NORWICH – NBT Bancorp Inc. has reported net income for the year ended Dec. 31, 2008 of $58.4 million, up 15.9 percent or $8.1 million from 2007. This corresponds to a record diluted earnings per share of $1.80 for the year, compared to $1.51 per share for 2007.
“Although 2008 presented many challenges for the financial services industry and the economy in general, I am extremely pleased with the record earnings we achieved in this difficult environment,” said NBT President and CEO Martin Dietrich.
Net income for the three months ending Dec. 31 was $14.9 million, up 65.8 percent from the same quarter in 2007.
In response to the news, the NBT Board of Directors declared a 2009 first quarter cash dividend of $0.20 per share at a meeting held on Monday. The dividend will be paid on March 15 to shareholders of record as of March 1.
NBT’s total assets were $5.3 billion as of Dec. 31, up $134.3 million from the year end 2007. Loans and leases account for $3.7 billion of total assets, up $196.1 million or 5.7 percent from the prior year.
While NBT reported record earnings for 2008, it anticipates that current global economic conditions and challenges in the financial services industry may negatively impact earnings in 2009. In particular, the company expects FDIC premiums as well as pension and post-retirement expenses to increase significantly in the coming year. It also anticipates dividend revenues from the Federal Home Loan Bank to decrease. Other factors way impact 2009 results as well, making it difficult to estimate certain revenues, expenses and other related matters
“During 2008, we continued our controlled growth initiative by opening three new branches in our footprint,” Dietrich said. “While 2009 may be a very challenging year given the economic environment, I am confident in our ability to successfully navigate through the challenges ahead and deliver long-term value to our shareholders and customers.”