Exhibit 99.1

FOR IMMEDIATE RELEASE:


Contact:		Peter J. Corso Executive VP & Treasurer (518) 673-3243

CNB FINANCIAL CORP. REPORTS SECOND QUARTER 2001 EARNINGS

CNB Financial Corp. (Nasdaq: CNBF) today announced that core cash earnings, were $0.28 diluted earnings per share, or $2.065 million for the quarter ended June 30, 2001 compared to $0.34 diluted earnings per share, or $2.543 million for the same period in 2000. Core cash earnings, as reported by the Company, excludes goodwill amortization, securities write-downs, and a transition adjustment for the cumulative effect of a change in accounting principle. Diluted earnings per share, stated in accordance with generally accepted accounting principles, were $0.25, or $1.865 million for the quarter ended June 30, 2001, compared to $0.25 diluted earnings per share, or $1.912 million for the same period in 2000. Diluted earnings per share were $0.52, or $3.881 million for the six-months ended June 30, 2001, compared to $0.54, or $4.096 million for the same period in 2000.

The primary reason for the decrease in core cash earnings for the quarter ended June 30, 2001 when compared to the same period in 2000 can be attributed to a decrease in the Company’s net interest margin. The Company’s net interest margin for the quarter ended June 30, 2001 was 3.49%, a decrease of 43 basis points from net interest margin of 3.92% for the same period in 2000. The decrease in net interest margin resulted in a decrease of $656,000 in net interest income for the quarter ended June 30, 2001 when compared to the same period in 2000. The Company anticipates that the net interest margin will increase in the third quarter of 2001.

Total loans and leases outstanding at June 30, 2001 amounted to $546.895 million as compared to $531.384 million and $497.454 million at March 31, 2001 and June 30, 2000, respectively. The increase from the prior year is primarily the result of continued focus on commercial and residential mortgage lending. Total assets at June 30, 2001 amounted to $992.601 million compared to $945.162 million at June 30, 2000. Total deposits increased from $792.448 million at June 30, 2000 to $839.609 million at June 30, 2001. The increase in deposits is primarily related to entering several new markets during 1999 and 2000.

On June 19, 2001, the Company announced it entered into a definitive agreement to merge into NBT Bancorp Inc. Under the terms of the agreement, the Company’s stockholders will receive 1.2 shares of NBT Bancorp Inc. common stock for each share of CNB Financial Corp. common stock. The merger, which has been unanimously approved by the boards of directors of CNB Financial Corp. and NBT Bancorp Inc., is subject to regulatory approvals as well as approvals by each company’s shareholders and is expected to close in the fourth quarter of 2001.

Headquarted in Canajoharie, New York, CNB Financial Corp. is the holding company for Central National Bank, Canajoharie, and Central Asset Management, Inc. Central National Bank provides a broad range of deposit and loan products to area consumers, businesses and government entities. The Bank operates 29 full service branch offices and two financial service centers throughout nine counties in Central New York. Central Asset Management provides investment advisory services. Visit our web site on the World Wide Web at http://www.canajocnb.com.

Except for historical information contained herein, the matters discussed in this news release and other information contained in CNB Financial Corp.’s Securities and Exchange Commission filings may express “forward-looking statements”. Those “forward-looking statements” may involve risks and uncertainties, including statements concerning future events or performance and assumptions and other statements that are other than statements of historical facts. CNB Financial Corp. wishes to caution readers not to place undue reliance on any “forward-looking statements”, which speak only as of the date made. Readers are advised that various risk factors, including but not limited to: (1) credit risk, (2) interest rate risk, (3) competition, (4) technology risk, (5) changes in the regulatory environment, (6) changes in general business and economic trends, and (7) delay of or failure to complete the merger with NBT Bancorp. Inc., could cause the actual results or circumstances for future periods to differ materially from those anticipated or projected. CNB Financial Corp. does not undertake, and specifically disclaims any obligation, to publicly release the results of any revisions that may be made to any “forward-looking statements” to reflect the occurrence of unanticipated events or circumstances after the date of such statement.

This news release may be deemed to be solicitation material in respect of the proposed merger of CNB Financial Corp. (CNB) with NBT Bancorp Inc. (NBT) pursuant to an Agreement and Plan of Merger, dated as of June 19, 2001, by and between NBT and CNB (the Agreement). Filing of this news release is being made in connection with Regulation of Takeovers and Security Holder Communications (Release No. 33-7760, 34-42055) promulgated by the Securities and Exchange Commission (SEC).

CNB and its directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the transactions contemplated by the Agreement. These directors and executive officers include the following: Van Ness D. Robinson, Donald L. Brass, Peter J. Corso, Holly C. Craver, Michael D. Hewitt, J. Carl Barbic, Joseph A. Santangelo and John P. Woods, Jr. As of May 31, 2001, these directors and executive officers beneficially owned in the aggregate 586,026 shares, or approximately 7.90 percent of CNB’s outstanding common stock. Additional information about the directors and executive officers of CNB is included in CNB’s proxy statement for its 2001 Annual Meeting of Shareholders dated April 3, 2001.

In conjunction with the proposed merger, NBT will file with the SEC a registration statement on SEC Form S-4. The registration statement will contain a joint proxy statement/prospectus, which describes the proposed merger of NBT and CNB and the proposed terms and conditions of the merger. Stockholders of NBT and CNB are encouraged to read the registration statement after it is filed and the joint proxy statement/prospectus contained in the registration statement, because these documents will contain important information about the merger. The registration statement, including the joint proxy statement/prospectus, will be available for free, both on the SEC’s web site (www.sec.gov) or by contacting NBT Bancorp Inc., Attention: Michael J. Chewens, 52 South Broad Street, Norwich, New York 13815, telephone 607-337-6520; or CNB Financial Corp., Attn: Holly C. Craver, 24 Church Street, Canajoharie, New York 13317, telephone 518-673-3243

Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934.

CNB Financial Corp.
Summary of Unaudited Quarterly Financial Data


		2001						2000
		30-Jun			31-Mar			31-Dec			30-Jun

					(Amounts in thousands)
*Condensed consolidated balance sheets*




Cash and due from banks		$	14,319		$	15,725		$	16,528		$	19,350




Federal funds sold			—			3,700			—			—




Trading securities			9,550			6,994			—			—




Securities available for sale			388,066			372,090			365,409			390,192




Loans and leases			546,895			531,384			533,112			497,454




Allowance for loan and lease losses			(8,435	)		(8,277	)		(8,145	)		(8,736	)

	Net loans and leases		538,460			523,107			524,967			488,718

Goodwill			17,471			17,804			18,135			18,799





Other real estate owned and repossessed assets			941			1,102			1,134			888




Other assets			23,794			23,842			25,167			27,215

Total assets		$	992,601		$	964,364		$	951,340		$	945,162


Non-interest-bearing deposits		$	79,138		$	65,458		$	69,134		$	66,240




Interest-bearing deposits			760,471			764,106			730,804			726,208

Total deposits			839,609			829,564			799,938			792,448





Short-term borrowings			50,871			32,280			52,605			65,628




Long-term borrowings			5,385			5,560			5,658			5,851




Other liabilities			12,942			13,712			11,993			9,175

Total liabilities			908,807			881,116			870,194			873,102





Capital securities			18,000			18,000			18,000			18,000





Stockholders’ equity			65,794			65,248			63,146			54,060

Total liabilities, capital securities, and stockholders’ equity		$	992,601		$	964,364		$	951,340		$	945,162


*Condensed consolidated income statements*





Interest income		$	16,998		$	17,275		$	17,740		$	17,597




Interest expense			9,023			9,339			10,006			8,966

Net interest income			7,975			7,936			7,734			8,631




Provision for loan and lease losses			360			260			395			320


Net interest income after provision for loan and lease losses			7,615			7,676			7,339			8,311

Non-interest income:




Service charges on deposit accounts			759			633			697			644




Net gain (loss) on securities transactions (1)			224			640			(808	)		(645	)




Other income			472			472			516			567

	Total non-interest income		1,455			1,745			405			566

Non-interest expenses:




Salaries and employee benefits			2,398			2,666			2,046			2,305




Occupancy and equipment			798			811			646			700




Data processing			678			714			680			610




Goodwill			331			332			332			331




Capital securities			361			427			427			420




Other expenses			1,815			1,512			2,403			1,916

	Total non-interest expenses		6,381			6,462			6,534			6,282

Income before income tax expense and cumulative effect change in accounting principle			2,689			2,959			1,210			2,595




Income tax expense			824			848			360			683


Net income before cumulative effect change in accounting principle			1,865			2,111			850			1,912





Cumulative effect change in accounting principle, net of tax (2)			—			(95	)		—			—

Net income		$	1,865		$	2,016		$	850		$	1,912

(1)		Includes write-downs taken for the other-than-temporary impairment on corporate debt securities totaling $1.181 million and $720,000 for the quarters ended December 31, 2000 and June 30, 2000, respectively.

(2)		Cumulative effect change in accounting principle is due to the adoption of Statement of Financial Accounting Standards No. 133 “Accounting for Derivative Instruments and Hedging Activities”, which resulted in a $159,000 pre-tax transition adjustment.


	(Dollars in thousands, exluding per share amounts)




*Financial Highlights*





Per common share:




Basic earnings —Before cumulative effect (1)	$	0.25		$	0.28		$	0.11		$	0.26




Basic earnings —After cumulative effect (1)	$	0.25		$	0.27		$	0.11		$	0.26




Diluted earnings —Before cumulative effect (1)	$	0.25		$	0.28		$	0.11		$	0.25




Diluted earnings —After cumulative effect (1)	$	0.25		$	0.27		$	0.11		$	0.25




Core cash diluted earnings (2)	$	0.28		$	0.31		$	0.23		$	0.34





Common shares outstanding:




Average —diluted		7,508			7,495			7,485			7,507




Period end		7,421			7,474			7,474			7,475





Return on (annualized):




Average assets		0.76	%		0.86	%		0.36	%		0.81	%




Average stockholders’ equity		11.49	%		12.66	%		5.82	%		14.23	%




Average assets —core cash (2)		0.84	%		0.98	%		0.74	%		1.08	%




Average stockholders’ equity —core cash (2)		12.72	%		14.51	%		12.05	%		18.92	%





Yield on average earning assets (3)		7.38	%		7.79	%		7.84	%		7.91	%




Cost of interest-bearing liabilities		4.42	%		4.77	%		5.00	%		4.52	%




Net interest spread (3)		2.96	%		3.02	%		2.84	%		3.39	%




Net interest margin (3)		3.49	%		3.60	%		3.43	%		3.92	%




Loan quality:




Nonaccrual loans	$	4,432		$	4,283		$	4,415		$	4,792




Accruing loans past due 90 days or more		615			278			249			386

Total non-performing loans	$	5,047		$	4,561		$	4,664		$	5,178

Non-performing loans to total loans and leases		0.92	%		0.86	%		0.87	%		1.04	%




Allowance for loan and lease losses to non-performing loans		167.13	%		181.47	%		174.64	%		168.71	%




Allowance for loan and lease losses to total loans and leases		1.54	%		1.56	%		1.53	%		1.76	%

(1)		Cumulative effect change in accounting principle is due to the adoption of Statement of Financial Accounting Standards No. 133 “Accounting for Derivative Instruments and Hedging Activities”, which resulted in a $159,000 pre-tax transition adjustment ($95,000 after-tax).

(2)		Core cash earnings, as reported by the Company, excludes goodwill amortization, the write-downs taken for the other-than-temporary impairment on corporate debt securities, and the transition adjustment for the cumulative effect change in accounting principle.

(3)		Ratios are calculated using fully tax equivalent interest income.

CNB Financial Corp.
Summary of Unaudited Financial Data for the six months ended June 30, 2001 and 2000


		2001			2000
		30-Jun			30-Jun

*Condensed consolidated income statement*		(Amounts in thousands, excluding per share amounts)




Interest income		$	34,273		$	34,568




Interest expense			18,362			17,410

Net interest income			15,911			17,158




Provision for loan and lease losses			620			740

Net interest income after provision for loan and lease losses			15,291			16,418

Non-interest income:




Service charges on deposit accounts			1,392			1,224




Net gain (loss) on securities transactions (1)			864			(326	)




Other income			944			1,069

	Total non-interest income		3,200			1,967

Non-interest expenses:




Salaries and employee benefits			5,064			4,982




Occupancy and equipment			1,609			1,427




Data processing			1,392			1,231




Goodwill			663			663




Capital securities			788			835




Other expenses			3,327			3,685

	Total non-interest expenses		12,843			12,823


Income before income tax expense and cumulative effect change in accounting principle			5,648			5,562




Income tax expense			1,672			1,466


Net income before cumulative effect change in accounting principle			3,976			4,096





Cumulative effect change in accounting principle, net of tax (2)			(95	)		—

Net income		$	3,881		$	4,096

(1)		Includes write-down taken for the other-than-temporary impairment on corporate debt securities totaling $720,000 for the quarter ended June 30, 2000.

(2)		Cumulative effect change in accounting principle is due to the adoption of Statement of Financial Accounting Standards No. 133 “Accounting for Derivative Instruments and Hedging Activities”, which resulted in a $159,000 pre-tax transition adjustment.


*Financial Highlights*





Per common share:




Basic earnings —Before cumulative effect (1)	$	0.53		$	0.55




Basic earnings —After cumulative effect (1)	$	0.52		$	0.55




Diluted earnings —Before cumulative effect (1)	$	0.53		$	0.54




Diluted earnings —After cumulative effect (1)	$	0.52		$	0.54




Core cash diluted earnings (2)	$	0.58		$	0.65





Common shares outstanding:




Average —diluted		7,502			7,533




Period end		7,421			7,475





Return on (annualized):




Average assets		0.81	%		0.88	%




Average stockholders’ equity		12.07	%		15.05	%




Average assets —core cash (2)		0.91	%		1.06	%




Average stockholders’ equity —core cash (2)		13.61	%		18.11	%





Yield on average earning assets (3)		7.58	%		7.88	%




Cost of interest-bearing liabilities		4.59	%		4.43	%




Net interest spread (3)		2.99	%		3.45	%




Net interest margin (3)		3.54	%		3.96	%

(1)		Cumulative effect change in accounting principle is due to the adoption of Statement of Financial Accounting Standards No. 133 “Accounting for Derivative Instruments and Hedging Activities”, which resulted in a $159,000 pre-tax transition adjustment ($95,000 after-tax).

(2)		Core cash earnings, as reported by the Company, excludes goodwill amortization, the write-downs taken for the other-than-temporary impairment on corporate debt securities, and the transition adjustment for the cumulative effect change in accounting principle.

(3)		Ratios are calculated using fully tax equivalent interest income.

CNB FINANCIAL CORP /NY/ 8-K