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 FULL YEAR NET INCOME AND DECLARES DIVIDEND

NORWICH, NY (January 23, 2024) – NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and twelve months ended December 31, 2023.

Net income for the three months ended December 31, 2023 was $30.4 million, or $0.64 per diluted common share, compared to $36.1 million, or $0.84 per diluted common share, for the three months ended December 31, 2022, and $24.6 million, or $0.54 per diluted common share, in the third quarter of 2023. Operating diluted earnings per share¹, a non-GAAP measure, which excludes acquisition expenses, acquisition-related provision for credit losses, securities gains (losses) and impairment of a minority interest equity investment, net of tax, was $0.72 for the fourth quarter of 2023, compared to $0.86 in the fourth quarter of 2022 and $0.84 in the third quarter of 2023.

Net income for the year ended December 31, 2023 was $118.8 million, or $2.65 per diluted common share, compared to $152.0 million, or $3.52 per diluted common share, in the prior year. Operating diluted earnings per share¹ was $3.23 for the year ended December 31, 2023, compared to $3.56 in the prior year.

CEO Comments

“NBT’s fourth quarter and full year results reflect our consistent dedication to improving our traditional banking franchise while growing our diversified revenue sources,” said NBT President and CEO John H. Watt, Jr. “In a year characterized by unprecedented market volatility, we grew loans and deposits, maintained strong asset quality, improved our capital position, completed the high-value acquisition of Salisbury Bancorp, Inc., and continued to deliver best-in-class customer service.”

Fourth Quarter Financial Highlights

Net Income	■ Net income of $30.4 million and diluted earnings per share of $0.64 ■ Operating net income was $33.9 million and diluted operating earnings per share of $0.72¹
Net Interest Income / NIM	■ Net interest income on a fully taxable equivalent (“FTE”) basis was $99.8 million¹ ■ Net interest margin (“NIM”) on an FTE basis was 3.15%¹, down 6 basis points (“bps”) from the prior quarter ■ Included in FTE net interest income was $2.6 million of acquisition-related net accretion which positively impacted NIM by 8 bps ■ Earning asset yields of 4.79% were up 16 bps from the prior quarter ■ Total cost of funds of 1.72% was up 22 bps from the prior quarter
Noninterest Income	■ Excluding net securities gains (losses), noninterest income was $38.0 million, or 27.7% of total revenues
Loans and Credit Quality	■ Period end total loans of $9.65 billion as of December 31, 2023, up $1.50 billion from December 31, 2022, and included $1.18 billion of loans acquired from Salisbury Bancorp, Inc. (“Salisbury”) ■ Excluding loans acquired from Salisbury, loans grew $320.6 million, or 3.9%, year-over-year ■ Net charge-offs to average loans were 0.22% ■ Nonperforming loans to total loans were 0.39%, compared to 0.25% in the prior quarter and 0.26% in the fourth quarter of 2022 ■ Allowance for loan losses to total loans was 1.19%
Deposits	■ Deposits were $10.97 billion as of December 31, 2023, up $1.47 billion from December 31, 2022, and included $1.31 billion in deposits acquired from Salisbury ■ Total cost of deposits was 1.51% for the fourth quarter of 2023, up 33 bps from the third quarter ■ Full cycle to-date deposit beta of 28% ■ Composition of total deposits is diverse and granular with over 563,000 accounts with an average per account balance of $19,483
Capital	■ Stockholders’ equity was $1.43 billion as of December 31, 2023 ■ Tangible book value per share² was $21.72 at December 31, 2023 ■ Tangible equity to assets grew 11% to 7.93%¹ ■ CET1 ratio of 11.57%; Leverage ratio of 9.71%

Loans

■

Period end total loans were $9.65 billion at December 31, 2023, consistent with the end of the third quarter of 2023 and were $8.15 billion at December 31, 2022.

■

Period end total loans increased $1.50 billion from December 31, 2022, including loans acquired from Salisbury. Commercial and industrial loans increased $88.2 million to $1.35 billion; commercial real estate loans increased $819.0 million to $3.63 billion; and total consumer loans increased $593.4 million to $4.67 billion.

■

Commercial line of credit utilization rate was 20% at December 31, 2023, compared to 22% at September 30, 2023 and 21% at December 31, 2022.

Deposits

■

Total deposits at December 31, 2023 were $10.97 billion, compared to $9.50 billion at December 31, 2022. The Company continued to experience incremental migration from noninterest bearing and low interest checking and savings accounts into higher cost money market and time deposit instruments, during each quarter of 2023.

■

Loan to deposit ratio was 88.0% at December 31, 2023, compared to 85.8% at December 31, 2022. Consistent with historical trends and as seasonally expected, ending deposits declined from September 30, 2023 to December 31, 2023.

Net Interest Income and Net Interest Margin

■

Net interest income for the fourth quarter of 2023 was $99.2 million, which was up $4.3 million, or 4.5%, from the third quarter of 2023 and down $0.6 million, or 0.6%, from the fourth quarter of 2022. The increase in net interest income resulted from the benefit of the full quarter impact of the Salisbury acquisition and was partially offset by the increase in cost of funds outpacing the improvement in asset yields during the quarter.

■

The NIM on an FTE basis for the fourth quarter of 2023 was 3.15%, a decrease of 6 bps from the third quarter of 2023, driven by an increase in the cost of interest-bearing deposits, partly offset by an increase in average earning asset yields and a full quarter impact of acquisition-related net accretion. The NIM on an FTE basis decreased 53 bps from the fourth quarter of 2022 due to the increase in the cost of interest-bearing deposits and higher short-term borrowings costs and average balances, partially offset by higher earning asset yields.

■

Earning asset yields for the three months ended December 31, 2023 increased 16 bps from the prior quarter to 4.79% and increased 77 bps from the same quarter in the prior year. Average earning assets grew $761.0 million, or 6.4%, from the third quarter of 2023 due to the Salisbury acquisition and organic loan growth.

■

Total cost of deposits, including noninterest bearing deposits, was 1.51% for the fourth quarter of 2023, an increase of 33 bps from the prior quarter and up 134 bps from the same period in the prior year.

■

Total cost of funds for the three months ended December 31, 2023 was 1.72%, up 22 bps from the prior quarter and up 135 bps from the fourth quarter of 2022.

Asset Quality and Allowance for Loan Losses

■

Net charge-offs to total average loans was 22 bps compared to 18 bps in both the prior quarter and in the fourth quarter of 2022. Net charge-offs for the portfolios in a planned run-off status represented the majority of total net charge-offs for the quarter and full year.

■

Nonperforming assets to total assets were 0.28% at December 31, 2023, compared to 0.18% at both September 30, 2023 and December 31, 2022. The increase in nonperforming assets was attributable to a diversified, multi-tenant commercial real estate development relationship that was placed into a nonaccrual status in the fourth quarter of 2023, in which NBT is a participant. The relationship is being actively managed and recent appraised values continue to support its carrying value, and as such, no specific reserve has been established.

■

Provision expense for the three months ended December 31, 2023 was $5.1 million, compared to $12.6 million for the third quarter of 2023 and $7.7 million for the fourth quarter of 2022. Included in the provision expense in the third quarter of 2023 was $8.8 million of acquisition-related provision for loan losses.

■

The allowance for loan losses was $114.4 million, or 1.19% of total loans, at December 31, 2023, consistent with September 30, 2023 and 1.24% of total loans at December 31, 2022. The allowance was consistent with the third quarter of 2023 and the increase in the allowance for loan losses from the fourth quarter of 2022 was due to $14.5 million of allowance for acquired Salisbury loans which included both the $8.8 million of non-purchased credit deteriorated allowance recognized through the provision for loan losses and the $5.8 million of purchased credit deteriorated allowance reclassified from loans.

■

The reserve for unfunded loan commitments increased to $5.1 million at December 31, 2023 compared to the prior quarter-end at $4.8 million and to $5.1 million at December 31, 2022. The provision for unfunded loan commitments in the third quarter of 2023 included $0.8 million of acquisition-related provision for unfunded loan commitments.

Noninterest Income

■

Total noninterest income, excluding securities gains (losses), was $38.0 million for the three months ended December 31, 2023, down $2.4 million from the seasonally high third quarter, and $3.7 million higher, or 10.7%, from the fourth quarter of 2022.

■

Service charges on deposit accounts were higher than the prior quarter and the fourth quarter of 2022 due primarily to the Salisbury acquisition and new account growth.

■

Retirement plan administration fees were down $1.6 million from the prior quarter and were $0.6 million higher than the fourth quarter of 2022. The decrease from the prior quarter, as expected, was due to certain seasonal activity-based fees in the third quarter. The increase from the fourth quarter of 2022 included the impact from the acquisition of Retirement Direct, LLC on July 1, 2023.

■

Wealth management fees were consistent with the prior quarter as certain prior quarter seasonal activity-based fees were offset by the full quarter addition of Salisbury revenues and were $1.1 million higher than the fourth quarter of 2022.

■

Insurance services were down $0.7 million from the third quarter which has comparatively higher levels of policy renewals than the fourth quarter.

Noninterest Expense

■

Total noninterest expense was $92.8 million for the fourth quarter of 2023 compared to $90.8 million in the third quarter of 2023 and $79.5 million in the fourth quarter of 2022. Total noninterest expense, excluding $0.3 million of acquisition expenses in the fourth quarter of 2023, $7.9 million in the third quarter of 2023 and $1.0 million in the fourth quarter of 2022, and the $4.8 million impairment of a minority interest equity investment in the fourth quarter of 2023 increased 5.9% compared to the previous quarter primarily due to a full quarter impact of the Salisbury acquisition and higher professional service fees and increased 11.7% from the fourth quarter of 2022.

■

Salaries and benefits increased 1.6% from the prior quarter driven by the full quarter impact of the Salisbury acquisition and was partially offset by lower quarterly incentive costs.

■

Technology and data services, professional fees and outside services, and advertising increased from the prior quarter and the fourth quarter of 2022 due to the timing of initiatives that occurred following the completion of the Salisbury acquisition in the third quarter.

■

Amortization of intangible assets increased $0.5 million from the prior quarter and $1.6 million from the fourth quarter of 2022 primarily due to the amortization of intangible assets related to the Salisbury acquisition.

■

FDIC assessment expense increased $0.2 million in the prior quarter primarily due to the acquisition of Salisbury and increased $1.1 million from the fourth quarter of 2022 driven by the statutory increase in the FDIC assessment rate.

■

In the fourth quarter of 2023, the Company recorded a full $4.8 million ($0.08 per diluted share) impairment of its minority interest equity investment in a provider of financial and technology services to residential solar equipment installers, due to the uncertainty in the realizability of the investment.

Income Taxes

■

The effective tax rate was 23.5% for the fourth quarter of 2023 which was up from 22.4% in the third quarter of 2023 and 22.6% for the fourth quarter of 2022 and primarily to adjust to a full year tax rate for 2023 of 22.6%, including assessment of acquisition related items.

Capital

■

Tangible common equity to tangible assets¹ was 7.93% at December 31, 2023. Tangible book value per share² was $21.72 at December 31, 2023, $20.39 at September 30, 2023 and $20.65 at December 31, 2022.

■

Stockholders’ equity increased $252.1 million from December 31, 2022 driven by the Salisbury acquisition adding $161.7 million of capital, net income generation of $118.8 million and a $29.1 million increase in accumulated other comprehensive income driven by the change in the market value of securities available for sale, partially offset by dividends declared of $55.9 million and the repurchase of common stock of $4.9 million.

■

December 31, 2023, CET1 capital ratio of 11.57%, leverage ratio of 9.71% and total risk-based capital ratio of 14.75%.

Dividend

■

On January 22, 2024, the Board of Directors approved a first-quarter cash dividend of $0.32 per share, which represents a $0.02 per quarter, or 6.7%, increase over the dividend paid in the first quarter of 2023. The dividend will be paid on March 15, 2024 to stockholders of record as of March 1, 2024.

Stock Repurchase

■

The Company purchased 155,500 shares of its common stock during 2023 at an average price of $31.79 per share under its previously announced share repurchase program. The repurchase program under which these shares were purchased expired on December 31, 2023.

■

On December 18, 2023, the Board of Directors authorized and approved an amendment to the Company’s previously announced stock repurchase program. Pursuant to the amended stock repurchase program, the Company may repurchase up to 2,000,000 of the currently outstanding shares of its common stock with all repurchases under the stock repurchase program to be made by December 31, 2025. The Company may repurchase shares of its common stock from time to time to mitigate the potential dilutive effects of stock-based incentive plans and other potential uses of common stock for corporate purposes.

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Wednesday, January 24, 2024, to review fourth quarter 2023 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at https://www.nbtbancorp.com/bn/presentations-events.html#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 $13.31 billion at December 31, 2023. 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 153 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, including actual or potential stress in the banking industry, 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 the perceived overall value of these products and services by users; (9) changes in consumer spending, borrowing and saving habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisition and integration of acquired businesses; (13) the possibility that NBT may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes; (14) the ability to increase market share and control expenses; (15) changes in the competitive environment among financial holding companies; (16) 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, and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (17) 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 and other accounting standard setters; (18) changes in the Company’s organization, compensation and benefit plans; (19) 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; (20) greater than expected costs or difficulties related to the integration of new products and lines of business; 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)

	2023													2022
		4th Q			3rd Q			2nd Q			1st Q			4th Q
Profitability (reported)
Diluted earnings per share		$	0.64		$	0.54		$	0.70		$	0.78		$	0.84
Weighted average diluted common shares outstanding			47,356,899			45,398,937			43,126,498			43,125,986			43,144,666
Return on average assets³			0.89	%		0.76	%		1.02	%		1.16	%		1.23	%
Return on average equity³			8.79	%		7.48	%		9.91	%		11.47	%		12.30	%
Return on average tangible common equity^{1 3}			13.08	%		10.73	%		13.13	%		15.31	%		16.54	%
Net interest margin^{1 3}			3.15	%		3.21	%		3.27	%		3.55	%		3.68	%

		12 Months Ended December 31,
			2023			2022
Profitability (reported)
Diluted earnings per share		$	2.65		$	3.52
Weighted average diluted common shares outstanding			44,770,171			43,181,312
Return on average assets			0.95	%		1.29	%
Return on average equity			9.34	%		12.67	%
Return on average tangible common equity¹			13.02	%		16.89	%
Net interest margin¹			3.29	%		3.34	%

	2023													2022
		4th Q			3rd Q			2nd Q			1st Q			4th Q
Profitability (operating)
Diluted earnings per share¹		$	0.72		$	0.84		$	0.80		$	0.88		$	0.86
Return on average assets^{1 3}			0.99	%		1.19	%		1.17	%		1.31	%		1.26	%
Return on average equity^{1 3}			9.79	%		11.65	%		11.40	%		12.95	%		12.61	%
Return on average tangible common equity^{1 3}			14.49	%		16.43	%		15.08	%		17.27	%		16.95	%

		12 Months Ended December 31,
			2023			2022
Profitability (operating)
Diluted earnings per share¹		$	3.23		$	3.56
Return on average assets¹			1.16	%		1.30	%
Return on average equity¹			11.38	%		12.81	%
Return on average tangible common equity¹			15.78	%		17.06	%

	2023													2022
		4th Q			3rd Q			2nd Q			1st Q			4th Q
Balance sheet data
Short-term interest-bearing accounts		$	31,378		$	459,296		$	31,878		$	68,045		$	30,862
Securities available for sale			1,430,858			1,399,032			1,453,926			1,512,008			1,527,225
Securities held to maturity			905,267			914,520			912,876			906,824			919,517
Net loans			9,536,313			9,552,774			8,257,724			8,164,328			8,049,347
Total assets			13,309,040			13,827,628			11,890,497			11,839,730			11,739,296
Total deposits			10,968,994			11,401,452			9,529,919			9,681,205			9,495,933
Total borrowings			637,387			740,603			880,518			703,248			787,950
Total liabilities			11,883,349			12,464,807			10,680,004			10,628,071			10,565,742
Stockholders' equity			1,425,691			1,362,821			1,210,493			1,211,659			1,173,554

Capital
Equity to assets			10.71	%		9.86	%		10.18	%		10.23	%		10.00	%
Tangible equity ratio¹			7.93	%		7.15	%		7.95	%		7.99	%		7.73	%
Book value per share		$	30.26		$	28.94		$	28.26		$	28.24		$	27.38
Tangible book value per share²		$	21.72		$	20.39		$	21.55		$	21.52		$	20.65
Leverage ratio			9.71	%		10.23	%		10.51	%		10.43	%		10.32	%
Common equity tier 1 capital ratio			11.57	%		11.31	%		12.29	%		12.28	%		12.12	%
Tier 1 capital ratio			12.50	%		12.23	%		13.35	%		13.34	%		13.19	%
Total risk-based capital ratio			14.75	%		14.45	%		15.50	%		15.53	%		15.38	%
Common stock price (end of period)		$	41.91		$	31.69		$	31.85		$	33.71		$	43.42

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

	2023													2022
		4th Q			3rd Q			2nd Q			1st Q			4th Q
Asset quality
Nonaccrual loans		$	34,213		$	20,736		$	16,931		$	16,284		$	17,233
90 days past due and still accruing			3,661			3,528			2,755			2,328			3,823
Total nonperforming loans			37,874			24,264			19,686			18,612			21,056
Other real estate owned			-			-			179			105			105
Total nonperforming assets			37,874			24,264			19,865			18,717			21,161
Allowance for loan losses			114,400			114,601			100,400			100,250			100,800

Asset quality ratios
Allowance for loan losses to total loans			1.19	%		1.19	%		1.20	%		1.21	%		1.24	%
Total nonperforming loans to total loans			0.39	%		0.25	%		0.24	%		0.23	%		0.26	%
Total nonperforming assets to total assets			0.28	%		0.18	%		0.17	%		0.16	%		0.18	%
Allowance for loan losses to total nonperforming loans			302.05	%		472.31	%		510.01	%		538.63	%		478.72	%
Past due loans to total loans⁴			0.32	%		0.49	%		0.45	%		0.30	%		0.33	%
Net charge-offs to average loans³			0.22	%		0.18	%		0.17	%		0.19	%		0.18	%

	2023													2022
		4th Q			3rd Q			2nd Q			1st Q			4th Q
Loan net charge-offs by line of business
Commercial		$	1,107		$	(344	)	$	92		$	(252	)	$	(37	)
Residential real estate and home equity			11			(75	)		(43	)		80			(79	)
Indirect auto			399			451			273			423			445
Residential solar			1,081			1,253			581			656			596
Other consumer			2,729			2,919			2,553			2,904			2,752
Total loan net charge-offs		$	5,327		$	4,204		$	3,456		$	3,811		$	3,677

	2023													2022
		4th Q			3rd Q			2nd Q			1st Q			4th Q
Allowance for loan losses as a percentage of loans by segment
Commercial & industrial			0.84	%		0.87	%		0.86	%		0.85	%		0.82	%
Commercial real estate			0.99	%		1.00	%		0.93	%		0.93	%		0.91	%
Residential real estate			0.84	%		0.79	%		0.73	%		0.73	%		0.72	%
Auto			0.83	%		0.82	%		0.80	%		0.77	%		0.81	%
Residential solar			3.28	%		3.19	%		3.09	%		3.04	%		3.21	%
Other consumer			4.70	%		5.23	%		5.98	%		6.19	%		6.27	%
Total			1.19	%		1.19	%		1.20	%		1.21	%		1.24	%

	2023													2022
		4th Q			3rd Q			2nd Q			1st Q			4th Q
Loans by line of business
Commercial & industrial		$	1,354,248		$	1,424,579		$	1,319,093		$	1,278,291		$	1,266,031
Commercial real estate			3,626,910			3,575,595			2,884,264			2,845,631			2,807,941
Residential real estate			2,125,804			2,111,670			1,666,204			1,651,918			1,649,870
Indirect auto			1,130,132			1,099,558			1,048,739			1,031,315			989,587
Residential solar			917,755			934,082			926,365			920,084			856,798
Home equity			337,214			340,777			310,897			308,219			314,124
Other consumer			158,650			181,114			202,562			229,120			265,796
Total loans		$	9,650,713		$	9,667,375		$	8,358,124		$	8,264,578		$	8,150,147

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

	December 31,			December 31,
		2023			2022
Assets
Cash and due from banks		$	173,811		$	166,488
Short-term interest-bearing accounts			31,378			30,862
Equity securities, at fair value			37,591			30,784
Securities available for sale, at fair value			1,430,858			1,527,225
Securities held to maturity (fair value $814,524 and $812,647, respectively)			905,267			919,517
Federal Reserve and Federal Home Loan Bank stock			45,861			44,713
Loans held for sale			3,371			562
Loans			9,650,713			8,150,147
Less allowance for loan losses			114,400			100,800
Net loans		$	9,536,313		$	8,049,347
Premises and equipment, net			80,675			69,047
Goodwill			361,851			281,204
Intangible assets, net			40,443			7,341
Bank owned life insurance			265,732			232,409
Other assets			395,889			379,797
Total assets		$	13,309,040		$	11,739,296

Liabilities and stockholders' equity
Demand (noninterest bearing)		$	3,413,829		$	3,617,324
Savings, NOW and money market			6,230,456			5,444,837
Time			1,324,709			433,772
Total deposits		$	10,968,994		$	9,495,933
Short-term borrowings			386,651			585,012
Long-term debt			29,796			4,815
Subordinated debt, net			119,744			96,927
Junior subordinated debt			101,196			101,196
Other liabilities			276,968			281,859
Total liabilities		$	11,883,349		$	10,565,742

Total stockholders' equity		$	1,425,691		$	1,173,554

Total liabilities and stockholders' equity		$	13,309,040		$	11,739,296

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

		Three Months Ended						Twelve Months Ended
	December 31,						December 31,
		2023		2022				2023			2022
Interest, fee and dividend income
Interest and fees on loans		$	132,738	$	95,620			$	462,669		$	332,768
Securities available for sale			7,208		7,831				29,812			29,653
Securities held to maturity			5,374		5,050				20,681			17,582
Other			5,594		671				9,627			4,067
Total interest, fee and dividend income		$	150,914	$	109,172			$	522,789		$	384,070
Interest expense
Deposits		$	42,753	$	4,092			$	104,641		$	9,923
Short-term borrowings			4,951		2,510				25,608			2,623
Long-term debt			294		21				925			161
Subordinated debt			1,795		1,346				6,076			5,424
Junior subordinated debt			1,948		1,424				7,320			3,749
Total interest expense		$	51,741	$	9,393			$	144,570		$	21,880
Net interest income		$	99,173	$	99,779			$	378,219		$	362,190
Provision for loan losses		$	5,126	$	7,677			$	16,524		$	17,147
Provision for loan losses - acquisition day 1 non-PCD			-		-				8,750			-
Total provision for loan losses		$	5,126	$	7,677			$	25,274		$	17,147
Net interest income after provision for loan losses		$	94,047	$	92,102			$	352,945		$	345,043
Noninterest income
Service charges on deposit accounts		$	4,165	$	3,598			$	15,425		$	14,630
Card services income			5,360		4,958				20,829			29,058
Retirement plan administration fees			11,226		10,661				47,221			48,112
Wealth management			9,152		8,017				34,763			33,311
Insurance services			3,659		3,438				15,667			14,696
Bank owned life insurance income			1,776		1,419				6,750			6,044
Net securities gains (losses)			507		(217	)			(9,315	)		(1,131	)
Other			2,643		2,217				10,838			10,858
Total noninterest income		$	38,488	$	34,091			$	142,178		$	155,578
Noninterest expense
Salaries and employee benefits		$	50,013	$	47,235			$	194,250		$	187,830
Technology and data services			10,174		9,124				38,163			35,712
Occupancy			7,175		6,521				28,408			26,282
Professional fees and outside services			5,115		4,811				17,601			16,810
Office supplies and postage			1,913		1,699				6,917			6,140
FDIC assessment			1,860		798				6,257			3,197
Advertising			1,213		879				3,054			2,822
Amortization of intangible assets			2,131		538				4,734			2,263
Loan collection and other real estate owned, net			503		957				2,618			2,647
Reserve for unfunded loan commitments			300		(185	)			30			20
Impairment of a minority interest equity investment			4,750		-				4,750			-
Acquisition expenses			254		967				9,978			967
Other			7,350		6,165				24,904			19,775
Total noninterest expense		$	92,751	$	79,509			$	341,664		$	304,465
Income before income tax expense		$	39,784	$	46,684			$	153,459		$	196,156
Income tax expense			9,338		10,563				34,677			44,161
Net income		$	30,446	$	36,121			$	118,782		$	151,995
Earnings Per Share
Basic		$	0.65	$	0.84			$	2.67		$	3.54
Diluted		$	0.64	$	0.84			$	2.65		$	3.52

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

	2023												2022
		4th Q		3rd Q			2nd Q			1st Q			4th Q
Interest, fee and dividend income
Interest and fees on loans		$	132,738	$	122,097		$	106,935		$	100,899		$	95,620
Securities available for sale			7,208		7,495			7,493			7,616			7,831
Securities held to maturity			5,374		5,281			4,991			5,035			5,050
Other			5,594		2,221			1,170			642			671
Total interest, fee and dividend income		$	150,914	$	137,094		$	120,589		$	114,192		$	109,172
Interest expense
Deposits		$	42,753	$	30,758		$	19,986		$	11,144		$	4,092
Short-term borrowings			4,951		7,612			8,126			4,919			2,510
Long-term debt			294		294			290			47			21
Subordinated debt			1,795		1,612			1,335			1,334			1,346
Junior subordinated debt			1,948		1,923			1,767			1,682			1,424
Total interest expense		$	51,741	$	42,199		$	31,504		$	19,126		$	9,393
Net interest income		$	99,173	$	94,895		$	89,085		$	95,066		$	99,779
Provision for loan losses		$	5,126	$	3,883		$	3,606		$	3,909		$	7,677
Provision for loan losses - acquisition day 1 non-PCD			-		8,750			-			-			-
Total provision for loan losses		$	5,126	$	12,633		$	3,606		$	3,909		$	7,677
Net interest income after provision for loan losses		$	94,047	$	82,262		$	85,479		$	91,157		$	92,102
Noninterest income
Service charges on deposit accounts		$	4,165	$	3,979		$	3,733		$	3,548		$	3,598
Card services income			5,360		5,503			5,121			4,845			4,958
Retirement plan administration fees			11,226		12,798			11,735			11,462			10,661
Wealth management			9,152		9,297			8,227			8,087			8,017
Insurance services			3,659		4,361			3,716			3,931			3,438
Bank owned life insurance income			1,776		1,568			1,528			1,878			1,419
Net securities gains (losses)			507		(183	)		(4,641	)		(4,998	)		(217	)
Other			2,643		2,913			2,626			2,656			2,217
Total noninterest income		$	38,488	$	40,236		$	32,045		$	31,409		$	34,091
Noninterest expense
Salaries and employee benefits		$	50,013	$	49,248		$	46,834		$	48,155		$	47,235
Technology and data services			10,174		9,677			9,305			9,007			9,124
Occupancy			7,175		7,090			6,923			7,220			6,521
Professional fees and outside services			5,115		4,149			4,159			4,178			4,811
Office supplies and postage			1,913		1,700			1,676			1,628			1,699
FDIC assessment			1,860		1,657			1,344			1,396			798
Advertising			1,213		667			525			649			879
Amortization of intangible assets			2,131		1,609			458			536			538
Loan collection and other real estate owned, net			503		569			691			855			957
Reserve for unfunded loan commitments			300		460			(100	)		(630	)		(185	)
Impairment of a minority interest equity investment			4,750		-			-			-			-
Acquisition expenses			254		7,917			1,189			618			967
Other			7,350		6,054			5,790			5,710			6,165
Total noninterest expense		$	92,751	$	90,797		$	78,794		$	79,322		$	79,509
Income before income tax expense		$	39,784	$	31,701		$	38,730		$	43,244		$	46,684
Income tax expense			9,338		7,095			8,658			9,586			10,563
Net income		$	30,446	$	24,606		$	30,072		$	33,658		$	36,121
Earnings Per Share
Basic		$	0.65	$	0.54		$	0.70		$	0.78		$	0.84
Diluted		$	0.64	$	0.54		$	0.70		$	0.78		$	0.84

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
	Q4 - 2023						Q3 - 2023						Q2 - 2023						Q1 - 2023						Q4 - 2022
Assets
Short-term interest-bearing accounts		$	319,907		5.59	%		$	121,384		4.26	%		$	28,473		3.62	%		$	34,215		2.26	%		$	39,573		3.31	%
Securities taxable¹			2,310,409		1.88	%			2,364,809		1.90	%			2,394,027		1.90	%			2,442,732		1.92	%			2,480,959		1.88	%
Securities tax-exempt ^{1 5}			232,575		3.51	%			219,427		3.34	%			201,499		2.83	%			202,321		2.81	%			208,238		2.68	%
FRB and FHLB stock			47,994		8.98	%			53,841		6.76	%			51,454		7.12	%			41,144		4.45	%			32,903		4.11	%
Loans^{1 6}			9,653,191		5.47	%			9,043,582		5.36	%			8,307,894		5.17	%			8,189,520		5.00	%			8,039,442		4.72	%
Total interest-earning assets		$	12,564,076		4.79	%		$	11,803,043		4.63	%		$	10,983,347		4.42	%		$	10,909,932		4.26	%		$	10,801,115		4.02	%
Other assets			1,052,024						968,220						835,424						836,879						855,410
Total assets		$	13,616,100					$	12,771,263					$	11,818,771					$	11,746,811					$	11,656,525
Liabilities and stockholders' equity
Money market deposit accounts		$	3,045,531		3.43	%		$	2,422,451		2.91	%		$	2,113,965		2.30	%		$	2,081,210		1.22	%		$	2,169,192		0.39	%
NOW deposit accounts			1,645,401		0.80	%			1,513,420		0.57	%			1,463,953		0.38	%			1,598,834		0.36	%			1,604,096		0.33	%
Savings deposits			1,666,915		0.04	%			1,707,094		0.04	%			1,708,874		0.03	%			1,781,465		0.03	%			1,823,056		0.03	%
Time deposits			1,343,548		3.81	%			1,178,352		3.60	%			856,305		2.97	%			639,645		2.10	%			432,110		0.41	%
Total interest-bearing deposits		$	7,701,395		2.20	%		$	6,821,317		1.79	%		$	6,143,097		1.30	%		$	6,101,154		0.74	%		$	6,028,454		0.27	%
Federal funds purchased			217		5.48	%			6,033		5.39	%			48,407		5.35	%			44,334		4.92	%			56,576		4.03	%
Repurchase agreements			82,387		1.59	%			71,516		1.40	%			55,627		1.08	%			71,340		0.08	%			76,334		0.11	%
Short-term borrowings			345,250		5.31	%			540,380		5.34	%			557,818		5.27	%			357,200		4.96	%			177,533		4.28	%
Long-term debt			29,809		3.91	%			29,800		3.91	%			29,773		3.91	%			7,299		2.61	%			3,817		2.18	%
Subordinated debt, net			119,531		5.96	%			109,160		5.86	%			97,081		5.52	%			96,966		5.58	%			97,839		5.46	%
Junior subordinated debt			101,196		7.64	%			101,196		7.54	%			101,196		7.00	%			101,196		6.74	%			101,196		5.58	%
Total interest-bearing liabilities		$	8,379,785		2.45	%		$	7,679,402		2.18	%		$	7,032,999		1.80	%		$	6,779,489		1.14	%		$	6,541,749		0.57	%
Demand deposits			3,535,815						3,498,424						3,316,955						3,502,489						3,658,965
Other liabilities			326,857						287,751						251,511						274,517						290,895
Stockholders' equity			1,373,643						1,305,686						1,217,306						1,190,316						1,164,916
Total liabilities and stockholders' equity		$	13,616,100					$	12,771,263					$	11,818,771					$	11,746,811					$	11,656,525
Interest rate spread					2.34	%					2.45	%					2.62	%					3.12	%					3.45	%
Net interest margin (FTE)¹					3.15	%					3.21	%					3.27	%					3.55	%					3.68	%

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
Twelve Months Ended December 31,	2023								2022
Assets
Short-term interest-bearing accounts		$	126,765	$	6,259		4.94	%		$	440,429	$	3,072		0.70	%
Securities taxable¹			2,377,596		45,176		1.90	%			2,424,925		43,229		1.78	%
Securities tax-exempt^{1 5}			214,053		6,730		3.14	%			233,515		5,070		2.17	%
FRB and FHLB stock			48,641		3,368		6.92	%			27,040		995		3.68	%
Loans^{1 6}			8,803,228		463,290		5.26	%			7,772,962		333,008		4.28	%
Total interest-earning assets		$	11,570,283	$	524,823		4.54	%		$	10,898,871	$	385,374		3.54	%
Other assets			923,850								893,197
Total assets		$	12,494,133							$	11,792,068
Liabilities and stockholders' equity
Money market deposit accounts		$	2,418,450	$	62,475		2.58	%		$	2,447,978	$	4,955		0.20	%
NOW deposit accounts			1,555,414		8,298		0.53	%			1,578,831		2,600		0.16	%
Savings deposits			1,715,749		650		0.04	%			1,829,360		592		0.03	%
Time deposits			1,006,867		33,218		3.30	%			464,912		1,776		0.38	%
Total interest-bearing deposits		$	6,696,480	$	104,641		1.56	%		$	6,321,081	$	9,923		0.16	%
Federal funds purchased			24,575		1,269		5.16	%			14,644		588		4.02	%
Repurchase agreements			70,251		747		1.06	%			69,561		67		0.10	%
Short-term borrowings			450,377		23,592		5.24	%			46,371		1,968		4.24	%
Long-term debt			24,247		925		3.81	%			6,579		161		2.45	%
Subordinated debt, net			105,756		6,076		5.75	%			98,439		5,424		5.51	%
Junior subordinated debt			101,196		7,320		7.23	%			101,196		3,749		3.70	%
Total interest-bearing liabilities		$	7,472,882	$	144,570		1.93	%		$	6,657,871	$	21,880		0.33	%
Demand deposits			3,463,608								3,696,957
Other liabilities			285,310								237,857
Stockholders' equity			1,272,333								1,199,383
Total liabilities and stockholders' equity		$	12,494,133							$	11,792,068
Net interest income (FTE)¹				$	380,253							$	363,494
Interest rate spread							2.61	%							3.21	%
Net interest margin (FTE)¹							3.29	%							3.34	%
Taxable equivalent adjustment				$	2,034							$	1,304
Net interest income				$	378,219							$	362,190

¹The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:

Non-GAAP measures
(unaudited, dollars in thousands)

	2023													2022
		4th Q			3rd Q			2nd Q			1st Q			4th Q
Operating net income
Net income		$	30,446		$	24,606		$	30,072		$	33,658			$	36,121
Acquisition expenses			254			7,917			1,189			618				967
Acquisition-related provision for credit losses			-			8,750			-			-				-
Acquisition-related reserve for unfunded loan commitments			-			836			-			-				-
Impairment of a minority interest equity investment			4,750			-			-			-				-
Securities (gains) losses			(507	)		183			4,641			4,998				217
Adjustment to net income		$	4,497		$	17,686		$	5,830		$	5,616			$	1,184
Adjustment to net income (net of tax)		$	3,435		$	13,730		$	4,525		$	4,341			$	913
Operating net income		$	33,881		$	38,336		$	34,597		$	37,999			$	37,034
Operating diluted earnings per share		$	0.72		$	0.84		$	0.80		$	0.88			$	0.86

		12 Months Ended December 31,
			2023			2022
Operating net income
Net income		$	118,782		$	151,995
Acquisition expenses			9,978			967
Acquisition-related provision for credit losses			8,750			-
Acquisition-related reserve for unfunded loan commitments			836			-
Impairment of a minority interest equity investment			4,750			-
Securities losses			9,315			1,131
Adjustment to net income		$	33,629		$	2,098
Adjustment to net income (net of tax)		$	25,965		$	1,623
Operating net income		$	144,747		$	153,618
Operating diluted earnings per share		$	3.23		$	3.56

	2023													2022
		4th Q			3rd Q			2nd Q			1st Q			4th Q
FTE adjustment
Net interest income		$	99,173		$	94,895		$	89,085		$	95,066			$	99,779
Add: FTE adjustment			669			568			402			395				392
Net interest income (FTE)		$	99,842		$	95,463		$	89,487		$	95,461			$	100,171
Average earning assets		$	12,564,076		$	11,803,043		$	10,983,347		$	10,909,932			$	10,801,115
Net interest margin (FTE)³			3.15	%		3.21	%		3.27	%		3.55	%			3.68	%

		12 Months Ended December 31,
			2023			2022
FTE adjustment
Net interest income		$	378,219		$	362,190
Add: FTE adjustment			2,034			1,304
Net interest income (FTE)		$	380,253		$	363,494
Average earning assets		$	11,570,283		$	10,898,871
Net interest margin (FTE)			3.29	%		3.34	%

Interest income for tax-exempt securities and loans have been adjusted to an 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 (continued)
(unaudited, dollars in thousands)

	2023													2022
		4th Q			3rd Q			2nd Q			1st Q				4th Q
Tangible equity to tangible assets
Total equity		$	1,425,691		$	1,362,821		$	1,210,493		$	1,211,659			$	1,173,554
Intangible assets			402,294			402,745			287,701			288,159				288,545
Total assets		$	13,309,040		$	13,827,628		$	11,890,497		$	11,839,730			$	11,739,296
Tangible equity to tangible assets			7.93	%		7.15	%		7.95	%		7.99	%			7.73	%

	2023													2022
		4th Q			3rd Q			2nd Q			1st Q				4th Q
Return on average tangible common equity
Net income		$	30,446		$	24,606		$	30,072		$	33,658			$	36,121
Amortization of intangible assets (net of tax)			1,599			1,206			344			402				404
Net income, excluding intangibles amortization		$	32,045		$	25,812		$	30,416		$	34,060			$	36,525

Average stockholders' equity		$	1,373,643		$	1,305,686		$	1,217,306		$	1,190,316			$	1,164,916
Less: average goodwill and other intangibles			401,978			350,912			287,974			288,354				288,856
Average tangible common equity		$	971,665		$	954,774		$	929,332		$	901,962			$	876,060
Return on average tangible common equity³			13.08	%		10.73	%		13.13	%		15.31	%			16.54	%

	12 Months Ended December 31,
			2023			2022
Return on average tangible common equity
Net income		$	118,782		$	151,995
Amortization of intangible assets (net of tax)			3,551			1,698
Net income, excluding intangibles amortization		$	122,333		$	153,693

Average stockholders' equity		$	1,272,333		$	1,199,383
Less: average goodwill and other intangibles			332,667			289,238
Average tangible common equity		$	939,666		$	910,145
Return on average tangible common equity			13.02	%		16.89	%

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

³Annualized.

⁴Total 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.