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NBT Bancorp Inc. Announces Quarterly Earnings of $14.2 Million; Declares Cash Dividend

07/24/06

NORWICH, N.Y.--(BUSINESS WIRE)--July 24, 2006--NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today that net income for the quarter ended June 30, 2006 was $14.2 million, up 8% or $1.1 million from net income of $13.1 million reported for the same period in 2005. Net income per diluted share for the three months ended June 30, 2006 was $0.41 per share, as compared to $0.40 per share for the same period in 2005. Return on average assets and return on average equity were 1.15% and 14.71%, respectively, for the quarter ended June 30, 2006, compared with 1.22% and 16.21%, respectively, for the same period in 2005. The increase in net income for the quarter ended June 30, 2006, was primarily the result of a $2.0 million increase in net interest income and a $1.5 million increase in noninterest income. In addition, the Company experienced a decrease in the provision for loan and lease losses of $0.6 million for the quarter ended June 30, 2006 compared to the same period in 2005. The aforementioned increases in income and reduction of the provision for loan and lease losses were partially offset by a $3.0 million increase in noninterest expense. Results for the three months ended June 30, 2006, include $0.4 million in pre-tax salaries and benefits expense related to stock options resulting from the adoption on January 1, 2006 of Statement of Financial Accounting Standards No. 123 (revised 2004) (FAS 123R), "Share-Based Payment", which requires companies to measure and recognize compensation expense for all share-based payments. The adoption of FAS 123R lowered diluted earnings per share by $0.01 for the three months ended June 30, 2006.

Net income for the six months ended June 30, 2006, was $27.8 million, up 7% or $1.9 million from net income of $25.9 million reported for the same period in 2005. Net income per diluted share for the six month period ended June 30, 2006 was $0.81 per share, as compared to $0.79 per share for the same period in 2005. Return on average assets and return on average equity were 1.17% and 14.93%, respectively, for the six months ended June 30, 2006, compared with 1.23% and 15.99%, respectively, for the same period in 2005. The increase in net income for the six months ended June 30, 2006 was primarily the result of a $3.4 million increase in net interest income and a $2.0 million increase in noninterest income. In addition, the Company experienced a decrease in the provision for loan and lease losses of $0.7 million for the six months ended June 30, 2006 compared to the same period in 2005. The aforementioned increases in income were partially offset by a $4.6 million increase in noninterest expense. Results for the six months ended June 30, 2006, include $1.1 million in pre-tax salaries and benefits expense related to stock options resulting from the adoption of FAS 123R on January 1, 2006. This lowered diluted earnings per share by $0.03 for the six months ended June 30, 2006.

The comparability of financial information is affected by the acquisition of CNB Bancorp, Inc. ("CNB"). Operating results include the operations of CNB from the date of acquisition, which was February 10, 2006.

NBT President and CEO Martin A. Dietrich stated, "These are challenging times for the entire financial services industry. I am pleased by the efforts of all of our people and our ability to continue our earnings growth in this higher interest rate environment is a testament to their efforts. Despite the continuing flat yield curve environment and decline in net interest margin, we are pleased to report another solid quarter for the Company, due in large part to our solid loan and deposit growth, as well as our noninterest income growth."

In late June, portions of NBT's market areas in New York and Pennsylvania were affected by record flooding. Dietrich said, "I am very proud of the efforts of our employees. Many went above and beyond the call of duty in safely helping us restore our banking functions in the areas most heavily hit. These efforts, in conjunction with our disaster recovery plan, allowed us to process our work with minimal interruption to our branch and ATM network. At this time, we do not believe that the flood's financial impact on our business is significant. Most of the damage to our facilities is covered by insurance. We extend our sympathies to those in our communities who suffered losses due to this devastating flood."

Loan and Lease Quality and Provision for Loan and Lease Losses

Nonperforming loans at June 30, 2006 were $12.9 million or 0.38% of total loans and leases compared with $13.5 million or 0.45% of total loans and leases at June 30, 2005 and $14.3 million or 0.47% of total loans and leases at December 31, 2005. Annualized net charge-offs to average loans and leases for the six months ended June 30, 2006, were 0.20%, compared with the 0.18% annualized ratio for the six months ended June 30, 2005, and the ratio for the year ended December 31, 2005 of 0.23%. The Company's allowance for loan and lease losses was 1.50% of loans and leases at June 30, 2006 compared with 1.55% at June 30, 2005, and 1.57% at December 31, 2005. The ratio of the allowance for loan and lease losses to nonperforming loans was 390.04% at June 30, 2006 compared with 344.01% at June 30, 2005, and 331.92% at December 31, 2005.

For the quarter and six months ended June 30, 2006, the provision for loan and lease losses totaled $1.7 million and $3.4 million, respectively, compared with the $2.3 million and $4.1 million for the same periods in 2005. The decrease in the provision for loan and lease losses for the quarter and six months ended June 30, 2006, when compared with the same periods in 2005, was due primarily to improved credit quality.

Net Interest Income

Net interest income was up 5.2% to $41.4 million for the quarter ended June 30, 2006, compared to $39.3 million for the same period a year ago. Despite a decrease in the Company's net interest margin, which was 3.73% for the quarter ended June 30, 2006, down from 4.02% for the same period in 2005, the increase in net interest income was attributable to 14% growth in average earning assets. The growth in average earning assets was due primarily to the acquisition of CNB. Despite a decrease in the Company's net interest margin, which was 3.80% for the six months ended June 30, 2006, down from 4.06% for the same period in 2005, net interest income for the six months ended June 30, 2006 increased 4.3%, to $81.5 million from $78.1 million in the same period for 2005. The increase in net interest income was attributable to a 12% growth in average earning assets due primarily to the acquisition of CNB. The decline in the net interest margin is due largely to the effect from our borrowings, money market accounts and time deposits repricing in the higher interest rate environment. Earning assets, particularly those tied to a fixed rate, have not realized the benefit of the higher interest rate environment, since rates for earning assets with terms three years or longer have remained relatively flat during this period. The Company anticipates that margin pressure will persist into the next several quarters given the flat yield curve.

Noninterest Income

Noninterest income for the quarter ended June 30, 2006 was $12.6 million, up $1.5 million or 13.6% from $11.1 million for the same period in 2005. Fees from service charges on deposit accounts and ATM and debit cards collectively increased $0.4 million from solid growth in demand deposit accounts and debit card base. Retirement plan administration fees for the three months ended June 30, 2006, increased $0.3 million compared with the same period in 2005 as a result of our growing client base. Trust administration income increased $0.2 million or 16.6% for the quarter ended June 30, 2006 compared to the same period in 2005. This increase stems from the increased market value of accounts generating greater fees, an increase in customer accounts as a result of the acquisition of CNB, and successful business development. Broker/dealer and insurance revenue for the three months ended June 30, 2006 increased $0.2 million in large part due to the addition of Hathaway Insurance Agency as part of the acquisition of CNB, as well as the planned expansion of the financial services business. Other noninterest income increased $0.3 million compared with the same period in 2005, primarily due to increases in retail and commercial banking fees.

Noninterest income for the six months ended June 30, 2006 was $23.8 million, up $2.0 million or 9.3% from $21.8 million for the same period in 2005. Included in noninterest income for the six months ended June 30, 2006 were $0.9 million in net losses from investment securities sales. Excluding the effect of these transactions for the six months ended June 30, 2006, noninterest income increased $3.0 million or 13.7% compared with the same period in 2005. For the six months ended June 30, 2006, fees from service charges on deposit accounts and ATM and debit cards collectively increased $1.0 million from solid growth in demand deposit accounts, which has led to an increase in the Company's debit card base. Retirement plan administration fees for the six months ended June 30, 2006, increased $0.6 million compared with the same period in 2005 due to an increase in our client base. Trust administration income increased $0.3 million or 12.5% for the six months ended June 30, 2006 compared to the same period in 2005. This increase stems from the increased market value of accounts generating greater fees, an increase in customer accounts as a result of the acquisition of CNB, and successful business development. Other noninterest income increased $1.2 million for the six months ended June 30, 2006, compared with the same period in 2005, due to increases in retail and commercial banking fees. For the six months ended June 30, 2006, broker/dealer and insurance revenue decreased by $0.2 million as compared with the same period in 2005. While the Company experienced organic growth and acquired Hathaway Insurance Agency during the period in 2006, these increases over 2005 were offset by the sale of M. Griffith, Inc. in the first quarter of 2005.

Noninterest Expense and Income Tax Expense

Noninterest expense for the quarter ended June 30, 2006 was $31.7 million, up from $28.7 million for the same period in 2005. Salaries and employee benefits for the quarter ended June 30, 2006, increased $1.1 million over the same period in 2005, mainly from higher salaries from merit increases, the acquisition of CNB, and stock-based compensation costs associated with the adoption of FAS 123R. Office expenses such as supplies and postage, occupancy, equipment, and data processing and communications charges increased by $0.8 million for the quarter ended June 30, 2006 as compared with the same period in 2005. This 9.7% increase resulted primarily from the overall growth of the Company as well as the acquisition of CNB Bancorp on February 10, 2006. Professional fees and services increased $0.4 million for the quarter ended June 30, 2006 as compared with the same period in 2005. This increase was due to several factors including an increase in courier service expenses due to the acquisition of CNB, as well as increasing transportation costs. In addition, legal fees incurred during the quarter ended June 30, 2006 increased over the same period in 2005 as the Company was reimbursed for legal fees during the second quarter of 2005 associated with prior litigation. Amortization expense increased $0.3 million for the quarter ended June 30, 2006 over the same period in 2005. This increase was due primarily to the acquisition of CNB. Other operating expense for the quarter ended June 30, 2006 increased $0.3 million compared with the same period in 2005, primarily due to $0.2 million in flood related losses. Income tax expense for the quarter ended June 30, 2006 was $6.4 million, up from $6.2 million for the same period in 2005. The effective rate for the quarter ended June 30, 2006 was 31.0%, down from 32.2% for the same period in 2005. The decline in the effective tax rate during the second quarter 2006 versus the same period in 2005 is primarily a result of an increase in interest income from tax exempt sources.

Noninterest expense for the six months ended June 30, 2006 was $62.2 million, up from $57.6 million for the same period in 2005. Salaries and employee benefits for the six months ended June 30, 2006, increased $1.4 million over the same period in 2005, mainly from higher salaries from merit increases, the acquisition of CNB, and stock-based compensation costs associated with the adoption of FAS 123R. Office expenses such as supplies and postage, occupancy, equipment, and data processing and communications charges increased by $1.1 for the six months ended June 30, 2006 as compared with the same period in 2005. This 6.7% increase resulted primarily from the overall growth of the Company as well as the acquisition of CNB Bancorp on February 10, 2006. Professional fees and services increased $0.6 million for the six months ended June 30, 2006 as compared with the same period in 2005. This increase was due to several factors including an increase in courier service expenses due to the acquisition of CNB, as well as increasing transportation costs. In addition, legal fees incurred during the period increased over the same period in 2005 as the Company was reimbursed for legal fees during the second quarter of 2005 associated with prior litigation. Amortization expense increased $0.5 million for the six months ended June 30, 2006 over the same period in 2005. This increase was due primarily to the acquisition of CNB. Other operating expense for the six months ended June 30, 2006 increased $1.1 million compared with the same period in 2005, in large part due to merger expenses incurred as a result of the acquisition of CNB as well as flood related losses. Income tax expense for the six months ended June 30, 2006 was $11.9 million, down from $12.3 million for the same period in 2005. The effective rate for the six months ended June 30, 2006 was 30.0%, down from 32.2% for the same period in 2005. The decrease in tax expense and the effective tax rate for the six months ended June 30, 2006 resulted primarily from a settlement for a tax refund claim of $0.5 million during the first quarter and an increase in interest income from tax exempt sources.

Balance Sheet

Total assets were $5.0 billion at June 30, 2006 up $0.6 billion from $4.4 billion at June 30, 2005. Loans and leases increased $0.3 billion or 12% from $3.0 billion at June 30, 2005 to $3.3 billion at June 30, 2006 due in large part to the acquisition of CNB. In addition, loan growth was fueled by solid production from consumer and commercial loan products. Total deposits were $3.7 billion at June 30, 2006 up 18% from the same period at June 30, 2005, also due in large part to the acquisition of CNB. Stockholders' equity was $377.6 million representing total equity to total assets of 7.56% at June 30, 2006 compared with $330.7 million or a total equity to total asset ratio of 7.55% at June 30, 2005.

CNB Acquisition

On February 10, 2006, the Company completed its previously announced acquisition of CNB. With the completion of the acquisition, City National Bank and Trust Company merged into NBT Bank, N.A., adding nine full-service community banking offices to the NBT Bank division branch network. On an aggregate basis, CNB stockholders received approximately $39 million in cash and 2,059,000 shares of NBT common stock. The aggregate transaction value was approximately $89.0 million.

Stock Repurchase Program

Under previously mentioned stock repurchase plans, the Company purchased 560,100 shares of its common stock during the quarter ended June 30, 2006, for a total of $12.4 million at an average price of $22.22 per share. For the six month period ended June 30, 2006, the Company purchased 738,504 shares of its common stock for a total of $16.5 million at an average price of $22.34 per share. At June 30, 2006, there were 764,647 shares available for repurchase under previously announced plans.

Dividend Declared

The NBT Board of Directors declared a third-quarter cash dividend of $0.19 per share at a meeting held today. The dividend will be paid on September 15, 2006 to shareholders of record as of September 1, 2006.

Corporate Overview

NBT is a financial holding company headquartered in Norwich, NY, with total assets of $5.0 billion at June 30, 2006. 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 121 locations, including 83 NBT Bank offices in upstate New York and 38 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 www.nbtbancorp.com, www.nbtbank.com, www.pennstarbank.com, www.epic1st.com and www.hathawayagency.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; (7) NBT may fail to realize projected cost savings, revenue enhancements and the accretive effect of the CNB acquisition on our earnings; and (8) 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.
                     SELECTED FINANCIAL HIGHLIGHTS
                              (unaudited)

                                                      Net      Percent
                           2006          2005        Change    Change
                           ----          ----        ------    ------
                         (dollars in thousands,
                         except per share data)

Three Months Ended June
 30,
Net Income                 $14,169       $13,128      $1,041      8%
Diluted Earnings Per
 Share                       $0.41         $0.40       $0.01      2%
Weighted Average Diluted
 Common Shares
 Outstanding            34,471,723    32,583,600   1,888,123      6%
Return on Average Assets      1.15%         1.22%      -0.07%    -6%
Return on Average Equity     14.71%        16.21%      -1.50%    -9%
Net Interest Margin           3.73%         4.02%      -0.29%    -7%
----------------------------------------------------------------------

Six Months Ended June
 30,
Net Income                 $27,757       $25,917      $1,840      7%
Diluted Earnings Per
 Share                       $0.81         $0.79       $0.02      3%
Weighted Average Diluted
 Common Shares
 Outstanding            34,111,076    32,779,403   1,331,673      4%
Return on Average Assets      1.17%         1.23%      -0.06%    -5%
Return on Average Equity     14.93%        15.99%      -1.06%    -7%
Net Interest Margin           3.80%         4.06%      -0.26%    -6%
----------------------------------------------------------------------

Asset Quality             June 30,    December 31,    June 30,
                            2006          2005          2005
                            ----          ----          ----
Nonaccrual Loans           $12,277       $13,419       $13,041
90 Days Past Due and
 Still Accruing               $580          $878          $450
Total Nonperforming
 Loans                     $12,857       $14,297       $13,491
Other Real Estate Owned
 (OREO)                       $423          $265          $395
Total Nonperforming
 Assets                    $13,280       $14,562       $13,886
Allowance for Loan and
 Lease Losses              $50,148       $47,455       $46,411
Year-to-Date (YTD) Net
 Charge-Offs                $3,148        $6,941        $2,637
Allowance to Loans and
 Leases                       1.50%         1.57%         1.55%
Total Nonperforming
 Loans to Loans and
 Leases                       0.38%         0.47%         0.45%
Total Nonperforming
 Assets to Assets             0.27%         0.33%         0.32%
Allowance to
 Nonperforming Loans        390.04%       331.92%       344.01%
Net Charge-Offs to YTD
 Average Loans and
 Leases                       0.20%         0.23%         0.18%
----------------------------------------------------------------------

Capital
Equity to Assets              7.56%         7.54%         7.55%
Book Value Per Share        $11.15        $10.34        $10.22
Tangible Book Value Per
 Share                       $7.72         $8.75         $8.62
Tier 1 Leverage Ratio         7.27%         7.16%         6.91%
Tier 1 Capital Ratio          9.90%         9.80%         9.23%
Total Risk-Based
 Capital Ratio               11.15%        11.05%        10.48%
----------------------------------------------------------------------

---------------------------------------------------------------
Quarterly Common Stock
 Price                    2006          2005          2004
Quarter End
                       High  Low     High  Low     High  Low
                       ----  ---     ----  ---     ----  ---
March 31             $23.90 $21.02 $25.66 $21.48 $23.00 $21.21
June 30              $23.24 $21.03  24.15  20.10  23.18  19.92
September 30                        25.50  22.79  24.34  21.02
December 31                         23.79  20.75  26.84  21.94
---------------------------------------------------------------

                           NBT Bancorp Inc.
                     SELECTED FINANCIAL HIGHLIGHTS
                              (unaudited)

                                                        Net    Percent
                                   2006       2005     Change  Change
                                   ----       ----     ------  ------
                                (dollars in thousands,
                                except per share data)
Balance Sheet as of June 30,
Loans                           $3,347,876 $2,995,964 $351,912     12%
Earning Assets                  $4,636,111 $4,087,964 $548,147     13%
Total Assets                    $4,995,912 $4,381,364 $614,548     14%
Deposits                        $3,747,901 $3,178,059 $569,842     18%
Stockholders' Equity              $377,606   $330,749  $46,857     14%
----------------------------------------------------------------------

Average Balances
Quarter Ended June 30,
Loans                           $3,302,136 $2,943,631 $358,505     12%
Securities Available For Sale
(excluding unrealized gains or
 losses)                        $1,132,330   $955,166 $177,164     19%
Securities Held To Maturity       $101,481    $88,401  $13,080     15%
Regulatory Equity Investment       $40,166    $36,617   $3,549     10%
Short-Term Interest Bearing
 Accounts                           $7,346     $6,411     $935     15%
Total Earning Assets            $4,583,459 $4,030,226 $553,233     14%
Total Assets                    $4,937,007 $4,307,004 $630,003     15%
Interest Bearing Deposits       $3,039,915 $2,657,197 $382,718     14%
Non-Interest Bearing Deposits     $614,049   $521,348  $92,701     18%
Short-Term Borrowings             $422,007   $320,151 $101,856     32%
Long-Term Borrowings              $424,176   $430,452  ($6,276)    -1%
Total Interest Bearing
 Liabilities                    $3,886,097 $3,407,800 $478,297     14%
Stockholders' Equity              $386,183   $324,801  $61,382     19%
----------------------------------------------------------------------

Average Balances
Six Months Ended June 30,
Loans                           $3,225,053 $2,910,426 $314,627     11%
Securities Available For Sale
(excluding unrealized gains or
 losses)                        $1,093,566   $954,013 $139,553     15%
Securities Held To Maturity        $99,425    $86,602  $12,823     15%
Regulatory Equity Investment       $40,357    $36,576   $3,781     10%
Short-Term Interest Bearing
 Accounts                           $7,543     $6,569     $974     15%
Total Earning Assets            $4,465,944 $3,994,186 $471,758     12%
Total Assets                    $4,802,333 $4,272,507 $529,826     12%
Interest Bearing Deposits       $2,925,441 $2,630,965 $294,476     11%
Non-Interest Bearing Deposits     $602,632   $513,447  $89,185     17%
Short-Term Borrowings             $423,639   $324,912  $98,727     30%
Long-Term Borrowings              $423,142   $421,890   $1,252      0%
Total Interest Bearing
 Liabilities                    $3,772,222 $3,377,767 $394,455     12%
Stockholders' Equity              $375,658   $327,360  $48,298     15%
----------------------------------------------------------------------

NBT Bancorp Inc. and Subsidiaries     June 30, December 31,  June 30,
Consolidated Balance Sheets
 (unaudited)                            2006       2005        2005
----------------------------------------------------------------------
(in thousands)

ASSETS
Cash and due from banks                $136,005   $134,501   $118,358
Short term interest bearing accounts      9,575      7,987      6,078
Securities available for sale, at
 fair value                           1,100,416    954,474    961,944
Securities held to maturity (fair
 value of $109,562, $93,701 and
 $89,465 at June 30, 2006, December
 31, 2005 and June 30, 2005,
 respectively)                          110,331     93,709     88,771
Federal Reserve and Federal Home Loan
 Bank stock                              40,338     40,259     39,442
Loans and leases                      3,347,876  3,022,657  2,995,964
Less allowance for loan and lease
 losses                                  50,148     47,455     46,411
----------------------------------------------------------------------
  Net loans and leases                3,297,728  2,975,202  2,949,553
Premises and equipment, net              66,948     63,693     64,133
Goodwill                                102,803     47,544     47,544
Intangible assets, net                   13,338      3,808      4,092
Bank owned life insurance                40,926     33,648     32,968
Other assets                             77,504     71,948     68,481
----------------------------------------------------------------------
TOTAL ASSETS                         $4,995,912 $4,426,773 $4,381,364
----------------------------------------------------------------------

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
 Demand (noninterest bearing)          $642,901   $593,422   $569,046
 Savings, NOW, and money market       1,567,171  1,325,166  1,386,720
 Time                                 1,537,829  1,241,608  1,222,293
----------------------------------------------------------------------
  Total deposits                      3,747,901  3,160,196  3,178,059
Short-term borrowings                   320,637    444,977    384,171
Long-term debt                          421,736    414,330    419,377
Trust preferred debentures               75,422     23,875     18,720
Other liabilities                        52,610     49,452     50,288
----------------------------------------------------------------------
  Total liabilities                   4,618,306  4,092,830  4,050,615

Total stockholders' equity              377,606    333,943    330,749
----------------------------------------------------------------------

TOTAL LIABILITIES AND STOCKHOLDERS'
 EQUITY                              $4,995,912 $4,426,773 $4,381,364
----------------------------------------------------------------------

                                 Three months ended  Six months ended
NBT Bancorp Inc. and                  June 30,           June 30,
 Subsidiaries
Consolidated Statements of
 Income (unaudited)                2006     2005      2006     2005
----------------------------------------------------------------------
(in thousands, except per share
 data)
Interest, fee and dividend
 income:
Loans and leases                  $57,085  $46,260  $109,918  $90,204
Securities available for sale      13,084   10,226    24,961   20,473
Securities held to maturity         1,043      831     2,028    1,634
Other                                 619      549     1,230    1,016
--------------------------------------------------- ------------------
  Total interest, fee and
   dividend income                 71,831   57,866   138,137  113,327
--------------------------------------------------- ------------------
Interest expense:
Deposits                           20,869   12,018    38,094   22,738
Short-term borrowings               4,111    2,207     8,048    4,068
Long-term debt                      4,227    4,032     8,369    7,840
Trust preferred debentures          1,255      285     2,138      543
--------------------------------------------------- ------------------
  Total interest expense           30,462   18,542    56,649   35,189
--------------------------------------------------- ------------------
Net interest income                41,369   39,324    81,488   78,138
Provision for loan and lease
 losses                             1,703    2,320     3,431    4,116
--------------------------------------------------- ------------------
Net interest income after
 provision for loan and lease
 losses                            39,666   37,004    78,057   74,022
--------------------------------------------------- ------------------
Noninterest income:
Trust                               1,459    1,251     2,817    2,503
Service charges on deposit
 accounts                           4,493    4,311     8,712    8,240
ATM and debit card fees             1,789    1,544     3,434    2,944
Broker/dealer and insurance
 revenue                              967      736     1,875    2,088
Net securities gains (losses)          22       51      (912)      47
Bank owned life insurance income      392      333       773      666
Retirement plan administration
 fees                               1,431    1,156     2,662    2,019
Other                               2,003    1,673     4,419    3,259
--------------------------------------------------- ------------------
  Total noninterest income         12,556   11,055    23,780   21,766
--------------------------------------------------- ------------------
Noninterest expense:
Salaries and employee benefits     16,335   15,253    32,083   30,705
Office supplies and postage         1,456    1,121     2,637    2,271
Occupancy                           2,747    2,550     5,735    5,338
Equipment                           2,067    1,931     4,223    4,027
Professional fees and outside
 services                           1,800    1,381     3,632    3,056
Data processing and
 communications                     2,649    2,530     5,351    5,188
Amortization of intangible
 assets                               466      142       789      260
Loan collection and other real
 estate owned                         289      208       500      609
Other operating                     3,885    3,580     7,216    6,123
--------------------------------------------------- ------------------
  Total noninterest expense        31,694   28,696    62,166   57,577
--------------------------------------------------- ------------------
Income before income taxes         20,528   19,363    39,671   38,211
Income taxes                        6,359    6,235    11,914   12,294
--------------------------------------------------- ------------------
   Net income                     $14,169  $13,128   $27,757  $25,917
--------------------------------------------------- ------------------
Earnings Per Share:
     Basic                          $0.41    $0.41     $0.82    $0.80
     Diluted                        $0.41    $0.40     $0.81    $0.79
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NBT Bancorp Inc. and             2Q      1Q      4Q      3Q      2Q
 Subsidiaries
Quarterly Consolidated
 Statements of Income
 (unaudited)                   2006    2006    2005    2005    2005
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(in thousands, except per
 share data)
Interest, fee and dividend
 income:
Loans                         $57,085 $52,833 $50,726 $48,784 $46,260
Securities available for sale  13,084  11,877  10,544  10,103  10,226
Securities held to maturity     1,043     985     913     860     831
Other                             619     611     575     535     549
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  Total interest, fee and
   dividend income             71,831  66,306  62,758  60,282  57,866
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Interest expense:
Deposits                       20,869  17,225  14,352  12,842  12,018
Short-term borrowings           4,111   3,937   3,911   3,005   2,207
Long-term debt                  4,227   4,142   4,098   4,176   4,032
Trust preferred debentures      1,255     883     375     308     285
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  Total interest expense       30,462  26,187  22,736  20,331  18,542
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Net interest income            41,369  40,119  40,022  39,951  39,324
Provision for loan and lease
 losses                         1,703   1,728   2,596   2,752   2,320
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Net interest income after
 provision for loan and lease
 losses                        39,666  38,391  37,426  37,199  37,004
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Noninterest income:
Trust                           1,459   1,358   1,234   1,292   1,251
Service charges on deposit
 accounts                       4,493   4,219   4,340   4,314   4,311
ATM and debit card fees         1,789   1,645   1,587   1,631   1,544
Broker/dealer and insurance
 fees                             967     908     527     571     736
Net securities gains (losses)      22    (934)   (546)   (737)     51
Bank owned life insurance
 income                           392     381     342     339     333
Retirement plan administration
 fees                           1,431   1,231   1,212   1,195   1,156
Other                           2,003   2,416   1,736   1,746   1,673
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  Total noninterest income     12,556  11,224  10,432  10,351  11,055
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Noninterest expense:
Salaries and employee benefits 16,335  15,748  13,863  15,438  15,253
Office supplies and postage     1,456   1,181   1,222   1,135   1,121
Occupancy                       2,747   2,988   2,689   2,425   2,550
Equipment                       2,067   2,156   2,120   1,971   1,931
Professional fees and outside
 services                       1,800   1,832   1,584   1,447   1,381
Data processing and
 communications                 2,649   2,702   2,548   2,613   2,530
Amortization of intangible
 assets                           466     323     142     142     142
Loan collection and other real
 estate owned                     289     211     278     115     208
Other operating                 3,885   3,331   4,703   3,293   3,580
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  Total noninterest expense    31,694  30,472  29,149  28,579  28,696
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Income before income taxes     20,528  19,143  18,709  18,971  19,363
Income taxes                    6,359   5,555   5,714   5,445   6,235
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   Net income                 $14,169 $13,588 $12,995 $13,526 $13,128
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Earnings per share:
   Basic                        $0.41   $0.41   $0.40   $0.42   $0.41
   Diluted                      $0.41   $0.40   $0.40   $0.41   $0.40
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CONTACT: NBT Bancorp Inc.
Martin A. Dietrich/Michael J. Chewens, 607-337-6119

SOURCE: NBT Bancorp Inc.

Copyright © 2018 - NBT Bancorp All Right Reserved.