UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20547

                                    FORM 10-Q

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

    For the quarterly period ended               September 30, 1999
                                   ---------------------------------------------

                                   or

[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR  15(d)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934

     Commission file Number                      000-23419
                            ----------------------------------------------------

                                    NMBT CORP
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

        Delaware                                       06-1496548
-------------------------------             ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)

55 Main Street, New Milford, Connecticut                 06776-2400
----------------------------------------      ----------------------------------
(Address of principal executive offices)                 (ZIP Code)

Registrant's telephone number, including area code       (860) 355-1171
                                                   -----------------------------


     INDICATE  BY CHECK MARK  WHETHER THE  REGISTRANT  (1) HAS FILED ALL REPORTS
REQUIRED TO BE FILED BY SECTION 13 OR 15(D) OF THE  SECURITIES  EXCHANGE  ACT OF
1934  DURING  THE  PRECEDING  12 MONTHS  (OR FOR SUCH  SHORTER  PERIOD  THAT THE
REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS),  AND (2) HAS BEEN SUBJECT TO SUCH
FILING REQUIREMENTS FOR THE PAST 90 DAYS. [ X ] YES [ ] NO

     The number of shares of Common Stock, par value $.01 per share, outstanding
as of November 10, 1999 was 2,689,558.

<PAGE>


NMBT CORP
Form 10Q
September 30, 1999



                                    TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                       Page
                                                                                                       ----
<S>                                                                                                     <C>
PART I-FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

         Consolidated Statements of Condition (Unaudited)
                  September 30, 1999 and December 31, 1998                                               3

         Consolidated Statements of Operations (Unaudited)
                  Nine Months and Three Months Ended
                  September 30, 1999 and September 30, 1998                                              4

         Consolidated Statements of Comprehensive Income (Unaudited)
                  Nine Months and Three Months Ended
                  September 30, 1999 and September 30, 1998                                              5

         Consolidated Statements of Cash Flows (Unaudited)
                  Nine Months Ended September 30, 1999 and September 30, 1998                            6

         Consolidated Statements of Changes in Stockholders' Equity (Unaudited)
                  Nine Months Ended September 30, 1999 and September 30, 1998                            7

         Notes to Consolidated Financial Statements                                                      8

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS                                                  13

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                     17


PART II-OTHER INFORMATION

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                            18

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                                                               18

SIGNATURES                                                                                              19
</TABLE>

                                       2

<PAGE>



                                    NMBT CORP
                CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
                     DOLLARS IN THOUSANDS, EXCEPT SHARE DATA

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
                                                                                SEPTEMBER 30, 1999        DECEMBER 31, 1998
                                                                          --------------------------------------------------
<S>                                                                                        <C>                      <C>
ASSETS
Cash and due from banks                                                                    $20,851                  $13,934
Interest-bearing deposits                                                                    3,143                   13,730
----------------------------------------------------------------------------------------------------------------------------
        Cash and cash equivalents                                                           23,994                   27,664
----------------------------------------------------------------------------------------------------------------------------

Securities:
Available for sale, at fair value (amortized cost of $68,981 in
   1999 and $75,302 in 1998)                                                                67,080                   76,326
Held to maturity, at amortized cost (fair value of $47,929 in
   1999 and $40,769 in 1998)                                                                49,535                   40,364
----------------------------------------------------------------------------------------------------------------------------
        Total securities                                                                   116,615                  116,690
----------------------------------------------------------------------------------------------------------------------------

Loans                                                                                      244,687                  229,945
Less allowance for loan losses                                                               4,071                    3,839
----------------------------------------------------------------------------------------------------------------------------
        Loans, net                                                                         240,616                  226,106
----------------------------------------------------------------------------------------------------------------------------

Real estate owned, net                                                                         115                        -
Premises and equipment, net                                                                  3,492                    3,546
Excess of cost over fair value of net assets acquired, net                                      95                      271
Accrued interest and other assets                                                            6,948                    6,204
----------------------------------------------------------------------------------------------------------------------------

        Total assets                                                                      $391,875                 $380,481
============================================================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
        Noninterest-bearing checking                                                       $45,898                  $44,414
        Interest-bearing checking                                                          100,613                   99,216
        Savings                                                                             76,319                   72,334
        Time deposits under $100                                                            70,843                   77,662
        Time deposits $100 or more                                                          17,846                   17,997
----------------------------------------------------------------------------------------------------------------------------
        Total deposits                                                                     311,519                  311,623
----------------------------------------------------------------------------------------------------------------------------

Advances from Federal Home Loan Bank of Boston (FHLB)                                       48,859                   37,672
Accrued interest and other liabilities                                                       2,691                    2,498
----------------------------------------------------------------------------------------------------------------------------
        Total liabilities                                                                  363,069                  351,793
----------------------------------------------------------------------------------------------------------------------------

Stockholders' equity:
        Common stock, $0.01 par value
        Shares authorized:    8,000,000
        Shares outstanding:  1999 - 2,668,558;  1998 - 2,663,358                                27                       27
        Additional paid-in capital                                                          18,205                   18,143
        Retained earnings                                                                   11,829                    9,842
        Accumulated other comprehensive income (loss),
          net of tax                                                                        (1,255)                     676
----------------------------------------------------------------------------------------------------------------------------
        Total stockholders' equity                                                          28,806                   28,688
----------------------------------------------------------------------------------------------------------------------------

        Total liabilities and stockholders' equity                                        $391,875                 $380,481
============================================================================================================================

See notes to consolidated financial statements.
----------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       3
<PAGE>

                                    NMBT CORP
                CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                       IN THOUSANDS, EXCEPT PER SHARE DATA

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                                                                            NINE MONTHS ENDED          THREE MONTHS ENDED
                                                                              SEPTEMBER 30,              SEPTEMBER 30,
                                                                                1999         1998         1999           1998
                                                                         ------------ ------------ ------------ --------------
<S>                                                                          <C>          <C>           <C>            <C>
INTEREST AND DIVIDEND INCOME
Interest and fees on loans                                                   $12,846      $13,638       $4,400         $4,659
U.S. Treasury and agency securities                                            4,197        3,488        1,434          1,288
Municipal securities                                                             755          626          268            215
Corporate securities                                                             176            -           85              -
Dividends on FHLB stock                                                          108           87           41             30
Interest-bearing deposits                                                        295          252           78             51
------------------------------------------------------------------------------------------------------------------------------
        Total interest and dividend income                                    18,377       18,091        6,306          6,243
------------------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Interest-bearing checking                                                        981        1,143          340            398
Savings                                                                        1,231        1,121          427            396
Time deposits under $100                                                       2,589        3,185          807          1,045
Time deposits $100 or more                                                       681          724          221            235
FHLB advances and capital leases                                               1,823        1,395          683            516
------------------------------------------------------------------------------------------------------------------------------
        Total interest expense                                                 7,305        7,568        2,478          2,590
------------------------------------------------------------------------------------------------------------------------------
Net interest and dividend income                                              11,072       10,523        3,828          3,653
Provision for loan losses                                                        207          341            -             75
------------------------------------------------------------------------------------------------------------------------------
Net interest and dividend income after provision for loan losses              10,865       10,182        3,828          3,578
------------------------------------------------------------------------------------------------------------------------------
NONINTEREST INCOME
Service charges on deposit accounts                                              756          748          245            259
Other service charges, commissions and fees                                      280          285          103            104
Loan servicing fees                                                              178           65           66             29
Gain on sale of securities                                                         3           51            3              -
Net gains from loans sold                                                        389          718           80            323
Other income                                                                     169           96           33             41
------------------------------------------------------------------------------------------------------------------------------
        Total noninterest income                                               1,775        1,963          530            756
------------------------------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE
Compensation, payroll taxes and benefits                                       4,803        4,539        1,605          1,574
Occupancy                                                                        814          779          264            274
Furniture and equipment                                                          588          577          192            201
Data processing                                                                  282          278          100            111
Stationery, printing and supplies                                                274          350           80            122
Marketing, advertising and investor relations                                    343          310           44             98
Legal and professional fees                                                      281          221           76            144
Other general and administrative expense                                       1,161        1,120          401            373
------------------------------------------------------------------------------------------------------------------------------
        Total general and administrative expense                               8,546        8,174        2,762          2,897
Operations of real estate owned                                                 (249)          46          (21)            (3)
Amortization of intangible assets                                                176          176           59             59
------------------------------------------------------------------------------------------------------------------------------
        Total noninterest expense                                              8,473        8,396        2,800          2,953
------------------------------------------------------------------------------------------------------------------------------
Income before provision for income taxes                                       4,167        3,749        1,558          1,381
Provision for income taxes                                                     1,381        1,417          424            531
------------------------------------------------------------------------------------------------------------------------------
Net income                                                                    $2,786       $2,332       $1,134           $850
==============================================================================================================================
Basic earnings per share                                                       $1.05        $0.88        $0.43          $0.32
Diluted earnings per share                                                     $1.01        $0.83        $0.41          $0.30
------------------------------------------------------------------------------------------------------------------------------
Average basic shares outstanding                                               2,665        2,639        2,665          2,639
Average diluted shares outstanding                                             2,756        2,811        2,756          2,811
------------------------------------------------------------------------------------------------------------------------------
Cash dividends per share                                                       $0.30        $0.26        $0.10          $0.09
------------------------------------------------------------------------------------------------------------------------------

See notes to consolidated financial statements.
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
                                       4
<PAGE>

                                    NMBT CORP
           CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
                                  IN THOUSANDS

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                                            NINE MONTHS ENDED          THREE MONTHS ENDED
                                                                              SEPTEMBER 30,               SEPTEMBER 30,
                                                                            1999          1998          1999         1998
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                                       <C>            <C>           <C>          <C>
Net Income                                                                $ 2,786        $2,332        $1,134       $  850
Other comprehensive income (loss), net of tax:
  Unrealized net gains (losses) on securities:
    Unrealized net holding gains (losses) arising during period           $(1,929)       $  751        $ (302)      $  778
    Less: reclassification adjustment for gains included in net income         (2)          (34)           (2)           -
-----------------------------------------------------------------------------------------------------------------------------
Other comprehensive income   (loss)                                        (1,931)          717          (304)         778
-----------------------------------------------------------------------------------------------------------------------------
Comprehensive income                                                      $   855        $3,049        $  830       $1,628
-----------------------------------------------------------------------------------------------------------------------------


See notes to consolidated financial statements.
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       5
<PAGE>

                                    NMBT CORP
                CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                  IN THOUSANDS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
                                                                                         NINE MONTHS ENDED
                                                                               SEPTEMBER 30, 1999        SEPTEMBER 30, 1998
                                                                         ------------------------- -------------------------
<S>                                                                                        <C>                       <C>
OPERATING ACTIVITIES
Net Income                                                                                 $2,786                    $2,332
Adjustments to reconcile net income to net cash provided by
   Operating activities:
   Depreciation and amortization                                                              592                       574
   Provision for loan losses                                                                  207                       341
   Net amortization of securities                                                             198                       154
   Deferred income taxes                                                                      116                       202
   Realized securities gains, net                                                              (3)                      (51)
   Loans originated for sale                                                              (50,101)                  (61,464)
   Proceeds from loans sold, net                                                           53,834                    59,836
   Gains from loans sold, net                                                                (390)                     (719)
   Realized gains from real estate owned sales, net                                          (331)                      (42)
   (Increase) decrease in interest receivable                                                 292                      (207)
   (Increase) decrease in other assets                                                        209                      (175)
   Increase in interest payable                                                                34                        61
   Increase in other liabilities                                                              159                        66
----------------------------------------------------------------------------------------------------------------------------
   Net cash provided by operating activities                                                7,602                       908
----------------------------------------------------------------------------------------------------------------------------

INVESTING ACTIVITIES
Purchases of held to maturity (HTM) securities                                            (16,930)                  (15,000)
Net loan originations                                                                     (18,952)                   (8,731)
Purchases of available for sale (AFS) securities                                           (8,951)                  (36,197)
Net purchases of premises and equipment                                                      (362)                     (357)
Proceeds from sales of real estate owned                                                      743                       267
Proceeds from maturities of AFS securities                                                  8,755                    10,046
Proceeds from maturities of HTM securities                                                  7,694                    13,046
Proceeds from sales of AFS securities                                                       6,866                     2,371
Purchases of FHLB stock                                                                      (480)                     (175)
----------------------------------------------------------------------------------------------------------------------------
   Net cash used for investing activities                                                 (21,617)                  (34,730)
----------------------------------------------------------------------------------------------------------------------------

FINANCING ACTIVITIES
Net increase in advances from FHLB                                                         11,187                    16,390
Net decrease in time deposits                                                              (6,970)                   (2,541)
Net increase in checking and savings deposits                                               6,866                    16,735
Cash dividends                                                                               (799)                     (685)
Net proceeds from exercise of stock options                                                    62                       537
Other                                                                                          (1)                      (19)
----------------------------------------------------------------------------------------------------------------------------
   Net cash provided by financing activities                                               10,345                    30,417
----------------------------------------------------------------------------------------------------------------------------

Decrease in cash and cash equivalents                                                      (3,670)                   (3,405)
Cash and cash equivalents, beginning of period                                             27,664                    22,762
----------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of period                                                  $23,994                   $19,357
============================================================================================================================

CASH PAID DURING PERIOD
Interest to depositors and creditors                                                       $7,270                    $7,507
Income taxes                                                                                1,049                     1,385

NON-CASH TRANSFERS
Transfer of loans to real estate owned                                                        677                        25
Net change in unrealized gains on AFS securities                                           (1,931)                      717
Financed portion of sales of real estate owned                                                151                        12

See notes to consolidated financial statements.
----------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       6
<PAGE>

                                    NMBT CORP
     CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)
                                  IN THOUSANDS

<TABLE>
<CAPTION>
   -------------------------------------------------------------------------------------------------------------------------------
                                      TOTAL         RETAINED     ACCUMULATED OTHER  COMMON STOCK     ADDITIONAL         SHARES
                                  STOCKHOLDERS'     EARNINGS       COMPREHENSIVE                  PAID-IN CAPITAL     OUTSTANDING
                                     EQUITY                        INCOME (LOSS)
   -------------------------------------------------------------------------------------------------------------------------------
<S>                                   <C>             <C>                   <C>            <C>          <C>                 <C>
   JANUARY 1, 1998                    $25,330         $7,548                $378           $26          $17,378             2,615

   Net income                           2,332          2,332
   Other comprehensive
   income                                 717                                717
   Proceeds from exercise
   of stock options                       537                                                               537                29
   Cash dividends                        (684)          (684)
                              ----------------------------------------------------------------------------------------------------

   SEPTEMBER 30, 1998                 $28,232         $9,196              $1,095           $26          $17,915             2,644
                              ====================================================================================================



   JANUARY 1, 1999                    $28,688         $9,842                $676           $27          $18,143             2,663

   Net income                           2,786          2,786
   Other comprehensive loss            (1,931)                            (1,931)
   Proceeds from exercise
   of stock options                        62                                                                62                 6
   Cash dividends                        (799)          (799)
                              ----------------------------------------------------------------------------------------------------

   SEPTEMBER 30, 1999                 $28,806        $11,829             $(1,255)          $27          $18,205             2,669
                              ====================================================================================================


   See notes to consolidated financial statements.
   -------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       7
<PAGE>


NMBT CORP
NOTES TO UNAUDITED FINANCIAL STATEMENTS


NOTE 1.  BASIS OF PRESENTATION

NMBT CORP (the "Company"),  a Delaware corporation formed in November,  1997, is
the registered bank holding company for NMBT, a wholly owned subsidiary. NMBT is
a  state-chartered  commercial bank and is the Company's only subsidiary and its
primary investment.

The interim unaudited consolidated financial statements of the Company have been
prepared in conformity with generally accepted  accounting  principles.  Certain
financial  information  that is normally  included in the  financial  statements
prepared in accordance with generally accepted accounting principles,  but which
is not required for interim reporting  purposes,  has been condensed or omitted.
In preparing the interim  financial  statements,  management is required to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  as of the date of the balance  sheet and  revenues and expenses for
the period. Actual results could differ significantly from those estimates.

In the opinion of management,  the accompanying  interim unaudited  consolidated
financial  statements  contain all adjustments  (consisting of normal  recurring
adjustments)  necessary to present fairly the Company's financial position as of
September 30, 1999, and the results of its operations,  comprehensive income and
its cash flows for the nine months then ended. The results of operations for the
periods shown are not  necessarily  indicative of the results to be expected for
the  year  ending  December  31,  1999.  The  accompanying   interim   unaudited
consolidated  financial  statements  should  be read  in  conjunction  with  the
consolidated  financial  statements and notes thereto  included in the Company's
1998 Annual Report.

MERGER AGREEMENT
On October 3, 1999,  the Company and Summit Bancorp  ("Summit")  entered into an
Agreement and Plan of Merger (the "Merger  Agreement") which provides for, among
other things, the acquisition of the Company by Summit through a stock-for-stock
exchange.   The  Merger  Agreement   provides  for  the  following   alternative
transactional  structures:  (i) the merger of the Company into Summit;  (ii) the
merger of the Company into a  wholly-owned  subsidiary  of Summit;  or (iii) the
merger  of  a   wholly-owned   subsidiary   of  Summit  into  the  Company  (the
"Acquisition"). Under the terms of the Merger Agreement, each stockholder of the
Company will receive between 0.7024 and 0.9503 shares of Summit common stock for
each share of the  Company's  common  stock.  The exact  exchange  ratio will be
determined  based on the  price of  Summit  common  stock  prior to  closing  as
follows:  (i) if the average of the closing  prices of a share of Summit  common
stock on the New York  Stock  Exchange  Composite  Transaction  List for the ten
consecutive  full trading days ending on a date to be  determined  which will be
between  five (5) and ten (10)  business  days  prior to the  closing  date (the
Summit  Price"),  is equal to or between  $27.36 and $37.02,  the exchange ratio
will be $26.00  divided  by that  average  price;  (ii) if the  Summit  Price is
greater than $37.02, the exchange ratio will be fixed at 0.7024 shares of Summit
common  stock for each  share of the  Company's  common  stock;  or (iii) if the
Summit  Price is less than $27.36,  the  exchange  ratio will be fixed at 0.9503
shares of Summit common stock for each share of the Company's  common stock. The
transaction  will be a tax-free  exchange to the holders of the Company's common
stock and will be accounted for on a purchase basis.  The Boards of Directors of
the Company and Summit expect the  transaction  to close in the first quarter of
2000.

The  transaction  may be  terminated by the Board of Directors of the Company if
the Summit Price is less than $26.39 and reflects a 15% or more drop in price as
compared to an index  created  from the current  stock  prices of fourteen  (14)
banking  institutions  deemed to be similar to Summit in terms of size and other
factors.

The  Acquisition is subject to customary  conditions,  including but not limited
to, the approval of federal bank regulatory authorities, the Connecticut Banking
Commissioner and the Company's stockholders. As of the date of this document, we
do not believe that any of these events has occurred.

In  connection  with the Merger  Agreement,  the Company has issued an option to
Summit, which, upon the

                                       8
<PAGE>

NMBT CORP
Form 10Q
September 30, 1999

occurrence  of certain  events,  entitles  Summit to purchase up to 19.9% of the
outstanding  common stock of the Company at a per share  exercise price equal to
$18.87.

As a result of the  transaction,  the Company's  Board of Directors  will call a
special  meeting of  stockholders  to vote on the  proposed  transaction.  It is
anticipated that the Board of Directors will take action to set the date for the
special stockholders' meeting prior to December 31, 1999.

NOTE 2.  SECURITIES

The aggregate  amortized cost and estimated fair values of securities  available
for sale at September 30, 1999 and December 31, 1998 are as follows:

<TABLE>
<CAPTION>
  -----------------------------------------------------------------------------------------------------------------
                                                                      SEPTEMBER 30, 1999
  -----------------------------------------------------------------------------------------------------------------
  Dollars in thousands                                              GROSS            GROSS
                                                                 UNREALIZED        UNREALIZED      ESTIMATED FAIR
                                              AMORTIZED COST        GAINS            LOSSES            VALUE
  -----------------------------------------------------------------------------------------------------------------
<S>                                                   <C>                   <C>           <C>              <C>
  U.S. Treasury and agency                            $39,749               $-            $1,637           $38,112
  Municipal                                            24,666              154               226            24,594
  Corporate                                             2,106                -               192             1,914
  -----------------------------------------------------------------------------------------------------------------
  Total debt securities                                66,521              154             2,055            64,620
  FHLB Stock                                            2,460                -                 -             2,460
  -----------------------------------------------------------------------------------------------------------------
  Total securities available for sale                 $68,981             $154            $2,055           $67,080
  =================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
  -----------------------------------------------------------------------------------------------------------------
                                                                      DECEMBER 31, 1998
  -----------------------------------------------------------------------------------------------------------------
  Dollars in thousands                                              GROSS            GROSS
                                                                 UNREALIZED        UNREALIZED     ESTIMATED FAIR
                                              AMORTIZED COST        GAINS            LOSSES            VALUE
  -----------------------------------------------------------------------------------------------------------------
<S>                                                   <C>                 <C>               <C>           <C>
  U.S. Treasury and agency                            $50,204             $434              $140          $50,498
  Municipal                                            20,797              698                 2           21,493
  Mortgage-backed                                       1,236               19                 -            1,255
  Corporate                                             1,085               15                 -            1,100
  -----------------------------------------------------------------------------------------------------------------
  Total debt securities                                73,322            1,166               142           74,346
  FHLB Stock                                            1,980                -                 -            1,980
  -----------------------------------------------------------------------------------------------------------------
  Total securities available for sale                 $75,302           $1,166              $142          $76,326
  =================================================================================================================
</TABLE>



                                       9
<PAGE>

NMBT CORP
Form 10Q
September 30, 1999

The aggregate  amortized  cost and estimated  fair values of securities  held to
maturity at September 30, 1999 and December 31, 1998 are as follows:

<TABLE>
<CAPTION>
  -----------------------------------------------------------------------------------------------------------------
                                                                      SEPTEMBER 30, 1999
  -----------------------------------------------------------------------------------------------------------------
  Dollars in thousands                                              GROSS            GROSS
                                                                 UNREALIZED        UNREALIZED     ESTIMATED FAIR
                                              AMORTIZED COST        GAINS            LOSSES            VALUE
  -----------------------------------------------------------------------------------------------------------------
<S>                                                   <C>                  <C>            <C>             <C>
  U.S. Treasury and agency                            $36,008              $15            $1,426          $34,597
  Mortgage-backed                                      10,550               60                48           10,562
  Corporate                                             2,977                -               207            2,770
  -----------------------------------------------------------------------------------------------------------------
  Total securities held to maturity                   $49,535              $75            $1,681          $47,929
  =================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
  -----------------------------------------------------------------------------------------------------------------
                                                                      DECEMBER 31, 1998
  -----------------------------------------------------------------------------------------------------------------
  Dollars in thousands                                              GROSS            GROSS
                                                                 UNREALIZED        UNREALIZED     ESTIMATED FAIR
                                              AMORTIZED COST        GAINS            LOSSES            VALUE
  -----------------------------------------------------------------------------------------------------------------
<S>                                                   <C>                 <C>                <C>          <C>
  U.S. Treasury and agency                            $25,008             $250               $24          $25,234
  Mortgage-backed                                      14,308              207                17           14,498
  Corporate                                             1,048                -                11            1,037
  -----------------------------------------------------------------------------------------------------------------
  Total securities held to maturity                   $40,364             $457               $52          $40,769
  =================================================================================================================
</TABLE>


Proceeds from sales of debt  securities  were, in thousands,  $6,866 in 1999 and
$2,370 in 1998.  Gross gains, in thousands,  of $3 and $51,  respectively,  were
realized on these sales.  Securities  with a carrying  value of $2.0 million and
$3.0 million were pledged as collateral for public  deposits as of September 30,
1999 and December 31, 1998, respectively.


                                       10
<PAGE>

NMBT CORP
Form 10Q
September 30, 1999

NOTE 3.  LOANS AND ALLOWANCE FOR LOAN LOSSES


<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
In thousands                                          SEPTEMBER 30, 1999             DECEMBER 31, 1998
-------------------------------------------------------------------------------------------------------
<S>                                                             <C>                           <C>
Real estate                                                     $208,648                      $192,381
Commercial and industrial                                         16,410                        16,107
Installment and education                                          5,592                         7,137
Construction and development                                      13,254                        13,443
Cash reserve and credit cards                                        783                           877
-------------------------------------------------------------------------------------------------------
Total Loans                                                     $244,687                      $229,945
=======================================================================================================
</TABLE>


Changes in the allowance for loan losses were as follows:

<TABLE>
<CAPTION>
                                                                                      PERIOD ENDED
                                                                   ----------------------------------------------------
In thousands                                                              SEPTEMBER 30, 1999         DECEMBER 31, 1998
-----------------------------------------------------------------------------------------------------------------------
<S>                                                                                   <C>                       <C>
Allowance for loan losses at beginning of year                                        $3,839                    $3,537
Provision for loan losses charged against income                                         207                       371
Transfer to liability for estimated losses from off-balance
sheet credit instruments                                                                   -                     (110)
Charge-offs net of recoveries                                                             25                        41
-----------------------------------------------------------------------------------------------------------------------
Allowance for loan losses at end of period                                            $4,071                    $3,839
=======================================================================================================================
</TABLE>


Loans to executive officers,  principal  stockholders,  directors,  companies of
which directors are principal  owners,  and individuals  directly  related to or
affiliated with directors and executive  officers  aggregated  $2.63 million and
$2.50 million at September 30, 1999 and December 31, 1998, respectively.


NOTE 4.  EARNINGS PER SHARE

Basic  earnings  per share are  computed by dividing  net income by the weighted
average number of common shares  outstanding  during the period. The computation
of diluted  earnings per share is similar to the  computation  of basic earnings
per share  except that the  denominator  is  increased  to include the number of
additional  common  shares  that would  have been  outstanding  if the  dilutive
potential common shares, consisting solely of stock options, had been issued.

Weighted  average common shares  outstanding used to calculate basic and diluted
earnings per share for the six-month  periods ended  September 30, 1999 and 1998
were as follows:

<TABLE>
<CAPTION>
                                                                              NINE MONTHS ENDED
                                                            -------------------------------------------------------
           In thousands                                        SEPTEMBER 30, 1999          SEPTEMBER 30, 1998
           --------------------------------------------------------------------------------------------------------
<S>                                                                             <C>                          <C>
           Weighted average common shares:
              Basic                                                             2,665                        2,639
              Effect of dilutive stock options                                     91                          172
           --------------------------------------------------------------------------------------------------------
              Diluted                                                           2,756                        2,811
           ========================================================================================================
</TABLE>


                                       11
<PAGE>

NMBT CORP
Form 10Q
September 30, 1999

NOTE 5.  COMPREHENSIVE INCOME (LOSS)

On January 1, 1998,  the  Company  adopted  Statement  of  Financial  Accounting
Standards  No.  130  (SFAS  130),  "Reporting  Comprehensive  Income".  SFAS 130
requires the  reporting of  comprehensive  income in addition to net income from
operations.  Comprehensive  income  is  a  more  inclusive  financial  reporting
methodology  that includes  disclosure  of certain  financial  information  that
historically has not been recognized in the calculation of net income.

The Company held  securities  classified  as available for sale at September 30,
1999 and December 31, 1998, which had unrealized gains (losses).  The before-tax
and after-tax  amounts for these unrealized  gains (losses),  as well as the tax
(expense) benefits, are summarized as follows:

<TABLE>
<CAPTION>
                                                  SEPTEMBER 30, 1999                               DECEMBER 31, 1998
                                      -------------------------------------------      -------------------------------------------
In thousands                                             TAX
                                                      (EXPENSE)                                      TAX (EXPENSE)
                                       BEFORE TAX      BENEFIT       AFTER TAX          BEFORE TAX      BENEFIT       AFTER TAX
----------------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>              <C>          <C>                  <C>          <C>             <C>
Unrealized holding gains (losses)       $(1,904)         $647         $(1,257)             $1,075       $(365)          $710
Reclassification adjustment
for gains included in net income              3            (1)              2                 (51)         17            (34)
----------------------------------------------------------------------------------------------------------------------------------
Accumulated other
comprehensive income (loss)             $(1,901)         $646         $(1,255)             $1,024       $(348)          $676
==================================================================================================================== =============
</TABLE>


                                       12
<PAGE>

NMBT CORP
Form 10Q
September 30, 1999

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

GENERAL
The Company,  a Delaware  corporation  formed in 1997,  is the  registered  bank
holding company for NMBT, a wholly owned subsidiary  formed in 1975. NMBT is the
Company's only subsidiary and its primary investment.

FORWARD-LOOKING STATEMENTS

The  Company  has  made,  and may  continue  to  make,  various  forward-looking
statements  with respect to earnings,  credit  quality and other  financial  and
business  matters for periods  subsequent  to September  30,  1999.  The Company
cautions  that  these   forward-looking   statements  are  subject  to  numerous
assumptions, risks and uncertainties, and that statements relating to subsequent
periods increasingly are subject to greater uncertainty because of the increased
likelihood  of changes in underlying  factors and  assumptions.  Actual  results
could differ materially from forward-looking statements.

In  addition  to those  factors  previously  disclosed  by the Company and those
factors  identified  elsewhere herein,  the following factors could cause actual
results to differ materially from such forward-looking  statements:  competitive
pressures on loan and deposit  product  pricing;  other actions of  competitors;
changes in economic conditions; merger related factors; the extent and timing of
actions  of the  Federal  Reserve  Board;  customer  deposit  disintermediation;
changes in customers' acceptance of NMBT's products and services; and the extent
and timing of legislative and regulatory actions and reform.

The Company's forward-looking statements speak only as of the date on which such
statements  are made.  By making any  forward-looking  statements,  the  Company
assumes no duty to update them to reflect new, changing or unanticipated  events
or circumstances.

RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Net income increased 33.4% to $1.13 million,  or $0.41 per diluted share for the
third  quarter  ended  September  30,  1999,  as compared to net income of $0.85
million,  or $0.30 per diluted share for the third quarter of 1998. For the nine
months ended  September  30, 1999,  net income was $2.79  million,  or $1.01 per
diluted share, an increase of 19.5% over the same nine-month period in 1998.

Net  interest  and  dividend  income for the quarter  ended  September  30, 1999
increased by $0.17 million or 4.8% as compared to the third quarter of 1998. Net
interest and dividend  income for the first three  quarters of 1999 increased by
$0.55 million or 5.2%,  from the first three  quarters of 1998. The net interest
spread, the difference between the yield earned on loans and investments and the
rate  paid on  deposits  and  borrowings,  was 4.2% for the  nine  months  ended
September 30, 1999,  and 4.4% for the nine months ended  September 30, 1998. The
increase in net interest  income is a reflection  of increased  interest-earning
assets and was  accomplished  despite the continued  contraction in the interest
rate spread caused by customer  demand for fixed rate loans and increased  price
competition  for  loans  and  deposits.  This  pricing  pressure  was  offset by
increased loan volume and higher levels of earning assets.

Management estimates the allowance for loan losses based on an evaluation of the
Company's  past loan  experience,  known and  inherent  risks in the  portfolio,
estimated  value of  underlying  collateral,  and current  economic  conditions.
Establishing  the  allowance  for loan losses  involves  significant  management
judgments using the best information  available at the time. Those judgments are
subject  to  further  review  by  various   sources,   including  the  Company's
regulators. Adjustments to the allowance for loan losses may be necessary in the
future based on changes in economic and real estate market  conditions,  further
information obtained



                                       13
<PAGE>

NMBT CORP
Form 10Q
September 30, 1999

regarding known problem loans, the  identification of additional  problem loans,
and other  factors.  The  provision  for loan losses for the nine  months  ended
September  30, 1999 was $0.21  million as compared to $0.34 million for the same
period in 1998.  In  management's  judgment,  the  allowance  for loan losses is
adequate to absorb probable losses in the existing portfolio.

Noninterest  income  decreased  29.9% comparing the third quarter of 1999 to the
third quarter of 1998 and decreased  9.6%  comparing the first three quarters of
1999 to the first three quarters of 1998 primarily due to declining  activity in
the mortgage  banking  area.  The increase in loan  servicing  fees reflects the
Company's strategy of increasing its  mortgage-servicing  portfolio,  which grew
from $57.52  million at September  30, 1998 to $109.25  million at September 30,
1999.  Noninterest  expense was down 5.2% from the third quarter of the previous
year due to close control of operating expenses. Noninterest expense was up 0.9%
from the first three  quarters of the previous  year,  mainly due to annual wage
increases.

Total assets  increased  3.0% to $391.88  million as of September  30, 1999 from
$380.48  million as of  December  31,  1998,  reflecting  an  increase of $14.74
million  in loans.  Federal  Home  Loan Bank  advances  of $11.19  million  were
borrowed to match funds for selected fixed rate commercial loans and securities.

IMPAIRED LOANS

The recorded  investment in loans considered to be impaired was $2.58 million at
September  30, 1999,  and $2.82  million at December  31, 1998,  and consists of
loans for which an allowance of $0.06  million and $0.32  million,  for the same
periods  respectively,  has been established.  Income recorded on impaired loans
during the first nine  months of 1999 for the  portion of this  period that they
were impaired was $0.06  million.  Average  investment in impaired  loans during
this same period of 1999 was $2.71 million as compared to $3.09  million  during
the first three  quarters of 1998.  Nonaccruing  loans at  September  30,  1999,
included  $1.84  million of loans  considered  to be impaired,  as compared with
$2.05 million at December 31, 1998.


                                       14
<PAGE>

NMBT CORP
Form 10Q
September 30, 1999

NONPERFORMING ASSETS

Nonperforming  loans consist  principally  of residential  and commercial  loans
collateralized  by real estate and real  estate  acquired  through  foreclosures
(real estate owned). Nonperforming assets and relevant ratios were as follows:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
Dollars in thousands                                                           SEPTEMBER 30, 1999         DECEMBER 31, 1998
----------------------------------------------------------------------------------------------------------------------------
<S>                                                                                        <C>                       <C>
Total nonperforming loans                                                                  $2,087                    $2,694
Real estate owned                                                                             115                         -
----------------------------------------------------------------------------------------------------------------------------
Total nonperforming assets                                                                 $2,202                    $2,694
============================================================================================================================

Total nonperforming loans/Total loans                                                       0.85%                     1.17%
Total nonperforming assets/Total assets                                                     0.56%                     0.71%
Allowance for loan losses/Total nonperforming loans                                       195.05%                   142.48%
</TABLE>


LIQUIDITY MANAGEMENT

For  information  about  the  Company's  liquidity  position,  see  Management's
Discussion  and Analysis in its 1998 Annual  Report to  Stockholders,  which was
also  incorporated  into the  Company's  Annual  Report  to the  Securities  and
Exchange  Commission on Form 10K. There has been no material change in that data
since it was reported.


CAPITAL

At September 30, 1999, the Company had $28.81 million in  stockholders'  equity,
compared with $28.69 million at December 31, 1998. The increase in stockholders'
equity from the end of 1998 was due to the following: a $1.93 million adjustment
for net unrealized  losses on securities  available for sale;  proceeds of $0.06
million from the exercise of stock  options;  and the retention of $2.79 million
in net earnings, less cash dividends paid on February 12, May 14, and August 13,
1999, totaling $0.80 million.

The following  reflects the Company's  capital ratios (which exclude  intangible
assets and the  adjustments  for net  unrealized  gains or losses on  securities
available for sale):

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
Dollars in thousands                          SEPTEMBER 30, 1999           DECEMBER 31, 1998          REGULATORY MINIMUM
-------------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>                         <C>                          <C>
Risk-based capital ratios:
   Tier 1 capital ratio                                   13.12%                      12.87%                       4.00%
   Total capital ratio                                    14.38%                      14.13%                       8.00%

Leverage ratio                                             7.68%                       7.40%                       3.00%

Tier 1 capital                                           $29,836                     $27,647
Total risk-based capital                                 $32,698                     $30,351
Total risk-adjusted assets                              $227,419                    $214,786
</TABLE>

There are no significant differences between the Company's and NMBT's capital
and capital ratios.

For further information about the Company's capital, see Management's Discussion
and Analysis in its 1998 Annual Report to Stockholders, which was also
incorporated into the Company's Annual Report to the Securities and Exchange
Commission on Form 10K.



                                       15
<PAGE>


NMBT CORP
Form 10Q
September 30, 1999

YEAR 2000 READINESS

BACKGROUND
The Company's overall goal is to be "Year 2000 Ready," which means that critical
systems, devices, applications or business relationships have been evaluated and
are expected to be suitable for  continued use into and beyond the Year 2000. In
the event the  aforementioned are not suitable for continued use or malfunction,
contingency plans will be in place.

The  Company  began  addressing  Year 2000 in 1996 by  establishing  a Year 2000
committee to  identify,  monitor and document  Year 2000  activities  and report
those  findings to the Board of Directors.  Senior  management  and the Board of
Directors receive regular updates on the status of the Company's Year 2000 Plan.

The  Company  is  using a  multi-phase  approach  to Year  2000  which  includes
inventory,  assessment,  remediation,  testing  and  contingency  planning.  The
inventory  and  assessment  phases  were  completed  in  1997.  As a part of the
assessment  process,  remediation  strategies  were  identified and estimates of
remediation  costs  were  developed.  The  Company  has used both  internal  and
external  resources to remediate and test for Year 2000 readiness.  The majority
of the Company's systems requiring remediation have been modified or replaced.

The Company initiated formal communications with government agencies,  suppliers
and large  customers to determine  the extent to which the Company is vulnerable
to those third  parties'  failure to remediate  the Year 2000 Issue.  While this
information will be used to mitigate these risks, there can be no assurance that
any third party  systems  will be Year 2000  compliant on a timely basis or that
noncompliance will not have an adverse material impact on the Company.

COSTS
The  Company  has  completed  plans to  remediate  Year 2000  issues.  The total
remaining cost of the Year 2000 related  preparations  is estimated at less than
$50,000. To date, the Company has incurred costs of approximately $40,000, which
have been  expensed as incurred.  The costs of the project and the date on which
the Company plans to complete Year 2000  modifications are based on management's
best  estimates,  which were derived  utilizing  numerous  assumptions of future
events including the continued availability of certain resources, third parties'
Year 2000 readiness and other factors.

RISK ASSESSMENT
At this time, the Company  believes that completed and planned  modifications of
its internal  systems and equipment will allow it to be Year 2000 compliant in a
timely manner. There can be no assurance,  however,  that the Company's internal
systems or equipment or those of third parties on which the Company  relies will
be Year  2000  compliant  in a  timely  manner  or that the  Company's  or third
parties'  contingency plans will mitigate the effects of any noncompliance.  The
failure of the systems or equipment of the Company or third  parties  (which the
Company  believes is the most likely  worst case  scenario)  could result in the
reduction or suspension of the  Company's  operations  and could have a material
adverse effect on the Company's business or consolidated financial statements.

CONTINGENCY PLANNING
The Company has prepared and continuously  refines contingency plans designed to
address  internal  and  external  issues  specific  to Year  2000 to the  extent
practicable.  The plans, which are intended to enable the Company to continue to
operate to the extent that it can do so prudently,  include  performing  certain
processes  manually;   repairing  or  obtaining  replacement  systems;  changing
suppliers; and reducing or suspending operations. The Company believes, however,
that  due to the  widespread  nature  of the  potential  Year  2000  Issue,  the
contingency  planning  process is an  ongoing  one which  will  require  further
modifications right up to year-end as the Company


                                       16
<PAGE>

NMBT CORP
Form 10Q
September 30, 1999

obtains additional  information regarding (1) the Company's internal systems and
equipment during the remediation and testing phases of its Year 2000 project and
(2) the status of third party Year 2000 readiness.

The preceding "Year 2000 Readiness" discussion contains various  forward-looking
statements that represent the Company's beliefs or expectations regarding future
events. When used in the "Year 2000 Readiness" discussion,  the word "believes,"
"expects,"  and  "estimates"  and similar  expressions  are intended to identify
forward-looking   statements.   Forward-looking   statements  include,   without
limitation,  the Company's  estimated  cost of achieving Year 2000 readiness and
the Company's  belief that its internal  systems and equipment will be Year 2000
compliant in a timely manner. All forward-looking statements involve a number of
risks and uncertainties that could cause the actual results to differ materially
from the projected  results.  Factors that may cause these differences  include,
but are not  limited  to, the  availability  of  qualified  personnel  and other
information technology resources; the ability to replace embedded computer chips
in affected  systems or  equipment;  and the actions of  government  agencies or
other third parties with respect to Year 2000 issues.



ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Quantitative  and  qualitative  disclosure  about  market risk is  presented  at
December  31, 1998 in the  Company's  Annual  Report on Form 10-K filed with the
Securities  and  Exchange  Commission  on March  31,  1999.  There  have been no
material changes in the Company's market risk at September 30, 1999, compared to
December  31,  1998.  The  following  is an  update of the  discussion  provided
therein:

GENERAL. The Company's largest component of market risk continues to be interest
rate risk.  Virtually  all of this risk  continues  to reside at the bank level.
NMBT still is not subject to foreign currency  exchange or commodity price risk.
At September  30, 1999,  neither the Company nor NMBT owned any trading  assets,
nor did they utilize hedging transactions such as interest rate swaps and caps.

ASSETS, DEPOSIT LIABILITIES AND BORROWINGS.  There have been no material changes
in the  composition of assets,  deposit  liabilities or borrowings from December
31, 1998 to September 30, 1999.

GAP  ANALYSIS.  There have been no material  changes in the one-year  cumulative
interest  sensitivity gap as a percentage of total assets at September 30, 1999,
from December 31, 1998.

INTEREST RATE RISK COMPLIANCE.  NMBT continues to monitor the impact of interest
rate  volatility  upon net interest income in the same manner as at December 31,
1998.  There  have been no changes in the board  approved  limits of  acceptable
variance in net interest  income and net portfolio  value at September 30, 1999,
and the projected  changes  continue to fall within the board approved limits at
all levels of potential interest rate volatility.


                                       17
<PAGE>

NMBT CORP
Form 10Q
September 30, 1999


PART II-OTHER INFORMATION


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The Annual Meeting of the  Stockholders  was held on May 4, 1999.  There were no
solicitations  in opposition to any of the Board of Directors'  nominees for the
Board of  Directors or other  motions  acted on at the  Meeting.  The  following
matters were  considered  and voted on, as certified by the Judge of Election at
the Meeting:

1.   Robert W. X. Martin and Harry H. Taylor,  Jr. were each elected to serve as
     Directors  until the Annual Meeting of  Stockholders to be held in the year
     2002 who,  with the six  Directors,  Kevin L.  Dumas,  Louis A. Funk,  Jr.,
     Lawrence  Greenhaus,  Ruth  Henderson,  Terry C.  Pellegrini  and Arthur C.
     Weinshank, whose terms of office did not expire at the Meeting,  constitute
     the full Board. Each nominee received at least 1,924,016,  or 99.04%, votes
     cast FOR.

2.   The  Directors'  appointment  of  Deloitte  & Touche  LLP as the  Company's
     independent  auditors for the year ending December 31, 1999 was ratified by
     1,921,966 votes cast FOR.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(A)      EXHIBITS
          Exhibit 27. Financial Data Schedule (included only with EDGAR filing).

(B)      REPORTS ON FORM 8-K
          None


                                       18
<PAGE>

NMBT CORP
Form 10Q
September 30, 1999

                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                                NMBT CORP
                            ----------------------------------------------------
                                               (Registrant)


   November 10, 1999          /s/ Jay C. Lent
----------------------      ----------------------------------------------------
         Date                 Jay C. Lent, Executive Vice President
                              Chief Financial Officer and Secretary



   November 10, 1999          /s/ Deborah L. Fish
----------------------      ----------------------------------------------------
         Date                 Deborah L. Fish, Treasurer


                                       19