6,916,234 | 4.02% | $ 6,861,791 | 4.08% | $ 6,811,671 | 4.16% | $ 5,848,671 | 4.25% | $ 5,550,902 | 4.43% |
| Other assets | 680,435 | 671,482 | 705,869 | 554,355 | 503,124 | |||||
| Total assets | $ 7,596,669 | $ 7,533,273 | $ 7,517,540 | $ 6,403,026 | $ 6,054,026 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||||
| Money market deposit accounts | $1,419,458 | 0.15% | $1,360,067 | 0.15% | $1,402,429 | 0.15% | $1,190,555 | 0.14% | $1,149,248 | 0.14% |
| NOW deposit accounts | 925,544 | 0.13% | 877,387 | 0.13% | 927,037 | 0.19% | 799,219 | 0.23% | 752,737 | 0.25% |
| Savings deposits | 973,650 | 0.08% | 984,093 | 0.09% | 983,413 | 0.09% | 770,559 | 0.08% | 694,226 | 0.08% |
| Time deposits | 1,042,710 | 1.07% | 1,081,549 | 1.09% | 1,136,511 | 1.10% | 1,015,711 | 1.26% | 1,006,581 | 1.31% |
| Total interest bearing deposits | $ 4,361,362 | 0.35% | $ 4,303,096 | 0.37% | $ 4,449,390 | 0.39% | $ 3,776,044 | 0.45% | $ 3,602,792 | 0.48% |
| Short-term borrowings | 338,476 | 0.20% | 383,238 | 0.24% | 229,906 | 0.12% | 168,783 | 0.10% | 150,372 | 0.10% |
| Junior subordinated debentures | 101,196 | 2.14% | 101,196 | 2.16% | 101,196 | 2.22% | 82,295 | 2.11% | 75,422 | 2.17% |
| Long-term debt | 308,969 | 3.29% | 309,069 | 3.29% | 355,702 | 3.41% | 382,177 | 3.83% | 367,312 | 3.93% |
| Total interest bearing liabilities | $ 5,110,003 | 0.55% | $ 5,096,599 | 0.57% | $ 5,136,194 | 0.62% | $ 4,409,299 | 0.76% | $ 4,195,898 | 0.80% |
| Demand deposits | 1,595,145 | 1,559,506 | 1,496,486 | 1,283,737 | 1,210,440 | |||||
| Other liabilities | 84,730 | 82,896 | 78,660 | 67,297 | 68,477 | |||||
| Stockholders' equity | 806,791 | 794,272 | 806,200 | 642,693 | 579,211 | |||||
| Total liabilities and stockholders' equity | $ 7,596,669 | $ 7,533,273 | $ 7,517,540 | $ 6,403,026 | $ 6,054,026 | |||||
| Interest rate spread | 3.47% | 3.51% | 3.54% | 3.49% | 3.63% | |||||
| Net interest margin | 3.61% | 3.65% | 3.69% | 3.68% | 3.83% | |||||
| (1) Securities are shown at average amortized cost |
| (2) Excluding unrealized gains or losses |
| (3) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding |
| NBT Bancorp Inc. and Subsidiaries | ||||||
| AVERAGE YEAR-END BALANCE SHEETS | ||||||
| (unaudited, dollars in thousands) | ||||||
| Average | Yield/ | Average | Yield/ | |||
| Balance | Interest | Rates | Balance | Interest | Rates | |
| Twelve Months ended December 31, | 2013 | 2012 | ||||
| ASSETS: | ||||||
| Short-term interest bearing accounts | $30,522 | $116 | 0.38% | $66,207 | $179 | 0.27% |
| Securities available for sale (1)(2) | 1,349,887 | 27,357 | 2.03% | 1,177,969 | 28,904 | 2.45% |
| Securities held to maturity (1) | 88,193 | 3,692 | 4.19% | 65,582 | 3,583 | 5.46% |
| Investment in FRB and FHLB Banks | 37,998 | 1,771 | 4.66% | 28,358 | 1,378 | 4.86% |
| Loans and leases (3) | 5,106,607 | 239,572 | 4.69% | 4,053,420 | 209,370 | 5.17% |
| Total interest earning assets | $ 6,613,207 | $ 272,508 | 4.12% | $ 5,391,536 | $ 243,414 | 4.51% |
| Other assets | 653,432 | 483,248 | ||||
| Total assets | $ 7,266,639 | $ 5,874,784 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||
| Money market deposit accounts | $1,343,801 | 2,004 | 0.15% | $1,116,583 | $ 2,054 | 0.18% |
| NOW deposit accounts | 882,629 | 1,468 | 0.17% | 709,889 | 1,854 | 0.26% |
| Savings deposits | 929,226 | 789 | 0.08% | 680,092 | 522 | 0.08% |
| Time deposits | 1,069,228 | 12,029 | 1.13% | 993,117 | 14,418 | 1.45% |
| Total interest bearing deposits | $ 4,224,884 | $ 16,290 | 0.39% | $ 3,499,681 | $ 18,848 | 0.54% |
| Short-term borrowings | 280,848 | 515 | 0.18% | 165,742 | 188 | 0.11% |
| Trust preferred debentures | 96,536 | 2,084 | 2.16% | 75,422 | 1,730 | 2.29% |
| Long-term debt | 338,697 | 11,755 | 3.47% | 368,270 | 14,428 | 3.92% |
| Total interest bearing liabilities | $ 4,940,965 | $ 30,644 | 0.62% | $ 4,109,115 | $ 35,194 | 0.86% |
| Demand deposits | 1,484,193 | 1,139,896 | ||||
| Other liabilities | 78,455 | 64,551 | ||||
| Stockholders' equity | 763,026 | 561,222 | ||||
| Total liabilities and stockholders' equity | $ 7,266,639 | $ 5,874,784 | ||||
| Net interest income (FTE) | 241,864 | 208,220 | ||||
| Interest rate spread | 3.50% | 3.65% | ||||
| Net interest margin | 3.66% | 3.86% | ||||
| Taxable equivalent adjustment | 3,785 | 4,017 | ||||
| Net interest income | $ 238,079 | $ 204,203 | ||||
| (1) Securities are shown at average amortized cost |
| (2) Excluding unrealized gains or losses |
| (3) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding |
| NBT Bancorp Inc. and Subsidiaries | ||||||
| CONSOLIDATED LOAN BALANCES | ||||||
| (unaudited, dollars in thousands) | ||||||
| 2013 | ||||||
| 2013 | 2012 | Acquired | ||||
| 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | Balances * | |
| Residential real estate mortgages | $ 1,041,637 | $ 1,028,158 | $ 1,001,642 | $ 996,925 | $ 651,107 | $ 333,105 |
| Commercial | 859,026 | 849,095 | 867,513 | 829,766 | 694,799 | 179,672 |
| Commercial real estate mortgages | 1,328,313 | 1,302,978 | 1,241,271 | 1,233,763 | 1,072,807 | 117,752 |
| Real estate construction and development | 93,247 | 116,662 | 152,548 | 136,402 | 123,078 | -- |
| Agricultural and agricultural real estate mortgages | 112,035 | 110,113 | 107,565 | 107,023 | 112,687 | -- |
| Consumer | 1,352,638 | 1,327,203 | 1,284,888 | 1,253,645 | 1,047,856 | 200,470 |
| Home equity | 619,899 | 633,022 | 635,283 | 637,509 | 575,282 | 73,474 |
| Total loans | $ 5,406,795 | $ 5,367,231 | $ 5,290,710 | $ 5,195,033 | $ 4,277,616 | $ 904,473 |
| * Balances are as of Alliance acquisition date of March 8, 2013 |