NORWICH — Profit fell almost 10 percent at NBT Bancorp, Inc. (NASDAQ: NBTB) in the second quarter as the banking company continued its growth strategy through mergers and acquisitions.

NBT reported second-quarter net income of $13.3 million, down by $1.4 million, or 9.5 percent, from the year-ago period. Earnings per share (EPS) fell to 40 cents from 43 cents a year earlier. The company’s EPS would have been 42 cents in the second quarter if not for 2 cents per share, or $800,000 total, in merger costs during the quarter. NBT closed on its acquisition of Hampshire First Bank on June 8 and now operates five branches in southern New Hampshire. 

NBT’s earnings beat analysts’ estimates of 37 cents per share, according to Bloomberg.com data. NBT reported its profit report July 23 after market close. NBT’s stock opened up 13 cents at $20.87 on the morning of July 24, before closing at $20.54, a loss of 20 cents, or 1 percent, on the day. Through July 25, NBT’s stock has declined 7.2 percent so far this year.

“During the second quarter, we continued to demonstrate commitment to strategic investment in our company’s future with extension of our footprint into a fifth state through the successful acquisition of Hampshire First Bank in southern New Hampshire,” NBT President and CEO Martin Dietrich said in the earnings report. “We are also encouraged by our strong loan growth during the first half of 2012, both organic and from our acquisition of Hampshire First Bank.” Strong commercial and consumer loan originations spurred the loan growth, he said. The average balance of loans and leases for the three months ended June 30, 2012, was $3.9 billion, up about 8 percent from the quarter ending June 30, 2011.

NBT reported a $4.1 million provision for loan and lease losses during the second quarter, down from just over 

$6 million a year ago. Its net charge-offs of loans fell to $4.7 million in this year’s second quarter, from $5.5 million in the second quarter of 2011, driven by general improvement in its asset-quality indicators, NBT said.

Net-interest income decreased slightly from $50.2 million a year ago to $49.8 million in this year’s second quarter. Non-interest income rose 4.1 percent to $20.7 million in this year’s second quarter as insurance and other financial-services revenue increased $300,000 as the company benefitted from an insurance-agency acquisition it made in May 2011.

Non-interest expense rose 9.8 percent to $47.4 million in this year’s second quarter compared to a year ago, primarily due to a $1 million increase in salaries and employee benefits and $800,000 in merger-related costs, NBT said.

NBT had total assets of about $6 billion on June 30, 2012, up 6.6 percent from Dec. 31, 2011. Loans and leases were $4.2 billion at the midway point of the year, up by $361 million from 2011 year-end. Total deposits were $4.7 billion on June 30, up by $321.8 million on Dec. 31.

NBT’s board of directors declared a third-quarter cash dividend of 20 cents per share, payable Sept. 15 to shareholders of record as of Sept. 1.

Headquartered in Norwich, NBT Bancorp (www.nbtbancorp.com) is a financial holding company that operates 132 NBT Bank, N.A. locations and 35 Pennstar Bank branches; EPIC Advisors, Inc., a Rochester–based 401(k) plan recordkeeping firm; and Mang Insurance Agency, LLC, a Norwich-based insurance agency.