Exhibit 99.1

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NBT BANCORP INC. ANNOUNCES SECOND QUARTER NET INCOME OF $30.1 MILLION ($0.70 PER DILUTED COMMON SHARE)

NORWICH, NY (July 31, 2023) – 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, 2023.

 

Net income for the three months ended June 30, 2023 was $30.1 million, or $0.70 per diluted common share, compared to $37.8 million, or $0.88 per diluted share, for the three months ended June 30, 2022, and $33.7 million, or $0.78 per diluted share, in the first quarter of 2023.

 

CEO Comments

“We delivered solid operating performance for the second quarter and the first half of 2023. Our results reflect the ongoing focus on our long-term strategies, the strength of our balance sheet and our diversified business model,” said NBT President and CEO John H. Watt, Jr. “We grew loans in all our core portfolios in the second quarter, and our funding sources remained resilient. Our credit performance remained consistent and favorable, and we continued to grow capital. We were also very pleased to have received all the regulatory and shareholder approvals required to proceed with our planned combination with Salisbury Bancorp. We expect the merger to close on August 11, 2023. Our integration team with representatives from NBT and Salisbury has worked diligently to ensure the best possible customer experience upon the conversion of Salisbury customer relationships,” said Watt.

 

Second Quarter Financial Highlights

 

Loans

Deposits

Net Interest Income and Net Interest Margin

 

Asset Quality and Allowance for Loan Losses

Noninterest Income

 

Noninterest Expense

Income Taxes

Capital

Stock Repurchase

Salisbury Bancorp, Inc. Merger

Other Events

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On July 1, 2023, the Company’s subsidiary national benefits administration firm, EPIC Retirement Plan Services (“EPIC RPS”), completed an asset purchase of Retirement Direct, LLC, based near Charlotte, NC. Retirement Direct served more than 500 qualified and nonqualified retirement plans and had over $2 billion in client assets under management. EPIC RPS has a client base that spans all 50 states and now supports over 5,000 retirement plans with more than 300,000 plan participants.

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, August 1, 2023, to review second 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 $11.89 billion at June 30, 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 140 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a national benefits administration firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtinsurance.com.

Forward-Looking Statements

 

This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “should,” “could,” “may,” or other similar terms. There are a number of factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) local, regional, national and international economic conditions, 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 businesses of NBT and Salisbury may not be combined successfully; (14) the possibility that NBT and Salisbury may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all or to successfully integrate Salisbury’s operations and those of NBT; (15) the ability to increase market share and control expenses; (16) changes in the competitive environment among financial holding companies; (17) 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; (18) 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; (19) changes in the Company’s organization, compensation and benefit plans; (20) 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; (21) greater than expected costs or difficulties related to the integration of new products and lines of business; and (22) 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
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Profitability:
Diluted earnings per share		$	0.70			$	0.78			$	0.84			$	0.90			$	0.88
Weighted average diluted common shares outstanding			43,126,498				43,125,986				43,144,666				43,110,932				43,092,851
Return on average assets3			1.02	%			1.16	%			1.23	%			1.33	%			1.28	%
Return on average equity3			9.91	%			11.47	%			12.30	%			12.87	%			12.73	%
Return on average tangible common equity1 3			13.13	%			15.31	%			16.54	%			17.12	%			17.00	%
Net interest margin1 3			3.27	%			3.55	%			3.68	%			3.51	%			3.21	%
			6 Months Ended June 30,
			2023				2022
Profitability:
Diluted earnings per share		$	1.48			$	1.78
Weighted average diluted common shares outstanding			43,129,259				43,238,248
Return on average assets			1.09	%			1.30	%
Return on average equity			10.68	%			12.76	%
Return on average tangible common equity1			14.20	%			16.93	%
Net interest margin1			3.41	%			3.08	%
			2023								2022
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Balance sheet data:
Short-term interest-bearing accounts		$	31,878			$	68,045			$	30,862			$	97,303			$	328,593
Securities available for sale			1,453,926				1,512,008				1,527,225				1,556,501				1,619,356
Securities held to maturity			912,876				906,824				919,517				929,541				936,512
Net loans			8,257,724				8,164,328				8,049,347				7,807,984				7,684,081
Total assets			11,890,497				11,839,730				11,739,296				11,640,742				11,720,459
Total deposits			9,529,919				9,681,205				9,495,933				9,918,751				10,028,708
Total borrowings			880,518				703,248				787,950				277,889				265,796
Total liabilities			10,680,004				10,628,071				10,565,742				10,484,196				10,531,903
Stockholders’ equity			1,210,493				1,211,659				1,173,554				1,156,546				1,188,556
Capital:
Equity to assets			10.18	%			10.23	%			10.00	%			9.94	%			10.14	%
Tangible equity ratio1			7.95	%			7.99	%			7.73	%			7.64	%			7.87	%
Book value per share		$	28.26			$	28.24			$	27.38			$	27.00			$	27.75
Tangible book value per share2		$	21.55			$	21.52			$	20.65			$	20.25			$	20.99
Leverage ratio			10.51	%			10.43	%			10.32	%			10.21	%			9.77	%
Common equity tier 1 capital ratio			12.29	%			12.28	%			12.12	%			12.17	%			12.14	%
Tier 1 capital ratio			13.35	%			13.34	%			13.19	%			13.27	%			13.27	%
Total risk-based capital ratio			15.50	%			15.53	%			15.38	%			15.50	%			15.50	%
Common stock price (end of period)		$	31.85			$	33.71			$	43.42			$	37.95			$	37.59