SOURCE: NBT Bancorp Inc.

January 25, 2010 18:36 ET

NBT Bancorp Inc. Announces Annual Earnings of $1.53 per Diluted Share; Declares Cash Dividend

NORWICH, NY--(Marketwire - January 25, 2010) - NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today net income per diluted share for the three months ended December 31, 2009 of $0.40 per share, as compared with $0.45 per share for the three months ended December 31, 2008. Annualized return on average assets and return on average equity were 1.00% and 10.92%, respectively, for the three months ended December 31, 2009, compared with 1.11% and 13.88%, respectively, for the three months ended December 31, 2008. Net interest margin was 4.15% for the three months ended December 31, 2009, up 9 basis points ("bp") from 4.06% for the three months ended December 31, 2008. Net income for the three months ended December 31, 2009 was $13.8 million, down $1.1 million, or 7.4%, from $14.9 million for the fourth quarter last year.

Net income per diluted share for the year ended December 31, 2009 was $1.53 per share, as compared with $1.80 per share for the year ended December 31, 2008. Return on average assets and return on average equity were 0.96% and 10.90%, respectively, for the year ended December 31, 2009, compared with 1.11% and 14.16%, respectively, for the year ended December 31, 2008. Net interest margin was 4.04% for the year ended December 31, 2009, up 9 bp from 3.95% for the year ended December 31, 2008. Net income for the year ended December 31, 2009 was $52.0 million, down $6.3 million, or 10.9%, from the year ended December 31, 2008.

For the three months ended December 31, 2009, FDIC expenses increased $0.5 million over the three months ended December 31, 2008. For the year ended December 31, 2009, FDIC expenses increased $6.6 million over the year ended December 31, 2008, including the special assessment of approximately $2.5 million. The FDIC premium increases had a $0.01 effect on diluted earnings per share for the three months ended December 31, 2009 and the FDIC premium increases and special assessment had a $0.14 effect on diluted earnings per share for the year ended December 31, 2009. For the three months ended December 31, 2009, pension expenses increased $0.6 million over the three months ended December 31, 2008. For the year ended December 31, 2009, pension expenses increased $2.8 million over the year ended December 31, 2008. The pension expense increases had a $0.02 and $0.06 effect on diluted earnings per share for the three months ended December 31, 2009 and for the year ended December 31, 2009, respectively.

NBT President and CEO Martin Dietrich said: "Many banks have struggled this past year. I am pleased that NBT achieved strong 2009 results in what remained a very challenging economic environment. Our earnings were at a level similar to our record year in 2008, except for increased FDIC and pension expenses. We achieved these results by continuing to focus on the fundamentals, including a strong balance sheet, an active lending program and strategic investments. Our successful capital raise in the second quarter, expansion into Vermont and the full-year impact of our acquisition of the Mang Insurance Agency are all examples of the ways we are continuing to invest in our future and position our company to benefit when the economy begins to recover."

Loan and Lease Quality and Provision for Loan and Lease Losses

Nonperforming loans at December 31, 2009 were $41.3 million or 1.13% of total loans and leases compared with $39.2 million or 1.08% at September 30, 2009 and $26.5 million or 0.73% at December 31, 2008. The increase in nonperforming loans at December 31, 2009 as compared with December 31, 2008 was primarily the result of specific commercial and agricultural credits.

The allowance for loan and lease losses totaled $66.6 million at December 31, 2009, $64.7 million at September 30, 2009 and $58.6 million at December 31, 2008. The increase from December 31, 2008 was due to an increase in specific reserves on specific nonaccrual loans in addition to increased reserve levels on certain loan types warranted by trends in economic factors during the year. As loans and leases are flat year over year, the allowance for loan losses as a percentage of loans and leases increased to 1.83% at December 31, 2009 from 1.60% at December 31, 2008 Past due loans as a percentage of total loans has improved to 0.89% at December 31, 2009, as compared with 1.00% at September 30, 2009 and 0.91% at December 31, 2008 which reflects the Company's continued commitment to diligent collection efforts.

The Company recorded a provision for loan and lease losses of $8.6 million during the fourth quarter of 2009 compared with $7.7 million during the fourth quarter of 2008. The increase in the provision for loan and lease losses for the three months ended December 31, 2009 as compared with the three months ended December 31, 2008 was due primarily to an increase in net charge-offs which totaled $6.7 million for the three month period ending December 31, 2009, up from $5.0 million for the three months ending December 31, 2008 due to continued effects of the economic recession. Net charge-offs to average loans and leases for the three months ended December 31, 2009 were 0.75%, compared with 0.79% for the three months ended September 30, 2009, and 0.55% for the three months ended December 31, 2008.

The Company recorded a provision for loan and lease losses of $33.4 million for the year ended December 31, 2009 compared with $27.2 million for the year ended December 31, 2008. The increase in the provision for loan and lease losses for the year ended December 31, 2009 was due primarily to an increase in net charge-offs which totaled $25.4 million for the year ended December 31, 2009, up from $22.8 million for the year ended December 31, 2008. Net charge-offs to average loans and leases for the year ended December 31, 2009 were 0.70%, compared with 0.64% for the year ended December 31, 2008.

Net Interest Income

Net interest income was up 5.5% to $51.6 million for the three months ended December 31, 2009 compared with $48.9 million for the three months ended December 31, 2008. The Company's fully taxable equivalent (FTE) net interest margin was 4.15% for the three months ended December 31, 2009, as compared with 4.06% for the three months ended December 31, 2008. The Company experienced a 2.6% growth in average earning assets for the three months ending December 31, 2009 as compared with the three months ending December 31, 2008, due primarily to increases in average short-term interest bearing accounts and average securities held to maturity. As a result of our excess liquidity, our Federal Funds sold position had a negative impact of 11 bp on our net interest margin for the three months ended December 31, 2009.

Although the yield on interest earning assets decreased 59 basis points, the yield on interest bearing liabilities declined 77 basis points, which contributed to the increase in the net interest margin for the three months ended December 31, 2009 compared to the same period for 2008. The yield on time deposits was 2.23% for the three months ended December 31, 2009, as compared with 3.27% for the three months ended December 31, 2008. The yield on money market deposit accounts was 0.88% for the three months ended December 31, 2009, as compared with 1.61% for the three months ended December 31, 2008. The yield on short term borrowings declined 49 basis points for the three months ended December 31, 2009 as compared to the three months ended December 31, 2008 as a result of the 175 basis point drop in the Fed Funds Target Rate during the fourth quarter of 2008.

Net interest income was up 5.6% to $196.5 million for the year ended December 31, 2009 compared with $186.0 million for the year ended December 31, 2008. The Company's fully taxable equivalent (FTE) net interest margin was 4.04% for the year ended December 31, 2009, as compared with 3.95% for the year ended December 31, 2008. In addition, the Company experienced a 2.8% growth in average earning assets for the year ended December 31, 2009 as compared with the year ended December 31, 2008, due primarily to increases in average loans and leases and short term interest bearing accounts. As a result of our excess liquidity, our Federal Funds sold position had a negative impact of 8 bp on our net interest margin for the year ended December 31, 2009.

Although the yield on interest earning assets decreased 59 basis points, the yield on interest bearing liabilities declined 79 basis points, which contributed to the increase in the net interest margin for the year ended December 31, 2009 compared to the year ended December 31, 2008. The yield on time deposits was 2.64% for the year ended December 31, 2009, as compared with 3.68% for the year ended December 31, 2008. The yield on money market deposit accounts was 1.20% for the year ended December 31, 2009, as compared with 1.85% for the year ended December 31, 2008. The yield on short term borrowings declined 178 basis points for the year ended December 31, 2009 as compared to the year ended December 31, 2008 as a result of the 400 bp drop in the Fed Funds Target Rate during 2008.

Noninterest Income

Noninterest income for the three months ended December 31, 2009 was $19.8 million, down $0.4 million or 1.9% from $20.2 million for the same period in 2008. The decrease in noninterest income was due primarily to a decrease in bank owned life insurance income of approximately $1.6 million for the three months ended December 31, 2009 as compared to the three months ended December 31, 2008 due primarily to a death benefit realized during the fourth quarter of 2008 from a life insurance policy. In addition, service charges on deposit accounts decreased approximately $0.5 million for the three month period ending December 31, 2009 as compared to the same period in 2008. These decreases were partially offset by an increase in retirement plan administration fees of approximately $1.3 million for the three month period ended December 31, 2009 as compared with the three month period ended December 31, 2008 as a result of organic growth from new business. In addition, trust income increased approximately $0.2 million for the three months ended December 31, 2009 as compared to the same period in 2008 as a result of an increase in fair value of trust assets under administration.

Noninterest income for the year ended December 31, 2009 was $80.1 million, up $8.4 million or 11.7% from $71.7 million for the same period in 2008. The increase in noninterest income was due primarily to an increase in insurance and broker/dealer revenue, which increased approximately $9.0 million for the year ended December 31, 2009 as compared with the year ended December 31, 2008. This increase was due primarily to revenue generated by Mang Insurance Agency, LLC, which was acquired on September 1, 2008. In addition, retirement plan administration fees increased approximately $2.8 million for the year ended December 31, 2009 as compared with the year ended December 31, 2008 as a result of organic growth from new business. These increases were partially offset by a decrease in bank owned life insurance income of approximately $1.8 million for the year ended December 31, 2009 as compared to the year ended December 31, 2008. This decrease was primarily due to the aforementioned death benefit realized during the fourth quarter of 2008 from a life insurance policy. In addition, net securities gains decreased by approximately $1.4 million for the year ended December 31, 2009 as compared with the year ended December 31, 2008.

Noninterest Expense and Income Tax Expense

Noninterest expense for the three months ended December 31, 2009 was $45.3 million, up from $40.3 million for the same period in 2008. Salaries and employee benefits increased $2.3 million, or 11.1%, for the three months ended December 31, 2009 compared with the same period in 2008. This increase was due primarily to increases in full-time-equivalent employees during 2009, largely due to the aforementioned acquisition and de novo branch activity. In addition, the Company experienced increases of approximately $0.6 million and $0.4 million in pension and medical expenses, respectively, for the three months ended December 31, 2009 as compared with the same period in 2008. FDIC expenses increased approximately $0.5 million to $1.3 million for the three months ended December 31, 2009, compared to $0.8 million for the same period in 2008 due to an increase in recurring FDIC premiums, which increased to $1.3 million for the three months ended December 31, 2009 as compared with $0.8 million for the same period last year. For the three month period ended December 31, 2009, other operating expenses totaled $6.5 million, up $1.8 million or 38.6%, from $4.7 million for the three months ended December 31, 2008. This increase resulted from a prepayment penalty incurred to payoff long-term debt during the fourth quarter of 2009 and a termination fee associated with the early termination of a vendor contract in the fourth quarter of 2009. Income tax expense for the three month period ended December 31, 2009 was $3.7 million, down from $6.2 million for the same period in 2008. The decrease in income tax expense is primarily the result of the decrease in pre-tax income.

Noninterest expense for the year ended December 31, 2009 was $170.6 million, up from $146.8 million for the same period in 2008. Salaries and employee benefits increased $14.4 million, or 20.2%, for the year ended December 31, 2009 compared with the same period in 2008. This increase was due primarily to increases in full-time-equivalent employees during 2009, largely due to the aforementioned acquisition and de novo branch activity. In addition, the Company experienced increases of approximately $2.8 million and $1.3 million in pension and medical expenses, respectively, for the year ended December 31, 2009 as compared with the same period in 2008. FDIC expenses increased approximately $6.6 million for the year ended December 31, 2009, compared with the year ended December 31, 2008. This increase was due to the special assessment imposed by the FDIC totaling approximately $2.5 million during the second quarter of 2009, in addition to increased recurring FDIC premiums. Amortization of intangible assets was $3.2 million for the year ended December 31, 2009, up $1.1 million from $2.1 million for same period in 2008 due to the aforementioned acquisition. Occupancy expenses were up approximately $1.1 million for the year ended December 31, 2009 as compared with the year ended December 31, 2008. This increase was due primarily to the aforementioned acquisition and de novo branch activity during the period. Income tax expense for the year ended December 31, 2009 was $20.6 million, down from $25.4 million for the same period in 2008. The decrease in income tax expense is primarily the result of the decrease in pre-tax income.

Balance Sheet

Total assets were $5.5 billion at December 31, 2009, up $127.9 million or 2.4% from $5.3 billion at December 31, 2008. Loans and leases were $3.6 billion at December 31, 2009, down $6.5 million from December 31, 2008. The Company experienced a shift from residential real estate mortgages, which decreased by approximately $99.8 million, or 13.8%, from December 31, 2008 to December 31, 2009, to consumer loans, which increased by approximately $61.8 million, or 7.8%, from December 31, 2008 to December 31, 2009. Total deposits were $4.1 billion at December 31, 2009, up $169.8 million or 4.3% from December 31, 2008. The increase from December 31, 2008 was due in large part to a $384.2 million, or 20.4%, increase in NOW, savings and money market accounts, and an increase in demand deposit accounts of $104.5 million. These increases were partially offset by a $318.9 million decrease in time deposits. Stockholders' equity was $505.1 million, representing a total equity-to-total assets ratio of 9.24% at December 31, 2009, compared with $431.8 million or a total equity-to-total assets ratio of 8.09% at December 31, 2008. The increase in stockholders' equity was due in large part to the Company completing a public offering of 1,576,230 shares of its common stock on April 1, 2009 and raising approximately $33.5 million in net proceeds.

Stock Repurchase Program

On October 26, 2009, the NBT Board of Directors authorized a new repurchase program for NBT to repurchase up to an additional 1,000,000 shares (approximately 3%) of its outstanding common stock, effective January 1, 2010, as market conditions warrant in open market and privately negotiated transactions. The plan expires on December 31, 2011. On December 31, 2009, the repurchase program previously authorized on January 28, 2008 to repurchase up to 1,000,000 shares expired. The Company made no purchases of its common stock securities during the year ended December 31, 2009.

Dividend Declared

The NBT Board of Directors declared a 2010 first-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on March 15, 2010, to shareholders of record as of March 1, 2010.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $5.5 billion at December 31, 2009. 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 123 locations, including 84 NBT Bank offices in upstate New York, 38 Pennstar Bank offices in northeastern Pennsylvania and one office in Burlington, Vermont. EPIC Advisors, Inc., based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm. Mang Insurance Agency, LLC, based in Norwich, 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.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 undertake to update forward-looking statements to reflect subsequent circumstances or events.



                    NBT Bancorp Inc. and Subsidiaries
                      SELECTED FINANCIAL HIGHLIGHTS
                                (unaudited)

                                                   Net          Percent
                    2009           2008           Change         Change
                -------------  -------------  -------------  -------------
                   (dollars in thousands,
                   except per share data)

Three Months
 Ended
 December 31,
Net Income      $      13,801  $      14,897  $      (1,096)            -7%
Diluted
 Earnings Per
 Share          $        0.40  $        0.45  $       (0.05)           -11%
Weighted
 Average Diluted
 Common Shares
 Outstanding       34,348,189     32,758,405      1,589,784              5%
Return on
 Average Assets
 (1)                     1.00%          1.11%        -11 bp            -10%
Return on
 Average Equity
 (1)                    10.92%         13.88%       -296 bp            -21%
Net Interest
 Margin (2)              4.15%          4.06%          9 bp              2%
                =============  =============  =============  =============

Year Ended
 December 31,
Net Income      $      52,011  $      58,353  $      (6,342)           -11%
Diluted
 Earnings Per
 Share          $        1.53  $        1.80  $       (0.27)           -15%
Weighted
 Average Diluted
 Common Shares
 Outstanding       33,902,517     32,427,193      1,475,324              5%
Return on
 Average Assets          0.96%          1.11%        -15 bp            -14%
Return on
 Average Equity         10.90%         14.16%       -326 bp            -23%
Net Interest
 Margin (2)              4.04%          3.95%          9 bp              2%
                =============  =============  =============  =============


Asset Quality    December 31,   December 31,
                     2009           2008
                -------------  -------------
Nonaccrual
 Loans          $      38,746  $      24,191
90 Days Past
 Due and Still
 Accruing       $       2,526  $       2,305
Total
 Nonperforming
 Loans          $      41,272  $      26,496
Other Real
 Estate Owned   $       2,358  $         665
Total
 Nonperforming
 Assets         $      43,630  $      27,161
Past Due Loans  $      32,349  $      33,098
Potential
 Problem Loans  $      79,072  $      95,423
Allowance for
 Loan and Lease
 Losses         $      66,550  $      58,564
Year-to-Date
 (YTD) Net
 Charge-Offs    $      25,406  $      22,800
Allowance for
 Loan and Lease
 Losses to
 Total Loans
 and Leases              1.83%          1.60%
Total
 Nonperforming
 Loans to Total
 Loans and
 Leases                  1.13%          0.73%
Total
 Nonperforming
 Assets to
 Total Assets            0.80%          0.51%
Past Due Loans
 to Total Loans
 and Leases              0.89%          0.91%
Allowance for
 Loan and Lease
 Losses to
 Total
 Nonperforming
 Loans                 161.25%        221.03%
Net Charge-Offs
 to YTD Average
 Loans and
 Leases                  0.70%          0.64%
                =============  =============

Capital
Equity to
 Assets                  9.24%          8.09%
Book Value Per
 Share          $       14.69  $       13.24
Tangible Book
 Value Per
 Share          $       10.75  $        9.01
Tier 1 Leverage
 Ratio                   8.35%          7.17%
Tier 1 Capital
 Ratio                  11.34%          9.75%
Total
 Risk-Based
 Capital Ratio          12.59%         11.00%
                =============  =============

Quarterly
 Common Stock
 Price              2009           2008           2007
Quarter End      High   Low     High   Low     High   Low
                ------ ------  ------ ------  ------ ------

March 31        $28.37 $15.42  $23.65 $17.95  $25.81 $21.73
June 30         $25.22 $20.49   25.00  20.33   23.45  21.80
September 30    $24.16 $20.57   36.47  19.05   23.80  17.10
December 31     $23.59 $19.43   30.83  21.71   25.00  20.58

(1)  Annualized
(2)  Calculated on a FTE basis




                    NBT Bancorp Inc. and Subsidiaries
                      SELECTED FINANCIAL HIGHLIGHTS
                                (unaudited)

                    December 31,  December 31,      Net         Percent
                        2009          2008         Change        Change
                    ------------- ------------- ------------  ------------
                      (dollars in thousands,
                      except per share data)
Balance Sheet
Loans and Leases    $   3,645,398 $   3,651,911 $     (6,513)            0%
Earning Assets      $   5,009,251 $   4,933,099 $     76,152             2%
Total Assets        $   5,464,026 $   5,336,088 $    127,938             2%
Deposits            $   4,093,046 $   3,923,258 $    169,788             4%
Stockholders'
 Equity             $     505,123 $     431,845 $     73,278            17%
                    ============= ============= ============  ============

                         2009          2008
                    ------------- -------------
                      (dollars in thousands,
                       except per share data)
Average Balances
Three Months Ended
 December 31,
Loans and Leases    $   3,628,244 $   3,634,346 $     (6,102)            0%
Securities
 Available For Sale
(excluding
 unrealized gains
 or losses)         $   1,124,877 $   1,117,469 $      7,408             1%
Securities Held To
 Maturity           $     165,108 $     140,141 $     24,967            18%
Trading Securities  $       2,312 $       1,855 $        457            25%
Regulatory Equity
 Investment         $      37,091 $      39,751 $     (2,660)           -7%
Short-Term Interest
 Bearing Accounts   $     122,104 $      17,151 $    104,953           612%
Total Earning
 Assets             $   5,077,424 $   4,948,858 $    128,566             3%
Total Assets        $   5,499,273 $   5,349,609 $    149,664             3%
Interest Bearing
 Deposits           $   3,352,879 $   3,267,893 $     84,986             3%
Non-Interest
 Bearing Deposits   $     748,451 $     695,696 $     52,755             8%
Short-Term
 Borrowings         $     159,050 $     181,032 $    (21,982)          -12%
Long-Term
 Borrowings         $     654,592 $     708,867 $    (54,275)           -8%
Total Interest
 Bearing
 Liabilities        $   4,166,521 $   4,157,792 $      8,729             0%
Stockholders'
 Equity             $     501,225 $     426,918 $     74,307            17%
                    ============= ============= ============  ============

Average Balances
Year Ended
 December 31,
Loans and Leases    $   3,641,852 $   3,567,299 $     74,553             2%
Securities
 Available For Sale
(excluding
 unrealized gains
 or losses)         $   1,095,609 $   1,113,810 $    (18,201)           -2%
Securities Held To
 Maturity           $     151,078 $     149,775 $      1,303             1%
Trading Securities  $       1,929 $       2,254 $       (325)          -14%
Regulatory Equity
 Investment         $      37,878 $      39,735 $     (1,857)           -5%
Short-Term Interest
 Bearing Accounts   $      88,012 $       9,190 $     78,822           858%
Total Earning
 Assets             $   5,014,429 $   4,879,809 $    134,620             3%
Total Assets        $   5,429,009 $   5,264,655 $    164,354             3%
Interest Bearing
 Deposits           $   3,340,735 $   3,239,029 $    101,706             3%
Non-Interest
 Bearing Deposits   $     718,580 $     682,656 $     35,924             5%
Short-Term
 Borrowings         $     140,066 $     223,830 $    (83,764)          -37%
Long-Term
 Borrowings         $     676,461 $     638,882 $     37,579             6%
Total Interest
 Bearing
 Liabilities        $   4,157,262 $   4,101,741 $     55,521             1%
Stockholders'
 Equity             $     477,299 $     412,102 $     65,197            16%
                    ============= ============= ============  ============




NBT Bancorp Inc. and Subsidiaries                 December 31, December 31,
Consolidated Balance Sheets (unaudited)               2009         2008
                                                  ------------ ------------
(in thousands)

ASSETS
Cash and due from banks                           $    107,980 $    107,409
Short term interest bearing accounts                    79,181        2,987
Securities available for sale, at fair value         1,116,758    1,119,665
Securities held to maturity (fair value of
 $161,851 and $141,308 at December 31, 2009
 and December 31, 2008, respectively)                  159,946      140,209
Trading securities                                       2,410        1,407
Federal Reserve and Federal Home Loan Bank stock        35,979       39,045
Loans and leases                                     3,645,398    3,651,911
Less allowance for loan and lease losses                66,550       58,564
                                                  ============ ============
  Net loans and leases                               3,578,848    3,593,347
Premises and equipment, net                             66,221       65,241
Goodwill                                               114,938      114,838
Intangible assets, net                                  20,590       23,367
Bank owned life insurance                               74,322       72,276
Other assets                                           106,853       56,297
                                                  ------------ ------------
TOTAL ASSETS                                      $  5,464,026 $  5,336,088
                                                  ============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
  Demand (noninterest bearing)                    $    789,989 $    685,495
  Savings, NOW, and money market                     2,269,779    1,885,551
  Time                                               1,033,278    1,352,212
                                                  ------------ ------------
    Total deposits                                   4,093,046    3,923,258
Short-term borrowings                                  155,977      206,492
Long-term debt                                         554,698      632,209
Trust preferred debentures                              75,422       75,422
Other liabilities                                       79,760       66,862
                                                  ------------ ------------
    Total liabilities                                4,958,903    4,904,243


Total stockholders' equity                             505,123      431,845
                                                  ============ ============

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY        $  5,464,026 $  5,336,088
                                                  ============ ============




NBT Bancorp Inc. and Subsidiaries   Three months ended      Year ended
Consolidated Statements of Income      December 31,        December 31,
 (unaudited)                          2009      2008      2009      2008
                                    --------  --------  --------- ---------
(in thousands, except per share
 data)
Interest, fee and dividend income:
Loans and leases                    $ 55,361  $ 58,164  $ 220,324 $ 232,155
Securities available for sale         10,810    13,434     45,972    54,048
Securities held to maturity            1,212     1,253      4,894     5,588
Other                                    621       436      2,203     2,623
                                    --------  --------  --------- ---------
  Total interest, fee and dividend
   income                             68,004    73,287    273,393   294,414
                                    --------  --------  --------- ---------
Interest expense:
Deposits                               9,532    16,371     48,496    76,132
Short-term borrowings                    139       382        552     4,847
Long-term debt                         5,673     6,401     23,629    22,642
Trust preferred debentures             1,036     1,200      4,247     4,747
                                    --------  --------  --------- ---------
  Total interest expense              16,380    24,354     76,924   108,368
                                    --------  --------  --------- ---------
Net interest income                   51,624    48,933    196,469   186,046
Provision for loan and lease losses    8,641     7,721     33,392    27,181
                                    --------  --------  --------- ---------
Net interest income after provision
 for loan and lease losses            42,983    41,212    163,077   158,865
                                    --------  --------  --------- ---------
Noninterest income:
Trust                                  1,881     1,685      6,719     7,278
Service charges on deposit accounts    6,808     7,266     27,165    28,143
ATM and debit card fees                2,346     2,176      9,339     8,832
Insurance and broker/dealer revenue    3,799     3,915     17,725     8,726
Net securities (losses)/gains             (2)       (8)       144     1,535
Bank owned life insurance income         910     2,484      3,135     4,923
Retirement plan administration fees    2,739     1,468      9,086     6,308
Other                                  1,365     1,244      6,818     5,961
                                    --------  --------  --------- ---------
  Total noninterest income            19,846    20,230     80,131    71,706
                                    --------  --------  --------- ---------
Noninterest expense:
Salaries and employee benefits        22,919    20,633     85,565    71,159
Office supplies and postage            1,472     1,354      5,857     5,346
Occupancy                              3,608     3,385     14,864    13,781
Equipment                              2,115     1,944      8,139     7,539
Professional fees and outside
 services                              2,688     2,651     10,508    10,476
Data processing and communications     3,314     3,254     13,238    12,694
Amortization of intangible assets        781       874      3,246     2,105
Loan collection and other real
 estate owned                            589       692      2,766     2,494
Impairment on lease residual assets        -         -          -     2,000
FDIC expenses                          1,312       827      8,408     1,813
Other operating                        6,492     4,684     17,975    17,406
                                    --------  --------  --------- ---------
  Total noninterest expense           45,290    40,298    170,566   146,813
                                    --------  --------  --------- ---------
Income before income taxes            17,539    21,144     72,642    83,758
Income taxes                           3,738     6,247     20,631    25,405
                                    --------  --------  --------- ---------
   Net income                       $ 13,801  $ 14,897  $  52,011 $  58,353
                                    --------  --------  --------- ---------
Earnings Per Share:
     Basic                          $   0.40  $   0.46  $    1.54 $    1.81
     Diluted                        $   0.40  $   0.45  $    1.53 $    1.80
                                    ========  ========  ========= =========




NBT Bancorp Inc. and
 Subsidiaries
Quarterly Consolidated
 Statements of Income        4Q        3Q        2Q        1Q        4Q
 (unaudited)                2009      2009      2009      2009      2008
                          --------  --------- --------- --------- --------
(in thousands, except per
 share data)
Interest, fee and
 dividend income:
Loans and leases          $ 55,361  $  54,666 $  54,886 $  55,411 $ 58,164
Securities available for
 sale                       10,810     11,116    11,671    12,375   13,434
Securities held to
 maturity                    1,212      1,239     1,209     1,234    1,253
Other                          621        615       606       361      436
                          --------  --------- --------- --------- --------
  Total interest, fee and
   dividend income          68,004     67,636    68,372    69,381   73,287
                          --------  --------- --------- --------- --------
Interest expense:
Deposits                     9,532     12,002    13,123    13,839   16,371
Short-term borrowings          139        142       124       147      382
Long-term debt               5,673      5,761     5,998     6,197    6,401
Trust preferred
 debentures                  1,036      1,049     1,076     1,086    1,200
                          --------  --------- --------- --------- --------
  Total interest expense    16,380     18,954    20,321    21,269   24,354
                          --------  --------- --------- --------- --------
Net interest income         51,624     48,682    48,051    48,112   48,933
Provision for loan and
 lease losses                8,641      9,101     9,199     6,451    7,721
                          --------  --------- --------- --------- --------
Net interest income after
 provision for loan and
 lease losses               42,983     39,581    38,852    41,661   41,212
                          --------  --------- --------- --------- --------
Noninterest income:
Trust                        1,881      1,668     1,761     1,409    1,685
Service charges on
 deposit accounts            6,808      7,110     6,950     6,297    7,266
ATM and debit card fees      2,346      2,443     2,368     2,182    2,176
Insurance and
 broker/dealer revenue       3,799      4,368     4,220     5,338    3,915
Net securities
 (losses)/gains                 (2)       129        17         -       (8)
Bank owned life insurance
 income                        910        683       670       872    2,484
Retirement plan
 administration fees         2,739      2,412     2,194     1,741    1,468
Other                        1,365      2,037     1,665     1,751    1,244
                          --------  --------- --------- --------- --------
  Total noninterest
   income                   19,846     20,850    19,845    19,590   20,230
                          --------  --------- --------- --------- --------
Noninterest expense:
Salaries and employee
 benefits                   22,919     21,272    19,947    21,427   20,633
Office supplies and
 postage                     1,472      1,426     1,429     1,530    1,354
Occupancy                    3,608      3,481     3,610     4,165    3,385
Equipment                    2,115      1,997     2,005     2,022    1,944
Professional fees and
 outside services            2,688      2,691     2,407     2,722    2,651
Data processing and
 communications              3,314      3,305     3,324     3,295    3,254
Amortization of
 intangible assets             781        827       825       813      874
Loan collection and other
 real estate owned             589        755       674       748      692
FDIC expenses                1,312      1,535     4,032     1,529      827
Other operating              6,492      3,743     3,686     4,054    4,684
                          --------  --------- --------- --------- --------
  Total noninterest
   expense                  45,290     41,032    41,939    42,305   40,298
                          --------  --------- --------- --------- --------
Income before income
 taxes                      17,539     19,399    16,758    18,946   21,144
Income taxes                 3,738      5,821     5,198     5,874    6,247
                          --------  --------- --------- --------- --------
   Net income             $ 13,801  $  13,578 $  11,560 $  13,072 $ 14,897
                          ========  ========= ========= ========= ========
Earnings per share:
   Basic                  $   0.40  $    0.40 $    0.34 $    0.40 $   0.46
   Diluted                $   0.40  $    0.40 $    0.34 $    0.40 $   0.45
                          ========  ========= ========= ========= ========




    Three months ended December 31,

                                 2009                        2008
(dollars in          Average             Yield/  Average             Yield/
 thousands)          Balance   Interest  Rates   Balance   Interest  Rates
                    ---------- --------- -----  ---------- --------- -----
ASSETS
Short-term interest
 bearing accounts   $  122,104 $      87  0.28% $   17,151 $      41  0.95%
Securities
 available for sale
 (1)(excluding
 unrealized gains
 or losses)          1,124,877    11,552  4.07%  1,117,469    14,152  5.04%
Securities held to
 maturity (1)          165,108     1,832  4.40%    140,141     1,886  5.35%
Investment in FRB
 and FHLB Banks         37,091       533  5.70%     39,751       395  3.95%
Loans and leases (2) 3,628,244    55,551  6.07%  3,634,346    58,381  6.39%
                    ---------- ---------        ---------- ---------
  Total interest
   earning assets   $5,077,424 $  69,555  5.43% $4,948,858 $  74,855  6.02%
                               ---------                   ---------
Trading securities       2,312                       1,855
Other assets           419,537                     398,896
                    ----------                  ----------
Total assets        $5,499,273                  $5,349,609
                    ----------                  ----------

LIABILITIES AND
 STOCKHOLDERS'
 EQUITY
Money market
 deposit accounts   $1,067,763 $   2,359  0.88% $  904,052 $   3,649  1.61%
NOW deposit
 accounts              688,376       831  0.48%    546,418     1,191  0.87%
Savings deposits       505,131       195  0.15%    462,319       382  0.33%
Time deposits        1,091,609     6,147  2.23%  1,355,103    11,149  3.27%
                    ---------- ---------        ---------- ---------
  Total interest
   bearing deposits $3,352,879 $   9,532  1.13% $3,267,893 $  16,371  1.99%
Short-term
 borrowings            159,050       139  0.35%    181,032       382  0.84%
Trust preferred
 debentures             75,422     1,036  5.45%     75,422     1,200  6.33%
Long-term debt         579,170     5,673  3.89%    633,445     6,401  4.02%
                    ---------- ---------        ---------- ---------
  Total interest
   bearing
   liabilities      $4,166,521 $  16,380  1.56% $4,157,792 $  24,354  2.33%
                               ---------                   ---------
Demand deposits        748,451                     695,696
Other liabilities       83,076                      69,203
Stockholders'
 equity                501,225                     426,918
                    ----------                  ----------
Total liabilities
 and stockholders'
 equity             $5,499,273                  $5,349,609
                    ----------                  ----------
  Net interest
   income (FTE)                   53,175                      50,501
                               ---------                   ---------
Interest rate
 spread                                   3.87%                       3.69%
Net interest margin                       4.15%                       4.06%
Taxable equivalent
 adjustment                        1,551                       1,568
                               ---------                   ---------
Net interest income            $  51,624                   $  48,933

(1) Securities are shown at average amortized cost
(2) For purposes of these computations, nonaccrual loans are included in
    the average loan balances outstanding




    Year ended December 31,

                                 2009                        2008
(dollars in          Average             Yield/  Average             Yield/
 thousands)          Balance   Interest  Rates   Balance   Interest  Rates
                    ---------- --------- -----  ---------- --------- -----
ASSETS
Short-term interest
 bearing accounts   $   88,012 $     238  0.27% $    9,190 $     186  2.03%
Securities
 available for sale
 (1)(excluding
 unrealized gains
 or losses)          1,095,609    48,951  4.47%  1,113,810    56,841  5.10%
Securities held to
 maturity (1)          151,078     7,385  4.89%    149,775     8,430  5.63%
Investment in FRB
 and FHLB Banks         37,878     1,966  5.19%     39,735     2,437  6.13%
Loans and leases (2) 3,641,852   221,128  6.07%  3,567,299   233,016  6.53%
                    ---------- ---------        ---------- ---------
  Total interest
   earning assets   $5,014,429 $ 279,668  5.58% $4,879,809 $ 300,910  6.17%
                               ---------                   ---------
Trading securities       1,929                       2,254
Other assets           412,651                     382,592
                    ----------                  ----------
Total assets        $5,429,009                  $5,264,655
                    ----------                  ----------

LIABILITIES AND
 STOCKHOLDERS'
 EQUITY
Money market
 deposit accounts   $1,013,514 $  12,165  1.20% $  778,477 $  14,373  1.85%
NOW deposit
 accounts              600,943     3,159  0.53%    485,014     4,133  0.85%
Savings deposits       499,079       826  0.17%    467,572     2,161  0.46%
Time deposits        1,227,199    32,346  2.64%  1,507,966    55,465  3.68%
                    ---------- ---------        ---------- ---------
  Total interest
   bearing deposits $3,340,735 $  48,496  1.45% $3,239,029 $  76,132  2.35%
Short-term
 borrowings            140,066       552  0.39%    223,830     4,847  2.17%
Trust preferred
 debentures             75,422     4,247  5.63%     75,422     4,747  6.29%
Long-term debt         601,039    23,629  3.93%    563,460    22,642  4.02%
                    ---------- ---------        ---------- ---------
  Total interest
   bearing
   liabilities      $4,157,262 $  76,924  1.85% $4,101,741 $ 108,368  2.64%
                               ---------                   ---------
Demand deposits        718,580                     682,656
Other liabilities       75,868                      68,156
Stockholders'
 equity                477,299                     412,102
                    ----------                  ----------
Total liabilities
 and stockholders'
 equity             $5,429,009                  $5,264,655
                    ----------                  ----------
  Net interest
   income (FTE)                  202,744                     192,542
                               ---------                   ---------
Interest rate
 spread                                   3.73%                       3.53%
Net interest margin                       4.04%                       3.95%
Taxable equivalent
 adjustment                        6,275                       6,496
                               ---------                   ---------
Net interest income            $ 196,469                   $ 186,046

(1) Securities are shown at average amortized cost
(2) For purposes of these computations, nonaccrual loans are included in
    the average loan balances outstanding




NBT Bancorp Inc. and Subsidiaries
Loans and leases (Unaudited)


                                                         At December 31,
                                                      ---------------------
(In thousands)                                           2009       2008
                                                      ---------- ----------
Residential real estate mortgages                     $  622,898 $  722,723
Commercial                                               581,870    572,059
Commercial real estate                                   718,235    669,720
Real estate construction and development                  76,721     67,859
Agricultural and agricultural real estate mortgages      122,466    113,566
Consumer                                                 856,956    795,123
Home equity                                              603,585    627,603
Lease financing                                           62,667     83,258
                                                      ---------- ----------
  Total loans and leases                              $3,645,398 $3,651,911
                                                      ========== ==========

Contact Information

  • Contact:
    Martin A. Dietrich
    CEO
    Michael J. Chewens
    CFO
    NBT Bancorp Inc.
    52 South Broad Street
    Norwich, NY 13815
    607-337-6119