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

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

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

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]