NBT Bancorp Inc. Announces Preliminary Fourth Quarter and Annual Results

NORWICH, NY, Jan 15 (MARKET WIRE) --
NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today that it expects to report
diluted earnings per share of $0.28 and $1.51 for the three and twelve months
ended December 31, 2007, respectively. These preliminary results include a
provision for loan and lease losses for the three months ended December 31,
2007 of $13.4 million. This provision compares to the provision for loan and
lease
losses of $4.8 million for the third quarter of 2007 and $3.5 million for the
fourthquarter of 2006.

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 the
Company previously disclosed in its Form 10-Q for the quarter ended September
30,
2007, 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.

Based on these preliminary results, the Company expects the allowance for
loan and lease losses to total loans to be 1.57% at December 31, 2007, as
compared to 1.60% at September 30, 2007 and 1.48% at December 31, 2006. The
allowance for loan and lease losses to nonperforming loans was 177%, 178%, and
330% at December 31, 2007, September 30, 2007, and December 31, 2006,
respectively. Nonperforming loans remained relatively flat from the last
quarter at approximately $30.6 million at December 31, 2007 as compared to
$30.7 million at September 30, 2007. In addition, potential problem loans
decreased to $73.3 million at December 31, 2007 as compared to $80.6 million at
September 30, 2007, but up from $69.8 million at December 31, 2006. For
additional information, see the selected financial information below.

NBT President and CEO Martin A. Dietrich said, "While our nonperforming
loans were
consistent with the previous quarter, the potential problem loans in our
portfolio decreased 9% from the third quarter and are now consistent with the
first half of the year. We remain confident that our conservative credit
culture and disciplined underwriting practices are effective, particularly
during periods of economic uncertainty."

NBT is a financial holding company headquartered in Norwich, NY, that
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.

Selected Financial Data (in thousands)
--------------------------------------

2007 Q4-2007 Q3-2007 Q2-2007 Q1-2007 Q4-2006
---- --------- --------- --------- --------- ---------
Net Income $ 8,985 $ 15,147 $ 12,064 $ 14,132 $ 13,648
Average Diluted
Shares Outstanding 32,398 32,921 33,936 34,457 34,402
Diluted Earnings Per
Share 0.28 0.46 0.36 0.41 0.40

Net Charge-Offs $ 14,065 $ 7,038 $ 3,267 $ 2,129 $ 3,543
Provision for Loan
and Lease Losses 13,440 4,788 9,770 2,096 3,484

Allowance for Loan
and Lease Losses $ 54,183 $ 54,808 $ 57,058 $ 50,554 $ 50,587
Nonperforming Loans 30,579 30,707 34,419 17,363 15,307
Total Loans and
Leases 3,455,851 3,422,217 3,432,300 3,395,476 3,412,654
Past Due Loans 25,914 24,044 29,332 28,497 28,409

Allowance for Loan
and Lease Losses to
Total Loans and
Leases 1.57% 1.60% 1.66% 1.49% 1.48%
Allowance for Loan
and Lease Losses to
Nonperforming Loans 177% 178% 166% 291% 330%
Past Due Loans to
Total Loans and
Leases 0.75% 0.70% 0.85% 0.84% 0.83%
Potential Problem
Loans 73,281 80,622 72,262 70,942 69,844

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)
competitivepressures 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
economicconditions, 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.

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

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