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 ANNUAL EARNINGS OF $1.53 PER DILUTED SHARE; DECLARES CASH DIVIDEND

NORWICH, NY (January 25, 2010) – NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today net income per diluted share for the three months ended December 31, 2009 of $0.40 per share, as compared with $0.45 per share for the three months ended December 31, 2008.  Annualized return on average assets and return on average equity were 1.00% and 10.92%, respectively, for the three months ended December 31, 2009, compared with 1.11% and 13.88%, respectively, for the three months ended December 31, 2008.  Net interest margin was 4.15% for the three months ended December 31, 2009, up 9 basis points (“bp”) from 4.06% for the three months ended December 31, 2008.  Net income for the three months ended December 31, 2009 was $13.8 million, down $1.1 million, or 7.4%, from $14.9 million for the fourth quarter last year.

Net income per diluted share for the year ended December 31, 2009 was $1.53 per share, as compared with $1.80 per share for the year ended December 31, 2008.  Return on average assets and return on average equity were 0.96% and 10.90%, respectively, for the year ended December 31, 2009, compared with 1.11% and 14.16%, respectively, for the year ended December 31, 2008.  Net interest margin was 4.04% for the year ended December 31, 2009, up 9 bp from 3.95% for the year ended December 31, 2008.  Net income for the year ended December 31, 2009 was $52.0 million, down $6.3 million, or 10.9%, from the year ended December 31, 2008.

For the three months ended December 31, 2009, FDIC expenses increased $0.5 million over the three months ended December 31, 2008.  For the year ended December 31, 2009, FDIC expenses increased $6.6 million over the year ended December 31, 2008, including the special assessment of approximately $2.5 million.  The FDIC premium increases had a $0.01 effect on diluted earnings per share for the three months ended December 31, 2009 and the FDIC premium increases and special assessment had a $0.14 effect on diluted earnings per share for the year ended December 31, 2009.  For the three months ended December 31, 2009, pension expenses increased $0.6 million over the three months ended December 31, 2008.  For the year ended December 31, 2009, pension expenses increased $2.8 million over the year ended December 31, 2008.  The pension expense increases had a $0.02 and $0.06 effect on diluted earnings per share for the three months ended December 31, 2009 and for the year ended December 31, 2009, respectively.

NBT President and CEO Martin Dietrich said: “Many banks have struggled this past year.  I am pleased that NBT achieved strong 2009 results in what remained a very challenging economic environment. Our earnings were at a level similar to our record year in 2008, except for increased FDIC and pension expenses. We achieved these results by continuing to focus on the fundamentals, including a strong balance sheet, an active lending program and strategic investments. Our successful capital raise in the second quarter, expansion into Vermont and the full-year impact of our acquisition of the Mang Insurance Agency are all examples of the ways we are continuing to invest in our future and position our company to benefit when the economy begins to recover.”

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Loan and Lease Quality and Provision for Loan and Lease Losses

Nonperforming loans at December 31, 2009 were $41.3 million or 1.13% of total loans and leases compared with $39.2 million or 1.08% at September 30, 2009 and $26.5 million or 0.73% at December 31, 2008.  The increase in nonperforming loans at December 31, 2009 as compared with December 31, 2008 was primarily the result of specific commercial and agricultural credits.

The allowance for loan and lease losses totaled $66.6 million at December 31, 2009, $64.7 million at September 30, 2009 and $58.6 million at December 31, 2008.  The increase from December 31, 2008 was due to an increase in specific reserves on specific nonaccrual loans in addition to increased reserve levels on certain loan types warranted by trends in economic factors during the year. As loans and leases are flat year over year, the allowance for loan losses as a percentage of loans and leases increased to 1.83% at December 31, 2009 from 1.60% at December 31, 2008  Past due loans as a percentage of total loans has improved to 0.89% at December 31, 2009, as compared with 1.00% at September 30, 2009 and 0.91% at December 31, 2008 which reflects the Company’s continued commitment to diligent collection efforts.

The Company recorded a provision for loan and lease losses of $8.6 million during the fourth quarter of 2009 compared with $7.7 million during the fourth quarter of 2008.  The increase in the provision for loan and lease losses for the three months ended December 31, 2009 as compared with the three months ended December 31, 2008 was due primarily to an increase in net charge-offs which totaled $6.7 million for the three month period ending December 31, 2009, up from $5.0 million for the three months ending December 31, 2008 due to continued effects of the economic recession.  Net charge-offs to average loans and leases for the three months ended December 31, 2009 were 0.75%, compared with 0.79% for the three months ended September 30, 2009, and 0.55% for the three months ended December 31, 2008.

The Company recorded a provision for loan and lease losses of $33.4 million for the year ended December 31, 2009 compared with $27.2 million for the year ended December 31, 2008.  The increase in the provision for loan and lease losses for the year ended December 31, 2009 was due primarily to an increase in net charge-offs which totaled $25.4 million for the year ended December 31, 2009, up from $22.8 million for the year ended December 31, 2008.  Net charge-offs to average loans and leases for the year ended December 31, 2009 were 0.70%, compared with 0.64% for the year ended December 31, 2008.

Net Interest Income

Net interest income was up 5.5% to $51.6 million for the three months ended December 31, 2009 compared with $48.9 million for the three months ended December 31, 2008. The Company’s fully taxable equivalent (FTE) net interest margin was 4.15% for the three months ended December 31, 2009, as compared with 4.06% for the three months ended December 31, 2008.  The Company experienced a 2.6% growth in average earning assets for the three months ending December 31, 2009 as compared with the three months ending December 31, 2008, due primarily to increases in average short-term interest bearing accounts and average securities held to maturity.  As a result of our excess liquidity, our Federal Funds sold position had a negative impact of 11 bp on our net interest margin for the three months ended December 31, 2009.

Although the yield on interest earning assets decreased 59 basis points, the yield on interest bearing liabilities declined 77 basis points, which contributed to the increase in the net interest margin for the three months ended December 31, 2009 compared to the same period for 2008.  The yield on time deposits was 2.23% for the three months ended December 31, 2009, as compared with 3.27% for the three months ended December 31, 2008.  The yield on money market deposit accounts was 0.88% for the three months ended December 31, 2009, as compared with 1.61% for the three months ended December 31, 2008.  The yield on short term borrowings declined 49 basis points for the three months ended December 31, 2009 as compared to the three months ended December 31, 2008 as a result of the 175 basis point drop in the Fed Funds Target Rate during the fourth quarter of 2008.

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Net interest income was up 5.6% to $196.5 million for the year ended December 31, 2009 compared with $186.0 million for the year ended December 31, 2008. The Company’s fully taxable equivalent (FTE) net interest margin was 4.04% for the year ended December 31, 2009, as compared with 3.95% for the year ended December 31, 2008.  In addition, the Company experienced a 2.8% growth in average earning assets for the year ended December 31, 2009 as compared with the year ended December 31, 2008, due primarily to increases in average loans and leases and short term interest bearing accounts.  As a result of our excess liquidity, our Federal Funds sold position had a negative impact of 8 bp on our net interest margin for the year ended December 31, 2009.

Although the yield on interest earning assets decreased 59 basis points, the yield on interest bearing liabilities declined 79 basis points, which contributed to the increase in the net interest margin for the year ended December 31, 2009 compared to the year ended December 31, 2008.  The yield on time deposits was 2.64% for the year ended December 31, 2009, as compared with 3.68% for the year ended December 31, 2008.  The yield on money market deposit accounts was 1.20% for the year ended December 31, 2009, as compared with 1.85% for the year ended December 31, 2008.    The yield on short term borrowings declined 178 basis points for the year ended December 31, 2009 as compared to the year ended December 31, 2008 as a result of the 400 bp drop in the Fed Funds Target Rate during 2008.

Noninterest Income

Noninterest income for the three months ended December 31, 2009 was $19.8 million, down $0.4 million or 1.9% from $20.2 million for the same period in 2008.  The decrease in noninterest income was due primarily to a decrease in bank owned life insurance income of approximately $1.6 million for the three months ended December 31, 2009 as compared to the three months ended December 31, 2008 due primarily to a death benefit realized during the fourth quarter of 2008 from a life insurance policy.  In addition, service charges on deposit accounts decreased approximately $0.5 million for the three month period ending December 31, 2009 as compared to the same period in 2008.  These decreases were partially offset by an increase in retirement plan administration fees of approximately $1.3 million for the three month period ended December 31, 2009 as compared with the three month period ended December 31, 2008 as a result of organic growth from new business.  In addition, trust income increased approximately $0.2 million for the three months ended December 31, 2009 as compared to the same period in 2008 as a result of an increase in fair value of trust assets under administration.

Noninterest income for the year ended December 31, 2009 was $80.1 million, up $8.4 million or 11.7% from $71.7 million for the same period in 2008.  The increase in noninterest income was due primarily to an increase in insurance and broker/dealer revenue, which increased approximately $9.0 million for the year ended December 31, 2009 as compared with the year ended December 31, 2008.  This increase was due primarily to revenue generated by Mang Insurance Agency, LLC, which was acquired on September 1, 2008.  In addition, retirement plan administration fees increased approximately $2.8 million for the year ended December 31, 2009 as compared with the year ended December 31, 2008 as a result of organic growth from new business.  These increases were partially offset by a decrease in bank owned life insurance income of approximately $1.8 million for the year ended December 31, 2009 as compared to the year ended December 31, 2008.  This decrease was primarily due to the aforementioned death benefit realized during the fourth quarter of 2008 from a life insurance policy.  In addition, net securities gains decreased by approximately $1.4 million for the year ended December 31, 2009 as compared with the year ended December 31, 2008

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Noninterest Expense and Income Tax Expense

Noninterest expense for the three months ended December 31, 2009 was $45.3 million, up from $40.3 million for the same period in 2008.  Salaries and employee benefits increased $2.3 million, or 11.1%, for the three months ended December 31, 2009 compared with the same period in 2008.  This increase was due primarily to increases in full-time-equivalent employees during 2009, largely due to the aforementioned acquisition and de novo branch activity.  In addition, the Company experienced increases of approximately $0.6 million and $0.4 million in pension and medical expenses, respectively, for the three months ended December 31, 2009 as compared with the same period in 2008.  FDIC expenses increased approximately $0.5 million to $1.3 million for the three months ended December 31, 2009, compared to $0.8 million for the same period in 2008 due to an increase in recurring FDIC premiums, which increased to $1.3 million for the three months ended December 31, 2009 as compared with $0.8 million for the same period last year.    For the three month period ended December 31, 2009, other operating expenses totaled $6.5 million, up $1.8 million or 38.6%, from $4.7 million for the three months ended December 31, 2008.  This increase resulted from a prepayment penalty incurred to payoff long-term debt during the fourth quarter of 2009 and a termination fee associated with the early termination of a vendor contract in the fourth quarter of 2009.  Income tax expense for the three month period ended December 31, 2009 was $3.7 million, down from $6.2 million for the same period in 2008.  The decrease in income tax expense is primarily the result of the decrease in pre-tax income.

Noninterest expense for the year ended December 31, 2009 was $170.6 million, up from $146.8 million for the same period in 2008.  Salaries and employee benefits increased $14.4 million, or 20.2%, for the year ended December 31, 2009 compared with the same period in 2008.  This increase was due primarily to increases in full-time-equivalent employees during 2009, largely due to the aforementioned acquisition and de novo branch activity.  In addition, the Company experienced increases of approximately $2.8 million and $1.3 million in pension and medical expenses, respectively, for the year ended December 31, 2009 as compared with the same period in 2008.  FDIC expenses increased approximately $6.6 million for the year ended December 31, 2009, compared with the year ended December 31, 2008.  This increase was due to the special assessment imposed by the FDIC totaling approximately $2.5 million during the second quarter of 2009, in addition to increased recurring FDIC premiums.  Amortization of intangible assets was $3.2 million for the year ended December 31, 2009, up $1.1 million from $2.1 million for same period in 2008 due to the aforementioned acquisition.  Occupancy expenses were up approximately $1.1 million for the year ended December 31, 2009 as compared with the year ended December 31, 2008.  This increase was due primarily to the aforementioned acquisition and de novo branch activity during the period.  Income tax expense for the year ended December 31, 2009 was $20.6 million, down from $25.4 million for the same period in 2008.  The decrease in income tax expense is primarily the result of the decrease in pre-tax income.

Balance Sheet

Total assets were $5.5 billion at December 31, 2009, up $127.9 million or 2.4% from $5.3 billion at December 31, 2008.  Loans and leases were $3.6 billion at December 31, 2009, down $6.5 million from December 31, 2008.  The Company experienced a shift from residential real estate mortgages, which decreased by approximately $99.8 million, or 13.8%, from December 31, 2008 to December 31, 2009, to consumer loans, which increased by approximately $61.8 million, or 7.8%, from December 31, 2008 to December 31, 2009.  Total deposits were $4.1 billion at December 31, 2009, up $169.8 million or 4.3% from December 31, 2008.  The increase from December 31, 2008 was due in large part to a $384.2 million, or 20.4%, increase in NOW, savings and money market accounts, and an increase in demand deposit accounts of $104.5 million.  These increases were partially offset by a $318.9 million decrease in time deposits.  Stockholders’ equity was $505.1 million, representing a total equity-to-total assets ratio of 9.24% at December 31, 2009, compared with $431.8 million or a total equity-to-total assets ratio of 8.09% at December 31, 2008.  The increase in stockholders’ equity was due in large part to the Company completing a public offering of 1,576,230 shares of its common stock on April 1, 2009 and raising approximately $33.5 million in net proceeds.

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Stock Repurchase Program

On October 26, 2009, the NBT Board of Directors authorized a new repurchase program for NBT to repurchase up to an additional 1,000,000 shares (approximately 3%) of its outstanding common stock, effective January 1, 2010, as market conditions warrant in open market and privately negotiated transactions.  The plan expires on December 31, 2011.  On December 31, 2009, the repurchase program previously authorized on January 28, 2008 to repurchase up to 1,000,000 shares expired.  The Company made no purchases of its common stock securities during the year ended December 31, 2009.

Dividend Declared

The NBT Board of Directors declared a 2010 first-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on March 15, 2010, to shareholders of record as of March 1, 2010.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $5.5 billion at December 31, 2009. The company primarily operates through NBT Bank, N.A., a full-service community bank with two divisions, and through two financial services companies.  NBT Bank, N.A. has 123 locations, including 84 NBT Bank offices in upstate New York, 38 Pennstar Bank offices in northeastern Pennsylvania and one office in Burlington, Vermont.  EPIC Advisors, Inc., based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm.   Mang Insurance Agency, LLC, based in Norwich, NY, 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.

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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 undertake to update forward-looking statements to reflect subsequent circumstances or events.

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NBT Bancorp Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

(unaudited)

							Net			Percent
	2009			2008			Change			Change
	(dollars in thousands, except per share data)
Three Months Ended December 31,
Net Income	$	13,801		$	14,897		$	(1,096	)		-7	%
Diluted Earnings Per Share	$	0.40		$	0.45		$	(0.05	)		-11	%
Weighted Average Diluted
Common Shares Outstanding		34,348,189			32,758,405			1,589,784			5	%
Return on Average Assets (1)		1.00	%		1.11	%		-11	bp		-10	%
Return on Average Equity (1)		10.92	%		13.88	%		-296	bp		-21	%
Net Interest Margin (2)		4.15	%		4.06	%		9	bp		2	%
Year Ended December 31,
Net Income	$	52,011		$	58,353		$	(6,342	)		-11	%
Diluted Earnings Per Share	$	1.53		$	1.80		$	(0.27	)		-15	%
Weighted Average Diluted
Common Shares Outstanding		33,902,517			32,427,193			1,475,324			5	%
Return on Average Assets		0.96	%		1.11	%		-15	bp		-14	%
Return on Average Equity		10.90	%		14.16	%		-326	bp		-23	%
Net Interest Margin (2)		4.04	%		3.95	%		9	bp		2	%

Asset Quality	December 31,			December 31,
	2009			2008
Nonaccrual Loans	$	38,746		$	24,191
90 Days Past Due and Still Accruing	$	2,526		$	2,305
Total Nonperforming Loans	$	41,272		$	26,496
Other Real Estate Owned	$	2,358		$	665
Total Nonperforming Assets	$	43,630		$	27,161
Past Due Loans	$	32,349		$	33,098
Potential Problem Loans	$	79,072		$	95,423
Allowance for Loan and Lease Losses	$	66,550		$	58,564
Year-to-Date (YTD) Net Charge-Offs	$	25,406		$	22,800
Allowance for Loan and Lease Losses to Total Loans and Leases		1.83	%		1.60	%
Total Nonperforming Loans to Total Loans and Leases		1.13	%		0.73	%
Total Nonperforming Assets to Total Assets		0.80	%		0.51	%
Past Due Loans to Total Loans and Leases		0.89	%		0.91	%
Allowance for Loan and Lease Losses to Total Nonperforming Loans		161.25	%		221.03	%
Net Charge-Offs to YTD Average Loans and Leases		0.70	%		0.64	%
Capital
Equity to Assets		9.24	%		8.09	%
Book Value Per Share	$	14.69		$	13.24
Tangible Book Value Per Share	$	10.75		$	9.01
Tier 1 Leverage Ratio		8.35	%		7.17	%
Tier 1 Capital Ratio		11.34	%		9.75	%
Total Risk-Based Capital Ratio		12.59	%		11.00	%

Quarterly Common Stock Price	2009				2008				2007
Quarter End	High		Low		High		Low		High		Low
March 31	$	28.37	$	15.42	$	23.65	$	17.95	$	25.81	$	21.73
June 30	$	25.22	$	20.49		25.00		20.33		23.45		21.80
September 30	$	24.16	$	20.57		36.47		19.05		23.80		17.10
December 31	$	23.59	$	19.43		30.83		21.71		25.00		20.58

(1)  Annualized

(2)  Calculated on a FTE basis

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NBT Bancorp Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

(unaudited)

	December 31,		December 31,		Net			Percent
	2009		2008		Change			Change
	(dollars in thousands, except per share data)
Balance Sheet
Loans and Leases	$	3,645,398	$	3,651,911	$	(6,513	)		0	%
Earning Assets	$	5,009,251	$	4,933,099	$	76,152			2	%
Total Assets	$	5,464,026	$	5,336,088	$	127,938			2	%
Deposits	$	4,093,046	$	3,923,258	$	169,788			4	%
Stockholders’ Equity	$	505,123	$	431,845	$	73,278			17	%
		2009		2008
Average Balances	(dollars in thousands, except per share data)
Three Months Ended December 31,
Loans and Leases	$	3,628,244	$	3,634,346	$	(6,102	)		0	%
Securities Available For Sale
(excluding unrealized gains or losses)	$	1,124,877	$	1,117,469	$	7,408			1	%
Securities Held To Maturity	$	165,108	$	140,141	$	24,967			18	%
Trading Securities	$	2,312	$	1,855	$	457			25	%
Regulatory Equity Investment	$	37,091	$	39,751	$	(2,660	)		-7	%
Short-Term Interest Bearing Accounts	$	122,104	$	17,151	$	104,953			612	%
Total Earning Assets	$	5,077,424	$	4,948,858	$	128,566			3	%
Total Assets	$	5,499,273	$	5,349,609	$	149,664			3	%
Interest Bearing Deposits	$	3,352,879	$	3,267,893	$	84,986			3	%
Non-Interest Bearing Deposits	$	748,451	$	695,696	$	52,755			8	%
Short-Term Borrowings	$	159,050	$	181,032	$	(21,982	)		-12	%
Long-Term Borrowings	$	654,592	$	708,867	$	(54,275	)		-8	%
Total Interest Bearing Liabilities	$	4,166,521	$	4,157,792	$	8,729			0	%
Stockholders’ Equity	$	501,225	$	426,918	$	74,307			17	%
Average Balances
Year Ended December 31,
Loans and Leases	$	3,641,852	$	3,567,299	$	74,553			2	%
Securities Available For Sale
(excluding unrealized gains or losses)	$	1,095,609	$	1,113,810	$	(18,201	)		-2	%
Securities Held To Maturity	$	151,078	$	149,775	$	1,303			1	%
Trading Securities	$	1,929	$	2,254	$	(325	)		-14	%
Regulatory Equity Investment	$	37,878	$	39,735	$	(1,857	)		-5	%
Short-Term Interest Bearing Accounts	$	88,012	$	9,190	$	78,822			858	%
Total Earning Assets	$	5,014,429	$	4,879,809	$	134,620			3	%
Total Assets	$	5,429,009	$	5,264,655	$	164,354			3	%
Interest Bearing Deposits	$	3,340,735	$	3,239,029	$	101,706			3	%
Non-Interest Bearing Deposits	$	718,580	$	682,656	$	35,924			5	%
Short-Term Borrowings	$	140,066	$	223,830	$	(83,764	)		-37	%
Long-Term Borrowings	$	676,461	$	638,882	$	37,579			6	%
Total Interest Bearing Liabilities	$	4,157,262	$	4,101,741	$	55,521			1	%
Stockholders’ Equity	$	477,299	$	412,102	$	65,197			16	%

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NBT Bancorp Inc. and Subsidiaries	December 31,		December 31,
Consolidated Balance Sheets (unaudited)	2009		2008
(in thousands)
ASSETS
Cash and due from banks	$	107,980	$	107,409
Short term interest bearing accounts		79,181		2,987
Securities available for sale, at fair value		1,116,758		1,119,665
Securities held to maturity (fair value of $161,851 and $141,308at December 31, 2009 and December 31, 2008, respectively)		159,946		140,209
Trading securities		2,410		1,407
Federal Reserve and Federal Home Loan Bank stock		35,979		39,045
Loans and leases		3,645,398		3,651,911
Less allowance for loan and lease losses		66,550		58,564
Net loans and leases		3,578,848		3,593,347
Premises and equipment, net		66,221		65,241
Goodwill		114,938		114,838
Intangible assets, net		20,590		23,367
Bank owned life insurance		74,322		72,276
Other assets		106,853		56,297
TOTAL ASSETS	$	5,464,026	$	5,336,088
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing)	$	789,989	$	685,495
Savings, NOW, and money market		2,269,779		1,885,551
Time		1,033,278		1,352,212
Total deposits		4,093,046		3,923,258
Short-term borrowings		155,977		206,492
Long-term debt		554,698		632,209
Trust preferred debentures		75,422		75,422
Other liabilities		79,760		66,862
Total liabilities		4,958,903		4,904,243
Total stockholders' equity		505,123		431,845
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,464,026	$	5,336,088

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	Three months ended						Year ended
NBT Bancorp Inc. and Subsidiaries	December 31,						December 31,
Consolidated Statements of Income (unaudited)	2009			2008			2009		2008
(in thousands, except per share data)
Interest, fee and dividend income:
Loans and leases	$	55,361		$	58,164		$	220,324	$	232,155
Securities available for sale		10,810			13,434			45,972		54,048
Securities held to maturity		1,212			1,253			4,894		5,588
Other		621			436			2,203		2,623
Total interest, fee and dividend income		68,004			73,287			273,393		294,414
Interest expense:
Deposits		9,532			16,371			48,496		76,132
Short-term borrowings		139			382			552		4,847
Long-term debt		5,673			6,401			23,629		22,642
Trust preferred debentures		1,036			1,200			4,247		4,747
Total interest expense		16,380			24,354			76,924		108,368
Net interest income		51,624			48,933			196,469		186,046
Provision for loan and lease losses		8,641			7,721			33,392		27,181
Net interest income after provision for loan and lease losses		42,983			41,212			163,077		158,865
Noninterest income:
Trust		1,881			1,685			6,719		7,278
Service charges on deposit accounts		6,808			7,266			27,165		28,143
ATM and debit card fees		2,346			2,176			9,339		8,832
Insurance and broker/dealer revenue		3,799			3,915			17,725		8,726
Net securities (losses)/gains		(2	)		(8	)		144		1,535
Bank owned life insurance income		910			2,484			3,135		4,923
Retirement plan administration fees		2,739			1,468			9,086		6,308
Other		1,365			1,244			6,818		5,961
Total noninterest income		19,846			20,230			80,131		71,706
Noninterest expense:
Salaries and employee benefits		22,919			20,633			85,565		71,159
Office supplies and postage		1,472			1,354			5,857		5,346
Occupancy		3,608			3,385			14,864		13,781
Equipment		2,115			1,944			8,139		7,539
Professional fees and outside services		2,688			2,651			10,508		10,476
Data processing and communications		3,314			3,254			13,238		12,694
Amortization of intangible assets		781			874			3,246		2,105
Loan collection and other real estate owned		589			692			2,766		2,494
Impairment on lease residual assets		-			-			-		2,000
FDIC expenses		1,312			827			8,408		1,813
Other operating		6,492			4,684			17,975		17,406
Total noninterest expense		45,290			40,298			170,566		146,813
Income before income taxes		17,539			21,144			72,642		83,758
Income taxes		3,738			6,247			20,631		25,405
Net income	$	13,801		$	14,897		$	52,011	$	58,353
Earnings Per Share:
Basic	$	0.40		$	0.46		$	1.54	$	1.81
Diluted	$	0.40		$	0.45		$	1.53	$	1.80

Page 10 of 14

NBT Bancorp Inc. and Subsidiaries	4Q			3Q		2Q		1Q		4Q
Quarterly Consolidated Statements of Income (unaudited)	2009			2009		2009		2009		2008
(in thousands, except per share data)
Interest, fee and dividend income:
Loans and leases	$	55,361		$	54,666	$	54,886	$	55,411	$	58,164
Securities available for sale		10,810			11,116		11,671		12,375		13,434
Securities held to maturity		1,212			1,239		1,209		1,234		1,253
Other		621			615		606		361		436
Total interest, fee and dividend income		68,004			67,636		68,372		69,381		73,287
Interest expense:
Deposits		9,532			12,002		13,123		13,839		16,371
Short-term borrowings		139			142		124		147		382
Long-term debt		5,673			5,761		5,998		6,197		6,401
Trust preferred debentures		1,036			1,049		1,076		1,086		1,200
Total interest expense		16,380			18,954		20,321		21,269		24,354
Net interest income		51,624			48,682		48,051		48,112		48,933
Provision for loan and lease losses		8,641			9,101		9,199		6,451		7,721
Net interest income after provision for loan and lease losses		42,983			39,581		38,852		41,661		41,212
Noninterest income:
Trust		1,881			1,668		1,761		1,409		1,685
Service charges on deposit accounts		6,808			7,110		6,950		6,297		7,266
ATM and debit card fees		2,346			2,443		2,368		2,182		2,176
Insurance and broker/dealer revenue		3,799			4,368		4,220		5,338		3,915
Net securities (losses)/gains		(2	)		129		17		-		(8	)
Bank owned life insurance income		910			683		670		872		2,484
Retirement plan administration fees		2,739			2,412		2,194		1,741		1,468
Other		1,365			2,037		1,665		1,751		1,244
Total noninterest income		19,846			20,850		19,845		19,590		20,230
Noninterest expense:
Salaries and employee benefits		22,919			21,272		19,947		21,427		20,633
Office supplies and postage		1,472			1,426		1,429		1,530		1,354
Occupancy		3,608			3,481		3,610		4,165		3,385
Equipment		2,115			1,997		2,005		2,022		1,944
Professional fees and outside services		2,688			2,691		2,407		2,722		2,651
Data processing and communications		3,314			3,305		3,324		3,295		3,254
Amortization of intangible assets		781			827		825		813		874
Loan collection and other real estate owned		589			755		674		748		692
FDIC expenses		1,312			1,535		4,032		1,529		827
Other operating		6,492			3,743		3,686		4,054		4,684
Total noninterest expense		45,290			41,032		41,939		42,305		40,298
Income before income taxes		17,539			19,399		16,758		18,946		21,144
Income taxes		3,738			5,821		5,198		5,874		6,247
Net income	$	13,801		$	13,578	$	11,560	$	13,072	$	14,897
Earnings per share:
Basic	$	0.40		$	0.40	$	0.34	$	0.40	$	0.46
Diluted	$	0.40		$	0.40	$	0.34	$	0.40	$	0.45

Page 11 of 14

Three months ended December 31,

			2009							2008
	Average				Yield/			Average				Yield/
(dollars in thousands)	Balance		Interest		Rates			Balance		Interest		Rates
ASSETS
Short-term interest bearing accounts	$	122,104	$	87		0.28	%	$	17,151	$	41		0.95	%
Securities available for sale (1)(excluding unrealized gains or losses)		1,124,877		11,552		4.07	%		1,117,469		14,152		5.04	%
Securities held to maturity (1)		165,108		1,832		4.40	%		140,141		1,886		5.35	%
Investment in FRB and FHLB Banks		37,091		533		5.70	%		39,751		395		3.95	%
Loans and leases (2)		3,628,244		55,551		6.07	%		3,634,346		58,381		6.39	%
Total interest earning assets	$	5,077,424	$	69,555		5.43	%	$	4,948,858	$	74,855		6.02	%
Trading securities		2,312							1,855
Other assets		419,537							398,896
Total assets	$	5,499,273						$	5,349,609
LIABILITIES AND STOCKHOLDERS' EQUITY
Money market deposit accounts	$	1,067,763	$	2,359		0.88	%	$	904,052	$	3,649		1.61	%
NOW deposit accounts		688,376		831		0.48	%		546,418		1,191		0.87	%
Savings deposits		505,131		195		0.15	%		462,319		382		0.33	%
Time deposits		1,091,609		6,147		2.23	%		1,355,103		11,149		3.27	%
Total interest bearing deposits	$	3,352,879	$	9,532		1.13	%	$	3,267,893	$	16,371		1.99	%
Short-term borrowings		159,050		139		0.35	%		181,032		382		0.84	%
Trust preferred debentures		75,422		1,036		5.45	%		75,422		1,200		6.33	%
Long-term debt		579,170		5,673		3.89	%		633,445		6,401		4.02	%
Total interest bearing liabilities	$	4,166,521	$	16,380		1.56	%	$	4,157,792	$	24,354		2.33	%
Demand deposits		748,451							695,696
Other liabilities		83,076							69,203
Stockholders' equity		501,225							426,918
Total liabilities and stockholders' equity	$	5,499,273						$	5,349,609
Net interest income (FTE)				53,175							50,501
Interest rate spread						3.87	%						3.69	%
Net interest margin						4.15	%						4.06	%
Taxable equivalent adjustment				1,551							1,568
Net interest income			$	51,624						$	48,933

(1) Securities are shown at average amortized cost

(2) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding

Page 12 of 14

Year ended December 31,

			2009							2008
	Average				Yield/			Average				Yield/
(dollars in thousands)	Balance		Interest		Rates			Balance		Interest		Rates
ASSETS
Short-term interest bearing accounts	$	88,012	$	238		0.27	%	$	9,190	$	186		2.03	%
Securities available for sale (1)(excluding unrealized gains or losses)		1,095,609		48,951		4.47	%		1,113,810		56,841		5.10	%
Securities held to maturity (1)		151,078		7,385		4.89	%		149,775		8,430		5.63	%
Investment in FRB and FHLB Banks		37,878		1,966		5.19	%		39,735		2,437		6.13	%
Loans and leases (2)		3,641,852		221,128		6.07	%		3,567,299		233,016		6.53	%
Total interest earning assets	$	5,014,429	$	279,668		5.58	%	$	4,879,809	$	300,910		6.17	%
Trading securities		1,929							2,254
Other assets		412,651							382,592
Total assets	$	5,429,009						$	5,264,655
LIABILITIES AND STOCKHOLDERS' EQUITY
Money market deposit accounts	$	1,013,514	$	12,165		1.20	%	$	778,477	$	14,373		1.85	%
NOW deposit accounts		600,943		3,159		0.53	%		485,014		4,133		0.85	%
Savings deposits		499,079		826		0.17	%		467,572		2,161		0.46	%
Time deposits		1,227,199		32,346		2.64	%		1,507,966		55,465		3.68	%
Total interest bearing deposits	$	3,340,735	$	48,496		1.45	%	$	3,239,029	$	76,132		2.35	%
Short-term borrowings		140,066		552		0.39	%		223,830		4,847		2.17	%
Trust preferred debentures		75,422		4,247		5.63	%		75,422		4,747		6.29	%
Long-term debt		601,039		23,629		3.93	%		563,460		22,642		4.02	%
Total interest bearing liabilities	$	4,157,262	$	76,924		1.85	%	$	4,101,741	$	108,368		2.64	%
Demand deposits		718,580							682,656
Other liabilities		75,868							68,156
Stockholders' equity		477,299							412,102
Total liabilities and stockholders' equity	$	5,429,009						$	5,264,655
Net interest income (FTE)				202,744							192,542
Interest rate spread						3.73	%						3.53	%
Net interest margin						4.04	%						3.95	%
Taxable equivalent adjustment				6,275							6,496
Net interest income			$	196,469						$	186,046

(1) Securities are shown at average amortized cost

(2) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding

Page 13 of 14

NBT Bancorp Inc. and Subsidiaries

Loans and leases (Unaudited)

	At December 31,
(In thousands)	2009		2008
Residential real estate mortgages	$	622,898	$	722,723
Commercial		581,870		572,059
Commercial real estate		718,235		669,720
Real estate construction and development		76,721		67,859
Agricultural and agricultural real estate mortgages		122,466		113,566
Consumer		856,956		795,123
Home equity		603,585		627,603
Lease financing		62,667		83,258
Total loans and leases	$	3,645,398	$	3,651,911

Page 14 of 14