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Exhibit 99.1

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 $39.0 MILLION ($0.90 PER DILUTED COMMON SHARE); APPROVES DIVIDEND

NORWICH, NY (October 25, 2022) – 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, 2022.

 

Net income for the three months ended September 30, 2022 was $39.0 million, or $0.90 per diluted common share, compared to $37.4 million, or $0.86 per diluted share, in the third quarter of 2021 and $37.8 million, or $0.88 per diluted share, in the second quarter of 2022. Net interest income recognized in the third quarter of 2022 from the Paycheck Protection Program (“PPP”) was approximately $0.3 million (less than $0.01 per diluted share), compared to $2.9 million ($0.05 per diluted share) in the third quarter of 2021 and $1.3 million ($0.02 per diluted share) in the second quarter of 2022. Net interest income in the third quarter of 2022 improved in comparison to the third quarter of 2021 and the linked second quarter of 2022, primarily due to higher yields on earning assets due to increases in the Federal Reserve’s targeted Federal Funds rate combined with growth in earning assets. The Company recorded a provision for loan losses of $4.5 million ($0.08 per diluted share) in the third quarter of 2022, compared to a net benefit of $3.3 million ($0.06 per diluted share) in the third quarter of 2021 and a provision of $4.4 million ($0.08 per diluted share) in the second quarter of 2022.

 

CEO Comments

“We are very pleased with our operating results for the third quarter and first nine months of 2022, which reflect strong execution by our team including solid organic loan growth and disciplined cost of funds management. With additional increases in the targeted Fed Funds rate, we continue to experience 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 low levels of net charge-offs and nonperforming assets. Our fee-based businesses reported solid results despite the inherent headwinds associated with lower equity market valuations. Our improved net interest income generation overcame the $4 million or, seven cents per share, reduction in debit interchange revenue due to the Company being subject to the Durbin Amendment of the Dodd-Frank Act beginning in the third quarter of 2022.”

Third 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

Dividend

Other Events

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Wednesday, October 26, 2022, to review third 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 $11.64 billion at September 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.

One of the more 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.

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

Asset Quality and Consolidated Loan Balances

(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 - 2022						Q2 - 2022						Q1 - 2022						Q4 - 2021						Q3 - 2021
Assets
Short-term interest-bearing accounts		$	191,463		2.51	%		$	553,548		0.82	%		$	990,319		0.17	%		$	1,145,794		0.16	%		$	1,014,120		0.16	%
Securities taxable1			2,491,315		1.83	%			2,439,960		1.74	%			2,284,578		1.67	%			2,081,796		1.57	%			1,923,700		1.63	%
Securities tax-exempt 1 5			211,306		2.47	%			256,799		1.83	%			258,513		1.84	%			257,320		1.85	%			246,685		1.97	%
FRB and FHLB stock			25,182		3.47	%			24,983		5.03	%			25,026		1.98	%			25,149		2.74	%			25,154		1.91	%
Loans1 6			7,808,025		4.34	%			7,707,730		4.09	%			7,530,674		3.95	%			7,507,165		4.20	%			7,517,839		3.84	%
Total interest-earning assets		$	10,727,291		3.68	%		$	10,983,020		3.35	%		$	11,089,110		3.09	%		$	11,017,224		3.23	%		$	10,727,498		3.05	%
Other assets			887,378						883,498						947,578						982,136						1,019,797
Total assets		$	11,614,669					$	11,866,518					$	12,036,688					$	11,999,360					$	11,747,295
Liabilities and stockholders' equity
Money market deposit accounts		$	2,332,341		0.15	%		$	2,577,367		0.14	%		$	2,720,338		0.15	%		$	2,678,477		0.16	%		$	2,580,570		0.19	%
NOW deposit accounts			1,548,115		0.21	%			1,580,132		0.07	%			1,583,091		0.05	%			1,551,846		0.05	%			1,442,678		0.05	%
Savings deposits			1,854,122		0.03	%			1,845,128		0.03	%			1,794,549		0.03	%			1,725,004		0.05	%			1,691,539		0.05	%
Time deposits			455,168		0.35	%			478,531		0.37	%			494,632		0.40	%			537,875		0.46	%			565,216		0.62	%
Total interest-bearing deposits		$	6,189,746		0.14	%		$	6,481,158		0.11	%		$	6,592,610		0.11	%		$	6,493,202		0.13	%		$	6,280,003		0.16	%
Federal funds purchased			1,522		3.39	%			-		-				-		-				65		-				-		-
Repurchase agreements			69,048		0.10	%			60,061		0.09	%			72,768		0.09	%			97,389		0.11	%			99,703		0.11	%
Short-term borrowings			6,440		3.33	%			-		-				-		-				1		-				-		-
Long-term debt			3,331		2.38	%			5,336		2.48	%			13,979		2.52	%			14,004		2.49	%			14,029		2.52	%
Subordinated debt, net			98,748		5.46	%			98,642		5.53	%			98,531		5.59	%			98,422		5.48	%			98,311		5.48	%
Junior subordinated debt			101,196		4.07	%			101,196		2.92	%			101,196		2.20	%			101,196		2.03	%			101,196		2.03	%
Total interest-bearing liabilities		$	6,470,031		0.29	%		$	6,746,393		0.23	%		$	6,879,084		0.23	%		$	6,804,279		0.24	%		$	6,593,242		0.27	%
Demand deposits			3,708,131						3,711,049						3,710,124						3,719,070						3,676,883
Other liabilities			234,851						218,491						206,292						231,260						244,125
Stockholders' equity			1,201,656						1,190,585						1,241,188						1,244,751						1,233,045
Total liabilities and stockholders' equity		$	11,614,669					$	11,866,518					$	12,036,688					$	11,999,360					$	11,747,295
Interest rate spread					3.39	%					3.12	%					2.86	%					2.99	%					2.78	%
Net interest margin (FTE)1					3.51	%					3.21	%					2.95	%					3.08	%					2.88	%