2021 ANNUAL REPORT to our stockholders Fellow Stockholders, We entered 2021 with optimism and confidence in our strong foundation, enabling our team to productively shift focus toward the execution of our strategic growth plans to achieve record full-year results. Together, we rose to every challenge presented by our operating environment, built upon our strong capital base, and reaffirmed that we have a talented team that is dedicated and agile. A team that is focused on our stockholders, customers, communities and each other. In 2021, we generated net income of $154.9 million, or $3.54 per diluted share. These record results were driven by increased net interest income, growing noninterest income, favorable credit results and disciplined cost management that allowed us to achieve meaningful operating leverage. Our full-year return on average tangible common equity was 16.92%, and our return on average assets was 1.33%. We have a strong and growing capital base, with total capital increasing 25% from the end of 2019. Tangible book value per As we continued to pursue organic growth across our footprint and lines of business, we advanced our strategy of leveraging market disruption in our New England footprint by expanding both our service teams and our customer base. At year-end 2021, our New England franchise represented approximately 17% of our total assets and nearly a quarter of NBT Bank’s total loan portfolio. We added our first permanent locations in Connecticut in 2021 with a regional headquarters in West Hartford and a retail banking location in the heart of the business district in Glastonbury. We also expanded in New Hampshire with the opening of a new branch in Concord. In 2021, NBT was proud to be among the banks that continued to deliver crucial relief through the SBA’s Paycheck Protection Program. In all, we funded over 6,100 loans for $835 million in relief and provided support to businesses and non-profit organizations employing over 96,000 workers across our footprint. Our team leveraged their lending, operational and technical expertise to aggressively support this program, and we continue to guide our customers through the share at December 31, 2021 was $22.26, an 8% increase from forgiveness process. year-end 2020. During the historically challenging eight quarters of 2020 and 2021, we added $130 million to capital while paying $95 million in dividends to our valued stockholders. This included an action by the Board in the third quarter to raise the dividend by 3.7%. We also opportunistically repurchased $30 million of NBT shares. This substantial capital accumulation puts us in an enviable position as we consider growth and investment opportunities for 2022 and beyond. company profile • NBT Bancorp Inc. is a financial holding company incorporated in 1986 in the state of Delaware. • The Company primarily operates through NBT Bank, N.A. and two financial services companies. Revenues from noninterest income sources reached an all-time high of $158 million in 2021, an increase of 8% above 2020, with particularly strong growth generated in our retirement plan services and wealth management lines of business. Representing 33% of total revenues, noninterest income generation remains a key strength for NBT— and a notable differentiator compared to our peers. Our customers have embraced our digital tools and adoption continues to increase on our consumer and commercial platforms. This is evident in the 64% increase we experienced in consumer digital adoption from year-end 2019 to year-end 2021. Having successfully upgraded our mobile, online and mortgage banking platforms in 2020, we moved forward with key initiatives on our established technology roadmap in 2021, including new platforms to support commercial lending, small business lending and financing through auto dealers. Our agility and ability, driven by our strategy of fast adoption of the right • NBT Bank, N.A. offers personal banking, commercial technology, enables us to constantly enhance the experience banking and wealth management services through online we deliver to customers and employees. and mobile channels and 140 locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. • EPIC Retirement Plan Services is a national benefits administration firm based in Rochester, NY. Regulation of our industry is continuing to increase, and we respect and value the productive relationship we have with our regulators. Maintaining a strong risk management framework remains a strategic priority for NBT. We are investing in this framework to support our growth and stay ahead of the • NBT Insurance Agency, llc is a full-service insurance ever-evolving regulatory and compliance environment. agency based in Norwich, NY. The predictability and stability of that environment is critical NBT BANCORP INC. financial highlights (In thousands, except per share data) to our ability to continue serving our customers and communities effectively. FOR THE YEAR PERFORMANCE 2021 2020 At NBT, we continue to cultivate an inclusive culture where differences are respected and valued. We strive to give all employees a place to speak up and contribute, to give our customers a place to be welcomed, and our communities a place to be supported. Our responsibility to all our stakeholders—including our customers, communities, employees and stockholders—and our commitment to good corporate citizenship are based on the principles of community banking that have guided NBT for over 165 years. In 2021, our Board of Directors articulated our commitment using Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . $154,885 $104,388 Return on average assets . . . . . . . . . . . . . . . Return on average tangible equity . . . . . . Net interest margin . . . . . . . . . . . . . . . . . . . . . 1.33% 16.92% 3.03% 0.99% 12.48% 3.31% PER COMMON SHARE DATA Diluted earnings . . . . . . . . . . . . . . . . . . . . . . . . Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . $3.54 $1.10 $2.37 $1.08 Dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . 2.86% 3.36% Tangible book value per share . . . . . . . . . . $22.26 $20.52 the Environmental, Social and Governance (ESG) pillars. We AT DECEMBER 31 believe this framework aligns with who we are as a company and represents our core values, and we are leveraging it to articulate and build upon our commitment to diversity, inclusion, sustainability and high standards of corporate governance. We value the guidance and support of our Board of Directors and welcomed J. David Brown to board service in May 2021 BALANCE SHEET DATA Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,012,111 $10,932,906 Total loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,498,459 $7,498,885 Allowance for loan losses . . . . . . . . . . . . . . . $92,000 $110,000 Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,234,469 $9,081,692 Total stockholders’ equity . . . . . . . . . . . . . . . $1,250,453 $1,187,618 and Heidi M. Hoeller in January 2022. As we gain their valuable ASSET QUALITY perspectives at the board table, we will miss the contributions of John C. Mitchell and Patricia T. Civil when they retire at our 2022 Annual Meeting of Stockholders. John has served as Lead Director and provided wise counsel and guidance to many directors through the years since he joined the Board in 1993. Pat has served as a Director since 2003. Her expertise in public accounting and knowledge of the financial services industry have been a critical resource. Net charge-offs to average loans . . . . . . . . Nonperforming loans to total loans . . . . . . Nonperforming assets to total assets . . . . Allowance for loan losses to total loans . . CAPITAL Common equity tier 1 capital ratio . . . . . . . Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . Total risk-based capital ratio . . . . . . . . . . . . 0.13% 0.44% 0.27% 1.23% 12.25% 13.43% 15.73% 0.23% 0.64% 0.45% 1.47% 11.84% 13.09% 15.62% Chief Financial Officer Scott A. Kingsley and President of Closing stock price . . . . . . . . . . . . . . . . . . . . . $38.52 $32.10 Wealth Management Ruth H. Mahoney joined our Executive Market capitalization . . . . . . . . . . . . . . . . . . . $1,662,832 $1,400,494 Management Team in 2021. These dynamic leaders hit the ground running mid-year and are having a significant impact. We will conclude by emphasizing that it was the talented and dedicated team at NBT who made our 2021 success possible. As a well-capitalized company with strong liquidity, we possess all the resources we need for that team to continue to advance the strategies that have made us so successful. John H. Watt, Jr. President and Chief Executive Officer Martin A. Dietrich Chairman of the Board 2022 annual meeting Tuesday, May 17, 2022 | 10:00 a.m. ET www.virtualshareholdermeeting.com/NBTB2022 Forward-Looking Statements This letter contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to a number of risks and uncertainties. Such statements are not guarantees of future performance and actual results may differ materially from any forward-looking statements contained in this letter. For a discussion of the factors that might cause such differences, please refer to our filings with the Securities and Exchange Commission. 2021 ANNUAL REPORT 2021 ANNUAL REPORT leadership Executive Management Team John H. Watt, Jr. President and CEO Sarah A. Halliday Executive Vice President and President of Commercial Banking Shauna M. Hyle Executive Vice President, Consumer Lending Scott A. Kingsley Executive Vice President and Chief Financial Officer Ruth H. Mahoney Executive Vice President and President of Wealth Management EPIC Retirement Plan Services Manuel Marques, cpc, qpa, qka, qpfc, aif® President NBT Insurance Agency, llc Tucker H. Lounsbury, cic President Catherine M. Scarlett Chief Ethics Officer and Corporate Secretary Joseph R. Stagliano Executive Vice President, President of Retail Community Banking and Chief Information Officer Amy Wiles Executive Vice President, Chief Credit Officer and Chief Risk Officer Regional Presidents David A. Kavney Central New York and Mohawk Valley David Krupski Capital Region and North Country Jeffrey D. Lake Greater Binghamton Stephen P. Lubelczyk President of New England, New Hampshire Andreas A. Kapetanopoulos Connecticut Kimberly J. Twitchell Maine Daniel P. Werme Vermont and Massachusetts Board of Directors Martin A. Dietrich Chairman of the Board John H. Watt, Jr. President and CEO Johanna R. Ames J. David Brown Patricia T. Civil Timothy E. Delaney James H. Douglas Heidi M. Hoeller Andrew S. Kowalczyk lll, Esq. John C. Mitchell V. Daniel Robinson ll Matthew J. Salanger Joseph A. Santangelo Lowell A. Seifter, Esq. Jack H. Webb Operating Committee The following NBT leaders serve on the Operating Committee with the Executive Management Team and Regional Presidents. Annette L. Burns, SVP and Chief Accounting Officer Leonard P. Chinski, SVP and Director of Audit Matthew K. Colgan, SVP and Regional Commercial Banking Manager, Pennsylvania Jeffrey S. Delepine II, SVP, Chief Compliance Officer and Chief Diversity Officer Kurt T. Edwards, SVP and Chief Consumer Credit Officer Kenneth J. Entenmann, cfa®, SVP, Chief Investment Officer and Chief Economist Dawn D. Gillette, SVP and Head of FinTech Partners and Specialty Lending NBT Bank Honorary Directors Richard Chojnowski Daryl R. Forsythe Paul D. Horger, Esq. Janet H. Ingraham Van Ness D. Robinson Paul M. Solomon Paul O. Stillman Robert A. Wadsworth Additional information regarding our Executive Management Team and Board of Directors can be found in the proxy statement for our 2022 Annual Meeting of Stockholders. Amy S. Hurta, SVP and Senior Director of Operations Tucker H. Lounsbury, cic, President, NBT Insurance Agency, llc Joseph M. Ondesko, SVP and Corporate Treasurer Manuel S. Orta, SVP and Director of Business Development, Wealth Management Cynthia A. Smaniotto, SVP and Chief Human Resources Officer Thomas M. Sutton, SVP and Director of Retail Banking Jennifer R. Telesky, SVP and Regional Commercial Banking Manager, Southern Tier David R. Theleman, SVP and Chief Commercial Credit Officer stockholder information Corporate Headquarters NBT Bancorp Inc. 52 South Broad Street Norwich, NY 13815 800.NBT.BANK Independent Auditors KPMG llP 515 Broadway Albany, NY 12207 Financial Reports and Releases Copies of the Company’s annual report to the Securities and Exchange Commission on Form 10-K, quarterly reports on Form 10-Q, and news releases may be obtained without charge by visiting our website at www.nbtbancorp.com or by writing to the attention of our Chief Financial Officer at the corporate headquarters address. Stockholder Relations Information regarding the Company, our dividend reinvestment and stock purchase plan, and direct deposit of dividends can be found on our website at www.nbtbancorp.com. Those seeking additional information may contact us by phone at 800.NBT.BANK (800.628.2265, Option 7) or by mail at the corporate headquarters address. Stock Transfer and Registrar Agent American Stock Transfer & Trust Company, LLC 6201 15th Avenue Brooklyn, NY 11219 800.NBT.BANK (800.628.2265, Option 7) www.astfinancial.com help@astfinancial.com www.nbtbancorp.com | 800.NBT.BANK www.nbtinsurance.com www.nbtbank.com www.epicrps.com 2021 ANNUAL REPORTNBTBNasdaq Global Select Market