Financial Performance - Net income for Q3 2025 was $54.5 million, an increase of $32.0 million from Q2 2025 and $16.4 million from Q3 2024[152]. - Diluted earnings per share for Q3 2025 were $1.03, up $0.59 from Q2 2025 and up $0.23 from Q3 2024[152]. - Operating net income for Q3 2025 was $55.3 million, or $1.05 per diluted common share, compared to $0.88 per diluted common share for Q2 2025 and $0.80 for Q3 2024[153]. - Net income for the nine months ended September 30, 2025 was $113.7 million, or $2.26 per diluted common share, up from $104.6 million, or $2.21 per diluted common share for the same period in 2024[152]. - Operating net income for the nine months ended September 30, 2025 was $138.7 million, or $2.76 per diluted common share, an increase from $103.1 million, or $2.17 per diluted common share for the same period in 2024[153]. Acquisition Details - Total consideration for the acquisition of Evans Bancorp was $221.8 million in stock, enhancing the Company's presence in Western New York[149]. - The acquisition included approximately $130.4 million of identifiable net assets, $1.67 billion of loans, and $1.86 billion in deposits[149]. - The company completed the acquisition of Evans on May 2, 2025, which contributed significantly to the growth in loans and deposits[156]. - The company incurred acquisition expenses of $1.1 million and $19.5 million for Q3 and the nine months ended September 30, 2025, respectively[150]. Interest Income and Margin - For the three months ended September 30, 2025, net interest income was $134.7 million, an increase of $10.4 million, or 8.4%, from the previous quarter and up $33.0 million, or 32.5%, from the same quarter in 2024[156]. - Net interest income for the nine months ended September 30, 2025, was $366.1 million, an increase of $72.1 million, or 24.5%, compared to the same period in 2024[162]. - The net interest margin (FTE) for the three months ended September 30, 2025, was 3.66%, an increase of 7 basis points from the previous quarter[160]. - The FTE NIM for the nine months ended September 30, 2025, was 3.57%, up 37 basis points from the same period in 2024[162]. Loan and Deposit Growth - Total loans at the end of the period were $11.60 billion, an increase of $1.63 billion from December 31, 2024, including $1.67 billion of loans acquired from Evans[156]. - Total deposits at the end of the period were $13.66 billion, up $2.11 billion from December 31, 2024, including $1.86 billion in deposits acquired from Evans[156]. - Average deposits increased by $1.47 billion, or 13.2%, from the same period last year due to the acquisition of $1.86 billion in deposits from Evans[208]. Noninterest Income and Expenses - Noninterest income, excluding securities gains, was $51.4 million for the three months ended September 30, 2025, up $4.6 million, or 9.8%, from the previous quarter[156]. - Noninterest income for Q3 2025 was $51.4 million, an increase of $4.5 million, or 9.5%, from the prior quarter and up $5.6 million, or 12.3%, from Q3 2024[173]. - Noninterest expense for Q3 2025 was $111.1 million, down $11.5 million, or 9.4%, from the prior quarter but up $15.4 million, or 16.1%, from Q3 2024[178]. - Noninterest expense for the nine months ended September 30, 2025 was $333.7 million, up $56.5 million, or 20.4%, from the same period in 2024[181]. Credit Quality and Allowance for Losses - The allowance for credit losses totaled $139.0 million at September 30, 2025, compared to $119.5 million at September 30, 2024, with the allowance as a percentage of loans at 1.20%[200]. - The provision for loan losses was $3.1 million for the three months ended September 30, 2025, a decrease from $17.8 million in the prior quarter[202]. - Total nonperforming assets were $53.7 million at September 30, 2025, compared to $51.8 million at December 31, 2024, and $37.4 million at September 30, 2024[206]. - Nonperforming loans at September 30, 2025, were $53.4 million or 0.46% of total loans, compared with $51.6 million or 0.52% at December 31, 2024[206]. Tax and Regulatory Information - The effective tax rate for Q3 2025 was 24.2%, compared to 26.7% for the prior quarter and 21.9% for Q3 2024[183]. - Income tax expense for the nine months ended September 30, 2025 was $36.0 million, an increase of $6.8 million from the same period in 2024, with an effective tax rate of 24.1%[184]. Economic Outlook and Liquidity - The Company’s baseline economic outlook predicts Northeast unemployment to rise from 4.4% in Q4 2025 to 4.8% by the end of the forecast period[146]. - The Company’s liquidity management focuses on avoiding fluctuations in net interest margins during changing economic conditions[230]. - The Company has additional borrowing capacity from the FHLB of approximately $1.98 billion as of September 30, 2025[232]. - The Company’s liquidity position may be adversely impacted by potential deposit declines due to alternative yield opportunities for depositors[233].

Financial Data and Key Metrics Changes - The operating return on assets was 1.37% for the third quarter, with a return on equity of 12.1% and a return on tangible common equity (ROTCE) of 17.6%, showing continued improvement over linked and prior year quarters [3] - Net income for the third quarter was $54.5 million, or $1.03 per diluted common share, with operating earnings per share at $1.05, an increase of $0.17 per share compared to the prior quarter [9] - Revenues grew approximately 9% from the prior quarter and 26% from the third quarter of the prior year, driven by improvements in net interest income [9][11] Business Line Data and Key Metrics Changes - Total loans increased by $1.6 billion for the year, including acquired loans from Evans Bancorp, with annualized loan growth in 2025 being approximately 1% higher from December 2024 [9][10] - Total deposits reached $13.7 billion, up $2.1 billion from December 2024, with growth in checking and money market accounts [10] - Non-interest income represented 28% of total revenues in the third quarter, reflecting the strength of the diversified revenue base [14] Market Data and Key Metrics Changes - The company experienced solid growth in deposits in the Western region of New York post-merger with Evans Bancorp, retaining key lending relationships despite a net contractual runoff of approximately $30 million [6] - The new branch in Greater Rochester opened in April and is off to a promising start, with plans for further expansion in the region [6][8] Company Strategy and Development Direction - The company plans to open four to six new branches annually to improve market concentration, particularly in Rochester [28] - The focus remains on organic growth and evaluating partnerships with like-minded community banks, with a renewed share repurchase authorization through the end of 2027 [5][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the capital position and growth opportunities across markets, despite potential challenges from expected changes to Fed funds rates impacting future margin improvements [4][15] - The company anticipates low to mid-single-digit loan growth rates in the upcoming quarters, supported by a strong pipeline [20] Other Important Information - The company announced an 8.8% improvement to its dividend to shareholders, marking the 13th consecutive year of increases [5] - Total operating expenses, excluding acquisition expenses, were $110 million for the quarter, reflecting a 4.4% increase from the prior quarter [14] Q&A Session Summary Question: Can you discuss cost savings and expected expenses? - Management indicated that cost savings from the Evans merger are essentially achieved, with a run rate of $110 million expected moving forward, alongside typical expense increases of 3.5% to 4.5% [18] Question: What are the expectations for loan growth? - Management expects low to mid-single-digit growth rates in the upcoming quarters, with a strong pipeline and a comfortable loan-to-deposit ratio of 85% [20][21] Question: What is the outlook for fee income growth? - The insurance business is expected to grow at a rate of high mid-single digits, with seasonality affecting the fourth quarter [63][67] Question: Are there plans for additional M&A? - The company is open to opportunistic M&A to fill in its franchise, focusing on smaller community banks [33] Question: What is the outlook for net interest margin? - Management anticipates potential margin pressure in the fourth quarter but sees opportunities for improvement in 2026 depending on the yield curve [34][76]

Financial Data and Key Metrics Changes - The operating return on assets was 1.37% for the third quarter, with a return on equity of 12.1% and a return on tangible common equity (ROTCE) of 17.6%, showing continued improvement over linked and prior year quarters [3] - Net income for the third quarter was $54.5 million, or $1.03 per diluted common share, with operating earnings per share at $1.05, an increase of $0.17 per share compared to the prior quarter [9] - Revenues grew approximately 9% from the prior quarter and 26% from the third quarter of the prior year, driven by improvements in net interest income [9] Business Line Data and Key Metrics Changes - Total loans increased by $1.6 billion for the year, including acquired loans from Evans Bancorp, with annualized loan growth in 2025 being approximately 1% higher from December 2024 [9] - The total loan portfolio of $11.6 billion is comprised of 56% commercial relationships and 44% consumer loans [10] - Total deposits of $13.7 billion were up $2.1 billion from December 2024, with growth in checking and money market accounts [10] Market Data and Key Metrics Changes - The company experienced solid growth in deposits in the Western region of New York post-merger with Evans Bancorp, retaining key lending relationships despite approximately $30 million of net contractual runoff in the portfolio [6] - The new Malta, New York branch near GlobalFoundries is seeing excellent traffic and growth, while the Hudson Valley market is experiencing positive demographic shifts [7] Company Strategy and Development Direction - The company plans to open a financial center in Rochester during 2026 and is exploring locations in the Finger Lakes to enhance its branch network [6] - The company is focused on scaling operations in New Hampshire and optimizing branch locations to remain agile and responsive to market needs [8] - The management is interested in fill-in strategies for M&A opportunities with like-minded community banks to expand the franchise [33] Management's Comments on Operating Environment and Future Outlook - Management expressed that recent and expected changes to Fed funds rates may challenge future margin improvements compared to recent quarters [4] - The company is in a strong capital position and has growth opportunities across all markets, well-positioned to take advantage of them [15] - Management anticipates low to mid-single-digit loan growth rates in early to mid-2026, with a robust pipeline of lending opportunities [20] Other Important Information - The company announced an 8.8% improvement to its dividend to shareholders, marking the 13th consecutive year of increases [5] - Total operating expenses, excluding acquisition expenses, were $110 million for the quarter, reflecting a full quarter of Evans activity [14] Q&A Session Summary Question: What are the expectations for cost savings and total expenses moving forward? - Management indicated that cost savings have been achieved during the third quarter, and the run rate of $110 million is expected to be appropriate going forward, with typical expense increases running between 3.5% and 4.5% [18] Question: What is the outlook for loan growth in the coming quarters? - Management expects low to mid-single-digit growth rates for loans, with a strong pipeline and good activity levels in the markets [20] Question: What is the expected number of new branches and talent recruitment? - Management anticipates adding four to six new branches per year to improve market concentration and has been productive in recruiting talent in the Western region of New York [28] Question: Is the company considering additional M&A deals? - Management is open to fill-in strategies for M&A opportunities with smaller community banks to expand their franchise [33] Question: What are the expectations for margin pressure in the near term? - Management indicated potential margin pressure in the fourth quarter due to deposit repricing dynamics, but there may be opportunities for margin improvement in 2026 [34][76]

Financial Data and Key Metrics Changes - NBT Bancorp reported net income of $54.5 million, or $1.03 per diluted common share, with operating earnings per share at $1.05, an increase of $0.17 compared to the prior quarter [10] - Operating return on assets was 1.37%, return on equity was 12.1%, and ROTCE was 17.6%, showing continued improvement [3] - Tangible book value per share increased by 7% year-over-year to $25.51 [4] Business Line Data and Key Metrics Changes - Total loans increased by $1.6 billion year-over-year, with a diversified portfolio comprising 56% commercial and 44% consumer loans [11] - Total deposits rose to $13.7 billion, up $2.1 billion from December 2024, with growth in checking and money market accounts [12] - Non-interest income represented 28% of total revenues, with fee income increasing by 9.8% compared to the previous quarter [14][13] Market Data and Key Metrics Changes - The Western region of New York saw solid growth in deposits post-Evans Bancorp merger, with plans for new branches in Rochester and other areas [6][8] - The company is exploring new locations in the Finger Lakes and plans to break ground on a new branch near the Micron chip fabrication site in Clay, New York [8] Company Strategy and Development Direction - The company aims to support organic growth and maintain a strong capital position, with a renewed share repurchase authorization of 2 million shares through the end of 2027 [5] - NBT Bancorp is focused on filling in its franchise through opportunistic M&A and branch expansion, particularly in underrepresented markets [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a strong capital position and identified growth opportunities across all markets [16] - Future margin improvements may be challenged due to expected changes in Fed funds rates, but there is optimism for potential margin recovery in 2026 [31][58] Other Important Information - The company announced an 8.8% dividend increase, marking the 13th consecutive year of increases [5] - Total operating expenses for the quarter were $110 million, reflecting a 4.4% increase from the prior quarter [15] Q&A Session Summary Question: What are the expectations for cost savings and total expenses moving forward? - Management indicated that cost savings from the Evans integration are largely achieved, with a run rate of $110 million expected going forward, alongside typical expense increases of 3.5% to 4.5% [18][19] Question: What is the outlook for loan growth in the coming quarters? - Management anticipates low to mid-single-digit growth rates for loans, with a strong pipeline and good activity levels in the markets [20][21] Question: Are there plans for additional M&A deals? - The company is open to opportunistic M&A to fill in its franchise and is in discussions with like-minded community banks [29] Question: What is the current status of solar loans and auto loan delinquencies? - Management noted no significant pressure on auto loan delinquencies and indicated that solar loans are performing as expected, despite market volatility [35][36] Question: What is the outlook for fee income and insurance growth? - The insurance business is expected to grow at a rate of high mid-single digits, with seasonally strong performance in the third quarter [48][49] Question: What are the expectations for margin pressure and potential improvements? - Management expects some initial pressure on margins but sees potential for improvement in 2026 if the yield curve steepens [57][58]

Financial Performance - The company reported earnings per share of $1.03 and operating earnings per share of $1.05[9] - Return on average tangible equity was 17.35% reported and 17.61% operating[9] - Total revenue reached $186 million[9] - Net income was $54.5 million, a 142% increase compared to Q2 2025 and a 43% increase compared to Q3 2024[14] - Diluted earnings per share were $1.03, a 134.1% increase from Q2 2025 and a 28.8% increase from Q3 2024[14] Balance Sheet - Period-end loans totaled $11.60 billion[9] - Period-end deposits amounted to $13.66 billion[9] - Stockholders' equity grew by $327 million, or 21.4%, from December 31, 2024[11] - Total loans increased by $1.63 billion from December 31, 2024[22] - Total deposits increased by $2.11 billion, or 18.3%, from December 31, 2024, including $1.86 billion from the Evans acquisition[29] Net Interest Income and Margin - Net interest income increased by $10.4 million to $135.3 million[36] - Net interest margin increased by 7 bps to 3.66%[36]

Core Insights - NBT Bancorp reported a revenue of $186.66 million for the quarter ended September 2025, reflecting a year-over-year increase of 26.1% and a surprise of +1.89% over the Zacks Consensus Estimate of $183.2 million [1] - The earnings per share (EPS) for the quarter was $1.05, compared to $0.80 in the same quarter last year, resulting in an EPS surprise of +8.25% against the consensus estimate of $0.97 [1] Financial Performance Metrics - Total interest-earning assets averaged $14.64 billion, slightly below the estimated $14.73 billion [4] - The net interest margin (FTE) was reported at 3.7%, exceeding the average estimate of 3.6% [4] - Bank owned life insurance income was $3.24 million, surpassing the average estimate of $2.1 million [4] - Insurance services revenue reached $5.26 million, compared to the average estimate of $5.01 million [4] - Retirement plan administration fees totaled $15.91 million, slightly above the average estimate of $15.52 million [4] - Wealth management income was reported at $11.1 million, in line with the average estimate of $11.07 million [4] - Total Noninterest Income was $51.41 million, exceeding the estimated $48.74 million [4] - Service charges on deposit accounts amounted to $5.1 million, above the average estimate of $4.5 million [4] - Card services income was $6.39 million, compared to the average estimate of $6.11 million [4] Stock Performance - NBT Bancorp's shares have returned -3.8% over the past month, while the Zacks S&P 500 composite has increased by +2.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - NBT Bancorp reported quarterly earnings of $1.05 per share, exceeding the Zacks Consensus Estimate of $0.97 per share, and showing a year-over-year increase from $0.80 per share [1][2] Financial Performance - The company achieved revenues of $186.66 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.89% and increasing from $148.08 million a year ago [2] - Over the last four quarters, NBT has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - NBT shares have declined approximately 14.3% since the beginning of the year, contrasting with the S&P 500's gain of 15.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.97 on revenues of $182.83 million, and for the current fiscal year, it is $3.61 on revenues of $691.88 million [7] - The trend of earnings estimate revisions for NBT was mixed prior to the earnings release, which may change following the recent results [6] Industry Context - The Banks - Northeast industry, to which NBT belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Net income for Q3 2025 was $54.5 million, or $1.03 per diluted share, up from $38.1 million, or $0.80 per diluted share in Q3 2024, and $22.5 million, or $0.44 per diluted share in Q2 2025[2] - Operating diluted earnings per share for Q3 2025 was $1.05, compared to $0.80 in Q3 2024 and $0.88 in Q2 2025[2] - Net income for Q3 2025 reached $54,471,000, a significant increase from $22,510,000 in Q2 2025[29] - Basic earnings per share for Q3 2025 was $1.04, compared to $0.81 in Q3 2024, reflecting a 28.8% increase[25] - Net income for the nine months ended September 30, 2025, was $113,726,000, compared to $104,636,000 for the same period in 2024, showing a year-over-year increase of 10.5%[30] Asset and Loan Growth - Total loans at the end of Q3 2025 were $11.60 billion, an increase of $1.63 billion from December 31, 2024[7] - Net loans amounted to $11.46 billion as of September 30, 2025, compared to $9.86 billion a year earlier[22] - Total assets of NBT Bancorp Inc. reached $16.11 billion as of September 30, 2025[16] - Total assets reached $16,112,584 thousand as of September 30, 2025, up from $13,786,666 thousand at the end of 2024, marking a 16.8% growth[24] - The total loans outstanding were $11,595,134 thousand in Q3 2025, compared to $9,907,041 thousand in Q3 2024, reflecting a 17.0% increase[24] Deposit Growth - Total deposits were $13.66 billion as of September 30, 2025, up from $11.55 billion at December 31, 2024[7] - Total deposits increased to $13,660,918 thousand in Q3 2025 from $11,546,761 thousand in Q4 2024, a rise of 18.3%[24] Income and Expense Analysis - Net interest income for Q3 2025 was $135.3 million, an increase of $10.4 million from the prior quarter, and net interest margin was 3.66%, up 7 basis points from Q2 2025[5] - Noninterest income for Q3 2025 was $51.4 million, up 9.8% from Q2 2025 and 13.5% from Q3 2024[12] - Total noninterest expense for Q3 2025 was $111,143, representing a 16.0% increase from $95,745 in Q3 2024[25] - Interest expense for Q3 2025 totaled $55,804, a slight increase from $54,561 in Q3 2024[25] Capital and Ratios - The CET1 capital ratio was 11.80%, leverage ratio was 9.34%, and total risk-based capital ratio was 13.97% as of September 30, 2025[17] - The tangible common equity to tangible assets ratio was 8.58% as of September 30, 2025[17] - Return on average assets was 1.35% and return on average tangible common equity was 17.35% for Q3 2025[4] - Return on average tangible common equity for Q3 2025 was 17.35%, a notable increase from 8.01% in Q2 2025[30] Shareholder Returns - A quarterly cash dividend of $0.37 per share was declared, representing an 8.8% increase over the prior year[14] - The company did not repurchase any shares during the three months ended September 30, 2025, but has authorized a program to repurchase up to 2,000,000 shares by December 31, 2027[17] Acquisition Impact - The acquisition of Evans Bancorp added $1.67 billion in loans and $1.86 billion in deposits, with 200 new employees and 18 banking locations[3] - Stockholders' equity increased by $327.0 million from December 31, 2024, driven by the Evans acquisition, net income generation of $113.7 million, and a decrease in accumulated other comprehensive loss of $41.8 million[17] Loan Quality - Nonaccrual loans increased to $46,450 thousand in Q3 2025 from $33,338 thousand in Q3 2024, representing a 39.5% year-over-year increase[23] - Total nonperforming loans rose to $53,416 thousand in Q3 2025, up from $37,319 thousand in Q3 2024, indicating a 43.3% increase[23] - The allowance for loan losses stood at $139,000 thousand in Q3 2025, compared to $116,000 thousand in Q4 2024, reflecting a 19.8% increase[23] - The total nonperforming assets to total assets ratio improved to 0.33% in Q3 2025 from 0.27% in Q3 2024[23]

Core Insights - NBT Bancorp Inc. reported record net income of $54.5 million and diluted earnings per share of $1.03 for Q3 2025, reflecting significant growth compared to previous periods [2][4] - The acquisition of Evans Bancorp contributed to the increase in net income and earnings per share, with the company adding $1.67 billion in loans and $1.86 billion in deposits [3][4] - The company achieved a return on average assets of 1.35% and a return on average tangible common equity of 17.35% for the third quarter [4][29] Financial Performance - Net interest income for Q3 2025 was $135.3 million, an increase of $10.4 million from Q2 2025 and $33.0 million from Q3 2024, driven by the Evans acquisition and higher earning asset yields [4][10] - The net interest margin (NIM) on a fully taxable equivalent basis was 3.66%, up 7 basis points from the prior quarter and 39 basis points from the same quarter last year [4][10] - Noninterest income was $51.4 million, representing 28% of total revenues, and increased by 9.8% from Q2 2025 and 13.5% from Q3 2024 [11][13] Loan and Deposit Growth - Total loans at the end of Q3 2025 were $11.60 billion, up from $9.97 billion at the end of 2024, with a significant portion attributed to the Evans acquisition [10][31] - Total deposits reached $13.66 billion, compared to $11.55 billion at the end of 2024, with organic growth also contributing to the increase [10][31] - The loan-to-deposit ratio was 84.9% at the end of Q3 2025, down from 86.3% at the end of 2024 [10] Asset Quality - The allowance for loan losses was $139 million, or 1.20% of total loans, with net charge-offs to average loans at 0.15% annualized [9][31] - Nonperforming loans to total loans stood at 0.46%, while nonperforming assets to total assets was 0.33% [9][31] Capital and Dividends - Stockholders' equity was $1.85 billion, with a tangible book value per share of $25.51 as of September 30, 2025 [4][22] - The company approved a quarterly cash dividend of $0.37 per share, marking an 8.8% increase over the previous year, continuing a trend of annual dividend increases for thirteen consecutive years [4][17] Corporate Overview - NBT Bancorp Inc. is a financial holding company with total assets of $16.11 billion, operating primarily through NBT Bank, N.A. and two financial services companies [20][34]

Core Viewpoint - NBT Bancorp Inc. is set to release its financial results for the third quarter of 2025 on October 27, 2025, with a conference call scheduled for October 28, 2025, to discuss these results [1][2]. Company Overview - NBT Bancorp Inc. is a financial holding company based in Norwich, NY, with total assets amounting to $16.01 billion as of June 30, 2025 [3]. - The company operates primarily through NBT Bank, N.A., which is a full-service community bank, and has a network of 175 banking locations across New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine, and Connecticut [3]. - NBT Bancorp also includes two financial services companies: EPIC Retirement Plan Services, a national benefits administration firm located in Rochester, NY, and NBT Insurance Agency, LLC, a full-service insurance agency based in Norwich, NY [3].