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 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.”

Second Quarter Financial Highlights

Net Income	■	Net income of $37.8 million
Net Income	■	Diluted earnings per share of $0.88
Net Interest Income / NIM	■	Net interest income on a fully taxable equivalent (“FTE”) basis was $87.9 million¹
	■	Net interest margin (“NIM”) on a FTE basis was 3.21%¹, up 26 basis points (“bps”) from the prior quarter, due primarily to higher yields on earning assets
	■	Total cost of deposits of 0.07%
Noninterest Income	■	Noninterest income was $42.2 million, excluding securities gains (losses) and was 32.5% of total revenue
Pre-Provision Net Revenue (“PPNR”)	■	PPNR¹ was $54.2 million compared to $50.9 million in the first quarter of 2022 and $49.0 million in the second quarter of 2021
Loans and Credit Quality	■	Period end total loans were $7.78 billion at June 30, 2022, up 9.9%, annualized, excluding impact of PPP loans
	■	Period end loans increased $363.2 million from December 31, 2021, excluding $17.3 million and $101.2 million of PPP loans at June 30, 2022 and December 31, 2021, respectively
	■	Net charge-offs to average loans was 0.04%, annualized
	■	Nonperforming loans to total loans was 0.33%, down from 0.36% in the prior quarter
	■	Allowance for loan losses to total loans of 1.20%, was up 2 bps from the first quarter 2022
Capital	■	Announced a $0.30 per share dividend for the third quarter, which was a $0.02 per share or 7.1% increase from the prior quarter
	■	Tangible book value per share² was $20.99 at June 30, 2022, lower than the second quarter of 2021 and the first quarter of 2022 due primarily to the impact of higher interest rates on available for sale investment securities and the related impact to accumulated other comprehensive income
	■	Tangible equity to assets of 7.87%¹
	■	CET1 ratio of 12.14%; Leverage ratio of 9.77%

Loans

■

Period end total loans were $7.78 billion at June 30, 2022 and $7.50 billion at December 31, 2021.

■

Excluding PPP loans, period end loans increased $363.2 million from December 31, 2021. Commercial and industrial loans increased $142.8 million to $1.30 billion; commercial real estate loans increased $15.3 million to $2.67 billion; and total consumer loans increased $205.1 million to $3.79 billion.

■

Total PPP loans as of June 30, 2022 were $17.3 million (net of unamortized fees) with 95% of the original $836 million forgiven through the second quarter of 2022. The following PPP loan activity occurred during the second quarter of 2022:

$36.7 million of loans forgiven.

$1.3 million of interest and fees recognized into interest income, compared to $2.0 million for the first quarter of 2022 and $4.7 million for the second quarter of 2021.

■

Commercial line of credit utilization rate was 23% at June 30, 2022 and March 31, 2022 and compared to 22% at June 30, 2021.

Deposits

■

Total deposits at June 30, 2022 were $10.03 billion, compared to $10.23 billion at December 31, 2021, a 2% decline, which included a $100.0 million brokered deposit that matured in the quarter and seasonal declines in municipal deposits.

■

Loan to deposit ratio was 77.6% at June 30, 2022, compared to 73.3% at December 31, 2021.

Net Interest Income and Net Interest Margin

■

Net interest income for the second quarter of 2022 was $87.6 million, which was up $7.2 million, or 9.0%, from the first quarter of 2022 and up $8.4 million, or 10.6%, from the second quarter of 2021 primarily due to higher yields on earning assets. PPP income for the second quarter of 2022 was $1.3 million, which was $0.7 million lower compared to the prior quarter and down $3.4 million compared to the second quarter of 2021.

■

The NIM on a FTE basis for the second quarter of 2022 was 3.21%, up 26 bps from the first quarter of 2022 and up 21 bps from the second quarter of 2021. Excluding the impact of PPP interest and fees and excess liquidity from each quarter, the NIM increased 13 bps from the prior quarter primarily due to higher earning asset yields as the cost of interest-bearing liabilities remained flat. The net impact of PPP loans and excess liquidity negatively impacted the NIM by 9 bps in the second quarter of 2022 compared to a negative 22 bps impact in the first quarter of 2022, reflective of a lower level of excess liquidity.

■

Earning asset yields for the three months ended June 30, 2022 were up 26 bps from the prior quarter and up 17 bps from the same quarter in the prior year. Earning assets declined $106.1 million, or 1.0%, from the prior quarter and grew $351.9 million, or 3.3%, from the same quarter in the prior year. The following are highlights comparing the second quarter of 2022 to the prior quarter:

The average balances of investment securities increased $153.7 million and yields increased 6 bps.

The average balances of short-term interest-bearing accounts with a yield of 0.82% decreased $436.8 million resulting from the incremental deployment of excess liquidity into loans and investment securities and modestly lower deposit balances due primarily to seasonal municipal outflows and the maturity of $100 million in brokered deposits.

Loan yields increased 14 bps to 4.09% for the quarter. Excluding PPP loans, loan yields increased 16 bps from the prior quarter.

■

Total cost of deposits was 0.07% for the second quarter of 2022, consistent with the prior quarter and down 5 bps from the same period in the prior year.

■

The cost of interest-bearing liabilities for the three months ended June 30, 2022 was 0.23%, consistent with the prior quarter and down 6 bps from the second quarter of 2021 of 0.29%.

Credit Quality and Allowance for Credit Losses

■

Net charge-offs to total average loans of 4 bps compared to 14 bps in the prior quarter and 7 bps in the second quarter of 2021. Recoveries in the second quarter of 2022 were $3.3 million compared to $1.9 million in the prior quarter and $2.7 million in the second quarter of 2021.

■

Nonperforming assets to total assets was 0.22% compared to 0.23% at March 31, 2022 and 0.38% (0.39% excluding PPP loans) at June 30, 2021. Past due loans to total loans increased to 0.40% as of June 30, 2022 from 0.24% (0.25% excluding PPP loans) in the prior quarter almost entirely due to one commercial credit which returned to current status in early July.

■

Provision expense for the three months ended June 30, 2022 was $4.4 million with net charge-offs of $0.8 million. Provision expense was $3.8 million higher than the first quarter of 2022 and $9.6 million higher than the second quarter of 2021. The increase in provision expense from the prior quarter was driven by modest deterioration of the macro-economic forecasts and providing for loan growth, partly offset by a lower level of net charge-offs. The increase in provision expense from the second quarter of 2021 was driven both by loan growth and an increase in the level of allowance for loan losses resulting from less favorable economic forecasts in the current year relative to improved economic forecasts in the prior year.

■

The allowance for loan losses was $93.6 million, or 1.20% (1.21% excluding PPP loans and related allowance) of total loans at June 30, 2022, compared to 1.18% (1.18% excluding PPP loans and related allowance) of total loans at March 31, 2022 and 1.31% (1.38% excluding PPP loans and related allowance) of total loans at June 30, 2021. The increase in the level of allowance for loan losses from the prior quarter was primarily due to the deterioration in the forecast of economic conditions, which had an impact on the level of expected credit losses and the increase in loan balances.

■

The reserve for unfunded loan commitments increased to $5.1 million at June 30, 2022 compared to the prior quarter at $4.8 million.

Noninterest Income

■

Total noninterest income, excluding securities gains (losses), was $42.2 million for the three months ended June 30, 2022, down $0.6 million from the seasonally stronger first quarter and up $3.1 million from the prior year’s second quarter.

■

Service charges on deposit accounts were comparable to the prior quarter and higher than the second quarter of 2021. Early in June 2022, the Company made adjustments to customer non-sufficient funds processing practices and expects these adjustments to reduce future service charge fee income by approximately $0.5 million per quarter.

■

Card services income was higher than the prior quarter and the second quarter of 2021 due to increased volume. As discussed in previous quarters, the Company will be subject to the provisions of the Durbin Amendment to the Dodd-Frank Act beginning in the third quarter of 2022, which it estimates will reduce quarterly debit card interchange income by approximately $3.7 million.

■

Retirement plan administration fees were lower than the prior quarter driven by seasonal revenue fluctuations related to activity-based fees and higher than the second quarter of 2021 driven by higher activity-based fees and continued organic growth.

■

Wealth management fees were lower than the prior quarter and lower than the second quarter of 2021 driven primarily by market performance.

■

Other income decreased from the prior quarter and the second quarter of the prior year driven by lower commercial loan swap fees.

Noninterest Expense

■

Total noninterest expense for the second quarter of 2022 was up 5.5% from the previous quarter and up 6.6% from the second quarter of 2021.

■

Salaries and benefits increased from the prior quarter due to one additional day of payroll in the second quarter, annual merit pay increases and increased medical expenses. The increase from the second quarter of 2021 was driven by increased salaries and wages including merit pay increases, higher levels of incentive compensation and increased medical expenses.

■

Technology and data services increased from the prior quarter due to continued investment in digital platform solutions including the completion of the Company’s human resources information system conversion.

■

Loan collection and other real estate owned were higher than the prior quarter due to higher collection expenses and a gain on the sale of a property in the first quarter of 2022.

■

Other expenses increased from the linked first quarter of 2022 due to a $0.5 million increase in the provision for the reserve for unfunded commitments, higher travel and training expenses and seasonal timing of certain expenditures.

Income Taxes

■

The effective tax rate was 22.5% for the second quarter of 2022 compared to 22.2% for the first quarter of 2022 and 22.9% for the second quarter of 2021.

Capital

■

Capital ratios remain strong with tangible common equity to tangible assets¹ at 7.87%. Tangible book value per share² was $20.99 at June 30, 2022, $21.25 at March 31, 2022 and $21.50 at June 30, 2021.

■

Stockholders’ equity decreased $61.9 million from December 31, 2021 driven by the $101.4 million decrease in accumulated other comprehensive income due to the change in the market value of securities available for sale, dividends declared of $24.1 million and the repurchase of common stock of $14.7 million, partly offset by net income of $76.9 million.

■

June 30, 2022, CET1 capital ratio of 12.14%, leverage ratio of 9.77% and total risk-based capital ratio of 15.50%.

Dividend and Stock Repurchase

■

The Board of Directors approved a third-quarter cash dividend of $0.30 per share at a meeting held today. The dividend, which represents a $0.02, or 7.1% increase, will be paid on September 15, 2022 to stockholders of record as of September 1, 2022. The increased dividend represents a yield of 3.0% based upon the closing price of the Company’s stock on July 22, 2022. This is the Company’s tenth consecutive year of annual dividend increases.

■

The Company purchased 182,900 shares of common stock early in the second quarter of 2022 at a weighted average price of $35.88 including commissions. The repurchase program under which these shares were purchased expires on December 31, 2023.

Other Events

■

On June 30, 2022, NBT Insurance Agency, LLC, a full-service insurance agency, entered into an asset purchase agreement with Harrison A. Rogers Agency, Inc. (“H.A. Rogers”), a New York corporation, pursuant to which NBT Insurance will acquire substantially all of the assets of H.A. Rogers. H.A. Rogers is a small personal and commercial lines property and casualty insurance agency. This is a strategic regional insurance expansion into the northern New York market where NBT Bank has a long established presence. The acquisition is expected to close in the third quarter.

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.

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.

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 equity^{1 3}			17.00	%		16.87	%		15.70	%		15.97	%		17.93	%
Net interest margin^{1 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 equity^{1 3}			16.93	%		18.08	%
Net interest margin^{1 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

NBT Bancorp Inc. and Subsidiaries

Asset Quality and Consolidated Loan Balances

(unaudited, dollars in thousands)

	2022						2021
	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Asset quality:
Nonaccrual loans	$	23,673		$	25,812		$	30,285		$	35,737		$	40,550
90 days past due and still accruing		2,096			1,944			2,458			2,940			2,575
Total nonperforming loans		25,769			27,756			32,743			38,677			43,125
Other real estate owned		-			-			167			859			798
Total nonperforming assets		25,769			27,756			32,910			39,536			43,923
Allowance for loan losses		93,600			90,000			92,000			93,000			98,500

Asset quality ratios (total):
Allowance for loan losses to total loans		1.20	%		1.18	%		1.23	%		1.23	%		1.31	%
Total nonperforming loans to total loans		0.33	%		0.36	%		0.44	%		0.51	%		0.57	%
Total nonperforming assets to total assets		0.22	%		0.23	%		0.27	%		0.33	%		0.38	%
Allowance for loan losses to total nonperforming loans		363.23	%		324.25	%		280.98	%		240.45	%		228.41	%
Past due loans to total loans⁴		0.40	%		0.24	%		0.29	%		0.46	%		0.26	%
Net charge-offs to average loans³		0.04	%		0.14	%		0.22	%		0.11	%		0.07	%

Asset quality ratios (excluding paycheck protection program):
Allowance for loan losses to total loans		1.21	%		1.18	%		1.24	%		1.28	%		1.38	%
Total nonperforming loans to total loans		0.33	%		0.37	%		0.44	%		0.53	%		0.60	%
Total nonperforming assets to total assets		0.22	%		0.23	%		0.28	%		0.34	%		0.39	%
Allowance for loan losses to total nonperforming loans		363.27	%		324.24	%		280.96	%		240.42	%		228.36	%
Past due loans to total loans⁴		0.40	%		0.25	%		0.29	%		0.48	%		0.27	%
Net charge-offs to average loans³		0.04	%		0.14	%		0.22	%		0.12	%		0.07	%

	2022							2021
	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Allowance for loan losses as a percentage of loans by segment:
Commercial & industrial		0.75	%		0.66	%		0.78	%		0.83	%		1.11	%
Commercial real estate		0.89	%		0.79	%		0.78	%		0.93	%		1.26	%
Paycheck protection program		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Residential real estate		0.79	%		0.88	%		0.92	%		0.93	%		0.98	%
Auto		0.79	%		0.76	%		0.79	%		0.78	%		0.76	%
Other consumer		3.98	%		4.14	%		4.49	%		4.57	%		4.27	%
Total		1.20	%		1.18	%		1.23	%		1.23	%		1.31	%
Total excluding PPP loans		1.21	%		1.18	%		1.24	%		1.28	%		1.38	%

	2022							2021
Loans by line of business:	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Commercial	$	1,298,072		$	1,214,834		$	1,155,240		$	1,148,176		$	1,159,591
Commercial real estate		2,670,633			2,709,611			2,655,367			2,638,762			2,585,421
Paycheck protection program		17,286			50,977			101,222			276,195			359,738
Residential real estate mortgages		1,606,188			1,584,551			1,571,232			1,549,684			1,512,354
Indirect auto		936,516			890,643			859,454			873,860			899,324
Residential solar		599,565			514,526			440,016			365,299			325,717
Home equity		313,395			319,180			330,357			339,316			351,469
Other consumer		336,026			365,504			385,571			375,150			324,013
Total loans	$	7,777,681		$	7,649,826		$	7,498,459		$	7,566,442		$	7,517,627

PPP income recognized	$	1,301		$	1,976		$	7,545		$	2,861		$	4,732
PPP unamortized fees	$	414		$	1,629		$	3,420		$	10,536		$	12,576

NBT Bancorp Inc. and Subsidiaries

Consolidated Balance Sheets

(unaudited, dollars in thousands)

	June 30,		December 31,
Assets	2022		2021
Cash and due from banks	$	195,023	$	157,775
Short-term interest-bearing accounts		328,593		1,111,296
Equity securities, at fair value		29,974		33,550
Securities available for sale, at fair value		1,619,356		1,687,361
Securities held to maturity (fair value $864,234 and $735,260, respectively)		936,512		733,210
Federal Reserve and Federal Home Loan Bank stock		24,893		25,098
Loans held for sale		128		830
Loans		7,777,681		7,498,459
Less allowance for loan losses		93,600		92,000
Net loans	$	7,684,081	$	7,406,459
Premises and equipment, net		69,426		72,093
Goodwill		281,112		280,541
Intangible assets, net		8,147		8,927
Bank owned life insurance		230,390		228,238
Other assets		312,824		266,733
Total assets	$	11,720,459	$	12,012,111

Liabilities and stockholders' equity
Demand (noninterest bearing)	$	3,717,899	$	3,689,556
Savings, NOW and money market		5,845,045		6,043,441
Time		465,764		501,472
Total deposits	$	10,028,708	$	10,234,469
Short-term borrowings		62,545		97,795
Long-term debt		3,347		13,995
Subordinated debt, net		98,708		98,490
Junior subordinated debt		101,196		101,196
Other liabilities		237,399		215,713
Total liabilities	$	10,531,903	$	10,761,658

Total stockholders' equity	$	1,188,556	$	1,250,453

Total liabilities and stockholders' equity	$	11,720,459	$	12,012,111

NBT Bancorp Inc. and Subsidiaries

Consolidated Statements of Income

(unaudited, dollars in thousands except per share data)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
Interest, fee and dividend income
Interest and fees on loans	$	78,539		$	74,795		$	151,882		$	149,888
Securities available for sale		7,317			5,762			14,157			11,306
Securities held to maturity		4,185			3,096			7,678			6,478
Other		1,442			391			1,967			682
Total interest, fee and dividend income	$	91,483		$	84,044		$	175,684		$	168,354
Interest expense
Deposits	$	1,756		$	2,862		$	3,598		$	6,034
Short-term borrowings		13			32			29			102
Long-term debt		33			88			120			212
Subordinated debt		1,359			1,359			2,718			2,718
Junior subordinated debt		737			525			1,286			1,055
Total interest expense	$	3,898		$	4,866		$	7,751		$	10,121
Net interest income	$	87,585		$	79,178		$	167,933		$	158,233
Provision for loan losses		4,390			(5,216	)		4,986			(8,012	)
Net interest income after provision for loan losses	$	83,195		$	84,394		$	162,947		$	166,245
Noninterest income
Service charges on deposit accounts	$	3,763		$	3,028		$	7,451		$	6,055
Card services income		9,751			9,184			18,446			16,734
Retirement plan administration fees		12,676			9,779			25,955			19,877
Wealth management		8,252			8,406			16,892			16,316
Insurance services		3,578			3,508			7,366			6,969
Bank owned life insurance income		1,411			1,659			3,065			3,040
Net securities (losses) gains		(587	)		201			(766	)		668
Other		2,812			3,551			5,906			6,695
Total noninterest income	$	41,656		$	39,316		$	84,315		$	76,354
Noninterest expense
Salaries and employee benefits	$	46,716		$	42,671		$	92,224		$	84,272
Technology and data services		8,945			8,841			17,492			17,733
Occupancy		6,487			6,370			13,280			13,259
Professional fees and outside services		3,906			4,030			8,182			7,619
Office supplies and postage		1,548			1,615			2,972			3,114
FDIC expense		810			663			1,612			1,471
Advertising		730			468			1,384			919
Amortization of intangible assets		545			682			1,181			1,494
Loan collection and other real estate owned, net		757			663			1,141			1,253
Other		5,675			5,416			8,794			8,173
Total noninterest expense	$	76,119		$	71,419		$	148,262		$	139,307
Income before income tax expense	$	48,732		$	52,291		$	99,000		$	103,292
Income tax expense		10,957			11,995			22,099			23,150
Net income	$	37,775		$	40,296		$	76,901		$	80,142
Earnings Per Share
Basic	$	0.88		$	0.93		$	1.79		$	1.84
Diluted	$	0.88		$	0.92		$	1.78		$	1.83

NBT Bancorp Inc. and Subsidiaries

Quarterly Consolidated Statements of Income

(unaudited, dollars in thousands except per share data)

	2022						2021
	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Interest, fee and dividend income
Interest and fees on loans	$	78,539		$	73,343		$	79,470		$	72,817		$	74,795
Securities available for sale		7,317			6,840			6,101			5,898			5,762
Securities held to maturity		4,185			3,493			3,097			2,976			3,096
Other		1,442			525			639			524			391
Total interest, fee and dividend income	$	91,483		$	84,201		$	89,307		$	82,215		$	84,044
Interest expense
Deposits	$	1,756		$	1,842		$	2,132		$	2,548		$	2,862
Short-term borrowings		13			16			28			28			32
Long-term debt		33			87			88			89			88
Subordinated debt		1,359			1,359			1,360			1,359			1,359
Junior subordinated debt		737			549			518			517			525
Total interest expense	$	3,898		$	3,853		$	4,126		$	4,541		$	4,866
Net interest income	$	87,585		$	80,348		$	85,181		$	77,674		$	79,178
Provision for loan losses		4,390			596			3,097			(3,342	)		(5,216	)
Net interest income after provision for loan losses	$	83,195		$	79,752		$	82,084		$	81,016		$	84,394
Noninterest income
Service charges on deposit accounts	$	3,763		$	3,688		$	3,804		$	3,489		$	3,028
Card services income		9,751			8,695			8,847			9,101			9,184
Retirement plan administration fees		12,676			13,279			11,816			10,495			9,779
Wealth management		8,252			8,640			8,619			8,783			8,406
Insurance services		3,578			3,788			3,394			3,720			3,508
Bank owned life insurance income		1,411			1,654			1,629			1,548			1,659
Net securities (losses) gains		(587	)		(179	)		(2	)		(100	)		201
Other		2,812			3,094			3,004			3,293			3,551
Total noninterest income	$	41,656		$	42,659		$	41,111		$	40,329		$	39,316
Noninterest expense
Salaries and employee benefits	$	46,716		$	45,508		$	44,118		$	44,190		$	42,671
Technology and data services		8,945			8,547			8,563			8,421			8,841
Occupancy		6,487			6,793			6,635			6,154			6,370
Professional fees and outside services		3,906			4,276			4,903			3,784			4,030
Office supplies and postage		1,548			1,424			1,528			1,364			1,615
FDIC expense		810			802			798			772			663
Advertising		730			654			1,019			583			468
Amortization of intangible assets		545			636			651			663			682
Loan collection and other real estate owned, net		757			384			956			706			663
Other		5,675			3,119			5,934			6,232			5,416
Total noninterest expense	$	76,119		$	72,143		$	75,105		$	72,869		$	71,419
Income before income tax expense	$	48,732		$	50,268		$	48,090		$	48,476		$	52,291
Income tax expense		10,957			11,142			10,780			11,043			11,995
Net income	$	37,775		$	39,126		$	37,310		$	37,433		$	40,296
Earnings Per Share
Basic	$	0.88		$	0.91		$	0.86		$	0.86		$	0.93
Diluted	$	0.88		$	0.90		$	0.86		$	0.86		$	0.92

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
		Q2 - 2022					Q1 - 2022					Q4 - 2021					Q3 - 2021					Q2 - 2021
Assets
Short-term interest-bearing accounts	$	553,548		0.82	%	$	990,319		0.17	%	$	1,145,794		0.16	%	$	1,014,120		0.16	%	$	974,034		0.09	%
Securities taxable¹		2,439,960		1.74	%		2,284,578		1.67	%		2,081,796		1.57	%		1,923,700		1.63	%		1,864,542		1.69	%
Securities tax-exempt ^{1 5}		256,799		1.83	%		258,513		1.84	%		257,320		1.85	%		246,685		1.97	%		193,108		2.59	%
FRB and FHLB stock		24,983		5.03	%		25,026		1.98	%		25,149		2.74	%		25,154		1.91	%		25,115		2.67	%
Loans^{1 6}		7,707,730		4.09	%		7,530,674		3.95	%		7,507,165		4.20	%		7,517,839		3.84	%		7,574,272		3.96	%
Total interest-earning assets	$	10,983,020		3.35	%	$	11,089,110		3.09	%	$	11,017,224		3.23	%	$	10,727,498		3.05	%	$	10,631,071		3.18	%
Other assets		883,498					947,578					982,136					1,019,797					971,681
Total assets	$	11,866,518				$	12,036,688				$	11,999,360				$	11,747,295				$	11,602,752
Liabilities and stockholders' equity
Money market deposit accounts	$	2,577,367		0.14	%	$	2,720,338		0.15	%	$	2,678,477		0.16	%	$	2,580,570		0.19	%	$	2,605,767		0.21	%
NOW deposit accounts		1,580,132		0.07	%		1,583,091		0.05	%		1,551,846		0.05	%		1,442,678		0.05	%		1,454,751		0.05	%
Savings deposits		1,845,128		0.03	%		1,794,549		0.03	%		1,725,004		0.05	%		1,691,539		0.05	%		1,660,722		0.05	%
Time deposits		478,531		0.37	%		494,632		0.40	%		537,875		0.46	%		565,216		0.62	%		591,147		0.75	%
Total interest-bearing deposits	$	6,481,158		0.11	%	$	6,592,610		0.11	%	$	6,493,202		0.13	%	$	6,280,003		0.16	%	$	6,312,387		0.18	%
Federal funds purchased		-		-			-		-			65		-			-		-			-		-
Repurchase agreements		60,061		0.09	%		72,768		0.09	%		97,389		0.11	%		99,703		0.11	%		95,226		0.13	%
Short-term borrowings		-		-			-		-			1		-			-		-			-		-
Long-term debt		5,336		2.48	%		13,979		2.52	%		14,004		2.49	%		14,029		2.52	%		14,053		2.51	%
Subordinated debt, net		98,642		5.53	%		98,531		5.59	%		98,422		5.48	%		98,311		5.48	%		98,204		5.55	%
Junior subordinated debt		101,196		2.92	%		101,196		2.20	%		101,196		2.03	%		101,196		2.03	%		101,196		2.08	%
Total interest-bearing liabilities	$	6,746,393		0.23	%	$	6,879,084		0.23	%	$	6,804,279		0.24	%	$	6,593,242		0.27	%	$	6,621,066		0.29	%
Demand deposits		3,711,049					3,710,124					3,719,070					3,676,883					3,542,176
Other liabilities		218,491					206,292					231,260					244,125					235,536
Stockholders' equity		1,190,585					1,241,188					1,244,751					1,233,045					1,203,974
Total liabilities and stockholders' equity	$	11,866,518				$	12,036,688				$	11,999,360				$	11,747,295				$	11,602,752
Interest rate spread				3.12	%				2.86	%				2.99	%				2.78	%				2.89	%
Net interest margin (FTE)¹				3.21	%				2.95	%				3.08	%				2.88	%				3.00	%

NBT Bancorp Inc. and Subsidiaries

Average Year-to-Date Balance Sheets

(unaudited, dollars in thousands)

	Average				Yield/			Average				Yield/
	Balance		Interest		Rates			Balance		Interest		Rates
Six Months Ended June 30,	2022							2021
Assets
Short-term interest-bearing accounts	$	770,727	$	1,533		0.40	%	$	781,764	$	360		0.09	%
Securities taxable¹		2,362,699		19,981		1.71	%		1,817,008		15,806		1.75	%
Securities tax-exempt ^{1 5}		257,651		2,347		1.84	%		188,998		2,504		2.67	%
FRB and FHLB stock		25,004		434		3.50	%		25,359		322		2.56	%
Loans^{1 6}		7,619,691		151,964		4.02	%		7,574,304		149,963		3.99	%
Total interest-earning assets	$	11,035,772	$	176,259		3.22	%	$	10,387,433	$	168,955		3.28	%
Other assets		915,361							966,367
Total assets	$	11,951,133						$	11,353,800
Liabilities and stockholders' equity
Money market deposit accounts	$	2,648,458	$	1,924		0.15	%	$	2,545,280	$	2,755		0.22	%
NOW deposit accounts		1,581,603		460		0.06	%		1,407,118		348		0.05	%
Savings deposits		1,819,978		293		0.03	%		1,604,664		406		0.05	%
Time deposits		486,537		921		0.38	%		603,178		2,525		0.84	%
Total interest-bearing deposits	$	6,536,576	$	3,598		0.11	%	$	6,160,240	$	6,034		0.20	%
Federal funds purchased		-		-		-			-		-		-
Repurchase agreements		66,379		29		0.09	%		102,525		75		0.15	%
Short-term borrowings		-		-		-			2,624		27		2.07	%
Long-term debt		9,634		120		2.51	%		16,967		212		2.52	%
Subordinated debt, net		98,587		2,718		5.56	%		98,149		2,718		5.58	%
Junior subordinated debt		101,196		1,286		2.56	%		101,196		1,055		2.10	%
Total interest-bearing liabilities	$	6,812,372	$	7,751		0.23	%	$	6,481,701	$	10,121		0.31	%
Demand deposits		3,710,589							3,431,216
Other liabilities		212,425							243,221
Stockholders' equity		1,215,747							1,197,662
Total liabilities and stockholders' equity	$	11,951,133						$	11,353,800
Net interest income (FTE)¹			$	168,508						$	158,834
Interest rate spread						2.99	%						2.97	%
Net interest margin (FTE)¹						3.08	%						3.08	%
Taxable equivalent adjustment			$	575						$	601
Net interest income			$	167,933						$	158,233

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")	2022						2021
	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Net income	$	37,775		$	39,126		$	37,310		$	37,433		$	40,296
Income tax expense		10,957			11,142			10,780			11,043			11,995
Provision for loan losses		4,390			596			3,097			(3,342	)		(5,216	)
FTE adjustment		290			285			292			298			299
Net securities losses (gains)		587			179			2			100			(201	)
Provision for unfunded loan commitments reserve		240			(260	)		(250	)		(470	)		(80	)
Nonrecurring expense		-			(172	)		250			2,288			1,880
PPNR	$	54,239		$	50,896		$	51,481		$	47,350		$	48,973

Average assets	$	11,866,518		$	12,036,688		$	11,999,360		$	11,747,295		$	11,602,757

Return on average assets³		1.28	%		1.32	%		1.23	%		1.26	%		1.39	%
PPNR return on average assets³		1.83	%		1.71	%		1.70	%		1.60	%		1.69	%

	6 Months Ended June 30,
		2022			2021
Net income	$	76,901		$	80,142
Income tax expense		22,099			23,150
Provision for loan losses		4,986			(8,012	)
FTE adjustment		575			601
Net securities losses (gains)		766			(668	)
Provision for unfunded loan commitments reserve		(20	)		(580	)
Nonrecurring expense		(172	)		1,880
PPNR	$	105,135		$	96,513

Average Assets	$	11,951,133		$	11,353,800

Return on average assets³		1.30	%		1.42	%
PPNR return on average assets³		1.77	%		1.71	%

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	2022						2021
	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Net interest income	$	87,585		$	80,348		$	85,181		$	77,674		$	79,178
Add: FTE adjustment		290			285			292			298			299
Net interest income (FTE)	$	87,875		$	80,633		$	85,473		$	77,972		$	79,477
Average earning assets	$	10,983,020		$	11,089,110		$	11,017,224		$	10,727,498		$	10,631,071
Net interest margin (FTE)³		3.21	%		2.95	%		3.08	%		2.88	%		3.00	%

	6 Months Ended June 30,
		2022			2021
Net interest income	$	167,933		$	158,233
Add: FTE adjustment		575			601
Net interest income (FTE)	$	168,508		$	158,834
Average earning assets	$	11,035,772		$	10,387,433
Net interest margin (FTE)³		3.08	%		3.08	%

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	2022						2021
	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Total equity	$	1,188,556		$	1,202,250		$	1,250,453		$	1,241,457		$	1,225,056
Intangible assets		289,259			288,832			289,468			290,119			290,782
Total assets	$	11,720,459		$	12,147,833		$	12,012,111		$	11,994,411		$	11,574,947
Tangible equity to tangible assets		7.87	%		7.70	%		8.20	%		8.13	%		8.28	%

Return on average tangible common equity		2022						2021
	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Net income	$	37,775		$	39,126		$	37,310		$	37,433		$	40,296
Amortization of intangible assets (net of tax)		409			477			488			497			512
Net income, excluding intangibles amortization	$	38,184		$	39,603		$	37,798		$	37,930		$	40,808

Average stockholders' equity	$	1,190,585		$	1,241,188		$	1,244,751		$	1,233,045		$	1,203,974
Less: average goodwill and other intangibles		289,584			289,218			289,834			290,492			291,133
Average tangible common equity	$	901,001		$	951,970		$	954,917		$	942,553		$	912,841
Return on average tangible common equity³		17.00	%		16.87	%		15.70	%		15.97	%		17.93	%

	6 Months Ended June 30,
		2022			2021
Net income	$	76,901		$	80,142
Amortization of intangible assets (net of tax)		886			1,121
Net income, excluding intangibles amortization	$	77,787		$	81,263

Average stockholders' equity	$	1,215,747		$	1,197,662
Less: average goodwill and other intangibles		289,402			291,525
Average tangible common equity	$	926,345		$	906,137
Return on average tangible common equity³		16.93	%		18.08	%

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

³	Annualized.

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

⁵	Securities are shown at average amortized cost.

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