SOURCE: NBT Bancorp Inc.

January 22, 2007 18:28 ET

NBT Bancorp Inc. Announces Annual Earnings of $55.9 Million; Declares Cash Dividend

NORWICH, NY -- (MARKET WIRE) -- January 22, 2007 -- NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today that net income for the year ended December 31, 2006 was $55.9 million, up 6.7% or $3.5 million from net income of $52.4 million reported for the same period in 2005. Net income per diluted share for the year ended December 31, 2006 was $1.64 per share, compared with $1.60 per share for the same period in 2005. Return on average assets and return on average equity were 1.14% and 14.47%, respectively, for the year ended December 31, 2006, compared with 1.21% and 15.86%, respectively, for the same period in 2005. The increase in net income for the year ended December 31, 2006, was primarily the result of a $5.7 million increase in net interest income and a $6.1 million increase in noninterest income. The aforementioned increases in income were partially offset by a $7.7 million increase in noninterest expense. Results for the year ended December 31, 2006 include $1.8 million in pre-tax salaries and benefits expense related to stock options resulting from the adoption on January 1, 2006, of Statement of Financial Accounting Standard No. 123 (revised 2004) (FAS 123R), "Share-Based Payment," which requires companies to measure and recognize compensation expense for all share-based payments based on the fair value of those share-based payments. The adoption of FAS 123R lowered diluted earnings per share by $0.03 for the year ended December 31, 2006.

Net income for the three months ended December 31, 2006, was $13.6 million, up 5.0% or $0.6 million from net income of $13.0 million reported for the same period in 2005. Net income per diluted share for the three-month period ended December 31, 2006 was $0.40 per share, equal to $0.40 per share for the same period in 2005. Return on average assets and return on average equity were 1.07% and 13.31%, respectively, for the three months ended December 31, 2006, compared with 1.17% and 15.47%, respectively, for the same period in 2005. The increase in net income for the three months ended December 31, 2006 was primarily the result of a $1.4 million increase in net interest income and a $1.9 million increase in noninterest income. The aforementioned increases in income were partially offset by a $1.7 million increase in noninterest expense and an increase in the provision for loan and lease losses of $0.9 million for the three months ended December 31, 2006, compared with the same period in 2005.

The comparability of financial information is affected by the acquisition of CNB Bancorp, Inc. ("CNB"). Operating results include the operations of CNB from the date of acquisition, which was February 10, 2006.

NBT President and CEO Martin A. Dietrich stated, "While 2006 presented some unique challenges due to the higher interest rate environment, as well as the record flooding that impacted many of our customers and the communities we serve, we can look back on the year and be proud of our accomplishments in the face of adversity. Our dedicated team of employees remained focused on providing great service to our customers by paying attention to the fundamentals of our business. This helped produce another year of record earnings for our company during a most challenging period. While it is likely that the financial services industry will continue to be challenged by the interest rate environment in 2007, we look forward to continuing to strive to be the premier provider of community banking services in the markets we serve, while also delivering shareholder value."

Loan and Lease Quality and Provision for Loan and Lease Losses

Nonperforming loans at December 31, 2006 were $15.3 million or 0.45% of total loans and leases compared with $14.3 million or 0.47% of total loans and leases at December 31, 2005. Net charge-offs to average loans and leases for the year ended December 31, 2006, were 0.26%, compared with the 0.23% ratio for the year ended December 31, 2005. The Company's allowance for loan and lease losses was 1.48% of loans and leases at December 31, 2006, compared with 1.57% at December 31, 2005. The ratio of the allowance for loan and lease losses to nonperforming loans was 330.48% at December 31, 2006, compared with 331.92% at December 31, 2005.

For the year and quarter ended December 31, 2006, the provision for loan and lease losses totaled $9.4 million and $3.5 million, respectively, compared with $9.5 million and $2.6 million, respectively, for the same periods in 2005. Year over year, the provision has remained relatively flat. Potential problem loans have decreased as a percentage of the loan portfolio, offset by an increase in net charge-offs. Primarily as a result of the acquisition of CNB, whose loan portfolio had less inherent risk than NBT, the Allowance for Loan and Lease Losses to Total Loans and Leases decreased from 1.57% at December 31, 2005 to 1.48% at December 31, 2006.

Net Interest Income

Net interest income was up 3.6% to $163.8 million for the year ended December 31, 2006, compared with $158.1 million for the same period a year ago. Despite a decrease in the Company's fully taxable equivalent (FTE) net interest margin, from 4.01% for the year ended December 31, 2005, to 3.70% for the same period in 2006, the Company experienced an increase in net interest income that was attributable to 13.1% growth in average earning assets. The growth in average earning assets was in large part due to the acquisition of CNB as well as our organic loan growth. The Company's net interest margin was 3.63% for the quarter ended December 31, 2006, down from 3.97% for the same period in 2005. Despite this decrease, net interest income for the quarter ended December 31, 2006, increased 3.5%, to $41.4 million, from $40.0 million in the same period for 2005, which was attributable to a 14.0% growth in average earning assets in large part due to the acquisition of CNB as well as our organic loan growth. The decline in the net interest margin is due largely to the effect from our borrowings, money market accounts and time deposits repricing in a higher interest rate environment. Earning assets, particularly those tied to a fixed rate, have not realized the benefit of the higher interest rate environment, since yields on earning assets with terms of three years or longer have remained relatively flat during this period. The Company anticipates that margin pressure will persist into the next several quarters, given the flat to inverted yield curve. If the yield curve remains flat or inverted, we expect net interest income to be relatively flat in 2007.

Noninterest Income

Noninterest income for the year ended December 31, 2006 was $48.6 million, up $6.1 million or 14.3% from $42.5 million for the same period in 2005. Fees from service charges on deposit accounts and ATM and debit cards collectively increased $1.6 million from solid growth in demand deposit accounts and debit card base. Retirement plan administration fees for the year ended December 31, 2006 increased $1.1 million, compared with the same period in 2005, as a result of our growing client base. Bank-owned life insurance income for the year ended December 31, 2006 increased $0.3 million, compared with the same period in 2005, primarily due to the acquisition of CNB. Trust administration income increased $0.6 million for the year ended December 31, 2006, compared with the same period in 2005. This increase stems from the increased market value of accounts, an increase in customer accounts as a result of the acquisition of CNB and successful business development. Broker/dealer and insurance revenue for the year ended December 31, 2006 increased $0.8 million in large part due to the growth in brokerage income from retail financial services as well as the addition of Hathaway Insurance Agency as part of the acquisition of CNB. Other noninterest income for the year ended December 31, 2006 increased $1.4 million, compared with the same period in 2005, as a result of a gain on the sale of a branch, an increase in title insurance revenue, and an increase in interest income earned from our payment services vendor. Net securities losses for the year ended December 31, 2006 were $0.9 million, compared with net securities losses of $1.2 million for the year ended December 31, 2005. Excluding the effect of these securities transactions, noninterest income increased $5.7 million, or 13.1%, for the year ended December 31, 2006, compared with the same period in 2005.

Noninterest income for the three months ended December 31, 2006 was $12.3 million, up $1.9 million or 18.2% from $10.4 million for the same period in 2005. Fees from service charges on deposit accounts and ATM and debit cards increased $0.3 million due to demand deposit account growth. Retirement plan administration fees for the three months ended December 31, 2006 increased $0.2 million, compared with the same period in 2005, as our client base grew. Trust administration income increased $0.2 million for the three months ended December 31, 2006, compared with the same period in 2005, stemming from the increased market value of accounts generating greater fees, an increase in customer accounts as a result of the acquisition of CNB and successful business development. For the three months ended December 31, 2006, broker/dealer and insurance revenue increased by $0.5 million, compared with the same period in 2005, due to the growth in brokerage income from retail financial services as well as the addition of Hathaway Insurance Agency. Net securities losses for the three months ended December 31, 2006 were negligible, compared with a $0.5 million loss for the same period of 2005. Excluding the effect of these securities transactions, noninterest income increased $1.3 million or 12.1% for the three months ended December 31, 2006, compared with the same period in 2005.

Noninterest Expense and Income Tax Expense

Noninterest expense for the year ended December 31, 2006 was $123.0 million, up from $115.3 million for the same period in 2005. Office expenses, such as supplies and postage, occupancy, equipment and data processing and communications charges, increased by $2.1 million for the year ended December 31, 2006, compared with the same period in 2005. This 6.2% increase resulted primarily from the acquisition of CNB Bancorp on February 10, 2006. Salaries and employee benefits increased $2.9 million for the year ended December 31, 2006 over the same period in 2005. This increase was due primarily to the adoption of FAS 123R in 2006, which contributed $1.8 million to the increase in salaries and employee benefits, as well as higher salaries from merit increases and the acquisition of CNB. Professional fees and services increased $1.7 million for the year ended December 31, 2006, compared with the same period in 2005. Legal fees incurred in 2006 increased over 2005 because the Company was reimbursed during the second quarter of 2005 for legal fees associated with a prior litigation. Item processing fees during the year ended December 31, 2006 increased over the same period in 2005 because the Company outsourced a portion of its item processing work as a result of flood-related damage to one of its processing centers. Amortization expense increased $1.1 million for the year ended December 31, 2006 over the same period in 2005. This increase was due primarily to the acquisition of CNB. Loan collection and other real estate owned expenses increased $0.3 million for the year ended December 31, 2006 over the same period in 2005. This increase was due primarily to an increase in the number of foreclosures in 2006 as compared to 2005. Other operating expense for the year ended December 31, 2006 decreased $0.4 million compared with the same period in 2005, primarily due to flood-related insurance recoveries. Income tax expense for the year ended December 31, 2006 was $24.2 million, up from $23.5 million for the same period in 2005. The effective rate for the year ended December 31, 2006 was 30.2%, down from 30.9% for the same period in 2005. The decrease in the effective tax rate for the year ended December 31, 2006 versus the same period in 2005 resulted primarily from an increase in interest income from tax-exempt sources.

Noninterest expense for the three months ended December 31, 2006 was $30.9 million, up from $29.1 million for the same period in 2005. Salaries and employee benefits for the three months ended December 31, 2006 increased $1.3 million over the same period in 2005, mainly from the adoption of FAS 123R, higher salaries from merit increases, and the acquisition of CNB. Professional fees and services increased $0.9 million for the three months ended December 31, 2006, compared with the same period in 2005. This increase was due to several factors, including an increase in courier service expenses due to the acquisition of CNB as well as increasing transportation costs. Item processing fees during the period increased because the Company outsourced a portion of its item processing work as a result of flood-related damage to one of its processing centers. Amortization expense increased $0.2 million for the three months ended December 31, 2006, over the same period in 2005. This increase was due primarily to the acquisition of CNB. Loan collection and other real estate-owned expenses increased $0.4 million for the three months ended December 31, 2006, compared with the same period in 2005. This increase was due primarily to an increase in the number of foreclosures in 2006 compared with 2005. In addition, the Company was able to recoup foreclosure-related expenses from borrowers in 2005 because properties were sold prior to foreclosure during the period. Other operating expense for the three months ended December 31, 2006 decreased $1.2 million compared with the same period in 2005. Contributing to this decrease were expenses incurred in the 4th quarter of 2005 related to branch closings in anticipation of the CNB acquisition. Income tax expense for the three months ended December 31, 2006 was $5.7 million, equivalent to the income tax expense of $5.7 million for the three months ended December 31, 2005. The effective rate for the three months ended December 31, 2006 was 29.6%, down from 30.5% for the same period in 2005. The decrease in the effective tax rate for the three months ended December 31, 2006 versus the same period in 2005 resulted primarily from an increase in interest income from tax-exempt sources.

Balance Sheet

Total assets were $5.1 billion at December 31, 2006, up $0.7 billion from $4.4 billion at December 31, 2005. Loans and leases increased $0.4 billion or 12.9% from $3.0 billion at December 31, 2005, to $3.4 billion at December 31, 2006, due in large part to the acquisition of CNB and growth from consumer and commercial loan products. Total deposits were $3.8 billion at December 31, 2006, up 20.1% from the same period at December 31, 2005, also due in large part to the acquisition of CNB. Stockholders' equity was $403.8 million, representing total equity to total assets of 7.94% at December 31, 2006, compared with $333.9 million or a total equity to total asset ratio of 7.54% at December 31, 2005. In addition, the Company adopted Statement of Financial Accounting Standard No. 158 (FAS 158) "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans -- an amendment of FASB Statements No. 87, 88, 106, and 132( R)" as of December 31, 2006, resulting in a decrease in total equity of $7.4 million. This adoption did not affect regulatory capital ratios at December 31, 2006.

Stock Repurchase Program

Under previously disclosed stock repurchase plans, the Company purchased 766,004 shares of its common stock during the year ended December 31, 2006, for a total of $17.1 million at an average price of $22.34 per share. For the three months ended December 31, 2006, the Company did not purchase any shares of its common stock. At December 31, 2006, there were 737,147 shares available for repurchase under previously announced plans.

Dividend Declared

The NBT Board of Directors declared a fourth-quarter cash dividend of $0.19 per share at a meeting held today. The dividend will be paid on March 15, 2007, to shareholders of record as of March 1, 2007.

Corporate Overview

NBT is a financial holding company headquartered in Norwich, NY, with total assets of $5.1 billion at December 31, 2006. 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 118 locations, including 80 NBT Bank offices in upstate New York and 38 Pennstar Bank offices in northeastern Pennsylvania. EPIC Advisors, Inc., based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm. Hathaway Insurance Agency, Inc., based in Gloversville, NY, is a full-service insurance agency. More information about NBT and its divisions can be found on the Internet at: www.nbtbancorp.com, www.nbtbank.com, www.pennstarbank.com, www.epic1st.com and www.hathawayagency.com.

Forward-Looking Statements

This news release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of NBT Bancorp and its subsidiaries and on the information available to management at the time that these statements were made. There are a number of factors, many of which are beyond NBT's control, that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which NBT is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than NBT; and (7) adverse changes may occur in the securities markets or with respect to inflation. Forward-looking statements speak only as of the date they are made. Except as required by law, NBT does not undertake to update forward-looking statements to reflect subsequent circumstances or events.


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

                                                         Net       Percent
                             2006          2005         Change     Change
                         ------------  ------------  ------------  -------
                          (dollars in thousands,
                           except per share data)
Three Months Ended
 December 31,
Net Income               $     13,648  $     12,995  $        653        5%
Diluted Earnings Per
 Share                   $       0.40  $       0.40  $       0.00        0%
Weighted Average Diluted
 Common Shares
 Outstanding               34,402,113    32,556,147     1,845,966        6%
Return on Average Assets
 (1)                             1.07%         1.17%        -0.10%      -9%
Return on Average Equity
 (1)                            13.31%        15.47%        -2.16%     -14%
Net Interest Margin (2)          3.63%         3.97%        -0.34%      -9%
                         ============  ============  ============  =======

Twelve Months Ended
 December 31,
Net Income               $     55,947  $     52,438  $      3,509        7%
Diluted Earnings Per
 Share                   $       1.64  $       1.60  $       0.04        2%
Weighted Average Diluted
 Common Shares
 Outstanding               34,206,070    32,710,425     1,495,645        5%
Return on Average Assets         1.14%         1.21%        -0.07%      -6%
Return on Average Equity        14.47%        15.86%        -1.39%      -9%
Net Interest Margin (2)          3.70%         4.01%        -0.31%      -8%
                         ============  ============  ============  =======

Asset Quality            December 31,  December 31,
                              2006          2005
                         ------------  ------------
Nonaccrual Loans         $     13,665  $     13,419
90 Days Past Due and
 Still Accruing          $      1,642  $        878
Total Nonperforming
 Loans                   $     15,307  $     14,297
Other Real Estate Owned
 (OREO)                  $        389  $        265
Total Nonperforming
 Assets                  $     15,696  $     14,562
Allowance for Loan and
 Lease Losses            $     50,587  $     47,455
Year-to-Date (YTD) Net
 Charge-Offs             $      8,673  $      6,941
Allowance for Loan and
 Lease Losses to Total
 Loans and Leases                1.48%         1.57%
Total Nonperforming
 Loans to Total Loans
 and Leases                      0.45%         0.47%
Total Nonperforming
 Assets to Total Assets          0.31%         0.33%
Allowance for Loan and
 Lease Losses to Total
 Nonperforming Loans           330.48%       331.92%
Annualized Net
 Charge-Offs to YTD
 Average Loans and
 Leases                          0.26%         0.23%
                         ============  ============

Capital
Equity to Assets                 7.94%         7.54%
Book Value Per Share     $      11.79  $      10.34
Tangible Book Value Per
 Share                   $       8.42  $       8.75
Tier 1 Leverage Ratio            7.57%         7.16%
Tier 1 Capital Ratio            10.42%         9.80%
Total Risk-Based Capital
 Ratio                          11.67%        11.05%
                         ============  ============




Quarterly Common Stock Price
                      2006           2005            2004
                  High    Low     High     Low     High    Low
Quarter End     ------- ------- -------  ------- ------- -------
March 31        $ 23.90 $ 21.02 $ 25.66  $ 21.48 $ 23.00 $ 21.21
June 30         $ 23.24 $ 21.03   24.15    20.10   23.18   19.92
September 30    $ 24.57 $ 21.44   25.50    22.79   24.34   21.02
December 31     $ 26.47 $ 22.36   23.79    20.75   26.84   21.94


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



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

                                                           Net     Percent
                                  2006        2005       Change    Change
                               ----------- ----------- ----------  -------
                                (dollars in thousands,
                                except per share data)
Balance Sheet as of
 December 31,
Loans and Leases               $ 3,412,654 $ 3,022,657 $  389,997       13%
Earning Assets                 $ 4,712,085 $ 4,129,350 $  582,735       14%
Total Assets                   $ 5,087,572 $ 4,426,773 $  660,799       15%
Deposits                       $ 3,796,238 $ 3,160,196 $  636,042       20%
Stockholders' Equity           $   403,817 $   333,943 $   69,874       21%
                               =========== =========== ==========  =======

Average Balances
Quarter Ended December 31,
Loans and Leases               $ 3,394,024 $ 3,012,561 $  381,463       13%
Securities Available For Sale
 (excluding unrealized gains
 or losses)                    $ 1,119,271 $   965,742 $  153,529       16%
Securities Held To Maturity    $   136,511 $    92,054 $   44,457       48%
Regulatory Equity Investment   $    36,995 $    39,277 $   (2,282)      -6%
Short-Term Interest Bearing
 Accounts                      $     7,492 $     7,676 $     (184)      -2%
Total Earning Assets           $ 4,694,293 $ 4,117,310 $  576,983       14%
Total Assets                   $ 5,064,116 $ 4,393,140 $  670,976       15%
Interest Bearing Deposits      $ 3,206,084 $ 2,602,145 $  603,939       23%
Non-Interest Bearing Deposits  $   625,301 $   571,999 $   53,302        9%
Short-Term Borrowings          $   294,750 $   396,077 $ (101,327)     -26%
Long-Term Borrowings           $   471,149 $   439,798 $   31,351        7%
Total Interest Bearing
 Liabilities                   $ 3,971,983 $ 3,438,020 $  533,963       16%
Stockholders' Equity           $   406,771 $   333,450 $   73,321       22%
                               =========== =========== ==========  =======

Average Balances
Twelve Months Ended
 December 31,
Loans and Leases               $ 3,302,080 $ 2,959,256 $  342,824       12%
Securities Available For Sale
 (excluding unrealized gains
 or losses)                    $ 1,110,405 $   954,461 $  155,944       16%
Securities Held To Maturity    $   115,636 $    88,244 $   27,392       31%
Regulatory Equity Investment   $    39,437 $    37,607 $    1,830        5%
Short-Term Interest Bearing
 Accounts                      $     8,116 $     7,298 $      818       11%
Total Earning Assets           $ 4,575,674 $ 4,046,866 $  528,808       13%
Total Assets                   $ 4,925,070 $ 4,326,155 $  598,915       14%
Interest Bearing Deposits      $ 3,054,006 $ 2,615,833 $  438,173       17%
Non-Interest Bearing Deposits  $   614,055 $   543,077 $   70,978       13%
Short-Term Borrowings          $   331,255 $   353,644 $  (22,389)      -6%
Long-Term Borrowings           $   485,031 $   430,487 $   54,544       13%
Total Interest Bearing
 Liabilities                   $ 3,870,292 $ 3,399,964 $  470,328       14%
Stockholders' Equity           $   386,553 $   330,676 $   55,877       17%
                               =========== =========== ==========  =======





NBT Bancorp Inc. and Subsidiaries              December 31,   December 31,
Consolidated Balance Sheets (unaudited)            2006           2005
                                              -------------- --------------
(in thousands)

ASSETS
Cash and due from banks                       $      130,936 $      134,501
Short term interest bearing accounts                   7,857          7,987
Securities available for sale, at fair value       1,106,322        954,474
Securities held to maturity (fair value of
 $136,287 and $93,701 at December 31, 2006
 and December 31, 2005)                              136,314         93,709
Federal Reserve and Federal Home Loan Bank
 stock                                                38,812         40,259
Loans and leases                                   3,412,654      3,022,657
Less allowance for loan and lease losses              50,587         47,455
                                              ============== ==============
  Net loans and leases                             3,362,067      2,975,202
Premises and equipment, net                           66,982         63,693
Goodwill                                             103,356         47,544
Intangible assets, net                                11,984          3,808
Bank owned life insurance                             41,783         33,648
Other assets                                          81,159         71,948
                                              -------------- --------------
TOTAL ASSETS                                  $    5,087,572 $    4,426,773
                                              ============== ==============

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
 Demand (noninterest bearing)                 $      646,377 $      593,422
 Savings, NOW, and money market                    1,566,557      1,325,166
 Time                                              1,583,304      1,241,608
                                              -------------- --------------
  Total deposits                                   3,796,238      3,160,196
Short-term borrowings                                345,408        444,977
Long-term debt                                       417,728        414,330
Trust preferred debentures                            75,422         23,875
Other liabilities                                     48,959         49,452
                                              -------------- --------------
  Total liabilities                                4,683,755      4,092,830


Total stockholders' equity                           403,817        333,943
                                              ============== ==============

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $    5,087,572 $    4,426,773
                                              ============== ==============





NBT Bancorp Inc. and
 Subsidiaries                    Three months ended   Twelve months ended
Consolidated Statements of          December 31,          December 31,
 Income (unaudited)               2006       2005       2006       2005
                                ---------- ---------  ---------  ---------
(in thousands, except per share
 data)
Interest, fee and dividend
 income:
Loans and leases                $   60,795 $  50,726  $ 230,042  $ 189,714
Securities available for sale       13,296    10,544     51,599     41,120
Securities held to maturity          1,409       913      4,730      3,407
Other                                  517       575      2,471      2,126
                                ---------- ---------  ---------  ---------
  Total interest, fee and
   dividend income                  76,017    62,758    288,842    236,367
                                ---------- ---------  ---------  ---------
Interest expense:
Deposits                            25,652    14,352     87,798     49,932
Short-term borrowings                3,572     3,911     15,448     10,984
Long-term debt                       4,091     4,098     17,063     16,114
Trust preferred debentures           1,277       375      4,700      1,226
                                ---------- ---------  ---------  ---------
  Total interest expense            34,592    22,736    125,009     78,256
                                ---------- ---------  ---------  ---------
Net interest income                 41,425    40,022    163,833    158,111
Provision for loan and lease
 losses                              3,484     2,596      9,395      9,464
                                ---------- ---------  ---------  ---------
Net interest income after
 provision for loan and lease
 losses                             37,941    37,426    154,438    148,647
                                ---------- ---------  ---------  ---------
Noninterest income:
Trust                                1,387     1,234      5,629      5,029
Service charges on deposit
 accounts                            4,418     4,340     17,590     16,894
ATM and debit card fees              1,764     1,587      7,086      6,162
Broker/dealer and insurance
 revenue                             1,037       527      3,936      3,186
Net securities gains (losses)           30      (546)      (875)    (1,236)
Bank owned life insurance
 income                                425       342      1,629      1,347
Retirement plan administration
 fees                                1,424     1,212      5,536      4,426
Other                                1,847     1,736      8,098      6,741
                                ---------- ---------  ---------  ---------
  Total noninterest income          12,332    10,432     48,629     42,549
                                ---------- ---------  ---------  ---------
Noninterest expense:
Salaries and employee benefits      15,166    13,863     62,877     60,005
Office supplies and postage          1,418     1,222      5,330      4,628
Occupancy                            2,739     2,689     11,518     10,452
Equipment                            2,069     2,120      8,332      8,118
Professional fees and outside
 services                            2,502     1,584      7,761      6,087
Data processing and
 communications                      2,466     2,548     10,454     10,349
Amortization of intangible
 assets                                389       142      1,649        544
Loan collection and other real
 estate owned                          629       278      1,351      1,002
Other operating                      3,504     4,703     13,694     14,120
                                ---------- ---------  ---------  ---------
  Total noninterest expense         30,882    29,149    122,966    115,305
                                ---------- ---------  ---------  ---------
Income before income taxes          19,391    18,709     80,101     75,891
Income taxes                         5,743     5,714     24,154     23,453
                                ---------- ---------  ---------  ---------
   Net income                   $   13,648 $  12,995  $  55,947  $  52,438
                                ---------- ---------  ---------  ---------
Earnings Per Share:
     Basic                      $     0.40 $    0.40  $    1.65  $    1.62
     Diluted                    $     0.40 $    0.40  $    1.64  $    1.60
                                ========== =========  =========  =========



NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements
 of Income (unaudited)        4Q        3Q        2Q        1Q        4Q
                             2006      2006      2006      2006      2005
                          --------- --------- --------- --------  --------
(in thousands, except per
 share data)
Interest, fee and
 dividend income:
Loans and leases          $  60,795 $  59,329 $  57,085 $ 52,833  $ 50,726
Securities available for
 sale                        13,296    13,342    13,084   11,877    10,544
Securities held to
 maturity                     1,409     1,293     1,043      985       913
Other                           517       724       619      611       575
                          --------- --------- --------- --------  --------
  Total interest, fee and
   dividend income           76,017    74,688    71,831   66,306    62,758
                          --------- --------- --------- --------  --------
Interest expense:
Deposits                     25,652    24,052    20,869   17,225    14,352
Short-term borrowings         3,572     3,828     4,111    3,937     3,911
Long-term debt                4,091     4,603     4,227    4,142     4,098
Trust preferred
 debentures                   1,277     1,285     1,255      883       375
                          --------- --------- --------- --------  --------
  Total interest expense     34,592    33,768    30,462   26,187    22,736
                          --------- --------- --------- --------  --------
Net interest income          41,425    40,920    41,369   40,119    40,022
Provision for loan and
 lease losses                 3,484     2,480     1,703    1,728     2,596
                          --------- --------- --------- --------  --------
Net interest income after
 provision for loan and
 lease losses                37,941    38,440    39,666   38,391    37,426
                          --------- --------- --------- --------  --------
Noninterest income:
Trust                         1,387     1,425     1,459    1,358     1,234
Service charges on
 deposit accounts             4,418     4,460     4,493    4,219     4,340
ATM and debit card fees       1,764     1,888     1,789    1,645     1,587
Broker/dealer and
 insurance fees               1,037     1,024       967      908       527
Net securities gains
 (losses)                        30         7        22     (934)     (546)
Bank owned life insurance
 income                         425       431       392      381       342
Retirement plan
 administration fees          1,424     1,450     1,431    1,231     1,212
Other                         1,847     1,832     2,003    2,416     1,736
                          --------- --------- --------- --------  --------
  Total noninterest
   income                    12,332    12,517    12,556   11,224    10,432
                          --------- --------- --------- --------  --------
Noninterest expense:
Salaries and employee
 benefits                    15,166    15,628    16,335   15,748    13,863
Office supplies and
 postage                      1,418     1,275     1,456    1,181     1,222
Occupancy                     2,739     3,044     2,747    2,988     2,689
Equipment                     2,069     2,040     2,067    2,156     2,120
Professional fees and
 outside services             2,502     1,627     1,800    1,832     1,584
Data processing and
 communications               2,466     2,637     2,649    2,702     2,548
Amortization of
 intangible assets              389       471       466      323       142
Loan collection and other
 real estate owned              629       222       289      211       278
Other operating               3,504     2,974     3,885    3,331     4,703
                          --------- --------- --------- --------  --------
  Total noninterest
   expense                   30,882    29,918    31,694   30,472    29,149
                          --------- --------- --------- --------  --------
Income before income
 taxes                       19,391    21,039    20,528   19,143    18,709
Income taxes                  5,743     6,497     6,359    5,555     5,714
                          --------- --------- --------- --------  --------
   Net income             $  13,648 $  14,542 $  14,169 $ 13,588  $ 12,995
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Earnings per share:
   Basic                  $    0.40 $    0.43 $    0.41 $   0.41  $   0.40
   Diluted                $    0.40 $    0.43 $    0.41 $   0.40  $   0.40
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Contact Information

  • Contact:

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