NBT Bancorp, Inc. CEO Interview: Martin Dietrich

• On 3:25 pm EDT, Tuesday October 6, 2009

67 WALL STREET, New York - October 6, 2009 - The Wall Street Transcript has just published its Northeast and Mid-Atlantic Regional Banks Report offering a timely review of the sector to serious investors and industry executives. This 130 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Residential Mortgage Situation -- Regional Banks Mergers and Acquisitions Timing Strategy -- Commercial Mortgage Portfolio Decay -- Timing Of Commercial Mortgage Portfolio Bad Debt Write Offs-- FDIC Hit List For Bank Closings -- Mutual Holding Company Structure -- Interest Rate Scenarios -- Banking Pricing Power -- Expensive Bank Valuations -- Tangible Book As Guide For Bank Stock Pricing -- Distressed Sales Of Community and Regional Banks -- TARP Program -- Attitude Of Institutional Investors Towards Resurgence in Community Banking -- Unique Business Models -- Regional Bank Boards Looking For Exit

Companies include: BB and T (BBT); Colonial (CNB); First Niagara (FNFG); PNC (PNC); National City (NCC-PA); Harleysville National (HNBC); Citizens First Bancorp (CTZN); Regions Financial (RF); Bank of America (BAC); SunTrust Banks (STI); Pinnacle Financial (PNFP); Northwest Bancorp Inc. (NWSB); Beneficial (BNCL); Investor Savings Bancorp (ISBC); Territorial Bancorp (TBNK); FNB Bancorp (FNBG.OB); National Penn (NPBC); Trustco Bank (TRST); KeyBank (KEY); M and T Bank (MTB); New York Community Bancorp (NYB); Bank of New York Mellon (BK); Wells Fargo and Company (WFC); JPMorgan Chase and Co. (JPM); Wachovia (WB); Harleysville Savings Bank (HARL); SVB Financial (SIVB); Signature Bank (SBNY); Provident Bank (PBKS); Valley National Bank (VLY); Community Bank System (CBU); NBT Bankcorp (NBTB); Fulton (FULT); Citibank ©; Allied Irish (AIB); Bank of Hawaii (BOH); First Horizon Bank (FHN); Comerica (CMA); Synovus (SNV); Zions (ZION); South Financial Group (TSFG); Bancorp (TBBK); Legg Mason (LM); IBERIABANK Corp. (IBKC); Wilmington Trust (WL); S and T Bancorp (STBA); PHH (PHH); Goldman Sachs (GS); Citigroup ©; U.S. Bancorp (USB); Fifth Third Bancorp (FITB); KeyCorp (KEY); Lehman Brothers; Colonial; Washington Mutual; TD Banknorth (TD), Lakeland (LBAI), Westfield Financial, Inc. (WFD), United Financial Bancorp, Inc. (UBNK), Chicopee Bancorp, Inc. (CBNK)

In the following brief excerpt from the 130 page, Martin Dietrich, CEO of NBT Bancorp, Inc., discusses the outlook for the sector and for investors.

Martin Dietrich is President, Chief Executive Officer and board member of NBT Bancorp, Inc., a $5.4 billion-in-assets financial holding company headquartered in Norwich, N.Y. He began his career at NBT Bank in 1981, when he entered the bank's management training program. Over the years, he's held positions of increasing responsibility in accounting, marketing, commercial banking and retail banking. Mr. Dietrich became President and Chief Operating Officer of NBT Bank in 2000, and he advanced to the position of Chief Executive Officer in 2004. His current duties as NBT Bancorp President and CEO were added in 2006. A native of Norwich and Chenango County, Mr. Dietrich is involved in a number of professional and community organizations. He currently serves on the boards of the New York Bankers Association, the Independent Bankers Association of New York State, Preferred Mutual Insurance Company, Chenango Memorial Hospital and United Health Services, of which he is Vice Chair. Mr. Dietrich is a graduate of Colgate University in Hamilton, N.Y., where he earned a B.A. in economics.

TWST: Would you tell us about NBT, including what you see as your business today?E

Mr. Dietrich: We consider ourselves a community bank, although we are probably one of the larger community banks. We think community banking is more of a mindset rather than actually related to one's size. We're a $5.4 billion bank and have been around for 153 years. We have 123 offices with just under 1,600 employees. NBT operates in upstate New York, northeastern Pennsylvania and in northwestern Vermont, which we are in the process of expanding into. We are a high-touch, high-service organization with deep-seated roots in our market areas, and we like to stay very connected to our customers. Our organization is very flat and there are not a lot of layers between our employees in the field and our executives. And we think that helps us to be very nimble and very customer focused.

TWST: What do you see as the key issues that community banks face today? How are you adapting your strategies and goals over the next few years, based on those issues?

Mr. Dietrich: There are a number of challenges currently facing all banks, including community banks. The economic recession is obviously on everyone's mind, and this has had a negative impact on our business. Loan demand is soft, loan quality is being challenged and banks are being faced with very significant expenses related to increased FDIC charges. So there are a number of very immediate challenges that are facing all banks right now. Fortunately for us, we're well positioned for these challenges. While many banks are playing defense right now, we are playing offense. We're expanding, hiring staff, opening new offices and trying to take advantage of the disruption that's in the market right now so that we'll be even better positioned when the economy eventually turns around.

TWST: Tell us about the region you serve. What of the area's economics and demographics will be important for the continued success of NBT?

Mr. Dietrich: I think the regional economy in which we operate has contributed to some of the success we've had since upstate New York and northeastern Pennsylvania have been less affected by the recession. Put another way, we really haven't had the peaks and therefore aren't suffering through the valleys that other parts of the country are in. I like to think of our regional economy as having a stabilizing effect on our local markets and, as such, we know it's helped our bank - and probably other banks in our market - avoid some of the pitfalls that were experienced by banks in other regions. Looking ahead, I don't see our regional economy having a huge rebound either. But I think it's easier for us to manage over the long term, knowing that the regional economy within which we operate has remained relatively stable.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 130 page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.

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