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NBT Bancorp Inc. Announces Record Third Quarter Earnings and a 5% Cash Dividend Increase

NBT Bancorp Inc. Announces Record Third Quarter Earnings and a 5% Cash
Dividend Increase

NORWICH, N.Y., Oct. 28, 2013 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (NBT)
(Nasdaq:NBTB) reported net income for the three months ended September 30,
2013 of $19.3 million, up from $16.9 million from the prior quarter, and up
from $14.5 million for the third quarter of 2012. Reported earnings per
diluted share for the three months ended September 30, 2013 was $0.44 as
compared to $0.38 from the prior quarter and $0.43 for the third quarter of
2012. The third quarter 2013 earnings represent the third highest quarterly
earnings per diluted share reported in the Company's history.

Core net income for the three months ended September 30, 2013 was $19.4
million, up 8.5% from $17.8 million for the prior quarter, and up 34.9% from
$14.4 million for the third quarter of 2012. Core diluted earnings per share
for the three months ended September 30, 2013 was $0.44, up from $0.40 for the
prior quarter, and up from $0.42 for the third quarter of 2012.

Reported net income for the nine months ended September 30, 2013 was $43.8
million, up from $41.4 million for the same period last year. 2013 results
included the impact of the acquisition of Alliance in March 2013, including
approximately $12.3 million in merger related expenses. Reported diluted
earnings per share for the nine months ended September 30, 2013 was $1.05, as
compared to $1.23 for the same period in 2012.

Core net income for the nine months ended September 30, 2013 was $51.5
million, up 24.9% from $41.2 million for the same period in 2012, due
primarily to the impact of the Alliance acquisition. Core diluted earnings per
share for the nine months ended September 30, 2013 was $1.23, equivalent to
the same period last year.

Third Quarter Highlights:

  *Core diluted EPS $0.44, up from $0.40 in the prior quarter and $0.42 for
    the third quarter of 2012
  *Strong loan growth continued in the third quarter (5.7% annualized)
  *Continued progress on operational efficiencies

"We are very pleased with our third quarter results, which were characterized
by strong organic loan growth, earnings growth, stable asset quality and
continued improvement in operational efficiencies," said NBT President and CEO
Martin Dietrich. "In addition, we are especially proud of the successful
integration of Alliance Bank into NBT Bank that has strengthened our position
in central New York. Through this acquisition, which is the largest in NBT's
history, we have achieved the cost savings and operational synergies we
identified and ushered in a new era for NBT. Over the last two years, we have
added $2 billion to our balance sheet through strategic expansion, providing
NBT with significant new growth opportunities in markets where we believe we
are well positioned to build upon our foundations and leverage the strong
potential that exists. Finally, we are glad to have the opportunity to share
our successes with our shareholders in the form of a 5% cash dividend
increase."

Net interest income was $62.2 million for the three months ended September 30,
2013, up marginally from the prior quarter, and up $9.6 million from the third
quarter of 2012 primarily due to the acquisition of Alliance. Average interest
earning assets were up $50.1 million, or 0.7%, for the third quarter of 2013
as compared to the prior quarter, driven primarily by organic loan production
during the third quarter. This increase was offset by a decrease in the yields
on interest earning assets from 4.16% for the second quarter of 2013 to 4.08%
for the third quarter, driven primarily by the 13 bp decrease in loan yields.
Average interest bearing liabilities showed a 0.8% decrease from the second
quarter of 2013 to the third quarter and rates paid on interest bearing
liabilities decreased 5 bps during the same period resulting in a 7.6%
decrease in interest expense from the second quarter of 2013 to the third
quarter.

The Company's Fully Tax Equivalent ("FTE") net interest margin was 3.65% for
the three months ended September 30, 2013, down from 3.69% from the prior
quarter, and down from 3.90% for the third quarter of 2012. Rate compression
on earning assets continued to negatively impact net interest margin in the
third quarter of 2013 as evidenced by decreasing loan yields from 4.76% for
the second quarter of 2013 to 4.63% for the third quarter of 2013. The rate
compression on earning assets was partially offset by the 5 bp decrease in the
rates paid on interest bearing liabilities in the third quarter of 2013 versus
the prior quarter. This decrease was primarily driven by decreases in rates
paid on long-term debt as maturing higher cost borrowings were replaced with
lower rate short term borrowings.

Net interest income was $176.0 million for the nine months ended September 30,
2013, up 16.0% from the same period in 2012.This increase from the prior year
was due primarily to the 22.0% increase in average earning assets for the nine
months ended September 30, 2013 over the prior year.The acquisition of
Alliance in March 2013 as well as the full year impact of 2012 loan growth
contributed to the growth in average earning assets.

The Company's FTE net interest margin was 3.67% for the nine months ended
September 30, 2013, down from 3.87% for the same period last year.Rate
compression on earning assets continued to negatively impact net interest
margin for the first nine months of 2013 as evidenced by decreasing loan
yields from 5.21% for the first nine months of 2012 to 4.75% for the first
nine months of 2013.In addition, yields on available for sale securities
declined 49 bps in the first nine months of 2013 as compared to the same
period in 2012. The rate compression on earning assets was partially offset
by the 24 bp decrease in the rates paid on interest bearing liabilities in the
first nine months of 2013 as compared to the same period in 2012.

Noninterest income for the three months ended September 30, 2013 was $27.1
million, up 6.3% from the prior quarter, and up 25.5% from the third quarter
of 2012 due primarily to the acquisition of Alliance.The increase from the
prior quarter was driven primarily by an increase in other noninterest income,
which increased $0.8 million from the prior quarter.Increases in loan fees
collected and swap fees recognized during the third quarter contributed to
this increase.In addition, the Company recorded $0.3 million in securities
gains during the third quarter, as compared to securities losses totaling $0.1
million for the second quarter of 2013.

Noninterest income for the nine months ended September 30, 2013 was $77.9
million, up 19.2% from the same period in 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, the Company experienced a 9.8% increase
in insurance and financial services revenue for the nine months ended
September 30, 2013 as compared to the same period in 2012, due primarily to an
increase in insurance revenue of $1.0 million as well as an increase in
financial services revenue of $0.6 million.Retirement plan administration
fees were also up 16.6% for the nine months ended September 30, 2013 as
compared to the same period in 2012 due to growth in new business of 2013.

Noninterest expense for the three months ended September 30, 2013 was $56.3
million, down 0.3% from the prior quarter, and up 13.9% from the third quarter
of 2012 primarily due to the acquisition of Alliance.Excluding merger
expenses totaling $0.3 million and $1.3 million during the third quarter and
second quarter of 2013, respectively, noninterest expense was up $0.8 million,
or 1.4%, for the third quarter of 2013 as compared to the prior
quarter.Income tax expense for the three month period ended September 30,
2013 was $8.6 million, up from $7.4 million from the prior quarter, and up
from $5.5 million for the third quarter of 2012.The increase from previous
quarters is due primarily to the increase in pre-tax income during the third
quarter. The effective tax rate was 31.0% for the third quarter and 30.5% for
the second quarter of 2013.

Noninterest expense for the nine months ended September 30, 2013 was $173.4
million, up $28.1 million or 19.4%, from the same period in 2012.Excluding
merger expenses totaling $12.3 million and $1.9 million for the nine months
ended September 30, 2013 and 2012, respectively, noninterest expense was up
$17.8 million, or 12.4%, for the first nine months of 2013 as compared to the
same period in 2012.Several noninterest expense categories were affected by
the acquisition of Alliance in March 2013 and the full year impact of the 2012
acquisition of Hampshire First Bank with salaries and employee benefits and
occupancy expenses being the primary drivers of the increase over last
year.Income tax expense for the nine months ended September 30, 2013 was
$19.4 million, up from $17.0 million from the same period in 2012 due
primarily to the increase in pre-tax income for the first nine months of 2013
and an increase in the effective tax rate to 30.7% for the nine months ended
September 30, 2013 as compared with 29.1% for the same period last year.

Asset Quality

Net charge-offs were $6.2 million for the three months ended September 30,
2013, up from $4.0 million for the prior quarter, due primarily to the third
quarter charge-off of one commercial real estate loan that was provided for in
the prior quarter.The Company recorded a provision for loan losses of $5.2
million for the three months ended September 30, 2013, compared with $6.4
million for the prior quarter, and $4.8 million for the third quarter of
2012.The decrease from the prior quarter was due primarily to a $1.4 million
specific reserve established on the aforementioned commercial real estate loan
during the second quarter of 2013. 

Net charge-offs were $16.4 million for the nine months ended September 30,
2013, up from $13.9 million from the same period in 2012 due primarily to two
commercial loan charge-offs in 2013 totaling $3.7 million, of which $2.2
million was previously provided for in 2012.Annualized net charge-offs to
average loans for the nine months ended September 30, 2013 was 0.44%, compared
to 0.47% for the same period last year.The Company recorded a provision for
loan losses of $17.3 million for the nine months ended September 30, 2013,
compared with $13.3 million for the same period in 2012.This increase was due
primarily to organic loan growth during the period and a higher level of
charge-offs in 2013.

Nonperforming loans to total loans was 0.83% at September 30, 2013, up 3 bps
from the prior quarter, and down from 0.98% at December 31, 2012.Past due
loans as a percentage of total loans were 0.70% for the third quarter as
compared to 0.71% for the second quarter of 2013, as well as December 31,
2012.

The allowance for loan losses totaled $70.2 million at September 30, 2013,
compared to $71.2 million at June 30, 2013 and $69.3 million at December 31,
2012.The allowance for loan losses as a percentage of loans was 1.31% (1.60%
excluding acquired loans with no related allowance recorded) at September 30,
2013, compared to 1.35% (1.68% excluding acquired loans with no related
allowance recorded) at June 30, 2013 and 1.62% (1.71% excluding acquired loans
with no related allowance recorded) at December 31, 2012.

Balance Sheet

Total assets were $7.7 billion at September 30, 2013, up $1.6 billion
(approximately $1.4 billion from Alliance acquisition) or 26.9% from December
31, 2012.Loans were $5.4 billion at September 30, 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 the second
and third quarters of 2013.Total deposits were $6.0 billion at September 30,
2013, up $1.2 billion from December 31, 2012, primarily due to the Alliance
acquisition. Stockholders' equity was $795.6 million, representing a total
equity-to-total assets ratio of 10.37% at September 30, 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, the Company purchased
584,925 shares of its common stock during the nine month period ended
September 30, 2013, for a total of $12.5 million at an average price of $21.30
per share.At September 30, 2013, there were 163,088 shares available for
repurchase under this plan, which expires on December 31, 2013. On July 22,
2013, the NBT Board of Directors authorized a new repurchase program for NBT
to repurchase up to an additional 1,000,000 shares of its outstanding common
stock.This plan expires on December 31, 2014.

Dividend

The NBT Board of Directors declared a 2013 fourth-quarter cash dividend of
$0.21 per share at a meeting held today. This marks a 5% increase from the
prior quarter dividend.The dividend will be paid on December 15, 2013 to
shareholders of record as of December 1, 2013.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich,
N.Y., with total assets of $7.7 billion at September 30, 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 160 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 35 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; (7) adverse changes may
occur in the securities markets or with respect to inflation; (8) operating
costs, customer losses and business disruption following the recently
completed acquisition of alliance, including adverse effects of relationships
with employees, may be greater than expected; and (9) the risk that the
anticipated benefits, costs savings and any other savings from the merger may
not be fully realized or may take longer than expected to realize.
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 the Company's performance and financial
condition as reported under GAAP and all other relevant information when
assessing the performance or financial condition of the Company.

NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL DATA
(unaudited, dollars in thousands except per share data)
                                                               
                     2013                               2012
                     3rd Q       2nd Q       1st Q      4th Q      3rd Q
Reconciliation of
Non-GAAP Financial                                              
Measures:
Reported net income   $19,257     $16,916     $7,649     $13,116    $14,535
(GAAP)
Adj: (Gain) / Loss on
sale of securities,   (228)       42          (795)      (15)       (18)
net (net of tax)
Adj: Other
adjustments (net of   110        --        --       --       239
tax) (1)
Plus: Merger related  224         882         7,423      496        388
expenses (net of tax)
Reversal of uncertain --        --        --       --       (790)
tax position
Total Adjustments     106         924         6,628      481        (181)
Core net income       $19,363     $17,840     $14,277    $13,597    $14,354
                                                               
Profitability:                                                  
Core Diluted Earnings $0.44       $0.40       $0.39      $0.40      $0.42
Per Share
Diluted Earnings Per  $0.44       $0.38       $0.21      $0.39      $0.43
Share
Weighted Average
DilutedCommon Shares 44,135,114  44,316,531  36,794,356 33,987,465 33,961,375
Outstanding
Core Return on        1.02%       0.95%       0.90%      0.89%      0.96%
Average Assets (2)
Return on Average     1.01%       0.90%       0.48%      0.86%      0.97%
Assets (2)
Core Return on        9.67%       8.88%       9.01%      9.34%      10.00%
Average Equity (2)
Return on Average     9.62%       8.42%       4.83%      9.01%      10.13%
Equity (2)
Core Return on
Average Tangible      15.95%      14.57%      13.58%     13.71%     14.74%
Common Equity (2)(4)
Return on Average
Tangible Common       15.86%      13.85%      7.49%      13.25%     14.93%
Equity (2)(4)
Net Interest Margin   3.65%       3.69%       3.68%      3.83%      3.90%
(3)
                                                               
Nine Months Ended                                               
September 30,
                                                               
Reconciliation of
Non-GAAP Financial    2013        2012                            
Measures:
Reported net income   $43,822     $41,442                         
(GAAP)
Adj: (Gain) / Loss on
sale of securities,   (981)      (405)                          
net (net of tax)
Adj: Other
adjustments (net of   110        (365)                          
tax) (6)
Plus: Merger related  8,529      1,322                          
expenses (net of tax)
Reversal of uncertain --        (790)                          
tax position
Total Adjustments     7,658       (238)                           
Core net income       $51,480     $41,204                         
                                                               
Profitability:                                                  
Core Diluted Earnings $1.23       $1.23                           
Per Share
Diluted Earnings Per  $1.05       $1.23                           
Share
Weighted Average
DilutedCommon Shares 41,768,796  33,626,071                      
Outstanding
Core Return on        0.96%       0.95%                           
Average Assets (2)
Return on Average     0.82%       0.95%                           
Assets (2)
Core Return on        9.20%       9.91%                           
Average Equity (2)
Return on Average     7.83%       9.97%                           
Equity (2)
Core Return on
Average Tangible      14.75%      14.37%                          
Common Equity (2)(5)
Return on Average
Tangible Common       12.64%      14.45%                          
Equity (2)(5)
Net Interest Margin   3.67%       3.87%                           
(3)
                                                               
(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
                     3rd Q       2nd Q       1st Q      4th Q      3rd Q
Average stockholders' $794,273  $806,200  $642,693 $579,211 $570,880
equity
Less: average
goodwill and other    292,271    292,775    200,779   169,612   169,445
intangibles
Average tangible      $502,002  $513,425  $441,914 $409,599 $401,435
common equity
                                                               
(5)Excludes amortization of intangible assets (net of tax) from net income
and average tangible common equity is calculated as follows:
                                                               
                     9 Months ended                             
                      September 30,
                     2013        2012                            
Average stockholders' $748,277  $555,182                      
equity
Less: average
goodwill and other    262,277    158,035                        
intangibles
Average tangible      $486,000  $397,147                      
common equity
                                                               
(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
                  3rd Q       2nd Q       1st Q       4th Q       3rd Q
Balance Sheet                                                  
Data:
Securities         $1,385,734  $1,390,403  $1,465,791  $1,147,999  $1,191,107
Available for Sale
Securities Held to 118,259    122,302    62,474     60,563     61,302
Maturity
Net Loans          5,297,047  5,219,526  5,126,299  4,208,282  4,180,385
Total Assets       7,668,903  7,534,518  7,610,831  6,042,259  6,028,916
Total Deposits     6,003,138  5,878,176  6,015,963  4,784,349  4,806,015
Total Borrowings   783,439    795,918    715,728    605,855    579,931
Total Liabilities  6,873,344  6,742,943  6,807,536  5,459,986  5,452,255
Stockholders'      795,559    791,575    803,295    582,273    576,661
Equity
                                                              
Asset Quality:                                                 
Nonaccrual Loans   $41,418     $40,525     $41,726     $39,676     $42,661
90 Days Past Due   3,286      2,004      1,651      2,448      2,963
and Still Accruing
Total
Nonperforming      44,704     42,529     43,377     42,124     45,624
Loans
Other Real Estate  3,626      3,757      2,864      2,276      1,863
Owned
Total
Nonperforming      48,330     46,286     46,241     44,400     47,487
Assets
Allowance for Loan 70,184     71,184     68,734     69,334     70,734
Losses
Allowance for Loan
Losses to Total    1.60%       1.68%       1.69%       1.72%       1.77%
Originated Loans
(1)
Allowance for Loan
Losses to Total    1.31%       1.35%       1.32%       1.62%       1.66%
Loans
Total
Nonperforming      0.83%       0.80%       0.83%       0.98%       1.07%
Loans to Total
Loans
Total
Nonperforming      0.63%       0.61%       0.61%       0.73%       0.79%
Assets to Total
Assets
Past Due Loans to  0.70%       0.71%       0.81%       0.71%       0.65%
Total Loans
Allowance for Loan
Losses to Total    157.00%     167.38%     158.46%     164.60%     155.04%
Nonperforming
Loans
Net Charge-Offs to 0.46%       0.30%       0.56%       0.78%       0.45%
Average Loans (4)
                                                              
Capital:                                                       
Equity to Assets   10.37%      10.51%      10.55%      9.64%       9.56%
Book Value Per     $18.38      $18.18      $18.36      $17.24      $17.09
Share
Tangible Book
Value Per Share    $11.64      $11.46      $11.67      $12.23      $12.06
(2)
Tier 1 Leverage    8.79%       8.72%       10.25%      8.54%       8.51%
Ratio (3)
Tier 1 Capital     11.46%      11.20%      11.33%      11.00%      10.82%
Ratio
Total Risk-Based   12.71%      12.45%      12.58%      12.25%      12.07%
Capital Ratio
Common Stock Price $22.98      $21.17      $22.15      $20.27      $22.07
(End of Period)
                                                              
(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)
                                                                
                                                   September 30, December 31,
ASSETS                                              2013          2012
Cash and due from banks                             $205,884    $157,094
Short term interest bearing accounts                2,358        6,574
Securities available for sale, at fair value       1,385,734    1,147,999
Securities held to maturity (fair value of $115,622
and $61,535 at September 30, 2013 and December 31,  118,259      60,563
2012, respectively)
Trading securities                                  5,285        3,918
Federal Reserve and Federal Home Loan Bank stock    43,490       29,920
Loans                                               5,367,231    4,277,616
Less allowance for loan losses                      70,184       69,334
Net loans                                         5,297,047     4,208,282
Premises and equipment, net                         86,891       77,875
Goodwill                                            265,052      152,373
Intangible assets, net                              26,857       16,962
Bank owned life insurance                           113,821      80,702
Other assets                                        118,225      99,997
TOTAL ASSETS                                        $7,668,903  $6,042,259
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
Deposits:                                                        
Demand (noninterest bearing)                       $1,595,571  $1,242,712
Savings, NOW, and money market                     3,343,837    2,558,376
Time                                               1,063,730    983,261
Total deposits                                     6,003,138     4,784,349
Short-term borrowings                               373,234      162,941
Long-term debt                                      309,009      367,492
Junior subordinated debt                            101,196      75,422
Other liabilities                                   86,767       69,782
Total liabilities                                  6,873,344     5,459,986
                                                                
Total stockholders' equity                          795,559      582,273
                                                                
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY          $7,668,903  $6,042,259
                                                                



NBT Bancorp Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, dollars in thousands except per share data)
                                                                
                                    Three Months Ended  Nine Months Ended
                                    September 30,      September 30,
                                    2013      2012      2013       2012
Interest, fee and dividend income:                               
Loans                                $61,773 $53,817 $177,499 $154,534
Securities available for sale        6,520     6,550    18,803    21,024
Securities held to maturity          804       572      1,877     1,829
Other                                472       348      1,363     1,153
Total interest, fee and dividend    69,569   61,287   199,542   178,540
income
Interest expense:                                                
Deposits                             3,999     4,544    12,445    14,521
Short-term borrowings                232       60       341       149
Long-term debt                       2,561     3,640    9,196     10,801
Trust preferred debt                 551       436      1,539     1,319
Total interest expense              7,343    8,680    23,521    26,790
Net interest income                  62,226   52,607   176,021   151,750
Provision for loan losses            5,198     4,755    17,258    13,329
Net interest income after provision 57,028   47,852   158,763   138,421
for loan losses
Noninterest income:                                              
Insurance and other financial        6,038     5,591    18,686    17,024
services revenue
Service charges on deposit accounts  5,055     4,626    14,311    13,538
ATM and debit card fees              4,276     3,378    11,562    9,403
Retirement plan administration fees  3,062     2,718    8,701     7,462
Trust                                4,345     2,242    11,957    6,683
Bank owned life insurance income     913       639      2,648     2,228
Net securities gains                 329       26       1,413     578
Other                                3,129     2,407    8,635     8,449
Total noninterest income            27,147   21,627   77,913    65,365
Noninterest expense:                                             
Salaries and employee benefits       29,267    26,641   85,474    78,358
Occupancy                            5,262     4,437    15,458    13,150
Data processing and communications   4,059     3,352    11,368    10,041
Professional fees and outside        3,202     2,735    9,340     7,848
services
Equipment                            2,988     2,435    8,480     7,224
Office supplies and postage          1,640     1,597    4,886     4,842
FDIC expenses                        1,285    939      3,688     2,812
Advertising                         722       701      2,445     2,308
Amortization of intangible assets    1,346     870      3,548     2,530
Loan collection and other real       886       614      2,025     2,051
estate owned
Merger related                       326      558      12,276    1,895
Other operating                      5,303     4,552    14,453    12,236
Total noninterest expense           56,286    49,431    173,441    145,295
Income before income taxes           27,889    20,048    63,235     58,491
Income taxes                         8,632     5,513    19,413    17,049
Net income                          $19,257 $14,535 $43,822  $41,442
Earnings Per Share:                                              
Basic                               $0.44   $0.43   $1.06    $1.24
Diluted                             $0.44   $0.43   $1.05    $1.23
                                                                
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
                            3rd Q     2nd Q     1st Q     4th Q     3rd Q
Interest, fee and dividend                                       
income:
Loans                        $61,773 $62,031 $53,695 $53,924 $53,817
Securities available for     6,520     6,537     5,746     5,981     6,550
sale
Securities held to maturity  804       548       525       549       572
Other                        472       488       403       403       348
Total interest, fee and     69,569    69,604    60,369    60,857    61,287
dividend income
Interest expense:                                                
Deposits                     3,999     4,296     4,150     4,327     4,544
Short-term borrowings        232       67        42        39        60
Long-term debt               2,561     3,026     3,609     3,627     3,640
Junior subordinated debt     551       560       428       411       436
Total interest expense      7,343     7,949     8,229     8,404     8,680
Net interest income          62,226    61,655    52,140    52,453    52,607
Provision for loan losses    5,198     6,402     5,658     6,940     4,755
Net interest income after   57,028    55,253    46,482    45,513    47,852
provision for loan losses
Noninterest income:                                              
Insurance and other          6,038     5,755     6,893     5,363     5,591
financial services revenue
Service charges on deposit   5,055     4,933     4,323     4,687     4,626
accounts
ATM and debit card fees      4,276     4,044     3,242     2,955     3,378
Retirement plan              3,062     2,957     2,682     2,635     2,718
administration fees
Trust                       4,345     4,699     2,913     2,489     2,242
Bank owned life insurance    913       886       849       849       639
income
Net securities gains         329       (61)      1,145     21        26
(losses)
Other                        3,129     2,324     3,182     2,963     2,407
Total noninterest income    27,147    25,537    25,229    21,962    21,627
Noninterest expense:                                             
Salaries and employee        29,267    29,160    27,047    26,457    26,641
benefits
Occupancy                    5,262     5,219     4,977     4,265     4,437
Data processing and          4,059     3,854     3,455     3,396     3,352
communications
Professional fees and        3,202     3,237     2,901     2,615     2,735
outside services
Equipment                    2,988     2,910     2,582     2,403     2,435
Office supplies and postage  1,640     1,656     1,590     1,647     1,597
FDIC expenses                1,285     1,273     1,130     1,020     939
Advertising                  722       1,000     723       581       701
Amortization of intangible   1,346     1,351     851       864       870
assets
Loan collection and other    886       421       718       509       614
real estate owned
Merger                       326       1,269     10,681    713       558
Other operating              5,303     5,100     4,050     4,122     4,552
Total noninterest expense   56,286    56,450    60,705    48,592    49,431
Income before income taxes   27,889    24,340    11,006    18,883    20,048
Income taxes                 8,632     7,424     3,357     5,767     5,513
Net income                 $19,257 $16,916 $7,649  $13,116 $14,535
Earnings per share:                                              
Basic                       $0.44   $0.39   $0.21   $0.39   $0.43
Diluted                     $0.44   $0.38   $0.21   $0.39   $0.43
                                                                
Note:Year-to-date (YTD) EPS may not equal sum of quarters due to share count
differences.
                                                                



NBT Bancorp Inc. and Subsidiaries
AVERAGE 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
             Q3 - 2013        Q2 - 2013        Q1 - 2013        Q4 - 2012        Q3 - 2012
ASSETS:                                                                             
Short-term
interest      $1,955   1.73% $41,313  0.57% $75,110  0.21% $72,660  0.26% $10,392  0.43%
bearing
accounts
Securities
available for 1,387,714 2.00% 1,428,864 1.97% 1,197,238 2.09% 1,123,110 2.27% 1,168,326 2.39%
sale (1)(2)
Securities
held to       118,781   3.54% 62,463    5.23% 52,905    6.06% 60,651    5.42% 62,746    5.46%
maturity (1)
Investment in
FRB and FHLB  43,895    4.20% 35,497    4.85% 31,312    4.75% 29,801    4.75% 28,706    4.67%
Banks
Loans (3)     5,309,446 4.63% 5,243,534 4.76% 4,492,106 4.87% 4,264,680 5.05% 4,197,046 5.12%
Total
interest      $         4.08% $         4.16% $         4.25% $         4.43% $         4.53%
earning       6,861,791        6,811,671        5,848,671        5,550,902        5,467,216
assets
Other assets  671,482        705,869        554,355        503,124        504,194   
Total assets  $              $              $              $              $         
              7,533,273        7,517,540        6,403,026        6,054,026        5,971,410
                                                                                   
LIABILITIES
AND                                                                                 
STOCKHOLDERS'
EQUITY:
Money market
deposit       $1,360,067 0.15% $1,402,429 0.15% $1,190,555 0.14% $1,149,248 0.14% $1,111,624 0.18%
accounts
NOW deposit   877,387   0.13% 927,037   0.19% 799,219   0.23% 752,737   0.25% 686,768   0.22%
accounts
Savings       984,093   0.09% 983,413   0.09% 770,559   0.08% 694,226   0.08% 706,927   0.08%
deposits
Time deposits 1,081,549 1.09% 1,136,511 1.10% 1,015,711 1.26% 1,006,581 1.31% 1,035,868 1.35%
Total
interest      $         0.37% $         0.39% $         0.45% $         0.48% $         0.51%
bearing       4,303,096        4,449,390        3,776,044        3,602,792        3,541,187
deposits
Short-term    383,238   0.24% 229,906   0.12% 168,783   0.10% 150,372   0.10% 178,277   0.13%
borrowings
Junior
subordinated  101,196   2.16% 101,196   2.22% 82,295    2.11% 75,422    2.17% 75,422    2.30%
debentures
Long-term     309,069   3.29% 355,702   3.41% 382,177   3.83% 367,312   3.93% 367,146   3.94%
debt
Total
interest      $         0.57% $         0.62% $         0.76% $         0.80% $         0.83%
bearing       5,096,599        5,136,194        4,409,299        4,195,898        4,162,032
liabilities
Demand        1,559,506      1,496,486      1,283,737      1,210,440      1,173,638 
deposits
Other         82,896         78,660         67,297         68,477         64,860    
liabilities
Stockholders' 794,272        806,200        642,693        579,211        570,880   
equity
Total
liabilities   $               $               $               $               $
and           7,533,273       7,517,540       6,403,026       6,054,026       5,971,410  
stockholders'
equity
                                                                                   
Interest rate           3.51%           3.54%           3.49%           3.63%           3.70%
spread
Net interest            3.65%           3.69%           3.68%           3.83%           3.90%
margin
                                                                                   
(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
            3rd Q        2nd Q       1st Q       4th Q       3rd Q       Balances *
Residential
real estate  $1,028,158 $1,001,642 $996,925  $651,107  $650,448  $333,105
mortgages
Commercial   849,095     867,513    829,766    694,799    697,213    179,672
Commercial
real estate  1,302,978   1,241,271  1,233,763  1,072,807  1,083,675  117,752
mortgages
Real estate
construction 116,662     152,548    136,402    123,078    99,181     --
and
development
Agricultural
and
agricultural 110,113     107,565    107,023    112,687    112,822    --
real estate
mortgages
Consumer     1,327,203   1,284,888  1,253,645  1,047,856  1,031,572  200,470
Home equity  633,022     635,283    637,509    575,282    576,208    73,474
Total loans $5,367,231 $5,290,710 $5,195,033 $4,277,616 $4,251,119 $904,473
                                                                    
*Balances are as of Alliance acquisition date of March 8, 2013
                                                                    



TABLE

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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