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FOR IMMEDIATE RELEASE
ATTENTION: FINANCIAL AND BUSINESS EDITORS
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Pursuant to Rule 425 under the Securities
Act of 1933 and deemed filed pursuant to
Rule 14a-12 under the Securities Exchange
Act of 1934.
Contact: Michael J. Chewens
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
607-337-6520
NBT BANCORP ANNOUNCES EARNINGS FOR THE SECOND QUARTER AND
DECLARES CASH DIVIDEND
NORWICH, NY (July 24, 2000) - NBT Bancorp Inc.(NASDAQ: NBTB), parent company
of NBT Bank, N. A., LA Bank, N. A., NBT Financial Services, Inc., and, as of
July 1, 2000, Pioneer American Banks, reported net income of $3.1 million or
$0.17 per diluted share for the second quarter of 2000, including after-tax
merger and acquisition expenses of $1.9 million or $0.11 per diluted share. Net
income declined $2.6 million or 46.0% compared to second quarter 1999 earnings
of $5.7 million or $0.32 per diluted share. Financial results presented in this
press release do not include the operations of Pioneer American Bank, which was
acquired in the third quarter of 2000.
"Our results through June 2000 were anticipated based on merger and
acquisition related expenses. Also, second quarter 1999 results included
non-recurring gains of $340 thousand on the sale of other real estate owned
(OREO) and $199 thousand in gains on sales of securities," stated NBT Bancorp
President and CEO Daryl R. Forsythe. "Additionally, we have increased our
provision for loan losses by approximately $1.0 million as a result of our loan
growth. Loans at June 30, 2000, total $1.4 billion up $247.5 million or 22.0%
from June 30, 1999."
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Selected performance ratios are as follows:
o Return on Average Assets (ROAA) of 0.60% declined 52.8% from the comparable
prior year's second quarter ROAA of 1.27%. Merger and acquisition related
expenses were 0.38% of average assets, and were the primary reason for the
decline.
o Return on Average Equity (ROAE) of 7.60% compares to 13.64% for the second
quarter of 1999, a 44.3% decline. As stated above, merger and acquisition
related expenses contributed to the decline.
o Net Interest Margin of 4.25% for the second quarter of 2000 declined from
4.52% in the second quarter of 1999 primarily as a result of interest
bearing liabilities repricing faster than interest earning assets in this
rising rate environment. Despite the decline in the net interest margin,
net interest income increased $1.7 million or 9.1% in the second quarter of
2000 as compared to the same period in 1999. This increase is primarily the
result of average earning assets increasing more than the decline in the
net interest margin.
o Efficiency Ratio of 58.12% for the second quarter of 2000 increased 6.6%
from the second quarter of 1999 ratio of 54.54%.
"The second quarter of 2000 has been an exciting one for our organization,"
commented Forsythe. "In addition to continued strength in core earnings, the
quarter was marked by a number of merger milestones. On April 20, 2000, we
announced the signing of a definitive agreement to merge with BSB Bancorp, Inc.
This merger is expected to close in the fourth quarter of 2000. On May 5, 2000,
we completed the purchase of M. Griffith, Inc., a securities firm based in
Utica, NY offering investment advisory and asset management services. On June
20, 2000, our shareholders approved the plan to merge with Pioneer American
Holding Company Corp. That merger closed on July 1, 2000. These transactions
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will combine to form a financial services holding company with assets of $4.7
billion. We are excited about our growth and the opportunity to provide
additional services to our customers."
Forsythe added, "Our integration plan is well underway. We have hired ADS
Financial Services Solutions to assist us with integration initiatives. The
efficient execution of the integration plan is the primary focus of our
employees in an effort to realize the cost savings associated with the LA Bank,
Pioneer American Bank and BSB Bancorp, Inc. mergers. We are confident that we
have the appropriate resources to complete an effective and efficient
integration, while maintaining strong core earnings."
The Board of Directors also declared its regular quarterly cash dividend of
$0.17 per share for shareholders of record as of September 1, 2000, payable on
September 15, 2000.
NBT Bancorp is a financial services holding company headquartered in
Norwich, NY with combined assets of $2.1 billion at June 30, 2000. Wholly owned
subsidiaries of NBT Bancorp at June 30, 2000, included NBT Bank with 37
locations serving Central and Northern New York, LA Bank with 22 locations
serving Northeastern Pennsylvania, and NBT Financial Services, Inc. which now
includes M. Griffith Inc., an investment and financial advisory firm. As noted
above, Pioneer American Bank, merged with NBT Bancorp effective July 1, 2000 and
has total assets of approximately $418 million with 17 locations serving
Northeastern Pennsylvania. NBT Bank, LA Bank and Pioneer American Bank are
full-service community banks providing a broad range of financial products and
services to businesses and individuals.
For more information about NBT Bancorp's community bank subsidiaries,
visit WWW.NBTBANK.COM, WWW.LABANK.COM. and WWW.PIONEERAMERICAN.COM.
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FORWARD-LOOKING INFORMATION
This news release contains statements regarding the projected
performance of NBT Bancorp, LA Bank, Pioneer American Bank, and BSB Bancorp on a
combined basis. These statements constitute forward-looking information within
the meaning of the Private Securities Litigation Reform Act of 1995. Actual
results may differ materially from the projections discussed in this release
since such projections involve significant risks and uncertainties. Factors that
might cause such difference include, but are not limited to: competitive
pressures among financial institutions increasing significantly; economic
conditions, either nationally or locally in areas in which NBT Bancorp, LA Bank,
Pioneer American Bank, and BSB Bancorp conduct their operations being less
favorable than expected; the cost and effort required to integrate aspects of
the operations of the companies being more difficult than expected; expected
cost savings from the mergers not being fully realized or realized within the
expected time frames; and legislation or regulatory changes which adversely
affect the ability of the combined company to conduct its current or future
operations. NBT disclaims any obligation to update any such factors or to
publicly announce the result of any revisions to any of the forward-looking
statements included in this news release to reflect future events or
developments.
This press release may be deemed to be solicitation material in respect
of the proposed merger of BSB Bancorp, Inc. ("BSB") with NBT Bancorp Inc.
("NBT") pursuant to an Agreement and Plan of Merger, dated as of April 19, 2000,
and amended as of May 17, 2000, by and between NBT and BSB (the "Agreement").
Filing of this press release is being made in connection with Regulation of
Takeovers and Security Holder Communications (Release No. 33-7760, 34-42055)
promulgated by the Securities and Exchange Commission ("SEC").
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NBT and its directors and executive officers may be deemed to be
participants in the solicitation of proxies in respect of the transactions
contemplated by the Agreement. These directors and executive officers include
the following: Daryl R. Forsythe, Michael J. Chewens, Martin A. Dietrich, Joe C.
Minor, John D. Roberts, Everett A. Gilmour, J. Peter Chaplin, Richard
Chojnowski, Gene E. Goldenziel, Peter B. Gregory, William C. Gumble, Bruce D.
Howe, Andrew S. Kowalczyk, Jr., Dan B. Marshman, John G. Martines, John C.
Mitchell, Joseph G. Nasser, William L. Owens and Paul O. Stillman. As of June
30, 2000, these directors and executive officers beneficially owned in the
aggregate 1,538,770 shares, or approximately 8.31%, of NBT's outstanding common
stock. Additional information about the directors and executive officers of NBT
is included in NBT's proxy statement for its 2000 Annual Meeting of shareholders
dated April 3, 2000.
In connection with the proposed merger, NBT will file with the SEC a
registration statement on SEC Form S-4. The registration statement will contain
a joint proxy statement/prospectus, which will describe the proposed merger of
NBT and BSB and the proposed terms and conditions of the merger. Stockholders of
NBT are encouraged to read the registration statement and joint proxy
statement/prospectus because these documents will contain important information
about the merger. After the registration statement is filed with the SEC, it
will be available for free, both on the SEC's web site (WWW.SEC.GOV) or by
contacting NBT Bancorp Inc., 52 South Broad Street, Norwich, New York 13815,
Attention: John D. Roberts, telephone (607) 337-6541.
(FINANCIAL TABLES FOLLOW)
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<TABLE>
<CAPTION>
NBT BANCORP INC.
SELECTED FINANCIAL HIGHLIGHTS
(preliminary unaudited results)
Net Percent
2000 1999 CHANGE CHANGE
---- ---- ------ ------
(in thousands, except share and per share data)
<S> <C> <C> <C> <C>
THREE MONTHS ENDED JUNE 30,
Net Income $ 3,087 $ 5,720 $ (2,633) (46.03)%
Diluted Earnings Per Share $ 0.17 $ 0.32 $ (0.15) (46.88)%
Average Diluted Common Shares Outstanding 18,380,625 18,072,655 307,970 1.70 %
Return on Average Assets 0.60% 1.27% (0.67)% (52.76)%
Return on Average Equity 7.60% 13.64% (6.04)% (44.28)%
Net Interest Margin 4.25% 4.52% (0.27)% (5.97)%
Efficiency Ratio 58.12% 54.54% 3.58 % 6.56 %
Expense Ratio 2.01% 1.93% 0.08 % 4.15 %
SIX MONTHS ENDED JUNE 30,
Net Income $ 7,328 $ 11,496 $ (4,168) (36.26)%
Diluted Earnings Per Share $ 0.40 $ 0.64 $ (0.24) (37.50)%
Average Diluted Common Shares Outstanding 18,257,164 18,099,164 158,000 0.87 %
Return on Average Assets 0.73% 1.31% (0.58)% (44.27)%
Return on Average Equity 9.16% 13.74% (4.58)% (33.33)%
Net Interest Margin 4.28% 4.52% (0.24)% (5.31)%
Efficiency Ratio 57.69% 54.85% 2.84 % 5.18 %
Expense Ratio 2.02% 1.95% 0.07 % 3.59 %
BALANCE SHEET AS OF JUNE 30,
Loans $ 1,373,114 $ 1,125,581 $ 247,533 21.99 %
Earnings Assets $ 1,946,288 $ 1,703,055 $ 243,233 14.28 %
Total Assets $ 2,101,321 $ 1,843,664 $ 257,657 13.98 %
Deposits $ 1,595,973 $ 1,341,361 $ 254,612 18.98 %
Stockholders' Equity $ 167,671 $ 162,809 $ 4,862 2.99 %
AVERAGE BALANCES
(QUARTER ENDED JUNE 30,)
Loans $ 1,334,330 $ 1,096,848 $ 237,482 21.65 %
Earnings Assets $ 1,963,127 $ 1,693,839 $ 269,288 15.90 %
Total Assets $ 2,062,004 $ 1,802,465 $ 259,539 14.40 %
Deposits $ 1,571,774 $ 1,357,587 $ 214,187 15.78 %
Stockholders' Equity $ 163,457 $ 168,196 $ (4,739) (2.82)%
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NBT BANCORP INC.
SELECTED FINANCIAL HIGHLIGHTS
(preliminary unaudited results)
Net Percent
2000 1999 CHANGE CHANGE
---- ---- ------ ------
(in thousands, except share and per share data)
ASSET QUALITY AT JUNE 30,
Nonaccrual Loans $ 7,258 $ 5,533 $ 1,725 31.18 %
Other Real Estate Owned $ 631 $ 1,308 $ (677) (51.76)%
Total Nonperforming Assets $ 7,889 $ 6,841 1,048 15.32 %
90 Days Past Due and Still Accruing $ 630 $ 787 $ (157) (19.95)%
Allowance to Loans 1.37% 1.40% (0.03)% (2.14)%
Total Nonaccrual Loans to Loans .53% 0.49% (0.04)% (8.16)%
Total Nonperforming Assets to Assets .38% 0.37% (0.01)% (2.70)%
AT JUNE 30,
Equity to Assets 7.98% 8.83% (0.85)% (09.62)%
Book Value Per Share $ 9.05 $ 9.07 $ (0.02) (0.22)%
Tangible Book Value Per Share $ 8.21 $ 8.56 $ (0.35) (4.09)%
Tier 1 Leverage Ratio 8.22% 9.06% (0.84)% (9.27)%
Tier 1 Capital Ratio 12.28% 14.28% (2.00)% (14.01)%
Total Risk-Based Capital Ratio 13.46% 15.44% (1.98)% (12.82)%
</TABLE>
<TABLE>
<CAPTION>
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QUARTERLY COMMON STOCK PRICE
2000 1999 1998
Quarter End HIGH LOW HIGH LOW HIGH LOW
---- --- ----- --- ---- ---
<S> <C> <C> <C> <C> <C> <C>
March 31 $16.50 $11.38 $23.33 $19.89 $19.05 $15.99
June 30 14.50 9.38 21.19 19.05 23.48 18.37
September 30 20.90 16.43 23.81 17.58
December 31 17.98 14.63 24.29 19.72
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</TABLE>
All common stock and per share data has been restated to give retroactive effect
to stock dividends and splits.
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<TABLE>
<CAPTION>
NBT BANCORP INC. AND SUBSIDIARY JUNE 30, December 31, June 30,
CONSOLIDATED BALANCE SHEETS 2000 1999 1999
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(in thousands, except share and per share data) (UNAUDITED) (Unaudited)
<S> <C> <C> <C>
ASSETS
Cash $ 68,773 $ 64,431 $ 65,356
Securities available for sale, at fair value 489,572 500,423 492,339
Securities held to maturity (fair value-$68,011,
$73,648 and $82,653) 70,620 76,706 71,465
Loans 1,373,114 1,222,654 1,125,581
Less allowance for loan losses (18,796) (16,654) (15,711)
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Net loans 1,354,318 1,206,000 1,109,870
Premises and equipment, net 39,823 40,830 38,522
Other assets 78,215 73,042 66,112
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TOTAL ASSETS $2,101,321 $1,961,432 $1,843,664
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $ 222,264 $ 223,143 $ 202,585
Savings, NOW, and money market 520,774 487,746 478,773
Time 852,935 766,729 660,003
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Total deposits 1,595,973 1,477,618 1,341,361
Short-term borrowings 160,554 137,567 179,548
Long-term debt 160,983 172,575 149,132
Other liabilities 16,140 13,195 10,788
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Total liabilities 1,933,650 1,800,955 1,680,829
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Stockholders' equity:
Preferred stock, $0.01 par value at June 30, 2000,
no par, stated value $1.00 at December 31, 1999 and
June 30, 1999; shares authorized - 2,500,000 - - -
Common stock, $0.01 par value and 30,000,000 authorized
at June 30, 2000, no par, stated value $1.00 and 15,000,000
authorized at December 31, 1999 and June 30, 1999;
issued 19,044,424, 18,616,992, and 17,976,269 at June 30, 2000,
December 31, 1999 and June 30, 1999, respectively 190 18,617 17,976
Additional paid-in-capital 171,810 148,717 138,068
Retained earnings 24,139 23,060 29,441
Accumulated other comprehensive (loss) income (17,167) (18,252) (8,853)
Common stock in treasury at cost, 522,133, 538,936,
and 415,225 shares at June 30, 2000, December 31, 1999
and June 30, 1999, respectively (11,301) (11,665) (13,797)
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Total stockholders' equity 167,671 160,477 162,835
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,101,321 $1,961,432 $1,843,664
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</TABLE>
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<TABLE>
<CAPTION>
Three months ended Six months ended
NBT BANCORP INC. AND SUBSIDIARY June 30, June 30,
CONSOLIDATED STATEMENTS OF INCOME 2000 1999 2000 1999
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(in thousands, except per share data) (Unaudited)
<S> <C> <C> <C> <C>
Interest and fee income:
Loans $29,309 $23,214 $56,498 $45,893
Securities - available for sale 8,686 8,174 17,558 15,799
Securities - held to maturity 976 902 1,969 1,742
Other 481 456 883 914
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Total interest and fee income 39,452 32,746 76,908 64,348
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Interest expense:
Deposits 15,001 11,021 28,447 22,027
Short-term borrowings 2,184 1,299 4,238 2,438
Long-term debt 2,240 2,070 4,586 3,809
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Total interest expense 19,425 14,390 37,271 28,274
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Net interest income 20,027 18,356 39,637 36,074
Provision for loan losses 2,225 1,230 3,559 2,350
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Net interest income after provision for loan losses 17,802 17,126 36,078 33,724
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Noninterest income:
Trust 811 835 1,671 1,670
Service charges on deposit accounts 1,721 1,557 3,341 2,965
Net securities gains 7 208 7 876
Other 1,623 1,292 2,758 2,657
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Total noninterest income 4,162 3,892 7,777 8,168
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Noninterest expense:
Salaries and employee benefits 6,874 5,976 13,955 11,946
Office supplies and postage 581 599 1,173 1,236
Occupancy 1,093 1,000 2,325 2,024
Equipment 1,204 1,057 2,341 2,004
Professional fees and outside services 839 737 1,595 1,434
Data processing and communications 1,202 1,038 2,334 2,010
Amortization of intangible assets 383 325 695 654
Merger and acquisition costs 2,561 - 3,683 -
Other operating 2,177 1,414 3,796 2,654
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Total noninterest expense 16,914 12,146 31,897 23,762
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Income before income taxes 5,050 8,872 11,958 17,930
Income taxes 1,963 3,152 4,630 6,434
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NET INCOME $ 3,087 $ 5,720 $ 7,328 $11,496
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Earnings per share:
Basic $ 0.17 $ 0.32 $ 0.40 $ 0.64
Diluted $ 0.17 $ 0.32 $ 0.40 $ 0.64
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</TABLE>
All per share data has been restated to give retroactive effect to stock
dividends and splits.
******END OF RELEASE******
