NBT Bancorp Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income for the third quarter of 2026 was $58.0 million, or $1.11 per diluted share, compared to $54.5 million ($1.03 per share) in the third quarter of 2025 and $53.0 million ($1.02 per share) in the second quarter of 2026.
• Operating diluted earnings per share was $1.11 for the third quarter of 2026, up from $1.05 in the third quarter of 2025 and $1.01 in the second quarter of 2026.
• Total revenues grew 4.5% while expenses increased 3.3% from the previous quarter.
• Net interest income on a fully taxable equivalent (FTE) basis was $142.7 million, an increase of $7.4 million (5.5%) from the third quarter of 2025.
• Net interest margin (FTE) was 3.78%, an increase of 5 basis points from the prior quarter and 12 basis points from the third quarter of 2025.
• Noninterest income was $52.9 million, representing 27% of total revenues excluding net securities gains.
• Provision for loan losses was $3.8 million for the quarter, down from $6.1 million in the second quarter of 2026.
• Stockholders' equity was $1.94 billion as of September 30, 2026.
• Return on average assets was 1.41% for the quarter, compared to 1.32% in the second quarter and 1.35% in the third quarter of 2025.
• Return on average equity was 11.81% for the quarter.
• Return on average tangible common equity was 16.54% for the quarter.
• The effective tax rate was 23.7% for the third quarter of 2026.

Guidance and Future Outlook:

• Management stated that results position the company to continue serving customers and communities and creating long-term value for shareholders.
• No specific forward-looking numerical guidance for future quarters or full-year 2026 was provided in the release.

Business Segments and Product Lines:

• Period-end total loans were $11.95 billion, an increase of $350.4 million (3.0%) from December 31, 2025.
• Excluding other consumer and residential solar portfolios in a planned run-off, period-end loans increased $427.2 million (3.9%) from December 31, 2025.
• Commercial and consumer lending both showed growth in the third quarter.
• Noninterest income drivers included service charges on deposit accounts (up 13.4% from prior quarter), retirement plan administration fees (up 2.2% from prior quarter), and insurance revenues (up $1.2 million from prior quarter).
• Bank owned life insurance income was consistent with the prior quarter but decreased from the third quarter of 2025 due to a $0.9 million gain recognized in the prior year.
• Other income increased $0.7 million from the prior quarter driven by higher commercial loan swap fees.

Market and Competitive Landscape:

• The company operates through NBT Bank, N.A. with 174 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine, and Connecticut.
• The company also operates EPIC Retirement Plan Services and NBT Insurance Agency, LLC.
• Deposit mix characteristics improved with an increase in demand deposits, interest-bearing checking, savings, and money market accounts, partially offset by a decrease in time deposits.
• The loan-to-deposit ratio was 87.9% at September 30, 2026, compared to 85.9% at December 31, 2025.

Risks and Challenges:

• Nonperforming assets to total assets increased to 0.43% at September 30, 2026, from 0.40% at June 30, 2026, primarily due to additional commercial lending relationships placed in nonaccrual status and an increase in residential past due loans.
• Net charge-offs to average loans were 0.14% annualized for the third quarter of 2026.
• The allowance for loan losses to total loans was 1.17% at September 30, 2026, down from 1.18% at June 30, 2026.
• The reserve for unfunded loan commitments was $6.0 million at September 30, 2026.
• Accumulated other comprehensive loss increased by $44.6 million reflecting the change in the fair value of securities available for sale.

Management Commentary and Tone:

• CEO Scott Kingsley described the results as "record third quarter results" reflecting the strength of the diversified business model and disciplined execution.
• Management highlighted solid loan growth, growth in net interest income, and expansion of net interest margin.
• Management noted the continued maintenance of strong capital levels.
• Noninterest expense increased 4.7% compared to the third quarter of 2025 (excluding acquisition expenses), driven by investments in people, markets, and infrastructure.

Other Key Points:

• The Board of Directors declared a fourth-quarter cash dividend of $0.40 per share, an 8.1% increase over the third quarter of 2025 dividend. This marks the fourteenth consecutive year of annual dividend increases.
• The dividend will be paid on December 15, 2026, to stockholders of record as of December 1, 2026.
• The Company purchased 20,118 shares of common stock during the third quarter for $1.0 million at an average price of $50.02 per share.
• As of October 24, 2026, 1,297,923 shares remained available for repurchase under the plan.
• Stockholders' equity increased $46.3 million from December 31, 2025, driven by net income generation of $162.2 million, partially offset by dividends declared of $59.2 million and stock repurchases of $15.0 million.
• Tangible book value per share was $27.75 at September 30, 2026, an increase of 4.6% from December 31, 2025.
• The Common Equity Tier 1 (CET1) capital ratio was 12.43% and the leverage ratio was 9.99% as of September 30, 2026.
• Total assets were $16.39 billion at September 30, 2026.
• Total deposits were $13.59 billion at September 30, 2026.