NBT Bancorp Inc.

What they do

NBT Bancorp operates primarily through its only bank subsidiary, NBT Bank, National Association, providing commercial banking, retail banking and wealth management services. It also runs a full-service retirement plan administration and recordkeeping subsidiary and a regional insurance agency subsidiary. Its market area covers upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine and central and northwestern Connecticut. The company positions itself as a community-oriented institution with local decision-making.

Revenue drivers

• Net interest income — Earned on loans and securities funded by deposits; FTE net interest income was $137.6 million in Q2 2026 with an FTE net interest margin of 3.73%.
• Noninterest income — Generated from fees and other services, including retirement plan administration, insurance agency operations and wealth management; $49.6 million in Q2 2026, or 27% of total revenues excluding net securities gains.
• Loan portfolio — Period-end loans were $11.87 billion at June 30, 2026, up $276.0 million, or 2.4%, from December 31, 2025, with all business lines growing in Q2 2026.
• Deposit franchise — Period-end deposits were $13.54 billion at June 30, 2026; total cost of deposits was 1.33% for the quarter, down 1 bp from Q1 2026.

Recent performance

Second quarter 2026 net income was $53.0 million, or $1.02 per diluted share, compared with $22.5 million, or $0.44 per diluted share, in the second quarter of 2025, and $51.1 million, or $0.98 per diluted share, in Q1 2026. Operating diluted EPS was $1.01 in Q2 2026 versus $0.88 a year earlier. Net interest income on an FTE basis was $137.6 million and NIM was 3.73%, up 14 basis points from one year ago and 1 bp from the prior quarter. Nonperforming loans to total loans were 0.55% and the allowance for loan losses to total loans was 1.18%. The prior-year comparison is significantly affected by the Evans Bancorp acquisition completed May 2, 2025.

Strategy

NBT describes its business philosophy as operating as a community bank with local decision-making, offering banking and financial services to retail, commercial and municipal customers. The company completed the Evans Bancorp acquisition 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, and issued 5.1 million shares of common stock valued at $221.8 million at closing. Management cites diversified banking, disciplined relationship-building and sustainable growth, and it is running off the other consumer and residential solar portfolios, which decreased $52.4 million from December 31, 2025. It invests in employee development, including the LinkedIn Learning Library used by 90% of employees, and in 2026 will conduct pulse surveys following its 2025 engagement survey. The company raised its quarterly dividend for the fourteenth consecutive year, to $0.40 per share.

Risks

• Credit quality — NBT's loan book carries credit risk, with nonperforming loans at 0.55% of total loans and net charge-offs at 0.15% of average loans annualized in Q2 2026.
• Interest rate sensitivity — Management actively manages liquidity and interest rate sensitivity through its mix of core deposit products and other funding sources, so rate moves affect net interest income.
• Acquisition integration — The Evans Bancorp acquisition added 200 employees and 18 banking locations, and the company cites greater-than-expected integration costs or difficulties among its risk factors.
• Regulatory and legislative change — NBT must comply with banking, securities, insurance and tax laws, including the Dodd-Frank Act and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018.

Outlook

CEO Scott Kingsley said the company is well positioned entering the second half of 2026, citing stronger year-over-year earnings, loan growth across every business line and an expanded net interest margin. Management pointed to strong balance sheet fundamentals, healthy loan growth and continued franchise momentum. It also approved an 8.1% increase in the quarterly cash dividend to $0.40 per share in the third quarter, the fourteenth consecutive annual increase. The 10-Q states that results for the six months ended June 30, 2026 are not necessarily indicative of the full year.