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NBT Bancorp Inc. Announces Year-to-Date Net Income of $29.0 Million; Declares Cash Dividend

07/25/11

NORWICH, N.Y., Jul 25, 2011 (GlobeNewswire via COMTEX) --

NBT Bancorp Inc. (NBT) (Nasdaq:NBTB) reported today net income for the six months ended June 30, 2011 was $29.0 million, up $0.6 million, or 2.0%, from the six months ended June 30, 2010. Net income per diluted share for the six months ended June 30, 2011 was $0.84 per share, up from $0.82 per diluted share for the six months ended June 30, 2010. Annualized return on average assets and return on average equity were 1.08% and 10.82%, respectively, for the six months ended June 30, 2011, compared with 1.04% and 11.07%, respectively, for the six months ended June 30, 2010. Net interest margin (on a fully taxable equivalent basis ("FTE")) was 4.12% for the six months ended June 30, 2011, down 5 basis points ("bps") from 4.17% for the six months ended June 30, 2010.

Net income for the three months ended June 30, 2011 was $14.7 million, up $0.2 million, or 1.6%, from the three months ended June 30, 2010. Net income per diluted share for the three months ended June 30, 2011 was $0.43 per share, up from $0.42 per diluted share for the three months ended June 30, 2010. Annualized return on average assets and return on average equity were 1.09% and 10.86%, respectively, for the three months ended June 30, 2011, compared with 1.06% and 11.09%, respectively, for the three months ended June 30, 2010. Net interest margin (FTE) was 4.13% for the three months ended June 30, 2011, down slightly from 4.14% for the three months ended June 30, 2010.

Key items for the first six months of 2011 include:

  --  Diluted earnings per share of $0.84 for the first six months of 2011 was
      the second highest in the Company's history; second to $0.88 for the
      same period in 2008.
  --  Net interest margin was 4.12% for the first six months of 2011, down
      from 4.17% for the same period of 2010, a result of the continued low
      rate environment on loan and investment yields.
  --  Net charge-offs were 0.60% of average loans and leases for the first six
      months of 2011, down 6 bps from the first six months of 2010; provision
      for loan and lease losses was down $5.6 million for the same period.
  --  Continued strategic expansion with the announcement of the acquisition
      of four branches in Berkshire County, Massachusetts, pending regulatory
      approval.


"Our near record earnings for the first six months of 2011 are further evidence of our company's strong performance. Our financial results for 2008 through 2010 represented the most profitable three year term in our company's history, during a period of time when the banking industry had record losses. We continue to make investments to further strengthen our already strong foundation to better position us for future success. Our recent announcement to expand into western Massachusetts with the acquisition of four Legacy Banks branches is another exciting investment we are making in our future. Our strong balance sheet and earnings momentum, along with a passionate and professional team of employees, continues to position us well to take advantage of new growth opportunities," said NBT President and CEO Martin Dietrich.

Loan and Lease Quality and Provision for Loan and Lease Losses

The provision for loan and lease losses was $10.0 million for the first six months of 2011, down $5.6 million from the $15.6 million recorded in the first six months of 2010. Net charge-offs were $10.7 million for the first six months of 2011 representing 0.60% of average loans and leases for the period versus $11.8 million, or 0.66% of average loans and leases for the first six months of 2010.

The provision for loan and lease losses was $6.0 million for the second quarter of 2011, down from $6.4 million recorded in the second quarter of 2010. Net charge-offs were $5.5 million for the second quarter of 2011 representing 0.60% of average loans and leases for the quarter versus $6.2 million, or 0.68% of average loans and leases for the second quarter of 2010. The general improvement in asset quality indicators contributed to the decrease in the provision for loan and lease losses.

Nonperforming loans were $41.7 million at June 30, 2011, down from $48.7 million at March 31, 2011 and $44.8 million at December 31, 2010. This decrease in nonperforming loans was due primarily to the payoff of a large commercial credit as well as various commercial charge-offs. Past due loans were up slightly to 0.69% of total loans at June 30, 2011 from 0.66% at March 31, 2011, but down considerably from 0.86% at December 31, 2010. The allowance for loan and lease losses was $70.5 million at June 30, 2011, relatively flat compared to $69.9 million at March 31, 2011 and $71.2 million at December 31, 2010. The allowance for loan and lease losses represented 1.92% of loans and leases at June 30, 2011, compared to 1.93% at March 31, 2011 and 1.97% at December 31, 2010.

Net Interest Income

Net interest income was down 2.0% to $99.4 million for the six months ended June 30, 2011, compared with $101.4 million for the six months ended June 30, 2010. The Company's FTE net interest margin was 4.12% for the six months ended June 30, 2011, down from 4.17% for the six months ended June 30, 2010.

While the yield on interest bearing liabilities decreased 31 bps, the yield on interest earning assets declined 35 bps, resulting in margin compression for the six months ended June 30, 2011, compared to the same period for 2010. The yield on securities available for sale was 3.12% for the six months ended June 30, 2011, as compared with 3.86% for the six months ended June 30, 2010. The yield on loans and leases was 5.69% for the six months ended June 30, 2011, as compared with 5.96% for the six months ended June 30, 2010. The yield on time deposits was 1.87% for the six months ended June 30, 2011, as compared with 2.16% for the six months ended June 30, 2010. The yield on money market deposit accounts was 0.39% for the six months ended June 30, 2011, as compared with 0.66% for the six months ended June 30, 2010.

Net interest income was down 0.9% to $50.2 million for the three months ended June 30, 2011, compared with $50.6 million for the three months ended June 30, 2010. The Company's FTE net interest margin was 4.13% for the three months ended June 30, 2011, down slightly from 4.14% for the three months ended June 30, 2010.

The yield on interest bearing liabilities and interest earning assets each decreased 32 bps, which resulted in a fairly stable margin for the three months ended June 30, 2011 as compared with the three months ended June 30, 2010. The yield on securities available for sale was 3.11% for the three months ended June 30, 2011, as compared with 3.70% for the three months ended June 30, 2010. The yield on loans and leases was 5.65% for the three months ended June 30, 2011, as compared with 5.92% for the three months ended June 30, 2010. The yield on time deposits was 1.85% for the three months ended June 30, 2011, as compared with 2.12% for the three months ended June 30, 2010. The yield on money market deposit accounts was 0.37% for the three months ended June 30, 2011, as compared with 0.62% for the three months ended June 30, 2010.

Noninterest Income

Noninterest income for the six months ended June 30, 2011 was $40.0 million, down slightly from $40.7 million for the same period in 2010. Insurance and other financial services revenue increased approximately $0.9 million for the six months ended June 30, 2011, as compared to the six months ended June 30, 2010, due primarily to new business generated from markets where we have recently expanded and improved market conditions. Trust revenue increased approximately $0.6 million for the six months ended June 30, 2011, as compared to the six months ended June 30, 2010, due primarily to the addition of new business generated from markets where we have recently expanded, and an increase in the fair market value of trust assets under administration. ATM and debit card fees also increased approximately $0.8 million for the six months ended June 30, 2011, as compared to the six months ended June 30, 2010 due to an increase in activity. These increases were offset by a decrease in service charges on deposit accounts of approximately $1.9 million, or 15.3%, for the six months ended June 30, 2011, as compared with the same period in 2010. The decrease in service charges was the result of a decrease in overdraft activity due to the effects of implementing new regulations regarding overdraft fees in the third quarter of 2010. In addition, retirement plan administration fees decreased by $0.5 million, or 11.0%, for the six months ended June 30, 2011 as compared to the same period in 2010. We experienced increases in new business and market-based fees, yet these were offset by the loss of one client.

Noninterest income for the three months ended June 30, 2011 was $19.9 million, down slightly from $20.3 million for the same period in 2010. Insurance and other financial services revenue increased approximately $0.3 million for the three months ended June 30, 2011, as compared to the three months ended June 30, 2010, due primarily to new business generated from markets where we have recently expanded and improved market conditions. Trust revenue increased approximately $0.3 million for the three months ended June 30, 2011, as compared to the three months ended June 30, 2010, due primarily to the addition of new business generated from markets where we have recently expanded, and an increase in the fair market value of trust assets under administration. ATM and debit card fees also increased approximately $0.5 million for the three months ended June 30, 2011, as compared to the three months ended June 30, 2010. These increases were offset by a decrease in service charges on deposit accounts of approximately $0.8 million, or 13.4%, for the three months ended June 30, 2011, as compared with the same period in 2010. The decrease in service charges was the result of a decrease in overdraft activity due to the effects of implementing new regulations regarding overdraft fees in the third quarter of 2010. In addition, retirement plan administration fees decreased by $0.3 million, or 12.6%, for the three months ended June 30, 2011 as compared to the same period in 2010. We experienced increases in new business and market-based fees, yet these were offset by the loss of one client.

Noninterest Expense and Income Tax Expense

Noninterest expense for the six months ended June 30, 2011 was $88.2 million, up from $86.4 million, or 2.2%, for the same period in 2010. Salaries and employee benefits increased $2.6 million, or 5.6%, for the six months ended June 30, 2011, compared with the same period in 2010. This increase was due primarily to increases in full-time-equivalent employees, merit increases and other employee benefits. In addition, occupancy expenses increased approximately $0.7 million for the six months ended June 30, 2011, as compared to the same period in 2010, primarily due to continued branch expansion and expenses related to the harsh winter. Other operating expenses consisting of various items increased approximately $0.4 million for the six months ended June 30, 2011, as compared to the same period in 2010 with no significant driver. These increases were partially offset by a decrease in data processing and communications expenses of approximately $0.5 million for the six months ended June 30, 2011, as compared to the six months ended June 30, 2010. This decrease was due to the renegotiation of a data processing contract resulting in a decrease in processing fees. FDIC expenses decreased approximately $0.7 million for the first six months of 2011 as compared to the same period in 2010 due to the Federal Deposit Insurance Corporation (FDIC) redefining the deposit insurance assessment base. In addition, loan collection and other real estate owned expenses decreased approximately $0.6 million for the six months ended June 30, 2011, as compared to the six months ended June 30, 2010. This decrease was due primarily to sales of certain properties classified as other real estate owned resulting in a reduction in maintenance expenses on properties owned by the Company. Income tax expense for the six month period ended June 30, 2011 was $12.2 million, up from $11.7 million for the same period in 2010. The effective tax rate was 29.7% for the six months ended June 30, 2011, as compared to 29.2% for the same period in 2010.

Noninterest expense for the three months ended June 30, 2011 was $43.2 million, down from $44.2 million, or 2.4%, for the same period in 2010. FDIC expenses decreased approximately $0.6 million for the three months ended June 30, 2011 as compared to the same period in 2010, due to the aforementioned redefined deposit insurance assessment base. In addition, loan collection and other real estate owned expenses decreased approximately $0.2 million for the three months ended June 30, 2011, as compared to the three months ended June 30, 2010. This decrease was due primarily to sales of certain properties classified as other real estate owned resulting in a reduction in maintenance expenses on properties owned by the Company. Other operating expenses consisting of various items decreased approximately $0.3 million for the three months ended June 30, 2011, as compared to the same period in 2010 with no significant driver. These decreases were partially offset by an increase in occupancy expenses of approximately $0.3 million for the three months ended June 30, 2011, as compared to the same period in 2010, primarily due to continued branch expansion. Income tax expense for the three month period ended June 30, 2011 was $6.2 million, up from $6.0 million for the same period in 2010. The effective tax rate was 29.7% for the three months ended June 30, 2011, as compared to 29.2% for the same period in 2010.

Balance Sheet

Total assets were $5.3 billion at June 30, 2011 and December 31, 2010. Loans and leases were $3.7 billion at June 30, 2011, up $54.5 million from December 31, 2010. Total deposits were $4.1 billion at June 30, 2011, down $19.7 million from December 31, 2010. Stockholders' equity was $535.3 million, representing a total equity-to-total assets ratio of 10.03% at June 30, 2011, compared with $533.6 million or a total equity-to-total assets ratio of 9.99% at December 31, 2010.

Stock Repurchase Program

Under a previously disclosed stock repurchase plan, the Company purchased 976,190 shares of its common stock during the six month period ended June 30, 2011, for a total of $21.2 million at an average price of $21.68 per share. At June 30, 2011, there were no shares available for repurchase under this plan.

Today, the NBT Board of Directors authorized a new repurchase program for NBT to repurchase up to an additional 1,000,000 shares (approximately 3%) of its outstanding common stock, effective July 25, 2011, as market conditions warrant in open market and privately negotiated transactions. The plan expires on December 31, 2013.

Dividend Declared

The NBT Board of Directors declared a 2011 third-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on September 15, 2011 to shareholders of record as of September 1, 2011.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $5.3 billion at June 30, 2011. 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 123 locations, including 85 NBT Bank offices in upstate New York, two NBT Bank offices in northwestern Vermont and 36 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
                                     2011        2010      Change     Change
                                  ----------  ----------  ---------  -------
                                  (dollars in thousands,
                                  except per share data)

  Three Months Ended June 30,
  Net Income                         $14,655     $14,424       $231       2%
  Diluted Earnings Per Share           $0.43       $0.42      $0.01       2%
  Weighted Average Diluted
   Common Shares Outstanding      34,319,665  34,565,005  (245,340)      -1%
  Return on Average Assets (1)         1.09%       1.06%       3 bp       3%
  Return on Average Equity (1)        10.86%      11.09%     -23 bp      -2%

  Net Interest Margin (2)              4.13%       4.14%      -1 bp       0%
  ------------------------------  ----------  ----------  ---------  -------

  Six Months Ended June 30,
  Net Income                         $28,962     $28,400       $562       2%
  Diluted Earnings Per Share           $0.84       $0.82      $0.02       2%
  Weighted Average Diluted
   Common Shares Outstanding      34,491,627  34,485,201      6,426       0%
  Return on Average Assets             1.08%       1.04%       4 bp       4%
  Return on Average Equity            10.82%      11.07%     -25 bp      -2%

  Net Interest Margin (2)              4.12%       4.17%      -5 bp      -1%
  ------------------------------  ----------  ----------  ---------  -------

                                               December
  Asset Quality                    June 30,      31,

                                     2011        2010
                                  ----------  ----------
  Nonaccrual Loans                   $40,191     $42,467
  90 Days Past Due and Still
   Accruing                           $1,459      $2,325
  Total Nonperforming Loans          $41,650     $44,792
  Other Real Estate Owned             $1,034        $901
  Total Nonperforming Assets         $42,684     $45,693
  Past Due Loans                     $25,399     $31,004
  Potential Problem Loans            $92,736     $82,247
  Allowance for Loan and Lease
   Losses                            $70,484     $71,234
  Year-to-Date (YTD) Net
   Charge-Offs                       $10,736     $25,125
  Allowance for Loan and Lease
   Losses to Total Loans and
   Leases                              1.92%       1.97%
  Total Nonperforming Loans to
   Total Loans and Leases              1.14%       1.24%
  Total Nonperforming Assets to
   Total Assets                        0.80%       0.86%
  Past Due Loans to Total Loans
   and Leases                          0.69%       0.86%
  Allowance for Loan and Lease
   Losses to Total Nonperforming
   Loans                             169.23%     159.03%

  Net Charge-Offs to YTD Average
   Loans and Leases                    0.60%       0.69%
  ------------------------------  ----------  ----------  ------------------

  Capital
  Equity to Assets                    10.03%       9.99%
  Book Value Per Share                $15.94      $15.51
  Tangible Book Value Per Share       $11.93      $11.67
  Tier 1 Leverage Ratio                9.13%       9.16%
  Tier 1 Capital Ratio                12.23%      12.44%

  Total Risk-Based Capital Ratio      13.49%      13.70%
  ------------------------------  ----------  ----------  ------------------


  ------------------------------------------------------
  Quarterly Common Stock Price       2011        2010

                                     High        High
  Quarter End                        Low         Low
                                  ----------  ----------
                                    $24.98      $23.99
  March 31                          $21.55      $19.15
                                    $23.32      $25.96
  June 30                           $20.62      $20.33
                                                $23.06
  September 30                                  $19.27

                                                $24.96
  December 31                                   $21.41
  ------------------------------  ----------  ----------

  (1) Annualized
  (2) Calculated on a FTE basis

                     NBT Bancorp Inc. and Subsidiaries
                       SELECTED FINANCIAL HIGHLIGHTS
                                 (unaudited)

                                            December
                                June 30,      31,

                                                                   Percent
                                  2011        2010     Net Change   Change
                               ----------  ----------  ----------  -------
                               (dollars in thousands,
                               except per share data)
  Balance Sheet
  Loans and Leases             $3,664,517  $3,610,006     $54,511       2%
  Earning Assets               $4,900,597  $4,914,972   ($14,375)       0%
  Total Assets                 $5,336,996  $5,338,856    ($1,860)       0%
  Deposits                     $4,114,613  $4,134,352   ($19,739)       0%

  Stockholders' Equity           $535,263    $533,572      $1,691       0%
  ---------------------------  ----------  ----------  ----------  -------


                                  2011        2010
                               ----------  ----------
                               (dollars in thousands,
  Average Balances             except per share data)
  Three Months Ended June 30,
  Loans and Leases             $3,648,343  $3,640,915      $7,428
  Securities Available For
   Sale
  (excluding unrealized gains
   or losses)                  $1,098,964  $1,114,315   ($15,351)
  Securities Held To Maturity     $85,615    $148,568   ($62,953)
  Trading Securities               $3,202      $2,605        $597
  Regulatory Equity
   Investment                     $27,071     $33,199    ($6,128)
  Short-Term Interest Bearing
   Accounts                      $128,799    $106,784     $22,015
  Total Earning Assets         $4,988,792  $5,043,781   ($54,989)
  Total Assets                 $5,412,979  $5,482,336   ($69,357)
  Interest Bearing Deposits    $3,290,469  $3,372,297   ($81,828)
  Non-Interest Bearing
   Deposits                      $932,066    $779,841    $152,225
  Short-Term Borrowings          $135,618    $151,985   ($16,367)
  Long-Term Borrowings           $444,881    $577,179  ($132,298)
  Total Interest Bearing
   Liabilities                 $3,870,968  $4,101,461  ($230,493)

  Stockholders' Equity           $541,349    $521,632     $19,717
  ---------------------------  ----------  ----------  ----------

  Average Balances
  Six Months Ended June 30,
  Loans and Leases             $3,632,355  $3,640,528    ($8,173)
  Securities Available For
   Sale
  (excluding unrealized gains
   or losses)                  $1,098,506  $1,101,530    ($3,024)
  Securities Held To Maturity     $89,833    $152,164   ($62,331)
  Trading Securities               $3,086      $2,517        $569
  Regulatory Equity
   Investment                     $27,158     $33,959    ($6,801)
  Short-Term Interest Bearing
   Accounts                      $135,019    $115,354     $19,665
  Total Earning Assets         $4,982,871  $5,043,535   ($60,664)
  Total Assets                 $5,405,062  $5,485,920   ($80,858)
  Interest Bearing Deposits    $3,290,198  $3,374,231   ($84,033)
  Non-Interest Bearing
   Deposits                      $918,483    $769,744    $148,739
  Short-Term Borrowings          $144,447    $154,605   ($10,158)
  Long-Term Borrowings           $445,139    $589,396  ($144,257)
  Total Interest Bearing
   Liabilities                 $3,879,784  $4,118,232  ($238,448)

  Stockholders' Equity           $539,789    $517,426     $22,363
  ---------------------------  ----------  ----------  ----------

  NBT Bancorp Inc. and
   Subsidiaries                      June 30,     December 31,

  Consolidated Balance Sheets
   (unaudited)                         2011           2010
  ------------------------------  -------------  -------------
  (in thousands)

  ASSETS
  Cash and due from banks             $ 101,936       $ 99,673
  Short term interest bearing
   accounts                                 830         69,119
  Securities available for sale,
   at fair value                      1,156,679      1,129,368
  Securities held to maturity
   (fair value of $78,357and
   $98,759                               76,878         97,310
  at June 30, 2011 and December
   31, 2010, respectively)
  Trading securities                      3,276          2,808
  Federal Reserve and Federal
   Home Loan Bank stock                  27,425         27,246
  Loans and leases                    3,664,517      3,610,006

  Less allowance for loan and
   lease losses                          70,484         71,234
  ------------------------------  -------------  -------------
   Net loans and leases               3,594,033      3,538,772
  Premises and equipment, net            66,898         67,404
  Goodwill                              116,127        114,841
  Intangible assets, net                 18,402         17,543
  Bank owned life insurance              76,996         75,301

  Other assets                           97,516         99,471
  ------------------------------  -------------  -------------

  TOTAL ASSETS                      $ 5,336,996    $ 5,338,856
  ------------------------------  -------------  -------------

  LIABILITIES AND STOCKHOLDERS'
   EQUITY
  Deposits:
   Demand (noninterest bearing)       $ 930,292      $ 911,741
   Savings, NOW, and money
    market                            2,288,515      2,291,833

   Time                                 895,806        930,778
  ------------------------------  -------------  -------------
    Total deposits                    4,114,613      4,134,352
  Short-term borrowings                 175,958        159,434
  Long-term debt                        370,350        369,874
  Trust preferred debentures             75,422         75,422

  Other liabilities                      65,390         66,202
  ------------------------------  -------------  -------------
    Total liabilities                 4,801,733      4,805,284


  Total stockholders' equity            535,263        533,572
  ------------------------------  -------------  -------------


  TOTAL LIABILITIES AND
   STOCKHOLDERS' EQUITY             $ 5,336,996    $ 5,338,856
  ------------------------------  -------------  -------------

                                   Three Months Ended       Six Months Ended
  NBT Bancorp Inc. and
   Subsidiaries                          June 30,               June 30,

  Consolidated Statements of
   Income (unaudited)                2011        2010       2011         2010
  ------------------------------  ----------  ---------  -----------  ----------
  (in thousands, except per
   share data)
  Interest, fee and dividend
   income:
  Loans and leases                  $ 51,126   $ 53,503    $ 101,986   $ 107,195
  Securities available for sale        7,947      9,556       15,851      19,602
  Securities held to maturity            745      1,078        1,545       2,215

  Other                                  440        469          933       1,065
  ------------------------------  ----------  ---------  -----------  ----------

   Total interest, fee and
    dividend income                   60,258     64,606      120,315     130,077
  ------------------------------  ----------  ---------  -----------  ----------
  Interest expense:
  Deposits                             6,051      7,999       12,338      16,453
  Short-term borrowings                   52        123          110         247
  Long-term debt                       3,591      4,850        7,162       9,915

  Trust preferred debentures             400      1,033        1,289       2,060
  ------------------------------  ----------  ---------  -----------  ----------

   Total interest expense             10,094     14,005       20,899      28,675
  ------------------------------  ----------  ---------  -----------  ----------
  Net interest income                 50,164     50,601       99,416     101,402

  Provision for loan and lease
   losses                              6,021      6,350        9,986      15,593
  ------------------------------  ----------  ---------  -----------  ----------

  Net interest income after
   provision for loan and lease
   losses                             44,143     44,251       89,430      85,809
  ------------------------------  ----------  ---------  -----------  ----------
  Noninterest income:
  Trust                                2,258      1,909        4,294       3,675
  Service charges on deposit
   accounts                            5,455      6,301       10,527      12,431
  ATM and debit card fees              2,928      2,462        5,596       4,829
  Insurance and other financial
   services revenue                    5,025      4,700       10,798       9,945
  Net securities gains                    59         63           86          91
  Bank owned life insurance
   income                                660        808        1,695       1,789
  Retirement plan administration
   fees                                2,268      2,595        4,439       4,985

  Other                                1,208      1,482        2,552       2,916
  ------------------------------  ----------  ---------  -----------  ----------

   Total noninterest income           19,861     20,320       39,987      40,661
  ------------------------------  ----------  ---------  -----------  ----------
  Noninterest expense:
  Salaries and employee benefits      24,035     24,224       49,039      46,428
  Office supplies and postage          1,342      1,454        2,887       2,996
  Occupancy                            3,987      3,666        8,509       7,818
  Equipment                            2,180      2,041        4,370       4,141
  Professional fees and outside
   services                            2,088      2,191        4,154       4,475
  Data processing and
   communications                      3,117      3,265        6,031       6,483
  Amortization of intangible
   assets                                771        780        1,504       1,561
  Loan collection and other real
   estate owned                          443        668        1,162       1,727
  Advertising                          1,033        825        1,601       1,492
  FDIC expenses                          965      1,560        2,461       3,113

  Other operating                      3,196      3,523        6,500       6,123
  ------------------------------  ----------  ---------  -----------  ----------

   Total noninterest expense          43,157     44,197       88,218      86,357
  ------------------------------  ----------  ---------  -----------  ----------
  Income before income taxes          20,847     20,374       41,199      40,113

  Income taxes                         6,192      5,950       12,237      11,713
  ------------------------------  ----------  ---------  -----------  ----------

   Net income                       $ 14,655   $ 14,424     $ 28,962    $ 28,400
  ------------------------------  ----------  ---------  -----------  ----------
  Earnings Per Share:
     Basic                            $ 0.43     $ 0.42       $ 0.85      $ 0.83

     Diluted                          $ 0.43     $ 0.42       $ 0.84      $ 0.82
  ------------------------------  ----------  ---------  -----------  ----------

  NBT Bancorp Inc. and
   Subsidiaries                       2Q         1Q         4Q         3Q         2Q

  Quarterly Consolidated
   Statements of Income
   (unaudited)                       2011        2011       2010       2010       2010
  ------------------------------  ----------  ---------  ---------  ---------  ---------
  (in thousands, except per
   share data)
  Interest, fee and dividend
   income:
  Loans and leases                  $ 51,126   $ 50,860   $ 52,933   $ 53,301   $ 53,503
  Securities available for sale        7,947      7,904      7,944      8,621      9,556
  Securities held to maturity            745        800        845        908      1,078

  Other                                  440        493        627        482        469
  ------------------------------  ----------  ---------  ---------  ---------  ---------

   Total interest, fee and
    dividend income                   60,258     60,057     62,349     63,312     64,606
  ------------------------------  ----------  ---------  ---------  ---------  ---------
  Interest expense:
  Deposits                             6,051      6,287      6,727      7,174      7,999
  Short-term borrowings                   52         58         64         91        123
  Long-term debt                       3,591      3,571      4,025      4,374      4,850

  Trust preferred debentures             400        889      1,034      1,046      1,033
  ------------------------------  ----------  ---------  ---------  ---------  ---------

   Total interest expense             10,094     10,805     11,850     12,685     14,005
  ------------------------------  ----------  ---------  ---------  ---------  ---------
  Net interest income                 50,164     49,252     50,499     50,627     50,601

  Provision for loan and lease
   losses                              6,021      3,965      6,687      7,529      6,350
  ------------------------------  ----------  ---------  ---------  ---------  ---------

  Net interest income after
   provision for loan and lease
   losses                             44,143     45,287     43,812     43,098     44,251
  ------------------------------  ----------  ---------  ---------  ---------  ---------
  Noninterest income:
  Trust                                2,258      2,036      2,261      1,786      1,909
  Service charges on deposit
   accounts                            5,455      5,072      5,657      5,953      6,301
  ATM and debit card fees              2,928      2,668      2,546      2,660      2,462
  Insurance and other financial
   services revenue                    5,025      5,773      4,327      4,595      4,700
  Net securities gains                    59         27      2,063      1,120         63
  Bank owned life insurance
   income                                660      1,035        872        655        808
  Retirement plan administration
   fees                                2,268      2,171      2,759      2,612      2,595

  Other                                1,208      1,344      1,751      1,610      1,482
  ------------------------------  ----------  ---------  ---------  ---------  ---------

   Total noninterest income           19,861     20,126     22,236     20,991     20,320
  ------------------------------  ----------  ---------  ---------  ---------  ---------
  Noninterest expense:
  Salaries and employee benefits      24,035     25,004     23,200     24,090     24,224
  Office supplies and postage          1,342      1,545      1,564      1,542      1,454
  Occupancy                            3,987      4,522      3,823      3,709      3,666
  Equipment                            2,180      2,190      2,123      2,053      2,041
  Professional fees and outside
   services                            2,088      2,066      2,489      2,068      2,191
  Data processing and
   communications                      3,117      2,914      2,893      2,971      3,265
  Amortization of intangible
   assets                                771        733        744        767        780
  Loan collection and other real
   estate owned                          443        719        761        548        668
  Advertising                          1,033        568      1,266        730        825
  FDIC expenses                          965      1,496      1,347      1,621      1,560
  Prepayment penalty on
   long-term debt                         --         --      3,321      1,205         --

  Other operating                      3,196      3,304      3,719      3,380      3,523
  ------------------------------  ----------  ---------  ---------  ---------  ---------

   Total noninterest expense          43,157     45,061     47,250     44,684     44,197
  ------------------------------  ----------  ---------  ---------  ---------  ---------
  Income before income taxes          20,847     20,352     18,798     19,405     20,374

  Income taxes                         6,192      6,045      4,364      4,835      5,950
  ------------------------------  ----------  ---------  ---------  ---------  ---------

   Net income                       $ 14,655   $ 14,307   $ 14,434   $ 14,570   $ 14,424
  ------------------------------  ----------  ---------  ---------  ---------  ---------
  Earnings per share:
   Basic                              $ 0.43     $ 0.42     $ 0.42     $ 0.42     $ 0.42

   Diluted                            $ 0.43     $ 0.41     $ 0.42     $ 0.42     $ 0.42
  ------------------------------  ----------  ---------  ---------  ---------  ---------


     Three Months ended June 30,
                                   --------------------------------------------------------------------
                                                     2011                               2010
                                      Average                 Yield/     Average                 Yield/

  (dollars in thousands)              Balance      Interest    Rates     Balance      Interest    Rates
  -------------------------------  -------------  ----------  ------  -------------  ----------  ------
  ASSETS
  Short-term interest bearing
   accounts                             $128,799        $111   0.35%       $106,784         $75   0.28%
  Securities available for sale
   (1)(excluding unrealized gains
   or losses)                          1,098,964       8,512   3.11%      1,114,315      10,286   3.70%
  Securities held to maturity (1)         85,615       1,125   5.27%        148,568       1,624   4.38%
  Investment in FRB and FHLB
   Banks                                  27,071         329   4.87%         33,199         394   4.76%

  Loans and leases (2)                 3,648,343      51,359              3,640,915      53,713
                                   -------------  ----------   5.65%  -------------  ----------   5.92%

   Total interest earning assets     $ 4,988,792    $ 61,436                           $ 66,092
                                                  ----------   4.94%    $ 5,043,781  ----------   5.26%

  Other assets                           424,187                            438,555
                                   -------------                      -------------

  Total assets                       $ 5,412,979                        $ 5,482,336
                                   -------------                      -------------

  LIABILITIES AND STOCKHOLDERS'
   EQUITY
  Money market deposit accounts       $1,091,001       1,009   0.37%     $1,130,124     $ 1,743   0.62%
  NOW deposit accounts                   672,345         627   0.37%        689,079         770   0.45%
  Savings deposits                       607,533         182   0.12%        557,109         214   0.15%

  Time deposits                          919,590       4,233                995,985       5,272
                                   -------------  ----------   1.85%  -------------  ----------   2.12%
   Total interest bearing
    deposits                         $ 3,290,469     $ 6,051   0.74%    $ 3,372,297     $ 7,999   0.95%
  Short-term borrowings                  135,618          52   0.15%        151,985         123   0.32%
  Trust preferred debentures              75,422         400   2.13%         75,422       1,033   5.49%

  Long-term debt                         369,459       3,591                501,757       4,850
                                   -------------  ----------   3.90%  -------------  ----------   3.88%
   Total interest bearing
    liabilities                      $ 3,870,968    $ 10,094                           $ 14,005
                                                  ----------   1.05%    $ 4,101,461  ----------   1.37%
  Demand deposits                        932,066                            779,841
  Other liabilities                       68,596                             79,402

  Stockholders' equity                   541,349                            521,632
                                   -------------                      -------------
  Total liabilities and
   stockholders' equity              $ 5,412,979                         $5,482,336
                                   -------------                      -------------

   Net interest income (FTE)                          51,342                             52,087
                                                  ----------                         ----------
  Interest rate spread                                         3.89%                              3.89%
  Net interest margin                                          4.13%                              4.14%

  Taxable equivalent adjustment                        1,178                              1,486
                                                  ----------                         ----------
  Net interest income                               $ 50,164                           $ 50,601

  (1) Securities are shown at average amortized cost
  (2) For purposes of these computations, nonaccrual loans are included in the average loan balances
   outstanding


  Six Months ended June 30,
                                   ----------------------------------------------------------------------


                                   -------------     2011                                2010

                                      Average
                                   -------------               Yield/     Average                  Yield/

  (dollars in thousands)              Balance      Interest     Rates     Balance      Interest     Rates
  -------------------------------  -------------  -----------  ------  -------------  -----------  ------
  ASSETS
  Short-term interest bearing
   accounts                             $135,019         $180   0.27%       $115,354         $142   0.25%
  Securities available for sale
   (1)(excluding unrealized gains
   or losses)                          1,098,506       17,013   3.12%      1,101,530       21,068   3.86%
  Securities held to maturity (1)         89,833        2,327   5.22%        152,164        3,338   4.42%
  Investment in FRB and FHLB
   Banks                                  27,158          754   5.60%         33,959          924   5.48%

  Loans and leases (2)                 3,632,355      102,451              3,640,528      107,591
                                   -------------  -----------   5.69%  -------------  -----------   5.96%

   Total interest earning assets     $ 4,982,871    $ 122,725                           $ 133,063
                                                  -----------   4.97%    $ 5,043,535  -----------   5.32%

  Other assets                           422,191                             442,385
                                   -------------                       -------------

  Total assets                       $ 5,405,062                         $ 5,485,920
                                   -------------                       -------------

  LIABILITIES AND STOCKHOLDERS'
   EQUITY
  Money market deposit accounts       $1,088,456        2,125   0.39%     $1,112,154      $ 3,639   0.66%
  NOW deposit accounts                   685,171        1,261   0.37%        705,538        1,591   0.45%
  Savings deposits                       591,043          347   0.12%        544,961          407   0.15%

  Time deposits                          925,528        8,605              1,011,578       10,816
                                   -------------  -----------   1.87%  -------------  -----------   2.16%
   Total interest bearing
    deposits                         $ 3,290,198     $ 12,338   0.76%    $ 3,374,231     $ 16,453   0.98%
  Short-term borrowings                  144,447          110   0.15%        154,605          247   0.32%
  Trust preferred debentures              75,422        1,289   3.45%         75,422        2,060   5.51%

  Long-term debt                         369,717        7,162                513,974        9,915
                                   -------------  -----------   3.91%  -------------  -----------   3.89%
   Total interest bearing
    liabilities                      $ 3,879,784     $ 20,899                            $ 28,675
                                                  -----------   1.09%    $ 4,118,232  -----------   1.40%
  Demand deposits                        918,483                             769,744
  Other liabilities                       67,006                              80,518

  Stockholders' equity                   539,789                             517,426
                                   -------------                       -------------
  Total liabilities and
   stockholders' equity              $ 5,405,062                          $5,485,920
                                   -------------                       -------------

   Net interest income (FTE)                          101,826                             104,388
                                                  -----------                         -----------
  Interest rate spread                                          3.88%                               3.92%
  Net interest margin                                           4.12%                               4.17%

  Taxable equivalent adjustment                         2,410                               2,986
                                                  -----------                         -----------
  Net interest income                                $ 99,416                           $ 101,402

  (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)

                                           June 30,    December 31,

  (In thousands)                             2011          2010
  -------------------------------------  ------------  ------------
  Residential real estate mortgages          $564,345      $548,394
  Commercial                                  623,832       577,731
  Commercial real estate mortgages            834,524       844,458
  Real estate construction and
   development                                 64,245        45,444
  Agricultural and agricultural real
   estate mortgages                           108,496       112,738
  Consumer                                    910,976       905,563

  Home equity                                 558,099       575,678
                                         ------------  ------------

   Total loans and leases                 $ 3,664,517   $ 3,610,006
                                         ============  ============

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.