In addition, we appreciate the opportunity to evaluate and partner with other like-minded community banks. Returning capital to shareholders and opportunistic share repurchases is also part of our capital planning. And as such, we renewed our $2 million share repurchase authorization through the end of 2027. Before turning the meeting over to Annette to review our third quarter results with you in detail, Joe Stagliano will provide some additional color on our progress in the Western region of New York and ...

Group 1: Company Expansion and Mergers - The company is expanding into Buffalo and Rochester, which are the largest markets by population in Upstate New York, enhancing its presence in the region and positioning itself as the community bank with the largest deposit market share [1] - The merger with Evans Bancorp, a $2.3 billion community bank, received regulatory approvals and shareholder support, with a planned closing in the second quarter of 2025 [2][1] - The merger is seen as a natural geographic expansion into the western region of New York, complementing the company's existing footprint [2] Group 2: Financial Performance - Non-interest income constituted 30% of total revenues for 2024, with record revenue and earnings generation across non-banking businesses [3] - The company declared a quarterly cash dividend of $0.34, a 6.3% increase from the previous year's first quarter, marking the 12th consecutive year of annual dividend increases [3] - Net income for the fourth quarter was reported at $36 million, or $0.76 per share, with operating earnings per share at $0.77, a decrease of $0.03 from the prior quarter [5] Group 3: Loan and Deposit Growth - Total loans increased by $319 million, or 3.3%, for the year, with significant growth in commercial and industrial, commercial real estate, indirect auto, and residential lending portfolios [5][6] - Total deposits rose to $11.6 billion, an increase of $578 million, or 5.3%, from December 2023 [6] - The loan portfolio remains diversified, with 53% in commercial relationships and 47% in consumer loans [6] Group 4: Interest Income and Margin - The net interest income for the fourth quarter was 3.34%, up 7 basis points from the prior quarter, primarily due to a decrease in the cost of deposits [7] - The company experienced a $257.5 million growth in average earning assets, contributing to the increase in net interest income [8] - The cost of total deposits decreased by 12 basis points to 1.60% [7] Group 5: Asset Quality and Provisions - A loan loss provision expense of $2.2 million was recorded in the fourth quarter, which was $700,000 lower than the prior quarter [10] - Net charge-offs to total loans increased to 23 basis points in the fourth quarter compared to 16 basis points in the prior quarter, driven by two commercial relationships [11] - Reserve coverage was 1.16% of total loans, covering more than twice the level of non-performing loans [11] Group 6: Future Outlook and Growth Opportunities - The company is optimistic about growth opportunities in the semiconductor chip corridor in Upstate New York, with ongoing investments and expansions [2][36] - The company plans to focus on enhancing its geographic footprint and exploring additional M&A opportunities post-Evans merger [48][52] - The company anticipates continued growth in its fee-based businesses, particularly in retirement plan administration, wealth management, and insurance [27][70]

Core Viewpoint - NBT Bancorp is expected to report strong quarterly earnings, reflecting its robust performance and ability to generate higher profits, with significant increases in both earnings per share and revenue compared to the previous year [2][6]. Financial Performance - Earnings per share (EPS) is projected to be $0.99, representing a 28.6% increase from the previous year [2][6]. - Revenue is anticipated to be around $183 million, indicating a 22% rise from the same quarter last year [2][6]. Analyst Confidence - Stability in earnings estimates over the past 30 days suggests analysts are confident in their forecasts, which can influence investor decisions [3]. Market Valuation - The price-to-earnings (P/E) ratio is approximately 14.22, indicating how the market values the company's earnings [4]. - The price-to-sales ratio is about 2.74, reflecting the company's market value relative to its revenue [4]. Financial Ratios - The company's debt-to-equity ratio is low at 0.17, indicating a conservative approach to using debt [5][6]. - The current ratio is low at 0.06, which may raise concerns about the company's liquidity [5]. - NBTB's earnings yield of 7.03% offers a return on investment based on its earnings, making it attractive for income-seeking investors [5].

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]