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NBT Bancorp Inc. Announces Preliminary Fourth Quarter and Annual Results


NORWICH, NY, Jan 15, 2008 (MARKET WIRE via COMTEX News Network) -- NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today that it expects to report diluted earnings per share of $0.28 and $1.51 for the three and twelve months ended December 31, 2007, respectively. These preliminary results include a provision for loan and lease losses for the three months ended December 31, 2007 of $13.4 million. This provision compares to the provision for loan and lease losses of $4.8 million for the third quarter of 2007 and $3.5 million for the fourth quarter of 2006.

Within the $13.4 million of provision for loan and lease losses during the fourth quarter was approximately $8.6 million related to one large commercial loan. During the quarter, $6.0 million of the loan was charged off. As the Company previously disclosed in its Form 10-Q for the quarter ended September 30, 2007, this loan was current as of September 30, 2007, but subsequently became past due 30 days for the first time, and was being closely monitored.

Based on these preliminary results, the Company expects the allowance for loan and lease losses to total loans to be 1.57% at December 31, 2007, as compared to 1.60% at September 30, 2007 and 1.48% at December 31, 2006. The allowance for loan and lease losses to nonperforming loans was 177%, 178%, and 330% at December 31, 2007, September 30, 2007, and December 31, 2006, respectively. Nonperforming loans remained relatively flat from the last quarter at approximately $30.6 million at December 31, 2007 as compared to $30.7 million at September 30, 2007. In addition, potential problem loans decreased to $73.3 million at December 31, 2007 as compared to $80.6 million at September 30, 2007, but up from $69.8 million at December 31, 2006. For additional information, see the selected financial information below.

NBT President and CEO Martin A. Dietrich said, "While our nonperforming loans were consistent with the previous quarter, the potential problem loans in our portfolio decreased 9% from the third quarter and are now consistent with the first half of the year. We remain confident that our conservative credit culture and disciplined underwriting practices are effective, particularly during periods of economic uncertainty."

NBT is a financial holding company headquartered in Norwich, NY, that 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 121 locations, including 82 NBT Bank offices in upstate New York and 39 Pennstar Bank offices in northeastern Pennsylvania. EPIC Advisors, Inc., based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm. Hathaway Insurance Agency, Inc., based in Gloversville, NY, is a full-service insurance agency. More information about NBT and its divisions can be found on the Internet at:,,, and

                  Selected Financial Data (in thousands)
2007                  Q4-2007    Q3-2007    Q2-2007    Q1-2007    Q4-2006
----                 ---------  ---------  ---------  ---------  ---------
Net Income           $   8,985  $  15,147  $  12,064  $  14,132  $  13,648
Average Diluted
 Shares Outstanding     32,398     32,921     33,936     34,457     34,402
Diluted Earnings Per
 Share                    0.28       0.46       0.36       0.41       0.40
Net Charge-Offs      $  14,065  $   7,038  $   3,267  $   2,129  $   3,543
Provision for Loan
 and Lease Losses       13,440      4,788      9,770      2,096      3,484
Allowance for Loan
 and Lease Losses    $  54,183  $  54,808  $  57,058  $  50,554  $  50,587
Nonperforming Loans     30,579     30,707     34,419     17,363     15,307
Total Loans and
 Leases              3,455,851  3,422,217  3,432,300  3,395,476  3,412,654
Past Due Loans          25,914     24,044     29,332     28,497     28,409
Allowance for Loan
 and Lease Losses to
 Total Loans and
 Leases                   1.57%      1.60%      1.66%      1.49%      1.48%
Allowance for Loan
 and Lease Losses to
 Nonperforming Loans       177%       178%       166%       291%       330%
Past Due Loans to
 Total Loans and
 Leases                   0.75%      0.70%      0.85%      0.84%      0.83%
Potential Problem
 Loans                  73,281     80,622     72,262     70,942     69,844

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.

Martin A. Dietrich
Michael J. Chewens
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815

SOURCE: NBT Bancorp Inc.

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