Exhibit 99.1

FOR IMMEDIATE RELEASE

ATTENTION: FINANCIAL AND BUSINESS EDITORS

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

NBT BANCORP INC. ANNOUNCES RECORD NET INCOME OF $61.7 MILLION AND ORGANIC LOAN GROWTH OF 5.3% IN 2013; DECLARES CASH DIVIDEND

NORWICH, NY (January 27, 2014) – NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported net income for the year ended December 31, 2013 of $61.7 million, up from $54.6 million from the prior year.  2013 results included the impact of the acquisition of Alliance Financial Corporation (“Alliance”) in March 2013, including approximately $12.4 million in merger related expenses.  Reported earnings per diluted share for the year ended December 31, 2013 was $1.46 as compared to $1.62 for 2012.

Core net income (excluding merger related expenses, net securities gains, and other items not considered core) for the year ended December 31, 2013 was $69.9 million, up 27.5% from $54.8 million for 2012.  Core diluted earnings per share for the year ended December 31, 2013 was $1.65, up from $1.63 for the prior year.

Reported net income for the three months ended December 31, 2013 was $17.9 million, up from $13.1 million for the same period last year.  2013 results included the impact of the aforementioned acquisition of Alliance.  Reported diluted earnings per share for the three months ended December 31, 2013 was $0.41, as compared to $0.39 for the same period in 2012.

Core net income (excluding merger related expenses, net securities gains, and other items not considered core) for the three months ended December 31, 2013 was $18.4 million, up 35.2% from $13.6 million for the same period in 2012, due primarily to the impact of the Alliance acquisition.  Core diluted earnings per share for the three months ended December 31, 2013 was $0.42, as compared to $0.40 for the same period last year.

2013 Highlights:

· Significant strategic expansion during 2013:

o Acquired Alliance Financial Corporation, a $1.4 billion financial holding company headquartered in Syracuse, N.Y. on March 8, 2013

· 2013 organic loan growth of 5.3%

o Consumer loan growth of 4.8%

o Commercial loan growth of 5.5%

· Net charge-offs to average loans was 0.44% for 2013, down from 0.55% for 2012

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“We are extremely proud of the results generated by our team in 2013. We achieved record core earnings and realized strong organic loan growth while maintaining stable asset quality. Strategic initiatives—including the successful acquisition and integration of Alliance, investments in training and technology, and expense control—all contributed to our strong financial results and have our company well-positioned for 2014 and beyond. Ultimately, the engine that drives our success is the talented group of financial professionals we cultivate. While the regulatory and economic environment continues to present challenges, we remain confident in our team and their ability to continue to enhance the long-term value of our company for our shareholders.”

Net interest income was $238.1 million for the year ended December 31, 2013, up 16.6% from 2012.  This increase from the prior year was due primarily to the 22.7% increase in average earning assets for the year ended December 31, 2013 over the prior year.  The acquisition of Alliance in March 2013 as well as the sustained organic loan growth in 2013 contributed to the growth in average earning assets.

NBT’s fully tax equivalent (“FTE”) net interest margin was 3.66% for the year ended December 31, 2013, down from 3.86% for 2012.  Rate compression on earning assets continued to negatively impact net interest margin in 2013 as evidenced by decreasing loan yields from 5.17% for the year ended December 31, 2012 to 4.69% for 2013.  In addition, yields on available for sale securities declined 42 bps for the year ended December 31, 2013 as compared to 2012.  The rate compression on earning assets was partially offset by the 24 bp decrease in the rates paid on interest bearing liabilities, driven by a more favorable deposit mix and a decrease in deposit rates, in 2013 as compared to the same period in 2012.  Further contributing to net interest margin compression during 2013 was the incorporation of Alliance’s interest earning assets and interest bearing liabilities into NBT.

Net interest income was $62.1 million for the fourth quarter of 2013, down marginally from the prior quarter, and up $9.6 million from the fourth quarter of 2012 primarily due to the acquisition of Alliance.  Average interest earning assets were up $54.4 million, or 0.8%, for the fourth quarter of 2013 as compared to the prior quarter, driven primarily by organic loan production during the fourth quarter.  This increase was offset by a decrease in the yields on interest earning assets from 4.08% for the third quarter of 2013 to 4.02% for the fourth quarter, driven primarily by the 9 bp decrease in loan yields.  Average interest bearing liabilities increased slightly from the third quarter of 2013 to the fourth quarter.  Rates paid on interest bearing liabilities decreased 2 bps during the same period resulting in a 3.0% decrease in interest expense from the third quarter of 2013 to the fourth quarter.

NBT’s FTE net interest margin was 3.61% for the three months ended December 31, 2013, down from 3.65% from the prior quarter, and down from 3.83% for the fourth quarter of 2012.  Rate compression on earning assets continued to negatively impact net interest margin in the fourth quarter of 2013 as evidenced by decreasing loan yields from 4.63% for the third quarter of 2013 to 4.54% for the fourth quarter of 2013.  The rate compression on earning assets was partially offset by the 2 bp decrease in the rates paid on interest bearing liabilities in the fourth quarter of 2013 versus the prior quarter.  This decrease was primarily driven by the 2 bp decrease in rates paid on deposits.

Noninterest income for the year ended December 31, 2013 was $103.2 million, up 18.2% from 2012, with the primary drivers being increases in trust revenue and ATM and debit card fees driven primarily by the acquisition of Alliance.  In addition, NBT experienced a 9.2% increase in insurance and financial services revenue for the year ended December 31, 2013 as compared to 2012, due primarily to a $1.0 million, or 6.0%, increase in insurance revenue as well as a $1.0 million, or 19.5%, increase in financial services revenue.  Retirement plan administration fees were also up $1.4 million, or 13.9% for the year ended December 31, 2013 as compared to 2012 due to growth in new business during 2013.

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Noninterest income for the three months ended December 31, 2013 was $25.3 million, down 6.8% from the prior quarter, and up 15.2% from the fourth quarter of 2012 which was due primarily to the acquisition of Alliance.  The decrease from the prior quarter was driven primarily by other noninterest income, which decreased $1.3 million from the prior quarter.  Decreases in loan fees collected and swap fees recognized during the fourth quarter were the main drivers.  In addition, NBT recorded $0.3 million in securities gains during the third quarter, as compared to nominal securities gains recorded for the fourth quarter of 2013.

Noninterest expense for the year ended December 31, 2013 was $228.9 million, up $35.0 million or 18.1%, from 2012.  Excluding merger expenses totaling $12.4 million and $2.6 million for the years ended December 31, 2013 and 2012, respectively, noninterest expense was up $25.3 million, or 13.2%, for 2013 as compared to 2012.  Several noninterest expense categories were affected by the acquisition of Alliance in March 2013 and the full year impact of the June 2012 acquisition of Hampshire First Bank, with salaries and employee benefits and occupancy expenses being the primary drivers of the increase.  Income tax expense for the year ended December 31, 2013 was $28.2 million, up from $22.8 million from 2012 due primarily to the increase in pre-tax income for 2013 and an increase in the effective tax rate to 31.3% for the year ended December 31, 2013 as compared with 29.5% for 2012.

Noninterest expense for the three months ended December 31, 2013 was $55.5 million, down 1.4% from the prior quarter, and up 14.2% from the fourth quarter of 2012 primarily due to the acquisition of Alliance.  Excluding merger expenses totaling $0.1 million and $0.3 million during the fourth quarter and third quarter of 2013, respectively, noninterest expense was down $0.6 million, or 1.0%, for the fourth quarter of 2013 as compared to the prior quarter.  Income tax expense for the three month period ended December 31, 2013 was $8.8 million, up slightly from $8.6 million from the prior quarter, and up from $5.8 million for the fourth quarter of 2012.  The increase from the fourth quarter of 2012 is due primarily to the increase in pre-tax income during the fourth quarter of 2013 over the fourth quarter of 2012.  The effective tax rate was 32.9% for the fourth quarter and 31.0% for the third quarter of 2013.

Asset Quality

Net charge-offs were $22.3 million for the year ended December 31, 2013, equivalent to the year ended December 31, 2012.  Net charge-offs to average loans for the year ended December 31, 2013 was 0.44%, compared to 0.55% for last year.  NBT recorded a provision for loan losses of $22.4 million for the year ended December 31, 2013, compared with $20.3 million for 2012.  This increase was due primarily to strong organic loan growth during 2013.

Net charge-offs were $5.9 million for the three months ended December 31, 2013, down from $6.2 million for the prior quarter, and down from $8.3 million from the three months ended December 31, 2012.  NBT recorded a provision for loan losses of $5.2 million for the three months ended December 31, 2013, equivalent to the prior quarter, and $6.9 million for the fourth quarter of 2012.

Nonperforming loans to total loans was 0.99% at December 31, 2013, up 16 bps from the prior quarter, and up from 0.98% at December 31, 2012.  The increase from the prior quarter was due to an increase in commercial nonaccrual loans, driven primarily by one commercial relationship.  Past due loans as a percentage of total loans were 0.77% for the fourth quarter as compared to 0.70% for the third quarter of 2013, and 0.71% as of December 31, 2012.

The allowance for loan losses totaled $69.4 million at December 31, 2013, compared to $70.2 million at September 30, 2013 and $69.3 million at December 31, 2012.  The allowance for loan losses as a percentage of loans was 1.28% (1.55% excluding acquired loans with no related allowance recorded) at December 31, 2013, compared to 1.31% (1.60% excluding acquired loans with no related allowance recorded) at September 30, 2013 and 1.62% (1.72% excluding acquired loans with no related allowance recorded) at December 31, 2012.

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Balance Sheet

Total assets were $7.7 billion at December 31, 2013, up $1.6 billion (approximately $1.4 billion from Alliance acquisition) or 26.6% from December 31, 2012.  Loans were $5.4 billion at December 31, 2013, up $1.1 billion from December 31, 2012, primarily due to approximately $904 million from the Alliance acquisition coupled with strong organic loan growth during 2013.  Total deposits were $5.9 billion at December 31, 2013, up $1.1 billion from December 31, 2012, primarily due to the Alliance acquisition.  Stockholders’ equity was $816.6 million, representing a total equity-to-total assets ratio of 10.67% at December 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

Under a previously disclosed stock repurchase plan which expired on December 31, 2013, NBT purchased 584,925 shares of its common stock during the twelve month period ended December 31, 2013, for a total of $12.5 million at an average price of $21.30 per share.  At December 31, 2013, there were 1,000,000 shares available for repurchase under a previously announced plan, which expires on December 31, 2014.

Dividend

The NBT Board of Directors declared a 2014 first-quarter cash dividend of $0.21 per share at a meeting held today.  The dividend will be paid on March 14, 2014 to shareholders of record as of March 1, 2014.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $7.7 billion at December 31, 2013.  The company primarily operates through NBT Bank, N.A., a full-service community bank with two geographic divisions, and through two financial services companies.  NBT Bank, N.A. has 157 locations, including 125 NBT Bank offices in upstate New York, northwestern Vermont, western Massachusetts, and southern New Hampshire.  NBT’s Pennstar Bank division operates from 32 Pennstar Bank offices in northeastern Pennsylvania. 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.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; and (7) adverse changes may occur in the securities markets or with respect to inflation.  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.

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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 NBT’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of NBT.

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NBT Bancorp Inc. and Subsidiaries

SELECTED FINANCIAL DATA

(unaudited, dollars in thousands except per share data)

	2013												2012
	4th Q			3rd Q			2nd Q			1st Q			4th Q
Reconciliation of Non-GAAP Financial Measures:
Reported net income (GAAP)	$	17,925		$	19,257		$	16,916		$	7,649		$	13,116
Adj: (Gain) / Loss on sale of securities, net (net of tax)		(9	)		(228	)		42			(795	)		(15	)
Adj: Other adjustments (net of tax) (1)		402			110			-			-			-
Plus: Merger related expenses (net of tax)		59			224			882			7,423			496
Total Adjustments		452			106			924			6,628			481
Core net income	$	18,377		$	19,363		$	17,840		$	14,277		$	13,597
Profitability:
Core Diluted Earnings Per Share	$	0.42		$	0.44		$	0.40		$	0.39		$	0.40
Diluted Earnings Per Share	$	0.41		$	0.44		$	0.38		$	0.21		$	0.39
Weighted Average Diluted
Common Shares Outstanding		44,121,102			44,135,114			44,316,531			36,794,356			33,987,465
Core Return on Average Assets (2)		0.96	%		1.02	%		0.95	%		0.90	%		0.89	%
Return on Average Assets (2)		0.94	%		1.01	%		0.90	%		0.48	%		0.86	%
Core Return on Average Equity (2)		9.04	%		9.67	%		8.88	%		9.01	%		9.34	%
Return on Average Equity (2)		8.81	%		9.62	%		8.42	%		4.83	%		9.01	%
Core Return on Average Tangible Common Equity (2)(4)		14.77	%		15.95	%		14.57	%		13.58	%		13.71	%
Return on Average Tangible Common Equity (2)(4)		14.42	%		15.86	%		13.85	%		7.49	%		13.25	%
Net Interest Margin (2)(3)		3.61	%		3.65	%		3.69	%		3.68	%		3.83	%

Twelve Months Ended December 31,
Reconciliation of Non-GAAP Financial Measures:	2013			2012
Reported net income (GAAP)	$	61,747		$	54,558
Adj: (Gain) / Loss on sale of securities, net (net of tax)		(990	)		(421	)
Adj: Other adjustments (net of tax) (6)		512			(382	)
Plus: Merger related expenses (net of tax)		8,588			1,836
Reversal of uncertain tax position		-			(790	)
Total Adjustments		8,110			243
Core net income	$	69,857		$	54,801
Profitability:
Core Diluted Earnings Per Share	$	1.65		$	1.63
Diluted Earnings Per Share	$	1.46		$	1.62
Weighted Average Diluted
Common Shares Outstanding		42,350,580			33,718,718
Core Return on Average Assets		0.96	%		0.93	%
Return on Average Assets		0.85	%		0.93	%
Core Return on Average Equity		9.16	%		9.77	%
Return on Average Equity		8.09	%		9.72	%
Core Return on Average Tangible Common Equity (5)		14.76	%		14.20	%
Return on Average Tangible Common Equity (5)		13.11	%		14.14	%
Net Interest Margin (3)		3.66	%		3.86	%

(1) Primarily reorganization expenses for 2013 and a write-down of an other asset for 2012

(2) Annualized

(3) Calculated on a Fully Tax Equivalent (“FTE”)

(4) Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:

	2013								2012
	4th Q		3rd Q		2nd Q		1st Q		4th Q
Average stockholders' equity	$	806,791	$	794,273	$	806,200	$	642,693	$	579,211
Less: average goodwill and other intangibles		291,659		292,271		292,775		200,779		169,612
Average tangible common equity	$	515,132	$	502,002	$	513,425	$	441,914	$	409,599

(5) Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:

	12 Months ended December 31,
	2013		2012
Average stockholders' equity	$	763,026		$	555,182
Less: average goodwill and other intangibles		269,683			158,035
Average tangible common equity	$	493,343		$	397,147

(6) Reorganization expenses for 2013; prepayment penalty income and flood insurance recoveries, partially offset by an other asset write-down for 2012

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NBT Bancorp Inc. and Subsidiaries

SELECTED FINANCIAL DATA

(unaudited, dollars in thousands except per share data)

	2013												2012
	4th Q			3rd Q			2nd Q			1st Q			4th Q
Balance Sheet Data:
Securities Available for Sale	$	1,364,881		$	1,385,734		$	1,390,403		$	1,465,791		$	1,147,999
Securities Held to Maturity		117,283			118,259			122,302			62,474			60,563
Net Loans		5,337,361			5,297,047			5,219,526			5,126,299			4,208,282
Total Assets		7,652,175			7,668,903			7,534,518			7,610,831			6,042,259
Total Deposits		5,890,224			6,003,138			5,878,176			6,015,963			4,784,349
Total Borrowings		866,061			783,439			795,918			715,728			605,855
Total Liabilities		6,835,606			6,873,344			6,742,943			6,807,536			5,459,986
Stockholders' Equity		816,569			795,559			791,575			803,295			582,273
Asset Quality:
Nonaccrual Loans	$	49,965		$	41,418		$	40,525		$	41,726		$	39,676
90 Days Past Due and Still Accruing		3,737			3,286			2,004			1,651			2,448
Total Nonperforming Loans		53,702			44,704			42,529			43,377			42,124
Other Real Estate Owned		2,904			3,626			3,757			2,864			2,276
Total Nonperforming Assets		56,606			48,330			46,286			46,241			44,400
Allowance for Loan Losses		69,434			70,184			71,184			68,734			69,334
Allowance for Loan Losses to Total Originated Loans (1)		1.55	%		1.60	%		1.68	%		1.69	%		1.72	%
Allowance for Loan Losses to Total Loans		1.28	%		1.31	%		1.35	%		1.32	%		1.62	%
Total Nonperforming Loans to Total Loans		0.99	%		0.83	%		0.80	%		0.83	%		0.98	%
Total Nonperforming Assets to Total Assets		0.74	%		0.63	%		0.61	%		0.61	%		0.73	%
Past Due Loans to Total Loans		0.77	%		0.70	%		0.71	%		0.81	%		0.71	%
Allowance for Loan Losses to Total Nonperforming Loans		129.29	%		157.00	%		167.38	%		158.46	%		164.60	%
Net Charge-Offs to Average Loans (4)		0.44	%		0.46	%		0.30	%		0.56	%		0.78	%
Capital:
Equity to Assets		10.67	%		10.37	%		10.51	%		10.55	%		9.64	%
Book Value Per Share	$	18.77		$	18.38		$	18.18		$	18.36		$	17.24
Tangible Book Value Per Share (2)	$	12.09		$	11.64		$	11.46		$	11.67		$	12.23
Tier 1 Leverage Ratio (3)		8.93	%		8.79	%		8.72	%		10.25	%		8.54	%
Tier 1 Capital Ratio		11.74	%		11.46	%		11.20	%		11.33	%		11.00	%
Total Risk-Based Capital Ratio		12.99	%		12.71	%		12.45	%		12.58	%		12.25	%
Common Stock Price (End of Period)	$	25.90		$	22.98		$	21.17		$	22.15		$	20.27

(1) Excludes acquired loans with no related allowance recorded

(2) Stockholders' equity less goodwill and intangible assets divided by common shares outstanding

(3) The Tier 1 Leverage Ratio for the first quarter of 2013 was impacted by timing of the acquisition of Alliance on March 8, 2013

(4) Annualized

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NBT Bancorp Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(unaudited, dollars in thousands)

	December 31,		December 31,
ASSETS	2013		2012
Cash and due from banks	$	157,625	$	157,094
Short term interest bearing accounts		1,301		6,574
Securities available for sale, at fair value		1,364,881		1,147,999
Securities held to maturity (fair value of $113,276 and $61,535 at December 31, 2013 and 2012, respectively)		117,283		60,563
Trading securities		5,779		3,918
Federal Reserve and Federal Home Loan Bank stock		46,864		29,920
Loans		5,406,795		4,277,616
Less allowance for loan losses		69,434		69,334
Net loans		5,337,361		4,208,282
Premises and equipment, net		88,327		77,875
Goodwill		264,997		152,373
Intangible assets, net		25,557		16,962
Bank owned life insurance		114,966		80,702
Other assets		127,234		99,997
TOTAL ASSETS	$	7,652,175	$	6,042,259
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing)	$	1,645,641	$	1,242,712
Savings, NOW, and money market		3,223,441		2,558,376
Time		1,021,142		983,261
Total deposits		5,890,224		4,784,349
Short-term borrowings		456,042		162,941
Long-term debt		308,823		367,492
Junior subordinated debt		101,196		75,422
Other liabilities		79,321		69,782
Total liabilities		6,835,606		5,459,986
Total stockholders' equity		816,569		582,273
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	7,652,175	$	6,042,259

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NBT Bancorp Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(unaudited, dollars in thousands except per share data)

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2013		2012		2013		2012
Interest, fee and dividend income:
Loans	$	61,173	$	53,924	$	238,672	$	208,458
Securities available for sale		6,707		5,981		25,510		27,005
Securities held to maturity		783		549		2,660		2,378
Other		518		403		1,881		1,556
Total interest, fee and dividend income		69,181		60,857		268,723		239,397
Interest expense:
Deposits		3,845		4,327		16,290		18,848
Short-term borrowings		174		39		515		188
Long-term debt		2,559		3,627		11,755		14,428
Trust preferred debt		545		411		2,084		1,730
Total interest expense		7,123		8,404		30,644		35,194
Net interest income		62,058		52,453		238,079		204,203
Provision for loan losses		5,166		6,940		22,424		20,269
Net interest income after provision for loan losses		56,892		45,513		215,655		183,934
Noninterest income:
Insurance and other financial services revenue		5,761		5,363		24,447		22,387
Service charges on deposit accounts		4,996		4,687		19,307		18,225
ATM and debit card fees		3,996		2,955		15,558		12,358
Retirement plan administration fees		2,796		2,635		11,497		10,097
Trust		4,725		2,489		16,682		9,172
Bank owned life insurance income		1,145		849		3,793		3,077
Net securities gains		13		21		1,426		599
Other		1,870		2,963		10,505		11,412
Total noninterest income		25,302		21,962		103,215		87,327
Noninterest expense:
Salaries and employee benefits		28,106		26,457		113,580		104,815
Occupancy		5,262		4,265		20,720		17,415
Data processing and communications		3,985		3,396		15,353		13,437
Professional fees and outside services		3,969		2,615		13,309		10,463
Equipment		3,013		2,403		11,493		9,627
Office supplies and postage		1,677		1,647		6,563		6,489
FDIC expenses		1,272		1,020		4,960		3,832
Advertising		759		581		3,204		2,889
Amortization of intangible assets		1,324		864		4,872		3,394
Loan collection and other real estate owned		594		509		2,619		2,560
Merger related		88		713		12,364		2,608
Other operating		5,437		4,122		19,890		16,358
Total noninterest expense		55,486		48,592		228,927		193,887
Income before income taxes		26,708		18,883		89,943		77,374
Income taxes		8,783		5,767		28,196		22,816
Net income	$	17,925	$	13,116	$	61,747	$	54,558
Earnings Per Share:
Basic	$	0.41	$	0.39	$	1.47	$	1.63
Diluted	$	0.41	$	0.39	$	1.46	$	1.62

Note:  Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.

Page 9 of 13

NBT Bancorp Inc. and Subsidiaries

QUARTERLY CONSOLIDATED STATEMENTS OF INCOME

(unaudited, dollars in thousands except per share data)

	2013									2012
	4th Q		3rd Q		2nd Q			1st Q		4th Q
Interest, fee and dividend income:
Loans	$	61,173	$	61,773	$	62,031		$	53,695	$	53,924
Securities available for sale		6,707		6,520		6,537			5,746		5,981
Securities held to maturity		783		804		548			525		549
Other		518		472		488			403		403
Total interest, fee and dividend income		69,181		69,569		69,604			60,369		60,857
Interest expense:
Deposits		3,845		3,999		4,296			4,150		4,327
Short-term borrowings		174		232		67			42		39
Long-term debt		2,559		2,561		3,026			3,609		3,627
Junior subordinated debt		545		551		560			428		411
Total interest expense		7,123		7,343		7,949			8,229		8,404
Net interest income		62,058		62,226		61,655			52,140		52,453
Provision for loan losses		5,166		5,198		6,402			5,658		6,940
Net interest income after provision for loan losses		56,892		57,028		55,253			46,482		45,513
Noninterest income:
Insurance and other financial services revenue		5,761		6,038		5,755			6,893		5,363
Service charges on deposit accounts		4,996		5,055		4,933			4,323		4,687
ATM and debit card fees		3,996		4,276		4,044			3,242		2,955
Retirement plan administration fees		2,796		3,062		2,957			2,682		2,635
Trust		4,725		4,345		4,699			2,913		2,489
Bank owned life insurance income		1,145		913		886			849		849
Net securities gains (losses)		13		329		(61	)		1,145		21
Other		1,870		3,129		2,324			3,182		2,963
Total noninterest income		25,302		27,147		25,537			25,229		21,962
Noninterest expense:
Salaries and employee benefits		28,106		29,267		29,160			27,047		26,457
Occupancy		5,262		5,262		5,219			4,977		4,265
Data processing and communications		3,985		4,059		3,854			3,455		3,396
Professional fees and outside services		3,969		3,202		3,237			2,901		2,615
Equipment		3,013		2,988		2,910			2,582		2,403
Office supplies and postage		1,677		1,640		1,656			1,590		1,647
FDIC expenses		1,272		1,285		1,273			1,130		1,020
Advertising		759		722		1,000			723		581
Amortization of intangible assets		1,324		1,346		1,351			851		864
Loan collection and other real estate owned		594		886		421			718		509
Merger		88		326		1,269			10,681		713
Other operating		5,437		5,303		5,100			4,050		4,122
Total noninterest expense		55,486		56,286		56,450			60,705		48,592
Income before income taxes		26,708		27,889		24,340			11,006		18,883
Income taxes		8,783		8,632		7,424			3,357		5,767
Net income	$	17,925	$	19,257	$	16,916		$	7,649	$	13,116
Earnings per share:
Basic	$	0.41	$	0.44	$	0.39		$	0.21	$	0.39
Diluted	$	0.41	$	0.44	$	0.38		$	0.21	$	0.39

Note:  Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.

Page 10 of 13

NBT Bancorp Inc. and Subsidiaries

AVERAGE QUARTERLY BALANCE SHEETS

(unaudited, dollars in thousands)

	Average Balance		Yield / Rates			Average Balance		Yield / Rates			Average Balance		Yield / Rates			Average Balance		Yield / Rates			Average Balance		Yield / Rates
	Q4 - 2013					Q3 - 2013					Q2 - 2013					Q1 - 2013					Q4 - 2012
ASSETS:
Short-term interest bearing accounts	$	4,798		0.81	%	$	1,955		1.73	%	$	41,313		0.57	%	$	75,110		0.21	%	$	72,660		0.26	%
Securities available for sale (1)(2)		1,383,273		2.05	%		1,387,714		2.00	%		1,428,864		1.97	%		1,197,238		2.09	%		1,123,110		2.27	%
Securities held to maturity (1)		117,574		3.47	%		118,781		3.54	%		62,463		5.23	%		52,905		6.06	%		60,651		5.42	%
Investment in FRB and FHLB Banks		41,115		4.92	%		43,895		4.20	%		35,497		4.85	%		31,312		4.75	%		29,801		4.75	%
Loans (3)		5,369,474		4.54	%		5,309,446		4.63	%		5,243,534		4.76	%		4,492,106		4.87	%		4,264,680		5.05	%
Total interest earning assets	$	6,916,234		4.02	%	$	6,861,791		4.08	%	$	6,811,671		4.16	%	$	5,848,671		4.25	%	$	5,550,902		4.43	%
Other assets		680,435					671,482					705,869					554,355					503,124
Total assets	$	7,596,669				$	7,533,273				$	7,517,540				$	6,403,026				$	6,054,026
LIABILITIES AND STOCKHOLDERS' EQUITY:
Money market deposit accounts	$	1,419,458		0.15	%	$	1,360,067		0.15	%	$	1,402,429		0.15	%	$	1,190,555		0.14	%	$	1,149,248		0.14	%
NOW deposit accounts		925,544		0.13	%		877,387		0.13	%		927,037		0.19	%		799,219		0.23	%		752,737		0.25	%
Savings deposits		973,650		0.08	%		984,093		0.09	%		983,413		0.09	%		770,559		0.08	%		694,226		0.08	%
Time deposits		1,042,710		1.07	%		1,081,549		1.09	%		1,136,511		1.10	%		1,015,711		1.26	%		1,006,581		1.31	%
Total interest bearing deposits	$	4,361,362		0.35	%	$	4,303,096		0.37	%	$	4,449,390		0.39	%	$	3,776,044		0.45	%	$	3,602,792		0.48	%
Short-term borrowings		338,476		0.20	%		383,238		0.24	%		229,906		0.12	%		168,783		0.10	%		150,372		0.10	%
Junior subordinated debentures		101,196		2.14	%		101,196		2.16	%		101,196		2.22	%		82,295		2.11	%		75,422		2.17	%
Long-term debt		308,969		3.29	%		309,069		3.29	%		355,702		3.41	%		382,177		3.83	%		367,312		3.93	%
Total interest bearing liabilities	$	5,110,003		0.55	%	$	5,096,599		0.57	%	$	5,136,194		0.62	%	$	4,409,299		0.76	%	$	4,195,898		0.80	%
Demand deposits		1,595,145					1,559,506					1,496,486					1,283,737					1,210,440
Other liabilities		84,730					82,896					78,660					67,297					68,477
Stockholders' equity		806,791					794,272					806,200					642,693					579,211
Total liabilities and stockholders' equity	$	7,596,669				$	7,533,273				$	7,517,540				$	6,403,026				$	6,054,026
Interest rate spread				3.47	%				3.51	%				3.54	%				3.49	%				3.63	%
Net interest margin				3.61	%				3.65	%				3.69	%				3.68	%				3.83	%

(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

Page 11 of 13

NBT Bancorp Inc. and Subsidiaries

AVERAGE YEAR-END BALANCE SHEETS

(unaudited, dollars in thousands)

	Average				Yield/			Average				Yield/
	Balance		Interest		Rates			Balance		Interest		Rates
Twelve Months ended December 31,	2013							2012
ASSETS:
Short-term interest bearing accounts	$	30,522	$	116		0.38	%	$	66,207	$	179		0.27	%
Securities available for sale (1)(2)		1,349,887		27,357		2.03	%		1,177,969		28,904		2.45	%
Securities held to maturity (1)		88,193		3,692		4.19	%		65,582		3,583		5.46	%
Investment in FRB and FHLB Banks		37,998		1,771		4.66	%		28,358		1,378		4.86	%
Loans and leases (3)		5,106,607		239,572		4.69	%		4,053,420		209,370		5.17	%
Total interest earning assets	$	6,613,207	$	272,508		4.12	%	$	5,391,536	$	243,414		4.51	%
Other assets		653,432							483,248
Total assets	$	7,266,639						$	5,874,784
LIABILITIES AND STOCKHOLDERS' EQUITY:
Money market deposit accounts	$	1,343,801		2,004		0.15	%	$	1,116,583	$	2,054		0.18	%
NOW deposit accounts		882,629		1,468		0.17	%		709,889		1,854		0.26	%
Savings deposits		929,226		789		0.08	%		680,092		522		0.08	%
Time deposits		1,069,228		12,029		1.13	%		993,117		14,418		1.45	%
Total interest bearing deposits	$	4,224,884	$	16,290		0.39	%	$	3,499,681	$	18,848		0.54	%
Short-term borrowings		280,848		515		0.18	%		165,742		188		0.11	%
Trust preferred debentures		96,536		2,084		2.16	%		75,422		1,730		2.29	%
Long-term debt		338,697		11,755		3.47	%		368,270		14,428		3.92	%
Total interest bearing liabilities	$	4,940,965	$	30,644		0.62	%	$	4,109,115	$	35,194		0.86	%
Demand deposits		1,484,193							1,139,896
Other liabilities		78,455							64,551
Stockholders' equity		763,026							561,222
Total liabilities and stockholders' equity	$	7,266,639						$	5,874,784
Net interest income (FTE)				241,864							208,220
Interest rate spread						3.50	%						3.65	%
Net interest margin						3.66	%						3.86	%
Taxable equivalent adjustment				3,785							4,017
Net interest income			$	238,079						$	204,203

(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

Page 12 of 13

NBT Bancorp Inc. and Subsidiaries

CONSOLIDATED LOAN BALANCES

(unaudited, dollars in thousands)

											2013
	2013								2012		Acquired
	4th Q		3rd Q		2nd Q		1st Q		4th Q		Balances *
Residential real estate mortgages	$	1,041,637	$	1,028,158	$	1,001,642	$	996,925	$	651,107	$	333,105
Commercial		859,026		849,095		867,513		829,766		694,799		179,672
Commercial real estate mortgages		1,328,313		1,302,978		1,241,271		1,233,763		1,072,807		117,752
Real estate construction and development		93,247		116,662		152,548		136,402		123,078		-
Agricultural and agricultural real estate mortgages		112,035		110,113		107,565		107,023		112,687		-
Consumer		1,352,638		1,327,203		1,284,888		1,253,645		1,047,856		200,470
Home equity		619,899		633,022		635,283		637,509		575,282		73,474
Total loans	$	5,406,795	$	5,367,231	$	5,290,710	$	5,195,033	$	4,277,616	$	904,473

* Balances are as of Alliance acquisition date of March 8, 2013

Page 13 of 13