NBT Bancorp Inc. Announces Second Quarter 2026 Results and Approves an 8.1% Cash Dividend Increase

NORWICH, N.Y., July 27, 2026 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. ("NBT" or the "Company") (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and six months ended June 30, 2026.

Net income for the second quarter of 2026 was $53.0 million, or $1.02 per diluted common share, compared to $22.5 million, or $0.44 per diluted common share, for the second quarter of 2025, and $51.1 million, or $0.98 per diluted common share, for the first quarter of 2026. Operating diluted earnings per share(1), a non-GAAP measure, was $1.01 for the second quarter of 2026, compared to $0.88 for the second quarter of 2025 and $0.97 for the first quarter of 2026.

The Company completed the acquisition of Evans Bancorp, Inc. ("Evans") on May 2, 2025, adding 200 employees and 18 banking locations in Western New York, $1.67 billion in loans and $1.86 billion in deposits. In connection with the transaction, the Company issued 5.1 million shares of common stock, with a value of $221.8 million as of the closing date. The comparison to the second quarter of 2025 is significantly impacted by the Evans acquisition.

CEO Comments

"The second quarter demonstrated the strength and momentum of NBT's diversified banking franchise," said NBT President and CEO Scott Kingsley. "We generated significantly stronger earnings than the prior year quarter, grew loans across every business line and expanded our net interest margin to 3.73%, an increase of 14 basis points from one year ago. These results reflect the trust our customers place in us, the dedication of our employees and our disciplined approach to building long-term relationships and sustainable growth. With strong balance sheet fundamentals, healthy loan growth and continued momentum across our franchise, we are well positioned as we enter the second half of 2026."

"We are also pleased to announce that we have increased our quarterly cash dividend for the fourteenth consecutive year to $0.40 per share in the third quarter," added Kingsley. "This increase in the quarterly cash dividend of 8.1% affirms our continued commitment to providing favorable long-term returns to our shareholders."

Second Quarter 2026 Financial Highlights

Loans

• Period end total loans were $11.87 billion at June 30, 2026, compared to $11.60 billion at December 31, 2025, with all business lines experiencing growth in the second quarter of 2026.

• Period end total loans increased $276.0 million, or 2.4% from December 31, 2025 which included a $52.4 million decrease in the other consumer and residential solar portfolios, which are in a planned run-off status.
  
  

Deposits 

• Total deposits at June 30, 2026 were $13.54 billion compared to $13.50 billion at December 31, 2025. 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.

• Total deposits decreased $205.7 million from March 31, 2026, primarily due to expected seasonal municipal outflows.

• The loan to deposit ratio was 87.7% at June 30, 2026, compared to 85.9% at December 31, 2025.
  
  

Net Interest Income and Net Interest Margin

• Net interest income for the second quarter of 2026 was $137.0 million, an increase of $2.6 million, or 1.9%, from the first quarter of 2026 and an increase of $12.7 million, or 10.3%, from the second quarter of 2025. The increase in net interest income from the first quarter of 2026 was driven by one additional day in the second quarter of 2026, organic growth in interest-earning assets and a decrease in funding costs. The increase in net interest income from the second quarter of 2025 resulted primarily from the improvement in net interest margin, the Evans acquisition, organic growth in interest-earning assets and a decrease in funding costs.

• The NIM on an FTE basis for the second quarter of 2026 was 3.73%, an increase of 1 bp from the first quarter of 2026, as a 1 bp decrease in the cost of funds more than offset a 1 bp decline in earning asset yields. The NIM on an FTE basis increased 14 bps from the second quarter of 2025 due to the impact of the Evans acquisition, organic growth and a decrease in the cost of funds.

• Earning asset yields for the three months ended June 30, 2026 decreased 1 bp from the prior quarter to 5.05%. Loan yields for the three months ended June 30, 2026 decreased 2 bps from the prior quarter to 5.64%. Earning asset yields decreased 7 bps from the same quarter in the prior year due to Federal Reserve interest rate cuts in 2025. Average earning assets increased $109.8 million, or 0.7%, from the first quarter of 2026 and grew $846.2 million, or 6.1%, from the second quarter of 2025 due primarily to the addition of the interest-earning assets acquired from Evans and organic earning asset growth.

• Total cost of deposits, including noninterest bearing deposits, was 1.33% for the second quarter of 2026, a decrease of 1 bp from the prior quarter, primarily due to the decrease in the cost of time deposits. Total cost of deposits decreased 18 bps from the same period in the prior year.

• Total cost of funds for the three months ended June 30, 2026 was 1.41%, a decrease of 1 bp from the prior quarter and a decrease of 21 bps from the second quarter of 2025.
  
  

Asset Quality and Allowance for Loan Losses

• Net charge-offs to total average loans for the second quarter of 2026 was 15 bps, compared to 17 bps in the prior quarter primarily due to a decrease in commercial net charge-offs, partially offset by an increase in residential solar and other consumer net charge-offs.

• Nonperforming assets to total assets was 0.40% at June 30, 2026, up from 0.38% at March 31, 2026 and up from 0.33% at December 31, 2025. The increase in nonperforming assets was primarily due to an additional commercial lending relationship placed in nonaccrual status during the quarter. Past due loans to total loans increased 23 basis points from March 31, 2026, driven primarily by an increase in past due commercial loans. The majority of these loans are expected to return to current status in the third quarter.

• Provision expense for the three months ended June 30, 2026 was $6.1 million, compared to $5.6 million for the first quarter of 2026. The increase in the provision for loan losses during the quarter was primarily due to providing for the second quarter's loan growth.

• The allowance for loan losses was $140.5 million, or 1.18% of total loans, at June 30, 2026, compared to $138.6 million, or 1.20% of total loans, at March 31, 2026 and compared to $138.0 million, or 1.19% of total loans, at December 31, 2025. The increase in the allowance for loan losses in the second quarter of 2026 was primarily driven by providing for the second quarter's loan growth, partially offset by portfolio mix changes with the run-off of the other consumer and residential solar portfolios.

• The reserve for unfunded loan commitments was $5.5 million at June 30, 2026 and March 31, 2026, compared to $5.8 million at December 31, 2025.
  
  

Noninterest Income

• Total noninterest income, excluding securities gains, was $49.6 million for the three months ended June 30, 2026, consistent with the first quarter of 2026, and up $2.7 million, or 5.8%, from the second quarter of 2025.

• Service charges on deposit accounts were comparable to the prior quarter and higher than the second quarter of 2025 due primarily to the Evans acquisition and new account growth.

• Card services income increased $0.6 million, or 9.7%, from the prior quarter and increased $0.5 million, or 8.8% from the second quarter of 2025. The increase was driven by seasonal increased volumes.

• Retirement plan administration fees increased $0.4 million, or 2.2%, from the prior quarter and increased $1.2 million, or 7.8%, from the second quarter of 2025. The increase from the prior quarter and the second quarter of 2025 was driven by higher activity-based fees, additional fees from new customer relationships and increased market values of assets under administration.
  
  

Noninterest Expense

• Total noninterest expense was $111.4 million for the second quarter of 2026, compared to $112.2 million for the first quarter of 2026 and $122.6 million for the second quarter of 2025. Excluding acquisition expenses of $17.2 million in the second quarter of 2025, noninterest expense was 5.7% higher than the second quarter of 2025 primarily due to the Evans acquisition and continued investments in our people, markets and infrastructure.

• Salaries and benefits increased 0.4% from the prior quarter driven by a full quarter of merit pay increases, which were effective in March, one additional payroll day and higher medical expenses. The increase was partially offset by lower payroll taxes and stock-based compensation expenses which are seasonally higher in the first quarter. The increase from the second quarter of 2025 was driven by the impact of the Evans acquisition as NBT added 200 Evans employees in May 2025, annual merit pay increases and higher medical expenses.

• Technology and data services were consistent with the prior quarter and increased $1.0 million from the second quarter of 2025 primarily due to the Evans acquisition, timing of planned activities and ongoing investment in enterprise technology initiatives.

• Occupancy costs decreased $1.5 million from the prior quarter and increased $0.4 million from the second quarter of 2025. The $1.5 million decrease from the prior quarter was driven by lower seasonal maintenance and utilities costs following the harsh winter conditions across the footprint in the first quarter of 2026. The $0.4 million increase from the second quarter of 2025 was driven by additional expenses from the Evans acquisition and higher facilities costs related to new branch banking locations.

• Professional fees and outside services were consistent with the prior quarter and increased $0.6 million from the second quarter of 2025 primarily due to the Evans acquisition and the timing of various initiatives.

• No provision expense for unfunded loan commitments was recognized for the three months ended June 30, 2026, compared to expense of $1.7 million for the three months ended June 30, 2025, which included $0.5 million of acquisition-related provision associated with unfunded loan commitments acquired in the Evans acquisition.

• Other expenses were consistent with the prior quarter and increased $0.6 million from the second quarter of 2025. The increase from the second quarter of 2025 reflects the Evans acquisition including increased FDIC insurance expense, travel and charitable contributions.
  
  

Income Taxes

• The effective tax rate for the second quarter of 2026 was 23.3%, which was consistent with the prior quarter and down from 26.7% for the second quarter of 2025. The decrease in the effective tax rate from the second quarter of 2025 was primarily due to the second quarter 2025 estimated impact of nondeductible acquisition expenses related to the Evans acquisition and a lower level of tax-exempt income as a percentage of total pretax income.
  
  

Capital

• Tangible common equity to tangible assets(1) was 9.16% at June 30, 2026. Tangible book value per share(2) was $27.71 at June 30, 2026, which increased 4.4% from $26.54 at December 31, 2025 and increased 12.8% from $24.57 at June 30, 2025.

• Stockholders' equity increased $47.7 million from December 31, 2025 driven by net income generation of $104.2 million, partially offset by dividends declared of $38.5 million, the repurchase of common stock of $14.0 million and a $6.5 million increase in accumulated other comprehensive loss reflecting the change in the fair value of securities available for sale.

• As of June 30, 2026, CET1 capital ratio of 12.24%, leverage ratio of 9.85% and total risk-based capital ratio of 14.18%.
  
  

Dividend

• The Board of Directors approved a third-quarter cash dividend of $0.40 per share at a meeting held earlier today. The dividend represents a $0.03 per share, or 8.1%, increase over the dividend paid in the third quarter of 2025. This is the Company's fourteenth consecutive year of annual dividend increases. The dividend will be paid on September 15, 2026 to stockholders of record as of September 1, 2026.
  
  

Stock Repurchase

• The Company purchased 68,595 shares of its common stock during the second quarter of 2026 for a total of $3.0 million at an average price of $43.96 per share under its previously announced stock repurchase program. The Company may repurchase shares of its common stock from time to time to mitigate the potential dilutive effects of stock-based incentive plans and other potential uses of common stock for corporate purposes. As of June 30, 2026, there were 1,431,405 shares available for repurchase under this plan.
  
  

Subordinated Debt Redemption

• On June 30, 2026, the Company redeemed $25 million of subordinated debt using existing liquidity sources. The subordinated debt had a fixed rate of 3.50% which converted to a floating rate at 6.50% in the second quarter of 2026.
  
  

Conference Call and Webcast

The Company will host a conference call at 10:00 a.m. (Eastern) Tuesday, July 28, 2026, to review the second quarter 2026 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company's Event Calendar page at www.nbtbancorp.com/bn/presentations-events.html#events and will be archived for twelve months.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $16.21 billion at June 30, 2026. The Company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A. has 173 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a national benefits administration firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service regional insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtbank.com/Insurance.

Forward-Looking Statements

This press release 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 differ materially from those contemplated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) local, regional, national and international economic conditions, including actual or potential stress in the banking industry, and the impact they may have on the Company and its customers, and the Company's assessment of that impact; (2) changes in the level of nonperforming assets and charge-offs; (3) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (4) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board ("FRB") and international trade disputes (including threatened or implemented tariffs imposed by the U.S. and threatened or implemented tariffs imposed by foreign countries in retaliation); (5) inflation, interest rate, securities market and monetary fluctuations; (6) political instability; (7) acts of war, including international military conflicts, or terrorism; (8) the timely development and acceptance of new products and services and the perceived overall value of these products and services by users; (9) changes in consumer spending, borrowing and saving habits; (10) changes in the financial performance and/or condition of the Company's borrowers; (11) technological changes; (12) acquisition and integration of acquired businesses; (13) the ability to increase market share and control expenses; (14) changes in the competitive environment among financial holding companies; (15) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiaries must comply, including those under the Dodd-Frank Act, and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (16) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (17) changes in the Company's organization, compensation and benefit plans; (18) the costs and effects of legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; (19) greater than expected costs or difficulties related to the integration of new products and lines of business; and (20) the Company's success at managing the risks involved in the foregoing items.

The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made, and advises readers that various factors, including, but not limited to, those described above and other factors discussed in the Company's annual and quarterly reports previously filed with the SEC, could affect the Company's financial performance and could cause the Company's actual results or circumstances for future periods to differ materially from those anticipated or projected.

Unless required by law, the Company does not undertake, and specifically disclaims any obligations to, publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Non-GAAP Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles ("GAAP"). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information that is important to an understanding of the results of the Company's core business as well as provide information standard in the financial institution industry. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation.