Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for NBT Bancorp, driven by higher revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - NBT Bancorp is expected to report quarterly earnings of $0.82 per share, reflecting an 18.8% increase year-over-year [3]. - Revenues are projected to reach $170.63 million, which is a 21.5% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.53% higher in the last 30 days, indicating a slight positive adjustment by analysts [4]. - However, the Most Accurate Estimate for NBT is lower than the consensus, resulting in an Earnings ESP of -2.45%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but the model is more reliable for positive readings [9][10]. - NBT's current Zacks Rank is 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, NBT exceeded expectations by delivering earnings of $0.80 per share against an estimate of $0.76, resulting in a surprise of +5.26% [13]. - Over the past four quarters, NBT has beaten consensus EPS estimates two times [14]. Industry Comparison - Flagstar Financial, another player in the Northeast banking sector, is expected to report a loss of $0.12 per share, with revenues projected at $527.48 million, down 21.4% year-over-year [18]. - Flagstar's EPS estimate has been revised 26.4% higher recently, resulting in a positive Earnings ESP of +9.47%, suggesting a likely earnings beat [19].

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) Presents unaudited interim consolidated financial statements and management's discussion for NBT Bancorp Inc [ITEM 1. FINANCIAL STATEMENTS (Unaudited)](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20%28Unaudited%29) Presents unaudited interim consolidated financial statements for Q1 2025, including balance sheets, income statements, and notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Presents the company's assets, liabilities, and stockholders' equity at March 31, 2025, and December 31, 2024 | (In thousands) | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | **Assets** | | | | Total assets | $13,864,251 | $13,786,666 | | **Liabilities** | | | | Total deposits | $11,708,511 | $11,546,761 | | Total liabilities | $12,298,476 | $12,260,525 | | **Stockholders' equity** | | | | Total stockholders' equity | $1,565,775 | $1,526,141 | - Total assets increased by **$77.6 million** (0.56%) from December 31, 2024, to March 31, 2025. Total deposits increased by **$161.75 million** (1.4%) over the same period. Total stockholders' equity increased by **$39.634 million** (2.6%) from December 31, 2024, to March 31, 2025[11](index=11&type=chunk) [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Details the company's revenues, expenses, and net income for the three months ended March 31, 2025 and 2024 | (In thousands, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Total interest, fee and dividend income | $154,404 | $146,937 | | Total interest expense | $47,181 | $51,763 | | Net interest income | $107,223 | $95,174 | | Provision for loan losses | $7,554 | $5,579 | | Total noninterest income | $47,452 | $45,392 | | Total noninterest expense | $99,900 | $91,773 | | Net income | $36,745 | $33,823 | | Basic EPS | $0.78 | $0.72 | | Diluted EPS | $0.77 | $0.71 | - Net income increased by **$2.922 million** (8.6%) YoY. Diluted EPS increased by **$0.06** (8.5%) YoY. Net interest income increased by **$12.049 million** (12.7%) YoY, while total interest expense decreased by **$4.582 million** (8.8%) YoY[13](index=13&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Reports net income and other comprehensive income components, showing total comprehensive income for the periods | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net income | $36,745 | $33,823 | | Total other comprehensive income (loss) | $20,285 | $(3,558) | | Comprehensive income | $57,030 | $30,265 | - Total other comprehensive income (loss) significantly improved from a loss of **$3.558 million** in Q1 2024 to a gain of **$20.285 million** in Q1 2025, primarily due to unrealized net holding gains on available-for-sale securities. This led to a substantial increase in comprehensive income YoY[14](index=14&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Outlines changes in stockholders' equity, including net income, dividends, and other comprehensive income | (In thousands) | Balance at December 31, 2024 | Balance at March 31, 2025 | | :------------------------------------ | :--------------------------- | :------------------------ | | Total stockholders' equity | $1,526,141 | $1,565,775 | | Net income | - | $36,745 | | Cash dividends | - | $(16,067) | | Other comprehensive income | - | $20,285 | - Stockholders' equity increased by **$39.634 million** from December 31, 2024, to March 31, 2025, driven by net income and other comprehensive income, partially offset by cash dividends[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $42,005 | $36,745 | | Net cash used in investing activities | $(113,163) | $(13,128) | | Net cash provided by financing activities | $41,185 | $90,286 | | Net (decrease) increase in cash and cash equivalents | $(29,973) | $113,903 | | Cash and cash equivalents at end of period | $254,083 | $319,092 | - The company experienced a net decrease in cash and cash equivalents of **$29.973 million** in Q1 2025, a significant shift from a net increase of **$113.903 million** in Q1 2024. This was primarily due to a substantial increase in cash used in investing activities, which rose from **$13.128 million** in Q1 2024 to **$113.163 million** in Q1 2025, and a decrease in cash provided by financing activities[18](index=18&type=chunk) [Notes to Unaudited Interim Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Interim%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the unaudited interim consolidated financial statements [1. Description of Business](index=10&type=section&id=1.%20Description%20of%20Business) Outlines NBT Bancorp Inc.'s operations as a financial holding company and its banking and wealth management services - NBT Bancorp Inc. is a Delaware-incorporated financial holding company, primarily operating through its subsidiary NBT Bank, National Association. The company provides commercial banking, retail banking, and wealth management services across upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine, and central/northwestern Connecticut, maintaining a community-oriented financial institution philosophy[20](index=20&type=chunk)[21](index=21&type=chunk) [2. Summary of Significant Accounting Policies](index=10&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Highlights key accounting principles, GAAP compliance, use of estimates, and interim financial reporting - The interim consolidated financial statements are unaudited and prepared in accordance with GAAP, including normal recurring adjustments. Management emphasizes that results for interim periods are not indicative of full-year results and highlights the use of estimates, particularly for the allowance for credit losses, which are susceptible to material change[22](index=22&type=chunk)[23](index=23&type=chunk) [3. Recent Accounting Pronouncements](index=10&type=section&id=3.%20Recent%20Accounting%20Pronouncements) Discusses new FASB ASUs on income tax and expense disaggregation disclosures and their expected impact - The FASB issued ASU 2023-09 (Improvements to Income Tax Disclosures), effective for annual periods after December 15, 2024, requiring enhanced income tax disclosures. Additionally, ASU 2024-03 (Expense Disaggregation Disclosures), with a revised effective date of annual periods after December 15, 2026, will require tabular disaggregation of certain income statement expenses. Neither is expected to materially impact the consolidated financial statements beyond disclosure requirements[24](index=24&type=chunk)[25](index=25&type=chunk) [4. Acquisitions](index=11&type=section&id=4.%20Acquisitions) Details recent acquisitions, including Evans Bancorp, Inc. and other asset purchases - On May 2, 2025, NBT Bancorp completed the acquisition of Evans Bancorp, Inc. for approximately **$222 million** in stock. Evans had assets of **$2.19 billion** at December 31, 2024. The initial accounting for this business combination is incomplete due to its proximity to the filing date. The Company incurred **$1.2 million** in acquisition expenses for this merger during Q1 2025[26](index=26&type=chunk)[27](index=27&type=chunk) - In November 2024, NBT Bank acquired certain assets of PACO, Inc. for **$3.3 million**, recording **$0.7 million** in goodwill. In July 2024, NBT Insurance Agency acquired substantially all assets of Karl W. Reynard, Inc. for **$1.2 million**, recording **$0.2 million** in goodwill, expanding its presence in the Catskills[28](index=28&type=chunk)[29](index=29&type=chunk) [5. Securities](index=12&type=section&id=5.%20Securities) Presents details on available-for-sale and held-to-maturity securities, including cost, fair value, and unrealized gains/losses | (In thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | **AFS Securities** | | | | Amortized Cost | $1,842,664 | $1,739,299 | | Estimated Fair Value | $1,704,677 | $1,574,664 | | Total Unrealized Losses | $(139,487) | $(164,886) | | **HTM Securities** | | | | Amortized Cost | $836,833 | $842,921 | | Estimated Fair Value | $756,404 | $749,945 | | Total Unrealized Losses | $(80,489) | $(93,018) | - Unrealized losses on AFS securities decreased from **$(164.886) million** at December 31, 2024, to **$(139.487) million** at March 31, 2025, indicating an improvement in fair value. Similarly, unrealized losses on HTM securities decreased from **$(93.018) million** to **$(80.489) million**. The company does not believe these unrealized losses represent credit impairment, as the majority are U.S. government-backed securities and are primarily due to interest rate changes[32](index=32&type=chunk)[34](index=34&type=chunk)[41](index=41&type=chunk) [6. Loans](index=15&type=section&id=6.%20Loans) Provides a breakdown of the loan portfolio by category at March 31, 2025, and December 31, 2024 | (In thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Commercial & industrial | $1,436,990 | $1,426,482 | | Commercial real estate | $3,890,115 | $3,876,698 | | Residential real estate | $2,127,588 | $2,142,249 | | Home equity | $331,400 | $334,268 | | Indirect auto | $1,309,084 | $1,273,253 | | Residential solar | $800,090 | $820,079 | | Other consumer | $85,000 | $96,881 | | Total loans | $9,980,267 | $9,969,910 | - Total loans increased slightly by **$10.357 million** (0.1%) from December 31, 2024, to March 31, 2025. Commercial & industrial loans and Commercial real estate loans saw increases, while Residential real estate, Home equity, Residential solar, and Other consumer loans experienced decreases[43](index=43&type=chunk) [7. Allowance for Credit Losses and Credit Quality of Loans](index=15&type=section&id=7.%20Allowance%20for%20Credit%20Losses%20and%20Credit%20Quality%20of%20Loans) Details the allowance for credit losses, provision, nonperforming assets, and credit quality trends | Metric | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Allowance for credit losses (in millions) | $117.0 | $116.0 | | Allowance for credit losses as % of loans | 1.17% | 1.16% | | Provision for loan losses (Q1 2025, in millions) | $7.554 | $2.2 (Q4 2024) | | Net charge-offs (Q1 2025, in millions) | $6.554 | $5.7 (Q4 2024) | | Nonperforming loans (in millions) | $47.691 | $51.617 | | Total nonperforming assets (in millions) | $47.999 | $51.799 | - The allowance for credit losses increased to **$117.0 million** (1.17% of loans) at March 31, 2025, from **$116.0 million** (1.16% of loans) at December 31, 2024, primarily due to a deterioration in the economic forecast and a shift in scenario weightings. Provision for loan losses increased to **$7.554 million** in Q1 2025 from **$5.579 million** in Q1 2024. Nonperforming assets decreased to **$48.0 million** from **$51.8 million**, largely due to a **$2.1 million** charge-off on a nonperforming CRE relationship[45](index=45&type=chunk)[51](index=51&type=chunk)[165](index=165&type=chunk)[167](index=167&type=chunk)[170](index=170&type=chunk) - The Company updated its econometric PD/LGD models, which resulted in an approximate **3% decrease** in the total allowance as of March 31, 2025, mainly due to improved outcomes in the Auto class segment. Potential problem loans (substandard) increased to **$125.2 million** at March 31, 2025, from **$116.1 million** at December 31, 2024, reflecting changing conditions in certain CRE markets[47](index=47&type=chunk)[171](index=171&type=chunk) [8. Short-Term Borrowings](index=22&type=section&id=8.%20Short-Term%20Borrowings) Reports the company's short-term borrowing obligations, including securities sold under repurchase agreements | (In thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Securities sold under repurchase agreements | $85,597 | $146,942 | | Other short-term borrowings | - | $16,000 | | Total short-term borrowings | $85,597 | $162,942 | - Total short-term borrowings decreased significantly by **$77.345 million** (47.5%) from **$162.942 million** at December 31, 2024, to **$85.597 million** at March 31, 2025, primarily due to a reduction in securities sold under repurchase agreements and the elimination of other short-term borrowings[71](index=71&type=chunk) [9. Defined Benefit Post-Retirement Plans](index=22&type=section&id=9.%20Defined%20Benefit%20Post-Retirement%20Plans) Presents the net periodic cost or benefit for pension and other post-retirement plans for the periods | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | **Pension Benefits** | | | | Service cost | $671 | $514 | | Interest cost | $1,068 | $1,005 | | Expected return on plan assets | $(2,045) | $(1,983) | | Net amortization | $325 | $453 | | Total net periodic cost (benefit) | $19 | $(11) | | **Other Benefits** | | | | Service cost | $1 | $1 | | Interest cost | $59 | $55 | | Expected return on plan assets | - | - | | Net amortization | - | $(1) | | Total net periodic cost (benefit) | $59 | $55 | - For Pension Benefits, the company recorded a net periodic cost of **$19 thousand** in Q1 2025, a shift from a net benefit of **$(11) thousand** in Q1 2024. This change was mainly due to a higher service cost and lower net amortization, partially offset by a higher expected return on plan assets. No voluntary contributions were made to either plan during both periods[73](index=73&type=chunk)[74](index=74&type=chunk) [10. Earnings Per Share](index=23&type=section&id=10.%20Earnings%20Per%20Share) Reports basic and diluted earnings per share, along with weighted average shares outstanding | (In thousands, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Basic EPS | $0.78 | $0.72 | | Diluted EPS | $0.77 | $0.71 | | Weighted average common shares outstanding | 47,244 | 47,148 | | Dilutive effect of common stock options and restricted stock | 233 | 222 | | Weighted average common shares and common share equivalents | 47,477 | 47,370 | - Basic EPS increased by **$0.06** (8.3%) and Diluted EPS increased by **$0.06** (8.5%) from Q1 2024 to Q1 2025, reflecting higher net income. The dilutive effect of common stock options and restricted stock remained relatively stable[76](index=76&type=chunk) [11. Reclassification Adjustments Out of Other Comprehensive Income (Loss)](index=23&type=section&id=11.%20Reclassification%20Adjustments%20Out%20of%20Other%20Comprehensive%20Income%20%28Loss%29) Details reclassification adjustments from AOCI, net of tax, for AFS securities and pension benefits | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | **AFS securities** | | | | Amortization of unrealized gains related to securities transfer, net of tax | $56 | $72 | | **Pension and other benefits** | | | | Amortization of net losses and prior service costs, net of tax | $243 | $339 | | Total reclassifications, net of tax | $299 | $411 | - Total reclassification adjustments out of AOCI, net of tax, decreased from **$411 thousand** in Q1 2024 to **$299 thousand** in Q1 2025. This was primarily driven by a reduction in the net amortization of pension and other benefits[77](index=77&type=chunk) [12. Derivative Instruments and Hedging Activities](index=23&type=section&id=12.%20Derivative%20Instruments%20and%20Hedging%20Activities) Describes the company's use of derivative instruments for customer transactions and risk management | (In thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | **Derivatives not designated as hedging instruments** | | | | Interest rate derivatives (Notional Amount) | $1,401,787 | $1,374,800 | | Risk participation agreements (Notional Amount) | $98,600 | $90,725 | | Net derivative assets in the balance sheet | $67,284 | $80,847 | | Net derivative liabilities in the balance sheet | $86,910 | $104,399 | - The company uses interest rate swaps and risk participation agreements, not designated as hedging instruments, to facilitate customer transactions and manage risk. Notional amounts for interest rate derivatives increased to **$1.40 billion** at March 31, 2025, from **$1.37 billion** at December 31, 2024. Net derivative assets and liabilities decreased over the quarter, with a net gain of **$21 thousand** recognized in other income in Q1 2025[78](index=78&type=chunk)[79](index=79&type=chunk)[83](index=83&type=chunk)[85](index=85&type=chunk) [13. Fair Value Measurements and Fair Value of Financial Instruments](index=25&type=section&id=13.%20Fair%20Value%20Measurements%20and%20Fair%20Value%20of%20Financial%20Instruments) Explains the fair value hierarchy and presents fair value measurements for assets, liabilities, and other financial instruments | (In thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | **Assets at Fair Value (Recurring)** | | | | Total AFS securities | $1,704,677 | $1,574,664 | | Equity securities | $41,561 | $42,372 | | Derivatives | $67,284 | $80,847 | | **Liabilities at Fair Value (Recurring)** | | | | Derivatives | $86,910 | $104,399 | | **Financial Instruments (Fair Value vs. Carrying Amount)** | | | | HTM securities (Fair Value) | $756,404 | $749,945 | | Net loans (Fair Value) | $9,567,818 | $9,458,786 | | Time deposits (Fair Value) | $1,440,657 | $1,431,942 | - The company measures financial instruments at fair value using a three-level hierarchy. AFS securities and derivatives are measured on a recurring basis, with AFS securities increasing in fair value and derivatives decreasing. HTM securities, net loans, and time deposits are disclosed with fair value estimates, which are generally lower than their carrying amounts, reflecting market conditions[86](index=86&type=chunk)[91](index=91&type=chunk)[94](index=94&type=chunk) [14. Commitments and Contingencies](index=28&type=section&id=14.%20Commitments%20and%20Contingencies) Details off-balance sheet commitments, including credit extensions and standby letters of credit | (In thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Commitments to extend credit and unused lines of credit | $2,790,000 | $2,840,000 | | Standby letters of credit | $56,200 | $50,800 | - Commitments to extend credit and unused lines of credit decreased by **$50 million** to **$2.79 billion** at March 31, 2025, from **$2.84 billion** at December 31, 2024. Standby letters of credit increased by **$5.4 million** to **$56.2 million** over the same period. The company's exposure to credit loss from these off-balance sheet instruments is managed with normal credit policies and collateral requirements[103](index=103&type=chunk)[105](index=105&type=chunk) [15. Segment Reporting](index=29&type=section&id=15.%20Segment%20Reporting) Presents financial information for the Banking and Retirement Plan Administration segments - NBT Bancorp Inc. now operates through two reportable segments: Banking and Retirement Plan Administration, following a reassessment in accordance with ASU 2023-07. The Banking segment includes commercial, retail, and wealth management services, along with parent holding company activities and corporate shared service costs. The Retirement Plan Administration segment covers recordkeeping, administration, investment management, and actuarial services[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) | (In thousands) | Banking (Q1 2025) | Retirement Plan Administration (Q1 2025) | All Other (Q1 2025) | Consolidated (Q1 2025) | | :------------------------------------ | :---------------- | :--------------------------------------- | :------------------ | :----------------------- | | Net interest income | $107,205 | $18 | $0 | $107,223 | | Total noninterest income | $28,803 | $17,009 | $1,640 | $47,452 | | Total noninterest expense | $89,477 | $10,340 | $83 | $99,900 | | Net income | $29,926 | $5,262 | $1,557 | $36,745 | | Total assets | $15,591,557 | $54,925 | $(1,782,231) | $13,864,251 | - For Q1 2025, the Banking segment generated **$107.2 million** in net interest income and **$29.9 million** in net income. The Retirement Plan Administration segment contributed **$17.0 million** in noninterest income and **$5.3 million** in net income. Total assets for the Banking segment were **$15.59 billion**[112](index=112&type=chunk)[113](index=113&type=chunk) [16. Subsequent Event](index=31&type=section&id=16.%20Subsequent%20Event) Discloses the completion of the Evans Bancorp, Inc. acquisition post-quarter-end and its incomplete initial accounting - On May 2, 2025, the Company completed the acquisition of Evans Bancorp, Inc. for approximately **$222 million** in stock. The acquisition is being accounted for as a business combination, but the initial accounting is incomplete due to the timing of the 10-Q filing. Relevant disclosures will be provided in the second quarter of 2025[115](index=115&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=32&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Provides a comprehensive analysis of NBT Bancorp Inc.'s financial condition and operating results [Forward-Looking Statements](index=32&type=section&id=Forward-Looking%20Statements) Warns that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ - The report contains forward-looking statements, identified by terms like 'anticipate' or 'expect,' which are subject to various factors beyond the Company's control that could cause actual results to differ materially. These factors include economic conditions, changes in nonperforming assets, regulatory changes, interest rate fluctuations, and acquisition integration risks. Readers are cautioned not to place undue reliance on these statements[117](index=117&type=chunk)[118](index=118&type=chunk) [Non-GAAP Measures](index=32&type=section&id=Non-GAAP%20Measures) Explains the use of non-GAAP financial measures to provide additional insights into core business results - The report includes non-GAAP financial measures, which management believes provide useful information for understanding core business results and are standard in the financial institution industry. These measures are reconciled to comparable GAAP measures and should not be considered substitutes for GAAP-compliant financial statements[120](index=120&type=chunk) [Critical Accounting Estimates](index=33&type=section&id=Critical%20Accounting%20Estimates) Identifies the allowance for credit losses as a critical estimate due to inherent uncertainty and management judgment - The allowance for credit losses and unfunded commitments is identified as a critical accounting estimate due to significant estimation uncertainty and potential material impact on financial results. The CECL methodology requires estimating lifetime credit losses based on past events, current conditions, and reasonable forecasts, with management judgment heavily influencing the outcome[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) - As of March 31, 2025, the CECL model incorporated a **75% baseline** and **25% downside** economic forecast. A **10% decrease** in the downside scenario weighting would decrease the allowance by **4%**, while increasing the downside scenario to **100%** would increase the allowance by **30%**, demonstrating the sensitivity of the estimate to macroeconomic assumptions[124](index=124&type=chunk)[125](index=125&type=chunk) [Evans Bancorp, Inc. Merger](index=34&type=section&id=Evans%20Bancorp%2C%20Inc.%20Merger) Provides an update on the completed acquisition of Evans Bancorp, Inc., including transaction details and accounting status - On May 2, 2025, NBT Bancorp completed the acquisition of Evans Bancorp, Inc. for approximately **$222 million** in stock. Evans had assets of **$2.19 billion** at December 31, 2024. The acquisition is being accounted for as a business combination, but the initial accounting is incomplete due to the timing of the 10-Q filing. The Company incurred **$1.2 million** in acquisition expenses related to this merger during Q1 2025[127](index=127&type=chunk)[128](index=128&type=chunk) [Executive Summary](index=34&type=section&id=Executive%20Summary) Presents a high-level overview of key financial results and performance metrics | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :------------------------------------ | :------ | :------ | :------ | | Net income (in millions) | $36.7 | $36.0 | $33.8 | | Diluted EPS | $0.77 | $0.76 | $0.71 | | Operating net income (non-GAAP, in millions) | $37.8 | $36.6 | $32.1 | | Operating diluted EPS (non-GAAP) | $0.80 | $0.77 | $0.68 | | Net interest income (in millions) | $107.2 | $106.1 | $95.2 | | Provision for loan losses (in millions) | $7.6 | $2.2 | $5.6 | | Noninterest income (excl. securities gains/losses, in millions) | $47.6 | $42.2 | $43.3 | | Noninterest expense (excl. acquisition expenses, in millions) | $98.7 | $99.8 | $91.8 | | Period end total loans (in billions) | $9.98 | $9.97 | $9.67 | | Period end total deposits (in billions) | $11.71 | $11.55 | $11.01 | | Loan to deposit ratio | 85.2% | 86.3% | 87.8% | | Net charge-offs to average loans (annualized) | 0.27% | 0.23% | 0.19% | | Allowance for loan losses to total loans | 1.17% | 1.16% | 1.19% | - Net income for Q1 2025 was **$36.7 million**, up **$2.9 million** YoY, with diluted EPS of **$0.77**. Operating net income (non-GAAP) was **$37.8 million**, or **$0.80** per diluted share. Net interest income increased by **$12.0 million** YoY to **$107.2 million**. Total loans increased slightly to **$9.98 billion**, and total deposits grew by **$161.8 million** to **$11.71 billion** QoQ. Credit quality metrics show net charge-offs to average loans at **0.27%** and allowance for loan losses to total loans at **1.17%**[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance, including net interest income, noninterest income, and expenses [Net Interest Income](index=37&type=section&id=Net%20Interest%20Income) Examines trends in interest income, interest expense, and net interest margin | (In thousands) | Q1 2025 | Q4 2024 | Q1 2024 | | :------------------------------------ | :------ | :------ | :------ | | Net interest income | $107,223 | $106,105 | $95,174 | | FTE Net Interest Margin | 3.44% | 3.34% | 3.14% | | Total interest, fee and dividend income | $154,404 | $157,700 | $146,937 | | Total interest expense | $47,181 | $51,763 | $51,763 | | Acquisition-related net accretion | $2,200 | $2,600 | $2,500 | - Net interest income for Q1 2025 was **$107.2 million**, up **1.1%** QoQ and **12.7%** YoY. The FTE Net Interest Margin (NIM) increased by **10 bps** QoQ to **3.44%** and by **30 bps** YoY. The QoQ increase was driven by an **8.6% decrease** in interest expense, primarily from lower interest-bearing deposit costs, despite a **2.1% decrease** in interest income due to lower loan yields and fewer days[138](index=138&type=chunk)[139](index=139&type=chunk) [Noninterest Income](index=40&type=section&id=Noninterest%20Income) Analyzes components of noninterest income, including fees, insurance services, and securities gains/losses | (In thousands) | Q1 2025 | Q4 2024 | Q1 2024 | | :------------------------------------ | :------ | :------ | :------ | | Total noninterest income | $47,452 | $42,426 | $45,392 | | Retirement plan administration fees | $15,858 | $12,924 | $14,287 | | Insurance services | $4,761 | $3,883 | $4,388 | | Bank owned life insurance income | $3,397 | $2,271 | $2,352 | | Net securities (losses) gains | $(104) | $222 | $2,183 | - Total noninterest income for Q1 2025 was **$47.5 million**, up **11.8%** QoQ and **4.5%** YoY. Excluding net securities gains/losses, noninterest income increased **12.7%** QoQ and **10.1%** YoY. Key drivers for the increase were higher retirement plan administration fees (due to seasonal activity, organic growth, and an acquisition), increased insurance services (organic growth, renewals, seasonality), and a **$1.3 million** gain from a bank-owned life insurance claim[147](index=147&type=chunk) [Noninterest Expense](index=40&type=section&id=Noninterest%20Expense) Examines trends in noninterest expenses, including salaries, benefits, occupancy, and acquisition costs | (In thousands) | Q1 2025 | Q4 2024 | Q1 2024 | | :------------------------------------ | :------ | :------ | :------ | | Total noninterest expense | $99,900 | $100,775 | $91,773 | | Salaries and employee benefits | $60,694 | $61,749 | $55,704 | | Occupancy | $9,027 | $7,786 | $8,098 | | Acquisition expenses | $1,221 | $988 | $0 | - Total noninterest expense for Q1 2025 was **$99.9 million**, down **0.9%** QoQ but up **8.9%** YoY. Excluding acquisition expenses, noninterest expense decreased **1.1%** QoQ, mainly due to lower salaries and employee benefits (medical costs, incentive compensation, fewer payroll days) and a **$1.6 million** decrease in other expenses. The YoY increase was driven by higher salaries and employee benefits (merit increases, increased headcount, higher medical costs) and increased occupancy costs due to seasonal maintenance and new banking locations[148](index=148&type=chunk) [Income Taxes](index=40&type=section&id=Income%20Taxes) Discusses income tax expense and the effective tax rate, explaining factors influencing their changes | (In thousands) | Q1 2025 | Q4 2024 | Q1 2024 | | :------------------------------------ | :------ | :------ | :------ | | Income tax expense | $10,476 | $9,576 | $9,391 | | Effective tax rate | 22.2% | 20.9% | 21.7% | - Income tax expense for Q1 2025 was **$10.5 million**, up **$0.9 million** QoQ and **$1.1 million** YoY. The effective tax rate increased to **22.2%** in Q1 2025 from **20.9%** in Q4 2024 and **21.7%** in Q1 2024, primarily due to a lower level of tax-exempt income as a percentage of total taxable income[149](index=149&type=chunk)[150](index=150&type=chunk) [ANALYSIS OF FINANCIAL CONDITION](index=42&type=section&id=ANALYSIS%20OF%20FINANCIAL%20CONDITION) Analyzes key aspects of the company's financial position, including securities, loans, credit quality, deposits, and capital [Securities](index=42&type=section&id=Securities) Examines the composition and changes in the company's investment securities portfolio | Security Type | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Mortgage-backed securities (15 years or less) | 13% | 14% | | Mortgage-backed securities (greater than 15 years) | 8% | 8% | | Collateral mortgage obligations | 40% | 39% | | Municipal securities | 15% | 15% | | U.S. agency notes | 20% | 20% | | Corporate | 2% | 2% | | Equity securities | 2% | 2% | | Total | 100% | 100% | - Total securities increased by **$123.1 million** (5.0%) from December 31, 2024, to March 31, 2025, representing **18.6%** of total assets. The portfolio is diversified, with a significant portion in mortgage-backed securities, U.S. agency notes, and collateralized mortgage obligations, all guaranteed by government-sponsored enterprises or agencies[151](index=151&type=chunk)[152](index=152&type=chunk) [Loans](index=42&type=section&id=Loans) Provides a detailed breakdown of the loan portfolio, highlighting growth and segment performance | (In thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Commercial & industrial | $1,436,990 | $1,426,482 | | Commercial real estate | $3,890,115 | $3,876,698 | | Residential real estate | $2,127,588 | $2,142,249 | | Home equity | $331,400 | $334,268 | | Indirect auto | $1,309,084 | $1,273,253 | | Residential solar | $800,090 | $820,079 | | Other consumer | $85,000 | $96,881 | | Total loans | $9,980,267 | $9,969,910 | - Total loans increased by **$10.4 million** (0.4% annualized) to **$9.98 billion** at March 31, 2025. Excluding planned run-off portfolios (other consumer and residential solar), loans increased by **$40.5 million** (1.8% annualized). Commercial & industrial and Commercial real estate loans saw increases, while consumer loan categories generally decreased. CRE construction and development loans totaled **$316.4 million**[153](index=153&type=chunk)[154](index=154&type=chunk)[156](index=156&type=chunk) - The CRE portfolio is **81% Non-Owner Occupied**, with residential rental properties (**43%**) and office spaces (**17%**) being significant sectors. Office CRE loans, representing **5%** of total loans, have an average size of **$1.9 million**, with **9%** maturing in the next two years. The company employs rigorous underwriting and monitoring for its loan portfolios[155](index=155&type=chunk)[156](index=156&type=chunk) [Allowance for Credit Losses, Provision for Loan Losses and Nonperforming Assets](index=43&type=section&id=Allowance%20for%20Credit%20Losses%2C%20Provision%20for%20Loan%20Losses%20and%20Nonperforming%20Assets) Analyzes the allowance for credit losses, provision, net charge-offs, and nonperforming assets | Metric | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Allowance for credit losses (in millions) | $117.0 | $116.0 | | Allowance for credit losses as % of loans | 1.17% | 1.16% | | Provision for loan losses (Q1 2025, in millions) | $7.6 | $2.2 (Q4 2024) | | Net charge-offs (Q1 2025, in millions) | $6.6 | $5.7 (Q4 2024) | | Net charge-offs to average loans (annualized) | 0.27% | 0.23% | | Total nonperforming assets (in millions) | $48.0 | $51.8 | | Total nonperforming loans (in millions) | $47.7 | $51.6 | | Total nonaccrual loans (in millions) | $44.8 | $45.8 | | Allowance for credit losses to nonperforming loans | 245.33% | 224.73% | | Allowance for credit losses to nonaccrual loans | 260.99% | 253.17% | | Potential problem loans (in millions) | $125.2 | $116.1 | - The allowance for credit losses increased to **$117.0 million** (1.17% of loans) at March 31, 2025, driven by a deterioration in economic forecasts, partially offset by model refreshment and loan composition shifts. Provision for loan losses was **$7.6 million** in Q1 2025, up from **$2.2 million** in Q4 2024, due to increased net charge-offs and economic forecast deterioration. Total nonperforming assets decreased to **$48.0 million**, largely due to a **$2.1 million** charge-off on a nonperforming CRE relationship. Potential problem loans increased to **$125.2 million**, reflecting changing conditions in certain CRE markets[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) [Deposits](index=45&type=section&id=Deposits) Discusses deposit trends, including growth, composition shifts, and estimated uninsured deposit levels | (In thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Total deposits | $11,708,511 | $11,546,761 | | Brokered time deposits | $294,700 | $295,800 | | Estimated uninsured deposits | $4,850,000 | $4,730,000 | | Average per account balance | $20,834 | N/A | - Total deposits increased by **$161.8 million** (1.4%) to **$11.71 billion** at March 31, 2025, primarily due to an inflow of seasonal municipal deposits. The company continues to observe a migration from noninterest-bearing accounts to higher-cost money market and time deposits. Estimated uninsured deposits were **$4.85 billion**, and the average per account balance was **$20,834**[172](index=172&type=chunk) [Borrowed Funds](index=45&type=section&id=Borrowed%20Funds) Reports changes in short-term borrowings and long-term debt, including maturities and reductions | (In thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Short-term borrowings | $85,600 | $162,900 | | Long-term debt | $4,600 | $29,600 | - Short-term borrowings decreased by **$77.3 million** to **$85.6 million** at March 31, 2025. Long-term debt decreased by **$25.0 million** to **$4.6 million** due to a maturity in Q1 2025[173](index=173&type=chunk) [Subordinated Debt](index=45&type=section&id=Subordinated%20Debt) Details the company's subordinated debt, including fixed-to-floating rate notes and Tier 2 capital qualification | (In thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Subordinated debt, net | $121,600 | $121,200 | | 5.00% fixed-to-floating rate subordinated notes due 2030 | $100,000 (original) | $100,000 (original) | | 3.50% fixed-to-floating rate subordinated notes due 2031 | $25,000 (original) | $25,000 (original) | - Subordinated debt, net of unamortized issuance costs and fair value discount, was **$121.6 million** at March 31, 2025, up slightly from **$121.2 million** at December 31, 2024. This includes **$100.0 million** of 5.00% fixed-to-floating rate notes due 2030 and **$25.0 million** of 3.50% fixed-to-floating rate notes due 2031, both qualifying as Tier 2 capital[175](index=175&type=chunk)[176](index=176&type=chunk)[177](index=177&type=chunk) [Capital Resources](index=45&type=section&id=Capital%20Resources) Reviews stockholders' equity, capital ratios, and book value per share, confirming 'well capitalized' status | Capital Measurement | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Stockholders' equity (in billions) | $1.57 | $1.53 | | Equity to assets | 11.29% | 11.07% | | Tier 1 leverage ratio | 10.39% | 10.24% | | Common equity tier 1 capital ratio | 12.12% | 11.93% | | Tier 1 capital ratio | 13.02% | 12.83% | | Total risk-based capital ratio | 15.24% | 15.03% | | Book value per share | $33.13 | $32.34 | | Tangible book value per share | $24.74 | $23.88 | - Stockholders' equity increased by **$39.6 million** to **$1.57 billion** at March 31, 2025, driven by net income and a decrease in accumulated other comprehensive loss, partially offset by dividends. The company remains 'well capitalized' with all capital ratios exceeding regulatory minimums. Book value per share increased to **$33.13**, and tangible book value per share increased to **$24.74**[178](index=178&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk) - The company did not repurchase shares in Q1 2025, with **1,992,400 shares** remaining available under the repurchase program. The company adopted the CECL capital transition relief over a five-year period, phasing in the regulatory capital impact[179](index=179&type=chunk)[183](index=183&type=chunk) [Liquidity and Interest Rate Sensitivity Management](index=46&type=section&id=Liquidity%20and%20Interest%20Rate%20Sensitivity%20Management) Discusses management of interest rate risk and liquidity, including earnings at risk modeling and borrowing capacity - Interest rate risk is the most significant market risk, managed by the ALCO through earnings at risk modeling. The company's interest rate sensitivity is near neutral, with projected net interest income changes within internal policy limits (e.g., not more than a **5.0% reduction** in +/-100 bps scenarios). The trajectory of net interest income depends on short-to-mid-term interest rates, influenced by inflation and FOMC policy[185](index=185&type=chunk)[186](index=186&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk) | Change in interest rates (in bps) | Percent change in net interest income | | :------------------------------------ | :------------------------------------ | | +300 | (0.60)% | | +200 | (0.02)% | | +100 | 0.29% | | -100 | (0.29)% | | -200 | (0.10)% | | -300 | 0.04% | - The company's primary liquidity measure, 'Basic Surplus,' was **16.9%** of total assets (**$2.34 billion**) at March 31, 2025, well above the **5%** minimum policy level. Available borrowing capacity includes **$1.70 billion** from FHLB, **$1.01 billion** from unpledged securities, **$2.02 billion** from other bank facilities, and **$1.16 billion** from the FRB's Borrower-in-Custody program, totaling **$3.44 billion** in remaining available capacity under internal policies[192](index=192&type=chunk)[193](index=193&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=48&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Refers to the detailed discussion on market risk, specifically interest rate risk, within Item 2's liquidity management - Information regarding quantitative and qualitative disclosures about market risk is incorporated by reference from the 'Liquidity and Interest Rate Sensitivity Management' section within Item 2[198](index=198&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=48&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025 - As of March 31, 2025, the Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective[199](index=199&type=chunk) [PART II. OTHER INFORMATION](index=49&type=section&id=PART%20II.%20OTHER%20INFORMATION) Covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [ITEM 1. LEGAL PROCEEDINGS](index=49&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Reports no material legal proceedings beyond ordinary routine litigation incidental to its business - There are no material legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company or any of its subsidiaries is a party or of which any of their property is subject[200](index=200&type=chunk) [ITEM 1A. RISK FACTORS](index=49&type=section&id=ITEM%201A.%20RISK%20FACTORS) States no material changes to risk factors previously discussed in the 2024 Annual Report on Form 10-K - There are no material changes to the risk factors as previously discussed in Part I, Item 1A. of the Company's 2024 Annual Report on Form 10-K[201](index=201&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=49&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) Indicates no information to report regarding unregistered sales of equity securities or use of proceeds - No information to report for this item[202](index=202&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=49&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reports no defaults upon senior securities - No defaults upon senior securities[202](index=202&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=49&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) The company reports no mine safety disclosures - No mine safety disclosures[202](index=202&type=chunk) [ITEM 5. OTHER INFORMATION](index=49&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No Rule 10b5-1 plans or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers in Q1 2025 - During the three months ended March 31, 2025, no Rule 10b5-1 plans or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by any director or officer of the Company[202](index=202&type=chunk) [ITEM 6. EXHIBITS](index=50&type=section&id=ITEM%206.%20EXHIBITS) Lists all exhibits filed with the Form 10-Q, including organizational documents, executive compensation, certifications, and XBRL - Key exhibits include the Restated Certificate of Incorporation, Amended and Restated Bylaws, Certificate of Designation for Preferred Stock, an amendment to the Supplemental Executive Retirement Plan for Scott A. Kingsley, and various certifications (CEO, CFO) and XBRL documents[204](index=204&type=chunk) [SIGNATURES](index=51&type=section&id=SIGNATURES) This section contains the official signatures certifying the accuracy and completeness of the report - The report was duly signed on behalf of NBT Bancorp Inc. by Annette L. Burns, Chief Financial Officer, on May 9, 2025[206](index=206&type=chunk)[207](index=207&type=chunk)

Core Points - NBT Bancorp Inc. completed the merger with Evans Bancorp, Inc. on May 2, 2025, followed by a core systems conversion [1] - The merger expanded NBT Bank's branch network into Western New York, adding 14 offices in Buffalo and 4 in greater Rochester, bringing the total to 175 branches across seven states [2] - Over 200 employees and more than 40,000 customers from Evans Bank joined NBT as a result of the merger [3] - Three executives from Evans have taken leadership roles at NBT Bank, enhancing continuity in leadership for the Western Region of New York [4] - NBT Bancorp has total assets of $13.86 billion as of March 31, 2025, and operates through NBT Bank and two financial services subsidiaries [5]

Earnings Presentation First Quarter 2025 NBTB Forward-Looking Statements This presentation contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as "anticipate," "believe," "expect," "forecasts," "projects," "will," "can," "would," "should," "could," "may," or other similar terms. There are a number of factors, many of which are beyond the Company's control, that could cause actual results to dif ...

Financial Data and Key Metrics Changes - NBT Bancorp reported net income of $36.7 million or $0.77 per share, with operating earnings per share at $0.80, an increase of $0.03 compared to the prior quarter [10] - Revenues increased by 4.4% from the prior quarter and nearly 12% from the same quarter last year, driven by improvements in net interest income and fee-based revenues [10] - Operating return on assets was 1.11%, return on equity was 10%, and return on tangible common equity (ROTCE) was 14% [4][5] Business Line Data and Key Metrics Changes - Total loans increased by $40 million or 1.8%, with a diversified portfolio comprising 53% commercial and 47% consumer loans [13] - Non-interest income represented 31% of total revenues, with fee income increasing by 12.7% compared to the linked fourth quarter [18] - Net interest margin increased by 10 basis points to 3.44%, primarily due to a decrease in the cost of interest-bearing deposits [15][16] Market Data and Key Metrics Changes - Total deposits rose to $11.7 billion, up $162 million from the linked fourth quarter, mainly due to seasonal municipal deposits [14] - The deposit portfolio consists of 58% no and low-cost checking and savings accounts, while 42% is held in time and money market accounts [14] Company Strategy and Development Direction - The company is focused on supporting the semiconductor chip corridor in upstate New York, with plans to enhance financial services in this growing ecosystem [6][7] - The merger with Evans Bancorp is expected to expand the company's footprint in Buffalo and Rochester, adding over 200 employees and more than 40,000 customers [8][9] Management's Comments on Operating Environment and Future Outlook - Management noted that while macro uncertainties exist, customer pipelines remain stable across various markets [29][31] - The company anticipates modest loan growth of 2% to 3% for the upcoming quarter, down from a previous estimate of 3% to 5% due to macroeconomic uncertainties [58] Other Important Information - Net charge-offs to average loans were 27 basis points, with a significant write-down of a commercial real estate loan included in this figure [21][60] - The company has added over $100 million to shareholders' equity in the past fifteen months while maintaining a strong capital position [6] Q&A Session Summary Question: Credit demand in the market - Management indicated that pipelines are good and consistent across their footprint, with no significant project abandonment despite macro uncertainties [29][31] Question: Supply of credit and competition - Management noted that competition remains reasonable and disciplined, with some smaller banks occasionally competing outside of comfort levels [32][33] Question: Opportunities from the Evans merger - Management expressed confidence that the merger will allow Evans bankers to leverage a larger balance sheet to expand client relationships and drive loan growth [34][36] Question: Impact of the CHIPS Act on projects - Management confirmed that while there are contractual obligations related to the CHIPS Act, the overall sentiment for semiconductor manufacturing in the U.S. remains strong [44][45] Question: Fee income and loan growth expectations - Management provided insights on fee income sensitivity to market conditions and adjusted loan growth expectations for the second quarter [50][58] Question: Charge-offs and credit quality - Management indicated that charge-offs are expected to be primarily from auto and residential solar portfolios, with commercial charge-offs being more episodic [110] Question: Overall M&A appetite - Management stated that the focus remains on the Evans acquisition, but they are open to discussions with other community banks for future opportunities [101][102]

Financial Data and Key Metrics Changes - The company reported net income of $36.7 million or $0.77 per share for the first quarter, with operating earnings per share at $0.80, an increase of $0.03 compared to the prior quarter [7] - Operating return on assets was 1.11%, return on equity was 10%, and ROTCE was 14%, showing continued improvement over linked and prior year quarters [4] - Revenues increased by 4.4% from the prior quarter and almost 12% from the first quarter of the prior year, driven by improvements in net interest income and fee-based revenues [7] Business Line Data and Key Metrics Changes - Non-interest income accounted for 31% of total revenues, reflecting productive improvements in revenue and earnings generation across non-banking businesses [5][11] - Net interest income for the first quarter was $107.2 million, an increase of $1.1 million from the linked quarter and $12 million from the first quarter of the prior year [10] - Total deposits increased by $162 million to $11.7 billion, primarily due to seasonal municipal deposits [8] Market Data and Key Metrics Changes - The total loan portfolio remained diversified, with 53% in commercial relationships and 47% in consumer loans, totaling $10 billion [8] - The net interest margin increased by 10 basis points to 3.44%, driven by a decrease in the cost of interest-bearing deposits [9] Company Strategy and Development Direction - The company is focused on growth strategies in Upstate New York's semiconductor chip corridor, supporting customers in the growing ecosystem around semiconductor and advanced electronics manufacturing [5] - The merger with Evans Bancorp is expected to enhance the company's ability to provide financial services in the Buffalo and Rochester markets, adding over 200 employees and more than 40,000 customers [6] Management's Comments on Operating Environment and Future Outlook - Management noted that pipelines for credit demand are good across their markets, although macro uncertainties are causing some caution among clients [21] - The company anticipates modest loan growth of 2% to 3% for the upcoming quarters, down from a previous expectation of 3% to 5% [40] Other Important Information - The tangible book value per share reached an all-time high of $24.74, up $0.86 from the end of the previous quarter [8] - Net charge-offs to average loans were 27 basis points, with a significant write-down of a commercial real estate loan included [13] Q&A Session Summary Question: What are the high-level thoughts on the demand for credit in your markets? - Management indicated that pipelines are good and consistent across their footprint, with macro uncertainties causing some caution but no abandonment of projects [21] Question: How is competition affecting credit supply and pricing? - Generally, competition remains reasonable and disciplined, with some episodic situations in smaller markets [23] Question: What opportunities do you see with the Evans merger? - The merger is expected to allow Evans bankers to leverage a larger balance sheet to expand client relationships and drive loan growth [25] Question: How do you view the impact of the CHIPS Act on projects like Micron? - Management believes that while there may be adjustments, the overall intent to source semiconductor manufacturing in the U.S. remains strong [32] Question: What is the outlook for fee income and loan growth in the second quarter? - Fee income is expected to remain stable, with some seasonal increases, while loan growth is anticipated to be modest due to macro uncertainties [40] Question: What is the expectation for charge-offs in the coming quarters? - Charge-offs are likely to be led by auto and residential solar portfolios, with commercial charge-offs being more episodic [77]

Core Insights - NBT Bancorp reported revenue of $155.31 million for the quarter ended March 2025, marking a year-over-year increase of 10.5% and exceeding the Zacks Consensus Estimate by 2.96% [1] - The earnings per share (EPS) for the same period was $0.80, up from $0.68 a year ago, representing a surprise of 5.26% over the consensus estimate of $0.76 [1] Financial Performance Metrics - The net interest margin (FTE) was reported at 3.4%, matching the average estimate from two analysts [4] - The average balance of total interest-earning assets was $12.70 billion, slightly below the estimated $12.72 billion [4] - Net charge-offs to average loans stood at 0.3%, higher than the average estimate of 0.2% [4] - Total noninterest income reached $47.45 million, surpassing the average estimate of $44.37 million [4] - Net interest income (FTE) was reported at $107.86 million, exceeding the average estimate of $106.48 million [4] Stock Performance - NBT shares have returned -4% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Performance - Net income for Q1 2025 was $36.7 million, or $0.77 per diluted share, up from $33.8 million, or $0.71 per diluted share in Q1 2024[4] - Net income for Q1 2025 was $36,745,000, representing an increase of 2.1% from $36,005,000 in Q4 2024[26] - Basic earnings per share for Q1 2025 was $0.78, up from $0.76 in Q4 2024[26] - Operating diluted earnings per share for Q1 2025 was $0.80, compared to $0.77 in Q4 2024[28] - Return on average assets for Q1 2025 is 1.08%, up from 1.04% in Q4 2024[23] - Return on average tangible common equity for Q1 2025 was 13.63%, an increase from 13.36% in Q4 2024[29] Income and Revenue - Net interest income on a fully taxable equivalent basis was $107.2 million, an increase of $1.1 million from the prior quarter, and up $12.0 million, or 12.7%, from Q1 2024[6] - Noninterest income was $47.6 million, an increase of 12.7% from the fourth quarter of 2024, and up 10.1% from Q1 2024[12] - Total interest, fee and dividend income for Q1 2025 was $154,404,000, a decrease of 2.1% from Q4 2024's $157,737,000[26] - Net interest income after provision for loan losses for Q1 2025 was $99,669,000, compared to $103,896,000 in Q4 2024, reflecting a decrease of 4.3%[26] - Noninterest income increased to $47,452,000 in Q1 2025, up 11.8% from $42,426,000 in Q4 2024[26] Assets and Loans - Total assets increased to $13.86 billion in Q1 2025 from $13.79 billion in Q4 2024[23] - Total loans were $9.98 billion as of March 31, 2025, up $10.4 million, or 0.4% annualized, from December 31, 2024[8] - Net loans reached $9.86 billion in Q1 2025, slightly up from $9.85 billion in Q4 2024[23] - Total loan net charge-offs increased to $6,554 thousand in Q1 2025 from $5,709 thousand in Q4 2024, indicating a rise in charge-offs[24] - Total nonperforming loans decreased to $47,691 thousand in Q1 2025 from $51,617 thousand in Q4 2024, showing a reduction of 7.5%[24] Deposits and Equity - Total deposits were $11.71 billion, an increase of $161.8 million, or 1.4%, from December 31, 2024[8] - Total deposits increased to $11,708,511 thousand in Q1 2025 from $11,546,761 thousand in Q4 2024, reflecting a growth of 1.4%[25] - The total stockholders' equity increased to $1,565,775 thousand in Q1 2025 from $1,526,141 thousand in Q4 2024, reflecting a positive trend in equity growth[25] Capital Ratios - The CET1 capital ratio was 12.12% and the leverage ratio was 10.39% as of March 31, 2025[17] - Common equity tier 1 capital ratio improved to 12.12% in Q1 2025 from 11.93% in Q4 2024[23] - Tangible equity ratio for Q1 2025 is 8.68%, up from 8.42% in Q4 2024[23] - Tangible book value per share increased to $24.74 at March 31, 2025, from $23.88 at December 31, 2024[17] Tax and Expenses - The effective tax rate for Q1 2025 was 22.2%, up from 21.7% in Q1 2024[13] - Total noninterest expense for Q1 2025 was $99,900,000, slightly down from $100,775,000 in Q4 2024[26] - Acquisition expenses for Q1 2025 totaled $1,221,000, compared to $988,000 in Q4 2024[28] Mergers and Acquisitions - The company plans to complete its merger with Evans Bancorp, Inc. on May 2, 2025, which will add over 200 bankers and 18 locations[5]

Company Overview - NBT Bancorp (NBTB) is headquartered in Norwich and operates in the Finance sector, with a year-to-date stock price change of -16.98% [3] - The company currently pays a dividend of $0.34 per share, resulting in a dividend yield of 3.43%, which is higher than the Banks - Northeast industry's yield of 2.74% and the S&P 500's yield of 1.65% [3] Dividend Performance - NBT Bancorp's annualized dividend of $1.36 has increased by 3% from the previous year, with a historical average annual increase of 5.42% over the last 5 years [4] - The company's current payout ratio is 46%, indicating that it pays out 46% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for NBT Bancorp's earnings per share for 2025 is $3.48, reflecting a year-over-year growth rate of 18.37% [5] Investment Considerations - NBT Bancorp is viewed as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]

Core Viewpoint - NBT Bancorp Inc. will announce its financial results for Q1 2025 on April 24, 2025, and will host a conference call on April 25, 2025, to discuss these results [1]. Company Overview - NBT Bancorp Inc. is a financial holding company based in Norwich, NY, with total assets of $13.79 billion as of December 31, 2024 [3]. - The company operates primarily through NBT Bank, N.A., which is a full-service community bank with 157 locations across New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine, and Connecticut [3]. - NBT Bancorp also includes EPIC Retirement Plan Services, a national benefits administration firm, and NBT Insurance Agency, LLC, a full-service insurance agency [3].