FOR IMMEDIATE RELEASE

ATTENTION: FINANCIAL AND BUSINESS EDITORS

Contact:	John H. Watt Jr., President and CEO
	Michael J. Chewens, CFO
	NBT Bancorp Inc.
	52 South Broad Street
	Norwich, NY 13815
	607-337-6119

NBT BANCORP INC. ANNOUNCES RECORD FIRST QUARTER DILUTED EARNINGS PER SHARE OF $0.46

NORWICH, NY (April 24, 2017) – NBT Bancorp Inc. (“NBT”) (NASDAQ: NBTB) reported net income for the quarter ended March 31, 2017 of $20.3 million, up from $18.9 million from the first quarter of 2016. Earnings per diluted share (“EPS”) for the quarter ended March 31, 2017 was $0.46, up from $0.43 for the first quarter of 2016.

2017 First Quarter Highlights:

First quarter loan growth of 4.9% (annualized)

Average demand deposits up 9.6% from the first quarter of 2016

Net interest margin expands 5 basis points

Net interest income up 6.1% from the first quarter of 2016

Adopted new accounting guidance for equity-based transactions

“Our results for the first quarter of 2017 were strong, as indicated by our record first quarter EPS of $0.46 per diluted share and net income of $20.3 million supported by healthy loan and deposit growth,” said NBT President and CEO John H. Watt Jr. “NBT is well positioned to benefit from rising rates. After many years of managing our balance sheet to prepare for a more favorable rate environment, we have experienced growth in net interest income and margin expansion. We are prepared to capture additional margin expansion should conditions remain favorable later this year. As we closed the first quarter, we accelerated the growth of our retirement services business line with the acquisition of Downeast Pension Services, Inc. This retirement plan services company, based in New Gloucester, Maine, deepens our position in the defined benefits area and allows us to expand our presence in eastern New England.”

Net interest income was $68.5 million for the first quarter of 2017, up $1.1 million from the previous quarter. Fully taxable equivalent (“FTE”) net interest margin was 3.46% for the three months ended March 31, 2017, up from 3.41% for the previous quarter. The increase in net interest margin from the previous quarter was driven by an increase in yields on earning assets primarily due to higher interest rates in the quarter and two fewer days in the first quarter. Average interest earning assets were up $164.3 million, or 2.1%, for the first quarter of 2017 as compared to the prior quarter, primarily driven by a $74.3 million increase in securities available for sale and a $55.1 million increase in loans. Interest expense for the first quarter of 2017 was up $0.3 million from the fourth quarter of 2016 and resulted primarily from an increase in short-term interest rates and a higher level of average short-term borrowings to total interest bearing liabilities as a result of seasonal deposit outflows.

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Net interest income was $68.5 million for the first quarter of 2017, up $3.9 million from the first quarter of 2016. FTE net interest margin was 3.46% for the three months ended March 31, 2017, down from 3.47% for the first quarter of 2016. Interest income for the first quarter of 2017 was up $4.5 million from the first quarter of 2016 primarily due to 7.4% increase in average interest earning assets. Interest expense for the first quarter of 2017 was up $0.6 million from the same period in 2016 and resulted primarily from increased interest rates and the average balance of interest bearing liabilities.

Noninterest income for the three months ended March 31, 2017 was $28.8 million, up $0.7 million from the fourth quarter of 2016 and up $0.4 million from the same period in 2016. The increase from the prior quarter was primarily driven by a $1.1 million seasonal increase in insurance and other financial services revenue.

Noninterest expense for the three months ended March 31, 2017 was $61.3 million, up $3.6 million from the previous quarter. The increase from the prior quarter was due primarily to a $2.0 million increase in salaries and benefits due primarily to higher stock-based compensation and employee benefits expenses. Occupancy expense increased from the prior quarter by $1.0 million due to seasonal expenses. In addition, other noninterest expense increased $1.2 million from the previous quarter primarily due to a $1.4 million favorable accrual adjustment recorded in the fourth quarter of 2016. Noninterest expense increased $3.1 million from the first quarter of 2016 due primarily to a $1.1 million increase in salaries and benefits expense due primarily to merit pay increases and higher stock-based compensation expense.

During the first quarter of 2017, NBT adopted new accounting guidance for equity-based transactions requiring that all excess tax benefits and tax deficiencies associated with equity-based compensation be recognized as an income tax benefit or expense in the income statement. Previously, tax effects resulting from changes in NBT’s share price subsequent to the grant date were recorded through stockholders’ equity at the time of vesting or exercise. The adoption of the accounting guidance resulted in a $1.5 million income tax benefit in the first quarter of 2017, or $0.03 of diluted earnings per share.

Income tax expense for the three months ended March 31, 2017 was $8.3 million, down $1.8 million from the prior quarter and $1.4 million from the first quarter of 2016. The effective tax rate of 29.0% for the first quarter of 2017 was down from 34.0% for the prior quarter and the first quarter of 2016 primarily due to the $1.5 million income tax benefit related to the adoption of new accounting guidance in the first quarter of 2017. Excluding the tax benefit of the new accounting guidance the effective tax rate was 34.3% for the first quarter of 2017.

Asset Quality

Net charge-offs were $6.9 million for the three months ended March 31, 2017, down from $8.6 million for the prior quarter and up from $4.8 million for the same period in 2016. Provision expense was $7.4 million for the three months ended March 31, 2017, as compared with $8.2 million for the prior quarter and $6.1 million for the first quarter of 2016. Annualized net charge-offs to average loans for the first quarter of 2017 was 0.45%, compared with 0.39% for the full year of 2016 and 0.33% for the first quarter of 2016.

Nonperforming loans to total loans was 0.56% at March 31, 2017, down from 0.65% at December 31, 2016 and 0.69% at March 31, 2016. Past due loans as a percentage of total loans were 0.54% at March 31, 2017, down from 0.64% at December 31, 2016 and up from 0.50% at March 31, 2016.

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The allowance for loan losses totaled $65.7 million at March 31, 2017, compared to $65.2 million at December 31, 2016 and $64.3 million at March 31, 2016. The allowance for loan losses as a percentage of loans was 1.05% (1.13% excluding acquired loans) at March 31, 2017, consistent with 1.05% (1.13% excluding acquired loans) at December 31, 2016 and 1.08% (1.18% excluding acquired loans) at March 31, 2016.

Balance Sheet

Total assets were $8.9 billion at March 31, 2017, up $78.2 million, or 0.9% from December 31, 2016. Loans were $6.3 billion at March 31, 2017, up $74.2 million from December 31, 2016, due to growth in the commercial, consumer and residential portfolios. Total deposits were $7.2 billion at March 31, 2017, up $211.4 million, or 3.0%, from December 31, 2016. Stockholders’ equity was $926.8 million, representing a total equity-to-total assets ratio of 10.36% at March 31, 2017, compared with $913.3 million or a total equity-to-total assets ratio of 10.30% at December 31, 2016.

Stock Repurchase Program

The Company did not purchase shares of its common stock during the three months ended March 31, 2017. As of March 31, 2017, there were 1,000,000 shares available for repurchase under a plan authorized on March 28, 2016, which expires on December 31, 2017.

Other Events

On April 3, 2017, NBT Bank, N.A. (“NBT Bank”), the wholly owned national bank subsidiary of NBT, acquired Downeast Pension Services, Inc. (“DPS”). DPS, a 25-year-old retirement plan services company based in New Gloucester, Maine, provides full-service, third-party administration for company-sponsored retirement plans. DPS specializes in the defined contribution area. Services offered by DPS include plan design, plan consulting, valuations, compliance testing, contribution calculations and contract administration. This acquisition supports the continued growth of NBT Bank’s retirement services business line. DPS will have access to the resources of NBT Bank’s long-established national retirement services infrastructure to support enhanced service to its customers. DPS will continue to operate as a stand-alone business, retaining its brand and team of professionals.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $8.9 billion at March 31, 2017. The company primarily operates through NBT Bank, N.A., a full-service community bank and through two financial services companies. NBT Bank, N.A. has 154 banking locations with offices in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire and Maine. EPIC Advisors, Inc., based in Rochester, N.Y., is a full-service 401(k) plan recordkeeping firm. NBT-Mang Insurance Agency, 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.epic1st.com and www.nbtmang.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 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.

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 acquisition related intangible amortization expense on earnings and equity as well as providing a fully taxable equivalent yield on securities and loans. 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 results of NBT’s core business as well as provide information standard in the financial institution industry. 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)

	2017			2016
	1st Q			4th Q			3rd Q			2nd Q			1st Q
Profitability:
Diluted Earnings Per Share	$	0.46		$	0.45		$	0.46		$	0.46		$	0.43
Weighted Average Diluted Common Shares Outstanding		43,883,471			43,703,122			43,562,489			43,453,674			43,707,489
Return on Average Assets (1)		0.92	%		0.89	%		0.92	%		0.94	%		0.92	%
Return on Average Equity (1)		8.94	%		8.54	%		8.80	%		9.00	%		8.63	%
Return on Average Tangible Common Equity (1)(3)		13.24	%		12.68	%		13.16	%		13.54	%		13.17	%
Net Interest Margin (1)(2)		3.46	%		3.41	%		3.40	%		3.44	%		3.47	%

Balance Sheet Data:
Securities Available for Sale	$	1,367,574		$	1,338,290		$	1,288,899		$	1,271,596		$	1,259,874
Securities Held to Maturity		515,793			527,948			485,877			500,840			466,914
Net Loans		6,206,603			6,132,857			6,094,517			5,974,825			5,903,491
Total Assets		8,945,485			8,867,268			8,773,024			8,624,780			8,472,964
Total Deposits		7,185,051			6,973,688			6,949,238			6,740,416			6,905,042
Total Borrowings		745,462			886,986			800,367			877,926			579,441
Total Liabilities		8,018,646			7,953,952			7,863,675			7,728,427			7,591,237
Stockholders' Equity		926,839			913,316			909,349			896,353			881,727

Asset Quality:
Nonaccrual Loans	$	32,674		$	35,712		$	40,716		$	37,397		$	38,944
90 Days Past Due and Still Accruing		2,392			4,810			4,444			1,613			2,185
Total Nonperforming Loans		35,066			40,522			45,160			39,010			41,129
Other Real Estate Owned		6,940			5,581			2,501			2,211			2,716
Total Nonperforming Assets		42,006			46,103			47,661			41,221			43,845
Allowance for Loan Losses		65,700			65,200			65,668			64,568			64,318

Asset Quality Ratios (Total):
Allowance for Loan Losses to Total Loans		1.05	%		1.05	%		1.07	%		1.07	%		1.08	%
Total Nonperforming Loans to Total Loans		0.56	%		0.65	%		0.73	%		0.65	%		0.69	%
Total Nonperforming Assets to Total Assets		0.47	%		0.52	%		0.54	%		0.48	%		0.52	%
Allowance for Loan Losses to Total Nonperforming Loans		187.36	%		160.90	%		145.41	%		165.52	%		156.38	%
Past Due Loans to Total Loans		0.54	%		0.64	%		0.57	%		0.60	%		0.50	%
Net Charge-Offs to Average Loans (1)		0.45	%		0.56	%		0.35	%		0.30	%		0.33	%

Asset Quality Ratios (Originated) (4):
Allowance for Loan Losses to Loans		1.13	%		1.13	%		1.15	%		1.16	%		1.18	%
Nonperforming Loans to Loans		0.53	%		0.61	%		0.68	%		0.62	%		0.67	%
Allowance for Loan Losses to Nonperforming Loans		213.71	%		186.82	%		168.52	%		186.71	%		175.40	%
Past Due Loans to Loans		0.55	%		0.66	%		0.56	%		0.61	%		0.51	%

Capital:
Equity to Assets		10.36	%		10.30	%		10.37	%		10.39	%		10.41	%
Book Value Per Share	$	21.34		$	21.11		$	21.08		$	20.85		$	20.57
Tangible Book Value Per Share (5)	$	14.88		$	14.61		$	14.57		$	14.31		$	13.99
Tier 1 Leverage Ratio		9.08	%		9.11	%		9.05	%		9.03	%		9.15	%
Common Equity Tier 1 Capital Ratio		10.02	%		9.98	%		9.84	%		9.83	%		9.79	%
Tier 1 Capital Ratio		11.43	%		11.42	%		11.28	%		11.29	%		11.28	%
Total Risk-Based Capital Ratio		12.40	%		12.39	%		12.27	%		12.29	%		12.29	%
Common Stock Price (End of Period)	$	37.07		$	41.88		$	32.87		$	28.63		$	26.95

(1)	Annualized

(2)	Calculated on a Fully Taxable Equivalent ("FTE") basis

(3)	Non-GAAP measure - excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:

	2017		2016
	1st Q		4th Q		3rd Q		2nd Q		1st Q

Net Income	$	20,279	$	19,608	$	20,001	$	19,909	$	18,891
Amortization of intangible assets (net of tax)		597		582		582		567		670
	$	20,876	$	20,190	$	20,583	$	20,476	$	19,561

Average stockholders' equity	$	920,047	$	913,850	$	904,445	$	890,053	$	880,311
Less: average goodwill and other intangibles		280,774		280,275		282,307		281,709		282,751
Average tangible common equity	$	639,273	$	633,575	$	622,138	$	608,344	$	597,560

(4)	Non-GAAP measure - Excludes acquired loans

(5)	Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding

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NBT Bancorp Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(unaudited, dollars in thousands)

ASSETS	March 31, 2017		December 31, 2016
Cash and due from banks	$	137,308	$	147,789
Short term interest bearing accounts		4,588		1,392
Securities available for sale, at fair value		1,367,574		1,338,290
Securities held to maturity (fair value of $513,654 and $525,050 at March 31, 2017 and December 31, 2016, respectively)		515,793		527,948
Trading securities		10,044		9,259
Federal Reserve and Federal Home Loan Bank stock		42,577		47,033
Loans		6,272,303		6,198,057
Less allowance for loan losses		65,700		65,200
Net loans		6,206,603		6,132,857
Premises and equipment, net		83,144		84,187
Goodwill		265,439		265,439
Intangible assets, net		14,848		15,815
Bank owned life insurance		169,423		168,012
Other assets		128,144		129,247
TOTAL ASSETS	$	8,945,485	$	8,867,268

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing)	$	2,205,419	$	2,195,845
Savings, NOW, and money market		4,153,552		3,905,432
Time		826,080		872,411
Total deposits		7,185,051		6,973,688
Short-term borrowings		540,243		681,703
Long-term debt		104,023		104,087
Junior subordinated debt		101,196		101,196
Other liabilities		88,133		93,278
Total liabilities		8,018,646		7,953,952

Total stockholders' equity		926,839		913,316

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	8,945,485	$	8,867,268

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NBT Bancorp Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(unaudited, dollars in thousands except per share data)

	Three Months Ended March 31,
	2017		2016
Interest, fee and dividend income:
Loans	$	64,027	$	61,230
Securities available for sale		7,009		5,987
Securities held to maturity		2,781		2,288
Other		619		449
Total interest, fee and dividend income		74,436		69,954
Interest expense:
Deposits		3,474		3,597
Short-term borrowings		1,139		328
Long-term debt		606		833
Junior subordinated debt		726		619
Total interest expense		5,945		5,377
Net interest income		68,491		64,577
Provision for loan losses		7,379		6,098
Net interest income after provision for loan losses		61,112		58,479
Noninterest income:
Insurance and other financial services revenue		6,770		6,946
Service charges on deposit accounts		3,977		3,939
ATM and debit card fees		4,950		4,583
Retirement plan administration fees		4,172		3,754
Trust fees		4,532		4,376
Bank owned life insurance income		1,411		1,291
Net securities gains		-		29
Other		2,938		3,449
Total noninterest income		28,750		28,367
Noninterest expense:
Salaries and employee benefits		33,587		32,441
Occupancy		6,170		5,491
Data processing and communications		4,198		4,050
Professional fees and outside services		3,032		3,231
Equipment		3,698		3,460
Office supplies and postage		1,608		1,547
FDIC insurance		1,178		1,258
Advertising		390		504
Amortization of intangible assets		967		1,096
Loan collection and other real estate owned		1,279		705
Other operating		5,175		4,441
Total noninterest expense		61,282		58,224
Income before income taxes		28,580		28,622
Income taxes		8,301		9,731
Net income	$	20,279	$	18,891
Earnings Per Share:
Basic	$	0.47	$	0.44
Diluted	$	0.46	$	0.43

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NBT Bancorp Inc. and Subsidiaries

QUARTERLY CONSOLIDATED STATEMENTS OF INCOME

(unaudited, dollars in thousands except per share data)

	2017		2016
	1st Q		4th Q			3rd Q		2nd Q		1st Q
Interest, fee and dividend income:
Loans	$	64,027	$	63,901		$	63,414	$	62,449	$	61,230
Securities available for sale		7,009		6,057			6,013		5,976		5,987
Securities held to maturity		2,781		2,524			2,544		2,496		2,288
Other		619		627			538		454		449
Total interest, fee and dividend income		74,436		73,109			72,509		71,375		69,954
Interest expense:
Deposits		3,474		3,557			3,607		3,605		3,597
Short-term borrowings		1,139		641			761		579		328
Long-term debt		606		779			819		773		833
Junior subordinated debt		726		707			660		641		619
Total interest expense		5,945		5,684			5,847		5,598		5,377
Net interest income		68,491		67,425			66,662		65,777		64,577
Provision for loan losses		7,379		8,165			6,388		4,780		6,098
Net interest income after provision for loan losses		61,112		59,260			60,274		60,997		58,479
Noninterest income:
Insurance and other financial services revenue		6,770		5,711			6,114		5,625		6,946
Service charges on deposit accounts		3,977		4,270			4,354		4,166		3,939
ATM and debit card fees		4,950		4,868			5,063		4,934		4,583
Retirement plan administration fees		4,172		4,126			4,129		4,054		3,754
Trust fees		4,532		4,717			4,535		4,937		4,376
Bank owned life insurance income		1,411		1,297			1,336		1,271		1,291
Net securities (losses) gains		-		(674	)		-		1		29
Other		2,938		3,773			4,113		4,626		3,449
Total noninterest income		28,750		28,088			29,644		29,614		28,367
Noninterest expense:
Salaries and employee benefits		33,587		31,547			32,783		32,931		32,441
Occupancy		6,170		5,160			5,035		5,254		5,491
Data processing and communications		4,198		4,141			4,183		4,121		4,050
Professional fees and outside services		3,032		3,712			3,343		3,331		3,231
Equipment		3,698		3,632			3,656		3,547		3,460
Office supplies and postage		1,608		1,507			1,438		1,676		1,547
FDIC insurance		1,178		1,273			1,287		1,293		1,258
Advertising		390		823			634		595		504
Amortization of intangible assets		967		952			952		928		1,096
Loan collection and other real estate owned		1,279		923			985		845		705
Other operating		5,175		3,969			5,318		5,924		4,441
Total noninterest expense		61,282		57,639			59,614		60,445		58,224
Income before income taxes		28,580		29,709			30,304		30,166		28,622
Income taxes		8,301		10,101			10,303		10,257		9,731
Net income	$	20,279	$	19,608		$	20,001	$	19,909	$	18,891
Earnings per share:
Basic	$	0.47	$	0.45		$	0.46	$	0.46	$	0.44
Diluted	$	0.46	$	0.45		$	0.46	$	0.46	$	0.43

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

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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
Three Months ended,		Q1 - 2017					Q4 - 2016				Q3 - 2016					Q2 - 2016					Q1 - 2016
ASSETS:
Short-term interest bearing accounts	$	14,342		1.33	%	$	14,190		0.64	%	$	21,279		0.54	%	$	16,063		0.53	%	$	13,639		0.63	%
Securities available for sale (1)		1,352,219		2.14	%		1,277,931		1.92	%		1,257,335		1.93	%		1,227,367		1.99	%		1,188,437		2.06	%
Securities held to maturity (1)		520,283		2.66	%		492,415		2.54	%		494,400		2.54	%		498,493		2.49	%		465,916		2.48	%
Investment in FRB and FHLB Banks		46,326		5.01	%		39,448		6.09	%		43,552		4.65	%		38,939		4.47	%		33,470		5.14	%
Loans (2)		6,211,058		4.19	%		6,155,985		4.14	%		6,092,371		4.15	%		6,007,677		4.19	%		5,884,073		4.20	%
Total interest earning assets	$	8,144,228		3.75	%	$	7,979,969		3.69	%	$	7,908,937		3.69	%	$	7,788,539		3.73	%	$	7,585,535		3.75	%
Other assets		748,476					760,563					754,813					747,074					699,194
Total assets	$	8,892,704				$	8,740,532				$	8,663,750				$	8,535,613				$	8,284,729

LIABILITIES AND STOCKHOLDERS' EQUITY:
Money market deposit accounts	$	1,688,060		0.21	%	$	1,674,119		0.21	%	$	1,636,815		0.22	%	$	1,709,644		0.22	%	$	1,653,930		0.22	%
NOW deposit accounts		1,143,231		0.06	%		1,130,578		0.05	%		1,053,590		0.05	%		1,073,881		0.05	%		1,051,959		0.05	%
Savings deposits		1,176,224		0.05	%		1,145,352		0.06	%		1,146,013		0.06	%		1,143,654		0.06	%		1,105,480		0.06	%
Time deposits		847,410		1.07	%		890,506		1.06	%		902,185		1.07	%		906,250		1.06	%		921,754		1.04	%
Total interest bearing deposits	$	4,854,925		0.29	%	$	4,840,555		0.29	%	$	4,738,603		0.30	%	$	4,833,429		0.30	%	$	4,733,123		0.31	%
Short-term borrowings		657,442		0.70	%		523,708		0.49	%		611,339		0.50	%		484,590		0.48	%		369,443		0.36	%
Long-term debt		104,048		2.36	%		109,656		2.83	%		110,703		2.94	%		124,851		2.55	%		130,420		2.57	%
Junior subordinated debt		101,196		2.91	%		101,196		2.78	%		101,196		2.59	%		101,196		2.49	%		101,196		2.46	%
Total interest bearing liabilities	$	5,717,611		0.42	%	$	5,575,115		0.41	%	$	5,561,841		0.42	%	$	5,544,066		0.41	%	$	5,334,182		0.41	%
Demand deposits		2,159,893					2,136,310					2,079,266					1,994,601					1,970,315
Other liabilities		95,153					115,258					118,198					106,893					99,921
Stockholders' equity		920,047					913,849					904,445					890,053					880,311
Total liabilities and stockholders' equity	$	8,892,704				$	8,740,532				$	8,663,750				$	8,535,613				$	8,284,729

Interest rate spread				3.33	%				3.29	%				3.27	%				3.32	%				3.34	%
Net interest margin				3.46	%				3.41	%				3.40	%				3.44	%				3.47	%

(1)	Securities are shown at average amortized cost

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

Note: Interest income for tax-exempt securities and loans has been adjusted to a Fully Taxable-Equivalent ("FTE") basis using the statutory Federal income tax rate of 35%. The following amounts were the tax-equivalent adjustment to interest income for the quarters ending March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016 respectively (in thousands): $939 ,$921, $900, $874, $856.

Page 10 of 10

NBT Bancorp Inc. and Subsidiaries

CONSOLIDATED LOAN BALANCES

(unaudited, dollars in thousands)

	2017		2016
	1st Q		4th Q		3rd Q		2nd Q		1st Q
Residential real estate mortgages	$	1,275,774	$	1,262,614	$	1,240,337	$	1,219,388	$	1,211,821
Commercial		1,284,464		1,242,701		1,252,644		1,176,008		1,168,191
Commercial real estate		1,540,472		1,543,301		1,528,498		1,497,683		1,448,920
Consumer		1,669,369		1,641,657		1,625,294		1,629,836		1,620,669
Home equity		502,224		507,784		513,412		516,478		518,208
Total loans	$	6,272,303	$	6,198,057	$	6,160,185	$	6,039,393	$	5,967,809