NORWICH, N.Y., Oct. 01, 2025 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) will release details of its financial results for the third quarter 2025 on Monday, October 27, 2025, following the market close. The Company will host a conference call at 10:00 a.m. (Eastern) Tuesday, October 28, 2025, to review these results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at www.nbtbancorp.com/bn/presen ...

Group 1 - The primary earnings catalyst for NBT Bancorp Inc. is the acquisition of Evans Bancorp, which was completed in May 2025 [1] - The merger has resulted in an increase in loan balance and net interest margin for NBT Bancorp [1] - Cost savings from the acquisition are expected to further enhance earnings [1]

Group 1 - The primary earnings catalyst for NBT Bancorp Inc. is the acquisition of Evans Bancorp, which was completed in May 2025 [1] - The merger has resulted in an increase in loan balance and net interest margin for NBT Bancorp [1] - Cost savings from the acquisition are expected to further enhance earnings [1]

PART I FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS (Unaudited)](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) This section presents NBT Bancorp Inc.'s unaudited interim consolidated financial statements for Q2 2025, including balance sheets, income statements, and detailed notes on key accounting areas [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific dates Consolidated Balance Sheets (in billions) | Metric | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :---------------- | | Total assets | $16.01 | $13.79 | | Total liabilities | $14.21 | $12.26 | | Total stockholders' equity | $1.81 | $1.53 | - Total assets increased by **$2.23 billion** (16.1%) from December 31, 2024, to June 30, 2025, primarily due to the Evans acquisition[11](index=11&type=chunk) - Total deposits increased by **$1.97 billion** (17.1%) from December 31, 2024, to June 30, 2025[11](index=11&type=chunk) [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) This section details the company's financial performance over specific periods, outlining revenues, expenses, and net income Consolidated Statements of Income (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total interest income | $177.6 | $150.8 | $332.0 | $297.7 | | Total interest expense| $53.4 | $53.6 | $100.5 | $105.4 | | Net interest income | $124.2 | $97.2 | $231.4 | $192.3 | | Provision for loan losses | $17.8 | $8.9 | $25.4 | $14.5 | | Total noninterest income | $46.9 | $43.2 | $94.4 | $88.6 | | Total noninterest expense | $122.6 | $89.6 | $222.5 | $181.4 | | Net income | $22.5 | $32.7 | $59.3 | $66.5 | | Basic EPS | $0.45 | $0.69 | $1.21 | $1.41 | | Diluted EPS | $0.44 | $0.69 | $1.21 | $1.40 | - Net income for Q2 2025 decreased by **$10.2 million** (31.2%) YoY, while diluted EPS decreased by **$0.25** (36.2%) YoY[13](index=13&type=chunk) - Net interest income for Q2 2025 increased by **$27.0 million** (27.8%) YoY[13](index=13&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section presents the total comprehensive income, including net income and other comprehensive income (loss) components Consolidated Statements of Comprehensive Income (Loss) (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $22.5 | $32.7 | $59.3 | $66.5 | | Total other comprehensive income (loss) | $12.3 | $1.6 | $32.6 | $(2.0) | | Comprehensive income | $34.8 | $34.3 | $91.9 | $64.6 | - Total other comprehensive income significantly increased to **$12.3 million** in Q2 2025 from **$1.6 million** in Q2 2024, primarily due to unrealized net holding gains on available-for-sale securities[15](index=15&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section outlines changes in the company's equity, reflecting common stock, retained earnings, and other comprehensive income Consolidated Statements of Changes in Stockholders' Equity (in millions) | Metric | Balance at March 31, 2025 | Balance at June 30, 2025 | Balance at December 31, 2024 | Balance at June 30, 2024 | | :-------------------- | :------------------------ | :----------------------- | :--------------------------- | :----------------------- | | Common Stock | $0.5 | $0.6 | $0.5 | $0.5 | | Additional Paid-in Capital | $740.9 | $962.9 | $742.8 | $741.9 | | Retained Earnings | $1.12 billion | $1.13 billion | $1.10 billion | $1.06 billion | | Accumulated Other Comprehensive (Loss) Income | $(121.8) | $(109.5) | $(142.1) | $(162.9) | | Common Stock in Treasury | $(174.7) | $(174.4) | $(175.3) | $(175.8) | | Total Stockholders' Equity | $1.57 billion | $1.81 billion | $1.53 billion | $1.46 billion | - Total stockholders' equity increased by **$279.0 million** from December 31, 2024, to June 30, 2025, primarily due to the Evans acquisition (**$221.8 million** in common stock issuance) and net income generation, partially offset by dividends[17](index=17&type=chunk)[208](index=208&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section details the cash inflows and outflows from operating, investing, and financing activities over specific periods Consolidated Statements of Cash Flows (in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $88.5 | $87.3 | | Net cash provided by (used in) investing activities | $218.7 | $(193.6) | | Net cash (used in) provided by financing activities | $(49.7) | $108.6 | | Net increase in cash and cash equivalents | $257.5 | $2.3 | | Cash and cash equivalents at end of period | $541.6 | $207.5 | - Net cash provided by investing activities significantly increased to **$218.7 million** for the six months ended June 30, 2025, compared to a net outflow of **$193.6 million** in the prior year, largely influenced by acquisitions and securities activities[18](index=18&type=chunk) - Cash and cash equivalents at period end more than doubled to **$541.6 million** as of June 30, 2025, from **$207.5 million** in the prior year[18](index=18&type=chunk) [Notes to Unaudited Interim Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Interim%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the interim consolidated financial statements [1. Description of Business](index=10&type=section&id=1.%20Description%20of%20Business) This note outlines NBT Bancorp Inc.'s core operations as a financial holding company and its recent strategic acquisition - NBT Bancorp Inc. is a Delaware-incorporated financial holding company, primarily providing commercial banking, retail banking, and wealth management services through its subsidiary NBT Bank, National Association[20](index=20&type=chunk)[21](index=21&type=chunk) - The Company completed the acquisition of Evans Bancorp, Inc. on May 2, 2025, expanding its presence in Western New York[21](index=21&type=chunk) [2. Summary of Significant Accounting Policies](index=10&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This note summarizes the significant accounting policies used in preparing the interim consolidated financial statements - The interim consolidated financial statements are unaudited and include normal recurring adjustments, prepared in accordance with GAAP and SEC regulations[22](index=22&type=chunk) - Preparation of financial statements requires management estimates and assumptions, particularly for the allowance for credit losses, which are susceptible to material change[23](index=23&type=chunk) [3. Recent Accounting Pronouncements](index=10&type=section&id=3.%20Recent%20Accounting%20Pronouncements) This note discusses recent accounting pronouncements and their anticipated impact on the company's financial statements - ASU 2023-09 (Improvements to Income Tax Disclosures) is effective for annual periods after December 15, 2024, requiring enhanced disclosures but not expected to materially impact financial statements[24](index=24&type=chunk) - ASU 2024-03 (Expense Disaggregation Disclosures) is effective for annual periods after December 15, 2026, requiring tabular disaggregation of certain income statement expenses, not expected to materially impact financial statements[25](index=25&type=chunk) [4. Acquisitions](index=11&type=section&id=4.%20Acquisitions) This note details the financial impact and key terms of the Evans Bancorp, Inc. acquisition completed in May 2025 - On May 2, 2025, NBT Bancorp Inc. completed the acquisition of Evans Bancorp, Inc. for **$221.8 million** in common stock, acquiring **$2.19 billion** in assets and recognizing **$91.4 million** in preliminary goodwill[26](index=26&type=chunk) Evans Bancorp, Inc. Acquisition (May 2, 2025) (in millions) | Item | Amount | | :-------------------------------------------------- | :----- | | Total net consideration | $221.8 | | Total identifiable assets acquired | $2.13 billion | | Total liabilities assumed | $(2.00) billion | | Total identifiable assets, net | $130.4 | | Goodwill | $91.4 | - Acquisition expenses related to the merger totaled **$17.2 million** for the three months and **$18.4 million** for the six months ended June 30, 2025[37](index=37&type=chunk) [5. Securities](index=13&type=section&id=5.%20Securities) This note provides details on the company's investment securities portfolio, including available-for-sale and held-to-maturity categories Available for Sale (AFS) Securities (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Amortized Cost | $1.85 billion | $1.74 billion | | Estimated Fair Value | $1.73 billion | $1.57 billion | | Unrealized Gains | $2.5 | $0.3 | | Unrealized Losses | $(125.4) | $(164.9) | Held to Maturity (HTM) Securities (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Amortized Cost | $809.7 | $842.9 | | Estimated Fair Value | $735.4 | $749.9 | | Unrealized Gains | $0.1 | $0.04 | | Unrealized Losses | $(74.4) | $(93.0) | - The Company does not believe AFS securities in an unrealized loss position represent a credit loss impairment, as losses are primarily due to interest rate changes, not credit quality, and the Company does not intend to sell them before recovery[53](index=53&type=chunk) [6. Loans](index=16&type=section&id=6.%20Loans) This note details the composition and growth of the company's loan portfolio, including commercial, real estate, and consumer loans Loan Portfolio Summary (in billions) | Category | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | Commercial & industrial | $1.69 | $1.43 | | Commercial real estate | $4.80 | $3.88 | | Residential real estate | $2.53 | $2.14 | | Home equity | $0.42 | $0.33 | | Indirect auto | $1.32 | $1.27 | | Residential solar | $0.78 | $0.82 | | Other consumer | $0.08 | $0.10 | | **Total loans** | **$11.62** | **$9.97** | - Total loans increased by **$1.65 billion** (16.5%) from December 31, 2024, to June 30, 2025, including **$1.67 billion** of loans acquired from Evans[55](index=55&type=chunk)[178](index=178&type=chunk) [7. Allowance for Credit Losses and Credit Quality of Loans](index=17&type=section&id=7.%20Allowance%20for%20Credit%20Losses%20and%20Credit%20Quality%20of%20Loans) This note details the allowance for credit losses, credit quality trends, and the CECL model's impact on loan loss provisioning Allowance for Credit Losses (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Allowance for credit losses | $140.2 | $116.0 | | Allowance for credit losses as % of loans | 1.21% | 1.16% | - The allowance for credit losses increased by **$24.2 million** (20.9%) from December 31, 2024, to June 30, 2025, primarily due to **$20.7 million** for acquired Evans loans and a modest deterioration in economic forecasts[57](index=57&type=chunk)[65](index=65&type=chunk)[189](index=189&type=chunk) - The Company's CECL model for June 30, 2025, incorporated a baseline (70%), upside (5%), and two equally weighted downside scenarios (25% total) including recessionary and stagflation conditions, reflecting management's expectations and emerging risks[59](index=59&type=chunk)[142](index=142&type=chunk) Allowance for Credit Losses Activity (Q2 2025 vs Q2 2024, in millions) | Metric | Q2 2025 | Q2 2024 | | :------------------------------------ | :------ | :------ | | Provision for loan losses | $17.8 | $8.9 | | Charge-offs | $(4.4) | $(5.6) | | Recoveries | $2.1 | $1.9 | [8. Short-Term Borrowings](index=25&type=section&id=8.%20Short-Term%20Borrowings) This note provides a summary of the company's short-term borrowing activities and outstanding balances Short-Term Borrowings (in millions) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Securities sold under repurchase agreements | $113.0 | $146.9 | | Other short-term borrowings | $- | $16.0 | | **Total short-term borrowings** | **$113.0** | **$162.9** | - Total short-term borrowings decreased by **$49.9 million** (30.6%) from December 31, 2024, to June 30, 2025[86](index=86&type=chunk)[198](index=198&type=chunk) [9. Defined Benefit Post-Retirement Plans](index=26&type=section&id=9.%20Defined%20Benefit%20Post-Retirement%20Plans) This note details the company's pension and post-retirement health care plans, including the impact of the Evans plan merger - The Company maintains a qualified, noncontributory defined benefit pension plan and supplemental employee retirement plans, along with post-retirement health care benefits for eligible employees[87](index=87&type=chunk) - The Evans defined benefit pension plan was merged into the Company's plan on May 2, 2025, resulting in a **$0.9 million** adjustment to AOCI but no significant impact on financial statements[87](index=87&type=chunk) Total Net Periodic Cost (Benefit) (in millions) | Plan Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------- | :------------------------------- | :------------------------------- | | Pension Benefits| $0.03 | $1.0 | | Other Benefits | $0.06 | $0.06 | [10. Earnings Per Share](index=27&type=section&id=10.%20Earnings%20Per%20Share) This note presents the basic and diluted earnings per share for various reporting periods Earnings Per Share (EPS) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic EPS | $0.45 | $0.69 | $1.21 | $1.41 | | Diluted EPS | $0.44 | $0.69 | $1.21 | $1.40 | - Diluted EPS for Q2 2025 decreased to **$0.44** from **$0.69** in Q2 2024, and for the six months ended June 30, 2025, decreased to **$1.21** from **$1.40** in the prior year[92](index=92&type=chunk) [11. Reclassification Adjustments Out of Other Comprehensive Income (Loss)](index=28&type=section&id=11.%20Reclassification%20Adjustments%20Out%20of%20Other%20Comprehensive%20Income%20(Loss)) This note details reclassification adjustments from other comprehensive income, net of tax, for various periods Total Reclassifications, Net of Tax (in millions) | Period | Amount | | :-------------------- | :----- | | Three Months Ended June 30, 2025 | $0.3 | | Three Months Ended June 30, 2024 | $1.2 | | Six Months Ended June 30, 2025 | $0.6 | | Six Months Ended June 30, 2024 | $1.6 | - Reclassification adjustments out of AOCI, net of tax, decreased significantly for both the three-month and six-month periods ended June 30, 2025, compared to the prior year, primarily driven by lower amortization of net losses from pension and other benefits[93](index=93&type=chunk) [12. Derivative Instruments and Hedging Activities](index=28&type=section&id=12.%20Derivative%20Instruments%20and%20Hedging%20Activities) This note describes the company's use of derivative instruments, primarily interest rate swaps, and their fair value measurements - The Company uses interest rate swaps to facilitate customer transactions, not for hedging its own interest rate risk, and manages a matched book to minimize net risk exposure[94](index=94&type=chunk)[95](index=95&type=chunk) Derivatives Not Designated as Hedging Instruments (in millions) | Metric (Assets) | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | Notional Amount (Interest rate derivatives) | $1.38 billion | $1.37 billion | | Fair Value (Interest rate derivatives) | $76.7 | $104.4 | | Notional Amount (Risk participation agreements) | $98.2 | $90.7 | | Fair Value (Risk participation agreements) | $0.09 | $0.06 | - The fair value of interest rate derivative assets decreased from **$104.4 million** at December 31, 2024, to **$76.7 million** at June 30, 2025[98](index=98&type=chunk) [13. Fair Value Measurements and Fair Value of Financial Instruments](index=30&type=section&id=13.%20Fair%20Value%20Measurements%20and%20Fair%20Value%20of%20Financial%20Instruments) This note explains the fair value hierarchy and provides a breakdown of financial assets measured at fair value - The Company classifies financial instruments into a fair value hierarchy (Level 1, 2, or 3) based on the observability of inputs used in valuation techniques[100](index=100&type=chunk)[101](index=101&type=chunk) Financial Assets Measured at Fair Value (in millions) | Category | Level 1 (June 30, 2025) | Level 2 (June 30, 2025) | Level 3 (June 30, 2025) | Total (June 30, 2025) | | :------- | :---------------------- | :---------------------- | :---------------------- | :-------------------- | | AFS securities | $100.2 | $1.63 billion | $- | $1.73 billion | | Equity securities | $45.7 | $1.0 | $- | $46.7 | | Derivatives | $- | $59.4 | $- | $59.4 | | **Total Assets** | **$145.9** | **$1.69 billion** | **$-** | **$1.84 billion** | - Loans with a fair value of **$14.3 million** as of June 30, 2025, were individually evaluated for expected credit losses, with fair value measurements classified as Level 3[106](index=106&type=chunk) [14. Commitments and Contingencies](index=32&type=section&id=14.%20Commitments%20and%20Contingencies) This note outlines the company's commitments to extend credit, standby letters of credit, and legal contingencies - Commitments to extend credit and unused lines of credit totaled **$3.41 billion** at June 30, 2025, up from **$2.84 billion** at December 31, 2024[117](index=117&type=chunk) - Standby letters of credit increased to **$58.6 million** at June 30, 2025, from **$50.8 million** at December 31, 2024[119](index=119&type=chunk) - The Company accrues for material estimated losses from legal contingencies when probable and reasonably estimable[120](index=120&type=chunk) [15. Segment Reporting](index=33&type=section&id=15.%20Segment%20Reporting) This note presents financial performance by the company's two reportable segments: Banking and Retirement Plan Administration - In accordance with ASU 2023-07, the Company now operates through two reportable segments: Banking and Retirement Plan Administration, to enhance transparency in financial performance evaluation[121](index=121&type=chunk)[122](index=122&type=chunk) Net Income by Segment (Three Months Ended June 30, 2025, in millions) | Segment | Net Income | | :--------------------------- | :--------- | | Banking | $16.6 | | Retirement Plan Administration | $4.8 | | All Other | $1.1 | | **Consolidated** | **$22.5** | Net Income by Segment (Six Months Ended June 30, 2025, in millions) | Segment | Net Income | | :--------------------------- | :--------- | | Banking | $46.5 | | Retirement Plan Administration | $10.1 | | All Other | $2.6 | | **Consolidated** | **$59.3** | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=38&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section analyzes NBT Bancorp Inc.'s financial condition and results, focusing on key performance indicators, critical estimates, and the Evans acquisition impact [Forward-Looking Statements](index=38&type=section&id=Forward-Looking%20Statements) This section highlights forward-looking statements, emphasizing inherent risks and the potential for actual results to differ materially - The report contains forward-looking statements subject to various factors beyond the Company's control, including economic conditions, interest rates, regulatory changes, and acquisition integration, which could cause actual results to differ materially[135](index=135&type=chunk) - The Company advises readers not to place undue reliance on these statements and disclaims any obligation to publicly release revisions unless required by law[136](index=136&type=chunk)[137](index=137&type=chunk) [Non-GAAP Measures](index=39&type=section&id=Non-GAAP%20Measures) This section explains the use of non-GAAP financial measures, their reconciliation to GAAP, and their purpose for management insights - The report includes non-GAAP financial information, which management believes provides useful insights into the Company's core business and is standard in the financial institution industry[138](index=138&type=chunk) - Non-GAAP measures are reconciled to comparable GAAP measures and should not be considered a substitute for GAAP-compliant financial statements[138](index=138&type=chunk) [Critical Accounting Estimates](index=39&type=section&id=Critical%20Accounting%20Estimates) This section identifies critical accounting estimates, such as the allowance for credit losses, and discusses their inherent uncertainties - The allowance for credit losses and unfunded commitments are identified as critical accounting estimates due to significant estimation uncertainty and potential material impact on financial results[139](index=139&type=chunk)[140](index=140&type=chunk) - The CECL methodology requires estimating lifetime credit losses based on past events, current conditions, and reasonable forecasts, with management judgment heavily influencing the allowance level[140](index=140&type=chunk)[141](index=141&type=chunk) - Sensitivity analysis shows that a 10% increase in downside scenario weighting for macroeconomic forecasts could lead to a **4%** increase in the overall estimated allowance for credit losses[143](index=143&type=chunk) [Evans Bancorp, Inc. Merger](index=40&type=section&id=Evans%20Bancorp%2C%20Inc.%20Merger) This section details the strategic acquisition of Evans Bancorp, Inc., outlining its financial impact and integration - The acquisition of Evans Bancorp, Inc. was completed on May 2, 2025, for **$221.8 million** in stock, significantly enhancing the Company's presence in Western New York[145](index=145&type=chunk) - The merger resulted in the acquisition of **$1.67 billion** of loans, **$255.5 million** in AFS investment securities, **$33.2 million** of core deposit intangibles, and **$1.86 billion** in deposits[145](index=145&type=chunk) - Acquisition expenses totaled **$17.2 million** and **$18.4 million** for the three and six months ended June 30, 2025, respectively[146](index=146&type=chunk) [Executive Summary](index=41&type=section&id=Executive%20Summary) This summary highlights key financial performance metrics and strategic developments for the reporting period Key Performance Highlights (Q2 2025 vs Q2 2024) (in millions) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :------------------------------------ | :------ | :------ | :----------- | | Net income | $22.5 | $32.7 | $(10.2) | | Diluted EPS | $0.44 | $0.69 | $(0.25) | | Operating net income (non-GAAP) | $44.9 | $32.8 | $12.1 | | Operating diluted EPS (non-GAAP) | $0.88 | $0.69 | $0.19 | - Net interest income for Q2 2025 increased by **$27.0 million** (27.8%) YoY to **$124.2 million**[152](index=152&type=chunk) - Period-end total loans increased by **$1.65 billion**, and total deposits increased by **$1.97 billion** from December 31, 2024, largely due to the Evans acquisition[152](index=152&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including net interest income, noninterest income, and expenses [Net Interest Income](index=42&type=section&id=Net%20Interest%20Income) This section analyzes the components and trends of net interest income and net interest margin Net Interest Income (in millions) | Period | Net Interest Income | | :-------------------- | :------------------ | | Three Months Ended June 30, 2025 | $124.2 | | Three Months Ended March 31, 2025 | $107.2 | | Three Months Ended June 30, 2024 | $97.2 | | Six Months Ended June 30, 2025 | $231.4 | | Six Months Ended June 30, 2024 | $192.3 | - Net interest income for Q2 2025 increased by **$17.0 million** (15.9%) QoQ and **$27.0 million** (27.8%) YoY, driven by higher interest-earning assets from the Evans acquisition and organic growth[152](index=152&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) FTE Net Interest Margin (NIM) | Period | FTE NIM | | :-------------------- | :------ | | Three Months Ended June 30, 2025 | 3.59% | | Three Months Ended March 31, 2025 | 3.44% | | Three Months Ended June 30, 2024 | 3.18% | | Six Months Ended June 30, 2025 | 3.52% | | Six Months Ended June 30, 2024 | 3.16% | - FTE NIM increased by **15 bps** QoQ and **41 bps** YoY for Q2 2025, reaching **3.59%**[155](index=155&type=chunk)[156](index=156&type=chunk) [Noninterest Income](index=47&type=section&id=Noninterest%20Income) This section analyzes the various sources and trends of the company's noninterest income Total Noninterest Income (in millions) | Period | Total Noninterest Income | | :-------------------- | :----------------------- | | Three Months Ended June 30, 2025 | $46.9 | | Three Months Ended March 31, 2025 | $47.5 | | Three Months Ended June 30, 2024 | $43.2 | | Six Months Ended June 30, 2025 | $94.4 | | Six Months Ended June 30, 2024 | $88.6 | - Noninterest income for Q2 2025 decreased by **$0.5 million** (1.1%) QoQ but increased by **$3.7 million** (8.6%) YoY[166](index=166&type=chunk) - The YoY increase was driven by higher card services income (due to Evans acquisition and increased volumes), retirement plan administration fees (higher market values and TPA acquisition), and wealth management fees (market performance and new accounts)[166](index=166&type=chunk)[167](index=167&type=chunk) [Noninterest Expense](index=48&type=section&id=Noninterest%20Expense) This section analyzes the various components and trends of the company's noninterest expenses Total Noninterest Expense (in millions) | Period | Total Noninterest Expense | | :-------------------- | :------------------------ | | Three Months Ended June 30, 2025 | $122.6 | | Three Months Ended March 31, 2025 | $99.9 | | Three Months Ended June 30, 2024 | $89.6 | | Six Months Ended June 30, 2025 | $222.5 | | Six Months Ended June 30, 2024 | $181.4 | - Total noninterest expense for Q2 2025 increased by **$22.7 million** (22.7%) QoQ and **$33.0 million** (36.9%) YoY, primarily due to the Evans acquisition and related expenses[169](index=169&type=chunk) - Excluding acquisition expenses, noninterest expense increased by **$6.8 million** (6.8%) QoQ and **$15.8 million** (17.7%) YoY, driven by higher salaries and benefits, technology and data services, occupancy, and amortization of intangible assets[169](index=169&type=chunk)[170](index=170&type=chunk) [Income Taxes](index=49&type=section&id=Income%20Taxes) This section analyzes the company's income tax expense and effective tax rate for various periods Income Tax Expense (in millions) | Period | Income Tax Expense | | :-------------------- | :----------------- | | Three Months Ended June 30, 2025 | $8.2 | | Three Months Ended March 31, 2025 | $10.5 | | Three Months Ended June 30, 2024 | $9.2 | | Six Months Ended June 30, 2025 | $18.7 | | Six Months Ended June 30, 2024 | $18.6 | Effective Tax Rate | Period | Effective Tax Rate | | :-------------------- | :----------------- | | Three Months Ended June 30, 2025 | 26.7% | | Three Months Ended March 31, 2025 | 22.2% | | Three Months Ended June 30, 2024 | 22.0% | | Six Months Ended June 30, 2025 | 24.0% | | Six Months Ended June 30, 2024 | 21.8% | - The effective tax rate increased to **26.7%** in Q2 2025 from **22.0%** in Q2 2024, primarily due to the estimated impact of acquisition expenses related to the Evans acquisition and a lower percentage of tax-exempt income[172](index=172&type=chunk)[173](index=173&type=chunk) [Analysis of Financial Condition](index=49&type=section&id=Analysis%20of%20Financial%20Condition) This section provides an in-depth analysis of the company's balance sheet components, including securities, loans, deposits, and capital [Securities](index=49&type=section&id=Securities) This section analyzes the composition and changes in the company's investment securities portfolio - Total securities increased by **$125.8 million** (5.1%) from December 31, 2024, to June 30, 2025, but represented a smaller percentage of total assets (**16.1%** vs. **17.8%**)[175](index=175&type=chunk) Securities Portfolio Composition | Category | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Mortgage-backed securities (15 years or less) | 16% | 14% | | Mortgage-backed securities (greater than 15 years) | 7% | 9% | | Collateral mortgage obligations | 40% | 39% | | Municipal securities | 14% | 15% | | U.S. agency notes | 20% | 20% | | Corporate | 1% | 2% | | Equity securities | 2% | 2% | [Loans](index=50&type=section&id=Loans) This section analyzes the growth and composition of the company's loan portfolio by category - Total loans increased by **$1.65 billion** to **$11.62 billion** at June 30, 2025, from **$9.97 billion** at December 31, 2024, with **$1.67 billion** attributed to the Evans acquisition[178](index=178&type=chunk) - Commercial & Industrial (C&I) loans increased by **$265.9 million**, Commercial Real Estate (CRE) loans increased by **$923.8 million**, and total consumer loans increased by **$465.1 million**[178](index=178&type=chunk) - CRE construction and development loans amounted to **$423.3 million** at June 30, 2025, up from **$314.8 million** at December 31, 2024[180](index=180&type=chunk) [Allowance for Credit Losses, Provision for Loan Losses and Nonperforming Assets](index=50&type=section&id=Allowance%20for%20Credit%20Losses%2C%20Provision%20for%20Loan%20Losses%20and%20Nonperforming%20Assets) This section analyzes the allowance for credit losses, provision for loan losses, and trends in nonperforming assets Allowance for Credit Losses and Nonperforming Loans (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Allowance for credit losses | $140.2 | $116.0 | | Allowance for credit losses as % of loans | 1.21% | 1.16% | | Total nonperforming loans | $46.4 | $51.6 | | Total nonperforming loans as % of total loans | 0.40% | 0.52% | | Allowance for loan losses to total nonperforming loans | 302.21% | 224.73% | - The allowance for credit losses increased to **$140.2 million** at June 30, 2025, from **$117.0 million** at March 31, 2025, primarily due to **$20.7 million** for acquired Evans loans and a modest deterioration in economic forecasts[189](index=189&type=chunk) - Total nonperforming assets decreased to **$46.7 million** at June 30, 2025, from **$51.8 million** at December 31, 2024, mainly due to payoffs of nonaccrual loans, partially offset by acquired nonperforming loans from Evans[195](index=195&type=chunk) - Potential problem loans increased to **$195.3 million** at June 30, 2025, from **$116.1 million** at December 31, 2024, largely due to **$60.5 million** in acquired commercial loans from Evans and migration of commercial loan balances to substandard[196](index=196&type=chunk) [Deposits](index=53&type=section&id=Deposits) This section analyzes the growth, composition, and uninsured status of the company's deposit base - Total deposits reached **$13.52 billion** at June 30, 2025, an increase of **$1.97 billion** (17.0%) from December 31, 2024, including **$1.86 billion** from the Evans acquisition[197](index=197&type=chunk) - Excluding acquired deposits, deposits increased by **$104.4 million**, with an improved deposit mix showing increases in demand, interest-bearing checking, and money market accounts, offset by a decrease in time deposits[197](index=197&type=chunk) - Estimated uninsured deposits were **$5.80 billion** at June 30, 2025, compared to **$4.73 billion** at December 31, 2024[197](index=197&type=chunk) [Borrowed Funds](index=53&type=section&id=Borrowed%20Funds) This section details the company's short-term and long-term borrowing activities and balances Borrowed Funds (in millions) | Category | June 30, 2025 | December 31, 2024 | | :------------------ | :------------ | :---------------- | | Short-term borrowings | $113.0 | $162.9 | | Long-term debt | $44.8 | $29.6 | - Short-term borrowings decreased by **$49.9 million**, while long-term debt increased by **$15.2 million**, primarily due to a **$40.0 million** borrowing acquired in the Evans acquisition, partially offset by a **$25.0 million** maturity[198](index=198&type=chunk) [Subordinated Debt](index=53&type=section&id=Subordinated%20Debt) This section details the company's subordinated debt, including acquired notes and recent redemptions - Subordinated debt, net of unamortized issuance costs and fair value discount, was **$141.9 million** at June 30, 2025, up from **$121.2 million** at December 31, 2024[203](index=203&type=chunk) - The Company assumed **$20.0 million** of 6.00% fixed-to-floating rate subordinated notes due 2030 in the Evans acquisition, which were subsequently redeemed on July 15, 2025[202](index=202&type=chunk) - The Company redeemed **$100.0 million** of 5.00% fixed-to-floating rate subordinated notes due 2030 on July 1, 2025[200](index=200&type=chunk) [Junior Subordinated Debt](index=53&type=section&id=Junior%20Subordinated%20Debt) This section discusses junior subordinated debt, including acquired trusts and their regulatory capital treatment - In connection with the Evans acquisition, the Company assumed Evans Capital Trust I, which issued **$11.0 million** in floating rate preferred capital securities[204](index=204&type=chunk) - As of June 30, 2025, with the Company exceeding **$15 billion** in assets, the Trusts (including Evans Capital Trust I) are now included in Tier 2 capital for regulatory purposes, having previously been grandfathered into Tier 1[207](index=207&type=chunk) [Capital Resources](index=54&type=section&id=Capital%20Resources) This section analyzes the company's capital measurements, including stockholders' equity and regulatory capital ratios Capital Measurements | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Stockholders' equity (in millions) | $1.81 billion | $1.53 billion | | Equity to assets | 11.27% | 11.07% | | Tier 1 leverage ratio | 9.55% | 10.24% | | Common equity tier 1 capital ratio | 11.37% | 11.93% | | Tier 1 capital ratio | 11.37% | 12.83% | | Total risk-based capital ratio | 14.48% | 15.03% | - Stockholders' equity increased by **$279.0 million** from December 31, 2024, driven by the Evans acquisition (**$221.8 million**), net income, and a decrease in accumulated other comprehensive loss[208](index=208&type=chunk) - The Company remained 'well capitalized' at June 30, 2025, with capital ratios well in excess of regulatory minimums[210](index=210&type=chunk) [Liquidity and Interest Rate Sensitivity Management](index=54&type=section&id=Liquidity%20and%20Interest%20Rate%20Sensitivity%20Management) This section discusses the company's strategies for managing liquidity risk and interest rate sensitivity [Market Risk](index=54&type=section&id=Market%20Risk) This section addresses interest rate risk as the primary market risk and its management through ALCO strategies - Interest rate risk is the most significant market risk, managed by the Asset Liability Committee (ALCO) through monitoring interest rate positions, profitability, and recommending strategies to the Board[214](index=214&type=chunk)[215](index=215&type=chunk) - The Company's Interest Rate Sensitivity remained in a near neutral position, with projected modest decreases in net interest income in declining rate scenarios and modest increases in rising rate scenarios[218](index=218&type=chunk) Interest Rate Sensitivity Analysis (12-month period) | Change in interest rates (in bps) | Percent change in net interest income | | :-------------------------------- | :------------------------------------ | | +300 | 0.69% | | +200 | 0.84% | | +100 | 0.72% | | -100 | (0.74)% | | -200 | (0.94)% | | -300 | (1.02)% | [Liquidity Risk](index=55&type=section&id=Liquidity%20Risk) This section evaluates the company's liquidity position, including basic surplus and additional borrowing capacity - The Company's primary liquidity measurement, 'Basic Surplus,' was **16.4%** of total assets (**$2.63 billion**) at June 30, 2025, exceeding the minimum policy level of **5%**[221](index=221&type=chunk) - The Bank had additional borrowing capacity of approximately **$1.83 billion** from the FHLB and **$1.17 billion** from the FRB's 'Borrower-in-Custody' program at June 30, 2025[222](index=222&type=chunk) - Despite a strong Basic Surplus, the Company acknowledges potential adverse impacts on liquidity in 2025 due to elevated interest rates, deposit declines, and increased competition for deposits[223](index=223&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=57&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section refers to the 'Liquidity and Interest Rate Sensitivity Management' section for detailed market risk disclosures - Information on quantitative and qualitative disclosures about market risk is provided in the 'Liquidity and Interest Rate Sensitivity Management' section of the MD&A[228](index=228&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=57&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025 - The Company's disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025[229](index=229&type=chunk) PART II OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=57&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is not involved in any material legal proceedings beyond routine litigation incidental to its business - There are no material legal proceedings against the Company or its subsidiaries, beyond ordinary routine litigation[230](index=230&type=chunk) [ITEM 1A. RISK FACTORS](index=57&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to the risk factors have occurred since the 2024 Annual Report on Form 10-K - No material changes to risk factors have occurred since the 2024 Annual Report on Form 10-K[231](index=231&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=57&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section reports no unregistered sales of equity securities or use of proceeds for the period - No unregistered sales of equity securities or use of proceeds to report[232](index=232&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=57&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This section reports no defaults upon senior securities for the period - No defaults upon senior securities to report[232](index=232&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=57&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This section reports no mine safety disclosures for the period - No mine safety disclosures to report[232](index=232&type=chunk) [ITEM 5. OTHER INFORMATION](index=57&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No Rule 10b5-1 plans or trading arrangements were adopted, modified, or terminated by directors or officers in Q2 2025 - No Rule 10b5-1 plans or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers during Q2 2025[232](index=232&type=chunk) [ITEM 6. EXHIBITS](index=57&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including organizational documents and certifications - The exhibits include the Restated Certificate of Incorporation, Amended and Restated Bylaws, Certificate of Designation, and certifications by the CEO and CFO[233](index=233&type=chunk) SIGNATURES - The report was signed on August 8, 2025, by Annette L. Burns, Chief Financial Officer of NBT Bancorp Inc.[235](index=235&type=chunk)

Financial Data and Key Metrics Changes - The company reported net income of $22.5 million or $0.44 per diluted common share, with operating earnings per share increasing to $0.88, an increase of $0.08 compared to the prior quarter [11] - Operating return on assets was 1.19%, return on equity was 10.5%, and ROTCE was 15.25%, showing continued improvement [5] - Revenues grew approximately 10.5% from the prior quarter and 22% from the same quarter last year, driven by improvements in net interest income [11] Business Line Data and Key Metrics Changes - The company added approximately $1.7 billion in loans from the Evans merger, with total loans growing nearly 1% from December 2024, despite some decreases in residential mortgage and commercial real estate [12] - Non-interest income was $46.8 million, reflecting a seasonal decrease of 1.5% compared to the previous quarter but an increase of 8% from the previous year [16] - Total deposits increased to $13.5 billion, up almost $2 billion from December 2024, with a notable increase in demand deposits and savings accounts [13] Market Data and Key Metrics Changes - The company is actively engaged in the semiconductor chip corridor in Upstate New York, supporting customers and communities involved in semiconductor and advanced electronics manufacturing [6] - The company noted a positive response from customers and communities following the Evans merger, indicating strong market engagement [10] Company Strategy and Development Direction - The company aims to support strategic growth initiatives through continued capital strength and diversification of revenue streams [5] - The management expressed a focus on enhancing shareholder value and growing stronger together post-merger [10] - The company is evaluating M&A opportunities while ensuring integration and cultural alignment following the Evans acquisition [67] Management's Comments on Operating Environment and Future Outlook - Management noted that uncertainty in the market has caused some hesitation in business activity, but the loan pipeline remains strong [42] - The company expects to see continued growth in net interest income and fee-based income, contributing to positive operating leverage [19] - Management indicated that while competition remains, they are focused on supporting customers and building holistic banking relationships [46] Other Important Information - The company completed the sale of a $255 million securities portfolio, contributing to increased liquidity [13] - The merger with Evans Bancorp added significant assets, including $1.9 billion in deposits and approximately 100,000 new accounts [8] Q&A Session Summary Question: What does a 25 basis point rate cut mean for your margin? - Management indicated a neutral position regarding rate cuts, with about $2.5 billion in loans repricing immediately and 40% of the deposit base also able to reprice downward [24][25] Question: How are you thinking about the net interest margin for Q3? - Management expects a slight improvement in net interest margin due to additional accretion from the Evans acquisition and continued repricing of earning assets [27][72] Question: What is the size of the opportunity for revenue synergies post-Evans deal? - Management sees significant opportunities in wealth management and insurance, with plans to expand their advisor base and services [30][31] Question: Are there any lending areas of concern? - Management stated there are no significant concerns regarding asset quality but emphasized a focus on building banking relationships [33] Question: What is the expected run rate for non-interest expenses in Q3? - Management estimated non-interest expenses to be around $105 million, with an additional $11 million to $12 million from the Evans acquisition [35] Question: What are the plans for liquidity deployment? - Management noted increased liquidity post-Evans transaction and plans to support loan growth while maintaining strong balance sheet liquidity [58][59] Question: What is the outlook for M&A in the current environment? - Management is focused on integration post-Evans and is methodically evaluating M&A opportunities that align with their community banking culture [67]

Financial Performance - Earnings per share (EPS) was reported at $0.44, with operating EPS reaching $0.88[10] - Return on average tangible equity (ROATCE) was 8.01% reported and 15.25% operating[10] - Total revenue reached $171 million[10] - Net interest income increased by 15.9% from the previous quarter, and the net interest margin increased by 15 bps[12] - Stockholders' equity grew by $279 million, or 18.3%, from December 31, 2024[13] Balance Sheet - Period-end loans totaled $11.62 billion[10] - Period-end deposits totaled $13.52 billion, a 203 bps increase compared to Q2 2024[10] - Total loans increased by $1.64 billion from Q1 2025 and $1.77 billion from Q2 2024, representing increases of 16.5% and 18.0% respectively[21] - Total deposits increased by $1.81 billion from Q1 2025 and $2.24 billion from Q2 2024, representing increases of 15.4% and 19.9% respectively[21] Evans Bancorp Merger - The merger with Evans Bancorp, Inc added 18 banking offices, $2.22 billion in assets, $1.67 billion in loans, and $1.86 billion in deposits[6] - 5.1 million shares were issued for the Evans acquisition, valued at $221.8 million as of the closing date[13, 19]

Core Insights - NBT Bancorp reported a revenue of $171.81 million for the quarter ended June 2025, reflecting a year-over-year increase of 22.4% [1] - The earnings per share (EPS) for the same quarter was $0.88, up from $0.69 in the previous year, with an EPS surprise of +7.32% compared to the consensus estimate of $0.82 [1] Financial Performance Metrics - The net interest margin (FTE) was reported at 3.6%, slightly above the estimated 3.5% [4] - Total interest-earning assets averaged $13.96 billion, which was below the estimated $14.03 billion [4] - Net charge-offs to average loans were 0.1%, better than the estimated 0.2% [4] - Total noninterest income was $46.93 million, falling short of the $47.79 million estimate [4] - Insurance services generated $4.1 million, close to the estimated $4.13 million [4] - Retirement plan administration fees reached $15.71 million, exceeding the estimated $14.91 million [4] - Wealth management income was $10.68 million, slightly below the estimated $10.79 million [4] - Other income was reported at $3.5 million, significantly lower than the estimated $4.28 million [4] - Service charges on deposit accounts totaled $4.58 million, in line with the estimated $4.6 million [4] - Net interest income (FTE) was $124.88 million, surpassing the estimated $121.77 million [4] - Card services income was $6.08 million, above the estimated $5.88 million [4] Stock Performance - NBT Bancorp's shares have returned -1.2% over the past month, contrasting with the Zacks S&P 500 composite's +4.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Company Performance - NBT Bancorp reported quarterly earnings of $0.88 per share, exceeding the Zacks Consensus Estimate of $0.82 per share, and up from $0.69 per share a year ago, representing an earnings surprise of +7.32% [1] - The company posted revenues of $171.81 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.69%, compared to year-ago revenues of $140.41 million [2] - Over the last four quarters, NBT has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Market Performance - NBT shares have declined approximately 13.4% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The current Zacks Rank for NBT is 4 (Sell), indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.94 on revenues of $183.04 million, and for the current fiscal year, it is $3.47 on revenues of $692.24 million [7] - The outlook for the industry, specifically the Banks - Northeast sector, is favorable, ranking in the top 15% of over 250 Zacks industries, which historically outperform the bottom 50% by more than 2 to 1 [8]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) NBT Bancorp Inc. reported Q2 2025 net income of $22.5 million and diluted EPS of $0.44; operating diluted EPS increased 28% year-over-year and 10% quarter-over-quarter, significantly impacted by the Evans Bancorp, Inc. acquisition completed on May 2, 2025 Financial Performance Summary | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------- | :--------------- | :--------------- | :--------------- | | Net Income (million USD) | 22.5 | 36.7 | 32.7 | | Diluted EPS (USD) | 0.44 | 0.77 | 0.69 | | Operating Diluted EPS (USD)| 0.88 | 0.80 | 0.69 | - Operating diluted EPS increased by **28%** compared to Q2 2024 and **10%** compared to Q1 2025[4](index=4&type=chunk) - The company completed the acquisition of Evans Bancorp, Inc. on May 2, 2025, adding **200 employees**, **18 banking locations**, **$167 million in loans**, and **$186 million in deposits**[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Scott Kingsley highlighted sustained Net Interest Margin improvement and the positive impact of the Evans Bancorp, Inc. merger, driving significant operating earnings growth, and announced a 8.8% dividend increase to $0.37 per share for the thirteenth consecutive year - CEO Scott Kingsley stated that sustained Net Interest Margin improvement and the positive impact of the Evans Bancorp, Inc. merger led to a **28% year-over-year** and **10% quarter-over-quarter** increase in operating EPS for Q2[4](index=4&type=chunk) - The company increased its dividend for the **thirteenth consecutive year**, raising the Q3 cash dividend by **8.8%** to **$0.37 per share**[4](index=4&type=chunk) [Financial Performance Overview](index=2&type=section&id=Financial%20Performance%20Overview) [Net Income and EPS](index=2&type=section&id=Net%20Income%20and%20EPS) Q2 2025 net income was $22.5 million, with diluted EPS of $0.44; operating net income was $44.9 million, and operating diluted EPS was $0.88 Key Income and EPS Metrics | Metric | Amount | | :--------------------- | :------------- | | Net Income | 22.5 million USD | | Diluted EPS | 0.44 USD | | Operating Net Income | 44.9 million USD | | Operating Diluted EPS | 0.88 USD | [Net Interest Income and Net Interest Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20NIM) Q2 2025 Net Interest Income (FTE) was $124.9 million, an increase of $17.0 million from the prior quarter, with FTE Net Interest Margin (NIM) at 3.59%, up 15 basis points quarter-over-quarter Net Interest Performance | Metric | Amount/Ratio | | :-------------------------------- | :---------- | | FTE Net Interest Income | 124.9 million USD | | Change from prior quarter | Increased by 17.0 million USD | | FTE Net Interest Margin (NIM) | 3.59% | | Change from prior quarter | Increased by 15 bps | | Yield on interest-earning assets | 5.12% | | Change from prior quarter | Increased by 17 bps | | Total cost of funds | 1.62% | | Change from prior quarter | Increased by 2 bps | | Acquisition-related net accretion (included in FTE Net Interest Income) | 5.0 million USD | | Change from Q1 2025 | Increased by 2.8 million USD | [Noninterest Income](index=2&type=section&id=Noninterest%20Income) Q2 2025 noninterest income was $46.8 million, representing 27% of total revenue (excluding securities gains/losses) Noninterest Income Summary | Metric | Amount/Ratio | | :-------------------------------- | :---------- | | Noninterest Income | 46.8 million USD | | Percentage of total revenue (excluding securities gains/losses) | 27% | [Loans and Credit Quality](index=2&type=section&id=Loans%20and%20Credit%20Quality) Period-end total loans were $11.62 billion as of June 30, 2025, including $167 million from the Evans acquisition, with an annualized net charge-off rate of 0.09%, nonperforming loans at 0.40% of total loans, and allowance for loan losses at 1.21% of total loans Loan and Credit Quality Metrics | Metric | Amount/Ratio | | :--------------------- | :-------------- | | Period-end Total Loans | 11.62 billion USD | | Of which, Evans acquired loans | 167 million USD | | Annualized Net Charge-off Rate | 0.09% | | Nonperforming Loans to Total Loans | 0.40% | | Allowance for Loan Losses to Total Loans | 1.21% | | Provision for Loan Losses | 17.8 million USD | | Of which, acquisition-related provision | 13.0 million USD | [Deposits](index=2&type=section&id=Deposits) Total deposits were $13.52 billion as of June 30, 2025, including $186 million from the Evans acquisition, with a total deposit cost of 1.51% in Q2 2025, up 2 basis points from Q1 Deposit Overview | Metric | Amount/Ratio | | :--------------------- | :-------------- | | Total Deposits | 13.52 billion USD | | Of which, Evans acquired deposits | 186 million USD | | Total Cost of Deposits | 1.51% | | Change from Q1 | Increased by 2 bps | [Capital](index=2&type=section&id=Capital) Shareholders' equity was $1.81 billion as of June 30, 2025, with tangible book value per share at $24.57, tangible common equity to total assets at 8.30%, CET1 ratio at 11.37%, and leverage ratio at 9.55% Capital Position | Metric | Amount/Ratio | | :--------------------- | :-------------- | | Shareholders' Equity | 1.81 billion USD | | Tangible Book Value Per Share | 24.57 USD | | Tangible Common Equity to Total Assets | 8.30% | | CET1 Ratio | 11.37% | | Leverage Ratio | 9.55% | [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) [Net Interest Income and Net Interest Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Q2 2025 net interest income was $124.2 million, up 15.9% quarter-over-quarter and 27.8% year-over-year, driven by the Evans acquisition, higher interest-earning asset yields, and improved Net Interest Margin (NIM), which reached 3.59%, up 15 bps quarter-over-quarter and 41 bps year-over-year Net Interest Income and Margin Trends | Metric | Q2 2025 | Change from Q1 2025 | Change from Q2 2024 | | :--------------------- | :--------------- | :------------------- | :------------------- | | Net Interest Income (million USD) | 124.2 | Increased by 17.0 (15.9%) | Increased by 27.0 (27.8%) | | FTE Net Interest Margin (NIM) | 3.59% | Increased by 15 bps | Increased by 41 bps | | Yield on interest-earning assets | 5.12% | Increased by 17 bps | Increased by 20 bps (YoY) | | Loan Yield | 5.77% | Increased by 15 bps | | | Total Cost of Deposits | 1.51% | Increased by 2 bps | Decreased by 17 bps (YoY) | | Total Cost of Funds | 1.62% | Increased by 2 bps | Decreased by 23 bps (YoY) | - The growth in net interest income was primarily attributable to the **Evans acquisition**, **higher yields on interest-earning assets**, and **improved Net Interest Margin**[6](index=6&type=chunk) - NBT completed the sale of Evans' available-for-sale investment securities portfolio in May, contributing to the increase in **short-term interest-bearing accounts** in Q2 2025[9](index=9&type=chunk) [Noninterest Income](index=4&type=section&id=Noninterest%20Income) Q2 2025 noninterest income (excluding securities gains/losses) was $46.8 million, a slight decrease of 1.5% quarter-over-quarter but an 8.1% increase year-over-year, with growth in card services revenue, retirement plan administration fees, and wealth management fees driven by the Evans acquisition, market performance, and new client accounts Noninterest Income Breakdown | Noninterest Income Category | Q2 2025 (million USD) | Change from Prior Quarter | Change from Q2 2024 | | :--------------- | :------------------------ | :------------- | :------------------- | | Total Noninterest Income (excluding securities gains/losses) | 46.8 | Decreased by 0.7 (1.5%) | Increased by 3.5 (8.1%) | | Card Services Revenue | | Increased by 0.8 | Increased by 0.5 | | Retirement Plan Administration Fees | | Flat | Increased by 0.9 (6.2%) | | Wealth Management Fees | | Flat | Increased by 0.5 (5.0%) | | Insurance Income | | Decreased by 0.7 | Increased by 6.5% | | Bank-Owned Life Insurance Income | | Decreased | | - Card services revenue growth was primarily driven by the **Evans acquisition** and **increased transaction volumes**[12](index=12&type=chunk) - Retirement plan administration fees benefited from **higher asset management market values** and a **small third-party administration business acquisition** in Q4 2024[12](index=12&type=chunk) - Wealth management fees increased due to **market performance** and **new client account growth**[12](index=12&type=chunk) [Noninterest Expense](index=4&type=section&id=Noninterest%20Expense) Q2 2025 total noninterest expense was $122.6 million, significantly increasing both quarter-over-quarter and year-over-year, primarily due to the Evans acquisition; excluding acquisition-related expenses, noninterest expense grew 6.8% quarter-over-quarter and 17.7% year-over-year Noninterest Expense Breakdown | Noninterest Expense Category | Q2 2025 (million USD) | Change from Q1 2025 | Change from Q2 2024 | | :--------------- | :------------------------ | :------------------- | :------------------- | | Total Noninterest Expense | 122.6 | Increased by 22.7 | Increased by 33.0 | | Total Noninterest Expense (excluding acquisition-related expenses) | | Increased by 6.8% | Increased by 17.7% | | Acquisition-Related Expenses | 17.2 | | | | Salaries and Benefits | | Increased by 5.7% | Increased | | Technology and Data Services | | Increased by 0.6 | Increased by 1.6 | | Amortization of Intangible Assets | | Increased by 0.9 | Increased by 0.9 | - Salaries and benefits increased primarily due to the **Evans acquisition adding 200 employees**, **full-quarter merit increases**, and **higher medical costs**[12](index=12&type=chunk) - Technology and data services expenses increased due to the **Evans acquisition**, **planned project timing**, and **ongoing investments in digital platform solutions**[12](index=12&type=chunk) - Amortization of intangible assets increased primarily due to **intangible asset amortization related to the Evans acquisition**[12](index=12&type=chunk) [Income Taxes](index=5&type=section&id=Income%20Taxes) The effective tax rate for Q2 2025 was 26.7%, higher than 22.0% in Q2 2024, mainly due to the estimated acquisition-related expenses from the Evans acquisition and a lower proportion of tax-exempt income to total taxable income Effective Tax Rate | Metric | Q2 2025 | Q2 2024 | | :----------- | :--------------- | :--------------- | | Effective Tax Rate | 26.7% | 22.0% | - The increase in the effective tax rate was primarily attributable to the **impact of estimated acquisition-related expenses from the Evans acquisition** and a **lower proportion of tax-exempt income to total taxable income**[13](index=13&type=chunk) [Balance Sheet and Asset Quality](index=2&type=section&id=Balance%20Sheet%20and%20Asset%20Quality) [Loans](index=2&type=section&id=Loans) Period-end total loans were $11.62 billion as of June 30, 2025, an increase of $1.65 billion from December 31, 2024, and $1.77 billion from June 30, 2024; excluding planned exit portfolios and Evans acquired loans, period-end loans grew 2.5% from June 30, 2024 Loan Balances | Metric | June 30, 2025 (billion USD) | Dec 31, 2024 (billion USD) | June 30, 2024 (billion USD) | | :-------------------------------- | :--------------------- | :---------------------- | :--------------------- | | Period-end Total Loans | 11.62 | 9.97 | 9.85 | | Change from Dec 31, 2024 | Increased by 1.65 | | | | Change from June 30, 2024 | Increased by 1.77 | | | | Loan growth excluding specific portfolios and Evans acquisition | | | Increased by 2.21 (2.5%) | [Deposits](index=2&type=section&id=Deposits) Total deposits were $13.52 billion as of June 30, 2025, an increase of $1.97 billion from December 31, 2024, and $2.25 billion from June 30, 2024; excluding Evans acquired deposits, deposits grew 3.4% from June 30, 2024, with an improved deposit mix including increases in demand, interest-bearing checking, and money market accounts, and a decrease in time deposits Deposit Balances and Mix | Metric | June 30, 2025 (billion USD) | Dec 31, 2024 (billion USD) | June 30, 2024 (billion USD) | | :-------------------------------- | :--------------------- | :---------------------- | :--------------------- | | Total Deposits | 13.52 | 11.55 | 11.27 | | Change from Dec 31, 2024 | Increased by 1.97 | | | | Change from June 30, 2024 | Increased by 2.25 | | | | Deposit growth excluding Evans acquisition | | Increased by 1.044 | Increased by 3.797 (3.4%) | | Loan-to-Deposit Ratio | 86.0% | 86.3% | 87.4% | - Deposit mix improved with **increases in demand, interest-bearing checking, and money market accounts**, and a **decrease in time deposits**[7](index=7&type=chunk) [Asset Quality and Allowance for Loan Losses](index=3&type=section&id=Asset%20Quality%20and%20Allowance%20for%20Loan%20Losses) The annualized net charge-off rate for Q2 2025 significantly decreased to 9 basis points, with nonperforming assets to total assets improving from 0.38% on December 31, 2024, to 0.29% on June 30, 2025; the allowance for loan losses increased to $140.2 million, primarily due to Evans acquisition-related provisions and a slight deterioration in economic forecasts Asset Quality Trends | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | | :-------------------------------- | :------------ | :------------ | :------------- | | Net Charge-off Rate (annualized) | 0.09% | 0.27% | | | Nonperforming Assets to Total Assets | 0.29% | 0.35% | 0.38% | | Allowance for Loan Losses (million USD) | 140.2 | 117.0 | 116.0 | | Allowance for Loan Losses to Total Loans | 1.21% | 1.17% | 1.16% | | Provision for Loan Losses (current quarter) | 17.8 million USD | 7.6 million USD | | | Of which, acquisition-related provision for loan losses | 13.0 million USD | | | | Evans acquisition loan portion of allowance for loan losses | 20.7 million USD | | | - Net charge-off rate decreased primarily due to **reduced net charge-offs in commercial and consumer loans**[9](index=9&type=chunk) - The increase in allowance for loan losses includes **$20.7 million for Evans acquired loans** and a **slight deterioration in economic forecasts**, partially offset by **portfolio mix changes from exiting other consumer and residential solar portfolios**[9](index=9&type=chunk) [Capital Management and Shareholder Returns](index=5&type=section&id=Capital%20Management%20and%20Shareholder%20Returns) [Capital Ratios](index=5&type=section&id=Capital%20Ratios) As of June 30, 2025, tangible common equity to tangible assets was 8.30%; shareholders' equity increased by $279 million from December 31, 2024, primarily driven by $221.8 million in capital from the Evans acquisition, $59.3 million in net income, and a $31.4 million reduction in accumulated other comprehensive loss, with a CET1 capital ratio of 11.37%, leverage ratio of 9.55%, and total risk-weighted capital ratio of 14.48% Capital Adequacy | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------- | :------------ | :------------ | :------------ | | Tangible Common Equity to Tangible Assets Ratio | 8.30% | 8.68% | 8.11% | | Tangible Book Value Per Share (USD) | 24.57 | 24.74 | 22.54 | | CET1 Capital Ratio | 11.37% | | | | Leverage Ratio | 9.55% | | | | Total Risk-Weighted Capital Ratio | 14.48% | | | - Shareholders' equity increased by **$279 million**, primarily driven by **$221.8 million in capital from the Evans acquisition**, **$59.3 million in net income**, and a **$31.4 million reduction in accumulated other comprehensive loss**[19](index=19&type=chunk) [Dividend Announcement](index=5&type=section&id=Dividend%20Announcement) The Board of Directors approved a Q3 cash dividend of $0.37 per share, an increase of $0.03 or 8.8% from the Q3 2024 dividend, marking the company's thirteenth consecutive year of increasing its annual dividend Q3 Dividend Details | Metric | Amount/Ratio | | :--------------------- | :---------- | | Q3 Cash Dividend Per Share | 0.37 USD | | Increase from Q3 2024 | 0.03 USD | | Percentage Increase | 8.8% | | Consecutive Years of Annual Dividend Increase | 13 years | [Stock Repurchase Program](index=5&type=section&id=Stock%20Repurchase%20Program) The company did not repurchase common stock in Q2 2025, with 1,992,400 shares remaining available under its stock repurchase program as of June 30, 2025 - The company **did not repurchase common stock** in Q2 2025[16](index=16&type=chunk) - As of June 30, 2025, **1,992,400 shares** remained available under the company's stock repurchase program[16](index=16&type=chunk) [Strategic Developments](index=5&type=section&id=Strategic%20Developments) [Evans Bancorp, Inc. Merger](index=5&type=section&id=Evans%20Bancorp%2C%20Inc.%20Merger) The company completed the acquisition of Evans Bancorp, Inc. on May 2, 2025, issuing 5.1 million shares and acquiring approximately $130.4 million in net assets, including $167 million in loans and $186 million in deposits, resulting in $91.4 million in goodwill and $33.2 million in core deposit intangible assets - The company completed the acquisition of **Evans Bancorp, Inc.** on May 2, 2025[20](index=20&type=chunk) Acquisition Details | Metric | Amount | | :--------------------- | :------------- | | Common Shares Issued | 5.1 million shares | | Net Assets Acquired | 130.4 million USD | | Loans Acquired | 167 million USD | | Deposits Acquired | 186 million USD | | Goodwill Recorded | 91.4 million USD | | Core Deposit Intangible Recorded | 33.2 million USD | [Subordinated Debt Redemption](index=5&type=section&id=Subordinated%20Debt%20Redemption) In July 2025, the company redeemed $118 million of subordinated debt with a weighted average interest rate of 5.45% using existing liquidity, which would have converted to a weighted average floating rate exceeding 9% if not redeemed - In July 2025, the company **redeemed $118 million of subordinated debt**[18](index=18&type=chunk) - The redeemed subordinated debt had a weighted average interest rate of **5.45%**, which would have converted to a floating rate exceeding **9%** if not redeemed[18](index=18&type=chunk) [Company Information & Disclosures](index=6&type=section&id=Company%20Information%20%26%20Disclosures) [Conference Call and Webcast](index=6&type=section&id=Conference%20Call%20and%20Webcast) The company will host a conference call on Tuesday, July 29, 2025, at 10:00 AM ET to review Q2 2025 financial results, with an audio webcast link and presentation slides available and archived on the company's website - The company will host a conference call on **July 29, 2025**, to review Q2 2025 financial results[21](index=21&type=chunk) - The webcast link and presentation slides will be available and archived on the company's website for **twelve months**[21](index=21&type=chunk) [Corporate Overview](index=6&type=section&id=Corporate%20Overview) NBT Bancorp Inc. is a financial holding company headquartered in Norwich, New York, with total assets of $16.01 billion as of June 30, 2025, operating primarily through NBT Bank, N.A., EPIC Retirement Plan Services, and NBT Insurance Agency, LLC - NBT Bancorp Inc. is a financial holding company headquartered in **Norwich, New York**[22](index=22&type=chunk) Company Assets | Metric | Amount | | :----------- | :------------- | | Total Assets | 16.01 billion USD | - The company primarily operates through **NBT Bank, N.A.** (with **175 banking locations** in seven states), **EPIC Retirement Plan Services**, and **NBT Insurance Agency, LLC**[22](index=22&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, involving various factors that could cause actual results to differ materially from expectations, including economic conditions, asset quality changes, regulatory policies, market fluctuations, technological changes, and acquisition integration risks; readers are cautioned not to place undue reliance on these statements, and the company disclaims any obligation to publicly revise them - This press release contains forward-looking statements as defined by the **Private Securities Litigation Reform Act of 1995**[23](index=23&type=chunk) - Factors that could cause actual results to differ materially from forward-looking statements include **economic conditions, changes in asset quality, regulatory policies, market fluctuations, technological changes, and acquisition integration**[23](index=23&type=chunk) - The company cautions readers not to place undue reliance on any forward-looking statements and disclaims any obligation to publicly revise them, except as required by law[24](index=24&type=chunk)[25](index=25&type=chunk) [Non-GAAP Measures Explanation](index=7&type=section&id=Non-GAAP%20Measures%20Explanation) This press release includes non-GAAP financial information with reconciliations to comparable GAAP measures; management believes these non-GAAP metrics provide useful information for understanding core business performance and align with industry standards, but should not be considered substitutes for GAAP financial measures - This press release includes **non-GAAP financial information** and provides **reconciliations to comparable GAAP measures**[26](index=26&type=chunk) - Management believes non-GAAP metrics provide **useful information** for understanding core business performance and align with **industry standards**[26](index=26&type=chunk) - Non-GAAP metrics should **not be considered substitutes** for GAAP financial measures[26](index=26&type=chunk) [Financial Statements and Reconciliations](index=8&type=section&id=Financial%20Statements%20and%20Reconciliations) [Selected Financial Data](index=8&type=section&id=Selected%20Financial%20Data) This section provides selected financial data for NBT Bancorp Inc. and its subsidiaries, covering profitability (reported and operating), balance sheet data, and capital ratios, presented quarterly and semi-annually for trend analysis Profitability (Reported) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Diluted EPS (USD) | 0.44 | 0.77 | 0.76 | 0.80 | 0.69 | | Return on Average Assets | 0.59% | 1.08% | 1.04% | 1.12% | 0.98% | | Return on Average Equity | 5.27% | 9.68% | 9.44% | 10.21% | 9.12% | | Return on Average Tangible Common Equity | 8.01% | 13.63% | 13.36% | 14.54% | 13.23% | | Net Interest Margin (FTE) | 3.59% | 3.44% | 3.34% | 3.27% | 3.18% | Profitability (Operating) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Diluted EPS (USD) | 0.88 | 0.80 | 0.77 | 0.80 | 0.69 | | Return on Average Assets | 1.19% | 1.11% | 1.06% | 1.12% | 0.98% | | Return on Average Equity | 10.52% | 9.95% | 9.60% | 10.23% | 9.14% | | Return on Average Tangible Common Equity | 15.25% | 13.99% | 13.57% | 14.56% | 13.26% | Balance Sheet Data (Period-End) | Metric | Q2 2025 (thousand USD) | Q1 2025 (thousand USD) | Q4 2024 (thousand USD) | Q3 2024 (thousand USD) | Q2 2024 (thousand USD) | | :------------------------- | :---------------------- | :---------------------- | :---------------------- | :---------------------- | :---------------------- | | Total Assets | 16,014,781 | 13,864,251 | 13,786,666 | 13,839,552 | 13,501,909 | | Total Deposits | 13,515,232 | 11,708,511 | 11,546,761 | 11,588,278 | 11,271,459 | | Shareholders' Equity | 1,805,166 | 1,565,775 | 1,526,141 | 1,521,980 | 1,461,955 | Capital Ratios (Period-End) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Equity to Assets Ratio | 11.27% | 11.29% | 11.07% | 11.00% | 10.83% | | Tangible Common Equity Ratio | 8.30% | 8.68% | 8.42% | 8.36% | 8.11% | | CET1 Capital Ratio | 11.37% | 12.12% | 11.93% | 11.86% | 11.70% | | Leverage Ratio | 9.55% | 10.39% | 10.24% | 10.29% | 10.16% | [Asset Quality and Consolidated Loan Balances](index=9&type=section&id=Asset%20Quality%20and%20Consolidated%20Loan%20Balances) This section details the company's asset quality metrics and loan balances by business line, showing improved nonperforming assets and net charge-off rates in Q2 2025, while allowance for loan losses coverage remained high Asset Quality Data (thousand USD) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Nonperforming Loans | 46,392 | 47,691 | 51,617 | 37,319 | 38,088 | | Total Nonperforming Assets | 46,737 | 47,999 | 51,799 | 37,446 | 38,162 | | Allowance for Loan Losses | 140,200 | 117,000 | 116,000 | 119,500 | 120,500 | Asset Quality Ratios | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Allowance for Loan Losses to Total Loans | 1.21% | 1.17% | 1.16% | 1.21% | 1.22% | | Total Nonperforming Loans to Total Loans | 0.40% | 0.48% | 0.52% | 0.38% | 0.39% | | Total Nonperforming Assets to Total Assets | 0.29% | 0.35% | 0.38% | 0.27% | 0.28% | | Allowance for Loan Losses to Total Nonperforming Loans | 302.21% | 245.33% | 224.73% | 320.21% | 316.37% | | Net Charge-offs to Average Loans | 0.09% | 0.27% | 0.23% | 0.15% | 0.16% | Net Charge-offs by Loan Category (thousand USD) | Loan Category | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Commercial | 97 | 2,109 | 2,542 | 807 | (8) | | Residential Solar and Other Consumer | 1,542 | 3,315 | 2,517 | 2,452 | 3,036 | | Total Loan Net Charge-offs | 2,361 | 6,554 | 5,709 | 3,920 | 3,699 | Loan Balances by Category (thousand USD) | Loan Category | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Commercial and Industrial | 1,692,335 | 1,436,990 | 1,426,482 | 1,458,926 | 1,397,935 | | Commercial Real Estate | 4,800,494 | 3,890,115 | 3,876,698 | 3,792,498 | 3,784,214 | | Residential Real Estate | 2,530,344 | 2,127,588 | 2,142,249 | 2,143,766 | 2,134,875 | | Total Loans | 11,624,680 | 9,980,267 | 9,969,910 | 9,907,041 | 9,854,347 | [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) This section presents the consolidated balance sheets as of June 30, 2025, and December 31, 2024, detailing the composition of assets, liabilities, and shareholders' equity, with total assets and deposits significantly increasing due to the Evans acquisition Assets (thousand USD) | Metric | June 30, 2025 | Dec 31, 2024 | | :------------------------- | :------------- | :------------- | | Cash and Due from Banks | 264,777 | 205,083 | | Available-for-Sale Securities | 1,729,428 | 1,574,664 | | Held-to-Maturity Securities | 809,664 | 842,921 | | Net Loans | 11,484,480 | 9,853,910 | | Goodwill | 454,072 | 362,663 | | Intangible Assets, Net | 64,447 | 36,360 | | Total Assets | 16,014,781 | 13,786,666 | Liabilities and Shareholders' Equity (thousand USD) | Metric | June 30, 2025 | Dec 31, 2024 | | :------------------------- | :------------- | :------------- | | Noninterest-Bearing Demand Deposits | 3,866,856 | 3,446,068 | | Savings, Interest-Bearing Checking and Money Market Deposits | 7,997,219 | 6,658,188 | | Time Deposits | 1,651,157 | 1,442,505 | | Total Deposits | 13,515,232 | 11,546,761 | | Subordinated Debt, Net | 141,943 | 121,201 | | Total Liabilities | 14,209,615 | 12,260,525 | | Total Shareholders' Equity | 1,805,166 | 1,526,141 | | Total Liabilities and Shareholders' Equity | 16,014,781 | 13,786,666 | [Consolidated Statements of Income](index=12&type=section&id=Consolidated%20Statements%20of%20Income) This section provides the company's consolidated statements of income on a quarterly and semi-annual basis, detailing interest income, interest expense, net interest income, provision for loan losses, noninterest income, noninterest expense, and ultimately net income and earnings per share Consolidated Statements of Income for the Three Months Ended (thousand USD) | Metric | Q2 2025 | Q2 2024 | | :------------------------- | :------------- | :------------- | | Total Interest, Fee and Dividend Income | 177,577 | 150,766 | | Total Interest Expense | 53,357 | 53,592 | | Net Interest Income | 124,220 | 97,174 | | Provision for Loan Losses | 17,835 | 8,899 | | Total Noninterest Income | 46,932 | 43,232 | | Total Noninterest Expense | 122,610 | 89,588 | | Income Tax Expense | 8,197 | 9,203 | | Net Income | 22,510 | 32,716 | | Diluted EPS (USD) | 0.44 | 0.69 | Consolidated Statements of Income for the Six Months Ended (thousand USD) | Metric | June 2025 | June 2024 | | :------------------------- | :----------- | :----------- | | Total Interest, Fee and Dividend Income | 331,981 | 297,703 | | Total Interest Expense | 100,538 | 105,355 | | Net Interest Income | 231,443 | 192,348 | | Provision for Loan Losses | 25,389 | 14,478 | | Total Noninterest Income | 94,384 | 88,624 | | Total Noninterest Expense | 222,510 | 181,361 | | Income Tax Expense | 18,673 | 18,594 | | Net Income | 59,255 | 66,539 | | Diluted EPS (USD) | 1.21 | 1.40 | [Average Balance Sheets](index=14&type=section&id=Average%20Balance%20Sheets) This section provides average balance sheets on a quarterly and year-to-date basis, including average interest-earning assets, average liabilities, and their corresponding yields and costs, reflecting trends in the company's balance sheet structure and funding costs Average Interest-Earning Assets (thousand USD) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Short-Term Interest-Bearing Accounts | 146,640 | 63,198 | 184,988 | 62,210 | 48,861 | | Loans | 11,064,920 | 9,981,487 | 9,957,879 | 9,865,412 | 9,772,014 | | Total Interest-Earning Assets | 13,958,413 | 12,701,136 | 12,704,655 | 12,447,198 | 12,367,957 | | Yield on Total Interest-Earning Assets | 5.12% | 4.95% | 4.96% | 5.01% | 4.92% | Average Interest-Bearing Liabilities (thousand USD) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Money Market Deposits | 3,808,024 | 3,496,552 | 3,504,937 | 3,342,845 | 3,254,252 | | Time Deposits | 1,600,908 | 1,450,846 | 1,446,798 | 1,442,424 | 1,391,062 | | Total Interest-Bearing Deposits | 9,163,351 | 8,201,336 | 8,178,398 | 7,952,132 | 7,835,762 | | Total Interest-Bearing Liabilities | 9,568,721 | 8,568,344 | 8,546,800 | 8,353,137 | 8,358,440 | | Cost of Total Interest-Bearing Liabilities | 2.24% | 2.23% | 2.40% | 2.60% | 2.58% | Net Interest Margin (FTE) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Net Interest Spread | 2.88% | 2.72% | 2.56% | 2.41% | 2.34% | | Net Interest Margin (FTE) | 3.59% | 3.44% | 3.34% | 3.27% | 3.18% | | Cost of Total Deposits | 1.51% | 1.49% | 1.60% | 1.72% | 1.68% | | Cost of Total Funds | 1.62% | 1.60% | 1.71% | 1.85% | 1.85% | [Non-GAAP Reconciliations](index=17&type=section&id=Non-GAAP%20Reconciliations) This section provides reconciliations of non-GAAP financial metrics to the most directly comparable GAAP measures, including operating net income, FTE net interest income, tangible common equity to tangible assets ratio, and return on average tangible common equity, to offer a clearer view of performance Operating Net Income Reconciliation (thousand USD) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Net Income | 22,510 | 36,745 | 36,005 | 38,097 | 32,716 | | Merger-Related Expenses | 17,180 | 1,221 | 988 | 543 | - | | Acquisition-Related Provision for Credit Losses | 13,022 | - | - | - | - | | Operating Net Income | 44,923 | 37,765 | 36,609 | 38,149 | 32,788 | | Operating Diluted EPS (USD) | 0.88 | 0.80 | 0.77 | 0.80 | 0.69 | FTE Net Interest Income Reconciliation (thousand USD) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Net Interest Income | 124,220 | 107,223 | 106,105 | 101,669 | 97,174 | | Add: FTE Adjustment | 655 | 636 | 619 | 639 | 658 | | Net Interest Income (FTE) | 124,875 | 107,859 | 106,724 | 102,308 | 97,832 | | Net Interest Margin (FTE) | 3.59% | 3.44% | 3.34% | 3.27% | 3.18% | Tangible Common Equity to Tangible Assets Ratio Reconciliation | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Total Equity | 1,805,166 | 1,565,775 | 1,526,141 | 1,521,980 | 1,461,955 | | Intangible Assets | 518,519 | 396,912 | 399,023 | 397,853 | 398,686 | | Total Assets | 16,014,781 | 13,864,251 | 13,786,666 | 13,839,552 | 13,501,909 | | Tangible Common Equity to Tangible Assets Ratio | 8.30% | 8.68% | 8.42% | 8.36% | 8.11% | Return on Average Tangible Common Equity Reconciliation | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Net Income | 22,510 | 36,745 | 36,005 | 38,097 | 32,716 | | Net Income (Excluding Intangible Amortization) | 24,792 | 38,328 | 37,565 | 39,644 | 34,316 | | Average Tangible Common Equity | 1,241,349 | 1,140,565 | 1,118,649 | 1,084,885 | 1,043,383 | | Return on Average Tangible Common Equity | 8.01% | 13.63% | 13.36% | 14.54% | 13.23% |

Core Insights - NBT Bancorp Inc. reported a net income of $22.5 million for Q2 2025, a decrease from $32.7 million in Q2 2024 and $36.7 million in Q1 2025, with diluted earnings per share at $0.44 [2][3] - The company completed the acquisition of Evans Bancorp, significantly impacting financial results, adding $1.67 billion in loans and $1.86 billion in deposits [3][25] - The net interest margin improved to 3.59%, up 15 basis points from the previous quarter, driven by higher earning asset yields and acquisition-related net accretion [4][11] Financial Performance - Operating diluted earnings per share for Q2 2025 was $0.88, up 28% from Q2 2024 and 10% from Q1 2025 [2][4] - Net interest income for Q2 2025 was $124.2 million, an increase of $17.0 million from Q1 2025 and $27.0 million from Q2 2024 [11][12] - Noninterest income was $46.8 million, accounting for 27% of total revenues, showing a slight decrease from Q1 2025 but an increase from Q2 2024 [12][13] Asset Quality - Total loans reached $11.62 billion as of June 30, 2025, including $1.67 billion from the Evans acquisition, with a net charge-off rate of 0.09% annualized [11][35] - Nonperforming loans to total loans ratio was 0.40%, and the allowance for loan losses was 1.21% of total loans [11][35] - The provision for loan losses was $17.8 million, including $13.0 million related to the acquisition [12][15] Capital and Dividends - Stockholders' equity was $1.81 billion, with a tangible book value per share of $24.57 as of June 30, 2025 [6][24] - The company announced a dividend increase of 8.8% to $0.37 per share, marking the thirteenth consecutive year of dividend increases [4][18] - The CET1 capital ratio stood at 11.37%, with a leverage ratio of 9.55% [24][6] Acquisition Impact - The acquisition of Evans Bancorp added 200 employees and 18 banking locations, enhancing the company's market presence in Western New York [3][25] - The transaction involved issuing 5.1 million shares valued at $221.8 million, resulting in $91.4 million in goodwill [3][25] - The integration of Evans is expected to provide long-term benefits through improved customer relationships and operational efficiencies [4][25]