Alliance Bank, N.A. Notifies Employees of Expected Elimination of Certain Positions Pending Merger with NBT Bank

  Alliance Bank, N.A. Notifies Employees of Expected Elimination of Certain
                    Positions Pending Merger with NBT Bank

PR Newswire

SYRACUSE, N.Y., Dec. 7, 2012

SYRACUSE, N.Y., Dec.7, 2012 /PRNewswire/ --Alliance Bank, N.A., the primary
subsidiary of Alliance Financial Corporation (NasdaqGS:ALNC), advised
employees at its headquarters in Syracuse and at its operations center in
Oneida of the anticipated elimination of certain positions that will be made
duplicative upon Alliance's expected merger with NBT Bank, scheduled for March
2013, pending regulatory and shareholder approvals.On October 8, 2012, NBT
Bancorp Inc. and Alliance announced that they entered into a definitive
agreement under which Alliance will merge with and into NBT. Alliance expects
that 42 positions at its headquarters and 56 in its operations center will be
eliminated at the time of closing.

"This will be the elimination of duplicate positions, which is typical any
time two organizations merge," said Colleen K. Lefeve, Senior Vice President,
Human Resources for Alliance Bank. "NBT and Alliance are making every effort
to minimize the impact of the elimination of these positions, including
holding open other positions that could potentially be filled by displaced
employees."

While duplicate positions will be eliminated in Syracuse and Oneida, Alliance
President and Chief Executive Officer Jack H. Webb said, "We will maintain a
significant and visible presence in both cities post-merger, and anticipate
that no branches will be closed and no customer-service personnel in any of
Alliance Bank's lines of business will be affected by these planned
eliminations."

Additional Information for Stockholders

NBT filed a registration statement on Form S-4 containing a joint proxy
statement/prospectus and other documents regarding the proposed transaction
with the Securities and Exchange Commission ("SEC") on November 20, 2012.NBT
and Alliance stockholders and investors are urged to read the joint proxy
statement/prospectus when it becomes available, because it will contain
important information about NBT and Alliance and the proposed transaction.
When available, copies of this joint proxy statement/prospectus will be mailed
to stockholders.Copies of the joint proxy statement/prospectus also may be
obtained free of charge at the SEC's website at http://www.sec.gov, or by
directing a request to NBT Bancorp Inc., Attention – Shareholder Relations
Department, 20 Mohawk Street, Canajoharie, New York 13317 or on its website at
www.nbtbancorp.com, or to Alliance Financial Corporation, Attention – J.
Daniel Mohr, 120 Madison Street, 18th Floor, Syracuse, New York 13202 or on
its website at www.alliancefinancialcorporation.com. Copies of other documents
filed by NBT or Alliance with the SEC may also be obtained free of charge at
the SEC's website or by directing a request to NBT or Alliance at the address
provided above.

NBT and Alliance and certain of their directors and executive officers may be
deemed to be participants in the solicitation of proxies from the stockholders
of NBT and Alliance in connection with the proposed merger. Information about
the directors and executive officers of NBT is set forth in the proxy
statement, dated March 30, 2012, for NBT's 2012 annual meeting of
stockholders, as filed with the SEC on Schedule 14A. Information about the
directors and executive officers of Alliance is set forth in the proxy
statement, dated April 6, 2012, for Alliance's 2012 annual meeting of
stockholders, as filed with the SEC on Schedule 14A.Additional information
regarding the interests of such participants and other persons who may be
deemed participants in the transaction may be obtained by reading the joint
proxy statement/prospectus included in the Form S-4 when it becomes available.

This press release does not constitute an offer to sell or the solicitation of
an offer to sell or the solicitation of an offer to buy any securities.

Corporate Overviews

NBT Bancorp Inc. is a financial holding company headquartered in Norwich,
N.Y., with total assets of $6.0 billion at September 30, 2012. The company
primarily operates through NBT Bank, N.A., a full-service community bank with
three divisions, and through two financial services companies. NBT Bank, N.A.
has 135 locations, including 95 NBT Bank offices in upstate New York,
northwestern Vermont and western Massachusetts, 35 Pennstar Bank offices in
northeastern Pennsylvania, and 5 Hampshire First Bank offices in southern New
Hampshire. EPIC Advisors, Inc., based in Rochester, N.Y., is a full-service
401(k) plan recordkeeping firm. Mang Insurance Agency, LLC, based in Norwich,
N.Y., is a full-service insurance agency.

Alliance Financial Corporation is a financial holding company with Alliance
Bank, N.A. as its principal subsidiary that provides retail, commercial and
municipal banking, and trust and investment services through 29 offices in
Cortland, Madison, Oneida, Onondaga and Oswego counties.Alliance also
operates an investment management administration center in Buffalo, N.Y. and
an equipment lease financing company, Alliance Leasing, Inc.

Forward-Looking Statements

This news release contains forward-looking statements. These forward-looking
statements involve risks and uncertainties and are based on the beliefs and
assumptions of the management of NBT and Alliance and their subsidiaries and
on the information available to their management at the time that these
statements were made. There are a number of factors, many of which are beyond
the control of NBT and Alliance that could cause actual conditions, events or
results to differ significantly from those described in the forward-looking
statements. Factors that may cause actual results to differ materially from
those contemplated by such forward-looking statements include, among others,
the following possibilities: (1) the parties may fail to satisfy the
conditions to closing for the proposed merger in a timely manner or at all;
(2) the Alliance or NBT stockholders may fail to approve the proposed merger;
(3) the parties may fail to obtain the necessary governmental approvals or
adverse regulatory conditions may be imposed in connection with such
approvals; (4) the announcement and pendency of the transaction may result in
disruption to the parties' businesses; (5) NBT may encounter difficulties
related to the integration of the businesses following the merger; (6)
competitive pressures among depository and other financial institutions may
increase significantly; (7) revenues may be lower than expected; (8) changes
in the interest rate environment may reduce interest margins; (9) general
economic conditions, either nationally or regionally, may be less favorable
than expected, resulting in, among other things, a deterioration in credit
quality and/or a reduced demand for credit; (10) legislative or regulatory
changes, including changes in accounting standards and tax laws, may adversely
affect the businesses in which NBT and Alliance are engaged; (11) competitors
may have greater financial resources and develop products that enable such
competitors to compete more successfully than NBT and Alliance; (12) adverse
changes that may occur in the securities markets or with respect to inflation;
(13) political instability; (14) acts of war or terrorism; (15) natural
disasters and (16) other risks and uncertainties disclosed from time to time
in documents that NBT and Alliance file with the SEC. Forward-looking
statements speak only as of the date they are made. Except as required by law,
NBT and Alliance do not undertake to update forward-looking statements to
reflect subsequent circumstances or events.

Contact: Joe Russo
(315) 475-6710

SOURCE Alliance Financial Corporation

Website: http://www.alliancefinancialcorporation.com
 
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