Page 2 of 13

Net interest margin was 3.90% for the third quarter of 2012, up 8 basis points on a linked quarter basis.

Annualized net charge-off ratio was 0.47% as compared to 0.55% for the same period last year.

"At NBT we continue to leverage opportunities to invest in our future success through acquisition, including our expansion in New England and our recently announced merger agreement with Alliance Financial Corporation," said NBT President and CEO Martin Dietrich. "Acquiring the Alliance franchise in the greater Syracuse market is an exciting opportunity for strategic expansion that will be a great complement to our existing footprint in central New York. In addition, we remain focused on organic growth and banking fundamentals. We are generating strong organic loan growth and maintaining a quality loan portfolio through the efforts of our customer-oriented team of community bankers. We are pleased with our results through the first three quarters of 2012, particularly in light of the pressures that the economy and regulatory environment continue to place on banks."

Loan and Lease Quality and Provision for Loan and Lease Losses

The Company recorded a provision for loan and lease losses of $13.3 million during the nine months ended September 30, 2012, compared with $15.2 million for the nine months ended September 30, 2011. Net charge-offs were $13.9 million for the nine months ended September 30, 2012, down from $15.1 million for the same period in 2011, due primarily to the charge-off of one large commercial loan during the first quarter of 2011, as well as the general improvement in asset quality indicators in 2012. The annualized net charge-off ratio for the nine months ended September 30, 2012 was 0.47%, compared to 0.55% for the nine months ended September 30, 2011.

The Company recorded a provision for loan and lease losses of $4.8 million during the three months ended September 30, 2012, compared with $5.2 million for the three months ended September 30, 2011. Net charge-offs were $4.8 million and the annualized net charge-off ratio was 0.45% for the three months ended September 30, 2012. Net charge-offs were $4.3 million and the annualized net charge-off ratio was 0.47% for the three months ended September 30, 2011.

Past due loans as a percentage of total loans was 0.65% at September 30, 2012, up from 0.54% at June 30, 2012, and down from 0.89% at December 31, 2011. Nonperforming loans remained flat at $45.6 million September 30, 2012 compared with June 30, 2012, and up from $41.5 million at December 31, 2011.

The allowance for loan and lease losses totaled $70.7 million at September 30, 2012, compared to $71.3 million at December 31, 2011. The allowance for loan losses as a percentage of loans and leases was 1.66% at September 30, 2012, compared to 1.88% at December 31, 2011. This reduction was due primarily to acquired loans that were recorded at fair value at acquisition. As acquired loans do not have a related allowance recorded, the acquisition resulted in a decrease of 9 basis points in the allowance for loan losses as a percentage of total loans as of September 30, 2012. The balance of the reduced allowance is due to improvement in asset quality indicators throughout the year, as well as improvement in certain economic indicators.

Page 3 of 13

Net Interest Income

Net interest income was up to $151.8 million for the nine months ended September 30, 2012, compared with $149.8 million for the nine months ended September 30, 2011. The Company's FTE net interest margin was 3.87% for the nine months ended September 30, 2012, down from 4.13% for the nine months ended September 30, 2011. Average earning assets for the nine months ended September 30, 2012 was $5.3 billion, compared to $5.0 billion for the same period of 2011. This increase offset the decline in net interest margin, resulting in a $2.0 million increase in net interest income for nine months ended September 30, 2012.

While the yield on interest bearing liabilities decreased 17 basis points, the yield on interest earning assets declined 40 basis points, resulting in margin compression for the nine months ended September 30, 2012, compared to the same period for 2011. The yield on securities available for sale was 2.51% for the nine months ended September 30, 2012, compared with 3.06% for the nine months ended September 30, 2011. This decrease was due primarily to the reinvestment of cash flows from maturing securities and cash received from branch acquisitions in 2011 and the first quarter of 2012 into lower yielding securities in the current rate environment. The average balance of securities available for sale for the nine months ended September 30, 2012 was $1.2 billion, up approximately $90.6 million, or 8.2%, from the nine months ended September 30, 2011. This increase was due primarily to reinvestment of maturing held to maturity securities into available for sale securities, and investment of liquidity from branch acquisition activity and deposit growth into available for sale securities. The yield on loans and leases was 5.21% for the nine months ended September 30, 2012, compared with 5.63% for the nine months ended September 30, 2011. The average balance of loans and leases for the nine months ended September 30, 2012 was $4.0 billion, up approximately $331.8 million, or 9.1%, from the nine months ended September 30, 2011. 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 1.50% for the nine months ended September 30, 2012, compared with 1.83% for the nine months ended September 30, 2011. The rate on money market deposit accounts was 0.20% for the nine months ended September 30, 2012, compared with 0.37% for the nine months ended September 30, 2011.

Net interest income was up to $52.6 million for the three months ended September 30, 2012, compared with $50.4 million for the three months ended September 30, 2011. The Company's FTE net interest margin was 3.90% for the three months ended September 30, 2012, down from 4.14% for the three months ended September 30, 2011. The increase in average earning assets for the three months ended September 30, 2012 as compared to the same period of 2011 offset the decline in net interest margin, resulting in the increase in net interest income over the same period last year.

While the yield on interest bearing liabilities decreased 16 basis points, the yield on interest earning assets declined 37 basis points, resulting in margin compression for the three months ended September 30, 2012, compared to the same period for 2011. The yield on securities available for sale was 2.39% for the three months ended September 30, 2012, as compared with 2.95% for the three months ended September 30, 2011. This decrease was due primarily to the reinvestment of cash flows from maturing securities and cash received from branch acquisitions into lower yielding securities in the current rate environment. The average balance of securities available for sale for the three months ended September 30, 2012 was $1.2 billion, up approximately $48.2 million, or 4.3%, from the three months ended September 30, 2011. This increase was due primarily to reinvestment of maturing held to maturity securities into available for sale securities, and investment of liquidity from branch acquisition activity and deposit growth into available for sale securities. The yield on loans and leases was 5.12% for the three months ended September 30, 2012, compared with 5.51% for the three months ended September 30, 2011. The average balance of loans and leases for the three months ended September 30, 2012 was $4.2 billion, up approximately $510.4 million, or 13.8%, from the three months ended September 30, 2011. 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 1.35% for the three months ended September 30, 2012, compared with 1.75% for the three months ended September 30, 2011. The rate on money market deposit accounts was 0.18% for the three months ended September 30, 2012, compared with 0.31% for the three months ended September 30, 2011.

Page 4 of 13

Noninterest Income

Noninterest income for the nine months ended September 30, 2012 was $65.4 million, up 8.6% or $5.2 million, compared with $60.2 million for the same period in 2011. Insurance and other financial services revenue increased approximately $1.1 million for the nine months ended September 30, 2012, compared to the nine months ended September 30, 2011. This increase was due primarily to the acquisition of an insurance agency during the second quarter of 2011 as well as organic growth in commercial product lines. ATM and debit card fees increased approximately $0.7 million for the nine months ended September 30, 2012, compared to the nine months ended September 30, 2011, due primarily to an increase in card usage and customer base. Retirement plan administration fees increased approximately $0.7 million for the nine months ended September 30, 2012, compared to the nine months ended September 30, 2011, due primarily to an increase in customer base. Other noninterest income increased approximately $4.6 million for the nine months ended September 30, 2012 as compared to September 30, 2011. This increase was due primarily to a $1.1 million payoff gain on a purchased commercial real estate loan, as well as a prepayment penalty fee collected of $0.8 million during the nine months ended September 30, 2012 related to a previously disclosed loss of a retirement plan client. In addition, mortgage banking revenue increased approximately $2.0 million for the nine months ended September 30, 2012 as compared to the same period in 2011 as the Company sold certain residential mortgages as market conditions warranted. The Company sold approximately $39.3 million residential mortgages during the first nine months of 2012, as compared to no sales during the first nine months of 2011. The Company also realized net securities gains of approximately $0.6 million during the nine months ended September 30, 2012, as compared to $0.1 million for the same period in 2011. These increases were partially offset by a decrease in service charges on deposit accounts of approximately $2.5 million, or 15.7%, for the nine months ended September 30, 2012, compared with the same period in 2011 primarily due to a decrease in overdraft fee income.

Noninterest income for the three months ended September 30, 2012 was $21.6 million, up 7.1% or $1.4 million, compared with $20.2 million for the same period in 2011. Insurance and other financial services revenue increased approximately $0.5 million for the three months ended September 30, 2012, compared to the three months ended September 30, 2011. This increase was due primarily to organic growth in commercial product lines. Retirement plan administration fees increased approximately $0.4 million for the three months ended September 30, 2012, compared to the three months ended September 30, 2011, due primarily to an increase in customer base. Other noninterest income increased approximately $1.1 million for the three months ended September 30, 2012 as compared to the three months ended September 30, 2011. This increase was due primarily to an increase in mortgage banking activity during the three months ended September 30, 2012 as compared with the three months ended September 30, 2011. The Company sold approximately $9.7 million residential mortgages during the three months ended September 30, 2012, as compared to no sales during the same period in 2011. These increases were partially offset by a decrease in service charges on deposit accounts of approximately $0.9 million, or 16.4%, for the three months ended September 30, 2012, compared with the same period in 2011 primarily due to the aforementioned decrease in overdraft fee income.

Page 5 of 13

Noninterest Expense and Income Tax Expense

Noninterest expense for the nine months ended September 30, 2012 was $145.3 million, up $12.0 million or 9.0%, for the same period in 2011. Salaries and employee benefits increased $4.3 million, or 5.7%, for the nine months ended September 30, 2012, compared with the same period in 2011. This increase was due primarily to increases in full-time-equivalent employees from acquisitions, merit increases, and increased pension expenses. Professional fees and outside services increased $1.5 million, or 23.2%, for the nine months ended September 30, 2012 as compared to the same period in 2011. Data processing and communications expenses increased approximately $1.0 million, or 10.5%, for the nine months ended September 30, 2012 as compared to the same period in 2011, due primarily to expansion into new markets. Merger related expenses totaled $1.9 million in the first nine months of 2012, as compared to $0.2 million for the same period in 2011. Other operating expenses increased $2.0 million in the first nine months of 2012 as compared with the same period in 2011. These increases were partially offset by a decrease in Federal Deposit Insurance Corporation ("FDIC") expenses of approximately $0.6 million for the nine months ended September 30, 2012 as compared to the nine months ended September 30, 2011. This decrease was due to the FDIC redefining the deposit insurance assessment base effective the second quarter of 2011. Income tax expense for the nine month period ended September 30, 2012 was $17.0 million, down from $17.4 million for the same period in 2011. The effective tax rate was 29.1% for the nine months ended September 30, 2012, compared to 28.2% for the same period in 2011.

Noninterest expense for the three months ended September 30, 2012 was $49.4 million, up $4.4 million or 9.7%, for the same period in 2011. Salaries and employee benefits increased $1.6 million, or 6.3%, for the three months ended September 30, 2012, compared with the same period in 2011. This increase was due primarily to increases in full-time-equivalent employees from acquisitions, merit increases, and increased pension expenses. Occupancy expenses for the three months ended September 30, 2012 increased $0.6 million, or 14.1%, over the same period in 2011 primarily due to aforementioned expansion. Professional fees and outside services increased approximately $0.5 million, or 23.5%, for the three months ended September 30, 2012 as compared to the same period in 2011, due primarily to a nonrecurring consulting fee incurred during the period. Merger related expenses totaled $0.6 million for the three months ended September 30, 2012 as compared with $0.2 for the same period in 2011, which also contributed to the increase in noninterest expense for the period. Other operating expenses increased $0.8 million for the three months ended September 30, 2012 as compared to the same period in 2011. Income tax expense for the three month period ended September 30, 2012 was $5.5 million, up from $5.1 million for the same period in 2011. The effective tax rate was 27.5% for the three months ended September 30, 2012, compared to 25.2% for the same period in 2011.

Balance Sheet

Total assets were $6.0 billion at September 30, 2012, up $430.5 million or 7.7% from December 31, 2011. Loans and leases were $4.3 billion at September 30, 2012, up $450.9 million from December 31, 2011. Total deposits were $4.8 billion at September 30, 2012, up $438.9 million from December 31, 2011. Stockholders' equity was $576.7 million, representing a total equity-to-total assets ratio of 9.56% at September 30, 2012, compared with $538.1 million or a total equity-to-total assets ratio of 9.61% at December 31, 2011.

Page 6 of 13

Stock Repurchase Program

Under previously disclosed stock repurchase plans, the Company purchased 769,568 shares of its common stock during the nine month period ended September 30, 2012, for a total of $15.5 million at an average price of $20.13 per share. At September 30, 2012, there were 748,013 shares available for repurchase under a previously disclosed repurchase plan, which expires on December 31, 2013.

Dividend

The NBT Board of Directors declared a 2012 fourth-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on December 15, 2012 to shareholders of record as of December 1, 2012.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $6.0 billion at September 30, 2012. The company primarily operates through NBT Bank, N.A., a full-service community bank with three divisions, and through two financial services companies. NBT Bank, N.A. has 137 locations, including 97 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; 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.

Page 7 of 13

NBT Bancorp Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

(unaudited)

							Net			Percent
	2012			2011			Change			Change
	(dollars in thousands, except per share data)

Three Months Ended September 30,
Net Income	$	14,535		$	15,217		$	(682	)		-4	%
Diluted Earnings Per Share	$	0.43		$	0.45		$	(0.02	)		-4	%
Weighted Average Diluted Common Shares Outstanding		33,961,375			33,567,564			393,811			1	%
Return on Average Assets (1)		0.97	%		1.12	%		-15	bp		-13	%
Return on Average Equity (1)		10.13	%		11.21	%		-108	bp		-10	%
Net Interest Margin (2)		3.90	%		4.14	%		-24	bp		-6	%

Nine Months Ended September 30,
Net Income	$	41,442		$	44,179		$	(2,737	)		-6	%
Diluted Earnings Per Share	$	1.23		$	1.29		$	(0.06	)		-5	%
Weighted Average Diluted Common Shares Outstanding		33,626,071			34,159,833			(533,762	)		-2	%
Return on Average Assets (1)		0.95	%		1.09	%		-14	bp		-13	%
Return on Average Equity (1)		9.97	%		10.95	%		-98	bp		-9	%
Net Interest Margin (2)		3.87	%		4.13	%		-26	bp		-6	%

Asset Quality	September 30,			December 31,
		2012			2011
Nonaccrual Loans	$	42,661		$	38,290
90 Days Past Due and Still Accruing	$	2,963		$	3,190
Total Nonperforming Loans	$	45,624		$	41,480
Other Real Estate Owned	$	1,863		$	2,160
Total Nonperforming Assets	$	47,487		$	43,640
Allowance for Loan and Lease Losses	$	70,734		$	71,334
Allowance for Loan and Lease Losses to Total Loans and Leases		1.66	%		1.88	%
Total Nonperforming Loans to Total Loans and Leases		1.07	%		1.09	%
Total Nonperforming Assets to Total Assets		0.79	%		0.78	%
Past Due Loans to Total Loans and Leases		0.65	%		0.89	%
Allowance for Loan and Lease Losses to Total Nonperforming Loans		155.04	%		171.97	%
Net Charge-Offs to YTD Average Loans and Leases (1)		0.47	%		0.56	%

Capital
Equity to Assets		9.56	%		9.61	%
Book Value Per Share	$	17.09		$	16.23
Tangible Book Value Per Share (3)	$	12.06		$	11.70
Tier 1 Leverage Ratio		8.51	%		8.74	%
Tier 1 Capital Ratio		10.82	%		11.56	%
Total Risk-Based Capital Ratio		12.07	%		12.81	%

Quarterly Common Stock Price	2012				2011
Quarter End	High		Low		High		Low
March 31	$	24.10	$	20.75	$	24.98	$	21.55
June 30	$	22.50	$	19.19	$	23.32	$	20.62
September 30	$	22.89	$	19.91	$	23.25	$	17.05
December 31					$	22.63	$	17.47

(1)	Annualized

(2)	Calculated on a FTE basis

(3)	Tangible equity (total equity minus intangible assets) divided by common shares outstanding

Page 8 of 13

NBT Bancorp Inc. and Subsidiaries	September 30,		December 31,
Consolidated Balance Sheets (unaudited)	2012		2011
(in thousands)

ASSETS
Cash and due from banks	$	137,747	$	128,517
Short term interest bearing accounts		2,693		864
Securities available for sale, at fair value		1,191,107		1,244,619
Securities held to maturity (fair value of $62,401 and $72,198 at September 30, 2012 and December 31, 2011, respectively)		61,302		70,811
Trading securities		3,851		3,062
Federal Reserve and Federal Home Loan Bank stock		28,706		27,020
Loans and leases		4,251,119		3,800,203
Less allowance for loan and lease losses		70,734		71,334
Net loans and leases		4,180,385		3,728,869
Premises and equipment, net		77,326		74,541
Goodwill		152,251		132,029
Intangible assets, net		17,346		18,194
Bank owned life insurance		79,854		77,626
Other assets		96,348		92,254
TOTAL ASSETS	$	6,028,916	$	5,598,406

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing)	$	1,187,502	$	1,052,906
Savings, NOW, and money market		2,599,556		2,381,116
Time		1,018,957		933,127
Total deposits		4,806,015		4,367,149
Short-term borrowings		137,365		181,592
Long-term debt		367,144		370,344
Trust preferred debentures		75,422		75,422
Other liabilities		66,309		65,789
Total liabilities		5,452,255		5,060,296

Total stockholders' equity		576,661		538,110

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	6,028,916	$	5,598,406

Page 9 of 13

	Three Months Ended				Nine Months Ended
NBT Bancorp Inc. and Subsidiaries	September 30,				September 30,
Consolidated Statements of Income (unaudited)	2012		2011		2012		2011
(in thousands, except per share data)
Interest, fee and dividend income:
Loans and leases	$	53,817	$	50,991	$	154,534	$	152,977
Securities available for sale		6,550		7,771		21,024		23,622
Securities held to maturity		572		680		1,829		2,225
Other		348		342		1,153		1,275
Total interest, fee and dividend income		61,287		59,784		178,540		180,099
Interest expense:
Deposits		4,544		5,352		14,521		17,690
Short-term borrowings		60		56		149		166
Long-term debt		3,640		3,621		10,801		10,783
Trust preferred debentures		436		394		1,319		1,683
Total interest expense		8,680		9,423		26,790		30,322
Net interest income		52,607		50,361		151,750		149,777
Provision for loan and lease losses		4,755		5,175		13,329		15,161
Net interest income after provision for loan and lease losses		47,852		45,186		138,421		134,616
Noninterest income:
Insurance and other financial services revenue		5,591		5,127		17,024		15,925
Service charges on deposit accounts		4,626		5,532		13,538		16,059
ATM and debit card fees		3,378		3,135		9,403		8,731
Retirement plan administration fees		2,718		2,295		7,462		6,734
Trust		2,242		2,090		6,683		6,384
Bank owned life insurance income		639		674		2,228		2,369
Net securities gains		26		12		578		98
Other		2,407		1,329		8,449		3,881
Total noninterest income		21,627		20,194		65,365		60,181
Noninterest expense:
Salaries and employee benefits		26,641		25,068		78,358		74,107
Occupancy		4,437		3,887		13,150		12,396
Data processing and communications		3,352		3,054		10,041		9,085
Professional fees and outside services		2,735		2,215		7,848		6,369
Equipment		2,435		2,288		7,224		6,658
Office supplies and postage		1,597		1,531		4,842		4,418
FDIC expenses		939		920		2,812		3,381
Advertising		701		685		2,308		2,286
Amortization of intangible assets		870		782		2,530		2,286
Loan collection and other real estate owned		614		676		2,051		1,838
Merger		558		155		1,895		155
Other operating		4,552		3,785		12,236		10,285
Total noninterest expense		49,431		45,046		145,295		133,264
Income before income taxes		20,048		20,334		58,491		61,533
Income taxes		5,513		5,117		17,049		17,354
Net income	$	14,535	$	15,217	$	41,442	$	44,179
Earnings Per Share:
Basic	$	0.43	$	0.46	$	1.24	$	1.30
Diluted	$	0.43	$	0.45	$	1.23	$	1.29

Page 10 of 13

NBT Bancorp Inc. and Subsidiaries		3Q		2Q		1Q		4Q		3Q
Quarterly Consolidated Statements of Income (unaudited)		2012		2012		2012		2011		2011
(in thousands, except per share data)
Interest, fee and dividend income:
Loans and leases	$	53,817	$	50,509	$	50,208	$	51,393	$	50,991
Securities available for sale		6,550		7,108		7,366		7,461		7,771
Securities held to maturity		572		617		640		661		680
Other		348		413		392		383		342
Total interest, fee and dividend income		61,287		58,647		58,606		59,898		59,784
Interest expense:
Deposits		4,544		4,834		5,143		5,330		5,352
Short-term borrowings		60		48		41		39		56
Long-term debt		3,640		3,580		3,581		3,621		3,621
Trust preferred debentures		436		434		449		409		394
Total interest expense		8,680		8,896		9,214		9,399		9,423
Net interest income		52,607		49,751		49,392		50,499		50,361
Provision for loan and lease losses		4,755		4,103		4,471		5,576		5,175
Net interest income after provision for loan and lease losses		47,852		45,648		44,921		44,923		45,186
Noninterest income:
Insurance and other financial services revenue		5,591		5,279		6,154		4,918		5,127
Service charges on deposit accounts		4,626		4,571		4,341		5,405		5,532
ATM and debit card fees		3,378		3,063		2,962		2,911		3,135
Retirement plan administration fees		2,718		2,411		2,333		2,184		2,295
Trust		2,242		2,312		2,129		2,480		2,090
Bank owned life insurance income		639		618		971		716		674
Net securities gains		26		97		455		52		12
Other		2,407		2,331		3,711		1,464		1,329
Total noninterest income		21,627		20,682		23,056		20,130		20,194
Noninterest expense:
Salaries and employee benefits		26,641		24,992		26,725		25,105		25,068
Occupancy		4,437		4,222		4,491		3,967		3,887
Data processing and communications		3,352		3,431		3,258		3,186		3,054
Professional fees and outside services		2,735		2,388		2,725		2,552		2,215
Equipment		2,435		2,409		2,380		2,206		2,288
Office supplies and postage		1,597		1,574		1,671		1,655		1,531
FDIC expenses		939		942		931		886		920
Advertising		701		805		802		1,174		685
Amortization of intangible assets		870		841		819		760		782
Loan collection and other real estate owned		614		799		638		793		676
Merger		558		826		511		649		155
Other operating		4,552		4,161		3,523		4,479		3,785
Total noninterest expense		49,431		47,390		48,474		47,412		45,046
Income before income taxes		20,048		18,940		19,503		17,641		20,334
Income taxes		5,513		5,683		5,853		3,919		5,117
Net income	$	14,535	$	13,257	$	13,650	$	13,722	$	15,217
Earnings per share:
Basic	$	0.43	$	0.40	$	0.41	$	0.42	$	0.46
Diluted	$	0.43	$	0.40	$	0.41	$	0.41	$	0.45

Page 11 of 13

Three Months ended September 30,
			2012							2011
	Average				Yield/			Average				Yield/
(dollars in thousands)	Balance		Interest		Rates			Balance		Interest		Rates
ASSETS
Short-term interest bearing accounts	$	10,392	$	11		0.43	%	$	25,088	$	11		0.17	%
Securities available for sale (1)(excluding unrealized gains or losses)		1,168,326		7,023		2.39	%		1,120,083		8,317		2.95	%
Securities held to maturity (1)		62,746		861		5.46	%		74,482		1,026		5.46	%
Investment in FRB and FHLB Banks		28,706		337		4.67	%		27,022		329		4.84	%
Loans and leases (2)		4,197,046		54,046		5.12	%		3,686,693		51,227		5.51	%
Total interest earning assets	$	5,467,216	$	62,278		4.53	%	$	4,933,368	$	60,910		4.90	%
Other assets		504,194							442,275
Total assets	$	5,971,410						$	5,375,643

LIABILITIES AND STOCKHOLDERS' EQUITY
Money market deposit accounts	$	1,111,624	$	495		0.18	%	$	1,036,572	$	811		0.31	%
NOW deposit accounts		686,768		377		0.22	%		631,284		483		0.30	%
Savings deposits		706,927		149		0.08	%		615,168		170		0.11	%
Time deposits		1,035,868		3,523		1.35	%		882,896		3,888		1.75	%
Total interest bearing deposits	$	3,541,187	$	4,544		0.51	%	$	3,165,920	$	5,352		0.67	%
Short-term borrowings		178,277		60		0.13	%		172,370		56		0.13	%
Trust preferred debentures		75,422		436		2.30	%		75,422		394		2.07	%
Long-term debt		367,146		3,640		3.94	%		370,349		3,621		3.88	%
Total interest bearing liabilities	$	4,162,032	$	8,680		0.83	%	$	3,784,061	$	9,423		0.99	%
Demand deposits		1,173,638							983,318
Other liabilities		64,860							69,860
Stockholders' equity		570,880							538,404
Total liabilities and stockholders' equity	$	5,971,410						$	5,375,643
Net interest income (FTE)				53,598							51,487
Interest rate spread						3.70	%						3.91	%
Net interest margin						3.90	%						4.14	%
Taxable equivalent adjustment				991							1,126
Net interest income			$	52,607						$	50,361

(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 13

Nine Months ended September 30,
			2012							2011
	Average				Yield/			Average				Yield/
(dollars in thousands)	Balance		Interest		Rates			Balance		Interest		Rates
ASSETS
Short-term interest bearing accounts	$	64,040	$	131		0.27	%	$	97,973	$	191		0.26	%
Securities available for sale (1)(excluding unrealized gains or losses)		1,196,389		22,483		2.51	%		1,105,777		25,330		3.06	%
Securities held to maturity (1)		67,237		2,757		5.48	%		84,660		3,353		5.29	%
Investment in FRB and FHLB Banks		27,874		1,022		4.90	%		27,112		1,084		5.34	%
Loans and leases (2)		3,982,486		155,230		5.21	%		3,650,667		153,678		5.63	%
Total interest earning assets	$	5,338,026	$	181,623		4.54	%	$	4,966,189	$	183,636		4.94	%
Other assets		476,575							428,959
Total assets	$	5,814,601						$	5,395,148

LIABILITIES AND STOCKHOLDERS' EQUITY
Money market deposit accounts	$	1,105,616	$	1,646		0.20	%	$	1,070,971	$	2,937		0.37	%
NOW deposit accounts		695,502		1,387		0.27	%		667,012		1,745		0.35	%
Savings deposits		675,346		391		0.08	%		599,173		517		0.12	%
Time deposits		988,596		11,097		1.50	%		911,161		12,491		1.83	%
Total interest bearing deposits	$	3,465,060	$	14,521		0.56	%	$	3,248,317	$	17,690		0.73	%
Short-term borrowings		170,903		149		0.12	%		153,857		166		0.14	%
Trust preferred debentures		75,422		1,319		2.34	%		75,422		1,683		2.98	%
Long-term debt		368,592		10,801		3.91	%		369,930		10,783		3.90	%
Total interest bearing liabilities	$	4,079,977	$	26,790		0.88	%	$	3,847,526	$	30,322		1.05	%
Demand deposits		1,116,210							940,332
Other liabilities		63,232							67,968
Stockholders' equity		555,182							539,322
Total liabilities and stockholders' equity	$	5,814,601						$	5,395,148
Net interest income (FTE)				154,833							153,314
Interest rate spread						3.67	%						3.89	%
Net interest margin						3.87	%						4.13	%
Taxable equivalent adjustment				3,083							3,537
Net interest income			$	151,750						$	149,777

(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 13

NBT Bancorp Inc. and Subsidiaries
Loans and Leases (Unaudited)

	September 30,			December 31,
(In thousands)	2012			2011
Residential real estate mortgages		$	650,448		$	581,511
Commercial			697,213			611,298
Commercial real estate mortgages			1,083,675			888,879
Real estate construction and development			99,181			93,977
Agricultural and agricultural real estate mortgages			112,822			108,423
Consumer			1,031,572			946,470
Home equity			576,208			569,645
Total loans and leases		$	4,251,119		$	3,800,203

DELAWARE	0-14703	16-1268674
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

	NBT BANCORP INC.
	(Registrant)

	/s/ Michael J. Chewens
	Michael J. Chewens
	Senior Executive Vice President and Chief Financial Officer

Date: October 24, 2012

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