Exhibit 99.2

	Earnings Release
58-68 Exchange St. Binghamton, New York 13901

For Further Information, Contact:

Rexford C. Decker

Senior Vice President & CFO

(607) 779-2320

Website: www.bsbbank.com

BSB Bancorp, Inc. Announces Third Quarter Net Income of $3.9 Million

Board Authorizes Repurchase Of Up To 5% Of Outstanding Stock

BINGHAMTON, N.Y.—October 24, 2002—BSB Bancorp, Inc. (NASDAQ/NMS:BSBN), the bank holding company for BSB Bank & Trust Company, a diversified financial services organization servicing Central New York with total assets of approximately $2.1 billion, today announced financial results for the third quarter 2002.

Performance Highlights: Quarter Ended September 30, 2002

• Allowance to non-performing loans ratio increased to 114.4 percent from 105.4 percent at June 30, 2002 and 97.0 percent at December 31, 2001

• Residential mortgage originations in the third quarter of 2002 were $31.4 million, an increase of $12.0 million or 61.9 percent, over originations of $19.4 million in the third quarter of 2001

• Consumer loan originations in the third quarter of 2002 were $65.0 million, an increase of $25.3 million or 63.7 percent, compared to originations of $39.7 million in the second quarter of 2002

BSB’s net income for the quarter ended September 30, 2002 was $3.9 million or $0.41 per diluted share, compared to net income of $5.2 million or $0.51 per diluted share, for the third quarter of 2001 and a loss of $11.2 million or $1.16 per diluted share, for the second quarter of 2002.

“Our third quarter results represent a significant bottom-line improvement over the second quarter, which was impacted by the deterioration of collateral and repayment ability of some individual borrowers,” said Howard W. Sharp, President and Chief Executive Officer. “The results for the current quarter benefited from our commitment to quickly and effectively deal with deterioration in asset quality.”

BSB had another strong quarter of residential loan growth, as the total residential portfolio grew to $260.6 million at September 30, 2002, an increase of $17.0 million or 7.0 percent, from $243.6 million at June 30, 2002. The total residential loan portfolio at September 30, 2002, was up by $45.2 million or 21.0 percent, from $215.4 million at September 30, 2001.

“An important strategic initiative for 2002 has been increased residential mortgage loan originations, as we move aggressively to restructure our loan portfolio. The relocation of BSB Mortgage Corporation in the summer of 2002 has made a strong contribution toward achieving this end,” Mr. Sharp said. “The new, larger facility, which houses all of the functions of the mortgage loan process from application to closing, has enabled our mortgage lending team to increase operational efficiencies and maximize both the level and quality of our customer service.”

BSB also had strong third quarter consumer loan growth, primarily in indirect new and used auto loans, as the portfolio grew to $373.5 million at September 30, 2002, an increase of $28.1 million or 8.1 percent, from $345.4 million at the end of the second quarter. For third quarter 2002, total consumer loan originations were $65.0 million, an increase of 63.7 percent, compared to second quarter 2002 consumer loan originations of $39.7 million.

Commercial and industrial loans at September 30, 2002, totaled $557.5 million or 42.4 percent of the total loan portfolio, compared to $800.0 million or 52.0 percent of the total portfolio at September 30, 2001. During the third quarter of 2002, C&I loans were reduced by $54.9 million or 9.0 percent from the end of second quarter 2002. Through the first nine months of 2002, C&I loans were reduced by $193.1 million or 25.7 percent from December 31, 2001.

Net interest income declined from $19.9 million in the second quarter of 2002 to $18.8 million in the third quarter of 2002 as average earning assets declined $35.6 million from the second quarter of 2002 to the third quarter of 2002. Also contributing to the reduction in net interest income was a decline in the net interest margin, which declined to 3.80% in the third quarter of 2002 from 3.95% in the second quarter of 2002.

Non-interest income for the third quarter of 2002 decreased to $3.1 million, down slightly in comparison to $3.5 million for the comparable period of 2001, and $3.2 million for the second quarter of 2002.

Total operating expense for the third quarter of 2002 was $11.2 million, an increase of 3.2 percent, compared to $10.9 million for the third quarter of 2001, and a decrease of $2.3 million or 17.3 percent, in comparison to second quarter 2002 expenses of $13.6 million. The increase in total operating expenses in the third quarter of 2002, as compared to the same period in 2001, is primarily due to increased salaries, pensions and other employee benefit costs. The decrease in total operating expenses in the third quarter of 2002, as compared to the second quarter of 2002, is primarily due to reductions in advertising expenses, professional fees, expenses associated with repossessed or foreclosed property, the one-time expense related to the conversion to “Proof of Deposit” processing, as well as a reduction in salaries, pensions and other employee benefits. BSB’s efficiency ratio was 51.1 percent for the third quarter of 2002, up from 45.6 percent for third quarter 2001, but a decline in comparison to 57.1 percent for the second quarter of 2002.

The third quarter 2002 provision for loan losses was $4.5 million, down slightly when compared with the $4.6 million provision for third quarter 2001, and down 83 percent from the $26.7 million provision for the second quarter of 2002. Given the continued economic sluggishness and uncertainty that BSB sees in its primary markets and the level of non-performing loans, management expects that the provision for loan losses will remain at the current level, or may increase, in the near-term.

Third quarter net charge-offs were $1.7 million, down 38 percent in comparison to $2.8 million during the third quarter of 2001. While net charge-offs are significantly down from the $22.5 million in the second quarter of 2002, given the continued high level of non-performing loans, management expects that net charge-offs for the next few quarters could be higher than net charge-offs in the third quarter of 2002.

Non-performing loans at September 30, 2002 were $52.2 million or 3.98 percent of total gross loans outstanding, compared to $44.0 million or 2.86 percent of total gross loans outstanding at September 30, 2001. Non-performing loans at June 30, 2002 were $54.1 million or 4.10 percent of total gross loans outstanding. Loans 30-89 days past due were $8.1 million at September 30, 2002, a 70.8 percent reduction from $27.9 million at September 30, 2001, and an 18.4 percent decline from $10.0 million at June 30, 2002.

The allowance for loan losses at September 30, 2002 was $59.8 million, an increase of 5.0 percent, compared to $56.9 million at September 30, 2001, and an increase of $2.8 million or 4.9 percent, over the $57.0 million allowance at June 30, 2002. The allowance, as a percentage of non-performing loans, was 114.4 percent at September 30, 2002, compared to 129.4 percent at September 30, 2001, and 105.4 percent at June 30, 2002.

For the nine months ended September 30, 2002, BSB had a net loss of $2.2 million or $0.23 per diluted share, compared to net income of $15.6 million or $1.54 per diluted share for the nine months ended September 30, 2001. The provision for loan losses for the nine months ended September 30, 2002 was $36.4 million compared to $13.7 million for the comparable period in 2001. A substantial portion, $26.7 million or 73.4 percent, of the 2002 provision was taken during the second quarter primarily due to specific circumstances affecting individual borrowers and our analysis during the second quarter of other borrowers whose reported financial results revealed deterioration of collateral and repayment ability.

Net interest income for the nine months ended September 30, 2002 was $59.0 million, compared to $61.4 million during the same period in 2001. Non-interest income for the nine months ended September 30, 2002 was $11.1 million, compared to $10.1 million in 2001, and includes a $1.8 million gain on the sale of the bank’s credit card portfolio that was completed in the first quarter. Operating expense for the first nine months of 2002 was $36.6 million, compared to $32.5 million for the same period in 2001.

New Stock Repurchase Program

The Company also announced today a new stock repurchase program providing for the repurchase of up to 5 percent of the Corporation’s currently issued and outstanding shares of common stock. Howard W. Sharp, President and CEO, stated, “The Board of Directors adopted the repurchase program because it continues to consider BSB Bancorp’s stock to be an attractive investment.” Mr. Sharp noted that “a principal effect of the repurchase program will be to increase the earnings per share of those shares of BSB Bancorp stock that remain outstanding after the repurchases.”

Shares may be repurchased from time to time during a six month period in open market and unsolicited, negotiated transactions. Repurchases will be subject to availability and prices which are acceptable to the Corporation. BSB Bancorp, Inc. currently has 9,586,191 shares of common stock outstanding.

Elmira Branch Sale

On October 3, 2002, BSB Bank & Trust Company, a wholly owned subsidiary of BSB Bancorp, Inc., announced that it had entered into a definitive agreement to sell its two Elmira branch offices to Bath National Bank, a subsidiary of Financial Institutions, Inc. of Warsaw, New York.

The branches, located at 351 North Main Street, Elmira and 2075 Lake Road, Elmira Heights, had approximately $47.9 million in deposits at September 30, 2002. The transaction, which is subject to regulatory approval, is expected to close by the end of the fourth quarter of 2002.

“This transaction signals our commitment to our stated strategic objective of focusing our retail branch operations in the Central New York region and specifically around the metropolitan areas of Binghamton and Syracuse,” Mr. Sharp said.

Forward Looking Statements

This news release contains forward-looking statements, including those regarding the projected performance of BSB Bancorp, Inc. These statements constitute forward-looking information, within the meaning of the Private Securities Litigation Reform Act of 1995, which involve significant risks and uncertainties. Actual results may differ materially from any forward-looking information discussed in this news release.

Factors that might cause such differences include, but are not limited to: fluctuations in interest rates, government regulations and economic conditions and competition in the geographic and business areas in which BSB conducts its operations, as well as unanticipated loan losses and other similar conditions affecting the Company’s operations, pricing, products, and services.

Except as required by law, BSB disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements in this news release to reflect future events or developments.

For additional information regarding BSB, including a discussion of related risk factors, please refer to BSB’s public filings with the Securities and Exchange Commission which are available online at http://www.sec.gov.

Profile

Headquartered in Binghamton, New York, BSB Bancorp, Inc. provides a broad range of deposit, loan, trust and financial management services to businesses and consumers in Broome, Onondaga, Tioga and Chenango counties. The Bank serves its customers from 22 full-service banking offices, 29 branch-based, and 26 off-premise automatic teller machines and at 12 proprietary banking service locations (StoreTeller^®) situated in a large area supermarket chain. In Broome County, the Bank is the leader in total deposits with 37 percent. More information about BSB can be obtained on the Internet at www.bsbbank.com.

# # #

BSB BANCORP, INC. —CONSOLIDATED   (Dollars in Thousands, Except Share and Per Share Data) FINANCIAL HIGHLIGHTS (unaudited)
	Quarters Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
OPERATIONS DATA	2002		2002		2001		2002		2001
Total interest income	$31,511		$33,193		$39,927		$98,403		$128,275
Total interest expense	12,679		13,307		19,565		39,440		66,840
Net interest income	18,832		19,886		20,362		58,963		61,435
Provision for loan losses	4,500		26,720		4,550		36,420		13,724
Non-interest income	3,124		3,172		3,451		11,146		10,125
Operating expense	11,212		13,553		10,868		36,609		32,541
Income tax expense (benefit)	2,318		(6,058	)	3,205		(733	)	9,698
Net income (loss)	3,926		(11,157	)	5,190		(2,187	)	15,597
SELECTED FINANCIAL DATA
Yield on earning assets (1)	6.37	%	6.59	%	7.76	%	6.59	%	7.97	%
Cost of funds (1)	2.95		3.05		4.37		3.05		4.76
Interest rate spread (1)	3.42		3.54		3.39		3.54		3.21
Interest rate margin (1)	3.80		3.95		3.96		3.95		3.82
Return (loss) on average assets (1)	0.77		(2.16	)	0.98		(0.14	)	0.95
Return (loss) on average equity (1)	10.50		(28.05	)	13.13		(1.87	)	13.18
Equity to assets (2)	7.33		7.14		7.69		7.33		7.69
Operating expenses to average assets (1)	2.20		2.55		2.05		2.36		1.97
Efficiency ratio	51.07		57.10		45.64		53.03		45.66
PER SHARE DATA
Basic earnings (loss)	$0.41		$(1.16	)	$0.52		$(0.23	)	$1.56
Diluted earnings (loss)	$0.41		$(1.16	)	$0.51		$(0.23	)	$1.54
Book value	$15.78		$15.34		$16.51		$15.78		$16.51
Dividends paid	$0.25		$0.25		$0.25		$0.75		$0.75
Dividend payout ratio	61.04	%	NM		47.80	%	NM		48.32	%
(1) Annualized (2) At period ended (NM) Not meaningful
FINANCIAL CONDITION DATA	At September 30, 2002		June 30, 2002		September 30, 2001		September 30,
							2002		2001
Assets	$2,065,009		$2,058,224		$2,103,888		$2,065,009		$2,103,888
Earning assets	1,988,381		1,989,687		2,041,067		1,988,381		2,041,067
Gross loans	1,313,734		1,318,101		1,538,014		1,313,734		1,538,014
Allowance for loan losses	(59,754	)	(56,988	)	(56,905	)	(59,754	)	(56,905	)
Gross investment securities	673,215		652,860		405,313		673,215		405,313
Unrealized appreciation in AFS securities	16,488		11,896		10,617		16,488		10,617
Interest-bearing deposits	1,319,251		1,367,578		1,471,796		1,319,251		1,471,796
Non-interest-bearing deposits	161,384		155,323		149,978		161,384		149,978
Borrowings	377,876		335,837		270,364		377,876		270,364
Capital securities	39,000		39,000		30,000		39,000		30,000
Shareholders’ equity	151,296		146,985		161,693		151,296		161,693
Non-performing loans	52,223		54,088		43,985		52,223		43,985
Loans, 30-89 days past due	8,136		9,970		27,855		8,136		27,855
Other real estate owned	4,488		4,356		478		4,488		478
Repossessed assets	492		516		1,993		492		1,993
Trust assets	244,769		270,991		296,344		244,769		296,344
Serviced loans	407,444		430,338		483,732		407,444		483,732
AVERAGE BALANCES							YTD Actual Avg
Assets	$2,036,738		$2,065,190		$2,119,611		$2,042,708		$2,199,543
Earning assets	1,980,159		2,015,758		2,059,258		1,991,857		2,146,199
Gross loans	1,307,398		1,365,925		1,590,820		1,369,306		1,709,407
Allowance for loan losses	(58,395	)	(53,815	)	(56,115	)	(57,112	)	(59,646	)
Gross investment securities	661,306		617,233		391,812		596,240		404,548
Unrealized appreciation in AFS securities	14,135		6,661		4,416		9,049		1,905
Interest-bearing deposits	1,347,559		1,378,122		1,485,365		1,360,971		1,569,063
Non-interest-bearing deposits	154,778		145,823		148,716		148,331		144,533
Borrowings	330,620		328,898		274,508		325,711		274,434
Capital securities	39,000		38,099		30,000		35,733		30,000
Shareholders’ equity	149,515		159,108		158,085		155,641		157,727
Shares outstanding	9,584,896		9,608,067		9,893,261		9,614,444		10,021,402
Diluted shares outstanding	9,692,658		9,608,067		10,095,919		9,614,444		10,155,449

BSB BANCORP, INC. CONSOLIDATED STATEMENTS OF CONDITION (unaudited)
	September 30,			June 30,			September 30,
(In Thousands, Except Share and Per Share Data)	2002			2002			2001
ASSETS
Cash and due from banks	$	53,144		$	49,531		$	56,552
Federal funds sold		0			15,600			94,500
Total cash and cash equivalents		53,144			65,131			151,052
Investment securities available for sale, at fair value		638,458			637,054			392,932
Investment securities held to maturity (fair value of $34,661, $13,510, and $12,271, respectively)		34,346			13,307			12,101
Federal Home Loan Bank of New York stock		16,899			14,395			10,897
Loans held for sale		236			2,108			2,331
Loans:
Commercial		557,495			612,400			800,032
Consumer		373,513			345,383			390,138
Residential real estate		260,578			243,642			215,407
Commercial real estate		122,148			116,676			132,437
Total loans		1,313,734			1,318,101			1,538,014
Net deferred costs		1,196			1,018			909
Allowance for loan losses		(59,754	)		(56,988	)		(56,905	)
Net loans		1,255,176			1,262,131			1,482,018
Bank premises and equipment		15,025			15,104			14,214
Accrued interest receivable		10,472			10,565			12,210
Other real estate owned and repossessed assets		4,980			4,872			2,471
Intangible assets, net		555			646			924
Other assets		35,718			32,911			22,738
	$	2,065,009		$	2,058,224		$	2,103,888
LIABILITIES & SHAREHOLDERS’ EQUITY
Due to depositors	$	1,480,635		$	1,522,901		$	1,621,774
Borrowings		377,876			335,837			270,365
Other liabilities		16,202			13,501			20,056
Company obligated mandatorily redeemable preferred securities of subsidiaries, holding solely subordinated debentures of the Company		39,000			39,000			30,000
Total liabilities		1,913,713			1,911,239			1,942,195
Shareholders’ Equity:
Preferred stock, par value $0.01 per share; authorized 2,500,000 shares; none issued		0			0			0
Common stock, par value $0.01 per share; authorized 30,000,000 shares; 11,642,301, 11,640,238 and 11,507,447 shares issued		116			116			115
Additional paid-in capital		41,113			41,078			38,953
Undivided profits		133,337			131,807			140,338
Accumulated other comprehensive income		9,861			7,115			6,187
Treasury stock, at cost: 2,056,360, 2,056,360, and 1,719,061 shares		(33,131	)		(33,131	)		(23,900	)
Total shareholders’ equity		151,296			146,985			161,693
	$	2,065,009		$	2,058,224		$	2,103,888

BSB BANCORP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
	Three Months Ended				Nine Months Ended
(In Thousands, Except Per Share Data)	Sept. 30, 2002	June 30, 2002		Sept. 30, 2001	Sept. 30, 2002		Sept. 30, 2001
Interest income:
Interest and fees on loans	$22,973	$24,337		$33,283	$73,627		$108,693
Interest on federal funds sold	42	129		638	284		810
Interest on investment securities	8,477	8,697		5,959	24,293		18,675
Interest on loans held for sale	19	30		47	199		97
Total interest income	31,511	33,193		39,927	98,403		128,275
Interest expense:
Interest on savings deposits	668	661		1,092	1,978		3,269
Interest on time accounts	6,422	6,886		11,309	20,721		39,806
Interest on money market deposit accounts	1,439	1,578		2,733	4,501		9,911
Interest on NOW accounts	146	221		375	628		1,144
Interest on borrowed funds	3,261	3,233		3,447	9,532		10,882
Interest on mandatorily redeemable preferred securities of subsidiaries	743	728		609	2,080		1,828
Total interest expense	12,679	13,307		19,565	39,440		66,840
Net interest income	18,832	19,886		20,362	58,963		61,435
Provision for loan losses	4,500	26,720		4,550	36,420		13,724
Net interest income (loss) after provision for loan losses	14,332	(6,834	)	15,812	22,543		47,711
Non-interest income:
Service charges on deposit accounts	1,348	1,245		1,329	3,836		3,902
Checkcard interchange fees	352	359		317	1,034		930
Mortgage servicing fees	252	246		273	710		856
Fees and commissions—brokerage services	168	299		167	719		521
Trust fees	260	366		605	979		1,317
Gains on sale of securities, net	95	94		64	270		150
Gain on sale of branch office, net	0	0		0	0		299
Gain on sale of credit card portfolio, net	0	0		0	1,806		0
Other charges, commissions and fees	649	563		696	1,792		2,150
Total non-interest income	3,124	3,172		3,451	11,146		10,125
Operating expense:
Salaries, pensions and other employee benefits	5,923	6,361		5,486	18,671		16,260
Building occupancy	1,056	1,056		1,041	3,192		3,217
Advertising and promotion	267	593		225	1,034		633
Professional fees	641	867		547	2,017		1,502
Data processing costs	1,253	1,556		1,235	4,253		3,901
Services	647	691		753	2,121		2,308
Amortization of intangible assets	91	91		96	274		289
Conversion expenses	0	387		0	387		0
Other real estate owned and repossessed asset expenses, net	33	448		95	646		240
Other expenses	1,301	1,503		1,390	4,014		4,191
Total operating expense	11,212	13,553		10,868	36,609		32,541
Income (loss) before income taxes	6,244	(17,215	)	8,395	(2,920	)	25,295
Income tax expense (benefit)	2,318	(6,058	)	3,205	(733	)	9,698
NET INCOME (LOSS)	$3,926	$(11,157	)	$5,190	$(2,187	)	$15,597
Earnings (loss) per share:
Basic	$0.41	$(1.16	)	$0.52	$(0.23	)	$1.56
Diluted	$0.41	$(1.16	)	$0.51	$(0.23	)	$1.54

BSB BANCORP, INC. NON-PERFORMING ASSETS (unaudited)
(Dollars in Thousands)	Sept. 30, 2002			June 30, 2002			March 31, 2002			Dec. 31, 2001			Sept. 30, 2001
Non-accrual loans:
Commercial loans	$	40,447		$	39,420		$	31,813		$	42,424		$	32,198
Residential real estate loans		755			722			842			882			1,365
Commercial real estate loans		4,080			1,219			4,342			4,235			3,655
Consumer loans		365			438			0			0			0
Troubled debt restructured loans		6,219			11,915			19,402			12,255			5,884
Total non-accrual loans		51,866			53,714			56,399			59,796			43,102
Accruing loans with principal or interest payments 90 days or more overdue		357			374			736			879			883
Total non-performing loans		52,223			54,088			57,135			60,675			43,985
Other real estate owned and repossessed assets		4,980			4,872			1,972			2,034			2,471
Total non-performing assets	$	57,203		$	58,960		$	59,107		$	62,709		$	46,456
Total non-performing loans to total loans		3.98	%		4.10	%		4.15	%		4.09	%		2.86	%
Total non-performing assets to total assets		2.77	%		2.86	%		2.87	%		3.04	%		2.21	%

Note: Accruing loans classified as troubled debt restructured loans totaled: $5,052,000, $4,925,000, $7,578,000, $8,751,000, and $5,275,000 at September 30, 2002, June 30, 2002, March 31, 2002, December 31, 2001, and September 30, 2001, respectively. The Bank does not consider these loans to be non-performing.

BSB BANCORP, INC. ALLOWANCE AND NET CHARGE-OFFS PER QUARTER (unaudited)
	Quarters Ended
(Dollars in Thousands)	Sept. 30, 2002		June 30, 2002		March 31, 2002		Dec. 31, 2001		Sept. 30, 2001
Average gross loans outstanding	$1,307,398		$1,365,925		$1,436,007		$1,502,098		$1,590,820
Allowance at beginning of period	$56,988		$52,785		$58,829		$56,905		$55,159
Charge-offs:
Commercial loans	2,285		23,052		10,326		1,686		1,821
Consumer loans	1,359		432		1,664		2,501		1,856
Residential real estate loans	16		40		15		29		30
Commercial real estate loans	0		1,112		0		0		58
Total loan charge-offs	3,660		24,636		12,005		4,216		3,765
Recoveries	1,926		2,119		761		1,640		961
Net charge-offs	1,734		22,517		11,244		2,576		2,804
Provision for loan losses	4,500		26,720		5,200		4,500		4,550
Allowance at end of period	$59,754		$56,988		$52,785		$58,829		$56,905
Ratio of net charge-offs to:
Average gross loans outstanding (annualized)	0.53	%	6.59	%	3.13	%	0.69	%	0.71	%
Ratio of allowance to:
Non-performing loans	114.42	%	105.36	%	92.39	%	96.96	%	129.37	%
Period-end loans outstanding	4.55	%	4.32	%	3.83	%	3.96	%	3.70	%