NBT Bancorp Inc. Q3 2020 Earnings Presentation 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 Performance - Net income for the second quarter of 2020 was $31.3 million, a decrease of $5.8 million compared to the second quarter of 2019[166]. - Net income for Q2 2020 was $24.7 million, up 37.5% from $10.4 million in Q1 2020, but down 19% from $30.6 million in Q2 2019[172]. - Diluted earnings per share increased by $0.33 from the first quarter of 2020, but decreased by $0.13 from the second quarter of 2019[166]. - Diluted earnings per share for Q2 2020 was $0.56, compared to $0.23 in Q1 2020 and $0.69 in Q2 2019[172]. - Return on average assets (annualized) was 0.94% for Q2 2020, up from 0.43% in Q1 2020 but down from 1.28% in Q2 2019[172]. - Return on average equity (annualized) was 8.76% for Q2 2020, compared to 3.69% in Q1 2020 and 11.63% in Q2 2019[172]. Loan and Credit Quality - Provision for loan losses for the three months ended June 30, 2020, was $18.8 million, reflecting an increase of $11.6 million from the second quarter of 2019[166]. - The provision for loan losses was $48.5 million for the six months ended June 30, 2020, compared to $13.1 million for the same period in 2019[201]. - The allowance for credit losses totaled $113.5 million at June 30, 2020, representing 1.49% of total loans, up from 1.04% at June 30, 2019[201]. - Nonperforming loans to total loans was 0.36% at June 30, 2020, down from 0.40% at December 31, 2019[203]. - Approximately $115.3 million in potential problem loans were identified at June 30, 2020, up from $84.1 million at December 31, 2019[205]. - 13% of total loans outstanding were in payment deferral programs as of June 30, 2020, with 80% being commercial borrowers[204]. Interest Income and Expenses - Net interest income for Q2 2020 was $80.4 million, an increase of $3.3 million or 4.2% from the previous quarter[176]. - Average interest-earning assets increased by $742.8 million to $9.6 billion in Q2 2020, primarily due to an increase in short-term interest-bearing accounts[176]. - Interest expense decreased by $5.2 million or 42.7% in Q2 2020, with the cost of interest-bearing liabilities down to 0.45%[176]. - The interest rate spread decreased to 3.24% for the six months ended June 30, 2020, compared to 3.34% for the same period in 2019[186]. - The average yield on loans was 4.26% for the six months ended June 30, 2020, down from 4.68% in the same period of 2019[183]. Assets and Deposits - Total assets increased to $10,157.6 million as of June 30, 2020, compared to $9,553.5 million in the same period of 2019, reflecting a growth of 6.3%[183]. - Total loans increased by $491.9 million to $7.6 billion at June 30, 2020 from December 31, 2019, with commercial real estate loans increasing $114.5 million to $2.3 billion[198]. - Total deposits were $8.8 billion at June 30, 2020, up $1.2 billion, or 16.2%, from December 31, 2019[206]. - The Company reported a total interest-earning assets of $9,233.9 million for the six months ended June 30, 2020, compared to $8,747.3 million in the same period of 2019, indicating a growth of 5.6%[183]. Noninterest Income and Expenses - Noninterest income for the three months ended June 30, 2020, was $35.0 million, a decrease of $0.4 million, or 1.2%, from the prior quarter, but an increase of $0.8 million, or 2.2%, from the second quarter of 2019[188]. - Noninterest income for the six months ended June 30, 2020, was $70.4 million, up $2.4 million, or 3.5%, from the same period in 2019[189]. - Total noninterest expense for the six months ended June 30, 2020, was $136.2 million, an increase from $134.7 million in the same period of 2019, reflecting a rise of 1.1%[190]. - Noninterest expense for the three months ended June 30, 2020 was $65.3 million, down $5.5 million, or 7.8%, from the prior quarter[191]. Capital and Liquidity - Stockholders' equity was $1.1 billion, representing 10.53% of total assets, down from 11.53% as of December 31, 2019, with net income of $35.1 million for the six months ending June 30, 2020[210]. - The Company maintained a Tier 1 leverage ratio of 9.44% and a total risk-based capital ratio of 15.15% as of June 30, 2020, both exceeding regulatory minimums[214]. - The Basic Surplus measurement for liquidity was 24.1% of total assets, approximately $2.6 billion, up from 15.8% or $1.5 billion at December 31, 2019[226]. - Federal Home Loan Bank advances were $328.3 million as of June 30, 2020, with additional borrowing capacity of approximately $1.4 billion[227]. - The Company has implemented enhanced liquidity monitoring in response to the COVID-19 pandemic, focusing on maintaining a strong liquidity position[228]. COVID-19 Impact - The COVID-19 pandemic has significantly impacted the company's operations and financial condition, with ongoing uncertainty regarding its effects[167]. - The company adopted the CECL accounting methodology, which has influenced the estimated impact of the COVID-19 pandemic on expected credit losses[163]. - The company enhanced digital communication channels significantly, including dedicated webpages and social media content[173]. - 90% of non-branch employees were working remotely, with a transition back to onsite work beginning on July 13[173]. Shareholder Actions - The Company issued $100.0 million of subordinated notes with a fixed interest rate of 5.00% and a floating rate starting in 2025, netting $98.0 million after issuance costs[209]. - The Company repurchased 263,507 shares at an average price of $30.25, with 736,493 shares remaining available for repurchase under the current plan[211]. - The Board approved a cash dividend of $0.27 per share for Q3 2020, to be paid on September 15, 2020[212].

Financial Data and Key Metrics Changes - Net income for the second quarter was $24.7 million, or $0.56 per share, after a CECL provision and charge-offs [8] - Pre-provision net revenue (PPNR) was nearly $51 million, up 13% linked quarter and 8% year-over-year, with a PPNR return on average assets at just over 190 basis points [12] - Tangible book value per share increased by 2.6%, and the CET1 ratio improved by 44 basis points compared to the first quarter [13] Business Line Data and Key Metrics Changes - End of period loans increased by over $380 million, driven by $510 million in net PPP loans; excluding PPP, core loans decreased by $130 million or 2% [14] - Non-interest income decreased by $1.4 million from the previous quarter but remained stable year-over-year, with non-spread revenue constituting 30% of total revenue [23] Market Data and Key Metrics Changes - Deposits stood at $8.8 billion, up nearly $1 billion for the quarter, with non-interest bearing deposits growing by approximately $685 million [18] - The cost of interest-bearing deposits decreased by 50% from first quarter levels to 34 basis points [19] Company Strategy and Development Direction - The company plans to deploy excess cash into more productive earning assets over the next year and evaluate fee-based acquisition opportunities [34] - The management expressed optimism about organic growth opportunities in consumer and commercial lending, particularly in New England [51] Management Comments on Operating Environment and Future Outlook - Management noted that while the current economic environment is challenging, they are cautiously optimistic about a return to normal business operations [16] - The company expects some increase in charge-offs in the second half of the year, particularly as deferrals come to an end [71] Other Important Information - The company raised $100 million in subordinated debt to enhance capital flexibility [8] - Total deferrals stood at $622 million, or 8.8% of total loans, down from close to 15% [35] Q&A Session Summary Question: Discussion on the $10 billion threshold and loan growth strategies - Management acknowledged that crossing the $10 billion threshold allows for more aggressive loan growth strategies, particularly in consumer and commercial lending [50][51] Question: Concerns about due diligence in the current environment for M&A - Management indicated that while it is early to fully understand potential partners, they are focused on relationship building and smaller acquisition opportunities [54][55] Question: Insights on operating expenses and future trends - Management noted that while there was a reduction in operating expenses, they expect some normalization as branches reopen fully [62][63] Question: Liquidity deployment and organic loan growth expectations - Management highlighted that they have seen significant deposit inflows and are considering securities as a redeployment option, while also managing loan growth cautiously [66][67] Question: Projections for net charge-offs and deferral trends - Management expects an increase in charge-offs in the second half of the year, particularly as deferrals end, but noted strong return-to-pay rates among deferrals [71][72]

NBT Bancorp Inc. Q2 2020 Earnings Presentation 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________. COMMISSION FILE NUMBER 0-14703 NBT BANCORP INC. (Exact Name of Registrant as Specified in its Charter) Delaware 16-1268674 (State of I ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (MARK ONE) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ________ TO ________. COMMISSION FILE NUMBER: 0-14703 NBT BANCORP INC. (Exact name of registrant as specified in its charter) Indicate by check mark if the registran ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________. COMMISSION FILE NUMBER 0-14703 NBT BANCORP INC. (Exact Name of Registrant as Specified in its Charter) Delaware 16-1268674 (State ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________. COMMISSION FILE NUMBER 0-14703 NBT BANCORP INC. (Exact Name of Registrant as Specified in its Charter) Delaware 16-1268674 (State of In ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________. COMMISSION FILE NUMBER 0-14703 NBT BANCORP INC. (Exact Name of Registrant as Specified in its Charter) DELAWARE 16-1268674 (State of I ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2018 COMMISSION FILE NUMBER: 0-14703 NBT BANCORP INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) Delaware 16-1268674 52 SOUTH BROAD STREET NORWICH, NEW YORK 13815 (Address of principal executive of ...