Earnings Presentation First Quarter 2025 NBTB Forward-Looking Statements This presentation 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 dif ...

Financial Data and Key Metrics Changes - NBT Bancorp reported net income of $36.7 million or $0.77 per share, with operating earnings per share at $0.80, an increase of $0.03 compared to the prior quarter [10] - Revenues increased by 4.4% from the prior quarter and nearly 12% from the same quarter last year, driven by improvements in net interest income and fee-based revenues [10] - Operating return on assets was 1.11%, return on equity was 10%, and return on tangible common equity (ROTCE) was 14% [4][5] Business Line Data and Key Metrics Changes - Total loans increased by $40 million or 1.8%, with a diversified portfolio comprising 53% commercial and 47% consumer loans [13] - Non-interest income represented 31% of total revenues, with fee income increasing by 12.7% compared to the linked fourth quarter [18] - Net interest margin increased by 10 basis points to 3.44%, primarily due to a decrease in the cost of interest-bearing deposits [15][16] Market Data and Key Metrics Changes - Total deposits rose to $11.7 billion, up $162 million from the linked fourth quarter, mainly due to seasonal municipal deposits [14] - The deposit portfolio consists of 58% no and low-cost checking and savings accounts, while 42% is held in time and money market accounts [14] Company Strategy and Development Direction - The company is focused on supporting the semiconductor chip corridor in upstate New York, with plans to enhance financial services in this growing ecosystem [6][7] - The merger with Evans Bancorp is expected to expand the company's footprint in Buffalo and Rochester, adding over 200 employees and more than 40,000 customers [8][9] Management's Comments on Operating Environment and Future Outlook - Management noted that while macro uncertainties exist, customer pipelines remain stable across various markets [29][31] - The company anticipates modest loan growth of 2% to 3% for the upcoming quarter, down from a previous estimate of 3% to 5% due to macroeconomic uncertainties [58] Other Important Information - Net charge-offs to average loans were 27 basis points, with a significant write-down of a commercial real estate loan included in this figure [21][60] - The company has added over $100 million to shareholders' equity in the past fifteen months while maintaining a strong capital position [6] Q&A Session Summary Question: Credit demand in the market - Management indicated that pipelines are good and consistent across their footprint, with no significant project abandonment despite macro uncertainties [29][31] Question: Supply of credit and competition - Management noted that competition remains reasonable and disciplined, with some smaller banks occasionally competing outside of comfort levels [32][33] Question: Opportunities from the Evans merger - Management expressed confidence that the merger will allow Evans bankers to leverage a larger balance sheet to expand client relationships and drive loan growth [34][36] Question: Impact of the CHIPS Act on projects - Management confirmed that while there are contractual obligations related to the CHIPS Act, the overall sentiment for semiconductor manufacturing in the U.S. remains strong [44][45] Question: Fee income and loan growth expectations - Management provided insights on fee income sensitivity to market conditions and adjusted loan growth expectations for the second quarter [50][58] Question: Charge-offs and credit quality - Management indicated that charge-offs are expected to be primarily from auto and residential solar portfolios, with commercial charge-offs being more episodic [110] Question: Overall M&A appetite - Management stated that the focus remains on the Evans acquisition, but they are open to discussions with other community banks for future opportunities [101][102]

Financial Data and Key Metrics Changes - The company reported net income of $36.7 million or $0.77 per share for the first quarter, with operating earnings per share at $0.80, an increase of $0.03 compared to the prior quarter [7] - Operating return on assets was 1.11%, return on equity was 10%, and ROTCE was 14%, showing continued improvement over linked and prior year quarters [4] - Revenues increased by 4.4% from the prior quarter and almost 12% from the first quarter of the prior year, driven by improvements in net interest income and fee-based revenues [7] Business Line Data and Key Metrics Changes - Non-interest income accounted for 31% of total revenues, reflecting productive improvements in revenue and earnings generation across non-banking businesses [5][11] - Net interest income for the first quarter was $107.2 million, an increase of $1.1 million from the linked quarter and $12 million from the first quarter of the prior year [10] - Total deposits increased by $162 million to $11.7 billion, primarily due to seasonal municipal deposits [8] Market Data and Key Metrics Changes - The total loan portfolio remained diversified, with 53% in commercial relationships and 47% in consumer loans, totaling $10 billion [8] - The net interest margin increased by 10 basis points to 3.44%, driven by a decrease in the cost of interest-bearing deposits [9] Company Strategy and Development Direction - The company is focused on growth strategies in Upstate New York's semiconductor chip corridor, supporting customers in the growing ecosystem around semiconductor and advanced electronics manufacturing [5] - The merger with Evans Bancorp is expected to enhance the company's ability to provide financial services in the Buffalo and Rochester markets, adding over 200 employees and more than 40,000 customers [6] Management's Comments on Operating Environment and Future Outlook - Management noted that pipelines for credit demand are good across their markets, although macro uncertainties are causing some caution among clients [21] - The company anticipates modest loan growth of 2% to 3% for the upcoming quarters, down from a previous expectation of 3% to 5% [40] Other Important Information - The tangible book value per share reached an all-time high of $24.74, up $0.86 from the end of the previous quarter [8] - Net charge-offs to average loans were 27 basis points, with a significant write-down of a commercial real estate loan included [13] Q&A Session Summary Question: What are the high-level thoughts on the demand for credit in your markets? - Management indicated that pipelines are good and consistent across their footprint, with macro uncertainties causing some caution but no abandonment of projects [21] Question: How is competition affecting credit supply and pricing? - Generally, competition remains reasonable and disciplined, with some episodic situations in smaller markets [23] Question: What opportunities do you see with the Evans merger? - The merger is expected to allow Evans bankers to leverage a larger balance sheet to expand client relationships and drive loan growth [25] Question: How do you view the impact of the CHIPS Act on projects like Micron? - Management believes that while there may be adjustments, the overall intent to source semiconductor manufacturing in the U.S. remains strong [32] Question: What is the outlook for fee income and loan growth in the second quarter? - Fee income is expected to remain stable, with some seasonal increases, while loan growth is anticipated to be modest due to macro uncertainties [40] Question: What is the expectation for charge-offs in the coming quarters? - Charge-offs are likely to be led by auto and residential solar portfolios, with commercial charge-offs being more episodic [77]

Core Insights - NBT Bancorp reported revenue of $155.31 million for the quarter ended March 2025, marking a year-over-year increase of 10.5% and exceeding the Zacks Consensus Estimate by 2.96% [1] - The earnings per share (EPS) for the same period was $0.80, up from $0.68 a year ago, representing a surprise of 5.26% over the consensus estimate of $0.76 [1] Financial Performance Metrics - The net interest margin (FTE) was reported at 3.4%, matching the average estimate from two analysts [4] - The average balance of total interest-earning assets was $12.70 billion, slightly below the estimated $12.72 billion [4] - Net charge-offs to average loans stood at 0.3%, higher than the average estimate of 0.2% [4] - Total noninterest income reached $47.45 million, surpassing the average estimate of $44.37 million [4] - Net interest income (FTE) was reported at $107.86 million, exceeding the average estimate of $106.48 million [4] Stock Performance - NBT shares have returned -4% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Performance - Net income for Q1 2025 was $36.7 million, or $0.77 per diluted share, up from $33.8 million, or $0.71 per diluted share in Q1 2024[4] - Net income for Q1 2025 was $36,745,000, representing an increase of 2.1% from $36,005,000 in Q4 2024[26] - Basic earnings per share for Q1 2025 was $0.78, up from $0.76 in Q4 2024[26] - Operating diluted earnings per share for Q1 2025 was $0.80, compared to $0.77 in Q4 2024[28] - Return on average assets for Q1 2025 is 1.08%, up from 1.04% in Q4 2024[23] - Return on average tangible common equity for Q1 2025 was 13.63%, an increase from 13.36% in Q4 2024[29] Income and Revenue - Net interest income on a fully taxable equivalent basis was $107.2 million, an increase of $1.1 million from the prior quarter, and up $12.0 million, or 12.7%, from Q1 2024[6] - Noninterest income was $47.6 million, an increase of 12.7% from the fourth quarter of 2024, and up 10.1% from Q1 2024[12] - Total interest, fee and dividend income for Q1 2025 was $154,404,000, a decrease of 2.1% from Q4 2024's $157,737,000[26] - Net interest income after provision for loan losses for Q1 2025 was $99,669,000, compared to $103,896,000 in Q4 2024, reflecting a decrease of 4.3%[26] - Noninterest income increased to $47,452,000 in Q1 2025, up 11.8% from $42,426,000 in Q4 2024[26] Assets and Loans - Total assets increased to $13.86 billion in Q1 2025 from $13.79 billion in Q4 2024[23] - Total loans were $9.98 billion as of March 31, 2025, up $10.4 million, or 0.4% annualized, from December 31, 2024[8] - Net loans reached $9.86 billion in Q1 2025, slightly up from $9.85 billion in Q4 2024[23] - Total loan net charge-offs increased to $6,554 thousand in Q1 2025 from $5,709 thousand in Q4 2024, indicating a rise in charge-offs[24] - Total nonperforming loans decreased to $47,691 thousand in Q1 2025 from $51,617 thousand in Q4 2024, showing a reduction of 7.5%[24] Deposits and Equity - Total deposits were $11.71 billion, an increase of $161.8 million, or 1.4%, from December 31, 2024[8] - Total deposits increased to $11,708,511 thousand in Q1 2025 from $11,546,761 thousand in Q4 2024, reflecting a growth of 1.4%[25] - The total stockholders' equity increased to $1,565,775 thousand in Q1 2025 from $1,526,141 thousand in Q4 2024, reflecting a positive trend in equity growth[25] Capital Ratios - The CET1 capital ratio was 12.12% and the leverage ratio was 10.39% as of March 31, 2025[17] - Common equity tier 1 capital ratio improved to 12.12% in Q1 2025 from 11.93% in Q4 2024[23] - Tangible equity ratio for Q1 2025 is 8.68%, up from 8.42% in Q4 2024[23] - Tangible book value per share increased to $24.74 at March 31, 2025, from $23.88 at December 31, 2024[17] Tax and Expenses - The effective tax rate for Q1 2025 was 22.2%, up from 21.7% in Q1 2024[13] - Total noninterest expense for Q1 2025 was $99,900,000, slightly down from $100,775,000 in Q4 2024[26] - Acquisition expenses for Q1 2025 totaled $1,221,000, compared to $988,000 in Q4 2024[28] Mergers and Acquisitions - The company plans to complete its merger with Evans Bancorp, Inc. on May 2, 2025, which will add over 200 bankers and 18 locations[5]

Company Overview - NBT Bancorp (NBTB) is headquartered in Norwich and operates in the Finance sector, with a year-to-date stock price change of -16.98% [3] - The company currently pays a dividend of $0.34 per share, resulting in a dividend yield of 3.43%, which is higher than the Banks - Northeast industry's yield of 2.74% and the S&P 500's yield of 1.65% [3] Dividend Performance - NBT Bancorp's annualized dividend of $1.36 has increased by 3% from the previous year, with a historical average annual increase of 5.42% over the last 5 years [4] - The company's current payout ratio is 46%, indicating that it pays out 46% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for NBT Bancorp's earnings per share for 2025 is $3.48, reflecting a year-over-year growth rate of 18.37% [5] Investment Considerations - NBT Bancorp is viewed as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]

Core Viewpoint - NBT Bancorp Inc. will announce its financial results for Q1 2025 on April 24, 2025, and will host a conference call on April 25, 2025, to discuss these results [1]. Company Overview - NBT Bancorp Inc. is a financial holding company based in Norwich, NY, with total assets of $13.79 billion as of December 31, 2024 [3]. - The company operates primarily through NBT Bank, N.A., which is a full-service community bank with 157 locations across New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine, and Connecticut [3]. - NBT Bancorp also includes EPIC Retirement Plan Services, a national benefits administration firm, and NBT Insurance Agency, LLC, a full-service insurance agency [3].

Company Overview - NBT Bancorp (NBTB) is a financial holding company headquartered in Norwich, operating in the Finance sector [3] - The stock has experienced a price decline of 9.17% since the beginning of the year [3] Dividend Information - NBT Bancorp currently pays a dividend of $0.34 per share, resulting in a dividend yield of 3.14%, which is higher than the Banks - Northeast industry's yield of 2.89% and the S&P 500's yield of 1.57% [3] - The annualized dividend of $1.36 has increased by 3% from the previous year, with a historical average annual increase of 5.42% over the past five years [4] - The company's current payout ratio is 46%, indicating that it distributes 46% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate predicts earnings of $3.69 per share, reflecting a year-over-year growth rate of 25.51% [5] Investment Appeal - NBT Bancorp is considered an attractive dividend investment and a compelling opportunity, holding a Zacks Rank of 2 (Buy) [7]

Loan Portfolio and Credit Risk - As of December 31, 2024, approximately 53% of the Company's loan portfolio consisted of commercial and industrial, agricultural, commercial construction, and CRE loans, which generally expose the Company to greater risk of non-payment and loss compared to residential real estate loans [126]. - The Company's allowance for credit losses may not be sufficient to cover actual loan losses, which could adversely affect its financial condition and results of operations [128]. - A significant portion of the Company's loan portfolio was secured by real estate, which may expose it to environmental liabilities [145]. Financial Condition and Regulatory Compliance - The Company had total assets of approximately $13.79 billion as of December 31, 2024, which subjects it to enhanced supervisory requirements under the Dodd-Frank Act [140]. - The Company is subject to extensive government regulation, which may interfere with its business operations and negatively impact financial results [138]. - Compliance with extensive federal and state regulations may increase operational costs and impact financial results [138]. Competition and Market Risks - The Company faces strong competition from various financial institutions, which could adversely affect its performance and growth [129]. - The market price of the Company's common stock may decline post-Merger if expected benefits are not realized [160]. Liquidity and Operational Management - Liquidity management is crucial for the Company, with a focus on maintaining a basic surplus measure above the minimum policy level of 5% to meet cash flow obligations [132]. - The Company relies on third-party vendors for key business operations, and any issues with these vendors could negatively impact its ability to deliver services [135]. Mergers and Acquisitions - The Merger with Evans may lead to challenges in integration and realization of anticipated synergies, affecting operational efficiency [165]. - The Company expects to incur substantial costs related to the Merger, which could adversely impact future earnings per share if not completed [166]. - The Merger Agreement may be terminated, which could negatively impact the Company's stock price and future business [163]. - The integration of the Company and Evans is expected to be complex and time-consuming, potentially diverting management's focus from existing customers and strategic opportunities [165]. - Unexpected transaction costs or future operating expenses could materially affect the financial condition of the combined company, potentially leading to a dilutive effect on EPS [167]. - Estimates regarding the future value of the combined company, including projected revenue and earnings expectations, are inherently uncertain and subject to various risks [168]. Cybersecurity and Operational Risks - The Company faces operational risks related to cybersecurity, which could materially harm its financial condition and result in significant costs [151]. - The Company may experience financial losses or reputational harm due to fraud, despite substantial resources devoted to prevention [156]. - The Company is exposed to risks associated with technological changes, including the need to adapt to AI and other innovations to remain competitive [157]. Legal and Environmental Liabilities - The Company is involved in legal proceedings that may result in costs exceeding established reserves, potentially impacting financial results [150]. - Environmental liabilities associated with properties in the loan portfolio could result in significant financial loss for the Company [145]. Shareholder Rights and Dividends - The Company has no preemptive rights for future stock issuances, which could dilute existing shareholders' equity [159]. - Following the merger, the company may not maintain current dividend rates due to various factors including cash flow and board discretion [169]. - Decisions regarding future dividends will be at the discretion of the Board, which can change dividend practices at any time [170]. Management and Personnel Risks - The Company relies heavily on its executive management team, and the loss of key personnel could negatively impact operations [172].

Company Overview - NBT Bancorp (NBTB) is headquartered in Norwich and operates in the Finance sector, with a stock price change of 0% since the start of the year [3] - The company currently pays a dividend of $0.34 per share, resulting in a dividend yield of 2.85%, which is higher than the Banks - Northeast industry's yield of 2.51% and the S&P 500's yield of 1.53% [3] Dividend Performance - NBT Bancorp's current annualized dividend of $1.36 has increased by 3% from the previous year, with a historical average annual increase of 5.42% over the past five years [4] - The company's payout ratio stands at 46%, indicating that it distributes 46% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for NBT Bancorp's earnings per share for 2025 is $3.69, reflecting a year-over-year growth rate of 25.51% [5] Investment Appeal - NBT Bancorp is viewed as a compelling investment opportunity due to its attractive dividend yield and strong earnings growth potential, supported by a Zacks Rank of 2 (Buy) [7]