Page 1 of 7
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
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
Michael J. Chewens, CFO
607/337-6520
ATTENTION: FINANCIAL/BUSINESS EDITORS
FOR IMMEDIATE RELEASE: April 24, 2000
NBT BANCORP INC. ANNOUNCES EARNINGS
AND DECLARES CASH DIVIDEND
NORWICH, NY --- NBT Bancorp Inc. (NASDAQ: NBTB), parent company of NBT
Bank, NA (NBT) and LA Bank, NA (LA), reported net income of $4.2 million or
$0.23 per diluted share for the first quarter of 2000. After giving effect to
non-recurring after-tax merger expenses of $1.1 million ($0.06 per share), net
income declined $1.5 million or 26.6% compared to first quarter 1999 earnings of
$5.8 million or $0.32 per diluted share.
"Comparative results between first quarter 2000 and 1999 were anticipated based
on the $0.5 million in one time gains taken in 1999 and first quarter 2000
merger related expenses of $1.1 million. Also, corporate organizational changes
that took place in September 1999 to better position NBT for future growth are
still effecting current results," said President and CEO, Daryl R. Forsythe.
"While net income (excluding non-recurring merger related costs) was down
slightly, core earnings remain strong. We continue to dedicate significant
resources to outstanding merger activities, including the merger with BSB
Bancorp, Inc., announced last week. The benefits of the mergers and corporate
organizational changes will begin to be realized later in the year in the form
of cost savings, expanded services and overall efficiencies.
"Benefits to NBT Bancorp Inc. are anticipated when the pending Pioneer American
Holding Company Corp. (Pioneer) merger occurs. Subsequent to that merger, LA and
Pioneer will be consolidated into one Pennsylvania based bank representing the
largest community bank headquartered in Northeastern Pennsylvania. This process
is expected to be complete in the third quarter of 2000."
On April 20, 2000, the Board of Directors for NBT Bancorp Inc. and BSB Bancorp,
Inc. (BSB) announced a definitive agreement to merge. The strategic alliance
will create a bank holding company with assets of $4.7 billion and proforma
market capitalization of approximately $539 million. The merger is expected to
be completed during the fourth quarter of 2000 and be accretive during its first
full year. "We will be the dominant community bank in both of our strategic
markets," Forsythe added.
<PAGE>
Page 2 of 7
Selected Performance Ratios are as follows:
o The Return on Average Assets ("ROAA") of 0.86% declined 36.3% from the
comparable prior year's first quarter ROAA of 1.35%.
o Return on Average Equity ("ROAE") of 10.59% compares to 13.84% for the
first quarter of 1999, a 23.5% decline.
o Net Interest Margin of 4.32% for the first quarter of 2000 declined
from 4.52% in the first quarter of 1999 primarily as a result of
interest bearing liabilities repricing faster than interest bearing
assets in this rising interest rate environment.
o The Efficiency Ratio of 57.24% for the first quarter 2000 increased
3.9% from the first quarter 1999 ratio of 55.07%.
President Forsythe explained, "Improvements in the efficiency ratio through a
smooth merger integration plan is the primary mission of NBT Bancorp Inc. While
we are positioned well and anticipate our strong loan growth to continue, we
realize the importance of recognizing cost savings associated with LA Bank and
the mergers with Pioneer and BSB. To this end, we are dedicating appropriate
resources to support effective and efficient integration."
On December 8, 1999, the Company announced the signing of a definitive agreement
of merger with Pioneer American Holding Company Corp., parent company of Pioneer
American Bank, NA. The Company announced on April 20, 2000 that the Board of
Governors of the Federal Reserve System and the State of Pennsylvania Department
of Banking have given clearance to proceed with the merger.
On March 28, 2000, the Company announced the signing of a definitive agreement
to acquire all of the stock of M. Griffith Inc., a Utica, NY based securities
firm offering investment, financial advisory and asset-management services. The
acquisition is expected to be finalized in April, 2000.
The Board of Directors of NBT Bancorp Inc. has also declared a first quarter
2000 cash dividend of $0.17 per share for shareholders of record as of June 1,
2000, payable on June 15, 2000.
NBT Bancorp Inc. is a bank holding company headquartered in Norwich, NY with
combined assets of $2 billion. Wholly owned subsidiaries of NBT Bancorp Inc.
include NBT Bank, NA, which has 36 locations serving Central and Northern New
York; and LA Bank, NA, which has 22 locations serving Northeastern Pennsylvania.
NBT Bank, NA and LA Bank, NA are full service community banks providing a broad
range of financial products.
This news release may be deemed to be solicitation material in respect of the
proposed acquisition of Pioneer American Holding Company Corp. by NBT through
the merger of a wholly-owned subsidiary of NBT with Pioneer American, pursuant
to an Agreement and Plan of Merger, dated as of December 7, 1999 and amended as
of March 7, 2000, by and among NBT, a wholly-owned subsidiary of NBT, and
Pioneer American (the "Agreement"). This filing 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").
<PAGE>
Page 3 of 7
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, Peter B. Gregory, William C.
Gumble, Bruce D. Howe, Andrew S. Kowalczyk, Jr., Dan B. Marshman, John G.
Martines, John C. Mitchell, William L. Owens and Paul O. Stillman. As of
February 29, 2000, these directors and executive officers beneficially owned in
the aggregate 1,415,558 shares, or approximately 7.82%, of NBT's outstanding
common stock.
In connection with the proposed merger, NBT has filed a registration statement
on SEC Form S-4 with the SEC, File No. 333-30988, which the SEC declared
effective on April 3, 2000. NBT and Pioneer American have prepared and mailed to
their respective stockholders a joint proxy statement/prospectus, dated April 3,
2000 (the "Proxy Statement/Prospectus"). NBT and Pioneer American will prepare
and file with the SEC a post-effective amendment to the aforementioned S-4
registration statement, which will include a supplement (the "Supplement") to
the Proxy Statement/Prospectus. Stockholders of NBT are encouraged to read the
post-effective amendment and the Supplement because these documents will contain
important information about the merger. After the post-effective amendment is
filed with the SEC, it will be available for free, both on the SEC's web site
(www.sec.gov) and from NBT's corporate secretary. The Form S-4 registration
statement and the Proxy Statement/Prospectus can also be obtained at no cost in
the same manner.
For more information visit our web sites at WWW.NBTBANK.COM and WWW.LABANK.COM
--------------- --------------
Except for the historical information contained herein, the matters discussed in
this news release are forward looking statements that involve risks and
uncertainties, including the timely availability and acceptance of new products,
the impact of competitive products and pricing, the management of growth and
other risks detailed from time to time in the Company's SEC reports.
(Financial Tables Follow)
<PAGE>
Page 4 of 7
<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 March 31,
Net Income $ 4,241 $ 5,776 $ (1,535) (26.6)%
Diluted Earnings Per Share $ 0.23 $ 0.32 $ (0.09) (28.1)%
Average Diluted Common Shares Outstanding 18,133,704 18,103,581 30,123 0.2 %
Return on Average Assets 0.86% 1.35% (0.49)% (36.3)%
Return on Average Equity 10.59% 13.84% (3.25)% (23.5)%
Net Interest Margin 4.32% 4.52% (0.20)% (4.4)%
Efficiency Ratio 57.24% 55.07% 2.17 % 3.9 %
Expense Ratio 2.04% 1.96% 0.08 % 4.1%
Balance Sheet as of March 31,
Loans $ 1,295,651 $ 1,081,972 $ 213,679 19.7%
Earnings Assets $ 1,919,898 $ 1,672,862 $ 247,036 14.8%
Total Assets $ 2,029,106 $ 1,787,508 $ 241,598 13.5%
Deposits $ 1,523,749 $ 1,334,145 $ 189,604 14.2%
Stockholders' Equity $ 162,532 $ 169,960 $ (7,428) (4.4)%
Average Balances
(Quarter Ended March 31,)
Loans $ 1,258,144 $ 1,065,313 $ 192,831 18.1%
Earnings Assets $ 1,890,843 $ 1,632,450 $ 258,393 15.8%
Total Assets $ 1,983,649 $ 1,741,376 $ 242,273 13.9%
Deposits $ 1,493,278 $ 1,334,062 $ 159,216 11.9%
Stockholders' Equity $ 161,042 $ 169,273 $ (8,231) (4.9)%
</TABLE>
<PAGE>
Page 5 of 7
<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>
Asset Quality At March 31,
Nonaccrual Loans $ 7,135 $ 6,029 $ 1,106 18.3%
Other Real Estate Owned $ 789 $ 1,895 $ (1,106) (58.4)%
Total Nonperforming Assets $ 7,924 $ 7,924 - -
90 Days Past Due and Still Accruing $ 630 $ 767 $ (137) (17.9)%
Allowance to Loans 1.35% 1.44% (0.09)% (6.3)%
Total Nonaccrual Loans to Loans 0.55% 0.56% (0.01)% (1.8)%
Total Nonperforming Assets to Assets 0.39% 0.44% (0.05)% (11.4)%
At March 31,
Equity to Assets 8.01% 9.51% (1.50)% (15.8)%
Book Value Per Share $ 8.98 $ 9.45 $ (0.47) (5.0)%
Tangible Book Value Per Share $ 8.53 $ 8.92 $ (0.39) (4.4)%
Tier 1 Leverage Ratio 8.61% 9.21% (0.60)% (6.5)%
Tier 1 Capital Ratio 12.93% 14.67% (1.74)% (11.9)%
Total Risk-Based Capital Ratio 14.08% 15.85% (1.77)% (11.2)%
- ------------------------------------------------------------------------------------------------------------------------------------
Quarterly Common Stock Price*
2000 1999 1998
Quarter End High Low High Low High Low
---- --- ----- --- ---- ---
March 31 $16.50 $11.38 $23.33 $19.89 $19.05 $15.99
June 30 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
- ------------------------------------------------------------------------------------------------------------------------------------
*historical NBT Bancorp Inc. only
All common stock and per share data has been restated to give retroactive effect to stock dividends and splits.
</TABLE>
<PAGE>
Page 6 of 7
<TABLE>
<CAPTION>
NBT Bancorp Inc. and Subsidiary March 31, December 31, March 31,
Consolidated Balance Sheets 2000 1999 1999
- ------------------------------------------------------------------------------------------------------------------------------------
(in thousands, except share and per share data) (Unaudited) (Unaudited)
<S> <C> <C> <C>
ASSETS
Cash $ 60,823 $ 64,431 $ 60,234
Securities available for sale, at fair value 497,528 500,423 491,502
Securities held to maturity (fair value - $75,808, $73,648
and $82,531) 78,772 76,706 70,386
Loans 1,295,651 1,222,654 1,081,971
Less allowance for loan losses 17,543 16,654 15,608
- ------------------------------------------------------------------------------------------------------------------------------------
Net loans 1,278,108 1,206,000 1,066,363
Premises and equipment, net 40,292 40,830 38,667
Other assets 73,583 73,042 60,356
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $2,029,106 $1,961,432 $1,787,508
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $ 210,579 $ 223,143 $ 189,659
Savings, NOW, and money market 490,328 487,746 464,058
Time 822,842 766,729 680,428
- ------------------------------------------------------------------------------------------------------------------------------------
Total deposits 1,523,749 1,477,618 1,334,145
Short-term borrowings 165,445 137,567 119,648
Long-term debt 161,793 172,575 149,887
Other liabilities 15,587 13,195 13,868
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,866,574 1,800,955 1,617,548
- ------------------------------------------------------------------------------------------------------------------------------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value at March 31, 2000,
no par, stated value $1.00 at December 31, 1999 and
March 31, 1999; shares authorized-2,500,000 - - -
Common stock, $0.01 par value at March 31, 2000,
no par, stated value $1.00 at December 31, 1999 and
March 31, 1999; shares authorized-30,000,000; issued
18,623,435, 18,616,992, and 17,963,950 at March 31, 2000,
December 31, 1999 and March 31, 1999, respectively 186 18,617 17,964
Additional paid-in-capital 167,047 148,717 138,146
Retained earnings 24,225 23,060 26,296
Accumulated other comprehensive (loss) income (17,615) (18,252) 598
Common stock in treasury at cost 522,567, 538,936,
and 600,953 shares at March 31, 2000, December 31, 1999
and March 31, 1999, respectively (11,311) (11,665) (13,044)
- ------------------------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 162,532 160,477 169,960
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,029,106 $1,961,432 $1,787,508
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Page 7 of 7
<TABLE>
<CAPTION>
NBT Bancorp Inc. and Subsidiary Three months ended March 31,
Consolidated Statements of Income 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
(in thousands, except per share data) (Unaudited)
<S> <C> <C>
Interest and fee income:
Loans $27,189 $22,679
Securities - available for sale 8,872 7,625
Securities - held to maturity 993 840
Other - FRB & FHLB stock 402 458
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest and fee income 37,456 31,602
- ------------------------------------------------------------------------------------------------------------------------------------
Interest expense:
Deposits 13,446 11,006
Short-term borrowings 2,054 1,139
Long-term debt 2,346 1,739
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest expense 17,846 13,884
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income 19,610 17,718
Provision for loan losses 1,334 1,120
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income after provision for loan losses 18,276 16,598
- ------------------------------------------------------------------------------------------------------------------------------------
Noninterest income:
Trust 860 835
Service charges on deposit accounts 1,620 1,408
Securities gains - 668
Other 1,135 1,365
- ------------------------------------------------------------------------------------------------------------------------------------
Total noninterest income 3,615 4,276
- ------------------------------------------------------------------------------------------------------------------------------------
Noninterest expense:
Salaries and employee benefits 7,081 5,970
Office supplies and postage 592 637
Occupancy 1,232 1,024
Equipment 1,137 947
Professional fees and outside services 756 697
Data processing and communications 1,132 972
Amortization of intangible assets 312 329
Merger and acquisition costs 1,122 -
Other operating 1,619 1,240
- ------------------------------------------------------------------------------------------------------------------------------------
Total noninterest expense 14,983 11,816
- ------------------------------------------------------------------------------------------------------------------------------------
Income before income taxes 6,908 9,058
Income taxes 2,667 3,282
- ------------------------------------------------------------------------------------------------------------------------------------
Net income $ 4,241 $ 5,776
- ------------------------------------------------------------------------------------------------------------------------------------
Earnings per share:
Basic $ 0.24 $ 0.32
Diluted $ 0.23 $ 0.32
- ------------------------------------------------------------------------------------------------------------------------------------
All per share data has been restated to give retroactive effect to stock
dividends and splits.
</TABLE>
***END OF RELEASE***
