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NBT Bancorp Inc. Announces First Quarter Diluted Earnings Per Share of $0.41, Net Income of $13.7 Million; Organic Loan Growth of 4.2%

04/23/12

NORWICH, N.Y., Apr 23, 2012 (GlobeNewswire via COMTEX) --NBT Bancorp Inc. (NBT) (Nasdaq:NBTB) reported today net income for the three months ended March 31, 2012 was $13.7 million, down $0.6 million, or 4.6%, from the three months ended March 31, 2011. Net income per diluted share for the three months ended March 31, 2012 was $0.41 per share, equal to the net income per diluted share for the three months ended March 31, 2011. Annualized return on average assets and return on average equity were 0.97% and 10.12%, respectively, for the three months ended March 31, 2012, compared with 1.08% and 10.78%, respectively, for the three months ended March 31, 2011. Net interest margin (on a fully taxable equivalent or FTE basis) was 3.90% for the three months ended March 31, 2012, down 21 basis points from 4.11% for the three months ended March 31, 2011.

Selected highlights for the first quarter of 2012 include:

  • Diluted earnings per share of $0.41 equaled last year's first quarter results.
  • Outstanding loan balances as of March 31, 2012 are up 5.3% from a year ago, driven by 4.2% organic growth for the same period. Average loan balances for the quarter ending March 31, 2012 compared to March 31, 2011 were up the same.
  • Net interest margin was 3.90% for the first quarter, down from the same period of 2011, resulting from the continued impact of the low rate environment on loans and investments.
  • Annualized net charge-off ratio was 0.47% as compared to 0.59% for the same period last year.
  • Past due loans to total loans and leases was 0.58% as compared to 0.89% at December 31, 2011.
  • Continued strategic expansion:

  • In New York: Closed on three branches in Greene County and customer balances of a branch in Schoharie County on January 21, 2012.
  • In Massachusetts: Opened a fifth Massachusetts branch in Lenox on February 7, 2012.
  • In New Hampshire: Acquisition of Hampshire First Bank is expected to close in the second quarter of 2012.

"While the still-fragile economy poses ongoing challenges, NBT continues to invest in the future and expand delivery of our unique brand of community banking," said NBT President and CEO Martin Dietrich. "During the first quarter of 2012, we were pleased to add locations in Greene County, N.Y., and to open our fifth office in Western Massachusetts. In the second quarter, we look forward to entering a fifth state with the completion of our acquisition of Hampshire First Bank. Our consistent ability to generate loan growth, coupled with our strong fundamentals and quality team of community-minded bankers will enable NBT to continue to navigate the challenges ahead."

Loan and Lease Quality and Provision for Loan and Lease Losses

The Company recorded a provision for loan and lease losses of $4.5 million during the three months ended March 31, 2012, as compared with $4.0 million for the three months ended March 31, 2011. Net charge-offs were $4.5 million for the three months ended March 31, 2012, down from $5.3 million for the same period in 2011, due primarily to the charge-off of one large commercial loan during the first quarter of 2011. The annualized net charge-off ratio for the three months ended March 31, 2012 was 0.47% compared to 0.59% for the three months ended March 31, 2011.

Past due loans as a percentage of total loans was 0.58% at March 31, 2012, as compared with 0.89% at December 31, 2011. Nonperforming loans increased to $45.9 million or 1.20% of total loans and leases at March 31, 2012 compared with $41.5 million or 1.09% at December 31, 2011, due to an increase in nonaccrual loans related to one commercial relationship, which has been specifically reserved for by the Company during the three months ended March 31, 2012

Improvement in certain general asset quality indicators reduced the allowance which was offset by the aforementioned specific credit. The allowance for loan and lease losses totaled $71.3 million at March 31, 2012 and December 31, 2011. The allowance for loan and lease losses as a percentage of loans and leases was 1.87% at March 31, 2012 as compared to 1.88% at December 31, 2011.

Net Interest Income

Net interest income was up slightly to $49.4 million for the three months ended March 31, 2012, compared with $49.3 million for the three months ended March 31, 2011. The Company's FTE net interest margin was 3.90% for the three months ended March 31, 2012, down from 4.11% for the three months ended March 31, 2011. The increase in average earning assets in the first quarter of 2012 as compared to the first quarter of 2011 offset the decline in net interest margin, resulting in a relatively flat net interest income for the periods.

While the yield on interest bearing liabilities decreased 20 basis points, the yield on interest earning assets declined 38 basis points, resulting in margin compression for the three months ended March 31, 2012, compared to the same period for 2011. The yield on securities available for sale was 2.61% for the three months ended March 31, 2012, as compared with 3.14% for the three months ended March 31, 2011. This decrease was due primarily to the reinvestment of cash flows from maturing securities and cash received from branch acquisitions into lower yielding securities in the current rate environment. The average balance of securities available for sale for the first quarter of 2012 was $1.2 billion, up approximately $114.7 million, or 10.4%, from the first quarter of 2011. This increase was due primarily to reinvestment of maturing held to maturity securities into available for sale securities, and investment of liquidity from acquisition activity and deposit growth into available for sale securities. The yield on loans and leases was 5.33% for the three months ended March 31, 2012, as compared with 5.73% for the three months ended March 31, 2011. The average balance of loans and leases for the first quarter of 2012 was $3.8 billion, up approximately $193.3 million, or 5.3% (4.2% organic), from the first quarter of 2011. The rate on time deposits was 1.63% for the three months ended March 31, 2012, as compared with 1.90% for the three months ended March 31, 2011, while the rate on money market deposit accounts was 0.23% for the three months ended March 31, 2012, as compared with 0.42% for the three months ended March 31, 2011.

Noninterest Income

Noninterest income for the three months ended March 31, 2012 was $23.1 million, up 14.6% or $3.0 million, compared with $20.1 million for the same period in 2011. Insurance and other financial services revenue increased approximately $0.4 million for the three months ended March 31, 2012, as compared to the three months ended March 31, 2011. This increase was due primarily to the acquisition of an insurance agency during the second quarter of 2011 and an increase in brokerage commission revenue from new business. ATM and debit card fees increased approximately $0.3 million for the three months ended March 31, 2012, as compared to the three months ended March 31, 2011, due primarily to an increase in card usage. Other noninterest income increased approximately $2.4 million for the three months ended March 31, 2012 as compared to March 31, 2011. This increase was due primarily to a $1.1 million payoff gain on a purchased commercial real estate loan as well as a prepayment penalty fee collected totaling $0.8 million during the first quarter of 2012, related to a previously disclosed loss of a retirement plan client. The Company also realized net securities gains of approximately $0.5 million during the first quarter of 2012. These increases were offset by a decrease in service charges on deposit accounts of approximately $0.7 million, or 14.4%, for the three months ended March 31, 2012, as compared with the same period in 2011 primarily due to a decrease in overdraft fee income.

Noninterest Expense and Income Tax Expense

Noninterest expense for the three months ended March 31, 2012 was $48.5 million, up $3.4 million or 7.6%, for the same period in 2011. Salaries and employee benefits increased $1.7 million, or 6.9%, for the three months ended March 31, 2012, compared with the same period in 2011. This increase was due primarily to increases in full-time-equivalent employees from branch acquisitions and merit increases. Professional fees and outside services increased $0.7 million, or 31.9%, for the three months ended March 31, 2012 as compared to the same period in 2011. This increase was due primarily to $0.3 million in legal expenses incurred related to a class action lawsuit. Data processing and communications expenses increased approximately $0.3 million, or 11.8%, for the three months ended March 31, 2012 as compared to the same period in 2011, due primarily to strategic expansion into new markets. Other operating expenses increased approximately $0.7 million for the three months ended March 31, 2012, as compared to the same period in 2011. This increase was due primarily to merger related expenses of $0.5 million incurred during the first quarter of 2012, with no other significant drivers. These increases were partially offset by a decrease in Federal Deposit Insurance Corporation ("FDIC") expenses of approximately $0.6 million for the three months ended March 31, 2012 as compared to the three months ended March 31, 2011. This decrease was due to the FDIC redefining the deposit insurance assessment base effective the second quarter of 2011. Income tax expense for the three month period ended March 31, 2012 was $5.9 million, down from $6.0 million for the same period in 2011. The effective tax rate was 30.0% for the three months ended March 31, 2012, as compared to 29.7% for the same period in 2011.

Balance Sheet

Total assets were $5.8 billion at March 31, 2012, up $186.6 million or 3.3% from December 31, 2011. Loans and leases were $3.8 billion at March 31, 2012, up $18.5 million from December 31, 2011. Total deposits were $4.6 billion at March 31, 2012, up $200.3 million from December 31, 2011. Stockholders' equity was $548.7 million, representing a total equity-to-total assets ratio of 9.49% at March 31, 2012, compared with $538.1 million or a total equity-to-total assets ratio of 9.61% at December 31, 2011.

Stock Repurchase Program

The Company did not purchase any shares of its common stock during the three month period ended March 31, 2012. At March 31, 2012, there were 1,517,581 shares available for repurchase under two previously announced stock repurchase plans, which both expire on December 31, 2013.

Dividend

The Company anticipates that the NBT Board of Directors will declare a regular 2012 second-quarter cash dividend at their next scheduled meeting, which will be held on May 1, 2012.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $5.8 billion at March 31, 2012. 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 132 locations, including 89 NBT Bank offices in upstate New York, five NBT Bank offices in western Massachusetts, three NBT Bank offices in northwestern Vermont and 35 Pennstar Bank offices in northeastern Pennsylvania. EPIC Advisors, Inc., based in Rochester, N.Y., is a full-service 401(k) plan recordkeeping firm. Mang Insurance Agency, LLC, based in Norwich, N.Y., 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.manginsurance.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
                                        2012           2011        Change     Change
                                   ---------------  ----------  -----------  -------
                                      (dollars in thousands,
                                      except per share data)
  Three Months Ended March 31,
  Net Income                               $13,650     $14,307       ($657)      -5%
  Diluted Earnings Per Share                 $0.41       $0.41        $0.00       0%
  Weighted Average Diluted
   Common Shares Outstanding            33,441,652  34,650,368  (1,208,716)      -3%
  Return on Average Assets (1)               0.97%       1.08%       -11 bp     -10%
  Return on Average Equity (1)              10.12%      10.78%       -66 bp      -6%
  Net Interest Margin (2)                    3.90%       4.11%       -21 bp      -5%
  -------------------------------  ---------------  ----------  -----------  -------

                                                     December
  Asset Quality                       March 31,        31,
                                        2012           2011
                                   ---------------  ----------
  Nonaccrual Loans                         $44,481     $38,290
  90 Days Past Due and Still
   Accruing                                 $1,437      $3,190
  Total Nonperforming Loans                $45,918     $41,480
  Other Real Estate Owned                   $1,954      $2,160
  Total Nonperforming Assets               $47,872     $43,640
  Allowance for Loan and Lease
   Losses                                  $71,334     $71,334
  Allowance for Loan and Lease
   Losses to Total Loans and
   Leases                                    1.87%       1.88%
  Total Nonperforming Loans to
   Total Loans and Leases                    1.20%       1.09%
  Total Nonperforming Assets to
   Total Assets                              0.83%       0.78%
  Past Due Loans to Total Loans
   and Leases                                0.58%       0.89%
  Allowance for Loan and Lease
   Losses to Total Nonperforming
   Loans                                   155.35%     171.97%
  Net Charge-Offs to YTD Average
   Loans and Leases (1)                      0.47%       0.56%
  -------------------------------  ---------------  ----------  -----------  -------
  Capital
  Equity to Assets                           9.49%       9.61%
  Book Value Per Share                      $16.51      $16.23
  Tangible Book Value Per Share             $11.94      $11.70
  Tier 1 Leverage Ratio                      8.80%       8.74%
  Tier 1 Capital Ratio                      11.64%      11.56%
  Total Risk-Based Capital Ratio            12.90%      12.81%
  -------------------------------  ---------------  ----------  -----------  -------

  -------------------------------  ---------------  ----------
  Quarterly Common Stock Price          2012           2011
  Quarter End                       High       Low     High
                                   ---------------     Low
                                                    $24.98
  March 31                         $24.10   $20.75  $21.55
                                                    $23.32
  June 30                                           $20.62
                                                    $23.25
  September 30                                      $17.05
                                                    $22.63
  December 31                                       $17.47
  -------------------------------  ---------------  ----------
  (1) Annualized
  (2) Calculated on a FTE basis
                               NBT Bancorp Inc. and
                                   Subsidiaries
                                SELECTED FINANCIAL
                                    HIGHLIGHTS
                                    (unaudited)
                                            December
                              March 31,       31,         Net     Percent
                                 2012         2011      Change     Change
                             ------------  ----------  ---------  -------
                              (dollars in thousands)
  Balance Sheet
  Loans and Leases             $3,818,666  $3,800,203    $18,463       0%
  Earning Assets               $5,319,419  $5,112,831   $206,588       4%
  Total Assets                 $5,784,973  $5,598,406   $186,567       3%
  Deposits                     $4,567,404  $4,367,149   $200,255       5%
  Stockholders' Equity           $548,733    $538,110    $10,623       2%
  -------------------------  ------------  ----------  ---------  -------
                              March 31,     March 31,
                                 2012         2011
                             ------------  ----------
  Average Balances            (dollars in thousands)
  Three Months Ended
  Loans and Leases             $3,809,461  $3,616,191   $193,270
  Securities Available For
   Sale
  (excluding unrealized
   gains or losses)            $1,212,766  $1,098,042   $114,724
  Securities Held To
   Maturity                       $70,542     $94,098  ($23,556)
  Trading Securities               $3,298      $2,969       $329
  Regulatory Equity
   Investment                     $27,020     $27,246     ($226)
  Short-Term Interest
   Bearing Accounts               $80,127    $141,309  ($61,182)
  Total Earning Assets         $5,199,916  $4,976,886   $223,030
  Total Assets                 $5,659,458  $5,397,057   $262,401
  Interest Bearing Deposits    $3,382,603  $3,289,925    $92,678
  Non-Interest Bearing
   Deposits                    $1,062,557    $904,748   $157,809
  Short-Term Borrowings          $162,806    $153,374     $9,432
  Long-Term Borrowings           $445,817    $445,401       $416
  Total Interest Bearing
   Liabilities                 $3,991,226  $3,888,700   $102,526
  Stockholders' Equity           $542,628    $538,211     $4,417
  -------------------------  ------------  ----------  ---------
  NBT Bancorp Inc. and
   Subsidiaries                     March 31,     December 31,
  Consolidated Balance Sheets
   (unaudited)                         2012           2011
  ------------------------------  -------------  -------------
  (in thousands)
  ASSETS
  Cash and due from banks             $ 108,400      $ 128,517
  Short term interest bearing
   accounts                             191,204            864
  Securities available for sale,
   at fair value                      1,243,122      1,244,619
  Securities held to maturity
   (fair value of $71,570and
   $72,198                               70,280         70,811
  at March 31, 2012 and December
   31, 2011, respectively)
  Trading securities                      3,736          3,062
  Federal Reserve and Federal
   Home Loan Bank stock                  27,020         27,020
  Loans and leases                    3,818,666      3,800,203
  Less allowance for loan and
   lease losses                          71,334         71,334
  ------------------------------  -------------  -------------
   Net loans and leases               3,747,332      3,728,869
  Premises and equipment, net            75,232         74,541
  Goodwill                              133,614        132,029
  Intangible assets, net                 18,130         18,194
  Bank owned life insurance              78,597         77,626
  Other assets                           88,306         92,254
  ------------------------------  -------------  -------------
  TOTAL ASSETS                      $ 5,784,973    $ 5,598,406
  ------------------------------  -------------  -------------
  LIABILITIES AND STOCKHOLDERS'
   EQUITY
  Deposits:
  Demand (noninterest bearing)      $ 1,111,563    $ 1,052,906
  Savings, NOW, and money market      2,492,811      2,381,116
  Time                                  963,030        933,127
  ------------------------------  -------------  -------------
   Total deposits                     4,567,404      4,367,149
  Short-term borrowings                 165,977        181,592
  Long-term debt                        370,490        370,344
  Trust preferred debentures             75,422         75,422
  Other liabilities                      56,947         65,789
  ------------------------------  -------------  -------------
   Total liabilities                  5,236,240      5,060,296

  Total stockholders' equity            548,733        538,110
  ------------------------------  -------------  -------------

  TOTAL LIABILITIES AND
   STOCKHOLDERS' EQUITY             $ 5,784,973    $ 5,598,406
  ------------------------------  -------------  -------------
                                   Three Months Ended
  NBT Bancorp Inc. and
   Subsidiaries                         March 31,
  Consolidated Statements of
   Income (unaudited)                2012        2011
  ------------------------------  ----------  ---------
  (in thousands, except per
   share data)
  Interest, fee and dividend
   income:
  Loans and leases                  $ 50,208   $ 50,860
  Securities available for sale        7,366      7,904
  Securities held to maturity            640        800
  Other                                  392        493
  ------------------------------  ----------  ---------
   Total interest, fee and
    dividend income                   58,606     60,057
  ------------------------------  ----------  ---------
  Interest expense:
  Deposits                             5,143      6,287
  Short-term borrowings                   41         58
  Long-term debt                       3,581      3,571
  Trust preferred debentures             449        889
  ------------------------------  ----------  ---------
   Total interest expense              9,214     10,805
  ------------------------------  ----------  ---------
  Net interest income                 49,392     49,252
  Provision for loan and lease
   losses                              4,471      3,965
  ------------------------------  ----------  ---------
   Net interest income after
    provision for loan and lease
    losses                            44,921     45,287
  ------------------------------  ----------  ---------
  Noninterest income:
  Insurance and other financial
   services revenue                    6,154      5,773
  Service charges on deposit
   accounts                            4,341      5,072
  ATM and debit card fees              2,962      2,668
  Retirement plan administration
   fees                                2,333      2,171
  Trust                                2,129      2,036
  Bank owned life insurance
   income                                971      1,035
  Net securities gains                   455         27
  Other                                3,711      1,344
  ------------------------------  ----------  ---------
   Total noninterest income           23,056     20,126
  ------------------------------  ----------  ---------
  Noninterest expense:
  Salaries and employee benefits      26,725     25,004
  Occupancy                            4,491      4,522
  Data processing and
   communications                      3,258      2,914
  Professional fees and outside
   services                            2,725      2,066
  Equipment                            2,380      2,190
  Office supplies and postage          1,671      1,545
  FDIC expenses                          931      1,496
  Advertising                            802        568
  Amortization of intangible
   assets                                819        733
  Loan collection and other real
   estate owned                          638        719
  Other operating                      4,034      3,304
  ------------------------------  ----------  ---------
   Total noninterest expense          48,474     45,061
  ------------------------------  ----------  ---------
  Income before income taxes          19,503     20,352
  Income taxes                         5,853      6,045
  ------------------------------  ----------  ---------
   Net income                       $ 13,650   $ 14,307
  ------------------------------  ----------  ---------
  Earnings Per Share:
   Basic                              $ 0.41     $ 0.42
   Diluted                            $ 0.41     $ 0.41
  ------------------------------  ----------  ---------
  NBT Bancorp Inc. and
   Subsidiaries                      1Q         4Q         3Q         2Q         1Q
  Quarterly Consolidated
   Statements of Income
   (unaudited)                       2012       2011       2011       2011       2011
  ------------------------------  ---------  ---------  ---------  ---------  ---------
  (in thousands, except per
   share data)
  Interest, fee and dividend
   income:
  Loans and leases                 $ 50,208   $ 51,393   $ 50,991   $ 51,126   $ 50,860
  Securities available for sale       7,366      7,461      7,771      7,947      7,904
  Securities held to maturity           640        661        680        745        800
  Other                                 392        383        342        440        493
  ------------------------------  ---------  ---------  ---------  ---------  ---------
   Total interest, fee and
    dividend income                  58,606     59,898     59,784     60,258     60,057
  ------------------------------  ---------  ---------  ---------  ---------  ---------
  Interest expense:
  Deposits                            5,143      5,330      5,352      6,051      6,287
  Short-term borrowings                  41         39         56         52         58
  Long-term debt                      3,581      3,621      3,621      3,591      3,571
  Trust preferred debentures            449        409        394        400        889
  ------------------------------  ---------  ---------  ---------  ---------  ---------
   Total interest expense             9,214      9,399      9,423     10,094     10,805
  ------------------------------  ---------  ---------  ---------  ---------  ---------
  Net interest income                49,392     50,499     50,361     50,164     49,252
  Provision for loan and lease
   losses                             4,471      5,576      5,175      6,021      3,965
  ------------------------------  ---------  ---------  ---------  ---------  ---------
   Net interest income after
    provision for loan and lease
    losses                           44,921     44,923     45,186     44,143     45,287
  ------------------------------  ---------  ---------  ---------  ---------  ---------
  Noninterest income:
  Insurance and other financial
   services revenue                   6,154      4,918      5,127      5,025      5,773
  Service charges on deposit
   accounts                           4,341      5,405      5,532      5,455      5,072
  ATM and debit card fees             2,962      2,911      3,135      2,928      2,668
  Retirement plan administration
   fees                               2,333      2,184      2,295      2,268      2,171
  Trust                               2,129      2,480      2,090      2,258      2,036
  Bank owned life insurance
   income                               971        716        674        660      1,035
  Net securities gains                  455         52         12         59         27
  Other                               3,711      1,464      1,329      1,208      1,344
  ------------------------------  ---------  ---------  ---------  ---------  ---------
   Total noninterest income          23,056     20,130     20,194     19,861     20,126
  ------------------------------  ---------  ---------  ---------  ---------  ---------
  Noninterest expense:
  Salaries and employee benefits     26,725     25,105     25,068     24,035     25,004
  Occupancy                           4,491      3,967      3,887      3,987      4,522
  Data processing and
   communications                     3,258      3,186      3,054      3,117      2,914
  Professional fees and outside
   services                           2,725      2,552      2,215      2,088      2,066
  Equipment                           2,380      2,206      2,288      2,180      2,190
  Office supplies and postage         1,671      1,655      1,531      1,342      1,545
  FDIC expenses                         931        886        920        965      1,496
  Advertising                           802      1,174        685      1,033        568
  Amortization of intangible
   assets                               819        760        782        771        733
  Loan collection and other real
   estate owned                         638        793        676        443        719
  Other operating                     4,034      5,128      3,940      3,196      3,304
  ------------------------------  ---------  ---------  ---------  ---------  ---------
   Total noninterest expense         48,474     47,412     45,046     43,157     45,061
  ------------------------------  ---------  ---------  ---------  ---------  ---------
  Income before income taxes         19,503     17,641     20,334     20,847     20,352
  Income taxes                        5,853      3,919      5,117      6,192      6,045
  ------------------------------  ---------  ---------  ---------  ---------  ---------
   Net income                      $ 13,650   $ 13,722   $ 15,217   $ 14,655   $ 14,307
  ------------------------------  ---------  ---------  ---------  ---------  ---------
  Earnings per share:
   Basic                             $ 0.41     $ 0.42     $ 0.46     $ 0.43     $ 0.42
   Diluted                           $ 0.41     $ 0.41     $ 0.45     $ 0.43     $ 0.41
  ------------------------------  ---------  ---------  ---------  ---------  ---------
  Three Months ended March 31,
                                                     2012                               2011
                                      Average
                                   -------------              Yield/     Average                 Yield/
  (dollars in thousands)              Balance      Interest    Rates     Balance      Interest    Rates
  -------------------------------  -------------  ----------  ------  -------------  ----------  ------
  ASSETS
  Short-term interest bearing
   accounts                              $80,127         $35   0.18%       $141,309         $69   0.20%
  Securities available for sale
   (1)(excluding unrealized gains
   or losses)                          1,212,766       7,855   2.61%      1,098,042       8,501   3.14%
  Securities held to maturity (1)         70,542         965   5.50%         94,098       1,202   5.18%
  Investment in FRB and FHLB
   Banks                                  27,020         357   5.31%         27,246         425   6.33%
  Loans and leases (2)                 3,809,461      50,445              3,616,191      51,092
                                   -------------  ----------   5.33%  -------------  ----------   5.73%
  Total interest earning assets      $ 5,199,916    $ 59,657                           $ 61,289
                                                  ----------   4.61%    $ 4,976,886  ----------   4.99%
  Other assets                           459,542                            420,171
                                   -------------                      -------------
  Total assets                       $ 5,659,458                        $ 5,397,057
                                   -------------                      -------------
  LIABILITIES AND STOCKHOLDERS'
   EQUITY
  Money market deposit accounts       $1,089,347         612   0.23%     $1,085,882     $ 1,116   0.42%
  NOW deposit accounts                   694,937         530   0.31%        698,141         635   0.37%
  Savings deposits                       641,969         114   0.07%        574,370         165   0.12%
  Time deposits                          956,350       3,887                931,532       4,371
                                   -------------  ----------   1.63%  -------------  ----------   1.90%
  Total interest bearing deposits    $ 3,382,603     $ 5,143   0.61%    $ 3,289,925     $ 6,287   0.78%
  Short-term borrowings                  162,806          41   0.10%        153,374          58   0.15%
  Trust preferred debentures              75,422         449   2.40%         75,422         889   4.78%
  Long-term debt                         370,395       3,581                369,979       3,571
                                   -------------  ----------   3.89%  -------------  ----------   3.91%
  Total interest bearing
   liabilities                       $ 3,991,226     $ 9,214
                                                  ----------   0.93%    $ 3,888,700    $ 10,805   1.13%
  Demand deposits                      1,062,557                            904,748
  Other liabilities                       63,047                             65,398
  Stockholders' equity                   542,628                            538,211
                                   -------------                      -------------
  Total liabilities and
   stockholders' equity              $ 5,659,458                        $ 5,397,057
                                   -------------                      -------------
  Net interest income (FTE)                           50,443                             50,484
                                                  ----------                         ----------
  Interest rate spread                                         3.68%                              3.86%
  Net interest margin                                          3.90%                              4.11%
  Taxable equivalent adjustment                        1,051                              1,232
                                                  ----------                         ----------
  Net interest income                               $ 49,392                           $ 49,252
                                                  ==========                         ==========
  (1) Securities are shown at
   average amortized cost
  (2) For purposes of these computations, nonaccrual loans
   are included in the average loan balances outstanding
  NBT Bancorp Inc. and Subsidiaries
  Loans and Leases (Unaudited)
                                          March 31,    December 31,
  (In thousands)                             2012          2011
  -------------------------------------  ------------  ------------
  Residential real estate mortgages          $581,709      $581,511
  Commercial                                  631,019       611,298
  Commercial real estate mortgages            896,149       888,879
  Real estate construction and
   development                                 88,316        93,977
  Agricultural and agricultural real
   estate mortgages                           106,790       108,423
  Consumer                                    954,910       946,470
  Home equity                                 559,773       569,645
                                         ------------  ------------
   Total loans and leases                 $ 3,818,666   $ 3,800,203
                                         ============  ============

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: NBT Bancorp Inc.

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

Copyright © 2018 - NBT Bancorp All Right Reserved.