EX-99.1 2 brhc10030076_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE ATTENTION: FINANCIAL AND BUSINESS EDITORS

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

NBT BANCORP INC. ANNOUNCES THIRD QUARTER NET INCOME OF $37.4 MILLION ($0.86 PER DILUTED COMMON SHARE); APPROVES DIVIDEND

NORWICH, NY (October 26, 2021) – NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and nine months ended September 30, 2021.

Net income for the three months ended September 30, 2021 was $37.4 million, or $0.86 per diluted common share. Net income increased $2.3 million from the third quarter of 2020, primarily due to changes in the estimated impact of the COVID-19 pandemic on expected credit losses. The third quarter 2020 provision for loan losses was $3.3 million compared to the third quarter 2021 provision release of $3.3 million. Net income decreased $2.9 million from the previous quarter primarily due to a lower net benefit from provision for loan losses and slightly higher noninterest expense, partly offset by higher noninterest income.

Pre-provision net revenue (“PPNR”)¹ for the third quarter of 2021 was $47.4 million compared to $49.0 million in the previous quarter and $49.6 million in the third quarter of 2020. Income from Paycheck Protection Program (“PPP”) loans decreased $1.9 million and $1.8 million from the previous quarter and the third quarter of 2020, respectively.

CEO Comments

“We continue to experience momentum across the markets we serve. Our team is focused on our customers and successful execution of our key strategies,” said NBT President and CEO John H. Watt, Jr. “Across our New England footprint, we are advancing our growth strategy by leveraging the market disruption occurring in that region. Our balance sheet is strong and it continues to provide us optionality to deploy capital in a strategic manner, and we are actively exploring opportunities.”

Third Quarter Financial Highlights

Net Income	■ Net income of $37.4 million ■ Diluted earnings per share of $0.86
Net Interest Income / NIM	■ Net interest income on a fully taxable equivalent basis was $78.0 million¹ ■ Net interest margin (“NIM”) on a fully taxable equivalent basis was 2.88%¹, down 12 basis points (“bps”) from the prior quarter ■ Total cost of deposits of 0.10%
PPNR	■ PPNR¹ was $47.4 million compared to $49.0 million in the second quarter of 2021 and $49.6 million in the third quarter of 2020
Loans and Credit Quality	■ Period end total loans were $7.6 billion, up 1%, annualized, from December 31, 2020 ■ Excluding $276 million and $431 million of PPP loans at September 30, 2021 and December 31, 2020, respectively, period end loans increased $222 million or 3% from December 31, 2020 ■ Allowance for loan losses to total loans of 1.23% (1.28% excluding PPP loans and related allowance), down 8 bps from the second quarter 2021 (down 10 bps excluding PPP loans and related allowance) ■ Net charge-offs to average loans was 0.11%, annualized (0.12% excluding PPP loans) ■ Nonperforming loans to total loans was 0.51% (0.53% excluding PPP loans), down from 0.57% in the prior quarter
Capital	■ Tangible book value per share² grew 2% for the quarter and 10% from prior year to $21.95 at September 30, 2021 ■ Tangible equity to assets of 8.13%¹ ■ CET1 ratio of 12.20%; Leverage ratio of 9.47%

Loans

■

Period end total loans were $7.6 billion at September 30, 2021 and $7.5 billion at December 31, 2020.

■

Excluding PPP loans, period end loans increased $222 million from December 31, 2020. Commercial and industrial loans increased $15.0 million to $1.5 billion; commercial real estate loans increased $123.9 million to $2.3 billion; and total consumer loans increased $83.3 million to $3.5 billion.

■

Total PPP loans as of September 30, 2021 were $276 million (net of unamortized fees). The following activity occurred during the third quarter of 2021:

$84.7 million of loans forgiven

$2.9 million of interest and fees recognized into interest income compared to $4.7 million for the second quarter of 2021

■

Commercial line of credit utilization rate was 21% at September 30, 2021 compared to 22% at June 30, 2021 and compared to 25% at September 30, 2020.

Deposits

■

Average total deposits in the third quarter of 2021 were $10.0 billion, compared to $9.9 billion in the second quarter of 2021, driven by increases in non-interest bearing demand deposit accounts and savings deposit accounts, partly offset by the decrease in money market deposit accounts and time deposits accounts.

■

Loan to deposit ratio was 74.2% at September 30, 2021, compared to 82.6% at December 31, 2020.

Net Interest Income and Net Interest Margin

■

Net interest income for the third quarter of 2021 was $77.7 million, which was down $1.5 million or 1.9% from the second quarter of 2021 and down $0.3 million or 0.3% from the third quarter of 2020.

■

The NIM on a fully taxable equivalent (“FTE”) basis for the third quarter of 2021 was 2.88%, down 12 bps from the second quarter of 2021 and down 29 bps from the third quarter of 2020. The net impact of income from PPP loans and excess liquidity negatively impacted the NIM by 26 bps in the third quarter of 2021 compared to a negative 24 bps impact in the second quarter 2021. Excluding the impact of PPP lending and excess liquidity from each quarter, the NIM decreased 10 bps from the prior quarter primarily due to an 11 bp decline in earning asset yields partially offset by a 1 bp decline in the cost of interest bearing liabilities.

■

Earning asset yields for the three months ended September 30, 2021 were down 13 bps from the prior quarter and down 40 bps from the same quarter in the prior year. Earning assets grew $96.4 million or 0.9% from the prior quarter and grew $901.2 million or 9.2% from the same quarter in the prior year. The following are highlights comparing the third quarter 2021 to the prior quarter:

Excess liquidity resulted in a $40.0 million increase in the average balances of short-term interest bearing accounts with a yield of 0.16%.

The average balance of investment securities increased $112.8 million while yields declined 11 bps.

Loan yields decreased 12 bps to 3.84% for the quarter. Excluding PPP loans, yields decreased 10 bps from the prior quarter.

■

Total cost of deposits was 0.10% for the third quarter of 2021, down 2 bps from the prior quarter and down 9 bps from the same period in the prior year.

■

The cost of interest-bearing liabilities for the three months ended September 30, 2021 was 0.27%, down 2 bps compared to the prior quarter of 0.29% and down 18 bps from the third quarter of 2020 of 0.45%.

Credit Quality and Allowance for Credit Losses

■

Net charge-offs to total average loans of 11 bps (12 bps excluding PPP loans) compared to 7 bps (7 bps excluding PPP loans) in the prior quarter and 12 bps (13 bps excluding PPP loans) in the third quarter of 2020. 36% of the quarter’s net charge-offs were reserved for previously.

■

Nonperforming assets to total assets was 0.33% (0.34% excluding PPP loans) compared to 0.38% (0.39% excluding PPP loans) at June 30, 2021 and 0.37% (0.39% excluding PPP loans) at September 30, 2020.

■

Provision expense for the three months ended September 30, 2021 was a net benefit of $3.3 million with net charge-offs of $2.2 million. The net provision benefit was $1.9 million less than the second quarter of 2021 compared to provision expense of $3.3 million in the third quarter of 2020. The increase in net provision benefit from the third quarter of 2020 was primarily due to the impacts of an improved economic forecast on the required level of allowance for loan losses.

■

The allowance for loan losses was $93.0 million or 1.23% (1.28% excluding PPP loans and related allowance) of total loans compared to 1.31% (1.38% excluding PPP loans and related allowance) at June 30, 2021 and 1.51% (1.62% excluding PPP loans and related allowance) at September 30, 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.

■

The reserve for unfunded loan commitments decreased to $5.3 million at September 30, 2021 compared to the prior quarter at $5.8 million.

Noninterest Income

■

Total noninterest income, excluding securities gains (losses), was $40.4 million for the three months ended September 30, 2021, up $1.3 million from the prior quarter and up $2.8 million from the prior year quarter.

■

Service charges on deposit accounts were higher than the prior quarter and the third quarter of 2020, but still significantly below pre-pandemic levels.

■

ATM and debit card fees were comparable to the prior quarter and higher than the third quarter of 2020 due to increased volume and higher per transaction rates.

■

Retirement plan administration fees were higher than the prior quarter and higher than the third quarter of 2020 driven by market performance and organic growth in relationships.

■

Wealth management fees were higher than both the prior quarter and third quarter of 2020 driven by market performance and additional new customers.

■

Other noninterest income decreased from the prior quarter due to lower swap fee income and decreased from the third quarter of 2020 driven by lower mortgage banking income.

Noninterest Expense

■

Total noninterest expense for the third quarter of 2021 was up 2.0% from the previous quarter and up 9.9% from the third quarter of 2020.

■

Salaries and benefits increased from the prior quarter and the third quarter of 2020 due to one additional day of payroll in the third quarter, increased medical expenses and higher incentive compensation accruals.

■

Data processing and communications decreased from the prior quarter driven by lower expenses related to processing of PPP loans and was comparable to the third quarter of 2020.

■

Equipment expense was comparable to the prior quarter and higher than the third quarter of 2020 due to higher technology costs associated with several digital upgrades.

■

Other expenses increased from the prior quarter and the third quarter of 2020 and included $2.3 million in non-recurring costs, primarily from estimated litigation settlement costs related to a pending lawsuit regarding certain of the Company’s deposit products and related disclosures. The Company does not anticipate further material accruals related to this legal matter.

Income Taxes

■

The effective tax rate was 22.8% for the third quarter of 2021 compared to 22.9% for the second quarter of 2021 and 23.8% for the third quarter of 2020. The lower effective tax rate compared to the third quarter of 2020 was due to the change in the level of taxable income to bring the nine months ended September 30, 2020 estimated effective tax rate to 21.75%.

Capital

■

Capital ratios remain strong with tangible common equity to tangible assets¹ at 8.13%. Tangible book value per share² grew 2% from the prior quarter and 10% from the prior year quarter to $21.95.

■

September 30, 2021 CET1 capital ratio of 12.20%, leverage ratio of 9.47% and total risk-based capital ratio of 15.74%.

Dividend and Stock Repurchase

■

The Board of Directors approved a fourth-quarter cash dividend of $0.28 per share at a meeting held yesterday, an increase of 3.7% from the amount paid in the fourth quarter of 2020. The dividend will be paid on December 15, 2021 to shareholders of record as of December 1, 2021.

■

The Company purchased 119,342 shares of common stock during the third quarter of 2021 at a weighted average price of $35.30 excluding commissions. As of September 30, 2021, there were 1,600,000 shares available for repurchase under this plan, which expires on December 31, 2021.

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Wednesday, October 27, 2021, to review third quarter 2021 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 $12.0 billion at September 30, 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 140 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a full-service retirement plan administration and 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 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 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 novel coronavirus, which causes COVID-19 global pandemic; and (21) the Company’s 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 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, the speed and effectiveness of vaccine and treatment developments and deployment, and its impact 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, 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 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.

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

	2021									2020
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Profitability:
Diluted earnings per share	$	0.86		$	0.92		$	0.91		$	0.78		$	0.80
Weighted average diluted common shares outstanding		43,631,497			43,792,940			43,889,889			43,973,971			43,941,953
Return on average assets³		1.26	%		1.39	%		1.46	%		1.24	%		1.29	%
Return on average equity³		12.04	%		13.42	%		13.57	%		11.59	%		12.09	%
Return on average tangible common equity^{1 3}		15.97	%		17.93	%		18.24	%		15.71	%		16.51	%
Net interest margin^{1 3}		2.88	%		3.00	%		3.17	%		3.20	%		3.17	%

	9 Months Ended September 30,
		2021			2020
Profitability:
Diluted earnings per share	$	2.69		$	1.60
Weighted average diluted common shares outstanding		43,768,647			43,996,637
Return on average assets³		1.37	%		0.90	%
Return on average equity³		13.00	%		8.23	%
Return on average tangible common equity^{1 3}		17.35	%		11.36	%
Net interest margin¹ ³		3.01	%		3.35	%

	2021									2020
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Balance sheet data:
Short-term interest bearing accounts	$	1,131,074		$	883,758		$	972,195		$	512,686		$	450,291
Securities available for sale		1,576,030			1,534,733			1,387,028			1,348,698			1,197,925
Securities held to maturity		683,103			622,351			592,999			616,560			663,088
Net loans		7,473,442			7,419,127			7,528,459			7,388,885			7,446,143
Total assets		11,994,411			11,574,947			11,537,253			10,932,906			10,850,212
Total deposits		10,195,178			9,785,257			9,815,930			9,081,692			8,958,183
Total borrowings		313,311			304,110			308,766			406,731			446,737
Total liabilities		10,752,954			10,349,891			10,346,272			9,745,288			9,684,101
Stockholders’ equity		1,241,457			1,225,056			1,190,981			1,187,618			1,166,111

Capital:
Equity to assets		10.35	%		10.58	%		10.32	%		10.86	%		10.75	%
Tangible equity ratio¹		8.13	%		8.28	%		8.00	%		8.41	%		8.27	%
Book value per share	$	28.65		$	28.19		$	27.43		$	27.22		$	26.74
Tangible book value per share²	$	21.95		$	21.50		$	20.71		$	20.52		$	20.02
Leverage ratio		9.47	%		9.40	%		9.60	%		9.56	%		9.48	%
Common equity tier 1 capital ratio		12.20	%		12.12	%		12.13	%		11.84	%		11.63	%
Tier 1 capital ratio		13.39	%		13.34	%		13.38	%		13.09	%		12.88	%
Total risk-based capital ratio		15.74	%		15.78	%		15.92	%		15.62	%		15.43	%
Common stock price (end of period)	$	36.12		$	35.97		$	39.90		$	32.10		$	26.82

NBT Bancorp Inc. and Subsidiaries
Asset Quality and Consolidated Loan Balances
(unaudited, dollars in thousands)

	2021									2020
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Asset quality:
Nonaccrual loans	$	35,737		$	40,550		$	43,399		$	44,647		$	35,896
90 days past due and still accruing		2,940			2,575			2,155			3,149			2,579
Total nonperforming loans		38,677			43,125			45,554			47,796			38,475
Other real estate owned		859			798			1,318			1,458			1,605
Total nonperforming assets		39,536			43,923			46,872			49,254			40,080
Allowance for loan losses		93,000			98,500			105,000			110,000			114,500

Asset quality ratios (total):
Allowance for loan losses to total loans		1.23	%		1.31	%		1.38	%		1.47	%		1.51	%
Total nonperforming loans to total loans		0.51	%		0.57	%		0.60	%		0.64	%		0.51	%
Total nonperforming assets to total assets		0.33	%		0.38	%		0.41	%		0.45	%		0.37	%
Allowance for loan losses to total nonperforming loans		240.45	%		228.41	%		230.50	%		230.14	%		297.60	%
Past due loans to total loans⁴		0.46	%		0.26	%		0.22	%		0.37	%		0.26	%
Net charge-offs to average loans³		0.11	%		0.07	%		0.12	%		0.21	%		0.12	%

Asset quality ratios (excluding paycheck protection program):
Allowance for loan losses to total loans		1.28	%		1.38	%		1.48	%		1.56	%		1.62	%
Total nonperforming loans to total loans		0.53	%		0.60	%		0.64	%		0.68	%		0.55	%
Total nonperforming assets to total assets		0.34	%		0.39	%		0.43	%		0.47	%		0.39	%
Allowance for loan losses to total nonperforming loans		240.42	%		228.36	%		230.44	%		230.10	%		297.53	%
Past due loans to total loans⁴		0.48	%		0.27	%		0.23	%		0.39	%		0.28	%
Net charge-offs to average loans³		0.12	%		0.07	%		0.13	%		0.22	%		0.13	%

		2021									2020
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Allowance for loan losses as a percentage of loans by segment:
Commercial & industrial		0.83	%		1.11	%		1.20	%		1.34	%		1.34	%
Commercial real estate		0.93	%		1.26	%		1.48	%		1.49	%		1.57	%
Paycheck protection program		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Residential real estate		0.93	%		0.98	%		1.03	%		1.07	%		1.21	%
Auto		0.78	%		0.76	%		0.78	%		0.93	%		0.92	%
Other consumer		4.57	%		4.27	%		4.34	%		4.55	%		4.66	%
Total		1.23	%		1.31	%		1.38	%		1.47	%		1.51	%
Total excluding PPP loans		1.28	%		1.38	%		1.48	%		1.56	%		1.62	%

		2021									2020
Loans by line of business:	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Commercial	$	1,466,597		$	1,479,258		$	1,466,841		$	1,451,560		$	1,458,053
Commercial real estate		2,320,341			2,265,754			2,242,289			2,196,477			2,121,198
Paycheck protection program		276,195			359,738			536,494			430,810			514,558
Residential real estate mortgages		1,549,684			1,512,354			1,478,216			1,466,662			1,448,530
Indirect auto		873,860			899,324			913,083			931,286			989,369
Specialty lending		692,919			602,585			577,509			579,644			566,973
Home equity		339,316			351,469			369,633			387,974			404,346
Other consumer		47,530			47,145			49,394			54,472			57,616
Total loans	$	7,566,442		$	7,517,627		$	7,633,459		$	7,498,885		$	7,560,643

PPP unamortized fees (dollars in millions)	$	10.5		$	12.6		$	14.2		$	6.9		$	11.3

NBT Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited, dollars in thousands)

	September 30,		December 31,
Assets	2021		2020
Cash and due from banks	$	215,032	$	159,995
Short-term interest bearing accounts		1,131,074		512,686
Equity securities, at fair value		33,013		30,737
Securities available for sale, at fair value		1,576,030		1,348,698
Securities held to maturity (fair value $689,129 and $636,827, respectively)		683,103		616,560
Federal Reserve and Federal Home Loan Bank stock		25,161		27,353
Loans held for sale		1,024		1,119
Loans		7,566,442		7,498,885
Less allowance for loan losses		93,000		110,000
Net loans	$	7,473,442	$	7,388,885
Premises and equipment, net		71,928		74,206
Goodwill		280,541		280,541
Intangible assets, net		9,578		11,735
Bank owned life insurance		227,451		186,434
Other assets		267,034		293,957
Total assets	$	11,994,411	$	10,932,906

Liabilities and stockholders’ equity
Demand (noninterest bearing)	$	3,748,162	$	3,241,123
Savings, NOW and money market		5,894,743		5,207,090
Time		552,273		633,479
Total deposits	$	10,195,178	$	9,081,692
Short-term borrowings		99,715		168,386
Long-term debt		14,020		39,097
Subordinated debt, net		98,380		98,052
Junior subordinated debt		101,196		101,196
Other liabilities		244,465		256,865
Total liabilities	$	10,752,954	$	9,745,288

Total stockholders’ equity	$	1,241,457	$	1,187,618

Total liabilities and stockholders’ equity	$	11,994,411	$	10,932,906

NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited, dollars in thousands except per share data)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2021			2020		2021			2020
Interest, fee and dividend income
Interest and fees on loans	$	72,817		$	74,998	$	222,705		$	230,996
Securities available for sale		5,898			5,603		17,204			16,956
Securities held to maturity		2,976			3,734		9,454			11,751
Other		524			659		1,206			2,138
Total interest, fee and dividend income	$	82,215		$	84,994	$	250,569		$	261,841
Interest expense
Deposits	$	2,548		$	4,267	$	8,582		$	18,183
Short-term borrowings		28			446		130			3,215
Long-term debt		89			398		301			1,184
Subordinated debt		1,359			1,375		4,077			1,503
Junior subordinated debt		517			565		1,572			2,186
Total interest expense	$	4,541		$	7,051	$	14,662		$	26,271
Net interest income	$	77,674		$	77,943	$	235,907		$	235,570
Provision for loan losses		(3,342	)		3,261		(11,354	)		51,741
Net interest income after provision for loan losses	$	81,016		$	74,682	$	247,261		$	183,829
Noninterest income
Service charges on deposit accounts	$	3,489		$	3,087	$	9,544		$	9,613
ATM and debit card fees		8,172			7,194		23,343			19,184
Retirement plan administration fees		10,495			9,685		30,372			26,840
Wealth management fees		8,783			7,695		25,099			21,791
Insurance services		3,720			3,742		10,689			11,303
Bank owned life insurance income		1,548			1,255		4,588			4,010
Net securities (losses) gains		(100	)		84		568			(548
Other		4,222			4,985		12,480			15,968
Total noninterest income	$	40,329		$	37,727	$	116,683		$	108,161
Noninterest expense
Salaries and employee benefits	$	44,190		$	40,451	$	128,462		$	120,918
Occupancy		5,117			5,294		16,281			16,354
Data processing and communications		3,881			4,058		13,039			12,370
Professional fees and outside services		3,784			3,394		11,403			10,694
Equipment		5,577			5,073		16,247			14,494
Office supplies and postage		1,364			1,530		4,478			4,621
FDIC expense		772			645		2,243			1,949
Advertising		583			530		1,502			1,461
Amortization of intangible assets		663			856		2,157			2,573
Loan collection and other real estate owned, net		706			620		1,959			2,365
Other		6,232			3,857		14,405			14,730
Total noninterest expense	$	72,869		$	66,308	$	212,176		$	202,529
Income before income tax expense	$	48,476		$	46,101	$	151,768		$	89,461
Income tax expense		11,043			10,988		34,193			19,267
Net income	$	37,433		$	35,113	$	117,575		$	70,194
Earnings Per Share
Basic	$	0.86		$	0.80	$	2.71		$	1.61
Diluted	$	0.86		$	0.80	$	2.69		$	1.60

NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements of Income
(unaudited, dollars in thousands except per share data)

	2021									2020
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Interest, fee and dividend income
Interest and fees on loans	$	72,817		$	74,795		$	75,093		$	76,863		$	74,998
Securities available for sale		5,898			5,762			5,544			5,478			5,603
Securities held to maturity		2,976			3,096			3,382			3,532			3,734
Other		524			391			291			568			659
Total interest, fee and dividend income	$	82,215		$	84,044		$	84,310		$	86,441		$	84,994
Interest expense
Deposits	$	2,548		$	2,862		$	3,172		$	3,887		$	4,267
Short-term borrowings		28			32			70			193			446
Long-term debt		89			88			124			369			398
Subordinated debt		1,359			1,359			1,359			1,339			1,375
Junior subordinated debt		517			525			530			545			565
Total interest expense	$	4,541		$	4,866		$	5,255		$	6,333		$	7,051
Net interest income	$	77,674		$	79,178		$	79,055		$	80,108		$	77,943
Provision for loan losses		(3,342	)		(5,216	)		(2,796	)		(607	)		3,261
Net interest income after provision for loan losses	$	81,016		$	84,394		$	81,851		$	80,715		$	74,682
Noninterest income
Service charges on deposit accounts	$	3,489		$	3,028		$	3,027		$	3,588		$	3,087
ATM and debit card fees		8,172			8,309			6,862			6,776			7,194
Retirement plan administration fees		10,495			9,779			10,098			9,011			9,685
Wealth management fees		8,783			8,406			7,910			7,456			7,695
Insurance services		3,720			3,508			3,461			3,454			3,742
Bank owned life insurance income		1,548			1,659			1,381			1,733			1,255
Net securities (losses) gains		(100	)		201			467			160			84
Other		4,222			4,426			3,832			5,937			4,985
Total noninterest income	$	40,329		$	39,316		$	37,038		$	38,115		$	37,727
Noninterest expense
Salaries and employee benefits	$	44,190		$	42,671		$	41,601		$	41,016		$	40,451
Occupancy		5,117			5,291			5,873			5,280			5,294
Data processing and communications		3,881			4,427			4,731			4,157			4,058
Professional fees and outside services		3,784			4,030			3,589			4,388			3,394
Equipment		5,577			5,493			5,177			5,395			5,073
Office supplies and postage		1,364			1,615			1,499			1,517			1,530
FDIC expense		772			663			808			739			645
Advertising		583			468			451			827			530
Amortization of intangible assets		663			682			812			822			856
Loan collection and other real estate owned, net		706			663			590			930			620
Other		6,232			5,416			2,757			10,133			3,857
Total noninterest expense	$	72,869		$	71,419		$	67,888		$	75,204		$	66,308
Income before income tax expense	$	48,476		$	52,291		$	51,001		$	43,626		$	46,101
Income tax expense		11,043			11,995			11,155			9,432			10,988
Net income	$	37,433		$	40,296		$	39,846		$	34,194		$	35,113
Earnings Per Share
Basic	$	0.86		$	0.93		$	0.91		$	0.78		$	0.80
Diluted	$	0.86		$	0.92		$	0.91		$	0.78		$	0.80

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
	Q3 - 2021					Q2 - 2021					Q1 - 2021					Q4 - 2020					Q3 - 2020
Assets
Short-term interest bearing accounts	$	1,014,120		0.16	%	$	974,034		0.09	%	$	587,358		0.09	%	$	552,529		0.11	%	$	477,946		0.11	%
Securities available for sale^{1 5}		1,513,071		1.55	%		1,453,068		1.59	%		1,346,380		1.67	%		1,230,411		1.77	%		1,137,604		1.96	%
Securities held to maturity^{1 5}		657,314		1.95	%		604,582		2.23	%		607,407		2.43	%		640,422		2.36	%		621,812		2.56	%
Investment in FRB and FHLB Banks		25,154		1.91	%		25,115		2.67	%		25,606		2.45	%		28,275		5.94	%		29,720		7.08	%
Loans^{1 6}		7,517,839		3.84	%		7,574,272		3.96	%		7,574,337		4.02	%		7,533,953		4.06	%		7,559,218		3.95	%
Total interest earning assets	$	10,727,498		3.05	%	$	10,631,071		3.18	%	$	10,141,088		3.38	%	$	9,985,590		3.46	%	$	9,826,300		3.45	%
Other assets		1,019,797					971,681					960,994					954,123					967,194
Total assets	$	11,747,295				$	11,602,752				$	11,102,082				$	10,939,713				$	10,793,494

Liabilities and stockholders’ equity
Money market deposit accounts	$	2,580,570		0.19	%	$	2,605,767		0.21	%	$	2,484,120		0.23	%	$	2,455,510		0.27	%	$	2,364,606		0.28	%
NOW deposit accounts		1,442,678		0.05	%		1,454,751		0.05	%		1,358,955		0.05	%		1,315,370		0.05	%		1,207,064		0.05	%
Savings deposits		1,691,539		0.05	%		1,660,722		0.05	%		1,547,983		0.05	%		1,465,562		0.05	%		1,447,021		0.05	%
Time deposits		565,216		0.62	%		591,147		0.75	%		615,343		0.93	%		645,288		1.15	%		684,708		1.31	%
Total interest bearing deposits	$	6,280,003		0.16	%	$	6,312,387		0.18	%	$	6,006,401		0.21	%	$	5,881,730		0.26	%	$	5,703,399		0.30	%
Short-term borrowings		99,703		0.11	%		95,226		0.13	%		115,182		0.25	%		175,597		0.44	%		277,890		0.64	%
Long-term debt		14,029		2.52	%		14,053		2.51	%		19,913		2.53	%		59,488		2.47	%		64,137		2.47	%
Subordinated debt, net		98,311		5.48	%		98,204		5.55	%		98,095		5.62	%		97,984		5.44	%		97,934		5.59	%
Junior subordinated debt		101,196		2.03	%		101,196		2.08	%		101,196		2.12	%		101,196		2.14	%		101,196		2.22	%
Total interest bearing liabilities	$	6,593,242		0.27	%	$	6,621,066		0.29	%	$	6,340,787		0.34	%	$	6,315,995		0.40	%	$	6,244,556		0.45	%
Demand deposits		3,676,883					3,542,176					3,319,024					3,178,410					3,111,617
Other liabilities		244,125					235,536					250,991					271,206					282,265
Stockholders’ equity		1,233,045					1,203,974					1,191,280					1,174,102					1,155,056
Total liabilities and stockholders’ equity	$	11,747,295				$	11,602,752				$	11,102,082				$	10,939,713				$	10,793,494

Interest rate spread				2.78	%				2.89	%				3.04	%				3.06	%				3.00	%
Net interest margin (FTE)¹				2.88	%				3.00	%				3.17	%				3.20	%				3.17	%

NBT Bancorp Inc. and Subsidiaries
Average Year-to-Date Balance Sheets
(unaudited, dollars in thousands)

	Average Balance		Interest		Yield/ Rates			Average Balance		Interest		Yield/ Rates
Nine Months Ended September 30,	2021							2020
Assets
Short-term interest bearing accounts	$	860,067	$	763		0.12	%	$	311,577	$	464		0.20	%
Securities available for sale^{1 5}		1,438,117		17,204		1.60	%		1,028,962		16,956		2.20	%
Securities held to maturity^{1 5}		623,284		10,237		2.20	%		619,379		12,562		2.71	%
Investment in FRB and FHLB Banks		25,290		443		2.34	%		35,349		1,674		6.33	%
Loans^{1 6}		7,555,276		222,821		3.94	%		7,437,566		231,168		4.15	%
Total interest earning assets	$	10,502,034	$	251,468		3.20	%	$	9,432,833	$	262,824		3.72	%
Other assets		984,372							938,296
Total assets	$	11,486,406						$	10,371,129

Liabilities and stockholders’ equity
Money market deposit accounts	$	2,557,172	$	4,022		0.21	%	$	2,275,765	$	8,646		0.51	%
NOW deposit accounts		1,419,102		531		0.05	%		1,153,780		548		0.06	%
Savings deposits		1,633,941		625		0.05	%		1,369,219		553		0.05	%
Time deposits		590,385		3,404		0.77	%		762,548		8,436		1.48	%
Total interest bearing deposits	$	6,200,600	$	8,582		0.19	%	$	5,561,312	$	18,183		0.44	%
Short-term borrowings		103,314		130		0.17	%		412,312		3,215		1.04	%
Long-term debt		15,976		301		2.52	%		64,165		1,184		2.46	%
Subordinated debt, net		98,204		4,077		5.55	%		35,750		1,503		5.62	%
Junior subordinated debt		101,196		1,572		2.08	%		101,196		2,186		2.89	%
Total interest bearing liabilities	$	6,519,290	$	14,662		0.30	%	$	6,174,735	$	26,271		0.57	%
Demand deposits		3,514,005							2,800,297
Other liabilities		243,525							256,226
Stockholders’ equity		1,209,586							1,139,871
Total liabilities and stockholders’ equity	$	11,486,406						$	10,371,129
Net interest income (FTE)¹			$	236,806						$	236,553
Interest rate spread						2.90	%						3.15	%
Net interest margin (FTE)¹						3.01	%						3.35	%
Taxable equivalent adjustment			$	899						$	983
Net interest income			$	235,907						$	235,570

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 (“PPNR”)	2021									2020
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Net income	$	37,433		$	40,296		$	39,846		$	34,194		$	35,113
Income tax expense		11,043			11,995			11,155			9,432			10,988
Provision for loan losses		(3,342	)		(5,216	)		(2,796	)		(607	)		3,261
FTE adjustment		298			299			302			318			325
Net securities losses (gains)		100			(201	)		(467	)		(160	)		(84	)
Provision for unfunded loan commitments reserve		(470	)		(80	)		(500	)		900			-
Nonrecurring expense		2,288			1,880			-			4,100			-
PPNR	$	47,350		$	48,973		$	47,540		$	48,177		$	49,603

Average Assets	$	11,747,295		$	11,602,757		$	11,102,082		$	10,939,713		$	10,793,494

Return on Average Assets³		1.26	%		1.39	%		1.46	%		1.24	%		1.29	%
PPNR Return on Average Assets³		1.60	%		1.69	%		1.74	%		1.75	%		1.83	%

	9 Months Ended September 30,
		2021			2020
Net income	$	117,575		$	70,194
Income tax expense		34,193			19,267
Provision for loan losses		(11,354	)		51,741
FTE adjustment		899			983
Net securities (gains) losses		(568	)		548
Provision for unfunded loan commitments reserve		(1,050	)		1,800
Nonrecurring expense		4,168			650
PPNR	$	143,863		$	145,183

Average Assets	$	11,486,406		$	10,371,129

Return on Average Assets³		1.37	%		0.90	%
PPNR Return on Average Assets³		1.67	%		1.87	%

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 the provision for loan losses, net securities gains (losses) and non-recurring income and/or expense.

FTE Adjustment	2021										2020
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Net interest income	$	77,674		$	79,178		$	79,055		$	80,108		$	77,943
Add: FTE adjustment		298			299			302			318			325
Net interest income (FTE)	$	77,972		$	79,477		$	79,357		$	80,426		$	78,268
Average earning assets	$	10,727,498		$	10,631,071		$	10,141,088		$	9,985,590		$	9,826,300
Net interest margin (FTE)³		2.88	%		3.00	%		3.17	%		3.20	%		3.17	%

	9 Months Ended September 30,
		2021			2020
Net interest income	$	235,907		$	235,570
Add: FTE adjustment		899			983
Net interest income (FTE)	$	236,806		$	236,553
Average earning assets	$	10,502,034		$	9,432,833
Net interest margin (FTE)³		3.01	%		3.35	%

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 tangible assets	2021									2020
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Total equity	$	1,241,457		$	1,225,056		$	1,190,981		$	1,187,618		$	1,166,111
Intangible assets		290,119			290,782			291,464			292,276			293,098
Total assets	$	11,994,411		$	11,574,947		$	11,537,253		$	10,932,906		$	10,850,212
Tangible equity to tangible assets		8.13	%		8.28	%		8.00	%		8.41	%		8.27	%

Return on average tangible common equity		2021									2020
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Net income	$	37,433		$	40,296		$	39,846		$	34,194		$	35,113
Amortization of intangible assets (net of tax)		497			512			609			617			642
Net income, excluding intangibles amortization	$	37,930		$	40,808		$	40,455		$	34,811		$	35,755

Average stockholders’ equity	$	1,233,045		$	1,203,974		$	1,191,280		$	1,174,102		$	1,155,056
Less: average goodwill and other intangibles		290,492			291,133			291,921			292,725			293,572
Average tangible common equity	$	942,553		$	912,841		$	899,359		$	881,377		$	861,484
Return on average tangible common equity³		15.97	%		17.93	%		18.24	%		15.71	%		16.51	%

	9 Months Ended September 30,
		2021			2020
Net income	$	117,575		$	70,194
Amortization of intangible assets (net of tax)		1,618			1,930
Net income, excluding intangibles amortization	$	119,193		$	72,124

Average stockholders’ equity	$	1,209,586		$	1,139,871
Less: average goodwill and other intangibles		291,177			291,472
Average tangible common equity	$	918,409		$	848,399
Return on average tangible common equity³		17.35	%		11.36	%

²Non-GAAP measure - Stockholders’ equity less goodwill and intangible assets divided by common shares outstanding.

³ Annualized.

⁴Total past due loans, defined as loans 30 days or more past due and in an accrual status.

⁵Securities are shown at average amortized cost.

⁶For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.