NBT INVESTMENT COMPANY, INC.
Statement of Assets and Liabilities
As of June 30, 2000
(unaudited)
<TABLE>
<S> <C>
Assets:
Investment in NBT Special Holdings, LLC, at fair value $ 435,253,223
(identified cost $434,951,083)
Dividend, interest and other receivables 3,414,613
---------------------
Total assets $ 438,667,836
---------------------
Liabilities:
Administrative fees payable $ 10,000
---------------------
Total liabilities 10,000
---------------------
Net assets $ 438,657,836
=====================
Net assets represented by:
Paid-in capital (authorized 50,000,000 shares at $0.01 par; $ 434,951,083
4,349,510 shares outstanding)
Net investment income 3,404,613
Net unrealized appreciation on investments 302,140
---------------------
Total net assets applicable to shares outstanding ($100.85 per share) $ 438,657,836
=====================
</TABLE>
See accompanying notes to unaudited financial statements.
1
<PAGE>
NBT INVESTMENT COMPANY, INC.
Statement of Operations
For the period from May 30, 2000 to June 30, 2000
(unaudited)
<TABLE>
<S> <C>
Investment income:
Dividends and other investment income $ 3,414,613
-----------------
Total investment income 3,414,613
-----------------
Expenses:
Organizational costs 48,835
Administrative fees 10,000
-----------------
Total expenses 58,835
Reimbursement of organizational costs (48,835)
-----------------
Net expenses 10,000
-----------------
Net investment income 3,404,613
Unrealized appreciation - net 302,140
-----------------
Net increase in net assets resulting from operations $ 3,706,753
-----------------
</TABLE>
See accompanying notes to unaudited financial statements.
2
<PAGE>
NBT INVESTMENT COMPANY, INC.
Statement of Changes in Net Assets
For the period from May 30, 2000 to June 30, 2000
(unaudited)
<TABLE>
<S> <C>
Increase in net assets:
Operations:
Net investment income $ 3,404,613
Net unrealized appreciation on investments 302,140
------------------
Net increase in net assets resulting from operations 3,706,753
Increase in net assets from capital share transactions 434,951,083
------------------
Total increase in net assets 438,657,836
Net assets:
Beginning of period --
------------------
End of period $ 438,657,836
==================
</TABLE>
See accompanying notes to unaudited financial statements.
3
<PAGE>
NBT INVESTMENT COMPANY, INC.
Notes to Financial Statements
As of June 30, 2000 and for the
period May 30, 2000 to June 30, 2000
(1) ORGANIZATION
NBT Investment Company, Inc. (the "Fund") was organized as a Maryland
corporation on May 30, 2000. The Fund is a non-diversified closed-end
management investment company registered under the Investment Company
Act of 1940, as amended. The Fund is authorized to issue 50,000,000
shares of common stock, par value $0.01.
The Fund's primary objective is to invest in a portfolio of medium to
high quality debt securities which the Investment Manager believes does
not involve undue risk to income or principal. Under normal market
conditions, the Fund will primarily invest its assets in (i) Commercial
Loans, (ii) Commercial Real Estate Mortgages, (iii) Agricultural Loans,
(iv) Installment Loans, and (v) Limited Liability Companies that invest
in such obligations. The Fund may also invest in (i) Mortgage Backed
Securities, (ii) Collateralized Mortgage Obligations ("CMOs"), (iii)
Asset-Backed Securities, (iv) Corporate Debt Securities, (v) U.S.
Government Agency Securities, and (vi) U.S. Treasury Securities.
(2) SIGNIFICANT ACCOUNTING POLICIES
(A) INVESTMENTS
Investments in NBT Special Holdings, LLC (the LLC), which have
no quoted market price, are stated at fair value, as
determined in good faith and pursuant to procedures
established by the Board of Directors. Fair value of the LLC
is determined by valuing the underlying assets, primarily
loans, on the basis of their future principal and interest
payments discounted at prevailing interest rates for similar
investments. The Fund is the only member of the LLC. Income
from the LLC is recorded on the equity basis as earned.
Security transactions are accounted for on the trade date.
(B) INCOME TAXES
The Fund's policy is to comply with the requirements of the
Internal Revenue Code necessary to qualify as a regulated
investment company and to make the requisite distributions of
taxable income to its shareholders which will be sufficient to
relieve it from all or substantially all federal and state
income taxes.
(C) USE OF ESTIMATES
Estimates and assumptions are required to be made regarding
assets and liabilities when financial statements are prepared.
Changes in the economic environment, financial markets and any
other parameters used in determining these estimates could
cause actual results to differ from these amounts.
4 (Continued)
<PAGE>
NBT INVESTMENT COMPANY, INC.
Notes to Financial Statements
As of June 30, 2000 and for the
period May 30, 2000 to June 30, 2000
(3) CAPITAL SHARE TRANSACTIONS
Transactions in capital stock were as follows:
Shares Amount
------ ------
Shares sold 4,349,520 $434,952,083
Shares redeemed 10 1,000
--------- ------------
Net increase 4,349,510 $434,951,083
========= ============
(4) INVESTMENT TRANSACTIONS
Purchases of investments were $434,951,083. There were no sales of
investments.
(5) RELATED PARTY TRANSACTIONS
(A) INVESTMENT MANAGER
The Investment Manager of the Fund is an employee of both the
Fund and NBT Bank, NA (the "Bank"). The Investment Manager
determines and administers an investment program for the Fund,
makes investment decisions on behalf of the Fund including the
determination of the Fund's net asset value and places all
orders for the purchase and sale of the Fund's portfolio
securities. The Investment Manager is not compensated by the
Fund.
(B) CUSTODIAN, TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
The Bank serves as the Fund's custodian, transfer agent and
dividend disbursing agent. As compensation for its custody
services the Bank is entitled to receive a fee at an annual
rate of 0.02% of the average daily net assets of the Fund,
accrued daily and paid monthly, excluding certain assets in
accordance with the custodian contract.
As transfer agent and dividend disbursing agent, the Bank is
entitled to receive a fee from the Fund in the amount of
$10,000 per month plus the Bank's reasonable out of pocket
expenses incurred in the performance of its services.
(C) REIMBURSEMENT OF ORGANIZATIONAL COSTS
The Bank reimbursed the Fund for its organizational costs.
5
