Exhibit 99.1

1

FOR IMMEDIATE RELEASE

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NBT BANCORP INC. ANNOUNCES FULL YEAR NET INCOME OF $152.0 MILLION ($3.52 PER DILUTED COMMON SHARE); APPROVES DIVIDEND

NORWICH, NY (January 23, 2023) – NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the quarter and year ended December 31, 2022.

 

Net income for the year ended December 31, 2022 was $152.0 million, or $3.52 per diluted common share, compared to $154.9 million, or $3.54 per diluted share, in the prior year.

 

Net income for the three months ended December 31, 2022 was $36.1 million, or $0.84 per diluted common share, compared to $37.3 million, or $0.86 per diluted share, in the fourth quarter of 2021.

 

CEO Comments

“Our operating results for the fourth quarter and full year of 2022 reflect strong execution by our team, including organic loan growth of over 10% and disciplined cost of funds management,” said NBT President and CEO John H. Watt, Jr. “We recognized the benefits of an asset-sensitive balance sheet in 2022 with increases in the targeted Fed Funds rate, and our credit quality continues to be excellent with low levels of net charge-offs and nonperforming assets.”

“In December, we entered into a definitive agreement to merge with Salisbury Bancorp, Inc. Aligned cultures and complementary markets support the strategic rationale for our partnership with this premier community bank franchise headquartered in Lakeville, CT. We expect the merger to close in the second quarter of 2023, pending required regulatory and shareholder approvals.”

“We were pleased to reach the milestone of 10 consecutive years of annual dividend increases in 2022,” added Watt. “The payment of a meaningful and growing dividend is an important component of our commitment to consistent and favorable long-term returns for our shareholders.”

Fourth 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

Salisbury Bancorp, Inc. Merger

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, January 24, 2023, to review fourth 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 $11.74 billion at December 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, 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.

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
		4th Q				3rd Q				2nd Q				1st Q				4th Q
Profitability:
Diluted earnings per share		$	0.84			$	0.90			$	0.88			$	0.90			$	0.86
Weighted average diluted common shares outstanding			43,144,666				43,110,932				43,092,851				43,385,451				43,574,539
Return on average assets3			1.23	%			1.33	%			1.28	%			1.32	%			1.23	%
Return on average equity3			12.30	%			12.87	%			12.73	%			12.78	%			11.89	%
Return on average tangible common equity1 3			16.54	%			17.12	%			17.00	%			16.87	%			15.70	%
Net interest margin1 3			3.68	%			3.51	%			3.21	%			2.95	%			3.08	%
		12 Months Ended December 31,
			2022				2021
Profitability:
Diluted earnings per share		$	3.52			$	3.54
Weighted average diluted common shares outstanding			43,181,312				43,718,804
Return on average assets			1.29	%			1.33	%
Return on average equity			12.67	%			12.71	%
Return on average tangible common equity1			16.89	%			16.92	%
Net interest margin1			3.34	%			3.03	%
			2022																2021
		4th Q				3rd Q				2nd Q				1st Q				4th Q
Balance sheet data:
Short-term interest-bearing accounts		$	30,862			$	97,303			$	328,593			$	913,315			$	1,111,296
Securities available for sale			1,527,225				1,556,501				1,619,356				1,662,697				1,687,361
Securities held to maturity			919,517				929,541				936,512				895,005				733,210
Net loans			8,049,347				7,807,984				7,684,081				7,559,826				7,406,459
Total assets			11,739,296				11,640,742				11,720,459				12,147,833				12,012,111
Total deposits			9,495,933				9,918,751				10,028,708				10,461,623				10,234,469
Total borrowings			787,950				277,889				265,796				278,788				311,476
Total liabilities			10,565,742				10,484,196				10,531,903				10,945,583				10,761,658
Stockholders' equity			1,173,554				1,156,546				1,188,556				1,202,250				1,250,453
Capital:
Equity to assets			10.00	%			9.94	%			10.14	%			9.90	%			10.41	%
Tangible equity ratio1			7.73	%			7.64	%			7.87	%			7.70	%			8.20	%
Book value per share		$	27.38			$	27.00			$	27.75			$	27.96			$	28.97
Tangible book value per share2		$	20.65			$	20.25			$	20.99			$	21.25			$	22.26
Leverage ratio			10.32	%			10.21	%			9.77	%			9.52	%			9.41	%
Common equity tier 1 capital ratio			12.12	%			12.17	%			12.14	%			12.23	%			12.25	%
Tier 1 capital ratio			13.19	%			13.27	%			13.27	%			13.39	%			13.43	%
Total risk-based capital ratio			15.38	%			15.50	%			15.50	%			15.64	%			15.73	%
Common stock price (end of period)		$	43.42			$	37.95			$	37.59			$	36.13			$	38.52

NBT Bancorp Inc. and Subsidiaries
Asset Quality and Consolidated Loan Balances
(unaudited, dollars in thousands)
		2022																2021
		4th Q				3rd Q				2nd Q				1st Q				4th Q
Asset quality:
Nonaccrual loans		$	17,233			$	19,098			$	23,673			$	25,812			$	30,285
90 days past due and still accruing			3,823				2,732				2,096				1,944				2,458
Total nonperforming loans			21,056				21,830				25,769				27,756				32,743
Other real estate owned			105				-				-				-				167
Total nonperforming assets			21,161				21,830				25,769				27,756				32,910
Allowance for loan losses			100,800				96,800				93,600				90,000				92,000
Asset quality ratios (total):
Allowance for loan losses to total loans			1.24	%			1.22	%			1.20	%			1.18	%			1.23	%
Total nonperforming loans to total loans			0.26	%			0.28	%			0.33	%			0.36	%			0.44	%
Total nonperforming assets to total assets			0.18	%			0.19	%			0.22	%			0.23	%			0.27	%
Allowance for loan losses to total nonperforming loans			478.72	%			443.43	%			363.23	%			324.25	%			280.98	%
Past due loans to total loans4			0.33	%			0.30	%			0.40	%			0.24	%			0.29	%
Net charge-offs to average loans3			0.18	%			0.07	%			0.04	%			0.14	%			0.22	%
Asset quality ratios (excluding paycheck protection program):
Allowance for loan losses to total loans			1.24	%			1.23	%			1.21	%			1.18	%			1.24	%
Total nonperforming loans to total loans			0.26	%			0.28	%			0.33	%			0.37	%			0.44	%
Total nonperforming assets to total assets			0.18	%			0.19	%			0.22	%			0.23	%			0.28	%
Allowance for loan losses to total nonperforming loans			478.72	%			443.43	%			363.27	%			324.24	%			280.96	%
Past due loans to total loans4			0.33	%			0.29	%			0.40	%			0.25	%			0.29	%
Net charge-offs to average loans3			0.18	%			0.07	%			0.04	%			0.14	%			0.22	%
			2022																2021
Net charge-offs by line of business:		4th Q				3rd Q				2nd Q				1st Q				4th Q
Commercial & industrial		$	(45	)		$	(1,045	)		$	(298	)		$	139			$	1,929
Commercial real estate			8				324				(246	)			346				372
Residential real estate and home equity			(79	)			(56	)			(210	)			163				51
Indirect auto			445				222				163				135				(58	)
Residential solar			596				43				153				132				170
Other consumer			2,752				1,796				1,228				1,681				1,633
Total net charge-offs		$	3,677			$	1,284			$	790			$	2,596			$	4,097
			2022																2021
		4th Q				3rd Q				2nd Q				1st Q				4th Q
Allowance for loan losses as a percentage of loans by segment:
Commercial & industrial			0.82	%			0.80	%			0.75	%			0.66	%			0.78	%
Commercial real estate			0.91	%			0.88	%			0.89	%			0.79	%			0.78	%
Paycheck protection program			0.01	%			0.01	%			0.01	%			0.01	%			0.01	%
Residential real estate			0.72	%			0.74	%			0.79	%			0.88	%			0.92	%
Auto			0.81	%			0.78	%			0.79	%			0.76	%			0.79	%
Residential solar			3.21	%			3.08	%			3.00	%			2.97	%			3.04	%
Other consumer			6.27	%			6.67	%			6.19	%			6.24	%			6.66	%
Total			1.24	%			1.22	%			1.20	%			1.18	%			1.23	%
Total excluding PPP loans			1.24	%			1.23	%			1.21	%			1.18	%			1.24	%
			2022																2021
Loans by line of business:		4th Q				3rd Q				2nd Q				1st Q				4th Q
Commercial & industrial		$	1,265,082			$	1,258,871			$	1,298,072			$	1,214,834			$	1,155,240
Commercial real estate			2,807,941				2,724,728				2,670,633				2,709,611				2,655,367
Paycheck protection program			949				3,328				17,286				50,977				101,222
Residential real estate			1,649,870				1,626,528				1,606,188				1,584,551				1,571,232
Indirect auto			989,587				952,757				936,516				890,643				859,454
Residential solar			856,798				728,898				599,565				514,526				440,016
Home equity			314,124				313,557				313,395				319,180				330,357
Other consumer			265,796				296,117				336,026				365,504				385,571
Total loans		$	8,150,147			$	7,904,784			$	7,777,681			$	7,649,826			$	7,498,459
PPP income recognized		$	71			$	320			$	1,301			$	1,976			$	7,545
PPP unamortized fees		$	45			$	108			$	414			$	1,629			$	3,420

NBT Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited, dollars in thousands)
		December 31,				December 31,
Assets		2022				2021
Cash and due from banks		$	166,488			$	157,775
Short-term interest-bearing accounts			30,862				1,111,296
Equity securities, at fair value			30,784				33,550
Securities available for sale, at fair value			1,527,225				1,687,361
Securities held to maturity (fair value $812,647 and $735,260, respectively)			919,517				733,210
Federal Reserve and Federal Home Loan Bank stock			44,713				25,098
Loans held for sale			562				830
Loans			8,150,147				7,498,459
Less allowance for loan losses			100,800				92,000
Net loans		$	8,049,347			$	7,406,459
Premises and equipment, net			69,047				72,093
Goodwill			281,204				280,541
Intangible assets, net			7,341				8,927
Bank owned life insurance			232,409				228,238
Other assets			379,797				266,733
Total assets		$	11,739,296			$	12,012,111
Liabilities and stockholders' equity
Demand (noninterest bearing)		$	3,617,324			$	3,689,556
Savings, NOW and money market			5,444,837				6,043,441
Time			433,772				501,472
Total deposits		$	9,495,933			$	10,234,469
Short-term borrowings			585,012				97,795
Long-term debt			4,815				13,995
Subordinated debt, net			96,927				98,490
Junior subordinated debt			101,196				101,196
Other liabilities			281,859				215,713
Total liabilities		$	10,565,742			$	10,761,658
Total stockholders' equity		$	1,173,554			$	1,250,453
Total liabilities and stockholders' equity		$	11,739,296			$	12,012,111