NBTB NBT Bancorp Inc

NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and six months ended June 30, 2024.

Net income for the three months ended June 30, 2024 was $32.7 million, or $0.69 per diluted common share, compared to $30.1 million, or $0.70 per diluted common share, for the three months ended June 30, 2023, and $33.8 million, or $0.71 per diluted common share, for the first quarter of 2024. Operating diluted earnings per share1, a non-GAAP measure, which excludes acquisition expenses and securities gains (losses), net of tax, was $0.69 for the second quarter of 2024, compared to $0.80 for the second quarter of 2023 and $0.68 for the first quarter of 2024.

CEO Comments

“Our operating performance for the second quarter and first half of 2024 continues to reflect the strength of our balance sheet, our diversified business model, and the collaboration of our team,” said NBT President and CEO Scott A. Kingsley. “During the second quarter, we grew loans $166 million across our footprint and improved our net interest margin incrementally. Noninterest income continued to be a core strength, making up 31% of total revenues for the second quarter. We are also pleased to announce the Board of Directors approved a third quarter cash dividend of $0.34, an increase in the quarterly cash dividend of 6.3%. This is our twelfth consecutive year of annual dividend increases, demonstrating our commitment to providing consistent and favorable long-term returns to our shareholders.”

Second Quarter 2024 Financial Highlights

Net Income	Net income of $32.7 million and diluted earnings per share of $0.69
Net Interest Income / NIM	Net interest income on a fully taxable equivalent (“FTE”) basis was $97.8 million, up $2 million from the prior quarter1 Net interest margin (“NIM”) on an FTE basis was 3.18%1, up 4 basis points (“bps”) from the prior quarter Included in FTE net interest income was $2.6 million of acquisition-related net accretion, which was consistent with the first quarter of 2024 Earning asset yields of 4.92% were up 8 bps from the prior quarter Total cost of funds of 1.85% was up 6 bps from the prior quarter
Noninterest Income	Noninterest income was at a record level of $43.3 million, or 30.8% of total revenues, excluding net securities gains (losses)
Loans and Credit Quality	Period end total loans of $9.85 billion as of June 30, 2024, up $203.6 million, or 4.2% annualized, from December 31, 2023 Net charge-offs to average loans was 0.15% annualized Nonperforming loans to total loans were 0.39%, consistent with the prior quarter Allowance for loan losses to total loans was 1.22%
Deposits	Deposits were $11.27 billion as of June 30, 2024, up $302.5 million, or 2.8%, from December 31, 2023 Total cost of deposits was 1.68% for the second quarter of 2024, up 7 bps from the first quarter of 2024 Full cycle to-date deposit beta of 31% Composition of total deposits is diverse and granular with over 562,000 accounts with an average per account balance of $20,052
Capital	Stockholders’ equity was $1.46 billion as of June 30, 2024 Tangible book value per share2 was $22.54 at June 30, 2024 Tangible equity to assets of 8.11%1 CET1 ratio of 11.70%; Leverage ratio of 10.16%

Loans

• Period end total loans were $9.85 billion at June 30, 2024, $9.69 billion at March 31, 2024 and $9.65 billion at December 31, 2023.
• Period end total loans increased $203.6 million from December 31, 2023. Total commercial loans increased $201.0 million to $5.18 billion; and total consumer loans increased $2.6 million to $4.67 billion. Excluding the other consumer and residential solar portfolios that are in a planned run-off status, period end loans increased $294.9 million, or 6.9% annualized.
• Commercial line of credit utilization rate was 23% at June 30, 2024, compared to 21% at March 31, 2024 and 23% at June 30, 2023.

Deposits

• Total deposits at June 30, 2024 increased $302.5 million to $11.27 billion, compared to $10.97 billion at December 31, 2023. The increase in deposits was primarily due to higher consumer deposit balances and accounts and the inflow of seasonal municipal deposits. The Company continued to experience some incremental migration from noninterest bearing and low interest checking and savings accounts into higher cost money market and time deposit instruments.
• The loan to deposit ratio was 87.4% at June 30, 2024, compared to 88.0% at December 31, 2023.

Net Interest Income and Net Interest Margin

• Net interest income for the second quarter of 2024 was $97.2 million, which was up $2.0 million, or 2.1%, from the first quarter of 2024 and up $8.1 million, or 9.1%, from the second quarter of 2023. The increase in net interest income from the first quarter of 2024 resulted primarily from the increase in average loans and the interest earned on those balances, partially offset by the increase in the cost of deposits.
• The NIM on an FTE basis for the second quarter of 2024 was 3.18%, an increase of 4 bps from the first quarter of 2024, driven by an increase in average earning asset yields and lower average balances of short-term borrowings partly offset by an increase in the cost of interest-bearing deposits and a decrease in the average balance of noninterest-bearing demand deposit accounts. The NIM on an FTE basis decreased 9 bps from the second quarter of 2023 due to the increase in the cost of interest-bearing deposits, partially offset by lower average balances of short-term borrowings, higher earning asset yields and the impact of acquisition-related net accretion.
• Earning asset yields for the three months ended June 30, 2024 increased 8 bps from the prior quarter to 4.92% and increased 50 bps from the same quarter in the prior year. Loan yields for the three months ended June 30, 2024 increased 9 bps from the prior quarter to 5.63% and increased 46 bps from the same quarter in the prior year. Average earning assets increased $94.3 million, or 0.8%, from the first quarter of 2024 due to organic loan growth. Average earning assets grew $1.38 billion, or 12.6%, from the second quarter of 2023 due to organic loan growth and the Salisbury Bancorp, Inc. (“Salisbury”) acquisition, which was completed in August 2023.
• Total cost of deposits, including noninterest bearing deposits, was 1.68% for the second quarter of 2024, an increase of 7 bps from the prior quarter and an increase of 83 bps from the same period in the prior year. For the month of June, the total cost of deposits was 1.70%.
• Total cost of funds for the three months ended June 30, 2024 was 1.85%, up 6 bps from the prior quarter and up 63 bps from the second quarter of 2023. For the month of June, the total cost of funds was 1.85%.

Asset Quality and Allowance for Loan Losses

• Net charge-offs to total average loans for the second quarter of 2024 was 15 bps compared to 19 bps in the prior quarter. Net charge-offs for the portfolios in a planned run-off status represented the majority of total net charge-offs for the quarter.
• Nonperforming assets to total assets were 0.28% for each of the last three quarter-ends.
• Provision expense for the three months ended June 30, 2024 was $8.9 million, compared to $5.6 million for the first quarter of 2024. The increase in provision expense from the prior quarter was primarily due to providing for the second quarter’s loan growth, changes in model assumptions, including the extension of the expected duration of the portfolio, and a specific reserve related to a commercial relationship placed on nonaccrual in the fourth quarter of 2023.
• The allowance for loan losses was $120.5 million, or 1.22% of total loans, at June 30, 2024, compared to $115.3 million, or 1.19% of total loans, at March 31, 2024 and $114.4 million, or 1.19% of total loans, at December 31, 2023.
• The reserve for unfunded loan commitments was $4.3 million at June 30, 2024, compared to $4.7 million at March 31, 2024 and $5.1 million at December 31, 2023.

Noninterest Income        

• Total noninterest income, excluding securities gains (losses), was $43.3 million for the three months ended June 30, 2024, up $0.1 million, or 0.3%, from the first quarter of 2024, and up $6.6 million, or 18.1%, from the second quarter of 2023.
• Retirement plan administration fees were up $0.5 million from the prior quarter and were up $3.1 million from the second quarter of 2023. The increase from the prior quarter was due to organic growth, positive market performance and higher activity based fees. The increase from the second quarter of 2023 included the impact of the acquisition of Retirement Direct, LLC on July 1, 2023, organic growth and higher market levels.
• Wealth management fees were up $0.5 million from the prior quarter and were up $1.9 million from the second quarter of 2023. The increase from the prior quarter was driven by organic growth and favorable market performance. The increase from the second quarter of 2023 was driven by the addition of Salisbury revenues, organic growth and market performance.
• Insurance revenues decreased $0.5 million from the seasonally high first quarter of 2024 and increased 7.7% from the prior year due to solid organic growth.

Noninterest Expense        

• Total noninterest expense was $89.6 million for the second quarter of 2024, compared to $91.8 million for the first quarter of 2024 and $78.8 million for the second quarter of 2023. Total noninterest expense, excluding $1.2 million of acquisition expenses in the second quarter of 2023, decreased 2.4% compared to the previous quarter and increased 15.4% from the second quarter of 2023.
• Salaries and benefits decreased 0.6% from the prior quarter driven by seasonally higher payroll taxes and stock-based compensation expenses in the first quarter of 2024. These decreases were partially offset by a full quarter of merit pay increases, which were effective in March, and higher medical costs. The 18.3% increase from the second quarter of 2023 was driven by the impact of the Salisbury acquisition, merit pay increases, higher medical and other benefit costs.
• Technology and data services decreased from the prior quarter primarily due to cost savings from various efficiency initiatives.
• Occupancy costs decreased from the prior quarter due to lower seasonal costs, including utilities, and increased from the second quarter of 2023 driven by additional expenses from the Salisbury acquisition.
• Amortization of intangible assets were consistent with the first quarter and increased $1.7 million from the second quarter of 2023 primarily due to the amortization of intangible assets related to the Salisbury acquisition.

Income Taxes

• The effective tax rate was 22.0% for the second quarter of 2024 which was up from 21.7% for the first quarter of 2024 and down from 22.4% for the second quarter of 2023.

Capital

• Tangible common equity to tangible assets1 was 8.11% at June 30, 2024. Tangible book value per share2 was $22.54 at June 30, 2024, $22.07 at March 31, 2024 and $21.55 at June 30, 2023.
• Stockholders’ equity increased $36.3 million from December 31, 2023 driven by net income generation of $66.5 million, partially offset by dividends declared of $30.2 million and a $2.0 million increase in accumulated other comprehensive loss driven by the change in the fair value of securities available for sale.
• June 30, 2024, CET1 capital ratio of 11.70%, leverage ratio of 10.16% and total risk-based capital ratio of 14.88%.

Dividend

• The Board of Directors approved a third-quarter cash dividend of $0.34 per share at a meeting held earlier today. The dividend represents a $0.02 per quarter, or 6.3%, increase over the dividend paid in the third quarter of 2023. This is the Company’s twelfth consecutive year of annual dividend increases. The dividend will be paid on September 13, 2024 to stockholders of record as of August 30, 2024.

Stock Repurchase

• The Company purchased 5,700 shares of its common stock during the second quarter of 2024 at an average price of $33.02 per share under its previously announced share repurchase program. 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. As of June 30, 2024, there were 1,992,400 shares available for repurchase under this plan.

Conference Call and Webcast

The Company will host a conference call at 10:00 a.m. (Eastern) Tuesday, July 23, 2024, to review the second quarter 2024 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 $13.50 billion at June 30, 2024. 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 154 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 https://www.nbtbank.com/Insurance.

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 rates, 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 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, and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (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 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; and (20) 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.

Contact:		Scott A. Kingsley, President and CEO
		Annette L. Burns, Executive Vice President and CFO
		NBT Bancorp Inc.
		52 South Broad Street
		Norwich, NY 13815
		607-337-6589

NBT Bancorp Inc. and Subsidiaries
Selected Financial Data
(unaudited, dollars in thousands except per share data)
		2024						2023
	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Profitability (reported)
Diluted earnings per share	$	0.69		$	0.71		$	0.64		$	0.54		$	0.70
Weighted average diluted common shares outstanding		47,382,814			47,370,145			47,356,899			45,398,937			43,126,498
Return on average assets3		0.98	%		1.02	%		0.89	%		0.76	%		1.02	%
Return on average equity3		9.12	%		9.52	%		8.79	%		7.48	%		9.91	%
Return on average tangible common equity1 3		13.23	%		13.87	%		13.08	%		10.73	%		13.13	%
Net interest margin1 3		3.18	%		3.14	%		3.15	%		3.21	%		3.27	%
	6 Months Ended June 30,
		2024			2023
Profitability (reported)
Diluted earnings per share	$	1.40		$	1.48
Weighted average diluted common shares outstanding		47,381,054			43,129,259
Return on average assets3		1.00	%		1.09	%
Return on average equity3		9.32	%		10.68	%
Return on average tangible common equity1 3		13.55	%		14.20	%
Net interest margin1 3		3.16	%		3.41	%
		2024						2023
	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Profitability (operating)
Diluted earnings per share1	$	0.69		$	0.68		$	0.72		$	0.84		$	0.80
Return on average assets1 3		0.98	%		0.97	%		0.99	%		1.19	%		1.17	%
Return on average equity1 3		9.14	%		9.04	%		9.79	%		11.65	%		11.40	%
Return on average tangible common equity1 3		13.26	%		13.20	%		14.49	%		16.43	%		15.08	%
	6 Months Ended June 30,
		2024			2023
Profitability (operating)
Diluted earnings per share1	$	1.37		$	1.68
Return on average assets1 3		0.98	%		1.24	%
Return on average equity1 3		9.09	%		12.16	%
Return on average tangible common equity1 3		13.23	%		16.15	%
		2024						2023
	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Balance sheet data
Short-term interest-bearing accounts	$	35,207		$	156,632		$	31,378		$	459,296		$	31,878
Securities available for sale		1,439,445			1,418,471			1,430,858			1,399,032			1,453,926
Securities held to maturity		878,909			890,863			905,267			914,520			912,876
Net loans		9,733,847			9,572,777			9,536,313			9,552,774			8,257,724
Total assets		13,501,909			13,439,199			13,309,040			13,827,628			11,890,497
Total deposits		11,271,459			11,195,289			10,968,994			11,401,452			9,529,919
Total borrowings		476,082			518,190			637,387			740,603			880,518
Total liabilities		12,039,954			11,997,784			11,883,349			12,464,807			10,680,004
Stockholders' equity		1,461,955			1,441,415			1,425,691			1,362,821			1,210,493
Capital
Equity to assets		10.83	%		10.73	%		10.71	%		9.86	%		10.18	%
Tangible equity ratio1		8.11	%		7.98	%		7.93	%		7.15	%		7.95	%
Book value per share	$	31.00		$	30.57		$	30.26		$	28.94		$	28.26
Tangible book value per share2	$	22.54		$	22.07		$	21.72		$	20.39		$	21.55
Leverage ratio		10.16	%		10.09	%		9.71	%		10.23	%		10.51	%
Common equity tier 1 capital ratio		11.70	%		11.68	%		11.57	%		11.31	%		12.29	%
Tier 1 capital ratio		12.61	%		12.61	%		12.50	%		12.23	%		13.35	%
Total risk-based capital ratio		14.88	%		14.87	%		14.75	%		14.45	%		15.50	%
Common stock price (end of period)	$	38.60		$	36.68		$	41.91		$	31.69		$	31.85

NBT Bancorp Inc. and Subsidiaries
Asset Quality and Consolidated Loan Balances
(unaudited, dollars in thousands)
		2024						2023
	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Asset quality
Nonaccrual loans	$	34,755		$	35,189		$	34,213		$	20,736		$	16,931
90 days past due and still accruing		3,333			2,600			3,661			3,528			2,755
Total nonperforming loans		38,088			37,789			37,874			24,264			19,686
Other real estate owned		74			-			-			-			179
Total nonperforming assets		38,162			37,789			37,874			24,264			19,865
Allowance for loan losses		120,500			115,300			114,400			114,601			100,400
Asset quality ratios
Allowance for loan losses to total loans		1.22	%		1.19	%		1.19	%		1.19	%		1.20	%
Total nonperforming loans to total loans		0.39	%		0.39	%		0.39	%		0.25	%		0.24	%
Total nonperforming assets to total assets		0.28	%		0.28	%		0.28	%		0.18	%		0.17	%
Allowance for loan losses to total nonperforming loans		316.37	%		305.12	%		302.05	%		472.31	%		510.01	%
Past due loans to total loans4		0.30	%		0.33	%		0.32	%		0.49	%		0.45	%
Net charge-offs to average loans3		0.15	%		0.19	%		0.22	%		0.18	%		0.17	%
		2024						2023
	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Loan net charge-offs by line of business
Commercial	$	(8	)	$	772		$	1,107		$	(344	)	$	92
Residential real estate and home equity		(76	)		(32	)		11			(75	)		(43	)
Indirect auto		747			665			399			451			273
Residential solar		1,610			1,211			1,081			1,253			581
Other consumer		1,426			2,063			2,729			2,919			2,553
Total loan net charge-offs	$	3,699		$	4,679		$	5,327		$	4,204		$	3,456
		2024						2023
	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Allowance for loan losses as a percentage of loans by segment
Commercial & industrial		0.76	%		0.79	%		0.84	%		0.87	%		0.86	%
Commercial real estate		1.00	%		0.97	%		0.99	%		1.00	%		0.93	%
Residential real estate		0.98	%		0.89	%		0.84	%		0.79	%		0.73	%
Auto		0.85	%		0.81	%		0.83	%		0.82	%		0.80	%
Residential solar		3.76	%		3.58	%		3.28	%		3.19	%		3.09	%
Other consumer		4.09	%		4.24	%		4.70	%		5.23	%		5.98	%
Total		1.22	%		1.19	%		1.19	%		1.19	%		1.20	%
		2024						2023
	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Loans by line of business
Commercial & industrial	$	1,397,935		$	1,353,446		$	1,354,248		$	1,424,579		$	1,319,093
Commercial real estate		3,784,214			3,646,739			3,626,910			3,575,595			2,884,264
Residential real estate		2,134,875			2,133,289			2,125,804			2,111,670			1,666,204
Home equity		326,556			328,673			337,214			340,777			310,897
Indirect auto		1,225,786			1,190,734			1,130,132			1,099,558			1,048,739
Residential solar		861,883			896,147			917,755			934,082			926,365
Other consumer		123,098			139,049			158,650			181,114			202,562
Total loans	$	9,854,347		$	9,688,077		$	9,650,713		$	9,667,375		$	8,358,124

NBT Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited, in thousands)
	June 30,		December 31,
		2024		2023
Assets
Cash and due from banks	$	172,313	$	173,811
Short-term interest-bearing accounts		35,207		31,378
Equity securities, at fair value		40,087		37,591
Securities available for sale, at fair value		1,439,445		1,430,858
Securities held to maturity (fair value $780,490 and $814,524, respectively)		878,909		905,267
Federal Reserve and Federal Home Loan Bank stock		38,314		45,861
Loans held for sale		3,183		3,371
Loans		9,854,347		9,650,713
Less allowance for loan losses		120,500		114,400
Net loans	$	9,733,847	$	9,536,313
Premises and equipment, net		78,713		80,675
Goodwill		361,851		361,851
Intangible assets, net		36,835		40,443
Bank owned life insurance		269,310		265,732
Other assets		413,895		395,889
Total assets	$	13,501,909	$	13,309,040
Liabilities and stockholders' equity
Demand (noninterest bearing)	$	3,333,828	$	3,413,829
Savings, NOW and money market		6,532,834		6,230,456
Time		1,404,797		1,324,709
Total deposits	$	11,271,459	$	10,968,994
Short-term borrowings		224,703		386,651
Long-term debt		29,721		29,796
Subordinated debt, net		120,462		119,744
Junior subordinated debt		101,196		101,196
Other liabilities		292,413		276,968
Total liabilities	$	12,039,954	$	11,883,349
Total stockholders' equity	$	1,461,955	$	1,425,691
Total liabilities and stockholders' equity	$	13,501,909	$	13,309,040

NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited, in thousands except per share data)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2024			2023			2024			2023
Interest, fee and dividend income
Interest and fees on loans	$	136,606		$	106,935		$	269,752		$	207,834
Securities available for sale		7,562			7,493			14,686			15,109
Securities held to maturity		5,190			4,991			10,493			10,026
Other		1,408			1,170			2,772			1,812
Total interest, fee and dividend income	$	150,766		$	120,589		$	297,703		$	234,781
Interest expense
Deposits	$	46,688		$	19,986		$	91,027		$	31,130
Short-term borrowings		2,899			8,126			6,320			13,045
Long-term debt		291			290			581			337
Subordinated debt		1,806			1,335			3,606			2,669
Junior subordinated debt		1,908			1,767			3,821			3,449
Total interest expense	$	53,592		$	31,504		$	105,355		$	50,630
Net interest income	$	97,174		$	89,085		$	192,348		$	184,151
Provision for loan losses		8,899			3,606			14,478			7,515
Net interest income after provision for loan losses	$	88,275		$	85,479		$	177,870		$	176,636
Noninterest income
Service charges on deposit accounts	$	4,219		$	3,733		$	8,336		$	7,281
Card services income		5,587			5,121			10,782			9,966
Retirement plan administration fees		14,798			11,735			29,085			23,197
Wealth management		10,173			8,227			19,870			16,314
Insurance services		3,848			3,716			8,236			7,647
Bank owned life insurance income		1,834			1,528			4,186			3,406
Net securities (losses) gains		(92	)		(4,641	)		2,091			(9,639	)
Other		2,865			2,626			6,038			5,282
Total noninterest income	$	43,232		$	32,045		$	88,624		$	63,454
Noninterest expense
Salaries and employee benefits	$	55,393		$	46,834		$	111,097		$	94,989
Technology and data services		9,249			9,305			18,999			18,312
Occupancy		7,671			6,923			15,769			14,143
Professional fees and outside services		4,565			4,159			9,418			8,337
Amortization of intangible assets		2,133			458			4,301			994
Reserve for unfunded loan commitments		(380	)		(100	)		(830	)		(730	)
Acquisition expenses		-			1,189			-			1,807
Other		10,957			10,026			22,607			20,264
Total noninterest expense	$	89,588		$	78,794		$	181,361		$	158,116
Income before income tax expense	$	41,919		$	38,730		$	85,133		$	81,974
Income tax expense		9,203			8,658			18,594			18,244
Net income	$	32,716		$	30,072		$	66,539		$	63,730
Earnings Per Share
Basic	$	0.69		$	0.70		$	1.41		$	1.49
Diluted	$	0.69		$	0.70		$	1.40		$	1.48

NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements of Income
(unaudited, in thousands except per share data)
		2024						2023
	2nd Q			1st Q			4th Q		3rd Q			2nd Q
Interest, fee and dividend income
Interest and fees on loans	$	136,606		$	133,146		$	132,738	$	122,097		$	106,935
Securities available for sale		7,562			7,124			7,208		7,495			7,493
Securities held to maturity		5,190			5,303			5,374		5,281			4,991
Other		1,408			1,364			5,594		2,221			1,170
Total interest, fee and dividend income	$	150,766		$	146,937		$	150,914	$	137,094		$	120,589
Interest expense
Deposits	$	46,688		$	44,339		$	42,753	$	30,758		$	19,986
Short-term borrowings		2,899			3,421			4,951		7,612			8,126
Long-term debt		291			290			294		294			290
Subordinated debt		1,806			1,800			1,795		1,612			1,335
Junior subordinated debt		1,908			1,913			1,948		1,923			1,767
Total interest expense	$	53,592		$	51,763		$	51,741	$	42,199		$	31,504
Net interest income	$	97,174		$	95,174		$	99,173	$	94,895		$	89,085
Provision for loan losses	$	8,899		$	5,579		$	5,126	$	3,883		$	3,606
Provision for loan losses - acquisition day 1 non-PCD		-			-			-		8,750			-
Total provision for loan losses	$	8,899		$	5,579		$	5,126	$	12,633		$	3,606
Net interest income after provision for loan losses	$	88,275		$	89,595		$	94,047	$	82,262		$	85,479
Noninterest income
Service charges on deposit accounts	$	4,219		$	4,117		$	4,165	$	3,979		$	3,733
Card services income		5,587			5,195			5,360		5,503			5,121
Retirement plan administration fees		14,798			14,287			11,226		12,798			11,735
Wealth management		10,173			9,697			9,152		9,297			8,227
Insurance services		3,848			4,388			3,659		4,361			3,716
Bank owned life insurance income		1,834			2,352			1,776		1,568			1,528
Net securities (losses) gains		(92	)		2,183			507		(183	)		(4,641	)
Other		2,865			3,173			2,643		2,913			2,626
Total noninterest income	$	43,232		$	45,392		$	38,488	$	40,236		$	32,045
Noninterest expense
Salaries and employee benefits	$	55,393		$	55,704		$	50,013	$	49,248		$	46,834
Technology and data services		9,249			9,750			10,174		9,677			9,305
Occupancy		7,671			8,098			7,175		7,090			6,923
Professional fees and outside services		4,565			4,853			5,115		4,149			4,159
Amortization of intangible assets		2,133			2,168			2,131		1,609			458
Reserve for unfunded loan commitments		(380	)		(450	)		300		460			(100	)
Impairment of a minority interest equity investment		-			-			4,750		-			-
Acquisition expenses		-			-			254		7,917			1,189
Other		10,957			11,650			12,839		10,647			10,026
Total noninterest expense	$	89,588		$	91,773		$	92,751	$	90,797		$	78,794
Income before income tax expense	$	41,919		$	43,214		$	39,784	$	31,701		$	38,730
Income tax expense		9,203			9,391			9,338		7,095			8,658
Net income	$	32,716		$	33,823		$	30,446	$	24,606		$	30,072
Earnings Per Share
Basic	$	0.69		$	0.72		$	0.65	$	0.54		$	0.70
Diluted	$	0.69		$	0.71		$	0.64	$	0.54		$	0.70

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
		Q2 - 2024				Q1 - 2024				Q4 - 2023				Q3 - 2023				Q2 - 2023
Assets
Short-term interest-bearing accounts		$	48,861	5.48	%	$	47,972	4.48	%	$	319,907	5.59	%	$	121,384	4.26	%	$	28,473	3.62	%
Securities taxable1			2,280,767	1.97	%		2,278,029	1.91	%		2,310,409	1.88	%		2,364,809	1.90	%		2,394,027	1.90	%
Securities tax-exempt 1 5			226,032	3.56	%		230,468	3.58	%		232,575	3.51	%		219,427	3.34	%		201,499	2.83	%
FRB and FHLB stock			40,283	7.41	%		42,296	7.89	%		47,994	8.98	%		53,841	6.76	%		51,454	7.12	%
Loans1 6			9,772,014	5.63	%		9,674,892	5.54	%		9,653,191	5.47	%		9,043,582	5.36	%		8,307,894	5.17	%
Total interest-earning assets		$	12,367,957	4.92	%	$	12,273,657	4.84	%	$	12,564,076	4.79	%	$	11,803,043	4.63	%	$	10,983,347	4.42	%
Other assets			1,064,487				1,055,386				1,052,024				968,220				835,424
Total assets		$	13,432,444			$	13,329,043			$	13,616,100			$	12,771,263			$	11,818,771
Liabilities and stockholders' equity
Money market deposit accounts		$	3,254,252	3.65	%	$	3,129,160	3.56	%	$	3,045,531	3.43	%	$	2,422,451	2.91	%	$	2,113,965	2.30	%
NOW deposit accounts			1,603,695	0.78	%		1,600,288	0.75	%		1,645,401	0.80	%		1,513,420	0.57	%		1,463,953	0.38	%
Savings deposits			1,586,753	0.05	%		1,607,659	0.04	%		1,666,915	0.04	%		1,707,094	0.04	%		1,708,874	0.03	%
Time deposits			1,391,062	4.00	%		1,352,559	4.00	%		1,343,548	3.81	%		1,178,352	3.60	%		856,305	2.97	%
Total interest-bearing deposits		$	7,835,762	2.40	%	$	7,689,666	2.32	%	$	7,701,395	2.20	%	$	6,821,317	1.79	%	$	6,143,097	1.30	%
Federal funds purchased			29,945	5.56	%		19,769	5.53	%		217	5.48	%		6,033	5.39	%		48,407	5.35	%
Repurchase agreements			86,405	1.55	%		82,419	1.55	%		82,387	1.59	%		71,516	1.40	%		55,627	1.08	%
Short-term borrowings			155,159	5.58	%		213,390	5.34	%		345,250	5.31	%		540,380	5.34	%		557,818	5.27	%
Long-term debt			29,734	3.94	%		29,772	3.92	%		29,809	3.91	%		29,800	3.91	%		29,773	3.91	%
Subordinated debt, net			120,239	6.04	%		119,873	6.04	%		119,531	5.96	%		109,160	5.86	%		97,081	5.52	%
Junior subordinated debt			101,196	7.58	%		101,196	7.60	%		101,196	7.64	%		101,196	7.54	%		101,196	7.00	%
Total interest-bearing liabilities		$	8,358,440	2.58	%	$	8,256,085	2.52	%	$	8,379,785	2.45	%	$	7,679,402	2.18	%	$	7,032,999	1.80	%
Demand deposits			3,323,906				3,356,607				3,535,815				3,498,424				3,316,955
Other liabilities			306,747				286,749				326,857				287,751				251,511
Stockholders' equity			1,443,351				1,429,602				1,373,643				1,305,686				1,217,306
Total liabilities and stockholders' equity		$	13,432,444			$	13,329,043			$	13,616,100			$	12,771,263			$	11,818,771
Interest rate spread				2.34	%			2.32	%			2.34	%			2.45	%			2.62	%
Net interest margin (FTE)1				3.18	%			3.14	%			3.15	%			3.21	%			3.27	%

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
Six Months Ended June 30,			2024						2023
Assets
Short-term interest-bearing accounts		$	48,416	$	1,201	4.99	%	$	31,328	$	447	2.88	%
Securities taxable1			2,279,399		21,977	1.94	%		2,418,245		22,902	1.91	%
Securities tax-exempt 1 5			228,250		4,053	3.57	%		201,908		2,826	2.82	%
FRB and FHLB stock			41,289		1,571	7.65	%		46,327		1,365	5.94	%
Loans1 6			9,723,453		270,217	5.59	%		8,249,034		208,038	5.09	%
Total interest-earning assets		$	12,320,807	$	299,019	4.88	%	$	10,946,842	$	235,578	4.34	%
Other assets			1,059,937						836,148
Total assets		$	13,380,744					$	11,782,990
Liabilities and stockholders' equity
Money market deposit accounts		$	3,191,706	$	57,278	3.61	%	$	2,097,678	$	18,368	1.77	%
NOW deposit accounts			1,601,992		6,120	0.77	%		1,531,021		2,824	0.37	%
Savings deposits			1,597,206		352	0.04	%		1,744,969		286	0.03	%
Time deposits			1,371,810		27,277	4.00	%		748,573		9,652	2.60	%
Total interest-bearing deposits		$	7,762,714	$	91,027	2.36	%	$	6,122,241	$	31,130	1.03	%
Federal funds purchased			24,857		686	5.55	%		46,381		1,184	5.15	%
Repurchase agreements			84,412		649	1.55	%		63,440		164	0.52	%
Short-term borrowings			184,275		4,985	5.44	%		458,064		11,697	5.15	%
Long-term debt			29,753		581	3.93	%		18,598		337	3.65	%
Subordinated debt, net			120,056		3,606	6.04	%		97,024		2,669	5.55	%
Junior subordinated debt			101,196		3,821	7.59	%		101,196		3,449	6.87	%
Total interest-bearing liabilities		$	8,307,263	$	105,355	2.55	%	$	6,906,944	$	50,630	1.48	%
Demand deposits			3,340,257						3,409,209
Other liabilities			296,747						262,951
Stockholders' equity			1,436,477						1,203,886
Total liabilities and stockholders' equity		$	13,380,744					$	11,782,990
Net interest income (FTE)1				$	193,664					$	184,948
Interest rate spread						2.33	%					2.86	%
Net interest margin (FTE)1						3.16	%					3.41	%
Taxable equivalent adjustment				$	1,316					$	797
Net interest income				$	192,348					$	184,151

1	The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:
	Non-GAAP measures
	(unaudited, dollars in thousands except per share data)
			2024						2023
		2nd Q			1st Q			4th Q			3rd Q			2nd Q
	Operating net income
	Net income	$	32,716		$	33,823		$	30,446		$	24,606		$	30,072
	Acquisition expenses		-			-			254			7,917			1,189
	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 (gains)		92			(2,183	)		(507	)		183			4,641
	Adjustments to net income	$	92		$	(2,183	)	$	4,497		$	17,686		$	5,830
	Adjustments to net income (net of tax)	$	72		$	(1,703	)	$	3,435		$	13,730		$	4,525
	Operating net income	$	32,788		$	32,120		$	33,881		$	38,336		$	34,597
	Operating diluted earnings per share	$	0.69		$	0.68		$	0.72		$	0.84		$	0.80
		6 Months Ended June 30,
			2024			2023
	Operating net income
	Net income	$	66,539		$	63,730
	Acquisition expenses		-			1,807
	Securities (gains) losses		(2,091	)		9,639
	Adjustments to net income	$	(2,091	)	$	11,446
	Adjustments to net income (net of tax)	$	(1,631	)	$	8,866
	Operating net income	$	64,908		$	72,596
	Operating diluted earnings per share	$	1.37		$	1.68
			2024						2023
		2nd Q			1st Q			4th Q			3rd Q			2nd Q
	FTE adjustment
	Net interest income	$	97,174		$	95,174		$	99,173		$	94,895		$	89,085
	Add: FTE adjustment		658			658			669			568			402
	Net interest income (FTE)	$	97,832		$	95,832		$	99,842		$	95,463		$	89,487
	Average earning assets	$	12,367,957		$	12,273,657		$	12,564,076		$	11,803,043		$	10,983,347
	Net interest margin (FTE)3		3.18	%		3.14	%		3.15	%		3.21	%		3.27	%
		6 Months Ended June 30,
			2024			2023
	FTE adjustment
	Net interest income	$	192,348		$	184,151
	Add: FTE adjustment		1,316			797
	Net interest income (FTE)	$	193,664		$	184,948
	Average earning assets	$	12,320,807		$	10,946,842
	Net interest margin (FTE)3		3.16	%		3.41	%
	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)
			2024						2023
		2nd Q			1st Q			4th Q			3rd Q			2nd Q
	Tangible equity to tangible assets
	Total equity	$	1,461,955		$	1,441,415		$	1,425,691		$	1,362,821		$	1,210,493
	Intangible assets		398,686			400,819			402,294			402,745			287,701
	Total assets	$	13,501,909		$	13,439,199		$	13,309,040		$	13,827,628		$	11,890,497
	Tangible equity to tangible assets		8.11	%		7.98	%		7.93	%		7.15	%		7.95	%
			2024						2023
		2nd Q			1st Q			4th Q			3rd Q			2nd Q
	Return on average tangible common equity
	Net income	$	32,716		$	33,823		$	30,446		$	24,606		$	30,072
	Amortization of intangible assets (net of tax)		1,600			1,626			1,599			1,206			344
	Net income, excluding intangibles amortization	$	34,316		$	35,449		$	32,045		$	25,812		$	30,416
	Average stockholders' equity	$	1,443,351		$	1,429,602		$	1,373,643		$	1,305,686		$	1,217,306
	Less: average goodwill and other intangibles		399,968			401,756			401,978			350,912			287,974
	Average tangible common equity	$	1,043,383		$	1,027,846		$	971,665		$	954,774		$	929,332
	Return on average tangible common equity3		13.23	%		13.87	%		13.08	%		10.73	%		13.13	%
		6 Months Ended June 30,
			2024			2023
	Return on average tangible common equity
	Net income	$	66,539		$	63,730
	Amortization of intangible assets (net of tax)		3,226			746
	Net income, excluding intangibles amortization	$	69,765		$	64,476
	Average stockholders' equity	$	1,436,477		$	1,203,886
	Less: average goodwill and other intangibles		400,862			288,163
	Average tangible common equity	$	1,035,615		$	915,723
	Return on average tangible common equity3		13.55	%		14.20	%
2	Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding.
3	Annualized.
4	Total 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.