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NBT Bancorp Inc. Announces Year-to-Date Net Income of $43.0 Million, Up 12.5% From Last Year; Declares Cash Dividend

10/25/10

NORWICH, NY, Oct 25, 2010 (MARKETWIRE via COMTEX) --

NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today net income per diluted share for the nine months ended September 30, 2010 was $1.25 per share, as compared with $1.13 per share for the nine months ended September 30, 2009. Annualized return on average assets and return on average equity were 1.05% and 11.01%, respectively, for the nine months ended September 30, 2010, compared with 0.95% and 10.89%, respectively, for the nine months ended September 30, 2009. Net interest margin (on a fully taxable equivalent basis ("FTE")) was 4.17% for the nine months ended September 30, 2010, up 17 basis points ("bp") from 4.00% for the nine months ended September 30, 2009. Net income for the nine months ended September 30, 2010 was $43.0 million, up $4.8 million, or 12.5%, from the nine months ended September 30, 2009.

Net income per diluted share for the three months ended September 30, 2010 was $0.42, as compared with $0.40 per share for the three months ended September 30, 2009. Annualized return on average assets and return on average equity were 1.07% and 10.89%, respectively, for the three months ended September 30, 2010, compared with 0.99% and 11.01%, respectively, for the three months ended September 30, 2009. FTE net interest margin was 4.15% for the three months ended September 30, 2010, up 17 bp from 3.98% for the three months ended September 30, 2009. Net income for the three months ended September 30, 2010 was $14.6 million, up $1.0 million, or 7.3%, from $13.6 million for the third quarter last year.

"We remain pleased with our financial results in this challenging environment," said NBT President and CEO Martin Dietrich. "Our approach of aggressively managing our conservative banking strategy continues to produce positive results. Our financial performance is especially encouraging when compared to peer data, specifically net interest margin, return on average assets and return on average equity. Importantly, we have achieved these results while maintaining our focus on strategic investments for future growth, including expanding into new markets."

Loan and Lease Quality and Provision for Loan and Lease Losses

Past due loans as a percentage of total loans has improved to 0.78% at September 30, 2010, as compared with 0.89% at December 31, 2009. Nonperforming loans increased slightly to $43.6 million or 1.20% of total loans and leases at September 30, 2010 compared with $41.3 million or 1.13% at December 31, 2009.

Net charge-offs for the nine months ended September 30, 2010 were $17.8 million compared to $18.7 million for the same period in 2009. Net charge-offs for the three months ended September 30, 2010 were $6.0 million compared to $7.2 million for the same period in 2009. The annualized net charge-off ratio for the nine months ended September 30, 2010 was 0.65% compared to 0.70% for the year ended December 31, 2009.

The allowance for loan and lease losses totaled $71.9 million at September 30, 2010 as compared with $70.3 million at June 30, 2010. The allowance for loan and lease losses as a percentage of loans and leases was 1.98% at September 30, 2010 as compared to 1.93% at June 30, 2010. The increase in the allowance for loan and lease losses is due to a specific allocation made during the three month period ended September 30, 2010 of $1.6 million on one impaired commercial credit.

The Company recorded a provision for loan and lease losses of $23.1 million during the nine months ended September 30, 2010, as compared with $24.8 million during the nine months ended September 30, 2009. The Company recorded a provision for loan and lease losses of $7.5 million during the third quarter of 2010 compared with $9.1 million during the third quarter of 2009. While the aforementioned specific allocation which was recorded during the three month period ending September 30, 2010 contributed to an increase in provision for these periods, this was more than offset by the overall decrease in total provision. The decrease in total provision is due to ongoing modeling of the required levels of reserves which considers historical charge-offs, loan growth and economic trends.

Net Interest Income

Net interest income was up 5.0% to $152.0 million for the nine months ended September 30, 2010 compared with $144.8 million for the nine months ended September 30, 2009. The Company's FTE net interest margin was 4.17% for the nine months ended September 30, 2010, as compared with 4.00% for the nine months ended September 30, 2009. As a result of the Company's excess liquidity, our Federal Funds sold position had a net negative impact of approximately 5 bp on our net interest margin for the nine months ended September 30, 2010 as compared to the nine months ended September 30, 2009.

While the yield on interest earning assets decreased 36 bp, the yield on interest bearing liabilities declined 59 bp, which resulted in an increase in the FTE net interest margin for the nine months ended September 30, 2010 compared to the same period for 2009. The yield on securities available for sale was 3.74% for the nine months ended September 30, 2010, as compared with 4.61% for the nine months ended September 30, 2009. The yield on loans and leases was 5.92% for the nine months ended September 30, 2010, as compared with 6.07% for the nine months ended September 30, 2009. The yield on time deposits was 2.10% for the nine months ended September 30, 2010, as compared with 2.75% for the nine months ended September 30, 2009. The yield on money market deposit accounts was 0.62% for the nine months ended September 30, 2010, as compared with 1.32% for the nine months ended September 30, 2009.

Net interest income was up 4.0% to $50.6 million for the three months ended September 30, 2010 compared with $48.7 million for the three months ended September 30, 2009. The Company's FTE net interest margin was 4.15% for the three months ended September 30, 2010, as compared with 3.98% for the three months ended September 30, 2009. As a result of the Company's excess liquidity, our Federal Funds sold position had a net negative impact of approximately 4 bp on our net interest margin for the three months ended September 30, 2010 as compared to the three months ended September 30, 2009.

While the yield on interest earning assets decreased 31 bp, the yield on interest bearing liabilities declined 56 bp, which resulted in an increase in the net interest margin for the three months ended September 30, 2010 compared to the same period for 2009. The yield on securities available for sale was 3.49% for the three months ended September 30, 2010, as compared with 4.35% for the three months ended September 30, 2009. The yield on loans and leases was 5.85% for the three months ended September 30, 2010, as compared with 6.00% for the three months ended September 30, 2009. The yield on time deposits was 2.00% for the three months ended September 30, 2010, as compared with 2.57% for the three months ended September 30, 2009. The yield on money market deposit accounts was 0.53% for the three months ended September 30, 2010, as compared with 1.28% for the three months ended September 30, 2009.

Noninterest Income

Noninterest income for the nine months ended September 30, 2010 was $61.7 million, up $1.4 million or 2.3% from $60.3 million for the same period in 2009. The increase in noninterest income was due primarily to an increase in retirement plan administration fees of approximately $1.3 million for the nine month period ended September 30, 2010 as compared with the nine month period ended September 30, 2009 as a result of organic growth and increased asset values from improved market conditions. In addition, the Company experienced an increase in net securities gains of approximately $1.1 million for the nine months ended September 30, 2010 as compared to the same period in 2009 due primarily to the sale of one equity position during the third quarter of 2010. Trust revenue increased approximately $0.6 million for the nine months ended September 30, 2010 as compared to the same period in 2009 due primarily to an increase in fair value of trust assets under administration. Other financial services revenue increased approximately $0.6 million for the nine months ended September 30, 2010 as compared to the same period in 2009, due primarily to expansion into new markets within our footprint. These increases were partially offset by a decrease in service charges on deposit accounts of approximately $2.0 million as a result of a decrease in overdraft activity due to changes in consumer behavior caused by economic conditions as well as the effects of implementing new regulations regarding overdraft fees. In addition, other noninterest income decreased approximately $0.9 million, or 17.0%, for the nine months ended September 30, 2010 as compared with the same period in 2009 due primarily to a decrease in mortgage banking revenue as a result of a decrease in loan sales.

Noninterest income for the three months ended September 30, 2010 was $21.0 million, relatively flat compared with $20.9 million for the same period in 2009. Net securities gains increased approximately $1.0 million for the three months ended September 30, 2010 as compared to the same period in 2009. This increase was due primarily to the aforementioned equity sale. Slight increases in ATM and debit card fees, insurance and other financial services revenue, and retirement plan administration fees also contributed to the increase in noninterest income. These increases were offset by a decrease in service charges on deposit accounts of approximately $1.2 million, or 16.3%, for the three months ended September 30, 2010 as compared with the same period in 2009. The decrease in service charges was the result of a decrease in overdraft activity due to changes in consumer behavior caused by economic conditions as well as the effects of implementing new regulations regarding overdraft fees. In addition, other noninterest income decreased approximately $0.4 million, or 21.0%, for the three months ended September 30, 2010 as compared with the same period in 2009, due primarily to a decrease in mortgage banking revenue as a result of a decrease in loan sales.

Noninterest Expense and Income Tax Expense

Noninterest expense for the nine months ended September 30, 2010 was $131.0 million, up from $125.3 million, or 4.6%, for the same period in 2009. Salaries and employee benefits increased $7.9 million, or 12.6%, for the nine months ended September 30, 2010 compared with the same period in 2009. This increase was due primarily to increases in full-time-equivalent employees, merit increases, employee benefits, and incentive compensation. In addition, the Company incurred a debt prepayment penalty of $1.2 million to pay off long-term debt during the third quarter of 2010, while no prepayment penalties were incurred for the same period in 2009. These increases were partially offset by a decrease in FDIC expenses of approximately $2.4 million for the nine month period ended September 30, 2010, as compared with the nine months ended September 30, 2009. This decrease resulted from the special assessment levied by the FDIC in the second quarter of 2009. In addition, professional fees and outside services decreased by $1.3 million, or 16.3%, for the nine month period ended September 30, 2010 as compared with the nine months ended September 30, 2009. This decrease was due primarily to nonrecurring legal fees incurred during the second quarter of 2009 related to de novo branch activity as well as non-recurring systems consulting services incurred in the third quarter of 2009. Income tax expense for the nine month period ended September 30, 2010 was $16.5 million, down from $16.9 million for the same period in 2009. This decrease is primarily the result of an amendment to New York State tax law to conform to the bad debt treatment afforded under Federal law, which resulted in a reduction to tax expense of $0.6 million for the nine month period ended September 30, 2010. The effective tax rate was 27.8% for the nine months ended September 30, 2010, as compared to 30.7% for the same period in 2009.

Noninterest expense for the three months ended September 30, 2010 was $44.7 million, up from $41.0 million, or 8.9%, for the same period in 2009. Salaries and employee benefits increased $2.8 million, or 13.2%, for the three months ended September 30, 2010 compared with the same period in 2009. This increase was due primarily to increases in full-time-equivalent employees, merit increases and other employee benefits. In addition, the Company incurred a debt prepayment penalty of $1.2 million to pay off long-term debt during the third quarter of 2010, while no prepayment penalties were incurred for the same period in 2009. These increases were partially offset by a decrease in professional fees and outside services of approximately $0.6 million for the three month period ended September 30, 2010, as compared with the three months ended September 30, 2009. This decrease resulted primarily from non-recurring systems consulting services incurred in the third quarter of 2009. Income tax expense for the three month period ended September 30, 2010 was $4.8 million, down from $5.8 million for the same period in 2009. This decrease is primarily the result of an amendment to New York State tax law to conform to the bad debt treatment afforded under Federal law, which resulted in a reduction to tax expense of $0.6 million in the third quarter of 2010. The effective tax rate was 24.9% for the three months ended September 30, 2010, as compared to 30.0% for the same period in 2009.

Balance Sheet

Total assets were $5.5 billion at September 30, 2010, up $18.0 million or 0.3% from December 31, 2009. Loans and leases were $3.6 billion at September 30, 2010, down $24.0 million from December 31, 2009. Total deposits were $4.2 billion at September 30, 2010, up $109.6 million from December 31, 2009. Stockholders' equity was $534.3 million, representing a total equity-to-total assets ratio of 9.75% at September 30, 2010, compared with $505.1 million or a total equity-to-total assets ratio of 9.24% at December 31, 2009.

Stock Repurchase Program

Under previously disclosed stock repurchase plans, the Company purchased 23,810 shares of its common stock during the nine month period ended September 30, 2010, for a total of $0.5 million at an average price of $20.03 per share. At September 30, 2010, there were 976,190 shares available for repurchase under this previously announced stock repurchase plan. This plan was authorized on October 26, 2009 in the amount of 1,000,000 shares and expires on December 31, 2011.

Dividend Declared

The NBT Board of Directors declared a 2010 fourth-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on December 15, 2010 to shareholders of record as of December 1, 2010.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $5.5 billion at September 30, 2010. 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, 37 Pennstar Bank offices in northeastern Pennsylvania and one office in Burlington, Vermont. EPIC Advisors, Inc., based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm. Mang Insurance Agency, LLC, based in Norwich, 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.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
                                    2010        2009      Change   Change
                                 ----------  ----------  --------  -------
                                 (dollars in thousands,
                                 except per share data)
Three Months Ended September 30,
Net Income                       $   14,570  $   13,578  $    992        7%
Diluted Earnings Per Share       $     0.42  $     0.40  $   0.02        5%
Weighted Average Diluted
 Common Shares Outstanding       34,512,724  34,342,125   170,599        0%
Return on Average Assets (1)           1.07%       0.99%     8 bp        8%
Return on Average Equity (1)          10.89%      11.01%  (12 bp)       -1%
Net Interest Margin (2)                4.15%       3.98%    17 bp        4%
                                 ==========  ==========  ========  =======
Nine Months Ended September 30,
Net Income                       $   42,970  $   38,210  $  4,760       12%
Diluted Earnings Per Share       $     1.25  $     1.13  $   0.12       11%
Weighted Average Diluted
 Common Shares Outstanding       34,482,097  33,780,769   701,328        2%
Return on Average Assets               1.05%       0.95%    10 bp       11%
Return on Average Equity              11.01%      10.89%    12 bp        1%
Net Interest Margin (2)                4.17%       4.00%    17 bp        4%
                                 ==========  ==========  ========  =======
Asset Quality                  September 30, December 31,
                                    2010        2009
                                 ----------  ----------
Nonaccrual Loans                 $   41,248  $   38,746
90 Days Past Due and Still
 Accruing                        $    2,349  $    2,526
Total Nonperforming Loans        $   43,597  $   41,272
Other Real Estate Owned          $    1,143  $    2,358
Total Nonperforming Assets       $   44,740  $   43,630
Past Due Loans                   $   28,200  $   32,349
Potential Problem Loans          $   84,043  $   79,072
Allowance for Loan and Lease
 Losses                          $   71,875  $   66,550
Allowance for Loan and Lease
 Losses to Total Loans and
 Leases                                1.98%       1.83%
Total Nonperforming Loans to
 Total Loans and Leases                1.20%       1.13%
Total Nonperforming Assets to
 Total Assets                          0.82%       0.80%
Past Due Loans to Total Loans
 and Leases                            0.78%       0.89%
Allowance for Loan and Lease
 Losses to Total Nonperforming
 Loans                               164.86%     161.25%
Net Charge-Offs to YTD Average
 Loans and Leases                      0.65%       0.70%
                                 ==========  ==========
Capital
Equity to Assets                       9.75%       9.24%
Book Value Per Share             $    15.50  $    14.69
Tangible Book Value Per Share    $    11.64  $    10.75
Tier 1 Leverage Ratio                  9.06%       8.35%
Tier 1 Capital Ratio                  12.19%      11.34%
Total Risk-Based Capital Ratio        13.44%      12.59%
                                 ==========  ==========
                               -------------  -------------
Quarterly Common Stock Price        2010           2009
Quarter End                     High    Low    High    Low
                               ------ ------  ------ ------
March 31                       $23.99 $19.15  $28.37 $15.42
June 30                        $25.96 $20.33   25.22  20.49
September 30                   $23.06 $19.27   24.16  20.57
December 31                                    23.59  19.43
                               -------------  -------------
(1)  Annualized
(2)  Calculated on a FTE basis
                    NBT Bancorp Inc. and Subsidiaries
                      SELECTED FINANCIAL HIGHLIGHTS
                                (unaudited)
                          September 30,  December 31,      Net     Percent
                              2010           2009         Change   Change
                          -------------  -------------  ---------  -------
                            (dollars in thousands,
                            except per share data)
Balance Sheet
Loans and Leases          $   3,621,367  $   3,645,398  $ (24,031)      -1%
Earning Assets            $   5,023,366  $   5,009,251  $  14,115        0%
Total Assets              $   5,481,992  $   5,464,026  $  17,966        0%
Deposits                  $   4,202,621  $   4,093,046  $ 109,575        3%
Stockholders' Equity      $     534,251  $     505,123  $  29,128        6%
                          =============  =============  =========  =======
                              2010           2009
                          -------------  -------------
                            (dollars in thousands,
Average Balances            except per share data)
Three Months Ended
 September 30,
Loans and Leases          $   3,631,637  $   3,627,803  $   3,834
Securities Available
 For Sale (excluding
 unrealized gains or
 losses)                  $   1,052,985  $   1,082,655  $ (29,670)
Securities Held To
 Maturity                 $     111,140  $     161,915  $ (50,775)
Trading Securities        $       2,513  $       2,109  $     404
Regulatory Equity
 Investment               $      30,638  $      37,372  $  (6,734)
Short-Term Interest
 Bearing Accounts         $     132,734  $      99,501  $  33,233
Total Earning Assets      $   4,959,134  $   5,009,246  $ (50,112)
Total Assets              $   5,396,676  $   5,415,374  $ (18,698)
Interest Bearing Deposits $   3,281,560  $   3,316,011  $ (34,451)
Non-Interest Bearing
 Deposits                 $     827,358  $     737,064  $  90,294
Short-Term Borrowings     $     159,480  $     132,459  $  27,021
Long-Term Borrowings      $     520,103  $     660,838  $(140,735)
Total Interest Bearing
 Liabilities              $   3,961,143  $   4,109,308  $(148,165)
Stockholders' Equity      $     530,585  $     489,140  $  41,445
                          =============  =============  =========
Average Balances
Nine Months Ended
 September 30,
Loans and Leases          $   3,637,532  $   3,646,437  $  (8,905)
Securities Available For
 Sale (excluding
 Unrealized gains or
 losses)                  $   1,085,171  $   1,085,746  $    (575)
Securities Held To
 Maturity                 $     138,339  $     146,350  $  (8,011)
Trading Securities        $       2,515  $       1,801  $     714
Regulatory Equity
 Investment               $      32,840  $      38,143  $  (5,303)
Short-Term Interest
 Bearing Accounts         $     121,211  $      76,523  $  44,688
Total Earning Assets      $   5,015,093  $   4,993,199  $  21,894
Total Assets              $   5,455,845  $   5,405,331  $  50,514
Interest Bearing Deposits $   3,343,001  $   3,336,644  $   6,357
Non-Interest Bearing
 Deposits                 $     789,160  $     708,513  $  80,647
Short-Term Borrowings     $     156,248  $     133,668  $  22,580
Long-Term Borrowings      $     566,044  $     683,830  $(117,786)
Total Interest Bearing
 Liabilities              $   4,065,293  $   4,154,142  $ (88,849)
Stockholders' Equity      $     521,861  $     469,236  $  52,625
                          =============  =============  =========
NBT Bancorp Inc. and Subsidiaries               September 30, December 31,
Consolidated Balance Sheets (unaudited)             2010          2009
                                                ------------- -------------
(in thousands)
ASSETS
Cash and due from banks                         $     119,519 $     107,980
Short term interest bearing accounts                  221,214        79,181
Securities available for sale, at fair value        1,080,165     1,116,758
Securities held to maturity (fair value of
 $105,130 and $161,851 at September 30, 2010
 and December 31, 2009, respectively)                 103,173       159,946
Trading securities                                      2,550         2,410
Federal Reserve and Federal Home Loan Bank stock       29,928        35,979
Loans and leases                                    3,621,367     3,645,398
Less allowance for loan and lease losses               71,875        66,550
                                                ============= =============
  Net loans and leases                              3,549,492     3,578,848
Premises and equipment, net                            66,602        66,221
Goodwill                                              114,842       114,938
Intangible assets, net                                 18,288        20,590
Bank owned life insurance                              74,428        74,751
Other assets                                          101,791       106,424
                                                ------------- -------------
TOTAL ASSETS                                    $   5,481,992 $   5,464,026
                                                ============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
  Demand (noninterest bearing)                  $     825,022 $     789,989
  Savings, NOW, and money market                    2,409,661     2,269,779
  Time                                                967,938     1,033,278
                                                ------------- -------------
    Total deposits                                  4,202,621     4,093,046
Short-term borrowings                                 166,464       155,977
Long-term debt                                        429,468       554,698
Trust preferred debentures                             75,422        75,422
Other liabilities                                      73,766        79,760
                                                ------------- -------------
  Total liabilities                                 4,947,741     4,958,903
Total stockholders' equity                            534,251       505,123
                                                ============= =============
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $   5,481,992 $   5,464,026
                                                ============= =============
NBT Bancorp Inc. and Subsidiaries   Three months ended  Nine months ended
Consolidated Statements of Income     September 30,       September 30,
 (unaudited)                          2010      2009      2010      2009
                                    --------- --------- --------- ---------
(in thousands, except per share
 data)
Interest, fee and dividend income:
Loans and leases                    $  53,301 $  54,666 $ 160,496 $ 164,963
Securities available for sale           8,621    11,116    28,223    35,162
Securities held to maturity               908     1,239     3,123     3,682
Other                                     482       615     1,547     1,582
                                    --------- --------- --------- ---------
  Total interest, fee and dividend
   income                              63,312    67,636   193,389   205,389
                                    --------- --------- --------- ---------
Interest expense:
Deposits                                7,174    12,002    23,627    38,964
Short-term borrowings                      91       142       338       413
Long-term debt                          4,374     5,761    14,289    17,956
Trust preferred debentures              1,046     1,049     3,106     3,211
                                    --------- --------- --------- ---------
  Total interest expense               12,685    18,954    41,360    60,544
                                    --------- --------- --------- ---------
Net interest income                    50,627    48,682   152,029   144,845
Provision for loan and lease losses     7,529     9,101    23,122    24,751
                                    --------- --------- --------- ---------
Net interest income after provision
 for loan and lease losses             43,098    39,581   128,907   120,094
                                    --------- --------- --------- ---------
Noninterest income:
Trust                                   1,786     1,668     5,461     4,838
Service charges on deposit accounts     5,953     7,110    18,384    20,357
ATM and debit card fees                 2,660     2,443     7,489     6,993
Insurance and other financial
 services revenue                       4,595     4,368    14,540    13,926
Net securities gains                    1,120       129     1,211       146
Bank owned life insurance income          655       683     2,444     2,225
Retirement plan administration fees     2,612     2,412     7,597     6,347
Other                                   1,610     2,037     4,526     5,453
                                    --------- --------- --------- ---------
  Total noninterest income             20,991    20,850    61,652    60,285
                                    --------- --------- --------- ---------
Noninterest expense:
Salaries and employee benefits         24,090    21,272    70,518    62,646
Office supplies and postage             1,542     1,426     4,538     4,385
Occupancy                               3,709     3,481    11,527    11,256
Equipment                               2,053     1,997     6,194     6,024
Professional fees and outside
 services                               2,068     2,691     6,543     7,820
Data processing and communications      2,971     3,305     9,454     9,924
Amortization of intangible assets         767       827     2,328     2,465
Loan collection and other real
 estate owned                             548       755     2,275     2,177
FDIC expenses                           1,621     1,535     4,734     7,096
Prepayment penalty on long-term
 debt                                   1,205         -     1,205         -
Other operating                         4,110     3,743    11,725    11,483
                                    --------- --------- --------- ---------
  Total noninterest expense            44,684    41,032   131,041   125,276
                                    --------- --------- --------- ---------
Income before income taxes             19,405    19,399    59,518    55,103
Income taxes                            4,835     5,821    16,548    16,893
                                    --------- --------- --------- ---------
  Net income                        $  14,570 $  13,578 $  42,970 $  38,210
                                    --------- --------- --------- ---------
Earnings Per Share:
    Basic                           $    0.42 $    0.40 $    1.25 $    1.14
    Diluted                         $    0.42 $    0.40 $    1.25 $    1.13
                                    ========= ========= ========= =========
NBT Bancorp Inc. and
 Subsidiaries
Quarterly Consolidated
 Statements of Income         3Q        2Q        1Q         4Q       3Q
 (unaudited)                 2010      2010      2010      2009      2009
                           --------  --------  --------  --------  --------
(in thousands, except per
 share data)
Interest, fee and dividend
 income:
Loans and leases           $ 53,301  $ 53,503  $ 53,692  $ 55,361  $ 54,666
Securities available for
 sale                         8,621     9,556    10,046    10,810    11,116
Securities held to
 maturity                       908     1,078     1,137     1,212     1,239
Other                           482       469       596       621       615
                           --------  --------  --------  --------  --------
  Total interest, fee and
   dividend income           63,312    64,606    65,471    68,004    67,636
                           --------  --------  --------  --------  --------
Interest expense:
Deposits                      7,174     7,999     8,454     9,532    12,002
Short-term borrowings            91       123       124       139       142
Long-term debt                4,374     4,850     5,065     5,673     5,761
Trust preferred debentures    1,046     1,033     1,027     1,036     1,049
                           --------  --------  --------  --------  --------
  Total interest expense     12,685    14,005    14,670    16,380    18,954
                           --------  --------  --------  --------  --------
Net interest income          50,627    50,601    50,801    51,624    48,682
Provision for loan and
 lease losses                 7,529     6,350     9,243     8,641     9,101
                           --------  --------  --------  --------  --------
Net interest income after
 provision for loan and
 lease losses                43,098    44,251    41,558    42,983    39,581
                           --------  --------  --------  --------  --------
Noninterest income:
Trust                         1,786     1,909     1,766     1,881     1,668
Service charges on deposit
 accounts                     5,953     6,301     6,130     6,808     7,110
ATM and debit card fees       2,660     2,462     2,367     2,346     2,443
Insurance and other
 financial services
 revenue                      4,595     4,700     5,245     3,799     4,368
Net securities
 gains/(losses)               1,120        63        28        (2)      129
Bank owned life insurance
 income                         655       808       981       910       683
Retirement plan
 administration fees          2,612     2,595     2,390     2,739     2,412
Other                         1,610     1,482     1,434     1,365     2,037
                           --------  --------  --------  --------  --------
  Total noninterest income   20,991    20,320    20,341    19,846    20,850
                           --------  --------  --------  --------  --------
Noninterest expense:
Salaries and employee
 benefits                    24,090    24,224    22,204    22,919    21,272
Office supplies and
 postage                      1,542     1,454     1,542     1,472     1,426
Occupancy                     3,709     3,666     4,152     3,608     3,481
Equipment                     2,053     2,041     2,100     2,115     1,997
Professional fees and
 outside services             2,068     2,191     2,284     2,688     2,691
Data processing and
 communications               2,971     3,265     3,218     3,314     3,305
Amortization of intangible
 assets                         767       780       781       781       827
Loan collection and other
 real estate owned              548       668     1,059       589       755
FDIC expenses                 1,621     1,560     1,553     1,312     1,535
Prepayment penalty on
 long-term debt               1,205         -         -         -         -
Other operating               4,110     4,348     3,267     6,492     3,743
                           --------  --------  --------  --------  --------
  Total noninterest expense  44,684    44,197    42,160    45,290    41,032
                           --------  --------  --------  --------  --------
Income before income taxes   19,405    20,374    19,739    17,539    19,399
Income taxes                  4,835     5,950     5,763     3,738     5,821
                           --------  --------  --------  --------  --------
  Net income               $ 14,570  $ 14,424  $ 13,976  $ 13,801  $ 13,578
                           ========  ========  ========  ========  ========
Earnings per share:
  Basic                    $   0.42  $   0.42  $   0.41  $   0.40  $   0.40
  Diluted                  $   0.42  $   0.42  $   0.41  $   0.40  $   0.40
                           ========  ========  ========  ========  ========
Three months ended September 30,
                                   2010                       2009
(dollars in            Average            Yield/  Average            Yield/
 thousands)            Balance   Interest Rates   Balance   Interest Rates
                      ---------- -------- -----  ---------- -------- -----
ASSETS
Short-term interest
 bearing accounts     $  132,734 $     77  0.23% $   99,501 $     74  0.30%
Securities available
 for sale (1)
 (excluding unrealized
 gains or losses)      1,052,985    9,258  3.49%  1,082,655   11,859  4.35%
Securities held to
 maturity (1)            111,140    1,364  4.87%    161,915    1,871  4.58%
Investment in FRB and
 FHLB Banks               30,638      405  5.23%     37,372      541  5.74%
Loans and leases (2)   3,631,637   53,506  5.85%  3,627,803   54,857  6.00%
                      ---------- --------        ---------- --------
  Total interest
   earning assets     $4,959,134 $ 64,610  5.17% $5,009,246 $ 69,202  5.48%
                                 --------                   --------
Other assets             437,542                    406,128
                      ----------                 ----------
Total assets          $5,396,676                 $5,415,374
                      ----------                 ----------
LIABILITIES AND
 STOCKHOLDERS' EQUITY
Money market deposit
 accounts             $1,078,771    1,445  0.53% $1,025,345 $  3,317  1.28%
NOW deposit accounts     665,893      616  0.37%    582,307      694  0.47%
Savings deposits         564,847      217  0.15%    509,258      217  0.17%
Time deposits            972,049    4,896  2.00%  1,199,101    7,774  2.57%
                      ---------- --------        ---------- --------
  Total interest
   bearing deposits   $3,281,560 $  7,174  0.87% $3,316,011 $ 12,002  1.44%
Short-term borrowings    159,480       91  0.23%    132,459      142  0.43%
Trust preferred
 debentures               75,422    1,046  5.50%     75,422    1,049  5.52%
Long-term debt           444,681    4,374  3.90%    585,416    5,761  3.90%
                      ---------- --------        ---------- --------
  Total interest
   bearing
   liabilities        $3,961,143 $ 12,685  1.27% $4,109,308 $ 18,954  1.83%
                                 --------                   --------
Demand deposits          827,358                    737,064
Other liabilities         77,590                     79,862
Stockholders' equity     530,585                    489,140
                      ----------                 ----------
Total liabilities and
 stockholders' equity $5,396,676                 $5,415,374
                      ----------                 ----------
  Net interest
   income (FTE)                    51,925                     50,248
                                 --------                   --------
Interest rate spread                       3.90%                      3.64%
Net interest margin                        4.15%                      3.98%
Taxable equivalent
 adjustment                         1,298                      1,566
                                 --------                   --------
Net interest income              $ 50,627                   $ 48,682
(1) Securities are shown at average amortized cost
(2) For purposes of these computations, nonaccrual loans are included in
    the average loan balances outstanding
Nine months ended September 30,
                                   2010                       2009
(dollars in            Average            Yield/  Average            Yield/
 thousands)            Balance   Interest Rates   Balance   Interest Rates
                      ---------- -------- -----  ---------- -------- -----
ASSETS
Short-term interest
 bearing accounts     $  121,211 $    219  0.24% $   76,523 $    150  0.26%
Securities available
 for sale (1)
 (excluding unrealized
 gains or losses)      1,085,171   30,326  3.74%  1,085,746   37,399  4.61%
Securities held to
 maturity (1)            138,339    4,702  4.54%    146,350    5,553  5.07%
Investment in FRB and
 FHLB Banks               32,840    1,329  5.40%     38,143    1,432  5.02%
Loans and leases (2)   3,637,532  161,097  5.92%  3,646,437  165,578  6.07%
                      ---------- --------        ---------- --------
 Total interest
  earning assets      $5,015,093 $197,673  5.27% $4,993,199 $210,112  5.63%
                                 --------                   --------
Other assets             440,752                    412,132
                      ----------                 ----------
Total assets          $5,455,845                 $5,405,331
                      ----------                 ----------
LIABILITIES AND
 STOCKHOLDERS' EQUITY
Money market deposit
 accounts             $1,100,904    5,085  0.62% $  995,233 $  9,806  1.32%
NOW deposit accounts     692,178    2,207  0.43%    571,478    2,328  0.54%
Savings deposits         551,662      623  0.15%    497,040      631  0.17%
Time deposits            998,257   15,712  2.10%  1,272,893   26,199  2.75%
                      ---------- --------        ---------- --------
  Total interest
   bearing deposits   $3,343,001 $ 23,627  0.94% $3,336,644 $ 38,964  1.56%
Short-term borrowings    156,248      338  0.29%    133,668      413  0.41%
Trust preferred
 debentures               75,422    3,106  5.51%     75,422    3,211  5.69%
Long-term debt           490,622   14,289  3.89%    608,408   17,956  3.95%
                      ---------- --------        ---------- --------
  Total interest
   bearing
   liabilities        $4,065,293 $ 41,360  1.36% $4,154,142 $ 60,544  1.95%
                                 --------                   --------
Demand deposits          789,160                    708,513
Other liabilities         79,531                     73,440
Stockholders' equity     521,861                    469,236
                      ----------                 ----------
Total liabilities and
 stockholders' equity $5,455,845                 $5,405,331
                      ----------                 ----------
  Net interest income
   (FTE)                          156,313                    149,568
                                 --------                   --------
Interest rate spread                       3.91%                      3.68%
Net interest margin                        4.17%                      4.00%
Taxable equivalent
 adjustment                         4,284                      4,723
                                 --------                   --------
Net interest income              $152,029                   $144,845
(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)
                                               September 30,  December 31,
(In thousands)                                     2010           2009
                                               -------------  -------------
Residential real estate mortgages              $     558,875  $     622,898
Commercial                                           597,809        581,870
Commercial real estate mortgages                     815,349        718,235
Real estate construction and development              50,979         76,721
Agricultural and agricultural real estate
 mortgages                                           114,673        122,466
Consumer                                             860,405        856,956
Home equity                                          586,873        603,585
Lease financing                                       36,404         62,667
                                               -------------  -------------
  Total loans and leases                       $   3,621,367  $   3,645,398
                                               =============  =============

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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