form8k.htm

Exhibit 99.1

Page 1 of 13

FOR IMMEDIATE RELEASE

ATTENTION: FINANCIAL AND BUSINESS EDITORS

Contact:

Martin A. Dietrich, CEO

Michael J. Chewens, CFO

NBT Bancorp Inc.

52 South Broad Street

Norwich, NY 13815

607-337-6119

NBT BANCORP INC. ANNOUNCES SECOND QUARTER EARNINGS OF $0.42 PER DILUTED SHARE, UP 24% FROM LAST YEAR; DECLARES CASH DIVIDEND

NORWICH, NY (July 26, 2010) – NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today net income per diluted share for the three months ended June 30, 2010 of $0.42, as compared with $0.34 per share for the three months ended June 30, 2009. Annualized return on average assets and return on average equity were 1.06% and 11.09%, respectively, for the three months ended June 30, 2010, compared with 0.85% and 9.63%, respectively, for the three months ended June 30, 2009. Net interest margin (on a fully taxable equivalent basis (“FTE”)) was 4.14% for the three months ended June 30, 2010, up 19 basis points (“bp”) from 3.95% for the three months ended June 30, 2009. Net income for the three months ended June 30, 2010 was $14.4 million, up $2.8 million, or 24.8%, from $11.6 million for the second quarter last year.

Net income per diluted share for the six months ended June 30, 2010 was $0.82 per share, as compared with $0.74 per share for the six months ended June 30, 2009. Annualized return on average assets and return on average equity were 1.04% and 11.07%, respectively, for the six months ended June 30, 2010, compared with 0.92% and 10.82%, respectively, for the six months ended June 30, 2009. FTE net interest margin was 4.17% for the six months ended June 30, 2010, up 15 bp from 4.02% for the six months ended June 30, 2009. Net income for the six months ended June 30, 2010 was $28.4 million, up $3.8 million, or 15.3%, from the six months ended June 30, 2009.

NBT President and CEO Martin Dietrich said: “We are very pleased with our financial performance during the second quarter of 2010. Especially encouraging is our nearly 25% gain in net income from the same quarter last year. We are also encouraged by the continuing improvement in our asset quality. While the economy remains challenging, we believe we are well positioned in terms of our performance and strategic investments for future growth.”

Loan and Lease Quality and Provision for Loan and Lease Losses

Nonperforming loans at June 30, 2010 were $39.2 million or 1.07% of total loans and leases compared with $40.8 million or 1.12% at March 31, 2010. Past due loans as a percentage of total loans has improved to 0.82% at June 30, 2010, as compared with 0.87% at March 31, 2010.

The allowance for loan and lease losses totaled $70.3 million at June 30, 2010 as compared with $70.2 million at March 31, 2010. The allowance for loan and lease losses as a percentage of loans and leases remained at 1.93% at June 30, 2010 as compared to March 31, 2010. Certain asset quality indicators such as nonperforming loans and past due loans have shown some encouraging trends, while potential problem loans have increased slightly from $82.4 million at March 31, 2010 to $87.7 million at June 30, 2010. The increase in potential problems loans was due primarily to the migration of four commercial loans to classified status, partially offset by a decrease in nonperforming loans. If these indicators continue to improve, it could result in a decrease in provisions for loan and lease losses in future periods.

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The Company recorded a provision for loan and lease losses of $6.4 million during the second quarter of 2010, consistent with net charge-offs during the period of $6.2 million. The Company recorded a provision for loan and lease losses of $9.2 million during the second quarter of 2009, as compared with net charge-offs during the period of $5.8 million.

The Company recorded a provision for loan and lease losses of $15.6 million during the six months ended June 30, 2010, as compared with net charge-offs during the period of $11.8 million. The Company recorded a provision for loan and lease losses of $15.7 million during the six months ended June 30, 2009, as compared with net charge-offs during the period of $11.5 million.

Net Interest Income

Net interest income was up 5.3% to $50.6 million for the three months ended June 30, 2010 compared with $48.1 million for the three months ended June 30, 2009. The Company’s fully taxable equivalent (FTE) net interest margin was 4.14% for the three months ended June 30, 2010, as compared with 3.95% for the three months ended June 30, 2009.

While the yield on interest earning assets decreased 31 basis points, the yield on interest bearing liabilities declined 58 basis points, which resulted in an increase in the net interest margin for the three months ended June 30, 2010 compared to the same period for 2009. The yield on securities available for sale was 3.70% for the three months ended June 30, 2010, as compared with 4.59% for the three months ended June 30, 2009. The yield on loans and leases was 5.92% for the three months ended June 30, 2010, as compared with 6.05% for the three months ended June 30, 2009. The yield on time deposits was 2.12% for the three months ended June 30, 2010, as compared with 2.72% for the three months ended June 30, 2009. The yield on money market deposit accounts was 0.62% for the three months ended June 30, 2010, as compared with 1.33% for the three months ended June 30, 2009.

Net interest income was up 5.4% to $101.4 million for the six months ended June 30, 2010 compared with $96.2 million for the six months ended June 30, 2009. The Company’s fully taxable equivalent (FTE) net interest margin was 4.17% for the six months ended June 30, 2010, as compared with 4.02% for the six months ended June 30, 2009. The Company experienced a 77.9% growth in average short-term interest bearing accounts for the six months ending June 30, 2010 as compared with the six months ending June 30, 2009. As a result of this excess liquidity, our Federal Funds sold position had a net negative impact of approximately 5 bp on our net interest margin for the six months ended June 30, 2010 as compared to the six months ended June 30, 2009.

While the yield on interest earning assets decreased 38 basis points, the yield on interest bearing liabilities declined 61 basis points, which resulted in an increase in the net interest margin for the six months ended June 30, 2010 compared to the same period for 2009. The yield on securities available for sale was 3.86% for the six months ended June 30, 2010, as compared with 4.74% for the six months ended June 30, 2009. The yield on loans and leases was 5.96% for the six months ended June 30, 2010, as compared with 6.11% for the six months ended June 30, 2009. The yield on time deposits was 2.16% for the six months ended June 30, 2010, as compared with 2.84% for the six months ended June 30, 2009. The yield on money market deposit accounts was 0.66% for the six months ended June 30, 2010 , as compared with 1.34% for the six months ended June 30, 2009.

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Noninterest Income

Noninterest income for the three months ended June 30, 2010 was $20.3 million, up $0.5 million or 2.4% from $19.8 million for the same period in 2009. The increase in noninterest income was due primarily to an increase in other financial services revenue of approximately $0.5 million for the three months ended June 30, 2010 as compared to the same period in 2009. Retirement plan administration fees increased approximately $0.4 million for the three month period ended June 30, 2010 as compared with the three month period ended June 30, 2009 as a result of organic growth. In addition, trust revenue increased approximately $0.1 million for the three months ended June 30, 2010 as compared to the same period in 2009 due primarily to an increase in fair value of trust assets under administration. These increases were partially offset by a decrease in service charges on deposit accounts of approximately $0.6 million due primarily to a decrease in overdraft activity in the second quarter of 2010 as compared with the second quarter of 2009.

Noninterest income for the six months ended June 30, 2010 was $40.7 million, up $1.3 million or 3.1% from $39.4 million for the same period in 2009. The increase in noninterest income was due primarily to an increase in retirement plan administration fees of approximately $1.1 million for the six month period ended June 30, 2010 as compared with the six month period ended June 30, 2009 as a result of organic growth. Trust revenue increased approximately $0.5 million for the six months ended June 30, 2010 as compared to the same period in 2009 due primarily to an increase in fair value of trust assets under administration. In addition, other financial services revenue increased approximately $0.4 million for the six months ended June 30, 2010 as compared to the same period in 2009. 0;These increases were partially offset by a decrease in service charges on deposit accounts of approximately $0.8 million due primarily to a decrease in overdraft activity in the first six months of 2010 as compared with the first six months of 2009.

Noninterest Expense and Income Tax Expense

Noninterest expense for the three months ended June 30, 2010 was $44.2 million, up from $41.9 million, or 5.4%, for the same period in 2009. Salaries and employee benefits increased $4.3 million, or 21.4%, for the three months ended June 30, 2010 compared with the same period in 2009. This increase was due primarily to increases in full-time-equivalent employees, merit increases and other employee benefits. Other operating expenses increased approximately $0.7 million, or 18.0%, for the three month period ended June 30, 2010 as compared with the three months ended June 30, 2009. The 2009 expense was lower due to the settlement of a lease residual insurance policy for $1.2 million. These increases were partially offset by a decrease in FDIC expenses of approximately $2.5 million fo r the three month period ended June 30, 2010, as compared with the three months ended June 30, 2009. This decrease resulted from the special assessment levied by the FDIC in the second quarter of 2009. Income tax expense for the three month period ended June 30, 2010 was $6.0 million, up from $5.2 million for the same period in 2009.

Noninterest expense for the six months ended June 30, 2010 was $86.4 million, up from $84.2 million for the same period in 2009. Salaries and employee benefits increased $5.1 million, or 12.2%, for the six months ended June 30, 2010 compared with the same period in 2009. This increase was due primarily to increases in full-time-equivalent employees, merit increases and other employee benefits. Loan collection and other real estate owned expenses increased approximately $0.3 million, or 21.4%, for the six month period ended June 30, 2010 as compared with the six months ended June 30, 2009. This increase was due to higher property taxes paid by the Company on collateral securing certain loans during the six month period ending June 30, 2010. These increases were partially offset by a decrease in FDIC expenses of approximately $2.4 million for the six month period ended June 30, 2010, as compared with the six months ended June 30, 2009. This decrease resulted from the special assessment levied by the FDIC in the second quarter of 2009. In addition, professional fees and outside services decreased by $0.7 million, or 12.8%, for the six month period ended June 30, 2010 as compared with the six months ended June 30, 2009. This decrease was due to legal fees incurred during the second quarter of 2009 related to de novo branch activity. Income tax expense for the six month period ended June 30, 2010 was $11.7 million, up from $11.1 million for the same period in 2009.

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Balance Sheet

Total assets were $5.4 billion at June 30, 2010, down $48.9 million or 0.9% from December 31, 2009. Loans and leases were $3.6 billion at June 30, 2010, up $2.0 million from December 31, 2009. Total deposits were $4.1 billion at June 30, 2010, up $8.3 million from December 31, 2009. Stockholders’ equity was $527.0 million, representing a total equity-to-total assets ratio of 9.73% at June 30, 2010, compared with $505.1 million or a total equity-to-total assets ratio of 9.24% at December 31, 2009.

Stock Repurchase Program

The Company made no purchases of its common stock securities during the six month period ending June 30, 2010. At June 30, 2010, there were 1,000,000 shares available for repurchase under a previously announced stock repurchase plan. This plan was authorized on October 26, 2009 in the amount of 1,000,000 shares and expires on December 31, 2011.

Dividend Declared

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

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $5.4 billion at June 30, 2010. The company primarily operates through NBT Bank, N.A., a full-service community bank with two divisions, and through two financial services companies. NBT Bank, N.A. has 123 locations, including 85 NBT Bank offices in upstate New York, 37 Pennstar Bank offices in northeastern Pennsylvania and one office in Burlington, Vermont. EPIC Advisors, Inc., based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm. Mang Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions can be found on the Inte rnet at: www.nbtbancorp.com, www.nbtbank.com, www.pennstarbank.com, www.epic1st.com and www.manginsurance.com.

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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) cha nges 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.

Page 6 of 13

NBT Bancorp Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

(unaudited)

							Net			Percent
	2010			2009			Change			Change
	(dollars in thousands, except per share data)

Three Months Ended June 30,
Net Income	$	14,424		$	11,560		$	2,864			25	%
Diluted Earnings Per Share	$	0.42		$	0.34		$	0.08			24	%
Weighted Average Diluted
Common Shares Outstanding		34,565,005			34,314,291			250,714			1	%
Return on Average Assets (1)		1.06	%		0.85	%		21	bp		25	%
Return on Average Equity (1)		11.09	%		9.63	%		146	bp		15	%
Net Interest Margin (2)		4.14	%		3.95	%		19	bp		5	%

Six Months Ended June 30,
Net Income	$	28,400		$	24,632		$	3,768			15	%
Diluted Earnings Per Share	$	0.82		$	0.74		$	0.08			11	%
Weighted Average Diluted
Common Shares Outstanding		34,485,201			33,483,222			1,001,979			3	%
Return on Average Assets		1.04	%		0.92	%		12	bp		13	%
Return on Average Equity		11.07	%		10.82	%		25	bp		2	%
Net Interest Margin (2)		4.17	%		4.02	%		15	bp		4	%

Asset Quality	June 30,			December 31,
	2010			2009
Nonaccrual Loans	$	37,508		$	38,746
90 Days Past Due and Still Accruing	$	1,684		$	2,526
Total Nonperforming Loans	$	39,192		$	41,272
Other Real Estate Owned	$	1,466		$	2,358
Total Nonperforming Assets	$	40,658		$	43,630
Past Due Loans	$	29,776		$	32,349
Potential Problem Loans	$	87,744		$	79,072
Allowance for Loan and Lease Losses	$	70,300		$	66,550
Allowance for Loan and Lease Losses to Total Loans and Leases		1.93	%		1.83	%
Total Nonperforming Loans to Total Loans and Leases		1.07	%		1.13	%
Total Nonperforming Assets to Total Assets		0.75	%		0.80	%
Past Due Loans to Total Loans and Leases		0.82	%		0.89	%
Allowance for Loan and Lease Losses to Total Nonperforming Loans		179.37	%		161.25	%
Net Charge-Offs to YTD Average Loans and Leases		0.66	%		0.70	%

Capital
Equity to Assets		9.73	%		9.24	%
Book Value Per Share	$	15.28		$	14.69
Tangible Book Value Per Share	$	11.40		$	10.75
Tier 1 Leverage Ratio		8.75	%		8.35	%
Tier 1 Capital Ratio		11.88	%		11.34	%
Total Risk-Based Capital Ratio		13.14	%		12.59	%

Quarterly Common Stock Price	2010				2009
Quarter End	High		Low		High		Low
March 31	$	23.99	$	19.15	$	28.37	$	15.42
June 30	$	25.96	$	20.33		25.22		20.49
September 30						24.16		20.57
December 31						23.59		19.43

(1) Annualized

(2) Calculated on a FTE basis

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NBT Bancorp Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

(unaudited)

	June 30,		December 31,		Net			Percent
	2010		2009		Change			Change
	(dollars in thousands, except per share data)
Balance Sheet
Loans and Leases	$	3,647,445	$	3,645,398	$	2,047			0	%
Earning Assets	$	4,968,203	$	5,009,251	$	(41,048	)		-1	%
Total Assets	$	5,415,161	$	5,464,026	$	(48,865	)		-1	%
Deposits	$	4,101,331	$	4,093,046	$	8,285			0	%
Stockholders’ Equity	$	527,022	$	505,123	$	21,899			4	%

	2010		2009
Average Balances	(dollars in thousands, except per share data)
Three Months Ended June 30,
Loans and Leases	$	3,640,915	$	3,653,166	$	(12,251	)
Securities Available For Sale
(excluding unrealized gains or losses)	$	1,114,315	$	1,085,147	$	29,168
Securities Held To Maturity	$	148,568	$	138,180	$	10,388
Trading Securities	$	2,605	$	1,854	$	751
Federal Reserve and Federal Home Loan Bank stock	$	33,199	$	38,221	$	(5,022	)
Short-Term Interest Bearing Accounts	$	106,784	$	126,318	$	(19,534	)
Total Earning Assets	$	5,043,781	$	5,041,032	$	2,749
Total Assets	$	5,482,336	$	5,448,440	$	33,896
Interest Bearing Deposits	$	3,372,297	$	3,381,288	$	(8,991	)
Non-Interest Bearing Deposits	$	779,841	$	707,022	$	72,819
Short-Term Borrowings	$	151,985	$	120,272	$	31,713
Long-Term Borrowings	$	577,179	$	684,495	$	(107,316	)
Total Interest Bearing Liabilities	$	4,101,461	$	4,186,055	$	(84,594	)
Stockholders’ Equity	$	521,632	$	481,308	$	40,324

Average Balances
Six Months Ended June 30,
Loans and Leases	$	3,640,528	$	3,655,909	$	(15,381	)
Securities Available For Sale
(excluding unrealized gains or losses)	$	1,101,530	$	1,087,317	$	14,213
Securities Held To Maturity	$	152,164	$	138,439	$	13,725
Trading Securities	$	2,517	$	1,644	$	873
Federal Reserve and Federal Home Loan Bank stock	$	33,959	$	38,535	$	(4,576	)
Short-Term Interest Bearing Accounts	$	115,354	$	64,843	$	50,511
Total Earning Assets	$	5,043,535	$	4,985,043	$	58,492
Total Assets	$	5,485,920	$	5,400,226	$	85,694
Interest Bearing Deposits	$	3,374,231	$	3,347,130	$	27,101
Non-Interest Bearing Deposits	$	769,744	$	694,001	$	75,743
Short-Term Borrowings	$	154,605	$	134,282	$	20,323
Long-Term Borrowings	$	589,396	$	695,517	$	(106,121	)
Total Interest Bearing Liabilities	$	4,118,232	$	4,176,929	$	(58,697	)
Stockholders’ Equity	$	517,426	$	459,120	$	58,306

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NBT Bancorp Inc. and Subsidiaries	June 30,		December 31,
Consolidated Balance Sheets (unaudited)	2010		2009
(in thousands)

ASSETS
Cash and due from banks	$	105,329	$	107,980
Short term interest bearing accounts		61,708		79,181
Securities available for sale, at fair value		1,137,986		1,116,758
Securities held to maturity (fair value of $124,456 and $161,851 at June 30, 2010 and December 31, 2009, respectively)		122,549		159,946
Trading securities		2,495		2,410
Federal Reserve and Federal Home Loan Bank stock		32,178		35,979
Loans and leases		3,647,445		3,645,398
Less allowance for loan and lease losses		70,300		66,550
Net loans and leases		3,577,145		3,578,848
Premises and equipment, net		66,305		66,221
Goodwill		114,841		114,938
Intangible assets, net		19,055		20,590
Bank owned life insurance		73,773		74,751
Other assets		101,797		106,424
TOTAL ASSETS	$	5,415,161	$	5,464,026

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing)	$	798,454	$	789,989
Savings, NOW, and money market		2,337,642		2,269,779
Time		965,235		1,033,278
Total deposits		4,101,331		4,093,046
Short-term borrowings		159,036		155,977
Long-term debt		479,461		554,698
Trust preferred debentures		75,422		75,422
Other liabilities		72,889		79,760
Total liabilities		4,888,139		4,958,903

Total stockholders' equity		527,022		505,123

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,415,161	$	5,464,026

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	Three months ended				Six months ended
NBT Bancorp Inc. and Subsidiaries	June 30,				June 30,
Consolidated Statements of Income (unaudited)	2010		2009		2010		2009
(in thousands, except per share data)
Interest, fee and dividend income:
Loans and leases	$	53,503	$	54,886	$	107,195	$	110,297
Securities available for sale		9,556		11,671		19,602		24,046
Securities held to maturity		1,078		1,209		2,215		2,443
Other		469		606		1,065		967
Total interest, fee and dividend income		64,606		68,372		130,077		137,753
Interest expense:
Deposits		7,999		13,123		16,453		26,962
Short-term borrowings		123		124		247		271
Long-term debt		4,850		5,998		9,915		12,195
Trust preferred debentures		1,033		1,076		2,060		2,162
Total interest expense		14,005		20,321		28,675		41,590
Net interest income		50,601		48,051		101,402		96,163
Provision for loan and lease losses		6,350		9,199		15,593		15,650
Net interest income after provision for loan and lease losses		44,251		38,852		85,809		80,513
Noninterest income:
Trust		1,909		1,761		3,675		3,170
Service charges on deposit accounts		6,301		6,950		12,431		13,247
ATM and debit card fees		2,462		2,368		4,829		4,550
Insurance and other financial services revenue		4,700		4,220		9,945		9,558
Net securities gains		63		17		91		17
Bank owned life insurance income		808		670		1,789		1,542
Retirement plan administration fees		2,595		2,194		4,985		3,935
Other		1,482		1,665		2,916		3,416
Total noninterest income		20,320		19,845		40,661		39,435
Noninterest expense:
Salaries and employee benefits		24,224		19,947		46,428		41,374
Office supplies and postage		1,454		1,429		2,996		2,959
Occupancy		3,666		3,610		7,818		7,775
Equipment		2,041		2,005		4,141		4,027
Professional fees and outside services		2,191		2,407		4,475		5,129
Data processing and communications		3,265		3,324		6,483		6,619
Amortization of intangible assets		780		825		1,561		1,638
Loan collection and other real estate owned		668		674		1,727		1,422
FDIC expenses		1,560		4,032		3,113		5,561
Other operating		4,348		3,686		7,615		7,740
Total noninterest expense		44,197		41,939		86,357		84,244
Income before income taxes		20,374		16,758		40,113		35,704
Income taxes		5,950		5,198		11,713		11,072
Net income	$	14,424	$	11,560	$	28,400	$	24,632
Earnings Per Share:
Basic	$	0.42	$	0.34	$	0.83	$	0.74
Diluted	$	0.42	$	0.34	$	0.82	$	0.74

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NBT Bancorp Inc. and Subsidiaries	2Q		1Q		4Q			3Q		2Q
Quarterly Consolidated Statements of Income (unaudited)	2010		2010		2009			2009		2009
(in thousands, except per share data)
Interest, fee and dividend income:
Loans and leases	$	53,503	$	53,692	$	55,361		$	54,666	$	54,886
Securities available for sale		9,556		10,046		10,810			11,116		11,671
Securities held to maturity		1,078		1,137		1,212			1,239		1,209
Other		469		596		621			615		606
Total interest, fee and dividend income		64,606		65,471		68,004			67,636		68,372
Interest expense:
Deposits		7,999		8,454		9,532			12,002		13,123
Short-term borrowings		123		124		139			142		124
Long-term debt		4,850		5,065		5,673			5,761		5,998
Trust preferred debentures		1,033		1,027		1,036			1,049		1,076
Total interest expense		14,005		14,670		16,380			18,954		20,321
Net interest income		50,601		50,801		51,624			48,682		48,051
Provision for loan and lease losses		6,350		9,243		8,641			9,101		9,199
Net interest income after provision for loan and lease losses		44,251		41,558		42,983			39,581		38,852
Noninterest income:
Trust		1,909		1,766		1,881			1,668		1,761
Service charges on deposit accounts		6,301		6,130		6,808			7,110		6,950
ATM and debit card fees		2,462		2,367		2,346			2,443		2,368
Insurance and other financial services revenue		4,700		5,245		3,799			4,368		4,220
Net securities gains/(losses)		63		28		(2	)		129		17
Bank owned life insurance income		808		981		910			683		670
Retirement plan administration fees		2,595		2,390		2,739			2,412		2,194
Other		1,482		1,434		1,365			2,037		1,665
Total noninterest income		20,320		20,341		19,846			20,850		19,845
Noninterest expense:
Salaries and employee benefits		24,224		22,204		22,919			21,272		19,947
Office supplies and postage		1,454		1,542		1,472			1,426		1,429
Occupancy		3,666		4,152		3,608			3,481		3,610
Equipment		2,041		2,100		2,115			1,997		2,005
Professional fees and outside services		2,191		2,284		2,688			2,691		2,407
Data processing and communications		3,265		3,218		3,314			3,305		3,324
Amortization of intangible assets		780		781		781			827		825
Loan collection and other real estate owned		668		1,059		589			755		674
FDIC expenses		1,560		1,553		1,312			1,535		4,032
Other operating		4,348		3,267		6,492			3,743		3,686
Total noninterest expense		44,197		42,160		45,290			41,032		41,939
Income before income taxes		20,374		19,739		17,539			19,399		16,758
Income taxes		5,950		5,763		3,738			5,821		5,198
Net income	$	14,424	$	13,976	$	13,801		$	13,578	$	11,560
Earnings per share:
Basic	$	0.42	$	0.41	$	0.40		$	0.40	$	0.34
Diluted	$	0.42	$	0.41	$	0.40		$	0.40	$	0.34

Page 11 of 13

Three months ended June 30,
			2010							2009
	Average				Yield/			Average				Yield/
(dollars in thousands)	Balance		Interest		Rates			Balance		Interest		Rates
ASSETS
Short-term interest bearing accounts	$	106,784	$	75		0.28	%	$	126,318	$	63		0.20	%
Securities available for sale (1)(excluding unrealized gains or losses)		1,114,315		10,286		3.70	%		1,085,147		12,425		4.59	%
Securities held to maturity (1)		148,568		1,624		4.38	%		138,180		1,822		5.29	%
Investment in FRB and FHLB Banks		33,199		394		4.76	%		38,221		543		5.70	%
Loans and leases (2)		3,640,915		53,713		5.92	%		3,653,166		55,094		6.05	%
Total interest earning assets	$	5,043,781	$	66,092		5.25	%	$	5,041,032	$	69,947		5.56	%
Other assets		438,555							407,408
Total assets	$	5,482,336						$	5,448,440

LIABILITIES AND STOCKHOLDERS' EQUITY
Money market deposit accounts	$	1,130,124		1,743		0.62	%	$	1,017,217	$	3,381		1.33	%
NOW deposit accounts		689,079		770		0.45	%		581,534		848		0.58	%
Savings deposits		557,109		214		0.15	%		503,485		205		0.16	%
Time deposits		995,985		5,272		2.12	%		1,279,052		8,689		2.72	%
Total interest bearing deposits	$	3,372,297	$	7,999		0.95	%	$	3,381,288	$	13,123		1.56	%
Short-term borrowings		151,985		123		0.32	%		120,272		124		0.41	%
Trust preferred debentures		75,422		1,033		5.49	%		75,422		1,076		5.72	%
Long-term debt		501,757		4,850		3.88	%		609,073		5,998		3.95	%
Total interest bearing liabilities	$	4,101,461	$	14,005		1.37	%	$	4,186,055	$	20,321		1.95	%
Demand deposits		779,841							707,022
Other liabilities		79,402							74,055
Stockholders' equity		521,632							481,308
Total liabilities and stockholders' equity	$	5,482,336						$	5,448,440
Net interest income (FTE)				52,087							49,626
Interest rate spread						3.88	%						3.61	%
Net interest margin						4.14	%						3.95	%
Taxable equivalent adjustment				1,486							1,575
Net interest income			$	50,601						$	48,051

(1) Securities are shown at average amortized cost

(2) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding

Page 12 of 13

Six months ended June 30,

	Average		2010		Yield/			Average		2009		Yield/
(dollars in thousands)	Balance		Interest		Rates			Balance		Interest		Rates
ASSETS
Short-term interest bearing accounts	$	115,354	$	142		0.25	%	$	64,843	$	76		0.24	%
Securities available for sale (1)(excluding unrealized gains or losses)		1,101,530		21,068		3.86	%		1,087,317		25,539		4.74	%
Securities held to maturity (1)		152,164		3,338		4.42	%		138,439		3,682		5.36	%
Investment in FRB and FHLB Banks		33,959		924		5.48	%		38,535		892		4.67	%
Loans and leases (2)		3,640,528		107,591		5.96	%		3,655,909		110,722		6.11	%
Total interest earning assets	$	5,043,535	$	133,063		5.32	%	$	4,985,043	$	140,911		5.70	%
Other assets		442,385							415,183
Total assets	$	5,485,920						$	5,400,226

LIABILITIES AND STOCKHOLDERS' EQUITY
Money market deposit accounts	$	1,112,154		3,639		0.66	%	$	979,927	$	6,489		1.34	%
NOW deposit accounts		705,538		1,591		0.45	%		565,974		1,634		0.58	%
Savings deposits		544,961		407		0.15	%		490,829		415		0.17	%
Time deposits		1,011,578		10,816		2.16	%		1,310,400		18,424		2.84	%
Total interest bearing deposits	$	3,374,231	$	16,453		0.98	%	$	3,347,130	$	26,962		1.62	%
Short-term borrowings		154,605		247		0.32	%		134,282		271		0.41	%
Trust preferred debentures		75,422		2,060		5.51	%		75,422		2,162		5.78	%
Long-term debt		513,974		9,915		3.89	%		620,095		12,195		3.97	%
Total interest bearing liabilities	$	4,118,232	$	28,675		1.40	%	$	4,176,929	$	41,590		2.01	%
Demand deposits		769,744							694,001
Other liabilities		80,518							70,176
Stockholders' equity		517,426							459,120
Total liabilities and stockholders' equity	$	5,485,920						$	5,400,226
Net interest income (FTE)				104,388							99,321
Interest rate spread						3.91	%						3.69	%
Net interest margin						4.17	%						4.02	%
Taxable equivalent adjustment				2,986							3,158
Net interest income			$	101,402						$	96,163

(1) Securities are shown at average amortized cost

(2) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding

Page 13 of 13

NBT Bancorp Inc. and Subsidiaries
Loans and Leases (Unaudited)

(In thousands)	June 30, 2010		December 31, 2009
Residential real estate mortgages	$	584,472	$	622,898
Commercial		615,642		581,870
Commercial real estate mortgages		761,179		718,235
Real estate construction and development		76,346		76,721
Agricultural and agricultural real estate mortgages		116,332		122,466
Consumer		854,343		856,956
Home equity		594,495		603,585
Lease financing		44,636		62,667
Total loans and leases	$	3,647,445	$	3,645,398

DELAWARE	0-14703	16-1268674
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

	NBT BANCORP INC.
	(Registrant)

	/s/ Michael J. Chewens
	Michael J. Chewens
	Senior Executive Vice President,
	Chief Financial Officer and Corporate Secretary