CNB Bancorp, Inc. Announces Quarter and Year-to-Date Results and Quarterly Dividend Payment.

GLOVERSVILLE, N.Y. -- CNB Bancorp, Inc. (OTCBB:CNBI), parent of City National Bank and Trust Company, announced today that diluted earnings per share for the six months ended June 30, 2005 decreased 54.0% to $0.52 per share, when compared to the first six months of 2004. The Company reported diluted earnings per share of $1.13 for the first six months of 2004. Earnings per share on a fully diluted basis for the quarter ended June 30, 2004 decreased 102.0%, to a loss of $0.01 per share, when compared to the second quarter of 2004. The Company reported diluted earnings per share of $0.51 for the second quarter of 2004.

William N. Smith, Chairman of the Board and President of CNB Bancorp, Inc. commented, "These results occurred during a period of narrowing interest margins as the cost of deposits and other funding sources has risen more rapidly than rates on loans and investment securities."

Net income for the first six months of 2005 totaled $1,161,000 as compared to $2,516,000 for the corresponding period of 2004. The Company's 2005 earnings were negatively impacted during the first six months as a result of the decrease in net gains on sales and calls of securities available for sale of $206,000 and an increase in other expenses of $2,320,000. This was partially offset by an increase in net interest income of $198,000, a reduction in the provision for loan losses of $180,000 and a lower provision for income taxes of $711,000 when compared to the first six months of 2004. The increase in other expenses primarily relates to additional operating expenses related to the two branches acquired from HSBC BANK USA on July 30, 2004, expenses associated with the planned acquisition of the Company by NBT Bancorp, Inc. and expenses incurred with complying with the provisions of Sarbanes-Oxley legislation. The higher salaries and employee benefits were also due to normal salary adjustments, higher pension expense and increases in medical insurance premiums. Due primarily to the additional expenses noted above, the Company incurred a net loss of $33,000 for the quarter ended June 30, 2005 as compared to net income of $1,139,000 for the corresponding period of 2004. Increases in other expenses as discussed above continued to reduce earnings more than the offsetting reduction in the loan loss provision, the provision for taxes and the increase in the net interest income.

Mr. Smith said the lower results for the six month period ended June 30, 2005 were also impacted by a decrease in the net interest margin, fully tax effected, from 4.00% for 2004 as compared to 3.84% for 2005. The lower net interest margin was offset by an increase in the average earning assets over the interest-bearing liabilities of $8.4 million from the first six months of 2004 to 2005 resulting in a net increase in the net interest income of $198,000. For the quarter ended June 30, 2005 the net interest margin, fully tax effected, decreased to 3.81% as compared to 3.99% for the same period of 2004. Average earning assets increased by $7.9 million over interest bearing liabilities providing an increase in the net interest income of $79,000.

The Company's total assets were $419,697,000 at June 30, 2005, or 0.6% below the $422,169,000 at December 31, 2004. Loans outstanding at June 30, 2005 were $201,717,000, up 7.0% from $188,535,000 at December 31, 2004. Commercial lending was primarily responsible for this increase with total outstandings increasing $11,306,000. Consumer mortgage and installment lending also had small increases during the first six months of 2005. Securities available for sale decreased from $189,176,000 at December 31, 2004 to $169,244,000 at June 30, 2005, a decrease of 10.5%. Funds from securities sold, maturities and paydowns on mortgage-backed securities have been used to fund loan growth and reduce borrowings at the Federal Home Loan Bank. Deposits at June 30, 2005 were $342,610,000, an increase of 3.3% from $331,634,000 at December 31, 2004. Increases in Demand, Certificates and Time Deposits of $100,000 or more and Other Time Deposits more than offset the decline in Regular Savings, NOW and Money Market Accounts. Depositors are beginning to move money out of savings and money market accounts and investing these funds in certificates of deposit as short term rates have been rising due to recent increases by the Federal Reserve Bank.

Stockholders' equity at June 30, 2005 was $39,967,000 as compared to $40,021,000 at December 31, 2004. This resulted in an equity to total assets ratio of 9.5% at June 30, 2005, virtually unchanged from 9.5% at December 31, 2004, a ratio that is over twice the regulatory minimum guideline of 4.0%.

At a meeting of the Board of Directors held on July 25, 2005, a cash dividend of $.21 per share was declared. The dividend will be paid August 15, 2005 to shareholders of record as of August 8, 2005. The quarterly dividend of $.21 per share represents an increase of 5.0% compared to the third quarter of 2004.

CNB Bancorp, Inc. is a financial holding company with its principal office in Gloversville, New York. The Company operates two subsidiaries: City National Bank and Trust Company, which provides a full range of personal and commercial banking products as well as personal and business trust services; and Hathaway Insurance Agency, Inc., which provides general insurance services.

This news release may be deemed to include forward-looking statements, such as statements that relate to financial goals, business outlook and credit quality. Actual results could differ materially from those indicated by these statements. CNB Bancorp's 2004 Annual Report to Shareholders and 2004 and 2005 periodic reports to the SEC, including the section of the Annual Report of Form 10-K for the year ended December 31, 2004 captioned "Forward-Looking Information," contain additional information about factors that could affect actual results.