NBT BANCORP INC. ANNOUNCES SECOND QUARTER NET INCOME OF $37.8 MILLION ($0.88 PER DILUTED COMMON SHARE); APPROVES A 7.1% DIVIDEND INCREASE - Form 8-K

NBT BANCORP INC. ANNOUNCES SECOND QUARTER NET INCOME OF $37.8 MILLION ($0.88 PER DILUTED COMMON SHARE); APPROVES A 7.1% DIVIDEND INCREASE

NORWICH, NY (July 25, 2022) - NBT Bancorp Inc. ("NBT" or the "Company") (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and six months ended June 30, 2022.

Net income for the three months ended June 30, 2022 was $37.8 million, or $0.88 per diluted common share, compared to $40.3 million, or $0.92 per diluted share, in the second quarter of 2021 and $39.1 million, or $0.90 per diluted share in the first quarter of 2022. Net interest income recognized in the second quarter of 2022 from the Paycheck Protection Program ("PPP") was approximately $1.3 million ($0.02 per diluted share), compared to $4.7 million ($0.08 per diluted share) in the second quarter of 2021 and $2.0 million ($0.04 per diluted share) in the first quarter of 2022, reflective of higher levels of loan forgiveness in the prior year and prior quarter. Excluding the impact of PPP loan income recognition, net interest income in the second quarter of 2022 improved in comparison to the second quarter of 2021 and the linked first quarter of 2022 due to loan growth, incremental deployment of excess liquidity into investment securities and increases in the Federal Reserve's targeted Federal Funds rate. The Company recorded a provision for loan losses of $4.4 million ($0.08 per diluted share) in the second quarter of 2022, compared to a net benefit of $5.2 million ($0.09 per diluted share) in the second quarter of 2021 and a provision of $0.6 million ($0.01 per diluted share) in the first quarter of 2022.

CEO Comments

"We are very pleased with our operating results for the second quarter and first half of 2022, which reflect continued organic loan growth and solid performance by our fee-based businesses. With the increases in the targeted Fed Funds rate in the quarter, we experienced the benefits of an asset-sensitive balance sheet," said NBT President and CEO John H. Watt, Jr. "Our asset quality continues to be excellent, with historically low levels of net charge-offs and nonperforming assets. Given our strong loan growth and increased uncertainty surrounding the domestic macro-economic outlook, we did add to our loan loss reserves at quarter-end."

"We are also pleased to have approved a $0.02, or 7.1% increase, to our quarterly dividend to stockholders," added Watt. "The payment of a meaningful and growing dividend is an important component of our commitment to provide consistent and favorable long-term returns to our stockholders. The increase reflects the continued strength of both our current operating performance and capital position."

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Second Quarter Financial Highlights

Loans

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Deposits

Net Interest Income and Net Interest Margin

Credit Quality and Allowance for Credit Losses

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Noninterest Income

Noninterest Expense

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Income Taxes

Capital

Dividend and Stock Repurchase

Other Events

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Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, July 26, 2022, to review second quarter 2022 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company's Event Calendar page at https://stockholderinfo.nbtbancorp.com/events-calendar/upcoming-events and will be archived for twelve months.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $11.72 billion at June 30, 2022. 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 140 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a national benefits administration firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtinsurance.com.

Forward-Looking Statements

This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as "anticipate," "believe," "expect," "forecasts," "projects," "will," "can," "would," "should," "could," "may," or other similar terms. There are a number of factors, many of which are beyond the Company's control, that could cause actual results to differ materially from those contemplated by 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) local, regional, national and international economic conditions and the impact they may have on the Company and its customers and the Company's assessment of that impact; (2) changes in the level of nonperforming assets and charge-offs; (3) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (4) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board ("FRB"); (5) inflation, interest rate, securities market and monetary fluctuations; (6) political instability; (7) acts of war, including international military conflicts, or terrorism; (8) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (9) changes in consumer spending, borrowings and savings habits; (10) changes in the financial performance and/or condition of the Company's borrowers; (11) technological changes; (12) acquisitions and integration of acquired businesses; (13) the ability to increase market share and control expenses; (14) changes in the competitive environment among financial holding companies; (15) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiaries must comply, including those under the Dodd-Frank Act, Economic Growth, Regulatory Relief, Consumer Protection Act of 2018, Coronavirus Aid, Relief and Economic Security Act ("CARES Act"), and other legislative and regulatory responses to the coronavirus ("COVID-19") pandemic; (16) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board ("FASB") and other accounting standard setters; (17) changes in the Company's organization, compensation and benefit plans; (18) the costs and effects of legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; (19) greater than expected costs or difficulties related to the integration of new products and lines of business; (20) the adverse impact on the U.S. economy, including the markets in which we operate, of the COVID-19 global pandemic; and (21) the Company's success at managing the risks involved in the foregoing items.

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Currently, one of the most significant factors that could cause actual outcomes to differ materially from the Company's forward-looking statements is the potential adverse effect of the current COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of the Company, its customers and the global economy and financial markets. The extent to which the COVID-19 pandemic impacts the Company will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, treatment developments, public adoption rates of COVID-19 vaccines, including booster shots, and their effectiveness against emerging variants of COVID-19, the impact of the COVID-19 pandemic on the Company's customers and demand for financial services, the actions governments, businesses and individuals take in response to the pandemic, the impact of the COVID-19 pandemic and actions taken in response to the pandemic on global and regional economies, national and local economic activity, and the pace of recovery when the COVID-19 pandemic subsides, among others. Moreover, investors are cautioned to interpret many of the risks identified under the section entitled "Risk Factors" in our Form 10-K for the year ended December 31, 2021 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic.

The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, and advises readers that various factors including, but not limited to, those described above and other factors discussed in the Company's annual and quarterly reports previously filed with the SEC, could affect the Company's financial performance and could cause the Company's actual results or circumstances for future periods to differ materially from those anticipated or projected.

Unless required by law, the Company does not undertake, and specifically disclaims any obligations to, publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

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"). 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 provide useful information that is important to an understanding of the results of the Company'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 the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation.

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NBT Bancorp Inc. and Subsidiaries
Selected Financial Data
(unaudited, dollars in thousands except per share data)

	2022			2021
		2nd Q			1st Q			4th Q			3rd Q			2nd Q
Profitability:
Diluted earnings per share		$	0.88			$	0.90			$	0.86			$	0.86			$	0.92
Weighted average diluted common shares outstanding			43,092,851				43,385,451				43,574,539				43,631,497				43,792,940
Return on average assets3			1.28	%			1.32	%			1.23	%			1.26	%			1.39	%
Return on average equity3			12.73	%			12.78	%			11.89	%			12.04	%			13.42	%
Return on average tangible common equity1 3			17.00	%			16.87	%			15.70	%			15.97	%			17.93	%
Net interest margin1 3			3.21	%			2.95	%			3.08	%			2.88	%			3.00	%
		6 Months Ended June 30,
			2022				2021
Profitability:
Diluted earnings per share		$	1.78			$	1.83
Weighted average diluted common shares outstanding			43,238,248				43,839,060
Return on average assets3			1.30	%			1.42	%
Return on average equity3			12.76	%			13.49	%
Return on average tangible common equity1 3			16.93	%			18.08	%
Net interest margin1 3			3.08	%			3.08	%
			2022				2021
		2nd Q			1st Q			4th Q			3rd Q			2nd Q
Balance sheet data:
Short-term interest-bearing accounts		$	328,593			$	913,315			$	1,111,296			$	1,131,074			$	883,758
Securities available for sale			1,619,356				1,662,697				1,687,361				1,576,030				1,534,733
Securities held to maturity			936,512				895,005				733,210				683,103				622,351
Net loans			7,684,081				7,559,826				7,406,459				7,473,442				7,419,127
Total assets			11,720,459				12,147,833				12,012,111				11,994,411				11,574,947
Total deposits			10,028,708				10,461,623				10,234,469				10,195,178				9,785,257
Total borrowings			265,796				278,788				311,476				313,311				304,110
Total liabilities			10,531,903				10,945,583				10,761,658				10,752,954				10,349,891
Stockholders' equity			1,188,556				1,202,250				1,250,453				1,241,457				1,225,056
Capital:
Equity to assets			10.14	%			9.90	%			10.41	%			10.35	%			10.58	%
Tangible equity ratio1			7.87	%			7.70	%			8.20	%			8.13	%			8.28	%
Book value per share		$	27.75			$	27.96			$	28.97			$	28.65			$	28.19
Tangible book value per share2		$	20.99			$	21.25			$	22.26			$	21.95			$	21.50
Leverage ratio			9.77	%			9.52	%			9.41	%			9.47	%			9.40	%
Common equity tier 1 capital ratio			12.14	%			12.23	%			12.25	%			12.20	%			12.12	%
Tier 1 capital ratio			13.27	%			13.39	%			13.43	%			13.39	%			13.34	%
Total risk-based capital ratio			15.50	%			15.64	%			15.73	%			15.74	%			15.78	%
Common stock price (end of period)		$	37.59			$	36.13			$	38.52			$	36.12			$	35.97