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NBT Bancorp Inc. Announces Quarterly Earnings per Share of $0.46, Up 28% From the Second Quarter; Declares Cash Dividend

10/22/07

NORWICH, NY, Oct 22, 2007 (MARKET WIRE via COMTEX News Network) -- NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today that net income for the three months ended September 30, 2007 was $15.1 million, up $3.1 million or 25.6%, from the three months ended June 30, 2007. Net income per diluted share for the three months ended September 30, 2007, was $0.46 per share, compared with $0.36 per share for the previous quarter. Return on average assets and return on average equity were 1.17% and 15.41%, respectively, for the three months ended September 30, 2007, compared with 0.95% and 11.90%, respectively, for the three months ended June 30, 2007. The increase in net income on a linked quarter basis, was primarily the result of a $5.0 million decrease in the provision for loan and lease losses and a $2.5 million increase in noninterest income. This was partially offset by a $3.2 million increase in noninterest expense from the previous period.

Net income for the three months ended September 30, 2007 was $15.1 million, up 4.2% or $0.6 million from net income of $14.5 million reported for the same period in 2006. Net income per diluted share for the three months ended September 30, 2007, was $0.46 per share, compared with $0.43 per share for the same period in 2006. Return on average assets and return on average equity were 1.17% and 15.41%, respectively, for the three months ended September 30, 2007, compared with 1.15% and 14.89%, respectively, for the same period in 2006. The increase in net income for the three months ended September 30, 2007 compared to the same period last year, was primarily the result of a $4.0 million increase in noninterest income. This increase in noninterest income was partially offset by a $2.3 million increase in provision for loan and lease losses and a $1.3 million increase in noninterest expense.

Net income for the nine months ended September 30, 2007 was $41.3 million, down 2.3% or $1.0 million from net income of $42.3 million reported for the same period in 2006. Net income per diluted share for the nine month period ended September 30, 2007 was $1.22 per share, compared with $1.24 per share for the same period in 2006. Return on average assets and return on average equity were 1.08% and 13.77%, respectively, for the nine months ended September 30, 2007, compared with 1.16% and 14.93%, respectively, for the same period in 2006. The decrease in net income for the nine months ended September 30, 2007 was primarily the result of a $10.7 million increase in provision for loan and lease losses compared to the same period last year. This increase in expense was partially offset by a $6.9 million increase in noninterest income and a $2.0 million decrease in noninterest expense.

The comparability of financial information for the nine months ended September 30, 2007 and 2006, 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.

Loan and Lease Quality and Provision for Loan and Lease Losses

Nonperforming loans at September 30, 2007 were $30.7 million or 0.90% of total loans and leases compared with $34.4 million or 1.00% at June 30, 2007, $15.3 million or 0.45% of total loans and leases at December 31, 2006, and $14.5 million or 0.43% of total loans and leases at September 30, 2006. The increase during the second quarter of 2007 was primarily due to the addition of one owner-occupied commercial real estate relationship and several dairy credits during the quarter. The decrease in nonperforming loans during the third quarter was due primarily to commercial loan charge-offs and payoffs during the period as well as loan sales. Annualized net charge-offs to average loans and leases for the nine months ended September 30, 2007, were 0.49%, compared with 0.21% for the nine months ended September 30, 2006 and 0.26% for the year ended December 31, 2006. The Company's allowance for loan and lease losses was 1.60% of loans and leases at September 30, 2007, compared with 1.50% at September 30, 2006, and 1.48% at December 31, 2006.

For the three months and nine months ended September 30, 2007, the provision for loan and lease losses totaled $4.8 million and $16.7 million, respectively, compared with $2.5 million and $5.9 million for the same periods in 2006. The increase in the provision is primarily due to the increase in nonperforming loans and charge-offs.

Net Interest Income

Net interest income was up 0.1% to $41.2 million for the three months ended September 30, 2007, compared with $40.9 million for the same period a year ago. Despite a decrease in the Company's FTE net interest margin, from 3.60% for the three months ended September 30, 2006, to 3.56% for the same period in 2007, the Company experienced a slight increase in net interest income that was primarily attributable to a 2.0% growth in average earning assets. The growth in average earning assets was due primarily to consumer loan growth.

Net interest income was up 0.1% to $123.2 million for the nine months ended September 30, 2007, compared with $122.4 million for the same period a year ago. Despite a decrease in the Company's fully taxable equivalent (FTE) net interest margin, from 3.73% for the nine months ended September 30, 2006, to 3.61% for the same period in 2007, the Company experienced a slight increase in net interest income that was primarily attributable to a 4.5% growth in average earning assets. The growth in average earning assets was due primarily to consumer loan growth.

The decline in the net interest margin from the prior year is due largely to the effect from our borrowings, money market accounts and time deposits repricing in a 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 yields on earning assets with terms of three years or longer have remained relatively flat during this period. Given the 50 basis point cut in the Federal Funds Target Rate by the Federal Reserve in September 2007, the Company expects that its margin and net interest income to remain relatively flat for the next several quarters.

Noninterest Income

Noninterest income for the three months ended September 30, 2007, was $16.5 million, up $4.0 million or 32.0% from $12.5 million for the same period in 2006. The increase in noninterest income was due primarily to an increase in fees from service charges on deposit accounts and ATM and debit cards, which collectively increased $2.0 million resulting from the focus on enhancing fee income through various initiatives. In addition, trust administration income increased $0.3 million for the three months ended September 30, 2007, compared with the same period in 2006. This increase stems from market appreciation of existing accounts and an increase in customer accounts resulting from successful business development. Net securities gains for the three months ended September 30, 2007, were $1.5 million compared with nominal net securities gains for the same period in 2006. Excluding the effect of these securities transactions, noninterest income increased $2.5 million, or 20.2%, for the three months ended September 30, 2007, compared with the same period in 2006.

Noninterest income for the nine months ended September 30, 2007, was $43.2 million, up $6.9 million or 19.0% from $36.3 million for the same period in 2006. The increase in noninterest income was due primarily to an increase in fees from service charges on deposit accounts and ATM and debit cards, which collectively increased $3.2 million as the company focused on enhancing fee income through various initiatives. In addition, trust administration income increased $0.7 million for the nine months ended September 30, 2007, compared with the same period in 2006. This increase stems from market appreciation of existing accounts and an increase in customer accounts resulting from successful business development. Retirement plan administration fees for the nine months ended September 30, 2007, increased $0.7 million, compared with the same period in 2006, as a result of our growing client base. Net securities gains for the nine months ended September 30, 2007, were $1.5 million compared with net securities losses of $0.9 million for the same period in 2006. Excluding the effect of these securities transactions, noninterest income increased $4.5 million, or 12.1%, for the nine months ended September 30, 2007, compared with the same period in 2006.

Noninterest Expense and Income Tax Expense

Noninterest expense for the three months ended September 30, 2007, was $31.2 million, up from $29.9 million for the same period in 2006. This 4.4% increase was principally the result of an increase in professional fees and outside services of $0.6 million, or 38.7%, from 2006 due primarily to fees and costs related to the aforementioned noninterest income initiatives. In addition, other operating expense for the three months ended September 30, 2007 was $3.4 million, up from $3.0 million for the same period in 2006. This increase reflects the netting effect in 2006 of flood-related insurance recoveries. Income tax expense for the three months ended September 30, 2007, was $6.6 million, up from $6.5 million for the same period in 2006. The effective rate for the three months ended September 30, 2007, was 30.2%, down from 30.9% for the same period in 2006. This decrease in the effective tax rate was due to an increase in tax exempt income.

Noninterest expense for the nine months ended September 30, 2007, was $90.1 million, down from $92.1 million for the same period in 2006. This decrease was principally the result of a decrease of $2.8 million, or 6.0%, in salaries and employee benefits. This decrease was due primarily to a reduction in incentive compensation and pension expenses incurred in 2007.

Income tax expense for the nine months ended September 30, 2007, was $18.3 million, down from $18.4 million for the same period in 2006. The effective rate for the nine months ended September 30, 2007, was 30.7%, up from 30.3% for the same period in 2006. The increase in the effective tax rate for the nine months ended September 30, 2007, compared with the same period in 2006 resulted primarily from a tax refund received in the first quarter of 2006.

NBT President and CEO Martin A. Dietrich said, "I am very pleased with our strong earnings during the third quarter. Several factors contributed to our financial performance during the period including steady growth of our noninterest income. Our focus on minimizing our reliance on our net interest margin has resulted in continuous growth in fee income, trust income, and other noninterest income. In addition, while our net interest margin has declined slightly, we have been able to maintain stable interest income in large part due to the growth in our earning assets. I am proud of the efforts put forth by our dedicated employees and their commitment in what has been a demanding year, and we will strive to finish the year on a strong note."

Balance Sheet

Total assets were $5.2 billion at September 30, 2007, up $91.9 million from $5.1 billion at September 30, 2006, and up $63.5 million from December 31, 2006. Loans and leases were $3.4 billion at September 30, 2007, up $52.5 million or 1.6% from $3.4 billion at September 30, 2006, and up $9.6 million or 0.3% from $3.4 billion at December 31, 2006. These increases were due primarily to an increase in consumer loans. Total deposits were $4.0 billion at September 30, 2007, up $162.2 million or 4.3% from $3.8 billion at September 30, 2006, and up $153.8 million or 4.1% from $3.8 billion at December 31, 2006. These increases were due primarily to growth in time deposits, money market accounts and demand deposit accounts. Stockholders' equity was $385.6 million, representing total equity to total assets of 7.49% at September 30, 2007, compared with $399.5 million or total equity to total asset ratio of 7.90% at September 30, 2006, and $403.8 million or total equity to total asset ratio of 7.94% at December 31, 2006. The decrease in stockholders' equity was due in large part to the stock repurchase plans as mentioned below.

Stock Repurchase Program

Under previously disclosed stock repurchase plans, the Company purchased 2,261,267 shares of its common stock during the nine-month period ended September 30, 2007, for a total of $49.0 million at an average price of $21.65 per share. For the three months ended September 30, 2007, the Company purchased 1,160,900 shares of its common stock for a total of $23.9 million at an average price of $20.60 per share. At September 30, 2007, there were 475,880 shares available for repurchase under previously announced plans.

Dividend Declared

The NBT Board of Directors declared a fourth-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on December 15, 2007, to shareholders of record as of December 1, 2007.

Corporate Overview

NBT is a financial holding company headquartered in Norwich, NY, with total assets of $5.2 billion at September 30, 2007. 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 119 locations, including 81 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; 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
                          2007           2006           Change     Change
                      -------------  -------------  -------------  -------
                         (dollars in thousands,
                         except per share data)
Nine Months Ended
 September 30,
Net Income            $      41,343  $      42,299          ($956)      -2%
Diluted Earnings Per
 Share                $        1.22  $        1.24         ($0.02)      -2%
Weighted Average
 Diluted Common
 Shares Outstanding      33,765,835     34,140,004       -374,169       -1%
Return on Average
 Assets (1)                    1.08%          1.16%         -0.08%      -7%
Return on Average
 Equity (1)                   13.77%         14.93%         -1.16%      -8%
Net Interest Margin
 (2)                           3.61%          3.73%         -0.12%      -3%
                      =============  =============  =============  =======
Three Months Ended
 September 30,
Net Income            $      15,147  $      14,542  $         605        4%
Diluted Earnings Per
 Share                $        0.46  $        0.43  $        0.03        7%
Weighted Average
 Diluted Common
 Shares Outstanding      32,921,286     34,196,917     -1,275,631       -4%
Return on Average
 Assets (1)                    1.17%          1.15%          0.02%       2%
Return on Average
 Equity (1)                   15.41%         14.89%          0.52%       3%
Net Interest Margin
 (2)                           3.56%          3.60%         -0.04%      -1%
                      =============  =============  =============  =======
Asset Quality         September 30,   December 31,  September 30,
                          2007           2006           2006
                      -------------  -------------  -------------
Nonaccrual Loans      $      29,087  $      13,665  $      12,403
90 Days Past Due and
 Still Accruing       $       1,620  $       1,642  $       2,047
Total Nonperforming
 Loans                $      30,707  $      15,307  $      14,450
Other Real Estate
 Owned (OREO)         $         917  $         389  $         395
Total Nonperforming
 Assets               $      31,624  $      15,696  $      14,845
Allowance for Loan
 and Lease Losses     $      54,808  $      50,587  $      50,646
Year-to-Date (YTD)
 Net Charge-Offs      $      12,433  $       8,673  $       5,130
Allowance for Loan
 and Lease Losses to
 Total Loans and
 Leases                        1.60%          1.48%          1.50%
Total Nonperforming
 Loans to Total Loans
 and Leases                    0.90%          0.45%          0.43%
Total Nonperforming
 Assets to Total
 Assets                        0.61%          0.31%          0.29%
Allowance for Loan
 and Lease Losses to
 Total Nonperforming
 Loans                       178.49%        330.48%        350.49%
Annualized Net
 Charge-Offs to YTD
 Average Loans and
 Leases                        0.49%          0.26%          0.21%
                      =============  =============  =============
Capital
Equity to Assets               7.49%          7.94%          7.90%
Book Value Per Share  $       11.97  $       11.79  $       11.73
Tangible Book Value
 Per Share            $        8.43  $        8.42  $        8.33
Tier 1 Leverage Ratio          7.06%          7.57%          7.38%
Tier 1 Capital Ratio           9.77%         10.42%         10.15%
Total Risk-Based
 Capital Ratio                11.02%         11.67%         11.40%
                      =============  =============  =============
Quarterly Common
 Stock Price              2007           2006           2005
Quarter End            High    Low    High    Low    High    Low
                      ------ ------  ------ ------  ------ ------
March 31              $25.81 $21.73  $23.90 $21.02  $25.66 $21.48
June 30               $23.45 $21.80   23.24  21.03   24.15  20.10
September 30          $23.80 $17.10   24.57  21.44   25.50  22.79
December 31                           26.47  22.36   23.79  20.75
                      -------------  -------------  -------------
(1)  Annualized
(2)  Calculated on a FTE basis
                    NBT Bancorp Inc. and Subsidiaries
                      SELECTED FINANCIAL HIGHLIGHTS
                                (unaudited)
                                                          Net      Percent
                                  2007        2006       Change    Change
                               ----------- ----------- ----------  -------
                               (dollars in thousands,
                               except per share data)
Balance Sheet as of September
 30,
Loans and Leases               $ 3,422,217 $ 3,369,732 $   52,485        2%
Earning Assets                 $ 4,757,886 $ 4,673,441 $   84,445        2%
Total Assets                   $ 5,151,072 $ 5,059,171 $   91,901        2%
Deposits                       $ 3,950,065 $ 3,787,863 $  162,202        4%
Stockholders' Equity           $   385,646 $   399,549 ($  13,903)      -3%
                               =========== =========== ==========  =======
Average Balances
Nine Months Ended September
 30,
Loans and Leases               $ 3,419,983 $ 3,271,095 $  148,888        5%
Securities Available For Sale
(excluding unrealized gains or
 losses)                       $ 1,131,533 $ 1,107,417 $   24,116        2%
Securities Held To Maturity    $   144,693 $   108,601 $   36,092       33%
Regulatory Equity Investment   $    33,668 $    40,260 ($   6,592)     -16%
Short-Term Interest Bearing
 Accounts                      $     8,523 $     8,327 $      196        2%
Total Earning Assets           $ 4,738,400 $ 4,535,700 $  202,700        4%
Total Assets                   $ 5,096,608 $ 4,878,785 $  217,823        4%
Interest Bearing Deposits      $ 3,273,359 $ 3,002,756 $  270,603        9%
Non-Interest Bearing Deposits  $   633,572 $   610,265 $   23,307        4%
Short-Term Borrowings          $   279,443 $   343,557 ($  64,114)     -19%
Long-Term Borrowings           $   453,457 $   489,710 ($  36,253)      -7%
Total Interest Bearing
 Liabilities                   $ 4,006,259 $ 3,836,023 $  170,236        4%
Stockholders' Equity           $   401,310 $   379,740 $   21,570        6%
                               =========== =========== ==========  =======
Average Balances
Quarter Ended September 30,
Loans and Leases               $ 3,437,798 $ 3,361,676 $   76,122        2%
Securities Available For Sale
(excluding unrealized gains or
 losses)                       $ 1,142,009 $ 1,134,668 $    7,341        1%
Securities Held To Maturity    $   144,713 $   126,654 $   18,059       14%
Regulatory Equity Investment   $    33,637 $    40,070 ($   6,433)     -16%
Short-Term Interest Bearing
 Accounts                      $     7,714 $     9,869 ($   2,155)     -22%
Total Earning Assets           $ 4,765,871 $ 4,672,937 $   92,934        2%
Total Assets                   $ 5,122,096 $ 5,029,197 $   92,899        2%
Interest Bearing Deposits      $ 3,267,440 $ 3,154,865 $  112,575        4%
Non-Interest Bearing Deposits  $   656,176 $   625,282 $   30,894        5%
Short-Term Borrowings          $   322,245 $   313,099 $    9,146        3%
Long-Term Borrowings           $   429,459 $   493,580 ($  64,121)     -13%
Total Interest Bearing
 Liabilities                   $ 4,019,144 $ 3,961,544 $   57,600        1%
Stockholders' Equity           $   389,863 $   387,771 $    2,092        1%
                               =========== =========== ==========  =======
                                        September    December   September
NBT Bancorp Inc. and Subsidiaries           30,         31,         30,
Consolidated Balance Sheets (unaudited)    2007        2006        2006
                                        ----------- ----------- -----------
(in thousands)
ASSETS
Cash and due from banks                 $   139,453 $   130,936 $   143,678
Short term interest bearing accounts          9,028       7,857       7,999
Securities available for sale, at fair
 value                                    1,146,524   1,106,322   1,111,473
Securities held to maturity (fair value     143,447     136,314     134,608
 of $143,483, $136,287 and
 $134,775 at September 30, 2007,
 December 31, 2006 and
 September 30, 2006, respectively)
Federal Reserve and Federal Home Loan
 Bank stock                                  33,218      38,812      39,488
Loans and leases                          3,422,217   3,412,654   3,369,732
Less allowance for loan and lease
 losses                                      54,808      50,587      50,646
                                        =========== =========== ===========
  Net loans and leases                    3,367,409   3,362,067   3,319,086
Premises and equipment, net                  64,406      66,982      66,988
Goodwill                                    103,400     103,356     102,858
Intangible assets, net                       10,585      11,984      12,873
Bank owned life insurance                    43,134      41,783      41,344
Other assets                                 90,468      81,159      78,776
                                        ----------- ----------- -----------
TOTAL ASSETS                            $ 5,151,072 $ 5,087,572 $ 5,059,171
                                        =========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
  Demand (noninterest bearing)          $   671,729 $   646,377 $   634,308
  Savings, NOW, and money market          1,595,622   1,566,557   1,577,510
  Time                                    1,682,714   1,583,304   1,576,045
                                        ----------- ----------- -----------
    Total deposits                        3,950,065   3,796,238   3,787,863
Short-term borrowings                       305,865     345,408     324,461
Long-term debt                              377,119     417,728     417,753
Trust preferred debentures                   75,422      75,422      75,422
Other liabilities                            56,955      48,959      54,123
                                        ----------- ----------- -----------
    Total liabilities                     4,765,426   4,683,755   4,659,622
Total stockholders' equity                  385,646     403,817     399,549
                                        =========== =========== ===========
TOTAL LIABILITIES AND STOCKHOLDERS'
 EQUITY                                 $ 5,151,072 $ 5,087,572 $ 5,059,171
                                        =========== =========== ===========
NBT Bancorp Inc. and
 Subsidiaries                    Three months ended    Nine months ended
Consolidated Statements of          September 30,         September 30,
 Income (unaudited)                2007       2006       2007      2006
                                ---------- ---------- ---------- ---------
(in thousands, except per share
 data)
Interest, fee and dividend
 income:
Loans and leases                $   61,183 $   59,329 $  181,680 $ 169,247
Securities available for sale       13,847     13,342     40,876    38,303
Securities held to maturity          1,471      1,293      4,440     3,321
Other                                  680        724      2,139     1,954
                                ---------- ---------- ---------- ---------
  Total interest, fee and
   dividend income                  77,181     74,688    229,135   212,825
                                ---------- ---------- ---------- ---------
Interest expense:
Deposits                            27,062     24,052     79,996    62,146
Short-term borrowings                3,885      3,828      9,895    11,876
Long-term debt                       3,770      4,603     12,253    12,972
Trust preferred debentures           1,277      1,285      3,817     3,423
                                ---------- ---------- ---------- ---------
  Total interest expense            35,994     33,768    105,961    90,417
                                ---------- ---------- ---------- ---------
Net interest income                 41,187     40,920    123,174   122,408
Provision for loan and lease
 losses                              4,788      2,480     16,654     5,911
                                ---------- ---------- ---------- ---------
Net interest income after
 provision for loan and lease
 losses                             36,399     38,440    106,520   116,497
                                ---------- ---------- ---------- ---------
Noninterest income:
Trust                                1,701      1,425      4,930     4,242
Service charges on deposit
 accounts                            6,195      4,460     15,600    13,172
ATM and debit card fees              2,159      1,888      6,096     5,322
Broker/dealer and insurance
 revenue                             1,027      1,024      3,203     2,899
Net securities gains (losses)        1,484          7      1,500      (905)
Bank owned life insurance
 income                                467        431      1,351     1,204
Retirement plan administration
 fees                                1,586      1,450      4,779     4,112
Other                                1,908      1,832      5,750     6,251
                                ---------- ---------- ---------- ---------
  Total noninterest income          16,527     12,517     43,209    36,297
                                ---------- ---------- ---------- ---------
Noninterest expense:
Salaries and employee benefits      15,876     15,628     44,862    47,711
Office supplies and postage          1,354      1,275      3,984     3,912
Occupancy                            2,928      3,044      8,682     8,779
Equipment                            1,797      2,040      5,567     6,263
Professional fees and outside
 services                            2,256      1,627      5,840     5,259
Data processing and
 communications                      2,779      2,637      8,501     7,988
Amortization of intangible
 assets                                413        471      1,232     1,260
Loan collection and other real
 estate owned                          431        222      1,036       722
Other operating                      3,393      2,974     10,409    10,190
                                ---------- ---------- ---------- ---------
  Total noninterest expense         31,227     29,918     90,113    92,084
                                ---------- ---------- ---------- ---------
Income before income taxes          21,699     21,039     59,616    60,710
Income taxes                         6,552      6,497     18,273    18,411
                                ---------- ---------- ---------- ---------
   Net income                   $   15,147 $   14,542 $   41,343 $  42,299
                                ---------- ---------- ---------- ---------
Earnings Per Share:
     Basic                      $     0.46 $     0.43 $     1.23 $    1.25
     Diluted                    $     0.46 $     0.43 $     1.22 $    1.24
                                ========== ========== ========== =========
NBT Bancorp Inc. and
 Subsidiaries
Quarterly Consolidated
 Statements of Income        3Q        2Q        1Q        4Q        3Q
 (unaudited)                2007      2007      2007      2006      2006
                          --------- --------- --------  --------- ---------
(in thousands, except per
 share data)
Interest, fee and
 dividend income:
Loans and leases          $  61,183 $  60,689 $ 59,808  $  60,795 $  59,329
Securities available for
 sale                        13,847    13,562   13,467     13,296    13,342
Securities held to
 maturity                     1,471     1,525    1,444      1,409     1,293
Other                           680       719      740        517       724
                          --------- --------- --------  --------- ---------
  Total interest, fee and
   dividend income           77,181    76,495   75,459     76,017    74,688
                          --------- --------- --------  --------- ---------
Interest expense:
Deposits                     27,062    26,950   25,984     25,652    24,052
Short-term borrowings         3,885     2,918    3,092      3,572     3,828
Long-term debt                3,770     3,997    4,486      4,091     4,603
Trust preferred
 debentures                   1,277     1,272    1,268      1,277     1,285
                          --------- --------- --------  --------- ---------
  Total interest expense     35,994    35,137   34,830     34,592    33,768
                          --------- --------- --------  --------- ---------
Net interest income          41,187    41,358   40,629     41,425    40,920
Provision for loan and
 lease losses                 4,788     9,770    2,096      3,484     2,480
                          --------- --------- --------  --------- ---------
Net interest income after
 provision for loan and
 lease losses                36,399    31,588   38,533     37,941    38,440
                          --------- --------- --------  --------- ---------
Noninterest income:
Trust                         1,701     1,792    1,437      1,387     1,425
Service charges on
 deposit accounts             6,195     4,936    4,469      4,418     4,460
ATM and debit card fees       2,159     2,041    1,896      1,764     1,888
Broker/dealer and
 insurance fees               1,027     1,093    1,083      1,037     1,024
Net securities gains
 (losses)                     1,484        21       (5)        30         7
Bank owned life insurance
 income                         467       450      434        425       431
Retirement plan
 administration fees          1,586     1,601    1,592      1,424     1,450
Other                         1,908     2,058    1,784      1,847     1,832
                          --------- --------- --------  --------- ---------
  Total noninterest
   income                    16,527    13,992   12,690     12,332    12,517
                          --------- --------- --------  --------- ---------
Noninterest expense:
Salaries and employee
 benefits                    15,876    13,022   15,964     15,166    15,628
Office supplies and
 postage                      1,354     1,334    1,296      1,418     1,275
Occupancy                     2,928     2,585    3,169      2,739     3,044
Equipment                     1,797     1,837    1,933      2,069     2,040
Professional fees and
 outside services             2,256     1,926    1,658      2,502     1,627
Data processing and
 communications               2,779     2,845    2,877      2,466     2,637
Amortization of
 intangible assets              413       410      409        389       471
Loan collection and other
 real estate owned              431       228      377        629       222
Other operating               3,393     3,827    3,189      3,504     2,974
                          --------- --------- --------  --------- ---------
  Total noninterest
   expense                   31,227    28,014   30,872     30,882    29,918
                          --------- --------- --------  --------- ---------
Income before income
 taxes                       21,699    17,566   20,351     19,391    21,039
Income taxes                  6,552     5,502    6,219      5,743     6,497
                          --------- --------- --------  --------- ---------
   Net income             $  15,147 $  12,064 $ 14,132  $  13,648 $  14,542
                          ========= ========= ========  ========= =========
Earnings per share:
   Basic                  $    0.46 $    0.36 $   0.41  $    0.40 $    0.43
   Diluted                $    0.46 $    0.36 $   0.41  $    0.40 $    0.43
                          ========= ========= ========  ========= =========

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

SOURCE: NBT Bancorp Inc.

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