GlobeNewswire Inc | Apr 26, 2021 04:15PM EDT

April 26, 2021

NORWICH, N.Y., April 26, 2021 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (NBT or the Company) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three months ended March 31, 2021.

Net income for the three months ended March 31, 2021 was $39.8 million, or $0.91 per diluted common share. Net income increased $5.7 million from the previous quarter primarily due to lower provision for loan losses and branch optimization charges recognized in the previous quarter. Net income increased $29.5 million from the first quarter of 2020 due to the adoption of the Current Expected Credit Losses (CECL) accounting methodology, including the estimated impact of the COVID-19 pandemic on expected credit losses, which resulted in first quarter 2020 provision for loan losses of $29.6 million.

Pre-provision net revenue (PPNR)1 for the first quarter of 2021 was $47.5 million compared to $48.2 million in the previous quarter and $44.9 million in the first quarter of 2020.

CEO Comments

The results for the first quarter of 2021 demonstrate the resiliency of our banking platform. We drove commercial loan growth and experienced increased levels of consumer activity. Our mortgage pipeline is strong, and our indirect auto business exceeded production targets, said NBT President and CEO John H. Watt, Jr. We are optimistic about the prospects for the rest of the year driven by pent up demand and a snap back in many sectors of the economy that we anticipate will occur as the markets we serve continue to open up. Sustained levels of excellent credit quality allow for plenty of optionality in the deployment of capital which will drive growth. Record Assets Under Management and Administration in our wealth management business exceeded $9 billion. Finally, we leaned heavily into the Paycheck Protection Program in the latest round of funding to support the Main Street businesses and non-profits that are the backbone of the communities we serve.

First Quarter Financial Highlights

# Net income of $39.8 millionNet Income # Diluted earnings per share of $0.91

Net # Net interest income on a fully taxable equivalent basis wasInterest $79.4 million^1Income / # Net interest margin (?NIM?) on a fully taxable equivalent basisNIM was 3.17%^1, down 3 basis points (?bps?) from the prior quarter

# PPNR^1 was $47.5 million compared to $48.2 million in thePPNR fourth quarter of 2020 and $44.9 million in the first quarter of 2020

# Period end loans were $7.6 billion, up 7%, annualized, from December 31, 2020 # Excluding $536 million of Paycheck Protection Program (?PPP?) loans at March 31, 2021, period end loans increased $29 million or 0.4% from December 31, 2020Loans and # Allowance for loan losses to total loans of 1.38% (1.48%Credit excluding PPP loans and related allowance), down 9 bps from theQuality fourth quarter (down 8 bps excluding PPP loans and related allowance) # Net charge-offs to average loans was 0.12%, annualized (0.13% excluding PPP loans) # Nonperforming assets to total assets was 0.41% (0.43% excluding PPP loans)

# Tangible book value per share^2 grew 1% for the quarter and 9%Capital from prior year to $20.71 at March 31, 2021 # Tangible equity to assets of 8.00%^1 # CET1 ratio of 12.13%; Leverage ratio of 9.60%

Loans

-- Period end total loans were $7.6 billion at March 31, 2021 and $7.5 billion at December 31, 2020. -- Excluding PPP loans, period end loans increased $28.9 million from December 31, 2020. Commercial and industrial loans increased $3.6 million to $1.3 billion; commercial real estate loans increased $57.5 million to $2.4 billion; and total consumer loans decreased $32.2 million to $3.4 billion. -- Total PPP loans as of March 31, 2021 were $536 million (net of unamortized fees). The following activity occurred during the first quarter of 2021: $250 million in originations$132.8 million of loans forgiven$6.2 million recognized into interest income -- Commercial line of credit utilization rate was 22% at March 31, 2021 consistent with 22% at December 31, 2020 and compared to 32% at March 31, 2020.

Deposits

-- Average total deposits in the first quarter of 2021 were $9.3 billion, compared to $9.1 billion in the fourth quarter of 2020, driven by increases in non-interest bearing demand deposit accounts and savings deposit accounts. -- Loan to deposit ratio was 77.8% at March 31, 2021, compared to 82.6% at December 31, 2020.

Net Interest Income and Net Interest Margin

-- Net interest income for the first quarter of 2021 was $79.1 million, down $1.1 million or 1.3% from the fourth quarter of 2020 and up $1.9 million or 2.4% from the first quarter of 2020. -- The NIM on a fully taxable equivalent (FTE) basis for the first quarter of 2021 was 3.17%, down 3 bps from the fourth quarter of 2020 and down 35 bps from the first quarter of 2020. The net impact of PPP loans and excess liquidity impacted the NIM by 8 bps in the both the first quarter and fourth quarter of 2020. Excluding the impact of PPP lending and excess liquidity from each quarter, the NIM decreased 3 bps from the prior quarter primarily due to an 8 bps decline in earning asset yields partially offset by a 6 bps decline in the cost of interest bearing liabilities and a $141 million increase in average checking deposit account balances during the quarter. -- Earning asset yields for the three months ended March 31, 2021 were down 8 bps from the prior quarter and down 69 bps from the same quarter in the prior year. Earning assets grew $155.5 million or 1.6% from the prior quarter and grew $1.3 billion or 14.4% from the same quarter in the prior year. The following are highlights from the prior quarter: Excess liquidity resulted in a $34.8 million increase in the average balances of short-term interest bearing accounts.The average balance of investment securities increased $83.0 million while yields declined 6 bps.Loan yields decreased 4 bps to 4.02% for the quarter. Excluding PPP loans, yields decreased 7 bps from the prior quarter driven by a 12 bps yield reduction in the commercial loan portfolio. -- Total cost of deposits was 0.14% for the first quarter of 2021, down 3 bps from the prior quarter and down 34 bps from the same period in the prior year. -- The cost of interest-bearing liabilities for the three months ended March 31, 2021 was 0.34%, down 6 bps compared to the prior quarter of 0.40% and down 48 bps from the first quarter of 2020 of 0.82%. Cost of interest-bearing deposits decreased 5 bps from the prior quarter and decreased 48 bps from the same quarter in 2020.

Credit Quality and Allowance for Credit Losses

-- Net charge-offs to total average loans of 12 bps (13 bps excluding PPP loans) compared to 21 bps (22 bps excluding PPP loans) in the prior quarter and 32 bps in the first quarter of 2020. The decrease in charge-offs during the first quarter of 2021 was primarily due to lower charge-offs in commercial and indirect auto, which continue to be at lower levels due to pandemic relief programs. -- Nonperforming assets to total assets was 0.41% (0.43% excluding PPP loans) compared to 0.45% (0.47% excluding PPP loans) at December 31, 2020. -- Provision expense for the three months ended March 31, 2021 was ($2.8) million and net charge-offs were $2.2 million. Provision expense decreased $2.2 million from the fourth quarter of 2020 and decreased $32.4 million from the first quarter of 2020. The decrease in provision expense from the prior quarter and first quarter of 2020 was primarily due to the reduction in the level of allowance for loan losses resulting from an improved economic forecast. -- The allowance for loan losses was $105.0 million or 1.38% (1.48% excluding PPP loans and related allowance) of total loans compared to 1.47% (1.56% excluding PPP loans and related allowance) at December 31, 2020. The decrease in the level of allowance for credit losses was primarily due to the positive impact the forecasted improving economic conditions had on expected credit losses. -- As of April 12, 2021, 1.0% of loans (loans outstanding as of March 31, 2021; excluding PPP balances) are in payment deferral programs which is down from the second quarter 2020 peak of 14.9%. -- The reserve for unfunded loan commitments decreased to $5.9 million at March 31, 2021 compared to the prior quarter at $6.4 million.

Noninterest Income

-- Total noninterest income, excluding securities gains (losses), was $36.6 million for the three months ended March 31, 2021, down $1.4 million from the prior quarter and up $0.3 million from the prior year quarter. -- Service charges on deposit accounts were lower than the prior quarter and lower than the first quarter of 2020. Overdraft charges have been lower during the COVID-19 pandemic. -- ATM and debit card fees were comparable to the prior quarter and higher compared to the first quarter of 2020 due to increased volume and higher per transaction rates. -- Retirement plan administration fees were higher than the prior quarter driven by market performance and organic growth, and higher than the first quarter of 2020 due to the April 1, 2020 acquisition of Alliance Benefit Group of Illinois, Inc. (ABG) contributing $1.7 million in revenues during the first quarter of 2021 and $1.5 million during the fourth quarter of 2020. -- The decrease in other noninterest income from the prior quarter was primarily due to lower loan swap fee income and the decrease from the first quarter of 2020 was driven by lower loan swap fee income combined with lower mortgage banking income.

Noninterest Expense

-- Total noninterest expense for the first quarter of 2021 was down 9.7% from the previous quarter and down 4.2% from the first quarter of 2020, primarily due to $4.1 million in branch optimization costs incurred during the fourth quarter of 2020. -- Salaries and benefits increased from the prior quarter due to seasonally higher payroll taxes and stock-based compensation expenses and increased from the first quarter of 2020 driven by the addition of ABGs salaries and benefits. -- Data processing and communications increased from the prior quarter and the first quarter of 2020 driven by charges related to the addition of a digitized PPP platform. -- Professional fees and outside services decreased from the prior quarter due to timing of initiatives. -- Other expenses decreased $7.4 million from the prior quarter due to $4.1 million in branch optimization charges recognized in the prior quarter, a $1.4 million decrease in the provision for the reserve for unfunded commitments, lower travel training expenses and lower pension costs. The decrease from the first quarter of 2020 was due to a $2.5 million decrease in the reserve for unfunded commitments, lower travel training expenses during the COVID-19 pandemic and lower pension costs.

Income Taxes

-- The effective tax rate was 21.9% for the first quarter of 2021 compared to 21.6% for the fourth quarter of 2020 and 14.2% for the first quarter of 2020. The increase from the first quarter of 2020 was due to a higher level of taxable income relative to total income.

Capital

-- Capital ratios remain strong with tangible common equity to tangible assets1 at 8.00%. Tangible book value per share2 grew 1% from the prior quarter and 9% from the prior year quarter to $20.71. -- March 31, 2021 CET1 capital ratio of 12.13%, leverage ratio of 9.60 % and total risk-based capital ratio of 15.92 %.

Stock Repurchase and Dividend

-- The Company purchased 257,031 shares of common stock during the first quarter of 2021 at a weighted average price of $35.09 excluding commissions. As of March 31, 2021, there were 1,742,969 shares available for repurchase under this plan, which expires on December 31, 2021. -- The Board of Directors approved a second-quarter cash dividend of $0.27 per share at a meeting held today. The dividend will be paid on June 15, 2021 to shareholders of record as of June 1, 2021.

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, April 27, 2021, to review first quarter 2021 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Companys 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 $11.5 billion at March 31, 2021. 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 141 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire and Maine, and is currently entering Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a full-service 401(k) plan recordkeeping 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 news 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 Companys 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 Companys 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 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 Companys 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 Companys 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 novel coronavirus, which causes COVID-19 global pandemic; and (21) the Companys success at managing the risks involved in the foregoing items.

Currently, one of the most significant factors that could cause actual outcomes to differ materially from the Companys 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 and its impact on the Companys 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, 2020 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic. The Company cautions readers not 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 Companys annual and quarterly reports previously filed with the SEC, could affect the Companys financial performance and could cause the Companys 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 Companys 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 Companys 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.

Contact: John H. Watt, Jr., President and CEO John V. Moran, Executive Vice President and CFO NBT Bancorp Inc. 52 South Broad Street Norwich, NY 13815 607-337-6589

NBT Bancorp Inc. and Subsidiaries Selected Financial Data (unaudited, dollars in thousands except per share data) 2021 2020 1st Q 4th Q 3rd Q 2nd Q 1st Q Profitability: Dilutedearnings per $ 0.91 $ 0.78 $ 0.80 $ 0.56 $ 0.23 shareWeightedaveragediluted common 43,889,889 43,973,971 43,941,953 43,928,344 44,130,324 sharesoutstandingReturn onaverage assets 1.46 % 1.24 % 1.29 % 0.94 % 0.43 % ^3Return onaverage equity 13.57 % 11.59 % 12.09 % 8.76 % 3.69 % ^3Return onaveragetangible 18.24 % 15.71 % 16.51 % 12.14 % 5.24 % common equity^1 3Net interest 3.17 % 3.20 % 3.17 % 3.38 % 3.52 % margin^1 3 2021 2020 1st Q 4th Q 3rd Q 2nd Q 1st Q Balance sheet data:Securitiesavailable for $ 1,387,028 $ 1,348,698 $ 1,197,925 $ 1,108,443 $ 1,000,980 saleSecuritiesheld to 592,999 616,560 663,088 599,164 621,359 maturityNet loans 7,528,459 7,388,885 7,446,143 7,514,491 7,147,383 Total assets 11,537,253 10,932,906 10,850,212 10,847,184 9,953,543 Total deposits 9,815,930 9,081,692 8,958,183 8,815,891 7,864,638 Total 308,766 406,731 446,737 602,988 714,283 borrowingsTotal 10,346,272 9,745,288 9,684,101 9,704,532 8,841,364 liabilitiesStockholders' 1,190,981 1,187,618 1,166,111 1,142,652 1,112,179 equity Capital: Equity to 10.32 % 10.86 % 10.75 % 10.53 % 11.17 % assetsTangible 8.00 % 8.41 % 8.27 % 8.04 % 8.55 % equity ratio^1Book value per $ 27.43 $ 27.22 $ 26.74 $ 26.20 $ 25.52 shareTangible bookvalue per $ 20.71 $ 20.52 $ 20.02 $ 19.46 $ 18.96 share^2Leverage ratio 9.60 % 9.56 % 9.48 % 9.44 % 10.02 % Common equitytier 1 capital 12.13 % 11.84 % 11.63 % 11.34 % 10.90 % ratioTier 1 capital 13.38 % 13.09 % 12.88 % 12.60 % 12.14 % ratioTotalrisk-based 15.92 % 15.62 % 15.43 % 15.15 % 13.36 % capital ratioCommon stockprice (end of $ 39.90 $ 32.10 $ 26.82 $ 30.06 $ 32.39 period)

NBT Bancorp Inc. and Subsidiaries Selected Financial Data (unaudited, dollars in thousands except per share data) 2021 2020 1st Q 4th Q 3rd Q 2nd Q 1st Q Asset quality:Nonaccrual $ 43,399 $ 44,647 $ 35,896 $ 25,567 $ 29,972 loans90 days pastdue and still 2,155 3,149 2,579 2,057 2,280 accruingTotalnonperforming 45,554 47,796 38,475 27,624 32,252 loansOther real 1,318 1,458 1,605 1,783 2,384 estate ownedTotalnonperforming 46,872 49,254 40,080 29,407 34,636 assetsAllowance for 105,000 110,000 114,500 113,500 100,000 loan losses Asset qualityratios (total):Allowance forloan losses 1.38 % 1.47 % 1.51 % 1.49 % 1.38 % to totalloansTotalnonperforming 0.60 % 0.64 % 0.51 % 0.36 % 0.45 % loans tototal loansTotalnonperforming 0.41 % 0.45 % 0.37 % 0.27 % 0.35 % assets tototal assetsAllowance forloan lossesto total 230.50 % 230.14 % 297.60 % 410.87 % 310.06 % nonperformingloansPast dueloans to 0.22 % 0.37 % 0.26 % 0.30 % 0.51 % total loansNetcharge-offs 0.12 % 0.21 % 0.12 % 0.28 % 0.32 % to averageloans^3 Asset quality ratios (excluding paycheck protection program):Allowance forloan losses 1.48 % 1.56 % 1.62 % 1.59 % 1.38 % to totalloansTotalnonperforming 0.64 % 0.68 % 0.55 % 0.39 % 0.45 % loans tototal loansTotalnonperforming 0.43 % 0.47 % 0.39 % 0.28 % 0.35 % assets tototal assetsAllowance forloan lossesto total 230.44 % 230.10 % 297.53 % 410.78 % 310.06 % nonperformingloansPast dueloans to 0.23 % 0.39 % 0.28 % 0.32 % 0.51 % total loansNetcharge-offs 0.13 % 0.22 % 0.13 % 0.30 % 0.32 % to averageloans^3

NBT Bancorp Inc. and Subsidiaries Consolidated Balance Sheets (unaudited, dollars in thousands) March 31, December 31, Assets 2021 2020 Cash and due from banks $ 182,830 $ 159,995 Short-term interest bearing accounts 972,195 512,686 Equity securities, at fair value 32,247 30,737 Securities available for sale, at fair value 1,387,028 1,348,698 Securities held to maturity (fair value 592,999 616,560 $600,176 and $636,827, respectively)Federal Reserve and Federal Home Loan Bank 25,127 27,353 stockLoans held for sale 1,295 1,119 Loans 7,633,459 7,498,885 Less allowance for loan losses 105,000 110,000 Net loans $ 7,528,459 $ 7,388,885 Premises and equipment, net 72,705 74,206 Goodwill 280,541 280,541 Intangible assets, net 10,923 11,735 Bank owned life insurance 187,458 186,434 Other assets 263,446 293,957 Total assets $ 11,537,253 $ 10,932,906 Liabilities and stockholders' equity Demand (noninterest bearing) $ 3,495,622 $ 3,241,123 Savings, NOW and money market 5,715,935 5,207,090 Time 604,373 633,479 Total deposits $ 9,815,930 $ 9,081,692 Short-term borrowings 95,339 168,386 Long-term debt 14,069 39,097 Subordinated debt, net 98,162 98,052 Junior subordinated debt 101,196 101,196 Other liabilities 221,576 256,865 Total liabilities $ 10,346,272 $ 9,745,288 Total stockholders' equity $ 1,190,981 $ 1,187,618 Total liabilities and stockholders' equity $ 11,537,253 $ 10,932,906

NBT Bancorp Inc. and Subsidiaries Quarterly Consolidated Statements of Income (unaudited, dollars in thousands except per share data) 2021 2020 1st Q 4th Q 3rd Q 2nd Q 1st Q Interest, fee and dividend incomeInterest and fees $ 75,093 $ 76,863 $ 74,998 $ 77,270 $ 78,728 on loansSecuritiesavailable for 5,544 5,478 5,603 5,600 5,753 saleSecurities held 3,382 3,532 3,734 3,926 4,091 to maturityOther 291 568 659 650 829 Total interest,fee and dividend $ 84,310 $ 86,441 $ 84,994 $ 87,446 $ 89,401 incomeInterest expense Deposits $ 3,172 $ 3,887 $ 4,267 $ 4,812 $ 9,104 Short-term 70 193 446 972 1,797 borrowingsLong-term debt 124 369 398 393 393 Subordinated debt 1,359 1,339 1,375 128 - Junior 530 545 565 695 926 subordinated debtTotal interest $ 5,255 $ 6,333 $ 7,051 $ 7,000 $ 12,220 expenseNet interest $ 79,055 $ 80,108 $ 77,943 $ 80,446 $ 77,181 incomeProvision for (2,796 ) (607 ) 3,261 18,840 29,640 loan lossesNet interestincome after $ 81,851 $ 80,715 $ 74,682 $ 61,606 $ 47,541 provision forloan lossesNoninterest incomeService chargeson deposit $ 3,027 $ 3,588 $ 3,087 $ 2,529 $ 3,997 accountsATM and debit 6,862 6,776 7,194 6,136 5,854 card feesRetirement planadministration 10,098 9,011 9,685 9,214 7,941 feesWealth management 7,910 7,456 7,695 6,823 7,273 Insurance 3,461 3,454 3,742 3,292 4,269 Bank owned life 1,381 1,733 1,255 1,381 1,374 insurance incomeNet securities 467 160 84 180 (812 ) gains (losses)Other 3,832 5,937 4,985 5,456 5,527 Total noninterest $ 37,038 $ 38,115 $ 37,727 $ 35,011 $ 35,423 incomeNoninterest expenseSalaries and $ 41,601 $ 41,016 $ 40,451 $ 39,717 $ 40,750 employee benefitsOccupancy 5,873 5,280 5,294 5,065 5,995 Data processingand 4,731 4,157 4,058 4,079 4,233 communicationsProfessional feesand outside 3,589 4,388 3,394 3,403 3,897 servicesEquipment 5,177 5,395 5,073 4,779 4,642 Office supplies 1,499 1,517 1,530 1,455 1,636 and postageFDIC expense 808 739 645 993 311 Advertising 451 827 530 322 609 Amortization of 812 822 856 883 834 intangible assetsLoan collectionand other real 590 930 620 728 1,017 estate owned, netOther 2,757 10,133 3,857 3,916 6,957 Total noninterest $ 67,888 $ 75,204 $ 66,308 $ 65,340 $ 70,881 expenseIncome beforeincome tax $ 51,001 $ 43,626 $ 46,101 $ 31,277 $ 12,083 expenseIncome tax 11,155 9,432 10,988 6,564 1,715 expenseNet income $ 39,846 $ 34,194 $ 35,113 $ 24,713 $ 10,368 Earnings Per ShareBasic $ 0.91 $ 0.78 $ 0.80 $ 0.57 $ 0.24 Diluted $ 0.91 $ 0.78 $ 0.80 $ 0.56 $ 0.23

NBT Bancorp Inc. and Subsidiaries Average Quarterly Balance Sheets (unaudited, dollars in thousands) Average Yield Average Yield Average Yield / Average Yield / Average Yield / Balance / Balance / Balance Rates Balance Rates Balance Rates Rates Rates Q1 - 2021 Q4 - 2020 Q3 - 2020 Q2 - 2020 Q1 - 2020 Assets Short-terminterest $ 587,358 0.09 % $ 552,529 0.11 % $ 477,946 0.11 % $ 380,260 0.10 % $ 74,695 1.28 % bearingaccountsSecuritiesavailable for 1,346,380 1.67 % 1,230,411 1.77 % 1,137,604 1.96 % 985,561 2.29 % 962,527 2.40 % sale^1 4Securitiesheld to 607,407 2.43 % 640,422 2.36 % 621,812 2.56 % 613,899 2.75 % 622,398 2.81 % maturity^1 4Investment inFRB and FHLB 25,606 2.45 % 28,275 5.94 % 29,720 7.08 % 36,604 6.09 % 39,784 5.97 % BanksLoans^1 5 7,574,337 4.02 % 7,533,953 4.06 % 7,559,218 3.95 % 7,589,032 4.10 % 7,163,114 4.42 % Totalinterest $ 10,141,088 3.38 % $ 9,985,590 3.46 % $ 9,826,300 3.45 % $ 9,605,356 3.68 % $ 8,862,518 4.07 % earningassetsOther assets 960,994 954,123 967,194 961,807 885,570 Total assets $ 11,102,082 $ 10,939,713 $ 10,793,494 $ 10,567,163 $ 9,748,088 Liabilities and stockholders' equityMoney marketdeposit $ 2,484,120 0.23 % $ 2,455,510 0.27 % $ 2,364,606 0.28 % $ 2,360,407 0.29 % $ 2,101,306 1.00 % accountsNOW deposit 1,358,955 0.05 % 1,315,370 0.05 % 1,207,064 0.05 % 1,167,486 0.04 % 1,086,205 0.10 % accountsSavings 1,547,983 0.05 % 1,465,562 0.05 % 1,447,021 0.05 % 1,383,495 0.05 % 1,276,285 0.06 % depositsTime deposits 615,343 0.93 % 645,288 1.15 % 684,708 1.31 % 760,803 1.48 % 842,989 1.62 % Totalinterest $ 6,006,401 0.21 % $ 5,881,730 0.26 % $ 5,703,399 0.30 % $ 5,672,191 0.34 % $ 5,306,785 0.69 % bearingdepositsShort-term 115,182 0.25 % 175,597 0.44 % 277,890 0.64 % 427,004 0.92 % 533,516 1.35 % borrowingsLong-term 19,913 2.53 % 59,488 2.47 % 64,137 2.47 % 64,165 2.46 % 64,194 2.46 % debtSubordinated 98,095 5.62 % 97,984 5.44 % 97,934 5.59 % 8,633 5.96 % - - debt, netJuniorsubordinated 101,196 2.12 % 101,196 2.14 % 101,196 2.22 % 101,196 2.76 % 101,196 3.68 % debtTotalinterest $ 6,340,787 0.34 % $ 6,315,995 0.40 % $ 6,244,556 0.45 % $ 6,273,189 0.45 % $ 6,005,691 0.82 % bearingliabilitiesDemand 3,319,024 3,178,410 3,111,617 2,887,545 2,398,307 depositsOther 250,991 271,206 282,265 271,635 214,495 liabilitiesStockholders' 1,191,280 1,174,102 1,155,056 1,134,794 1,129,595 equityTotalliabilitiesand $ 11,102,082 $ 10,939,713 $ 10,793,494 $ 10,567,163 $ 9,748,088 stockholders'equity Interest rate 3.04 % 3.06 % 3.00 % 3.23 % 3.25 % spreadNet interestmargin (FTE)^ 3.17 % 3.20 % 3.17 % 3.38 % 3.52 % 1

NBT Bancorp Inc. and Subsidiaries Consolidated Loan Balances (unaudited, dollars in thousands) The following table presents loans by line of business, paycheck protectionprogram loans includes $14.2 million, $6.9 million, $11.3 million and $14.6 million in unamortized fees as of March 31, 2021 December 31, 2020 September30, 2020 and June 30, 2020, respectively.

2021 2020 1st Q 4th Q 3rd Q 2nd Q 1st Q Commercial $ 1,271,319 $ 1,267,679 $ 1,297,408 $ 1,318,806 $ 1,338,609 Commercial 2,437,811 2,380,358 2,281,843 2,256,580 2,242,139 real estatePaycheckprotection 536,494 430,810 514,558 510,097 - programResidentialreal estate 1,478,216 1,466,662 1,448,530 1,460,058 1,446,676 mortgagesIndirect auto 913,083 931,286 989,369 1,091,889 1,184,888 Specialty 577,509 579,644 566,973 515,618 539,378 lendingHome equity 369,633 387,974 404,346 415,528 431,536 Other consumer 49,394 54,472 57,616 59,415 64,157 Total $ 7,633,459 $ 7,498,885 $ 7,560,643 $ 7,627,991 $ 7,247,383 loans The following table provide loans as a percentage of total loans in industries vulnerable to the COVID-19 pandemic as of March 31, 2021 excluding PPP loans: Industry % of Total LoansAccommodations 2.4 % Healthcareservices and 2.2 % practicesRestaurantsand 1.8 % entertainmentRetailers 1.7 % Automotive 1.4 % Total 9.5 % Allowance for Loan Losses as a Percentage of Loans by Segment: 2020 2021 1st Q 2nd Q 3rd Q 4th Q 1st Q Commercial & 1.43 % 1.25 % 1.34 % 1.34 % 1.20 % industrialCommercial 1.10 % 1.56 % 1.57 % 1.49 % 1.48 % real estatePaycheckprotection 0.00 % 0.01 % 0.01 % 0.01 % 0.01 % programResidential 0.99 % 1.13 % 1.21 % 1.07 % 1.03 % real estateAuto 1.08 % 0.99 % 0.92 % 0.93 % 0.78 % Other consumer 4.00 % 5.01 % 4.66 % 4.55 % 4.34 % Total 1.38 % 1.49 % 1.51 % 1.47 % 1.38 % Totalexcluding PPP 1.38 % 1.59 % 1.62 % 1.56 % 1.48 % loans

^1 The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release: Non-GAAP measures (unaudited, dollars in thousands) Pre-provision net revenue 2021 2020 ("PPNR") 1st Q 4th Q 3rd Q 2nd Q 1st Q Income before income tax $ 51,001 $ 43,626 $ 46,101 $ 31,277 $ 12,083 expense FTE 302 318 325 329 329 adjustment Provision for (2,796 ) (607 ) 3,261 18,840 29,640 loan losses Net securities (467 ) (160 ) (84 ) (180 ) 812 (gains) losses Nonrecurring - 4,100 - 650 - expense Unfunded loan commitments (500 ) 900 - (200 ) 2,000 reserve PPNR $ 47,540 $ 48,177 $ 49,603 $ 50,716 $ 44,864 Average $ 11,102,082 $ 10,939,713 $ 10,793,494 $ 10,567,163 $ 9,748,088 Assets Return on Average 1.46 % 1.24 % 1.29 % 0.94 % 0.43 % Assets^3 PPNR Return on Average 1.74 % 1.75 % 1.83 % 1.93 % 1.85 % Assets^3 PPNR is a Non-GAAP financial measure that management believes is useful in evaluating the underlying operating results of the Company excluding the volatility in loan loss provision due to CECL adoption and the impact of the COVID-19 pandemic, net securities gains (losses) and non-recurring income and/ or expense.

FTE 2021 2020 Adjustment 1st Q 4th Q 3rd Q 2nd Q 1st Q Net interest $ 79,055 $ 80,108 $ 77,943 $ 80,446 $ 77,181 income Add: FTE 302 318 325 329 329 adjustment Net interest $ 79,357 $ 80,426 $ 78,268 $ 80,775 $ 77,510 income (FTE) Average earning $ 10,141,088 $ 9,985,590 $ 9,826,300 $ 9,605,356 $ 8,862,518 assets Net interest margin (FTE)^ 3.17 % 3.20 % 3.17 % 3.38 % 3.52 % 3 Interest income for tax-exempt securities and loans have been adjusted to a FTE basis using the statutory Federal income tax rate of 21%.

^1 The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release: Non-GAAP measures (unaudited, dollars in thousands) Tangible equity to 2021 2020 tangible assets 1st Q 4th Q 3rd Q 2nd Q 1st Q Total equity $ 1,190,981 $ 1,187,618 $ 1,166,111 $ 1,142,652 $ 1,112,179 Intangible 291,464 292,276 293,098 293,954 285,955 assets Total assets $ 11,537,253 $ 10,932,906 $ 10,850,212 $ 10,847,184 $ 9,953,543 Tangible equity to 8.00 % 8.41 % 8.27 % 8.04 % 8.55 % tangible assets Return on average 2021 2020 tangible common equity 1st Q 4th Q 3rd Q 2nd Q 1st Q Net income $ 39,846 $ 34,194 $ 35,113 $ 24,713 $ 10,368 Amortization of intangible 609 617 642 662 626 assets (net of tax) Net income, excluding $ 40,455 $ 34,811 $ 35,755 $ 25,375 $ 10,994 intangibles amortization Average stockholders' $ 1,191,280 $ 1,174,102 $ 1,155,056 $ 1,134,794 $ 1,129,595 equity Less: average goodwill and 291,921 292,725 293,572 294,423 286,400 other intangibles Average tangible $ 899,359 $ 881,377 $ 861,484 $ 840,371 $ 843,195 common equity Return on average tangible 18.24 % 15.71 % 16.51 % 12.14 % 5.24 % common equity ^3 ^2 Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding.^3 Annualized. ^4 Securities are shown at average amortized cost.^5 For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.