FOR IMMEDIATE RELEASE

ATTENTION: FINANCIAL AND BUSINESS EDITORS

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NBT BANCORP INC. ANNOUNCES FIRST QUARTER NET INCOME OF $39.1 MILLION ($0.90 PER DILUTED COMMON SHARE)

NORWICH, NY (April 25, 2022) – NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income of $39.1 million, or $0.90 per diluted share for the three months ended March 31, 2022, compared to $39.8 million, or $0.91 per diluted share, in the first quarter of 2021 and $37.3 million, or $0.86 per diluted share in the fourth quarter of 2021. Net interest income recognized in the first quarter of 2022 from the Paycheck Protection Program (“PPP”) was approximately $2.0 million, compared to $6.2 million in the first quarter of 2021, and $7.5 million in the fourth quarter of 2021, reflective of significantly higher levels of loan forgiveness in the prior year. Excluding the impact of PPP loan income recognition, net interest income in the first quarter of 2022 improved in comparison to the first quarter of 2021 and the linked fourth quarter of 2021 due to solid organic loan growth, productive incremental deployment of excess liquidity into investment securities, and lower costs of deposits. Noninterest income grew to $42.7 million in the first quarter of 2022, up 15.2% from the first quarter of 2021, and 3.8% higher than the fourth quarter of 2021. Quarterly operating expenses of $72.1 million in the first quarter of 2022 were 6.3% above the first quarter of the prior year, and seasonally 3.9% lower than the linked fourth quarter of 2021. The Company recorded a provision for loan losses of $0.6 million in the first quarter of 2022, compared to a net benefit of $2.8 million in the first quarter of 2021, and a provision of $3.1 million in the fourth quarter of 2021.

 

CEO Comments

First Quarter Financial Highlights

Loans

Deposits

Net Interest Income and Net Interest Margin

 

Credit Quality and Allowance for Credit Losses

Noninterest Income

 

Noninterest Expense

 

Income Taxes

 

Capital

Stock Repurchase

Other Events

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, April 26, 2022, to review first 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 $12.1 billion at March 31, 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 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, including the Delta and Omicron variants, 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 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.

		2022				2021
		1st Q				4th Q				3rd Q				2nd Q				1st Q
Profitability:
Diluted earnings per share		$	0.90			$	0.86			$	0.86			$	0.92			$	0.91
Weighted average diluted common shares outstanding			43,385,451				43,574,539				43,631,497				43,792,940				43,889,889
Return on average assets3			1.32	%			1.23	%			1.26	%			1.39	%			1.46	%
Return on average equity3			12.78	%			11.89	%			12.04	%			13.42	%			13.57	%
Return on average tangible common equity1 3			16.87	%			15.70	%			15.97	%			17.93	%			18.24	%
Net interest margin1 3			2.95	%			3.08	%			2.88	%			3.00	%			3.17	%
			2022				2021
		1st Q				4th Q				3rd Q				2nd Q				1st Q
Balance sheet data:
Short-term interest-bearing accounts		$	913,315			$	1,111,296			$	1,131,074			$	883,758			$	972,195
Securities available for sale			1,662,697				1,687,361				1,576,030				1,534,733				1,387,028
Securities held to maturity			895,005				733,210				683,103				622,351				592,999
Net loans			7,559,826				7,406,459				7,473,442				7,419,127				7,528,459
Total assets			12,147,833				12,012,111				11,994,411				11,574,947				11,537,253
Total deposits			10,461,623				10,234,469				10,195,178				9,785,257				9,815,930
Total borrowings			278,788				311,476				313,311				304,110				308,766
Total liabilities			10,945,583				10,761,658				10,752,954				10,349,891				10,346,272
Stockholders’ equity			1,202,250				1,250,453				1,241,457				1,225,056				1,190,981
Capital:
Equity to assets			9.90	%			10.41	%			10.35	%			10.58	%			10.32	%
Tangible equity ratio1			7.70	%			8.20	%			8.13	%			8.28	%			8.00	%
Book value per share		$	27.96			$	28.97			$	28.65			$	28.19			$	27.43
Tangible book value per share2		$	21.25			$	22.26			$	21.95			$	21.50			$	20.71
Leverage ratio			9.52	%			9.41	%			9.47	%			9.40	%			9.60	%
Common equity tier 1 capital ratio			12.23	%			12.25	%			12.20	%			12.12	%			12.13	%
Tier 1 capital ratio			13.39	%			13.43	%			13.39	%			13.34	%			13.38	%
Total risk-based capital ratio			15.64	%			15.73	%			15.74	%			15.78	%			15.92	%
Common stock price (end of period)		$	36.13			$	38.52			$	36.12			$	35.97			$	39.90