SOURCE: NBT Bancorp Inc.

October 26, 2009 18:24 ET

NBT Bancorp Inc. Announces Third Quarter Earnings of $0.40 per Share; Declares Cash Dividend

NORWICH, NY--(Marketwire - October 26, 2009) - NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today net income per diluted share for the three months ended September 30, 2009 of $0.40 per share, as compared with $0.46 per share for the three months ended September 30, 2008. Annualized return on average assets and return on average equity were 0.99% and 11.01%, respectively, for the three months ended September 30, 2009, compared with 1.13% and 14.58%, respectively, for the three months ended September 30, 2008. Net income for the three months ended September 30, 2009 was $13.6 million, down $1.5 million, or 10.0%, from $15.1 million for the third quarter last year.

Net income per diluted share for the nine months ended September 30, 2009 was $1.13 per share, as compared with $1.34 per share for the nine months ended September 30, 2008. Annualized return on average assets and return on average equity were 0.95% and 10.89%, respectively, for the nine months ended September 30, 2009, compared with 1.11% and 14.26%, respectively, for the nine months ended September 30, 2008. Net income for the nine months ended September 30, 2009 was $38.2 million, down $5.2 million, or 12.1%, from the nine months ended September 30, 2008.

For the three months ended September 30, 2009, FDIC expenses increased $0.9 million over the three months ended September 30, 2008. For the nine months ended September 30, 2009, FDIC expenses increased $6.1 million over the nine months ended September 30, 2008, including the special assessment of approximately $2.5 million. The FDIC premium increases and special assessment had a $0.02 and $0.13 effect on diluted earnings per share for the three months ended September 30, 2009 and for the nine months ended September 30, 2009, respectively. For the three months ended September 30, 2009, pension expenses increased $0.7 million over the three months ended September 30, 2008. For the nine months ended September 30, 2009, pension expenses increased $2.2 million over the nine months ended September 30, 2008. The pension expense increases had a $0.01 and $0.04 effect on diluted earnings per share for the three months ended September 30, 2009 and for the nine months ended September 30, 2009, respectively.

NBT President and CEO Martin Dietrich said: "I am pleased with our performance through the first three quarters of 2009. Our overall earnings are at a level similar to our record year in 2008, except for increased FDIC and pension expenses. Like all FDIC-insured institutions, our results have been affected by significantly higher FDIC premiums. Despite these higher premiums, we have been able to maintain a strong net interest margin, control our expenses and keep a watchful eye on asset quality. Our focus on these fundamentals is helping to maintain the overall strength of our balance sheet. Our ongoing efforts to grow noninterest income have been bolstered in part by the impact of our acquisition of the Mang Insurance Agency, LLC."

Loan and Lease Quality and Provision for Loan and Lease Losses

Nonperforming loans at September 30, 2009 were $39.2 million or 1.08% of total loans and leases compared with $40.2 million or 1.10% at June 30, 2009, and $26.5 million or 0.73% at December 31, 2008. The increase in nonperforming loans at September 30, 2009 as compared with December 31, 2008 was primarily the result of an increase in nonaccrual loans, due mostly to three commercial credits and four agricultural credits which were identified as potential problem loans in prior quarters as well as an increase in retail nonaccruals. The three commercial credits consist of a community center, a physical therapy office and a real estate holding company. The allowance for loan and lease losses totaled $64.7 million at September 30, 2009, $62.7 million at June 30, 2009, and $58.6 million at December 31, 2008. The increase from December 31, 2008 was mostly due to an increase in specific reserves on two of the aforementioned commercial credits and two of the aforementioned agricultural credits, in addition to increased reserve levels on certain types of consumer loans. These specific reserves, along with worsening economic conditions, also contributed to the increase in the Company's allowance for loan and lease losses as a percentage of loans, which was 1.79% of loans and leases at September 30, 2009, 1.72% at June 30, 2009, and 1.60% at December 31, 2008. Past due loans as a percentage of total loans increased to 1.00% at September 30, 2009, as compared with 0.81% at June 30, 2009 and 0.91% at December 31, 2008.

The Company recorded a provision for loan and lease losses of $9.1 million during the third quarter of 2009 compared with $9.2 million during the second quarter of 2009, and $7.2 million during the third quarter of 2008. The increase in the provision for loan and lease losses for the three months ended September 30, 2009 as compared with the three months ended September 30, 2008 was due primarily to an increase in net charge-offs which totaled $7.2 million for the three month period ending September 30, 2009, up from $5.9 million for the three months ending September 30, 2008, due primarily to a charge-off related to one large agricultural loan during the third quarter of 2009. Net charge-offs to average loans and leases for the three months ended September 30, 2009 were 0.79%, compared with 0.65% for the three months ended September 30, 2008.

The Company recorded a provision for loan and lease losses of $24.8 million during the nine months ended September 30, 2009 compared with $19.5 million during the nine months ended September 30, 2008. The increase in the provision for loan and lease losses for the nine months ended September 30, 2009 was due primarily to the aforementioned charge-off and an increase in specific reserves on certain impaired loans, along with worsening economic conditions. Net charge-offs totaled $18.7 million for the nine month period ending September 30, 2009, up from $17.8 million for the nine months ending September 30, 2008. Net charge-offs to average loans and leases for the nine months ended September 30, 2009 were 0.68%, compared with 0.67% for the nine months ended September 30, 2008.

Net Interest Income

Net interest income was up 3.5% to $48.7 million for the three months ended September 30, 2009 compared with $47.0 million for the three months ended September 30, 2008. The Company's fully taxable equivalent (FTE) net interest margin was 3.98% for the three months ended September 30, 2009, as compared with 3.94% for the three months ended September 30, 2008. In addition, the Company experienced a 1.9% growth in average earning assets for the three months ending September 30, 2009 as compared with the three months ending September 30, 2008, due primarily to increases in average loans and leases and average short-term interest bearing accounts. As a result of our excess liquidity, our Federal Funds sold position had a negative impact of 9 bp on our net interest margin for the three months ended September 30, 2009.

Although the yield on interest earning assets decreased 61 basis points, the yield on interest bearing liabilities declined 74 basis points, which contributed to the increase in the net interest margin for the three months ended September 30, 2009 compared to the same period for 2008. The yield on time deposits was 2.57% for the three months ended September 30, 2009, as compared with 3.47% for the three months ended September 30, 2008. The yield on money market deposit accounts was 1.28% for the three months ended September 30, 2009, as compared with 1.83% for the three months ended September 30, 2008. The yield on short term borrowings declined 154 basis points for the three months ended September 30, 2009 as compared to the three months ended September 30, 2008 as a result of the 175 basis point drop in the Fed Funds Target Rate from 2.00% at September 30, 2008 to 0.25% at September 30, 2009.

Net interest income was up 5.6% to $144.8 million for the nine months ended September 30, 2009 compared with $137.1 million for the nine months ended September 30, 2008. The Company's fully taxable equivalent (FTE) net interest margin was 4.00% for the nine months ended September 30, 2009, as compared with 3.91% for the nine months ended September 30, 2008. In addition, the Company experienced a 2.8% growth in average earning assets for the nine months ending September 30, 2009 as compared with the nine months ending September 30, 2008, due primarily to increases in average loans and leases and short term interest bearing accounts. As a result of our excess liquidity, our Federal Funds sold position had a negative impact of 7 bp on our net interest margin for the nine months ended September 30, 2009.

Although the yield on interest earning assets decreased 59 basis points, the yield on interest bearing liabilities declined 80 basis points, which contributed to the increase in the net interest margin for the nine months ended September 30, 2009 compared to the same period for 2008. The yield on time deposits was 2.75% for the nine months ended September 30, 2009, as compared with 3.80% for the nine months ended September 30, 2008. The yield on money market deposit accounts was 1.32% for the nine months ended September 30, 2009, as compared with 1.95% for the nine months ended September 30, 2008. The yield on short term borrowings declined 209 basis points for the nine months ended September 30, 2009 as compared to the nine months ended September 30, 2008 as a result of the aforementioned drop in the Fed Funds Target Rate.

Noninterest Income

Noninterest income for the three months ended September 30, 2009 was $20.9 million, up $1.9 million or 10.0% from $19.0 million for the same period in 2008. The increase in noninterest income was due primarily to an increase in insurance and broker/dealer revenue, which increased approximately $2.0 million for the three month period ended September 30, 2009 as compared with the three month period ended September 30, 2008. This increase was due primarily to revenue generated by Mang Insurance Agency, LLC, which was acquired on September 1, 2008. In addition, retirement plan administration fees increased approximately $1.0 million for the three month period ended September 30, 2009 as compared with the three month period ended September 30, 2008 as a result of organic growth from new business. These increases were partially offset by a decrease in net securities gains of approximately $1.4 million for the three months ended September 30, 2009 as compared with the three months ended September 30, 2008.

Noninterest income for the nine months ended September 30, 2009 was $60.3 million, up $8.8 million or 17.1% from $51.5 million for the same period in 2008. The increase in noninterest income was due primarily to an increase in insurance and broker/dealer revenue, which increased approximately $9.1 million for the nine month period ended September 30, 2009 as compared with the nine month period ended September 30, 2008. This increase was due primarily to revenue generated by Mang Insurance Agency, LLC as previously mentioned. In addition, retirement plan administration fees increased approximately $1.5 million for the nine month period ended September 30, 2009 as compared with the nine month period ended September 30, 2008 as a result of organic growth from new business. These increases were partially offset by a decrease in net securities gains of approximately $1.4 million for the nine months ended September 30, 2009 as compared with the nine months ended September 30, 2008.

Noninterest Expense and Income Tax Expense

Noninterest expense for the three months ended September 30, 2009 was $41.0 million, up from $37.1 million for the same period in 2008. FDIC expenses increased approximately $0.9 million for the three months ended September 30, 2009, compared with the same period in 2008 due to recurring FDIC premiums, which increased to $1.5 million for the three months ended September 30, 2009 as compared with $0.6 million for the same period last year. Salaries and employee benefits increased $4.4 million, or 26.2%, for the three months ended September 30, 2009 compared with the same period in 2008. This increase was due primarily to increases in full-time-equivalent employees during 2009, largely due to the aforementioned acquisition and de novo branch activity. In addition, the Company experienced an increase of approximately $0.7 million in pension expenses for the three months ended September 30, 2009 as compared with the same period in 2008. Amortization of intangible assets was $0.8 million for the three months ended September 30, 2009, up from $0.5 million for same period in 2008 due to the aforementioned acquisition. In addition, professional fees and outside services expenses increased approximately $0.5 million, or 22.0%, for the three months ended September 30, 2009 as compared with the three months ended September 30, 2008. This increase was due primarily to non-recurring systems consulting services. These increases were partially offset by an impairment on lease residual assets incurred during the third quarter of 2008 totaling $2.0 million. The increases were also partially offset by a decrease in other operating expenses. For the three month period ended September 30, 2009, other operating expenses totaled $3.7 million, down $1.0 million or 20.0%, from $4.7 million for the three months ended September 30, 2008. This decrease resulted primarily from a decrease in losses incurred from sales of certain returned lease vehicles totaling approximately $0.9 million during the third quarter of 2008, due to reduced values of the vehicles. Income tax expense for the three month period ended September 30, 2009 was $5.8 million, down from $6.7 million for the same period in 2008. The effective rates were 30.0% and 30.7% for the three month periods ended September 30, 2009 and 2008, respectively.

Noninterest expense for the nine months ended September 30, 2009 was $125.3 million, up from $106.5 million for the same period in 2008. FDIC expenses increased approximately $6.1 million for the nine months ended September 30, 2009, compared with the same period in 2008. This increase was due to the special assessment imposed by the FDIC totaling approximately $2.5 million during the second quarter of 2009, in addition to increased recurring FDIC premiums. Salaries and employee benefits increased $12.1 million, or 24.0%, for the nine months ended September 30, 2009 compared with the same period in 2008. This increase was due primarily to increases in full-time-equivalent employees during 2009, largely due to the aforementioned acquisition and de novo branch activity. In addition, the Company experienced increases of approximately $2.2 million and $0.9 million in pension and medical expenses, respectively, for the nine months ended September 30, 2009 as compared with the same period in 2008. Amortization of intangible assets was $2.5 million for the nine months ended September 30, 2009, up from $1.2 million for same period in 2008 due to the aforementioned acquisition. Occupancy expenses were up approximately $0.9 million for the nine months ended September 30, 2009 as compared with the nine months ended September 30, 2008. This increase was due primarily to the aforementioned acquisition and de novo branch activity during the period. Income tax expense for the nine month period ended September 30, 2009 was $16.9 million, down from $19.2 million for the same period in 2008. The effective rates were 30.7% and 30.6% for the nine month periods ended September 30, 2009 and 2008, respectively.

Balance Sheet

Total assets were $5.5 billion at September 30, 2009, up $148.3 million or 2.8% from $5.3 billion at December 31, 2008. Loans and leases were $3.6 billion at September 30, 2009 and December 31, 2008. The Company experienced a shift from residential real estate mortgages, which decreased by approximately $84.7 million, or 11.7%, from December 31, 2008 to September 30, 2009, to consumer loans, which increased by approximately $75.6 million, or 9.5%, from December 31, 2008 to September 30, 2009. Total deposits were $4.1 billion at September 30, 2009, up $181.2 million or 4.6% from December 31, 2008. The increase from December 31, 2008 was due in large part to a $318.9 million, or 16.9%, increase in NOW, savings and money market accounts, partially offset by a $196.6 million decrease in time deposits. Stockholders' equity was $497.5 million, representing a total equity-to-total assets ratio of 9.07% at September 30, 2009, compared with $431.8 million or a total equity-to-total assets ratio of 8.09% at December 31, 2008. The increase in stockholders' equity was due in large part to the Company completing a public offering of 1,576,230 shares of its common stock on April 1, 2009 and raising approximately $33.5 million in net proceeds.

Stock Repurchase Program

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 January 1, 2010, as market conditions warrant in open market and privately negotiated transactions. The plan expires on December 31, 2011. At September 30, 2009, there were 1,000,000 shares available for repurchase under a previously announced stock repurchase plan. This plan was authorized on January 28, 2008 in the amount of 1,000,000 shares and expires on December 31, 2009. The Company made no purchases of its common stock securities during the nine months ended September 30, 2009.

Dividend Declared

The NBT Board of Directors declared a 2009 fourth-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on December 15, 2009, to shareholders of record as of December 1, 2009.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $5.5 billion at September 30, 2009. 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 84 NBT Bank offices in upstate New York, 38 Pennstar Bank offices in northeastern Pennsylvania and a regional 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
                    2009           2008           Change         Change
                -------------  -------------  -------------  -------------
                   (dollars in thousands,
                   except per share data)

Three Months
 Ended
 September 30,
Net Income      $      13,578  $      15,083  $      (1,505)           -10%
Diluted
 Earnings Per
 Share          $        0.40  $        0.46  $       (0.06)           -13%
Weighted
 Average
 Diluted
 Common Shares
 Outstanding       34,342,125     32,453,307      1,888,818              6%
Return on
 Average Assets
 (1)                     0.99%          1.13%         -0.14%           -12%
Return on
 Average Equity
 (1)                    11.01%         14.58%         -3.57%           -24%
Net Interest
 Margin (2)              3.98%          3.94%          0.04%             1%
                =============  =============  =============  =============

Nine Months
 Ended
 September 30,
Net Income      $      38,210  $      43,456  $      (5,246)           -12%
Diluted
 Earnings Per
 Share          $        1.13  $        1.34  $       (0.21)           -16%
Weighted
 Average
 Diluted
 Common Shares
 Outstanding       33,780,769     32,315,744      1,465,025              5%
Return on
 Average Assets          0.95%          1.11%         -0.16%           -14%
Return on
 Average Equity         10.89%         14.26%         -3.37%           -24%
Net Interest
 Margin (2)              4.00%          3.91%          0.09%             2%
                =============  =============  =============  =============


Asset Quality   September 30,    June 30,     December 31,
                    2009           2009           2008
                -------------  -------------  -------------
Nonaccrual
 Loans          $      35,614  $      37,646  $      24,191
90 Days Past
 Due and Still
 Accruing       $       3,543  $       2,529  $       2,305
Total
 Nonperforming
 Loans          $      39,157  $      40,175  $      26,496
Other Real
 Estate Owned   $       3,319  $       1,688  $         665
Total
 Nonperforming
 Assets         $      42,476  $      41,863  $      27,161
Past Due Loans  $      36,252  $      29,545  $      33,098
Allowance for
 Loan and Lease
 Losses         $      64,650  $      62,734  $      58,564
Year-to-Date
 (YTD) Net
 Charge-Offs    $      18,665  $      11,480  $      22,800
Allowance for
 Loan and Lease
 Losses to
 Total Loans
 and Leases              1.79%          1.72%          1.60%
Total
 Nonperforming
 Loans to Total
 Loans and
 Leases                  1.08%          1.10%          0.73%
Total
 Nonperforming
 Assets to
 Total Assets            0.77%          0.77%          0.51%
Past Due Loans
 to Total Loans
 and Leases              1.00%          0.81%          0.91%
Allowance for
 Loan and Lease
 Losses to
 Total
 Nonperforming
 Loans                 165.10%        156.15%        221.03%
Net Charge-Offs
 to YTD Average
 Loans and
 Leases                  0.68%          0.63%          0.64%
                =============  =============  =============

Capital
Equity to
 Assets                  9.07%          8.09%
Book Value Per
 Share          $       14.49  $       13.24
Tangible Book
 Value Per
 Share          $       10.52  $        9.01
Tier 1 Leverage
 Ratio                   8.30%          7.17%
Tier 1 Capital
 Ratio                  11.20%          9.75%
Total
 Risk-Based
 Capital Ratio          12.46%         11.00%
                =============  =============

Quarterly
 Common Stock
 Price               2009           2008           2007
Quarter End      High    Low    High    Low    High    Low
                ------ ------  ------ ------  ------ ------
March 31        $28.37 $15.42  $23.65 $17.95  $25.81 $21.73
June 30         $25.22 $20.49   25.00  20.33   23.45  21.80
September 30    $24.16 $20.57   36.47  19.05   23.80  17.10
December 31                     30.83  21.71   25.00  20.58

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





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

                    September 30, December 31,      Net         Percent
                        2009          2008         Change        Change
                    ------------- ------------- ------------  ------------
                      (dollars in thousands,
                      except per share data)
Balance Sheet
Loans and Leases    $   3,615,890 $   3,651,911 $    (36,021)           -1%
Earning Assets      $   5,036,086 $   4,933,099 $    102,987             2%
Total Assets        $   5,484,387 $   5,336,088 $    148,299             3%
Deposits            $   4,104,473 $   3,923,258 $    181,215             5%
Stockholders'
 Equity             $     497,542 $     431,845 $     65,697            15%
                    ============= ============= ============  ============

                        2009          2008
                    ------------- -------------
                      (dollars in thousands,
                      except per share data)
Average Balances
Three Months Ended
 September 30,
Loans and Leases    $   3,627,803 $   3,605,700 $     22,103             1%
Securities
 Available For Sale
(excluding
 unrealized gains
 or losses)         $   1,082,655 $   1,116,089 $    (33,434)           -3%
Securities Held To
 Maturity           $     161,915 $     148,397 $     13,518             9%
Trading Securities  $       2,109 $       2,266 $       (157)           -7%
Regulatory Equity
 Investment         $      37,372 $      40,401 $     (3,029)           -7%
Short-Term Interest
 Bearing Accounts   $      99,501 $       4,077 $     95,424          2341%
Total Earning
 Assets             $   5,009,246 $   4,914,664 $     94,582             2%
Total Assets        $   5,415,374 $   5,301,640 $    113,734             2%
Interest Bearing
 Deposits           $   3,316,011 $   3,258,301 $     57,710             2%
Non-Interest
 Bearing Deposits   $     737,064 $     706,803 $     30,261             4%
Short-Term
 Borrowings         $     132,459 $     154,567 $    (22,108)          -14%
Long-Term
 Borrowings         $     660,838 $     701,155 $    (40,317)           -6%
Total Interest
 Bearing
 Liabilities        $   4,109,308 $   4,114,023 $     (4,715)            0%
Stockholders'
 Equity             $     489,140 $     411,459 $     77,681            19%
                    ============= ============= ============  ============

Average Balances
Nine Months Ended
 September 30,
Loans and Leases    $   3,646,437 $   3,544,787 $    101,650             3%
Securities
 Available For Sale
(excluding
 unrealized gains
 or losses)         $   1,085,746 $   1,112,582 $    (26,836)           -2%
Securities Held To
 Maturity           $     146,350 $     153,010 $     (6,660)           -4%
Trading Securities  $       1,801 $       2,388 $       (587)          -25%
Regulatory Equity
 Investment         $      38,143 $      39,730 $     (1,587)           -4%
Short-Term Interest
 Bearing Accounts   $      76,523 $       6,517 $     70,006          1074%
Total Earning
 Assets             $   4,993,199 $   4,856,626 $    136,573             3%
Total Assets        $   5,405,331 $   5,236,130 $    169,201             3%
Interest Bearing
 Deposits           $   3,336,644 $   3,229,338 $    107,306             3%
Non-Interest
 Bearing Deposits   $     708,513 $     678,277 $     30,236             4%
Short-Term
 Borrowings         $     133,668 $     238,200 $   (104,532)          -44%
Long-Term
 Borrowings         $     683,830 $     615,383 $     68,447            11%
Total Interest
 Bearing
 Liabilities        $   4,154,142 $   4,082,921 $     71,221             2%
Stockholders'
 Equity             $     469,236 $     407,127 $     62,109            15%
                    ============= ============= ============  ============





NBT Bancorp Inc. and Subsidiaries               September 30, December 31,
Consolidated Balance Sheets (unaudited)             2009          2008
                                                ------------- -------------
(in thousands)

ASSETS
Cash and due from banks                         $     127,001 $     107,409
Short term interest bearing accounts                  118,224         2,987
Securities available for sale, at fair value        1,132,423     1,119,665
Securities held to maturity (fair value of
 $170,851 and $141,308 at September 30, 2009
 and December 31, 2008, respectively)                 168,658       140,209
Trading securities                                      2,263         1,407
Federal Reserve and Federal Home Loan Bank
 stock                                                 37,103        39,045
Loans and leases                                    3,615,890     3,651,911
Less allowance for loan and lease losses               64,650        58,564
                                                ============= =============
  Net loans and leases                              3,551,240     3,593,347
Premises and equipment, net                            65,652        65,241
Goodwill                                              114,942       114,838
Intangible assets, net                                 21,371        23,367
Bank owned life insurance                              73,430        72,276
Other assets                                           72,080        56,297
                                                ------------- -------------
TOTAL ASSETS                                    $   5,484,387 $   5,336,088
                                                ============= =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
  Demand (noninterest bearing)                  $     744,383 $     685,495
  Savings, NOW, and money market                    2,204,456     1,885,551
  Time                                              1,155,634     1,352,212
                                                ------------- -------------
    Total deposits                                  4,104,473     3,923,258
Short-term borrowings                                 147,792       206,492
Long-term debt                                        579,712       632,209
Trust preferred debentures                             75,422        75,422
Other liabilities                                      79,446        66,862
                                                ------------- -------------
    Total liabilities                               4,986,845     4,904,243


Total stockholders' equity                            497,542       431,845
                                                ============= =============

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $   5,484,387 $   5,336,088
                                                ============= =============






NBT Bancorp Inc. and Subsidiaries   Three months ended   Nine months ended
Consolidated Statements of Income      September 30,       September 30,
 (unaudited)                          2009      2008      2009      2008
                                    --------- --------- --------- ---------
(in thousands, except per share
 data)
Interest, fee and dividend income:
Loans and leases                    $  54,666 $  58,154 $ 164,963 $ 173,991
Securities available for sale          11,116    13,451    35,162    40,614
Securities held to maturity             1,239     1,343     3,682     4,335
Other                                     615       673     1,582     2,187
                                    --------- --------- --------- ---------
  Total interest, fee and dividend
   income                              67,636    73,621   205,389   221,127
                                    --------- --------- --------- ---------
Interest expense:
Deposits                               12,002    18,351    38,964    59,761
Short-term borrowings                     142       763       413     4,465
Long-term debt                          5,761     6,310    17,956    16,241
Trust preferred debentures              1,049     1,154     3,211     3,547
                                    --------- --------- --------- ---------
  Total interest expense               18,954    26,578    60,544    84,014
                                    --------- --------- --------- ---------
Net interest income                    48,682    47,043   144,845   137,113
Provision for loan and lease losses     9,101     7,179    24,751    19,460
                                    --------- --------- --------- ---------
Net interest income after provision
 for loan and lease losses             39,581    39,864   120,094   117,653
                                    --------- --------- --------- ---------
Noninterest income:
Trust                                   1,668     1,720     4,838     5,593
Service charges on deposit accounts     7,110     7,414    20,357    20,877
ATM and debit card fees                 2,443     2,334     6,993     6,656
Insurance and broker/dealer revenue     4,368     2,338    13,926     4,811
Net securities gains                      129     1,510       146     1,543
Bank owned life insurance income          683       923     2,225     2,438
Retirement plan administration fees     2,412     1,461     6,347     4,840
Other                                   2,037     1,262     5,453     4,718
                                    --------- --------- --------- ---------
  Total noninterest income             20,850    18,962    60,285    51,476
                                    --------- --------- --------- ---------
Noninterest expense:
Salaries and employee benefits         21,272    16,850    62,646    50,526
Office supplies and postage             1,426     1,322     4,385     3,992
Occupancy                               3,481     3,359    11,256    10,396
Equipment                               1,997     1,908     6,024     5,595
Professional fees and outside
 services                               2,691     2,205     7,820     7,825
Data processing and communications      3,305     3,155     9,924     9,440
Amortization of intangible assets         827       462     2,465     1,231
Loan collection and other real
 estate owned                             755       505     2,177     1,802
Impairment on lease residual assets         -     2,000         -     2,000
FDIC expenses                           1,535       614     7,096       986
Other operating                         3,743     4,678    11,483    12,722
                                    --------- --------- --------- ---------
  Total noninterest expense            41,032    37,058   125,276   106,515
                                    --------- --------- --------- ---------
Income before income taxes             19,399    21,768    55,103    62,614
Income taxes                            5,821     6,685    16,893    19,158
                                    --------- --------- --------- ---------
    Net income                      $  13,578 $  15,083 $  38,210 $  43,456
                                    --------- --------- --------- ---------
Earnings Per Share:
      Basic                         $    0.40 $    0.47 $    1.14 $    1.36
      Diluted                       $    0.40 $    0.46 $    1.13 $    1.34
                                    ========= ========= ========= =========





NBT Bancorp Inc. and
 Subsidiaries
Quarterly Consolidated
 Statements of Income        3Q        2Q        1Q        4Q        3Q
 (unaudited)                2009      2009      2009      2008      2008
                          --------- --------- --------- --------  ---------
(in thousands, except per
 share data)
Interest, fee and
 dividend income:
Loans and leases          $  54,666 $  54,886 $  55,411 $ 58,164  $  58,154
Securities available for
 sale                        11,116    11,671    12,375   13,434     13,451
Securities held to
 maturity                     1,239     1,209     1,234    1,253      1,343
Other                           615       606       361      436        673
                          --------- --------- --------- --------  ---------
  Total interest, fee and
   dividend income           67,636    68,372    69,381   73,287     73,621
                          --------- --------- --------- --------  ---------
Interest expense:
Deposits                     12,002    13,123    13,839   16,371     18,351
Short-term borrowings           142       124       147      382        763
Long-term debt                5,761     5,998     6,197    6,401      6,310
Trust preferred
 debentures                   1,049     1,076     1,086    1,200      1,154
                          --------- --------- --------- --------  ---------
  Total interest expense     18,954    20,321    21,269   24,354     26,578
                          --------- --------- --------- --------  ---------
Net interest income          48,682    48,051    48,112   48,933     47,043
Provision for loan and
 lease losses                 9,101     9,199     6,451    7,721      7,179
                          --------- --------- --------- --------  ---------
Net interest income after
 provision for loan and
 lease losses                39,581    38,852    41,661   41,212     39,864
                          --------- --------- --------- --------  ---------
Noninterest income:
Trust                         1,668     1,761     1,409    1,685      1,720
Service charges on
 deposit accounts             7,110     6,950     6,297    7,266      7,414
ATM and debit card fees       2,443     2,368     2,182    2,176      2,334
Insurance and
 broker/dealer revenue        4,368     4,220     5,338    3,915      2,338
Net securities gains
 (losses)                       129        17         -       (8)     1,510
Bank owned life insurance
 income                         683       670       872    2,484        924
Retirement plan
 administration fees          2,412     2,194     1,741    1,468      1,461
Other                         2,037     1,665     1,751    1,244      1,261
                          --------- --------- --------- --------  ---------
  Total noninterest
   income                    20,850    19,845    19,590   20,230     18,962
                          --------- --------- --------- --------  ---------
Noninterest expense:
Salaries and employee
 benefits                    21,272    19,947    21,427   20,633     16,850
Office supplies and
 postage                      1,426     1,429     1,530    1,354      1,322
Occupancy                     3,481     3,610     4,165    3,385      3,359
Equipment                     1,997     2,005     2,022    1,944      1,908
Professional fees and
 outside services             2,691     2,407     2,722    2,651      2,205
Data processing and
 communications               3,305     3,324     3,295    3,254      3,155
Amortization of
 intangible assets              827       825       813      874        462
Loan collection and other
 real estate owned              755       674       748      692        505
Impairment on lease
 residual assets                  -         -         -        -      2,000
FDIC expenses                 1,535     4,032     1,529      827        614
Other operating               3,743     3,686     4,054    4,684      4,678
                          --------- --------- --------- --------  ---------
  Total noninterest
   expense                   41,032    41,939    42,305   40,298     37,058
                          --------- --------- --------- --------  ---------
Income before income
 taxes                       19,399    16,758    18,946   21,144     21,768
Income taxes                  5,821     5,198     5,874    6,247      6,685
                          --------- --------- --------- --------  ---------
    Net income            $  13,578 $  11,560 $  13,072 $ 14,897  $  15,083
                          ========= ========= ========= ========  =========
Earnings per share:
    Basic                 $    0.40 $    0.34 $    0.40 $   0.46  $    0.47
    Diluted               $    0.40 $    0.34 $    0.40 $   0.45  $    0.46
                          ========= ========= ========= ========  =========





  Three months ended September 30,

                                    2009                       2008
(dollars in             Average            Yield/  Average           Yield/
 thousands)             Balance   Interest Rates   Balance   Interest Rates
                      ----------- -------- ----  ----------- -------- ----
ASSETS
Short-term interest
 bearing accounts     $    99,501 $     74 0.30% $     4,077 $     20 1.95%
Securities available
 for sale (1)(excluding
 unrealized gains or
 losses)                1,082,655   11,859 4.35%   1,116,089   14,159 5.05%
Securities held to
 maturity (1)             161,915    1,871 4.58%     148,397    2,026 5.43%
Investment in FRB and
 FHLB Banks                37,372      541 5.74%      40,401      653 6.43%
Loans and leases (2)    3,627,803   54,857 6.00%   3,605,700   58,371 6.44%
                      ----------- --------       ----------- --------
  Total interest
   earning assets       5,009,246 $ 69,202 5.48%   4,914,664 $ 75,229 6.09%
                                  --------                   --------
Trading securities          2,109                      2,266
Other assets          $   404,019                    384,710
                      -----------                -----------
Total assets          $ 5,415,374                $ 5,301,640
                      -----------                -----------

LIABILITIES AND
 STOCKHOLDERS' EQUITY
Money market deposit
 accounts             $ 1,025,345 $  3,317 1.28% $   779,954 $  3,593 1.83%
NOW deposit accounts  $   582,307      694 0.47%     491,673    1,060 0.86%
Savings deposits      $   509,258      217 0.17%     474,602      514 0.43%
Time deposits           1,199,101    7,774 2.57%   1,512,072   13,184 3.47%
                      ----------- --------       ----------- --------
  Total interest
   bearing deposits     3,316,011   12,002 1.44%   3,258,301   18,351 2.24%
Short-term borrowings $   132,459      142 0.42%     154,567      763 1.96%
Trust preferred
 debentures           $    75,422    1,049 5.52%      75,422    1,154 6.09%
Long-term debt        $   585,416    5,761 3.90%     625,733    6,310 4.01%
                      ----------- --------       ----------- --------
  Total interest
   bearing
   liabilities          4,109,308 $ 18,954 1.83%   4,114,023 $ 26,578 2.57%
                                  --------                   --------
Demand deposits       $   737,064                    706,803
Other liabilities     $    79,862                     69,355
Stockholders' equity      489,140                    411,459
                      -----------                -----------
Total liabilities and
 stockholders' equity $ 5,415,374                $ 5,301,640
                      -----------                -----------
  Net interest income
   (FTE)                            50,248                     48,651
                                  --------                   --------
Interest rate spread                       3.64%                      3.52%
Net interest margin                        3.98%                      3.94%
Taxable equivalent
 adjustment                          1,566                      1,608
                                  --------                   --------
Net interest income                 48,682                   $ 47,043

(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,

                                  2009                        2008
(dollars in           Average            Yield/   Average            Yield/
 thousands)           Balance   Interest  Rates   Balance   Interest  Rates
                    ----------- --------- ----  ----------- --------- ----
ASSETS
Short-term interest
 bearing accounts   $    76,523 $     150 0.26% $     6,517 $     145 2.98%
Securities
 available for sale
 (1)(excluding
 unrealized gains
 or losses)           1,085,746    37,399 4.61%   1,112,582    42,689 5.13%
Securities held to
 maturity (1)           146,350     5,553 5.07%     153,010     6,544 5.71%
Investment in FRB
 and FHLB Banks          38,143     1,432 5.02%      39,730     2,042 6.87%
Loans and leases
 (2)                  3,646,437   165,578 6.07%   3,544,787   174,635 6.58%
                    ----------- ---------       ----------- ---------
  Total interest
   earning assets     4,993,199 $ 210,112 5.63%   4,856,626 $ 226,055 6.22%
                                ---------                   ---------
Trading securities        1,801                       2,388
Other assets        $   410,331                     377,116
                    -----------                 -----------
Total assets        $ 5,405,331                 $ 5,236,130
                    -----------                 -----------

LIABILITIES AND
 STOCKHOLDERS'
 EQUITY
Money market
 deposit accounts   $   995,233 $   9,806 1.32% $   736,313 $  10,724 1.95%
NOW deposit
 accounts           $   571,478     2,328 0.54%     464,396     2,943 0.85%
Savings deposits    $   497,040       631 0.17%     469,335     1,780 0.51%
Time deposits         1,272,893    26,199 2.75%   1,559,294    44,314 3.80%
                    ----------- ---------       ----------- ---------
  Total interest
   bearing deposits   3,336,644    38,964 1.56%   3,229,338    59,761 2.47%
Short-term
 borrowings         $   133,668       413 0.41%     238,200     4,465 2.50%
Trust preferred
 debentures         $    75,422     3,211 5.69%      75,422     3,547 6.28%
Long-term debt      $   608,408    17,956 3.95%     539,961    16,241 4.02%
                    ----------- ---------       ----------- ---------
  Total interest
   bearing
   liabilities        4,154,142 $  60,544 1.95%   4,082,921 $  84,014 2.75%
                                ---------                   ---------
Demand deposits     $   708,513                     678,277
Other liabilities   $    73,440                      67,805
Stockholders'
 equity                 469,236                     407,127
                    -----------                 -----------
Total liabilities
 and stockholders'
 equity             $ 5,405,331                 $ 5,236,130
                    -----------                 -----------
  Net interest
   income (FTE)                   149,568                     142,041
                                ---------                   ---------
Interest rate
 spread                                   3.67%                       3.47%
Net interest margin                       4.00%                       3.91%
Taxable equivalent
 adjustment                         4,723                       4,928
                                ---------                   ---------
Net interest income             $ 144,845                   $ 137,113

(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)                                      2009          2008
                                                ------------- -------------
Residential real estate mortgages               $     638,001 $     722,723
Commercial                                            545,001       572,059
Commercial real estate mortgages                      683,623       669,720
Real estate construction and development               77,391        67,859
Agricultural and agricultural real estate
 mortgages                                            122,691       113,566
Consumer                                              870,766       795,123
Home equity                                           609,571       627,603
Lease financing                                        68,846        83,258
                                                ------------- -------------
  Total loans and leases                        $   3,615,890 $   3,651,911
                                                ============= =============

Contact Information

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