NBT Bancorp Inc. Announces 2013 First Quarter Earnings

NBT Bancorp Inc. Announces 2013 First Quarter Earnings

NORWICH, N.Y., April 22, 2013 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (NBT)
(Nasdaq:NBTB) reported today core net income for the three months ended March
31, 2013 was $14.3 million, up 8.5% from $13.2 million for the same period in
2012. Core diluted earnings per share for the three months ended March 31,
2013 was $0.39, equivalent to the same period last year. Core annualized
return on average assets and return on average equity were 0.90% and 9.01%,
respectively, for the three months ended March 31, 2013, compared with 0.94%
and 9.76%, respectively, for the three months ended March 31, 2012.

Reported results from the first quarter of 2013 include the impact of the
acquisition of Alliance Financial Corporation ("Alliance") since March 8,
2013, including approximately $10.7 million in merger related expenses.
Reported net income for the three months ended March 31, 2013 was $7.6
million, down from $13.7 million for the same period in 2012. Reported
earnings per diluted share for the three months ended March 31, 2013 was $0.21
for the three months ended March 31, 2013 as compared to $0.41 for the three
months ended March 31, 2012. Annualized return on average assets and return on
average equity were 0.48% and 4.83%, respectively, for the three months ended
March 31, 2013, as compared to 0.97% and 10.12%, respectively, for the three
months ended March 31, 2012.

Selected highlights for the first quarter of 2013 include:

  *Completed the previously announced acquisition of Alliance on March 8,
    2013, a $1.4 billion financial holding company headquartered in Syracuse,
    N.Y.
  *Net interest income was up 5.6% as compared to the first quarter of 2012:

    *Despite the 22 basis point decline in net interest margin for the first
      quarter of 2013 from the first quarter of 2012, margin compression was
      offset primarily by strong loan growth in 2012.

  *Noninterest income was up 9.4% as compared to the first quarter of 2012:

    *Insurance and financial services revenue was up 12.0% over last year.
    *Trust revenue was up 36.8% over last year.

"Our successful merger and simultaneous systems conversion with Alliance were
the result of a great collaborative effort by employees of both banks," said
NBT President and CEO Martin Dietrich. "Team members came together and
leveraged their collective expertise to plot a smooth transition for our
customers. We're pleased to have the opportunity to deliver on Alliance's
commitment to community banking in central New York through the addition of
our new Alliance team members and branches in the same way that we deliver on
this commitment across our five-state footprint. We're also proud to have
completed another solid quarter with strong growth in noninterest income. Our
commitment to customer service and banking fundamentals are the keys to our
ongoing success in our efforts to continue to build long-term value for our
shareholders."

Loan Quality and Provision for Loan Losses

The Company recorded a provision for loan losses of $5.7 million for the three
months ended March 31, 2013, compared with $4.5 million for the three months
ended March 31, 2012. Net charge-offs were $6.3 million for the three months
ended March 31, 2013, up from $4.5 million for the same period in 2012, due
primarily to the charge-off of one large commercial loan that was previously
reserved for. Net charge-offs to average loans for the three months ended
March 31, 2013 was 0.56%, compared to 0.47% for the three months ended March
31, 2012.

Nonperforming loans to total loans improved to 0.83% at March 31, 2013 as
compared with 0.98% at December 31, 2012. Past due loans as a percentage of
total loans was 0.81% at March 31, 2013, up from 0.71% at December 31,
2012.

The allowance for loan losses totaled $68.7 million at March 31, 2013,
compared to $69.3 million at December 31, 2012.The allowance for loan losses
as a percentage of loans was 1.32% (1.69% excluding acquired loans with no
related allowance recorded) at March 31, 2013, compared to 1.62% (1.72%
excluding acquired loans with no related allowance recorded) at December 31,
2012.

Net Interest Income

Net interest income was $52.1 million for the three months ended March 31,
2013, compared with $49.4 million for the three months ended March 31, 2012.
The Company's FTE net interest margin was 3.68% for the three months ended
March 31, 2013, down from 3.90% for the three months ended March 31,
2012.Average earning assets for the three months ended March 31, 2013 totaled
$5.8 billion, up $648.8 million or 12.5%, from $5.2 billion for the three
months ended March 31, 2012.This growth in earning assets was due to strong
organic loan growth in 2012 as well as the acquisition of Alliance in March
2013.The increase in average earning assets for the three months ended March
31, 2013 as compared to the same period of 2012 offset the decline in rates,
resulting in the increase in net interest income over the same period last
year.

While the rate paid on interest bearing liabilities decreased 17 basis points,
the yield on interest earning assets declined 36 basis points, resulting in
margin compression for the three months ended March 31, 2013, compared to the
same period for 2012.The yield on securities available for sale was 2.09% for
the three months ended March 31, 2013, as compared with 2.61% for the three
months ended March 31, 2012. This decrease was due primarily to the
reinvestment of cash flows from maturing securities into lower yielding
securities in the current rate environment. The average balance of securities
available for sale for the three months ended March 31, 2013 was $1.2 billion,
down slightly from the three months ended March 31, 2012. The yield on loans
was 4.87% for the three months ended March 31, 2013, compared with 5.33% for
the three months ended March 31, 2012. The average balance of loans for the
three months ended March 31, 2013 was $4.5 billion, up approximately $682.6
million, or 17.9%, from the three months ended March 31, 2012. This increase
was due primarily to the aforementioned organic loan growth in 2012, as well
as the acquisition of Alliance in March 2013.The reduction in yields on
earning assets was partially offset by a reduction in rates paid on interest
bearing liabilities.The rate on time deposits was 1.26% for the three months
ended March 31, 2013, compared with 1.63% for the three months ended March 31,
2012.The rate on money market deposit accounts was 0.14% for the three months
ended March 31, 2013, compared with 0.23% for the three months ended March 31,
2012.

Noninterest Income

Noninterest income for the three months ended March 31, 2013 was $25.2
million, up 9.4% or $2.1 million, compared with $23.1 million for the same
period in 2012.Insurance and other financial services revenue increased
approximately $0.7 million for the three months ended March 31, 2013, compared
to the three months ended March 31, 2012, due primarily to an increase in
insurance contingent revenue in 2013.Trust revenue increased approximately
$0.8 million for the first quarter of 2013 as compared to the same period in
2012.This increase was due primarily to trust business obtained from the
Alliance acquisition.Securities gains totaled approximately $1.1 million for
the three months ended March 31, 2013 as compared to $0.5 million for the same
period in 2012.Retirement plan administration fees increased approximately
$0.3 million for the three months ended March 31, 2013, compared to the three
months ended March 31, 2012, due primarily to the addition of two large
clients during the third quarter of 2012.

Noninterest Expense and Income Tax Expense

Noninterest expense for the three months ended March 31, 2013 was $60.7
million, up $12.2 million or 25.2%, for the same period in 2012. Excluding
merger expenses totaling $10.7 million during the first quarter of 2013 and
$0.5 million during the first quarter of 2012, noninterest expense was up $2.1
million, or 4.3%, for the first quarter of 2013 as compared to the first
quarter of 2012.Occupancy expenses for the three months ended March 31, 2013
increased $0.5 million, or 10.8%, over the same period in 2012 primarily due
to 2012 acquisitions.In addition, other operating expenses increased $0.5
million for the three months ended March 31, 2013 as compared to the same
period in 2012.Income tax expense for the three month period ended March 31,
2013 was $3.4 million, down from $5.9 million for the same period in 2012.
The effective tax rate was 30.5% for the three months ended March 31, 2013,
compared to 30.0% for the same period in 2012.

Balance Sheet

Total assets were $7.6 billion at March 31, 2013, up $1.6 billion
(approximately $1.4 billion from Alliance acquisition) or 26.0% from December
31, 2012. Loans were $5.2 billion at March 31, 2013, up $917.4 million from
December 31, 2012, with the growth almost exclusively from the Alliance
acquisition. Total deposits were $6.0 billion at March 31, 2013, up $1.2
billion from December 31, 2012 of which approximately $1.1 billion was due to
the Alliance acquisition. Stockholders' equity was $803.3 million,
representing a total equity-to-total assets ratio of 10.55% at March 31, 2013,
compared with $582.3 million or a total equity-to-total assets ratio of 9.64%
at December 31, 2012.

Stock Repurchase Program

The Company did not purchase any shares of its common stock during the three
months ended March 31, 2013.As of March 31, 2013, there were 748,013 shares
available for repurchase under a previously disclosed repurchase plan, which
expires on December 31, 2013.

Dividend

The Company anticipates that the NBT Board of Directors will declare a regular
2013 second-quarter cash dividend at their next scheduled meeting, which will
be held on May 7, 2013.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich,
N.Y., with total assets of $7.6 billion at March 31, 2013. The company
primarily operates through NBT Bank, N.A., a full-service community bank with
three geographic divisions, and through two financial services companies. NBT
Bank, N.A. has 161 locations, including 121 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. More information about
NBT and its divisions can be found on the Internet at: www.nbtbancorp.com,
www.nbtbank.com, www.pennstarbank.com, www.hampshirefirst.com, www.epic1st.com
and www.manginsurance.com.

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 Bancorp and its subsidiaries and on the
information available to management at the time that these statements were
made. There are a number of factors, many of which are beyond NBT's control,
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) competitive pressures among depository and other financial institutions
may increase significantly; (2) revenues may be lower than expected; (3)
changes in the interest rate environment may reduce interest margins; (4)
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; (5) legislative or
regulatory changes, including changes in accounting standards and tax laws,
may adversely affect the businesses in which NBT is engaged; (6) competitors
may have greater financial resources and develop products that enable such
competitors to compete more successfully than NBT; (7) adverse changes may
occur in the securities markets or with respect to inflation; (8) operating
costs, customer losses and business disruption following the recently
completed acquisition of alliance, including adverse effects of relationships
with employees, may be greater than expected; and (9) the risk that the
anticipated benefits, costs savings and any other savings from the merger may
not be fully realized or may take longer than expected to realize.
Forward-looking statements speak only as of the date they are made. Except as
required by law, NBT does not update forward-looking statements to reflect
subsequent circumstances or events.

Non-GAAP Measures

This press release contains financial information determined by methods other
than in accordance with accounting principles generally accepted in the United
States of America (GAAP).These measures adjust GAAP measures to exclude the
effects of sales of securities and certain non-recurring and merger-related
expenses.Where non-GAAP disclosures are used in this press release, the
comparable GAAP measure, as well as a reconciliation to the comparable GAAP
measure, is provided in the accompanying tables.Management believes that
these non-GAAP measures provided useful information that is important to an
understanding of the operating results of NBT's core business (due to the
non-recurring nature of the excluded items).Non-GAAP measures should not be
considered a substitute for financial measures determined in accordance with
GAAP and investors should consider the Company's performance and financial
condition as reported under GAAP and all other relevant information when
assessing the performance or financial condition of the Company.

NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands, except per share data)
                                                                 
                                                                 
Reconciliation of Non-GAAP                             
Financial Measures:
                                                      
Three Months Ended March   2013          2012                       
31,
Reported net income (GAAP) $7,649        $13,650                    
Adj: Gain on sale of       (1,145)       (455)                      
securities, net
Adj: Prepayment penalty    --            (750)                      
fee
Plus: Merger related       10,681        511                        
expenses
Total Adjustments          9,536         (694)                      
Income tax effect on       2,908         (208)                      
adjustments
Core net income            $14,277       $13,164                    
                                                                 
Selected Financial Ratios:                                        
                                                      Net        Percent
Three Months Ended March   2013          2012            Change      Change
31,
Core Diluted Earnings Per  $0.39         $0.39           --          --%
Share
Diluted Earnings Per Share $0.21         $0.41           ($0.20)     -49%
Weighted Average Diluted                                         
Common Shares Outstanding 36,794,356    33,441,652      3,352,704   10%
Core Return on Average     0.90%         0.94%           -4 bps      -4%
Assets (1)
Return on Average Assets   0.48%         0.97%           -49 bps     -51%
(1)
Core Return on Average     9.01%         9.76%           -75 bps     -8%
Equity (1)
Return on Average Equity   4.83%         10.12%          -529 bps    -52%
(1)
Core Return on Average
Tangible Common Equity     13.58%        14.01%          -43 bps     -3%
(1)(3)
Return on Average Tangible 7.49%         14.51%          -702 bps    -48%
Common Equity (1)(3)
Net Interest Margin (2)    3.68%         3.90%           -22 bps     -6%
                                                                 
                                                                 
Asset Quality             March 31,     December 31,               
                          2013          2012                       
Nonaccrual Loans           $41,726       $39,676                    
90 Days Past Due and Still $1,651        $2,448                     
Accruing
Total Nonperforming Loans  $43,377       $42,124                    
Other Real Estate Owned    $2,864        $2,276                     
Total Nonperforming Assets $46,241       $44,400                    
Allowance for Loan Losses  $68,734       $69,334                    
Allowance for Loan Losses
to Total Originated Loans  1.69%         1.72%                      
(4)
Allowance for Loan Losses  1.32%         1.62%                      
to Total Loans
Total Nonperforming Loans  0.83%         0.98%                      
to Total Loans
Total Nonperforming Assets 0.61%         0.73%                      
to Total Assets
Past Due Loans to Total    0.81%         0.71%                      
Loans
Allowance for Loan Losses
to Total Nonperforming     158.46%       164.60%                    
Loans
Net Charge-Offs to Average 0.56%         0.55%                      
Loans
                                                                 
Capital                                                           
Equity to Assets           10.55%        9.64%                      
Book Value Per Share       $18.36        $17.24                     
Tangible Book Value Per    $11.67        $12.23                     
Share (5)
Tier 1 Capital Ratio       11.33%        11.00%                     
Total Risk-Based Capital   12.58%        12.25%                     
Ratio
                                                                 
Quarterly Common Stock     2013                          2012
Price
Quarter End                High         Low             High       Low
March 31                   $22.37        $20.15          $24.10      $20.75
June 30                                                $22.50      $19.19
September 30                                           $22.89      $19.91
December 31                                            $22.45      $18.92
                                                                 
(1)Annualized
(2)Calculated on a FTE basis
(3)Excludes amortization of intangible assets (net of tax) from net income
and average tangible common equity is calculated as follows:
                          2013          2012                       
Average stockholders'      $642,693    $542,628                 
equity
Less: average goodwill and 200,779      150,478                   
other intangibles
Average tangible common    $441,914    $392,150                 
equity
                                                                 
(4)Excludes acquired loans with no related allowance recorded
(5)Stockholders' equity less goodwill and intangible assets divided by common
shares outstanding

                                                               
NBT Bancorp Inc. and Subsidiaries                  March 31,   December 31,
Consolidated Balance Sheets (unaudited)             2013         2012
(in thousands)                                                  
                                                               
ASSETS                                                          
Cash and due from banks                             $133,632   $157,094
Short term interest bearing accounts                165,514     6,574
Securities available for sale, at fair value       1,465,791   1,147,999
Securities held to maturity (fair value of
$63,360and $61,535at March 31, 2013 and December   62,474      60,563
31, 2012, respectively)
Trading securities                                  4,762       3,918
Federal Reserve and Federal Home Loan Bank stock    35,918      29,920
Loans                                               5,195,033   4,277,616
Less allowance for loan losses                      68,734      69,334
Net loans                                         5,126,299    4,208,282
Premises and equipment, net                         88,582      77,875
Goodwill                                            263,645     152,373
Intangible assets, net                              29,273      16,962
Bank owned life insurance                           112,123     80,702
Other assets                                        122,818     99,997
TOTAL ASSETS                                        $7,610,831 $6,042,259
                                                               
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Deposits:                                                       
Demand (noninterest bearing)                       $1,503,849 $1,242,712
Savings, NOW, and money market                     3,345,634   2,558,376
Time                                               1,166,480   983,261
Total deposits                                     6,015,963    4,784,349
Short-term borrowings                               185,871     162,941
Long-term debt                                      428,661     367,492
Trust preferred debentures                          101,196     75,422
Other liabilities                                   75,845      69,782
Total liabilities                                  6,807,536    5,459,986
                                                               
                                                               
Total stockholders' equity                          803,295     582,273
                                                               
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY          $7,610,831 $6,042,259

                                                    
                                                    Three Months Ended
NBT Bancorp Inc. and Subsidiaries                    March 31,
Consolidated Statements of Income (unaudited)        2013      2012
(in thousands, except per share data)                
Interest, fee and dividend income:                            
Loans                                                $53,695 $50,208
Securities available for sale                        5,746     7,366
Securities held to maturity                          525       640
Other                                                403       392
Total interest, fee and dividend income             60,369   58,606
Interest expense:                                             
Deposits                                             4,150     5,143
Short-term borrowings                                42        41
Long-term debt                                       3,609     3,581
Trust preferred debentures                           428       449
Total interest expense                              8,229    9,214
Net interest income                                  52,140   49,392
Provision for loan losses                            5,658     4,471
Net interest income after provision for loan losses 46,482   44,921
Noninterest income:                                           
Insurance and other financial services revenue       6,893     6,154
Service charges on deposit accounts                  4,323     4,341
ATM and debit card fees                              3,242     2,962
Retirement plan administration fees                  2,682     2,333
Trust                                                2,913     2,129
Bank owned life insurance income                     849       971
Net securities gains                                 1,145     455
Other                                                3,182     3,711
Total noninterest income                            25,229   23,056
Noninterest expense:                                          
Salaries and employee benefits                       27,047    26,725
Occupancy                                            4,977     4,491
Data processing and communications                   3,455     3,258
Professional fees and outside services               2,901     2,725
Equipment                                            2,582     2,380
Office supplies and postage                          1,590     1,671
FDIC expenses                                        1,130    931
Advertising                                         723       802
Amortization of intangible assets                    851       819
Loan collection and other real estate owned          718       638
Merger related                                       10,681   511
Other operating                                      4,050     3,523
Total noninterest expense                           60,705    48,474
Income before income taxes                           11,006    19,503
Income taxes                                         3,357     5,853
Net income                                          $7,649  $13,650
Earnings Per Share:                                           
Basic                                               $0.21   $0.41
Diluted                                             $0.21   $0.41

                                                                
NBT Bancorp Inc. and         1Q        4Q        3Q        2Q        1Q
Subsidiaries
Quarterly Consolidated
Statements of Income         2013      2012      2012      2012      2012
(unaudited)
(in thousands, except per                                        
share data)
Interest, fee and dividend                                       
income:
Loans                        $53,695 $53,924 $53,817 $50,509 $50,208
Securities available for     5,746     5,981     6,550     7,108     7,366
sale
Securities held to maturity  525       549       572       617       640
Other                        403       403       348       413       392
Total interest, fee and     60,369    60,857    61,287    58,647    58,606
dividend income
Interest expense:                                                
Deposits                     4,150     4,327     4,544     4,834     5,143
Short-term borrowings        42        39        60        48        41
Long-term debt               3,609     3,627     3,640     3,580     3,581
Trust preferred debentures   428       411       436       434       449
Total interest expense      8,229     8,404     8,680     8,896     9,214
Net interest income          52,140    52,453    52,607    49,751    49,392
Provision for loan losses    5,658     6,940     4,755     4,103     4,471
Net interest income after   46,482    45,513    47,852    45,648    44,921
provision for loan losses
Noninterest income:                                              
Insurance and other          6,893     5,363     5,591     5,279     6,154
financial services revenue
Service charges on deposit   4,323     4,687     4,626     4,571     4,341
accounts
ATM and debit card fees      3,242     2,955     3,378     3,063     2,962
Retirement plan              2,682     2,635     2,718     2,411     2,333
administration fees
Trust                       2,913     2,489     2,242     2,312     2,129
Bank owned life insurance    849       849       639       618       971
income
Net securities gains         1,145     21        26        97        455
Other                        3,182     2,963     2,407     2,331     3,711
Total noninterest income    25,229    21,962    21,627    20,682    23,056
Noninterest expense:                                             
Salaries and employee        27,047    26,457    26,641    24,992    26,725
benefits
Occupancy                    4,977     4,265     4,437     4,222     4,491
Data processing and          3,455     3,396     3,352     3,431     3,258
communications
Professional fees and        2,901     2,615     2,735     2,388     2,725
outside services
Equipment                    2,582     2,403     2,435     2,409     2,380
Office supplies and postage  1,590     1,647     1,597     1,574     1,671
FDIC expenses                1,130     1,020     939       942       931
Advertising                  723       581       701       805       802
Amortization of intangible   851       864       870       841       819
assets
Loan collection and other    718       509       614       799       638
real estate owned
Merger                       10,681    713       558       826       511
Other operating              4,050     4,122     4,552     4,161     3,523
Total noninterest expense   60,705    48,592    49,431    47,390    48,474
Income before income taxes   11,006    18,883    20,048    18,940    19,503
Income taxes                 3,357     5,767     5,513     5,683     5,853
Net income                 $7,649  $13,116 $14,535 $13,257 $13,650
Earnings per share:                                              
Basic                       $0.21   $0.39   $0.43   $0.40   $0.41
Diluted                     $0.21   $0.39   $0.43   $0.40   $0.41

                                                                  
Three Months ended                                                
March 31,
                              2013                        2012      
                   Average               Yield/  Average             Yield/
(dollars in         Balance     Interest   Rates  Balance    Interest  Rates
thousands)
ASSETS                                                             
Short-term interest $75,110   $39      0.21%   $80,127  $35     0.18%
bearing accounts
Securities
available for sale  1,197,238  6,179     2.09%   1,212,766 7,855    2.61%
(1)(2)
Securities held to  52,905     790       6.06%   70,542    965      5.50%
maturity (1)
Investment in FRB   31,312     367       4.75%   27,020    357      5.31%
and FHLB Banks
Loans and leases    4,492,106  53,904    4.87%   3,809,461 50,445   5.33%
(3)
Total interest     $          $61,279  4.25%   $         $59,657 4.61%
earning assets      5,848,671                      5,199,916
Other assets        554,355                     459,542            
Total assets        $                           $                  
                    6,403,026                      5,659,458
                                                                  
LIABILITIES AND
STOCKHOLDERS'                                                      
EQUITY
Money market        $1,190,555  $410     0.14%   $1,089,347 $612    0.23%
deposit accounts
NOW deposit         799,219    447       0.23%   694,937   530      0.31%
accounts
Savings deposits    770,559    145       0.08%   641,969   114      0.07%
Time deposits       1,015,711  3,148     1.26%   956,350   3,887    1.63%
Total interest     $          $4,150   0.45%   $         $5,143  0.61%
bearing deposits    3,776,044                      3,382,603
Short-term          168,783    42        0.10%   162,806   41       0.10%
borrowings
Trust preferred     82,295     428       2.11%   75,422    449      2.40%
debentures
Long-term debt      382,177    3,609     3.83%   370,395   3,581    3.89%
Total interest     $          $8,229   0.76%   $         $9,214  0.93%
bearing liabilities 4,409,299                      3,991,226
Demand deposits     1,283,737                   1,062,557          
Other liabilities   67,297                      63,047             
Stockholders'       642,693                     542,628            
equity
Total liabilities   $                             $
and stockholders'   6,403,026                    5,659,458           
equity
Net interest                  53,050                     50,443   
income (FTE)
Interest rate                            3.49%                      3.68%
spread
Net interest margin                      3.68%                      3.90%
Taxable equivalent             910                        1,051    
adjustment
Net interest income            $52,140                   $49,392 
                                                                  
(1) Securities are shown at average amortized cost
(2) Excluding unrealized gains or losses
(3) For purposes of these computations, nonaccrual loans are included in the
average loan balances outstanding

                                                                
NBT Bancorp Inc. and Subsidiaries                                
Loans (Unaudited)                                                
                                                                
                                       Consolidated Loan Balances 2013
                                       March 31,     December 31, Acquired
(In thousands)                          2013          2012         Balances *
Residential real estate mortgages       $996,925    $651,107   $333,105
Commercial                              829,766      694,799     179,672
Commercial real estate mortgages        1,233,763    1,072,807   117,752
Real estate construction and            136,402      123,078     --
development
Agricultural and agricultural real      107,023      112,687     --
estate mortgages
Consumer                                1,253,645    1,047,856   200,470
Home equity                             637,509      575,282     73,474
Total loans                            $5,195,033  $4,277,616 $904,473
                                                                
                                                                
                                                                
*Balances are as of Alliance acquisition date of March 8, 2013

CONTACT: Martin A. Dietrich, CEO
         Michael J. Chewens, CFO
         NBT Bancorp Inc.
         52 South Broad Street
         Norwich, NY 13815
         607-337-6119