SOURCE: NBT Bancorp Inc.

January 28, 2008 18:11 ET

NBT Bancorp Inc. Announces Annual Earnings of $50.3 Million; Declares Cash Dividend; Authorizes Buyback of an Additional 1,000,000 Shares

NORWICH, NY--(Marketwire - January 28, 2008) - NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today that net income for the year ended December 31, 2007 was $50.3 million, down $5.6 million, or 10.0%, from net income of $55.9 million reported in 2006. Net income per diluted share for the year ended December 31, 2007 was $1.51 per share, compared with $1.64 per share for 2006. Return on average assets and return on average equity were 0.98% and 12.60%, respectively, for the year ended December 31, 2007, compared with 1.14% and 14.47%, respectively, for 2006. The decrease in net income for the year ended December 31, 2007 was primarily the result of a $20.7 million increase in the provision for loan and lease losses from the prior year, due to increases in nonperforming loans and charge-offs. The increase in the provision for loan and lease losses was partially offset by an $11.1 million, or 22.8%, increase in noninterest income for the year ended December 31, 2007 as compared to December 31, 2006. In addition, net interest income for the year ended December 31, 2007 was $165.0 million, up $1.2 million or 0.7% from net interest income of $163.8 million reported for the same period in 2006.

Net income for the three months ended December 31, 2007 was $9.0 million, down $4.7 million, or 34.2%, from net income of $13.6 million reported for the same period in 2006. Net income per diluted share for the three months ended December 31, 2007 was $0.28 per share, compared with $0.40 per share for the same period in 2006. Return on average assets and return on average equity were 0.69% and 9.06%, respectively, for the three months ended December 31, 2007, compared with 1.07% and 13.31%, respectively, for the same period in 2006. The decrease in net income for the three months ended December 31, 2007 was primarily the result of a $10.0 million increase in the provision for loan and lease losses compared to the same period in 2006. The increase in the provision for loan and lease losses was partially offset by a $4.2 million, or 33.7%, increase in noninterest income for the three months ended December 31, 2007 as compared to the three months ended December 31, 2006.

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

NBT President and CEO Martin A. Dietrich said, "The financial services industry as a whole was faced with challenging market conditions and credit-quality issues in 2007. While the dollar amount of NBT's nonperforming loans in the fourth quarter was similar to that of the third quarter, the potential number of problem loans in our portfolio decreased 9% from the third quarter and is now consistent with levels from the first half of 2007. We remain confident that our conservative credit approach and disciplined underwriting practices are effective. With the exception of the increase in the provision for loan and lease losses already discussed, I am pleased with the results achieved in other core areas of our business. These results include a 16% increase in noninterest income, cost controls in the form of a reduction in noninterest expenses, stable net interest income due to an increase in earning assets and the expansion of our footprint through four new branches in key growth markets. While 2008 will be another challenging year for our industry, we will continue to position ourselves for future success and strive to deliver value to our shareholders and customers."

Loan and Lease Quality and Provision for Loan and Lease Losses

Nonperforming loans at December 31, 2007 were $30.6 million or 0.88% of total loans and leases compared with $30.7 million or 0.90% at September 30, 2007, and $15.3 million or 0.45% of total loans and leases at December 31, 2006. The increase in 2007 was primarily due to the addition of one owner-occupied commercial real estate relationship and several dairy credits during the second quarter. The Company recorded a provision for loan and lease losses of $13.4 million during the fourth quarter of 2007 compared with $3.5 million for the fourth quarter of 2006. As previously disclosed, within the $13.4 million of provision for loan and lease losses during the fourth quarter was approximately $8.6 million related to one large commercial loan. During the quarter, $6.0 million of the loan was charged off. As also previously disclosed, this loan was current as of September 30, 2007, but subsequently became past due 30 days for the first time, and was being closely monitored.

Net charge-offs totaled $14.1 million and $3.5 million during the fourth quarters of 2007 and 2006, and $26.5 million and $8.7 million for the years ended December 31, 2007 and 2006, respectively. Net charge-offs to average loans and leases for the year ended December 31, 2007, were 0.77%, compared with 0.26% for the year ended December 31, 2006. The Company's allowance for loan and lease losses was 1.57% of loans and leases at December 31, 2007, compared with 1.48% at December 31, 2006.

For the three months and twelve months ended December 31, 2007, the provision for loan and lease losses totaled $13.4 million and $30.1 million, respectively, compared with $3.5 million and $9.4 million for the same periods in 2006. The increase in the provision is primarily due to the increase in nonperforming loans and charge-offs as previously mentioned.

Net Interest Income

Net interest income was up 0.7% to $165.0 million for the year ended December 31, 2007, compared with $163.8 million for the same period a year ago. Despite a decrease in the Company's fully taxable equivalent (FTE) net interest margin, from 3.70% for 2006, to 3.61% for 2007, the Company experienced a slight increase in net interest income that was attributable to 3.7% growth in average earning assets. The Company's net interest margin was 3.61% for the quarter ended December 31, 2007, down from 3.63% for the same period in 2006. Despite this decrease, net interest income for the quarter ended December 31, 2007, increased 1.0%, to $41.9 million, from $41.4 million in the same period for 2006, which was attributable to a 1.7% growth in average earning assets.

Noninterest Income

Noninterest income for the year ended December 31, 2007 was $59.7 million, up $11.1 million or 22.8% from $48.6 million for the same period in 2006. The increase in noninterest income was due primarily to an increase in fees from service charges on deposit accounts and ATM and debit cards, which collectively increased $6.3 million as the company focused on enhancing fee income through various initiatives. In addition, trust administration income increased $0.9 million for the year ended December 31, 2007, compared with the same period in 2006. This increase stems from market appreciation of existing accounts and an increase in customer accounts resulting from successful business development. Retirement plan administration fees for the year ended December 31, 2007, increased $0.8 million, compared with the same period in 2006, as a result of our growing client base. Net securities gains for the year ended December 31, 2007, were $2.1 million compared with net securities losses of $0.9 million for the same period in 2006. Excluding the effect of these securities transactions, noninterest income increased $8.1 million, or 16.3%, for the year ended December 31, 2007, compared with the same period in 2006.

Noninterest income for the three months ended December 31, 2007 was $16.5 million, up $4.2 million or 33.7% from $12.3 million for the same period in 2006. The increase in noninterest income was due primarily to an increase in fees from service charges on deposit accounts and ATM and debit cards, which collectively increased $3.0 million as the company focused on enhancing fee income through various initiatives. In addition, trust administration income increased $0.2 million for the three months ended December 31, 2007, compared with the same period in 2006. This increase stems from market appreciation of existing accounts and an increase in customer accounts resulting from successful business development. Net securities gains for the three months ended December 31, 2007, were $0.6 million compared with nominal net securities gains for the same period in 2006. Excluding the effect of these securities transactions, noninterest income increased $3.6 million, or 29.1%, for the three months ended December 31, 2007, compared with the same period in 2006.

Noninterest Expense and Income Tax Expense

Noninterest expense for the year ended December 31, 2007 was $122.5 million, down slightly from $123.0 million for the same period in 2006. Office expenses, such as supplies and postage, occupancy, equipment and data processing and communications charges remained consistent at approximately $35.6 million for the years ended December 31, 2007 and December 31, 2006. Salaries and employee benefits decreased $3.4 million, or 5.3%, for the year ended December 31, 2007 compared with the same period in 2006. This decrease was due primarily to a reduction in the amount of incentive compensation paid, number of employees, and pension expenses incurred in 2007. Professional fees and outside services increased $1.4 million for the year ended December 31, 2007, compared with the same period in 2006, due primarily to fees and costs related to the aforementioned noninterest income initiatives. Other operating expense for the year ended December 31, 2007 increased $1.3 million compared with the same period in 2006, primarily due to flood-related insurance recoveries in 2006. Income tax expense for the year ended December 31, 2007 was $21.8 million, down from $24.2 million for the same period in 2006. The effective rate both years ended December 31, 2007 and December 31, 2006 was 30.2%.

Noninterest expense for the three months ended December 31, 2007 was $32.4 million, up from $30.9 million for the same period in 2006. Office expenses, such as supplies and postage, occupancy, equipment and data processing and communications charges increased slightly from $8.7 million for the three months ended December 31, 2006 to $8.8 million for the three months ended December 31, 2007. Salaries and employee benefits for the three months ended December 31, 2007 decreased $0.5 million from the same period in 2006, mainly due to a reduction in the number of employees as well as a reduction in the state unemployment tax rate. Professional fees and services increased $0.8 million for the three months ended December 31, 2007, compared with the same period in 2006, due primarily to fees and costs related to the aforementioned noninterest income initiatives. Other operating expense for the three months ended December 31, 2007 increased $1.1 million compared with the same period in 2006, primarily due to flood-related insurance recoveries in 2006. Income tax expense for the three months ended December 31, 2007 was $3.5 million, down from $5.7 million for the three months ended December 31, 2006. The effective rate for the three months ended December 31, 2007 was 28.1%, down from 29.6% for the same period in 2006. The decrease in the effective tax rate for the three months ended December 31, 2007 versus the same period in 2006 resulted primarily from a change in the amount of interest income from tax-exempt sources relative to taxable income.

Balance Sheet

Total assets were $5.2 billion at December 31, 2007, up $114.2 million from $5.1 billion at December 31, 2006. Loans and leases increased $43.2 million or 1.3% from $3.4 billion at December 31, 2006, to $3.5 billion at December 31, 2007, due in large part to an increase in consumer loans of approximately $107.7 million. The increase in consumer loans for the year ended December 31, 2007 compared with the year ended December 31, 2006 was partially offset by decreases in commercial loans and real estate loans totaling approximately $64.9 million. Total deposits were $3.9 billion at December 31, 2007, up 2.0% from the same period at December 31, 2006, due in large part to a $78.5 million, or 12.7%, increase in money market accounts and a $20.3 million, or 3.1%, increase in demand deposits over 2006. These increases were partially offset by a decrease in savings accounts of approximately $38.1 million, or 7.7%, for the year ended December 31, 2007 compared with the year ended December 31, 2006. Stockholders' equity was $397.3 million, representing total equity to total assets ratio of 7.64% at December 31, 2007, compared with $403.8 million or a total equity to total asset ratio of 7.94% at December 31, 2006.

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, as market conditions warrant in open market and privately negotiated transactions. There are 475,880 shares remaining under previous authorizations, so combined with this new authorization, the total shares available for repurchase is now 1,475,880. Under previously disclosed stock repurchase plans, the Company purchased 2,261,267 shares of its common stock during the twelve-month period ended December 31, 2007, for a total of $49.0 million at an average price of $21.65 per share. There were no stock repurchases during the three months ended December 31, 2007.

Dividend Declared

The NBT Board of Directors declared a first-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on March 15, 2008, to shareholders of record as of March 1, 2008.

Corporate Overview

NBT is a financial holding company headquartered in Norwich, NY, with total assets of $5.2 billion at December 31, 2007. The Company primarily operates through NBT Bank, N.A., a full-service community bank with two divisions, and through two financial services companies. NBT Bank, N.A. has 121 locations, including 82 NBT Bank offices in upstate New York and 39 Pennstar Bank offices in northeastern Pennsylvania. EPIC Advisors, Inc., based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm. Hathaway Insurance Agency, Inc., based in Gloversville, NY, is a full-service insurance agency. More information about NBT and its divisions can be found on the Internet at: www.nbtbancorp.com, www.nbtbank.com, www.pennstarbank.com, www.epic1st.com and www.hathawayagency.com.

Forward-Looking Statements

This news release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of NBT Bancorp and its subsidiaries and on the information available to management at the time that these statements were made. There are a number of factors, many of which are beyond NBT's control, that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which NBT is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than NBT; and (7) adverse changes may occur in the securities markets or with respect to inflation. Forward-looking statements speak only as of the date they are made. Except as required by law, NBT does not undertake to update forward-looking statements to reflect subsequent circumstances or events.

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

                                                        Net       Percent
                            2007          2006        Change      Change
                        ------------  ------------  ----------  ----------
                          (dollars in thousands,
                          except per share data)

Twelve Months Ended
 December 31,
Net Income              $     50,328  $     55,947  ($   5,619)        -10%
Diluted Earnings Per
 Share                  $       1.51  $       1.64  ($    0.13)         -8%
Weighted Average
 Diluted
 Common Shares
 Outstanding              33,421,078    34,206,070    -784,992          -2%
Return on Average
 Assets (1)                     0.98%         1.14%      -0.16%        -14%
Return on Average
 Equity (1)                    12.60%        14.47%      -1.87%        -13%
Net Interest Margin (2)         3.61%         3.70%      -0.09%         -2%
                        ============  ============  ==========  ==========

Three Months Ended
 December 31,
Net Income              $      8,985  $     13,648  ($   4,663)        -34%
Diluted Earnings Per
 Share                  $       0.28  $       0.40  ($    0.12)        -30%
Weighted Average
 Diluted
 Common Shares
 Outstanding              32,398,179    34,402,113  -2,003,934          -6%
Return on Average
 Assets (1)                     0.69%         1.07%      -0.38%        -36%
Return on Average
 Equity (1)                     9.06%        13.31%      -4.25%        -32%
Net Interest Margin (2)         3.61%         3.63%      -0.02%         -1%
                        ============  ============  ==========  ==========

Asset Quality           December 31,  December 31,
                            2007          2006
                        ------------  ------------
Nonaccrual Loans        $     29,697  $     13,665
90 Days Past Due and
 Still Accruing         $        882  $      1,642
Total Nonperforming
 Loans                  $     30,579  $     15,307
Other Real Estate Owned $        560  $        389
Total Nonperforming
 Assets                 $     31,139  $     15,696
Past Due Loans          $     25,914  $     28,409
Allowance for Loan and
 Lease Losses           $     54,183  $     50,587
Year-to-Date (YTD) Net
 Charge-Offs            $     26,498  $      8,673
Allowance for Loan and
 Lease Losses to Total
 Loans and Leases               1.57%         1.48%
Total Nonperforming
 Loans to Total Loans
 and Leases                     0.88%         0.45%
Total Nonperforming
 Assets to Total Assets         0.60%         0.31%
Past Due Loans to Total
 Loans and Leases               0.75%         0.83%
Allowance for Loan and
 Lease Losses to Total
 Nonperforming Loans          177.19%       330.48%
Net Charge-Offs to YTD
 Average Loans and
 Leases                         0.77%         0.26%
                        ============  ============

Capital
Equity to Assets                7.64%         7.94%
Book Value Per Share    $      12.29  $      11.79
Tangible Book Value Per
 Share                  $       8.78  $       8.42
Tier 1 Leverage Ratio           7.14%         7.57%
Tier 1 Capital Ratio            9.85%        10.42%
Total Risk-Based
 Capital Ratio                 11.10%        11.67%
                        ============  ============

Quarterly Common Stock Price
                          2007               2006               2005
Quarter End           High     Low      High      Low     High       Low
                   ------------------ ----------------  -----------------
March 31           $ 25.81   $ 21.73  $ 23.90  $ 21.02  $ 25.66   $ 21.48
June 30            $ 23.45   $ 21.80    23.24    21.03    24.15     20.10
September 30       $ 23.80   $ 17.10    24.57    21.44    25.50     22.79
December 31        $ 25.00   $ 20.58    26.47    22.36    23.79     20.75
                   ------------------ ----------------  -----------------


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




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

                                                           Net     Percent
                                   2007        2006       Change   Change
                                ----------- ----------- ---------  -------
                                (dollars in thousands,
                                except per share data)
Balance Sheet as of December
 31,
Loans and Leases                $ 3,455,851 $ 3,412,654 $  43,197        1%
Earning Assets                  $ 4,783,519 $ 4,712,085 $  71,434        2%
Total Assets                    $ 5,201,776 $ 5,087,572 $ 114,204        2%
Deposits                        $ 3,872,093 $ 3,796,238 $  75,855        2%
Stockholders’ Equity            $   397,300 $   403,817 $  (6,517)      -2%
                                =========== =========== =========  =======

Average Balances
Twelve Months Ended December
 31,
Loans and Leases                $ 3,425,318 $ 3,302,080 $ 123,238        4%
Securities Available For Sale
(excluding unrealized gains or
 losses)                        $ 1,134,837 $ 1,110,405 $  24,432        2%
Securities Held To Maturity     $   144,518 $   115,636 $  28,882       25%
Regulatory Equity Investment    $    34,022 $    39,437 $  (5,415)     -14%
Short-Term Interest Bearing
 Accounts                       $     8,395 $     8,116 $     279        3%
Total Earning Assets            $ 4,747,090 $ 4,575,674 $ 171,416        4%
Total Assets                    $ 5,109,587 $ 4,925,070 $ 184,517        4%
Interest Bearing Deposits       $ 3,273,332 $ 3,054,006 $ 219,326        7%
Non-Interest Bearing Deposits   $   639,423 $   614,055 $  25,368        4%
Short-Term Borrowings           $   280,162 $   331,255 $ (51,093)     -15%
Long-Term Borrowings            $   459,439 $   485,031 $ (25,592)      -5%
Total Interest Bearing
 Liabilities                    $ 4,012,933 $ 3,870,292 $ 142,641        4%
Stockholders’ Equity            $   399,299 $   386,553 $  12,746        3%
                                =========== =========== =========  =======

Average Balances
Quarter Ended December 31,
Loans and Leases                $ 3,441,150 $ 3,394,024 $  47,126        1%
Securities Available For Sale
(excluding unrealized gains or
 losses)                        $ 1,144,639 $ 1,119,271 $  25,368        2%
Securities Held To Maturity     $   143,999 $   136,511 $   7,488        5%
Regulatory Equity Investment    $    35,073 $    36,995 $  (1,922)      -5%
Short-Term Interest Bearing
 Accounts                       $     8,015 $     7,492 $     523        7%
Total Earning Assets            $ 4,772,876 $ 4,694,293 $  78,583        2%
Total Assets                    $ 5,148,099 $ 5,064,116 $  83,983        2%
Interest Bearing Deposits       $ 3,273,248 $ 3,206,084 $  67,164        2%
Non-Interest Bearing Deposits   $   656,784 $   625,301 $  31,483        5%
Short-Term Borrowings           $   282,296 $   294,750 $ (12,454)      -4%
Long-Term Borrowings            $   477,190 $   471,149 $   6,041        1%
Total Interest Bearing
 Liabilities                    $ 4,032,734 $ 3,971,983 $  60,751        2%
Stockholders’ Equity            $   393,333 $   406,771 $ (13,438)      -3%
                                =========== =========== =========  =======




NBT Bancorp Inc. and Subsidiaries               December 31,  December 31,
Consolidated Balance Sheets (unaudited)             2007          2006
                                                ------------- -------------
(in thousands)

ASSETS
Cash and due from banks                         $     155,495 $     130,936
Short term interest bearing accounts                    7,451         7,857
Securities available for sale, at fair value        1,140,114     1,106,322
Securities held to maturity (fair value of
 $149,519 and $136,287 at December 31, 2007
 and December 31, 2006)                               149,111       136,314
Federal Reserve and Federal Home Loan Bank
 stock                                                 38,102        38,812
Loans and leases                                    3,455,851     3,412,654
Less allowance for loan and lease losses               54,183        50,587
                                                ============= =============
    Net loans and leases                            3,401,668     3,362,067
Premises and equipment, net                            64,042        66,982
Goodwill                                              103,398       103,356
Intangible assets, net                                 10,173        11,984
Bank owned life insurance                              43,614        41,783
Other assets                                           88,608        81,159
                                                ------------- -------------
TOTAL ASSETS                                    $   5,201,776 $   5,087,572
                                                ============= =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
  Demand (noninterest bearing)                  $     666,698 $     646,377
  Savings, NOW, and money market                    1,614,289     1,566,557
  Time                                              1,591,106     1,583,304
                                                ------------- -------------
    Total deposits                                  3,872,093     3,796,238
Short-term borrowings                                 368,467       345,408
Long-term debt                                        424,887       417,728
Trust preferred debentures                             75,422        75,422
Other liabilities                                      63,607        48,959
                                                ------------- -------------
    Total liabilities                               4,804,476     4,683,755


Total stockholders' equity                            397,300       403,817
                                                ============= =============

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $   5,201,776 $   5,087,572
                                                ============= =============




NBT Bancorp Inc. and              Three months ended  Twelve months ended
 Subsidiaries                        December 31,         December 31,
Consolidated Statements of
 Income (unaudited)                  2007       2006      2007      2006
                                  --------- --------- ---------- ---------
(in thousands, except per share
 data)
Interest, fee and dividend
 income:
Loans and leases                  $  60,817 $  60,795 $  242,497 $ 230,042
Securities available for sale        13,971    13,296     54,847    51,599
Securities held to maturity           1,458     1,409      5,898     4,730
Other                                   736       517      2,875     2,471
                                  --------- --------- ---------- ---------
  Total interest, fee and
   dividend income                   76,982    76,017    306,117   288,842
                                  --------- --------- ---------- ---------
Interest expense:
Deposits                             26,578    25,652    106,574    87,798
Short-term borrowings                 3,048     3,572     12,943    15,448
Long-term debt                        4,233     4,091     16,486    17,063
Trust preferred debentures            1,270     1,277      5,087     4,700
                                  --------- --------- ---------- ---------
  Total interest expense             35,129    34,592    141,090   125,009
                                  --------- --------- ---------- ---------
Net interest income                  41,853    41,425    165,027   163,833
Provision for loan and lease
 losses                              13,440     3,484     30,094     9,395
                                  --------- --------- ---------- ---------
Net interest income after
 provision for loan and lease
 losses                              28,413    37,941    134,933   154,438
                                  --------- --------- ---------- ---------
Noninterest income:
Trust                                 1,584     1,387      6,514     5,629
Service charges on deposit
 accounts                             7,142     4,418     22,742    17,590
ATM and debit card fees               2,089     1,764      8,185     7,086
Broker/dealer and insurance
 revenue                              1,052     1,037      4,255     3,936
Net securities gains (losses)           613        30      2,113      (875)
Bank owned life insurance income        480       425      1,831     1,629
Retirement plan administration
 fees                                 1,557     1,424      6,336     5,536
Other                                 1,973     1,847      7,723     8,098
                                  --------- --------- ---------- ---------
  Total noninterest income           16,490    12,332     59,699    48,629
                                  --------- --------- ---------- ---------
Noninterest expense:
Salaries and employee benefits       14,654    15,166     59,516    62,877
Office supplies and postage           1,136     1,418      5,120     5,330
Occupancy                             2,948     2,739     11,630    11,518
Equipment                             1,855     2,069      7,422     8,332
Professional fees and outside
 services                             3,295     2,502      9,135     7,761
Data processing and
 communications                       2,899     2,466     11,400    10,454
Amortization of intangible assets       413       389      1,645     1,649
Loan collection and other real
 estate owned                           597       629      1,633     1,351
Other operating                       4,607     3,504     15,016    13,694
                                  --------- --------- ---------- ---------
  Total noninterest expense          32,404    30,882    122,517   122,966
                                  --------- --------- ---------- ---------
Income before income taxes           12,499    19,391     72,115    80,101
Income taxes                          3,514     5,743     21,787    24,154
                                  --------- --------- ---------- ---------
   Net income                     $   8,985 $  13,648 $   50,328 $  55,947
                                  --------- --------- ---------- ---------
Earnings Per Share:
     Basic                        $    0.28 $    0.40 $     1.52 $    1.65
     Diluted                      $    0.28 $    0.40 $     1.51 $    1.64
                                  ========= ========= ========== =========



NBT Bancorp Inc. and
 Subsidiaries
Quarterly Consolidated
 Statements of Income        4Q        3Q        2Q        1Q        4Q
 (unaudited)                2007      2007      2007      2007      2006
                          --------- --------- --------- --------  ---------
(in thousands, except per
 share data)
Interest, fee and
 dividend income:
Loans and leases          $  60,817 $  61,183 $  60,689 $ 59,808  $  60,795
Securities available for
 sale                        13,971    13,847    13,562   13,467     13,296
Securities held to
 maturity                     1,458     1,471     1,525    1,444      1,409
Other                           736       680       719      740        517
                          --------- --------- --------- --------  ---------
  Total interest, fee and
   dividend income           76,982    77,181    76,495   75,459     76,017
                          --------- --------- --------- --------  ---------
Interest expense:
Deposits                     26,578    27,062    26,950   25,984     25,652
Short-term borrowings         3,048     3,885     2,918    3,092      3,572
Long-term debt                4,233     3,770     3,997    4,486      4,091
Trust preferred
 debentures                   1,270     1,277     1,272    1,268      1,277
                          --------- --------- --------- --------  ---------
  Total interest expense     35,129    35,994    35,137   34,830     34,592
                          --------- --------- --------- --------  ---------
Net interest income          41,853    41,187    41,358   40,629     41,425
Provision for loan and
 lease losses                13,440     4,788     9,770    2,096      3,484
                          --------- --------- --------- --------  ---------
Net interest income after
 provision for loan and
 lease losses                28,413    36,399    31,588   38,533     37,941
                          --------- --------- --------- --------  ---------
Noninterest income:
Trust                         1,584     1,701     1,792    1,437      1,387
Service charges on
 deposit accounts             7,142     6,195     4,936    4,469      4,418
ATM and debit card fees       2,089     2,159     2,041    1,896      1,764
Broker/dealer and
 insurance fees               1,052     1,027     1,093    1,083      1,037
Net securities gains
 (losses)                       613     1,484        21       (5)        30
Bank owned life insurance
 income                         480       467       450      434        425
Retirement plan
 administration fees          1,557     1,586     1,601    1,592      1,424
Other                         1,973     1,908     2,058    1,784      1,847
                          --------- --------- --------- --------  ---------
  Total noninterest
   income                    16,490    16,527    13,992   12,690     12,332
                          --------- --------- --------- --------  ---------
Noninterest expense:
Salaries and employee
 benefits                    14,654    15,876    13,022   15,964     15,166
Office supplies and
 postage                      1,136     1,354     1,334    1,296      1,418
Occupancy                     2,948     2,928     2,585    3,169      2,739
Equipment                     1,855     1,797     1,837    1,933      2,069
Professional fees and
 outside services             3,295     2,256     1,926    1,658      2,502
Data processing and
 communications               2,899     2,779     2,845    2,877      2,466
Amortization of
 intangible assets              413       413       410      409        389
Loan collection and other
 real estate owned              597       431       228      377        629
Other operating               4,607     3,393     3,827    3,189      3,504
                          --------- --------- --------- --------  ---------
  Total noninterest
   expense                   32,404    31,227    28,014   30,872     30,882
                          --------- --------- --------- --------  ---------
Income before income
 taxes                       12,499    21,699    17,566   20,351     19,391
Income taxes                  3,514     6,552     5,502    6,219      5,743
                          --------- --------- --------- --------  ---------
   Net income             $   8,985 $  15,147 $  12,064 $ 14,132  $  13,648
                          ========= ========= ========= ========  =========
Earnings per share:
     Basic                $    0.28 $    0.46 $    0.36 $   0.41  $    0.40
     Diluted              $    0.28 $    0.46 $    0.36 $   0.41  $    0.40
                          ========= ========= ========= ========  =========

Contact Information

  • Contact:
    Martin A. Dietrich
    CEO
    Michael J. Chewens
    CFO

    NBT Bancorp Inc.
    52 South Broad Street
    Norwich, NY 13815
    607-337-6119