ex99_1.htm

NORWICH, NY (July 28, 2008) – NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today that net income per diluted share for the three months ended June 30, 2008 was $0.45 per share, up $0.09, or 25.0%, from $0.36 per share for the three months ended June 30, 2007. Return on average assets and return on average equity were 1.12% and 14.49%, respectively, for the three months ended June 30, 2008, compared with 0.95% and 11.90%, respectively, for the three months ended June 30, 2007. Net income for the three months ended June 30, 2008 was $14.7 million, up $2.6 million, or 21.5%, from the three months ended June 30, 2007. The increase in net income for the three months ended June 30, 2008 compared with the three months ended June 30, 2007 was primarily the result of an increase in net interest income, an increase in noninterest income, and a decrease in the provision for loan and lease losses, partially offset by an increase in noninterest expense.

Net income per diluted share for the six months ended June 30, 2008 was $0.88 per share, up $0.11, or 14.3%, from $0.77 per share for the six months ended June 30, 2007. Return on average assets and return on average equity were 1.10% and 14.09%, respectively, for the six months ended June 30, 2008, compared with 1.04% and 12.98%, respectively, for the six months ended June 30, 2007. Net income for the six months ended June 30, 2008 was $28.4 million, up $2.2 million, or 8.3%, from the six months ended June 30, 2007. The increase in net income for the six months ended June 30, 2008 compared with the six months ended June 30, 2007 was primarily the result of increases in net interest income and noninterest income, partially offset by an increase in noninterest expense.

NBT President and CEO Martin A. Dietrich said: “We are very pleased with our earnings through the first six months of 2008. Even though the economy is creating unique challenges for the banking industry, we were able to post record earnings per share through the first half of this year. We continue to see growth in noninterest income, which was up 17.3% for the second quarter of 2008, compared with the second quarter of 2007, primarily due to our continued focus on fee initiatives and other areas of noninterest income. Our net interest margin continues to climb despite the difficult rate environment. Our net interest margin was 3.94% for the second quarter of 2008, up from 3.84% for the first quarter of 2008 and up from 3.63% for the second quarter of 2007. This increase, coupled with the continued growth in our earning assets, has resulted in a 4.4% increase in net interest income over the first quarter of 2008 and in an 11.2% increase over the second quarter of 2007. In addition, we maintain capital levels in excess of regulatory standards for “well-capitalized” institutions. As of June 30, 2008, NBT’s ratio of core capital to tangible assets stands at 7.23%, while the applicable regulatory standard to be determined as “well-capitalized” is 5%. We have also seen improvement in our asset quality. Our delinquency ratio improved to 0.68% for the period ending June 30, 2008, compared with 0.85% for the period ending June 30, 2007. Solid operating results from all areas of the bank have contributed to our strong first half performance.”

Nonperforming loans at June 30, 2008 were $22.8 million or 0.63% of total loans and leases compared with $30.4 million or 0.87% at March 31, 2008, and $34.4 million or 1.00% at June 30, 2007. The decrease in nonperforming loans at June 30, 2008 was primarily the result of $7.8 million in net charge-offs during the second quarter related primarily to one large commercial loan, which had been previously identified and reserved for in 2007. The allowance for loan and lease losses totaled $54.5 million at June 30, 2008, as compared with $56.5 million at March 31, 2008, and $57.1 million at June 30, 2007.

The Company recorded a provision for loan and lease losses of $5.8 million during the second quarter of 2008 compared with $6.5 million and $9.8 million for the three months ending March 31, 2008 and June 30, 2007, respectively. Net charge-offs totaled $7.8 million for the three month period ending June 30, 2008, up from $4.2 million for the three months ending March 31, 2008, and up from $3.3 million for the three months ended June 30, 2007. The decrease in the provision for loan and lease losses for the three months ended June 30, 2008 was due primarily to improvement in nonperforming and classified loans. The increase in net charge-offs for the three months ended June 30, 2008 was due primarily to a charge-off related to one large commercial loan, which had been previously identified and reserved for in 2007. Net charge-offs to average loans and leases for the three months ended June 30, 2008 were 0.88%, compared with 0.48% for the three months ended March 31, 2008 and 0.38% for the three months ended June 30, 2007. The Company’s allowance for loan and lease losses was 1.51% of loans and leases at June 30, 2008, compared with 1.61% at March 31, 2008 and 1.66% at June 30, 2007.

The Company recorded a provision for loan and lease losses of $12.3 million during the six months ended June 30, 2008 as compared with $11.9 million for the six months ended June 30, 2007. Net charge-offs totaled $12.0 million for the six months ended June 30, 2008, up from $5.4 million for the same period a year ago. The increase in net charge-offs for the six months ended June 30, 2008 was due primarily to additional charge-offs in the first and second quarters of 2008 related to one large commercial loan, which had been previously identified and reserved for in 2007. Net charge-offs to average loans and leases for the six months ended June 30, 2008 were 0.68%, compared with 0.32% for the six months ended June 30, 2007.

Net interest income was up 11.2% to $46.0 million for the three months ended June 30, 2008 compared with $41.4 million for the three months ended June 30, 2007. The Company’s fully taxable equivalent (FTE) net interest margin increased from 3.63% for the three months ended June 30, 2007 to 3.94% for the three months ended June 30, 2008. In addition, the Company experienced a 2.7% growth in average earning assets for the three months ending June 30, 2008 as compared to the three months ending June 30, 2007, due primarily to an increase in average loans and leases. Although the yield on interest earning assets decreased 44 basis points, the yield on interest bearing liabilities declined 88 basis points, which contributed to the increase in the net interest margin for the three months ended June 30, 2008 compared to the same period for 2007. The yield on money market deposit accounts declined from 3.44% for the three months ended June 30, 2007 to 1.65% for the three months ended June 30, 2008, while the yield on time deposits decreased 85 basis points for the same period. The yield on short term borrowings declined 255 basis points for the three months ended June 30, 2008 as compared to the three months ended June 30, 2007 as a result of the 325 basis points drop in the Fed Funds Target Rate from 5.25% at June 30, 2007 to 2.00% at June 30, 2008.

Net interest income was up 9.9% to $90.1 million for the six months ended June 30, 2008 compared with $82.0 million for the six months ended June 30, 2007. The Company’s FTE net interest margin increased from 3.63% for the six months ended June 30, 2007 to 3.89% for the six months ended June 30, 2008. In addition, the Company experienced a 2.2% growth in average earning assets for the six months ending June 30, 2008 as compared to the six months ending June 30, 2007 due primarily to an increase in average loans and leases. Although the yield on interest earning assets decreased 34 basis points, the yield on interest bearing liabilities declined 69 basis points, which contributed to the increase in the net interest margin from the six months ended June 30, 2007. The yield on money market deposit accounts declined from 3.44% for the six months ended June 30, 2007 to 2.01% for the six months ended June 30, 2008, while the yield on time deposits decreased 58 basis points for the same period. The yield on short term borrowings declined 205 basis points for the six months ended June 30, 2008 as compared to the six months ended June 30, 2007 as a result of the 325 basis points drop in the Fed Funds Target Rate from 5.25% at June 30, 2007 to 2.00% at June 30, 2008.

Noninterest income for the three months ended June 30, 2008 was $16.4 million, up $2.4 million or 17.3% from $14.0 million for the same period in 2007. The increase in noninterest income was due primarily to an increase in fees from service charges on deposit accounts and ATM and debit cards, which collectively increased $2.2 million as the Company continued to focus on enhancing fee income through various initiatives. In addition, trust administration income increased $0.3 million for the three month period ended June 30, 2008, compared with the same period in 2007. This increase stems primarily from an increase in customer accounts resulting from successful business development. Broker/dealer and insurance revenue increased approximately $0.3 million for the three month period ended June 30, 2008 as we expanded our sales force and increased the number of accounts being serviced. Other noninterest income decreased $0.4 million for the three month period ended June 30, 2008, compared with the same period in 2007. Net securities gains for the three month periods ended June 30, 2008 and 2007 were nominal and had no significant effect on noninterest income.

Noninterest income for the six months ended June 30, 2008 was $32.5 million, up $5.8 million or 21.9% from $26.7 million for the same period in 2007. 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 $4.4 million as the Company focused on enhancing fee income through various initiatives. In addition, trust administration income increased $0.6 million for the six month period ended June 30, 2008, compared with the same period in 2007. This increase stems primarily from an increase in customer accounts resulting from successful business development. Broker/dealer and insurance revenue increased approximately $0.3 million for the six month period ended June 30, 2008 as we expanded our sales force and increased the number of accounts being serviced. Net securities gains for the six month periods ended June 30, 2008 and 2007 were nominal and had no significant effect on noninterest income.

Noninterest expense for the three months ended June 30, 2008 was $35.4 million, up from $28.0 million for the same period in 2007. Office expenses, such as supplies and postage, occupancy, equipment and data processing and communications charges were $9.7 million for the three months ended June 30, 2008, up $1.1 million, or 13.2%, from $8.6 million for the three months ended June 30, 2007. This increase was due primarily to an increase in expenses related to the five new branches the Company has opened within the past eight months. Salaries and employee benefits increased $3.9 million, or 29.8%, for the three months ended June 30, 2008 compared with the same period in 2007. This increase was due primarily to increases in full time employees during 2008 and reduced levels of incentive compensation in 2007. Professional fees and outside services increased $0.6 million for the three month period ended June 30, 2008, compared with the same period in 2007, due primarily to fees and costs related to the aforementioned noninterest income initiatives. Other operating expenses were $5.2 million for the three months ended June 30, 2008, up $1.4 million or 34.6%, from $3.8 million for the three months ended June 30, 2008. This increase was primarily due to increases in advertising expenses. Income tax expense for the three month period ended June 30, 2008 was $6.5 million, up from $5.5 million for the same period in 2007. The effective rates were 30.9% and 31.3% for the three month periods ended June 30, 2008 and 2007, respectively.

Noninterest expense for the six months ended June 30, 2008 was $69.5 million, up from $58.9 million for the same period in 2007. Office expenses, such as supplies and postage, occupancy, equipment and data processing and communications charges were $19.7 million for the six months ended June 30, 2008, up $1.8 million, or 10.1%, from $17.9 million for the six months ended June 30, 2007. This increase was due primarily to an increase in expenses related to the aforementioned branch openings. Salaries and employee benefits increased $4.7 million, or 16.2%, for the six months ended June 30, 2008 compared with the same period in 2007. This increase was due primarily to increases in full time employees during 2008 and reduced levels of incentive compensation in 2007. Professional fees and outside services increased $2.0 million for the six month period ended June 30, 2008, compared with the same period in 2007, due primarily to fees and costs related to the aforementioned noninterest income initiatives. Other operating expenses were $8.4 million for the six months ended June 30, 2008, up $1.4 million or 20.0%, from $7.0 million for the six months ended June 30, 2008. This increase was primarily due to increases in advertising expenses. Income tax expense for the six month period ended June 30, 2008 was $12.5 million, up from $11.7 million for the same period in 2007. The effective rates were 30.5% and 30.9% for the six month periods ended June 30, 2008 and 2007, respectively.

Total assets were $5.3 billion at June 30, 2008, up $107.7 million or 2.1% from $5.2 billion at December 31, 2007, and up $187.9 million or 3.7% from $5.1 billion at June 30, 2007. Loans and leases were $3.6 billion at June 30, 2008, up $147.0 million or 4.3% from $3.5 billion at December 31, 2007, and up $170.6 million or 5.0% from $3.4 billion at June 30, 2007. The increase in loans and leases at June 30, 2008 as compared to December 31, 2007 and June 30, 2007 was due in large part to an increase in consumer loans of approximately $113.6 million and $150.4 million, respectively. Total deposits were $3.9 billion at June 30, 2008, up $67.0 million or 1.7% from December 31, 2007, and down $20.1 million or 0.5% from June 30, 2007. The increase from December 31, 2007 was due in large part to a $33.6 million, or 5.0%, increase in demand deposits and a $29.4 million, or 1.8%, increase in savings, NOW, and money market accounts. Stockholders’ equity was $403.9 million, representing a total equity to total assets ratio of 7.61% at June 30, 2008, compared with $397.3 million or a total equity to total assets ratio of 7.64% at December 31, 2007, and $390.9 million or a total equity to total assets ratio of 7.63% at June 30, 2007.

NBT is a financial holding company headquartered in Norwich, NY, with total assets of $5.3 billion at June 30, 2008. 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 124 locations, including 85 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. As filed on Form 8-K on July 9, 2008, NBT Bancorp Inc. signed a definitive agreement to acquire Mang Insurance Agency on July 3, 2008 and the acquisition is expected to close in the third quarter of 2008. 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.

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
	2008			2007			Change			Change
	(dollars in thousands, except per share data)

Three Months Ended June 30,
Net Income	$	14,657		$	12,064		$	2,593			21	%
Diluted Earnings Per Share	$	0.45		$	0.36		$	0.09			25	%
Weighted Average Diluted
Common Shares Outstanding		32,241,642			33,936,096			-1,694,454			-5	%
Return on Average Assets (1)		1.12	%		0.95	%		0.17	%		18	%
Return on Average Equity (1)		14.49	%		11.90	%		2.59	%		22	%
Net Interest Margin (2)		3.94	%		3.63	%		0.31	%		9	%

Six Months Ended June 30,
Net Income	$	28,373		$	26,196		$	2,177			8	%
Diluted Earnings Per Share	$	0.88		$	0.77		$	0.11			14	%
Weighted Average Diluted
Common Shares Outstanding		32,246,644			34,195,110			-1,948,466			-6	%
Return on Average Assets (1)		1.10	%		1.04	%		0.06	%		6	%
Return on Average Equity (1)		14.09	%		12.98	%		1.11	%		9	%
Net Interest Margin (2)		3.89	%		3.63	%		0.26	%		7	%

Asset Quality	June 30,			December 31,			June 30,
	2008			2007			2007
Nonaccrual Loans	$	22,039		$	29,697		$	33,730
90 Days Past Due and Still Accruing	$	717		$	882		$	689
Total Nonperforming Loans	$	22,756		$	30,579		$	34,419
Other Real Estate Owned	$	1,140		$	560		$	981
Total Nonperforming Assets	$	23,896		$	31,139		$	35,400
Past Due Loans	$	24,484		$	25,914		$	29,332
Allowance for Loan and Lease Losses	$	54,510		$	54,183		$	57,058
Year-to-Date (YTD) Net Charge-Offs	$	11,954		$	26,498		$	5,395
Allowance for Loan and Lease Losses to Total Loans and Leases		1.51	%		1.57	%		1.66	%
Total Nonperforming Loans to Total Loans and Leases		0.63	%		0.88	%		1.00	%
Total Nonperforming Assets to Total Assets		0.45	%		0.60	%		0.69	%
Past Due Loans to Total Loans and Leases		0.68	%		0.75	%		0.85	%
Allowance for Loan and Lease Losses to Total Nonperforming Loans		239.54	%		177.19	%		165.77	%
Net Charge-Offs to YTD Average Loans and Leases		0.68	%		0.77	%		0.32	%

Capital
Equity to Assets		7.61	%		7.64	%		7.63	%
Book Value Per Share	$	12.56		$	12.29		$	11.72
Tangible Book Value Per Share	$	9.05		$	8.78		$	8.29
Tier 1 Leverage Ratio		7.23	%		7.14	%		7.37	%
Tier 1 Capital Ratio		9.67	%		9.85	%		10.21	%
Total Risk-Based Capital Ratio		10.92	%		11.10	%		11.46	%

	2008		2007		Net Change			Percent Change
	(dollars in thousands, except per share data)
Balance Sheet as of June 30,
Loans and Leases	$	3,602,895	$	3,432,300	$	170,595			5	%
Earning Assets	$	4,898,448	$	4,756,527	$	141,921			3	%
Total Assets	$	5,309,500	$	5,121,634	$	187,866			4	%
Deposits	$	3,939,113	$	3,959,166	$	(20,053	)		-1	%
Stockholders’ Equity	$	403,872	$	390,934	$	12,938			3	%

Average Balances
Three Months Ended June 30,
Loans and Leases	$	3,561,632	$	3,423,130	$	138,502			4	%
Securities Available For Sale (excluding unrealized gains or losses)	$	1,101,362	$	1,128,973	$	(27,611	)		-2	%
Securities Held To Maturity	$	157,822	$	148,467	$	9,355			6	%
Regulatory Equity Investment	$	41,274	$	32,576	$	8,698			27	%
Short-Term Interest Bearing Accounts	$	7,100	$	8,618	$	(1,518	)		-18	%
Total Earning Assets	$	4,869,190	$	4,741,764	$	127,426			3	%
Total Assets	$	5,241,686	$	5,098,649	$	143,037			3	%
Interest Bearing Deposits	$	3,196,393	$	3,307,241	$	(110,848	)		-3	%
Non-Interest Bearing Deposits	$	668,299	$	627,172	$	41,127			7	%
Short-Term Borrowings	$	257,376	$	250,112	$	7,264			3	%
Long-Term Borrowings	$	643,758	$	449,464	$	194,294			43	%
Total Interest Bearing Liabilities	$	4,097,527	$	4,006,817	$	90,710			2	%
Stockholders’ Equity	$	406,709	$	406,741	$	(32	)		0	%

Average Balances
Six Months Ended June 30,
Loans and Leases	$	3,513,996	$	3,410,928	$	103,068			3	%
Securities Available For Sale (excluding unrealized gains or losses)	$	1,110,809	$	1,126,209	$	(15,400	)		-1	%
Securities Held To Maturity	$	155,341	$	144,683	$	10,658			7	%
Regulatory Equity Investment	$	39,391	$	33,684	$	5,707			17	%
Short-Term Interest Bearing Accounts	$	7,750	$	8,934	$	(1,184	)		-13	%
Total Earning Assets	$	4,827,287	$	4,724,438	$	102,849			2	%
Total Assets	$	5,203,015	$	5,083,653	$	119,362			2	%
Interest Bearing Deposits	$	3,214,697	$	3,276,368	$	(61,671	)		-2	%
Non-Interest Bearing Deposits	$	663,858	$	622,083	$	41,775			7	%
Short-Term Borrowings	$	280,476	$	257,687	$	22,789			9	%
Long-Term Borrowings	$	572,026	$	465,655	$	106,371			23	%
Total Interest Bearing Liabilities	$	4,067,199	$	3,999,710	$	67,489			2	%
Stockholders’ Equity	$	404,937	$	407,128	$	(2,191	)		-1	%

NBT Bancorp Inc. and Subsidiaries	June 30,		December 31,		June 30,
Consolidated Balance Sheets (unaudited)	2008		2007		2007
(in thousands)

ASSETS
Cash and due from banks	$	145,635	$	155,495	$	134,058
Short term interest bearing accounts		1,782		7,451		7,252
Securities available for sale, at fair value		1,104,491		1,132,230		1,109,543
Securities held to maturity (fair value of $148,952, $149,519 and $146,944 at June 30, 2008, December 31, 2007 and June 30, 2007, respectively)		148,656		149,111		147,537
Federal Reserve and Federal Home Loan Bank stock		41,323		38,102		33,061
Loans and leases		3,602,895		3,455,851		3,432,300
Less allowance for loan and lease losses		54,510		54,183		57,058
Net loans and leases		3,548,385		3,401,668		3,375,242
Premises and equipment, net		64,871		64,042		65,286
Goodwill		103,398		103,398		103,412
Intangible assets, net		9,404		10,173		10,998
Bank owned life insurance		44,546		43,614		42,667
Other assets		97,009		96,492		92,578
TOTAL ASSETS	$	5,309,500	$	5,201,776	$	5,121,634

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing)	$	700,279	$	666,698	$	681,732
Savings, NOW, and money market		1,643,702		1,614,289		1,606,473
Time		1,595,132		1,591,106		1,670,961
Total deposits		3,939,113		3,872,093		3,959,166
Short-term borrowings		205,624		368,467		290,387
Long-term debt		619,720		424,887		352,151
Trust preferred debentures		75,422		75,422		75,422
Other liabilities		65,749		63,607		53,574
Total liabilities		4,905,628		4,804,476		4,730,700


Total stockholders' equity		403,872		397,300		390,934

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,309,500	$	5,201,776	$	5,121,634

	Three months ended				Six months ended
NBT Bancorp Inc. and Subsidiaries	June 30,				June 30,
Consolidated Statements of Income (unaudited)	2008		2007		2008		2007
(in thousands, except per share data)
Interest, fee and dividend income:
Loans and leases	$	57,220	$	60,689	$	115,837	$	120,497
Securities available for sale		13,417		13,562		27,163		27,029
Securities held to maturity		1,478		1,525		2,992		2,969
Other		739		719		1,514		1,459
Total interest, fee and dividend income		72,854		76,495		147,506		151,954
Interest expense:
Deposits		18,712		26,950		41,410		52,934
Short-term borrowings		1,362		2,918		3,702		6,010
Long-term debt		5,629		3,997		9,931		8,483
Trust preferred debentures		1,146		1,272		2,393		2,540
Total interest expense		26,849		35,137		57,436		69,967
Net interest income		46,005		41,358		90,070		81,987
Provision for loan and lease losses		5,803		9,770		12,281		11,866
Net interest income after provision for loan and lease losses		40,202		31,588		77,789		70,121
Noninterest income:
Trust		2,099		1,792		3,873		3,229
Service charges on deposit accounts		6,938		4,936		13,463		9,405
ATM and debit card fees		2,225		2,041		4,322		3,937
Broker/dealer and insurance revenue		1,366		1,093		2,473		2,176
Net securities gains (losses)		18		21		33		16
Bank owned life insurance income		480		450		932		884
Retirement plan administration fees		1,671		1,601		3,379		3,193
Other		1,622		2,058		4,039		3,842
Total noninterest income		16,419		13,992		32,514		26,682
Noninterest expense:
Salaries and employee benefits		16,906		13,022		33,676		28,986
Office supplies and postage		1,331		1,334		2,670		2,630
Occupancy		3,427		2,585		7,037		5,754
Equipment		1,862		1,837		3,687		3,770
Professional fees and outside services		2,521		1,926		5,620		3,584
Data processing and communications		3,115		2,845		6,285		5,722
Amortization of intangible assets		378		410		769		819
Loan collection and other real estate owned		730		228		1,297		605
Other operating		5,153		3,827		8,416		7,016
Total noninterest expense		35,423		28,014		69,457		58,886
Income before income taxes		21,198		17,566		40,846		37,917
Income taxes		6,541		5,502		12,473		11,721
Net income	$	14,657	$	12,064	$	28,373	$	26,196
Earnings Per Share:
Basic	$	0.46	$	0.36	$	0.89	$	0.77
Diluted	$	0.45	$	0.36	$	0.88	$	0.77

NBT Bancorp Inc. and Subsidiaries	2Q		1Q		4Q		3Q		2Q
Quarterly Consolidated Statements of Income (unaudited)	2008		2008		2007		2007		2007
(in thousands, except per share data)
Interest, fee and dividend income:
Loans and leases	$	57,220	$	58,617	$	60,817	$	61,183	$	60,689
Securities available for sale		13,417		13,746		13,971		13,847		13,562
Securities held to maturity		1,478		1,514		1,458		1,471		1,525
Other		739		775		736		680		719
Total interest, fee and dividend income		72,854		74,652		76,982		77,181		76,495
Interest expense:
Deposits		18,712		22,698		26,578		27,062		26,950
Short-term borrowings		1,362		2,340		3,048		3,885		2,918
Long-term debt		5,629		4,302		4,233		3,770		3,997
Trust preferred debentures		1,146		1,247		1,270		1,277		1,272
Total interest expense		26,849		30,587		35,129		35,994		35,137
Net interest income		46,005		44,065		41,853		41,187		41,358
Provision for loan and lease losses		5,803		6,478		13,440		4,788		9,770
Net interest income after provision for loan and lease losses		40,202		37,587		28,413		36,399		31,588
Noninterest income:
Trust		2,099		1,774		1,584		1,701		1,792
Service charges on deposit accounts		6,938		6,525		7,142		6,195		4,936
ATM and debit card fees		2,225		2,097		2,089		2,159		2,041
Broker/dealer and insurance fees		1,366		1,107		1,052		1,027		1,093
Net securities gains (losses)		18		15		613		1,484		21
Bank owned life insurance income		480		452		480		467		450
Retirement plan administration fees		1,671		1,708		1,557		1,586		1,601
Other		1,622		2,417		1,973		1,908		2,058
Total noninterest income		16,419		16,095		16,490		16,527		13,992
Noninterest expense:
Salaries and employee benefits		16,906		16,770		14,654		15,876		13,022
Office supplies and postage		1,331		1,339		1,136		1,354		1,334
Occupancy		3,427		3,610		2,948		2,928		2,585
Equipment		1,862		1,825		1,855		1,797		1,837
Professional fees and outside services		2,521		3,099		3,295		2,256		1,926
Data processing and communications		3,115		3,170		2,899		2,779		2,845
Amortization of intangible assets		378		391		413		413		410
Loan collection and other real estate owned		730		567		597		431		228
Other operating		5,153		3,263		4,607		3,393		3,827
Total noninterest expense		35,423		34,034		32,404		31,227		28,014
Income before income taxes		21,198		19,648		12,499		21,699		17,566
Income taxes		6,541		5,932		3,514		6,552		5,502
Net income	$	14,657	$	13,716	$	8,985	$	15,147	$	12,064
Earnings per share:
Basic	$	0.46	$	0.43	$	0.28	$	0.46	$	0.36
Diluted	$	0.45	$	0.43	$	0.28	$	0.46	$	0.36

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

Quarterly Common Stock Price	2008				2007				2006
Quarter End	High		Low		High		Low		High		Low
March 31	$	23.65	$	17.95	$	25.81	$	21.73	$	23.90	$	21.02
June 30	$	25.00	$	20.33		23.45		21.80		23.24		21.03
September 30						23.80		17.10		24.57		21.44
December 31						25.00		20.58		26.47		22.36