NBT Bancorp Inc. Announces Second Quarter 2025 Net Income and Approves an 8.8% Cash Dividend Increase

NORWICH, N.Y., July 28, 2025 (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, 2025. Net income for the second quarter of 2025 was $22.5 million, or $0.44 per diluted common share, compared to $32.7 million, or $0.69 per diluted common share, for the second quarter of 2024, and $36.7 million, or $0.77 per diluted common share, for the first quarter of 2025. Operating diluted earnings per share(1), a non-GAAP measure, was $0.88 for the second quarter of 2025, compared to $0.69 for the second quarter of 2024 and $0.80 for the first quarter of 2025. 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 comparisons to the first quarter of 2025 and to the second quarter of 2024 are significantly impacted by the Evans acquisition. CEO Comments “Continued improvement in net interest margin results and the additive impact of our successful merger with Evans Bancorp, Inc. resulted in second quarter operating earnings per share that were 28% above the second quarter of 2024 and 10% higher than the first quarter of this year,” said NBT President and CEO Scott Kingsley. “The detailed plans executed by our integration team resulted in a seamless transition experience, and we are excited that we are now building on the relationships Evans established with customers, employees, communities and shareholders in the Western Region of New York.”“We are also pleased to announce that we have increased our dividend for the thirteenth consecutive year to $0.37 per share in the third quarter,” added Kingsley. “This increase in the quarterly cash dividend of 8.8% affirms our continued commitment to providing favorable long-term returns to our shareholders.”Second Quarter 2025 Financial Highlights Net Income Net income was $22.5 million and diluted earnings per share was $0.44Operating net income was $44.9 million and operating diluted earnings per share of $0.88(1) Net Interest Income / NIM Net interest income on a fully taxable equivalent (“FTE”) basis was $124.9 million, an increase of $17.0 million from the prior quarter(1)Net interest margin (“NIM”) on an FTE basis was 3.59%(1), an increase of 15 basis points (“bps”) from the prior quarterEarning asset yields of 5.12% were up 17 bps from the prior quarterTotal cost of funds of 1.62% were up 2 bps from the prior quarterIncluded in FTE net interest income was $5.0 million of acquisition-related net accretion, which was up $2.8 million from the first quarter of 2025 Noninterest Income Noninterest income was $46.8 million and 27% of total revenues, excluding net securities gains (losses) Loans and Credit Quality Period end total loans were $11.62 billion as of June 30, 2025, including $1.67 billion of loans acquired from EvansNet charge-offs to average loans was 0.09% annualizedNonperforming loans to total loans was 0.40%Allowance for loan losses to total loans was 1.21%Provision for loan losses was $17.8 million and included $13.0 million of acquisition-related provision for credit losses Deposits Deposits were $13.52 billion as of June 30, 2025, including $1.86 billion in deposits acquired from EvansTotal cost of deposits was 1.51% for the second quarter of 2025, up 2 bps from the first quarter of 2025 Capital Stockholders’ equity was $1.81 billion as of June 30, 2025Tangible book value per share(2) was $24.57 at June 30, 2025Tangible equity to assets of 8.30%(1)CET1 ratio of 11.37%; Leverage ratio of 9.55% Loans Period end total loans were $11.62 billion at June 30, 2025, compared to $9.97 billion at December 31, 2024 and $9.85 billion at June 30, 2024.Period end total loans increased $1.65 billion from December 31, 2024 and $1.77 billion from June 30, 2024. Excluding the other consumer and residential solar portfolios, which are in a planned run-off status, and the loans acquired from Evans, period end loans increased $221.0 million, or 2.5%, from June 30, 2024. Deposits Total deposits at June 30, 2025 were $13.52 billion, compared to $11.55 billion at December 31, 2024 and $11.27 billion at June 30, 2024. Excluding the deposits acquired from Evans, deposits increased $104.4 million from December 31, 2024 and $379.7 million, or 3.4%, from June 30, 2024. Deposit mix characteristics also improved with an increase in demand deposits, interest-bearing checking and money market accounts offset by a decrease in time deposits.The loan to deposit ratio was 86.0% at June 30, 2025, compared to 86.3% at December 31, 2024 and 87.4% at June 30, 2024. Net Interest Income and Net Interest Margin Net interest income for the second quarter of 2025 was $124.2 million, an increase of $17.0 million, or 15.9%, from the first quarter of 2025 and an increase of $27.0 million, or 27.8%, from the second quarter of 2024. The increase in net interest income from the first quarter of 2025 was largely attributed to the Evans acquisition with higher earning asset yields also contributing to the increase. The increase in net interest income from the second quarter of 2024 resulted primarily from the Evans acquisition, the improvement in net interest margin and organic growth in interest-earning assets.The NIM on an FTE basis for the second quarter of 2025 was 3.59%, an increase of 15 bps from the first quarter of 2025. This increase was primarily driven by an increase in earning asset yields and acquisition-related net accretion. The NIM on an FTE basis increased 41 bps from the second quarter of 2024 due to higher yields on earning assets, including acquisition-related net accretion and a decrease in the cost of interest-bearing liabilities.Earning asset yields for the three months ended June 30, 2025 increased 17 bps from the prior quarter to 5.12%. Loan yields for the three months ended June 30, 2025 increased 15 bps from the prior quarter to 5.77%, due to loans originating at higher rates than portfolio yields during the quarter and acquisition-related net accretion. Earnings asset yields increased 20 bps from the same quarter in the prior year as new loan yields were priced higher than portfolio yields and acquisition-related net accretion. Average earning assets increased $1.26 billion, or 9.9%, from the first quarter of 2025 and grew $1.59 billion, or 12.9%, from the second quarter of 2024 due primarily to the addition of $1.95 billion in interest-earnings assets in May of 2025 from the Evans acquisition and organic earning asset growth.NBT completed the sale of the Evans available for sale investment securities portfolio in May which contributed to the increase in short-term interest-bearing accounts in the second quarter of 2025. At acquisition, the portfolio had a fair value of approximately $255 million.Total cost of deposits, including noninterest bearing deposits, was 1.51% for the second quarter of 2025, an increase of 2 bps from the prior quarter as Evans higher cost of deposits, primarily in interest-bearing checking and savings deposit accounts, were partially offset by a decrease in the cost of time deposits. Total cost of deposits decreased 17 bps from the same period in the prior year.Total cost of funds for the three months ended June 30, 2025 was 1.62%, an increase of 2 bps from the prior quarter and a decrease of 23 bps from the second quarter of 2024. Asset Quality and Allowance for Loan Losses Net charge-offs to total average loans for the second quarter of 2025 was 9 bps compared to 27 bps in the prior quarter primarily due to a decrease in both commercial and consumer net charge-offs. Included in net charge-offs for the first quarter of 2025 was a $2.1 million write-down of a nonperforming commercial real estate loan to the estimated fair value in the first quarter of 2025.Nonperforming assets to total assets was 0.29% at June 30, 2025, compared to 0.35% at March 31, 2025 and compared to 0.38% at December 31, 2024. During the second quarter of 2025, the foreclosure on the collateral of a nonperforming commercial real estate loan, where the Company was not the lead bank, was completed. The Company’s participation interest was transferred into a newly formed special purpose entity structured as a limited liability company, which will be accounted for using the equity method of accounting and was reported in other assets.Provision expense for the three months ended June 30, 2025 was $17.8 million, compared to $7.6 million for the first quarter of 2025. The increase in the provision for loan losses during the quarter was due to $13.0 million of acquisition-related provision for loan losses and modest deterioration in the economic forecast, partially offset by a decrease in net charge-offs from the prior quarter and portfolio mix changes with the run-off of the other consumer and residential solar portfolios.The allowance for loan losses was $140.2 million, or 1.21% of total loans, at June 30, 2025, compared to $117.0 million, or 1.17% of total loans, at March 31, 2025 and compared to $116.0 million, or 1.16% of total loans, at December 31, 2024. The increase in the allowance for loan losses in the second quarter of 2025 included $20.7 million of allowance for acquired Evans loans, which included both the $13.0 million of non-purchased credit deteriorated allowance recognized through the provision for loan losses and the $7.7 million of purchased credit deteriorated allowance reclassified from loans. In addition, a modest deterioration of the economic forecast contributed to the increase in the allowance for loan losses, partially offset by the portfolio mix changes with the run-off of the other consumer and residential solar portfolios.The reserve for unfunded loan commitments was $6.2 million at June 30, 2025, compared to $4.5 million at March 31, 2025 and compared to $4.4 million at December 31, 2024. The provision for unfunded loan commitments in the second quarter of 2025 included $0.5 million of acquisition-related provision for unfunded loan commitments. Noninterest Income Total noninterest income, excluding securities gains (losses), was $46.8 million for the three months ended June 30, 2025, down $0.7 million, or 1.5%, from the first quarter of 2025, and up $3.5 million, or 8.1%, from the second quarter of 2024.Card services income increased $0.8 million from the prior quarter and increased $0.5 million from the second quarter of 2024, driven by the Evans acquisition and increased volumes.Retirement plan administration fees were consistent with the prior quarter and increased $0.9 million, or 6.2%, from the second quarter of 2024. The increase from the second quarter of 2024 was driven by higher market values of assets under administration and the acquisition of a small third-party administrator (“TPA”) business in the fourth quarter of 2024.Wealth management fees were consistent with the prior quarter and increased $0.5 million, or 5.0%, from the second quarter of 2024. The increase from the second quarter of 2024 was driven by market performance and growth in new customer accounts.Insurance revenues decreased $0.7 million from the seasonally high first quarter of 2025 and increased 6.5% from the prior year due to organic growth.Bank owned life insurance income decreased from the first quarter of 2025 due to a $1.3 million gain recognized in the first quarter of 2025. Noninterest Expense Total noninterest expense was $122.6 million for the second quarter of 2025, compared to $99.9 million for the first quarter of 2025 and $89.6 million for the second quarter of 2024. Total noninterest expense, excluding $17.2 million of acquisition expenses in the second quarter of 2025 and $1.2 million of acquisition expenses in the first quarter of 2025, increased 6.8% compared to the previous quarter and increased 17.7% from the second quarter of 2024. The increase was primarily due to the acquisition of Evans.Salaries and benefits increased 5.7% from the prior quarter driven by the Evans acquisition as we added 200 Evans employees to NBT in May, a full quarter of merit pay increases, which were effective in March, and higher medical costs. These increases were 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 2024 was driven by the impact of the Evans acquisition, merit pay increases, higher medical and other benefit costs.Technology and data services increased $0.6 million from the prior quarter and $1.6 million from the second quarter of 2024 primarily due to the Evans acquisition, timing of planned initiatives and continued investment in digital platform solutions.Occupancy costs were consistent from the prior quarter due to lower seasonal maintenance and utilities costs being offset by the additional expenses from the Evans acquisition. The $1.4 million increase from the second quarter of 2024 was driven by the additional expenses from the Evans acquisition, higher utilities and higher facilities costs related to new banking locations.Amortization of intangible assets increased $0.9 million from the prior quarter and from the second quarter of 2024 primarily due to the amortization of intangible assets related to the Evans acquisition. Income Taxes The effective tax rate for the second quarter of 2025 was 26.7%, which was up from 22.0% for the second quarter of 2024 primarily due to the estimated impact of acquisition expenses related to the Evans acquisition and a lower level of tax-exempt income as a percentage of total taxable income. Capital Tangible common equity to tangible assets(1) was 8.30% at June 30, 2025. Tangible book value per share(2) was $24.57 at June 30, 2025, $24.74 at March 31, 2025 and $22.54 at June 30, 2024.Stockholders’ equity increased $279.0 million from December 31, 2024 driven by the Evans acquisition adding $221.8 million of capital, net income generation of $59.3 million and a $31.4 million decrease in accumulated other comprehensive loss reflecting the change in the fair value of securities available for sale, partially offset by dividends declared of $33.9 million.As of June 30, 2025, CET1 capital ratio of 11.37%, leverage ratio of 9.55% and total risk-based capital ratio of 14.48%. Dividend The Board of Directors approved a third-quarter cash dividend of $0.37 per share at a meeting held earlier today. The dividend represents a $0.03 per quarter, or 8.8%, increase over the dividend paid in the third quarter of 2024. This is the Company’s thirteenth consecutive year of annual dividend increases. The dividend will be paid on September 15, 2025 to stockholders of record as of September 1, 2025. Stock Repurchase The Company did not purchase shares of its common stock during the three months ended June 30, 2025. 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, 2025, there were 1,992,400 shares available under the Company’s share repurchase program. Evans Bancorp, Inc. Merger On May 2, 2025, the Company completed the acquisition of Evans. Evans was headquartered in Williamsville, New York. Its primary subsidiary, Evans Bank, National Association, was a federally-chartered national banking association operating 18 banking locations in Western New York.In connection with the acquisition, the Company issued 5.1 million shares and acquired approximately $130.4 million of net assets, including $1.67 billion of loans and $1.86 billion in deposits. As a result of the acquisition, the Company recorded $91.4 million in goodwill and a $33.2 million core deposit intangible. As of the acquisition date, the fair value discount was $95.2 million for loans, net of the reclassification of the purchase credit deteriorated allowance and a $0.6 million net discount related to long-term debt. Subordinated Debt Redemption In July of 2025, the Company redeemed $118 million of subordinated debt that had a weighted average rate of 5.45% using existing liquidity sources. The $118 million of subordinated debt would have converted to a weighted average floating rate above 9%. Conference Call and Webcast The Company will host a conference call at 10:00 a.m. (Eastern) Tuesday, July 29, 2025, to review the second quarter 2025 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 $16.01 billion at June 30, 2025. 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 175 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 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 the 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 possibility that NBT may be unable to achieve expected synergies and operating efficiencies in the Evans merger within the expected timeframes or at all or to successfully integrate Evans operations and those of NBT; (14) the ability to increase market share and control expenses; (15) changes in the competitive environment among financial holding companies; (16) 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; (17) 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; (18) changes in the Company’s organization, compensation and benefit plans; (19) 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; (20) greater than expected costs or difficulties related to the integration of new products and lines of business; and (21) 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 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. Contact:Scott A. Kingsley, President and CEO Annette L. Burns, Executive Vice President and CFO NBT Bancorp Inc. 52 South Broad Street Norwich, NY 13815 607-337-6589 NBT Bancorp Inc. and Subsidiaries Selected Financial Data (unaudited, dollars in thousands except per share data) 2025 2024 2nd Q1st Q4th Q3rd Q2nd Q Profitability (reported) Diluted earnings per share$ 0.44 $0.77 $0.76 $0.80 $0.69 Weighted average diluted common shares outstanding 50,787,474 47,477,391 47,505,760 47,473,417 47,382,814 Return on average assets(3) 0.59% 1.08% 1.04% 1.12% 0.98% Return on average equity(3) 5.27% 9.68% 9.44% 10.21% 9.12% Return on average tangible common equity(1)(3) 8.01% 13.63% 13.36% 14.54% 13.23% Net interest margin(1)(3) 3.59% 3.44% 3.34% 3.27% 3.18% 6 Months Ended June 30, 2025 2024 Profitability (reported) Diluted earnings per share$ 1.21 $1.40 Weighted average diluted common shares outstanding 49,143,067 47,381,054 Return on average assets(3) 0.82% 1.00% Return on average equity(3) 7.35% 9.32% Return on average tangible common equity(1)(3) 10.69% 13.55% Net interest margin(1)(3) 3.52% 3.16% 2025 2024 2nd Q1st Q4th Q3rd Q2nd Q Profitability (operating) Diluted earnings per share(1)$ 0.88 $0.80 $0.77 $0.80 $0.69 Return on average assets(1)(3) 1.19% 1.11% 1.06% 1.12% 0.98% Return on average equity(1)(3) 10.52% 9.95% 9.60% 10.23% 9.14% Return on average tangible common equity(1)(3) 15.25% 13.99% 13.57% 14.56% 13.26% 6 Months Ended June 30, 2025 2024 Profitability (operating) Diluted earnings per share(1)$ 1.70 $1.37 Return on average assets(1)(3) 1.16% 0.98% Return on average equity(1)(3) 10.34% 9.09% Return on average tangible common equity(1)(3) 14.77% 13.23% 2025 2024 2nd Q1st Q4th Q3rd Q2nd Q Balance sheet data Short-term interest-bearing accounts$ 276,786 $37,385 $78,973 $231,671 $35,207 Securities available for sale 1,729,428 1,704,677 1,574,664 1,509,338 1,439,445 Securities held to maturity 809,664 836,833 842,921 854,941 878,909 Net loans 11,484,480 9,863,267 9,853,910 9,787,541 9,733,847 Total assets 16,014,781 13,864,251 13,786,666 13,839,552 13,501,909 Total deposits 13,515,232 11,708,511 11,546,761 11,588,278 11,271,459 Total borrowings 411,376 312,977 414,983 456,666 476,082 Total liabilities 14,209,615 12,298,476 12,260,525 12,317,572 12,039,954 Stockholders' equity 1,805,166 1,565,775 1,526,141 1,521,980 1,461,955 Capital Equity to assets 11.27% 11.29% 11.07% 11.00% 10.83% Tangible equity ratio(1) 8.30% 8.68% 8.42% 8.36% 8.11% Book value per share$ 34.46 $33.13 $32.34 $32.26 $31.00 Tangible book value per share(2)$ 24.57 $24.74 $23.88 $23.83 $22.54 Leverage ratio 9.55% 10.39% 10.24% 10.29% 10.16% Common equity tier 1 capital ratio 11.37% 12.12% 11.93% 11.86% 11.70% Tier 1 capital ratio 11.37% 13.02% 12.83% 12.77% 12.61% Total risk-based capital ratio 14.48% 15.24% 15.03% 15.02% 14.88% Common stock price (end of period)$ 41.55 $42.90 $47.76 $44.23 $38.60 NBT Bancorp Inc. and Subsidiaries Asset Quality and Consolidated Loan Balances (unaudited, dollars in thousands) 2025 2024 2nd Q1st Q4th Q3rd Q2nd Q Asset quality Nonaccrual loans$ 43,181 $44,829 $45,819 $33,338 $34,755 90 days past due and still accruing 3,211 2,862 5,798 3,981 3,333 Total nonperforming loans 46,392 47,691 51,617 37,319 38,088 Other real estate owned 345 308 182 127 74 Total nonperforming assets 46,737 47,999 51,799 37,446 38,162 Allowance for loan losses 140,200 117,000 116,000 119,500 120,500 Asset quality ratios Allowance for loan losses to total loans 1.21% 1.17% 1.16% 1.21% 1.22% Total nonperforming loans to total loans 0.40% 0.48% 0.52% 0.38% 0.39% Total nonperforming assets to total assets 0.29% 0.35% 0.38% 0.27% 0.28% Allowance for loan losses to total nonperforming loans 302.21% 245.33% 224.73% 320.21% 316.37% Past due loans to total loans(4) 0.38% 0.32% 0.34% 0.36% 0.30% Net charge-offs to average loans(3) 0.09% 0.27% 0.23% 0.16% 0.15% 2025 2024 2nd Q1st Q4th Q3rd Q2nd Q Loan net charge-offs by line of business Commercial$ 97 $2,109 $2,542 $807 $(8) Residential real estate and home equity (27) (25) (25) (64) (76) Indirect auto 749 1,155 675 725 747 Residential solar and other consumer 1,542 3,315 2,517 2,452 3,036 Total loan net charge-offs$ 2,361 $6,554 $5,709 $3,920 $3,699 2025 2024 2nd Q1st Q4th Q3rd Q2nd Q Allowance for loan losses as a percentage of loans by segment Commercial & industrial 0.79% 0.76% 0.73% 0.73% 0.76% Commercial real estate 1.14% 1.02% 0.95% 1.01% 1.00% Residential real estate 1.05% 1.00% 1.00% 1.00% 0.98% Auto 0.70% 0.72% 0.81% 0.83% 0.85% Residential solar and other consumer 3.64% 3.61% 3.64% 3.69% 3.78% Total 1.21% 1.17% 1.16% 1.21% 1.22% 2025 2024 2nd Q1st Q4th Q3rd Q2nd Q Loans by line of business Commercial & industrial$ 1,692,335 $1,436,990 $1,426,482 $1,458,926 $1,397,935 Commercial real estate 4,800,494 3,890,115 3,876,698 3,792,498 3,784,214 Residential real estate 2,530,344 2,127,588 2,142,249 2,143,766 2,134,875 Home equity 423,355 331,400 334,268 328,687 326,556 Indirect auto 1,319,401 1,309,084 1,273,253 1,235,175 1,225,786 Residential solar and other consumer 858,751 885,090 916,960 947,989 984,981 Total loans$ 11,624,680 $9,980,267 $9,969,910 $9,907,041 $9,854,347 NBT Bancorp Inc. and Subsidiaries Consolidated Balance Sheets (unaudited, in thousands) June 30,December 31, 2025 2024 Assets Cash and due from banks$ 264,777$205,083 Short-term interest-bearing accounts 276,786 78,973 Equity securities, at fair value 46,658 42,372 Securities available for sale, at fair value 1,729,428 1,574,664 Securities held to maturity (fair value $735,387 and $749,945, respectively) 809,664 842,921 Federal Reserve and Federal Home Loan Bank stock 40,813 33,957 Loans held for sale 3,756 9,744 Loans 11,624,680 9,969,910 Less allowance for loan losses 140,200 116,000 Net loans$ 11,484,480$9,853,910 Premises and equipment, net 95,793 80,840 Goodwill 454,072 362,663 Intangible assets, net 64,447 36,360 Bank owned life insurance 318,004 272,657 Other assets 426,103 392,522 Total assets$ 16,014,781$13,786,666 Liabilities and stockholders' equity Demand (noninterest bearing)$ 3,866,856$3,446,068 Savings, interest-bearing checking and money market 7,997,219 6,658,188 Time 1,651,157 1,442,505 Total deposits$ 13,515,232$11,546,761 Short-term borrowings 112,970 162,942 Long-term debt 44,842 29,644 Subordinated debt, net 141,943 121,201 Junior subordinated debt 111,621 101,196 Other liabilities 283,007 298,781 Total liabilities$ 14,209,615$12,260,525 Total stockholders' equity$ 1,805,166$1,526,141 Total liabilities and stockholders' equity$ 16,014,781$13,786,666 NBT Bancorp Inc. and Subsidiaries Consolidated Statements of Income (unaudited, in thousands except per share data) Three Months EndedSix Months Ended June 30,June 30, 2025 2024 2025 2024 Interest, fee and dividend income Interest and fees on loans$ 158,912$136,606 $ 296,964$269,752 Securities available for sale 11,609 7,562 21,871 14,686 Securities held to maturity 4,870 5,190 9,784 10,493 Other 2,186 1,408 3,362 2,772 Total interest, fee and dividend income$ 177,577$150,766 $ 331,981$297,703 Interest expense Deposits$ 48,219$46,688 $ 90,807$91,027 Short-term borrowings 1,046 2,899 1,912 6,320 Long-term debt 296 291 562 581 Subordinated debt 2,001 1,806 3,823 3,606 Junior subordinated debt 1,795 1,908 3,434 3,821 Total interest expense$ 53,357$53,592 $ 100,538$105,355 Net interest income$ 124,220$97,174 $ 231,443$192,348 Provision for loan losses$ 4,813$8,899 $ 12,367$14,478 Provision for loan losses - acquisition day 1 non-PCD 13,022 - 13,022 - Total provision for loan losses$ 17,835$8,899 $ 25,389$14,478 Net interest income after provision for loan losses$ 106,385$88,275 $ 206,054$177,870 Noninterest income Service charges on deposit accounts$ 4,578$4,219 $ 8,821$8,336 Card services income 6,077 5,587 11,394 10,782 Retirement plan administration fees 15,710 14,798 31,568 29,085 Wealth management 10,678 10,173 21,624 19,870 Insurance services 4,097 3,848 8,858 8,236 Bank owned life insurance income 2,180 1,834 5,577 4,186 Net securities gains (losses) 112 (92) 8 2,091 Other 3,500 2,865 6,534 6,038 Total noninterest income$ 46,932$43,232 $ 94,384$88,624 Noninterest expense Salaries and employee benefits$ 64,155$55,393 $ 124,849$111,097 Technology and data services 10,804 9,249 21,042 18,999 Occupancy 9,038 7,671 18,065 15,769 Professional fees and outside services 5,021 4,565 9,973 9,418 Amortization of intangible assets 3,042 2,133 5,153 4,301 Reserve for unfunded loan commitments 1,702 (380) 1,792 (830) Acquisition expenses 17,180 - 18,401 - Other 11,668 10,957 23,235 22,607 Total noninterest expense$ 122,610$89,588 $ 222,510$181,361 Income before income tax expense$ 30,707$41,919 $ 77,928$85,133 Income tax expense 8,197 9,203 18,673 18,594 Net income$ 22,510$32,716 $ 59,255$66,539 Earnings Per Share Basic$ 0.45$0.69 $ 1.21$1.41 Diluted$ 0.44$0.69 $ 1.21$1.40 NBT Bancorp Inc. and Subsidiaries Quarterly Consolidated Statements of Income (unaudited, in thousands except per share data) 2025 2024 2nd Q1st Q4th Q3rd Q2nd QInterest, fee and dividend income Interest and fees on loans$ 158,912$138,052 $141,103 $141,991$136,606 Securities available for sale 11,609 10,262 8,773 7,815 7,562 Securities held to maturity 4,870 4,914 4,931 5,042 5,190 Other 2,186 1,176 2,930 1,382 1,408 Total interest, fee and dividend income$ 177,577$154,404 $157,737 $156,230$150,766 Interest expense Deposits$ 48,219$42,588 $46,815 $49,106$46,688 Short-term borrowings 1,046 866 918 1,431 2,899 Long-term debt 296 266 293 292 291 Subordinated debt 2,001 1,822 1,816 1,810 1,806 Junior subordinated debt 1,795 1,639 1,790 1,922 1,908 Total interest expense$ 53,357$47,181 $51,632 $54,561$53,592 Net interest income$ 124,220$107,223 $106,105 $101,669$97,174 Provision for loan losses$4,813 $7,554 $2,209 $2,920 $8,899 Provision for loan losses - acquisition day 1 non-PCD 13,022 - - - - Total provision for loan losses$ 17,835$7,554 $2,209 $2,920$8,899 Net interest income after provision for loan losses$ 106,385$99,669 $103,896 $98,749$88,275 Noninterest income Service charges on deposit accounts$ 4,578$4,243 $4,411 $4,340$4,219 Card services income 6,077 5,317 5,652 5,897 5,587 Retirement plan administration fees 15,710 15,858 12,924 14,578 14,798 Wealth management 10,678 10,946 10,842 10,929 10,173 Insurance services 4,097 4,761 3,883 4,913 3,848 Bank owned life insurance income 2,180 3,397 2,271 1,868 1,834 Net securities gains (losses) 112 (104) 222 476 (92)Other 3,500 3,034 2,221 2,773 2,865 Total noninterest income$ 46,932$47,452 $42,426 $45,774$43,232 Noninterest expense Salaries and employee benefits$ 64,155$60,694 $61,749 $59,641$55,393 Technology and data services 10,804 10,238 10,220 9,920 9,249 Occupancy 9,038 9,027 7,786 7,754 7,671 Professional fees and outside services 5,021 4,952 4,843 4,871 4,565 Amortization of intangible assets 3,042 2,111 2,080 2,062 2,133 Reserve for unfunded loan commitments 1,702 90 (125) 250 (380)Acquisition expenses 17,180 1,221 988 543 - Other 11,668 11,567 13,234 10,704 10,957 Total noninterest expense$ 122,610$99,900 $100,775 $95,745$89,588 Income before income tax expense$ 30,707$47,221 $45,547 $48,778$41,919 Income tax expense 8,197 10,476 9,542 10,681 9,203 Net income$ 22,510$36,745 $36,005 $38,097$32,716 Earnings Per Share Basic$ 0.45$0.78 $0.76 $0.81$0.69 Diluted$ 0.44$0.77 $0.76 $0.80$0.69 NBT Bancorp Inc. and Subsidiaries Average Quarterly Balance Sheets (unaudited, dollars in thousands) Average BalanceYield / RatesAverage BalanceYield / RatesAverage BalanceYield / RatesAverage BalanceYield / RatesAverage BalanceYield / Rates Q2 - 2025Q1 - 2025Q4 - 2024Q3 - 2024Q2 - 2024 Assets Short-term interest-bearing accounts $ 146,6404.61%$63,1984.51%$184,9885.27%$62,2104.87%$48,8615.48% Securities taxable(1) 2,486,3492.40% 2,402,7722.30% 2,317,0342.10% 2,266,9301.99% 2,280,7671.97% Securities tax-exempt(1)(5) 221,3283.65% 220,2103.60% 211,4933.46% 217,2513.47% 226,0323.56% FRB and FHLB stock 39,1765.12% 33,4695.73% 33,2615.75% 35,3956.97% 40,2837.41% Loans(1)(6) 11,064,9205.77% 9,981,4875.62% 9,957,8795.65% 9,865,4125.74% 9,772,0145.63% Total interest-earning assets $ 13,958,4135.12%$12,701,1364.95%$12,704,6554.96%$12,447,1985.01%$12,367,9574.92% Other assets 1,242,690 1,088,069 1,093,419 1,072,277 1,064,487 Total assets $ 15,201,103 $13,789,205 $13,798,074 $13,519,475 $13,432,444 Liabilities and stockholders' equity Money market deposits $ 3,808,0243.00%$3,496,5523.04%$3,504,9373.27%$3,342,8453.68%$3,254,2523.65% Interest-bearing checking deposits 1,902,3920.98% 1,682,2650.84% 1,664,9600.91% 1,600,5470.87% 1,603,6950.78% Savings deposits 1,852,0270.35% 1,571,6730.05% 1,561,7030.05% 1,566,3160.05% 1,586,7530.05% Time deposits 1,600,9083.37% 1,450,8463.55% 1,446,7983.85% 1,442,4244.00% 1,391,0624.00% Total interest-bearing deposits $ 9,163,3512.11%$8,201,3362.11%$8,178,3982.28%$7,952,1322.46%$7,835,7622.40% Federal funds purchased 14,2314.51% 2,2784.45% -- 2,6095.34% 29,9455.56% Repurchase agreements 89,9572.52% 107,4962.87% 116,4083.13% 98,0352.80% 86,4051.55% Short-term borrowings 27,8454.62% 7,0334.61% 1744.57% 48,8755.74% 155,1595.58% Long-term debt 30,7053.87% 27,6743.90% 29,6573.93% 29,6963.91% 29,7343.94% Subordinated debt, net 134,6845.96% 121,3316.09% 120,9675.97% 120,5945.97% 120,2396.04% Junior subordinated debt 107,9486.67% 101,1966.57% 101,1967.04% 101,1967.56% 101,1967.58% Total interest-bearing liabilities $ 9,568,7212.24%$8,568,3442.23%$8,546,8002.40%$8,353,1372.60%$8,358,4402.58% Demand deposits 3,634,517 3,385,080 3,438,194 3,389,894 3,323,906 Other liabilities 285,357 296,983 295,292 292,446 306,747 Stockholders' equity 1,712,508 1,538,798 1,517,788 1,483,998 1,443,351 Total liabilities and stockholders' equity $ 15,201,103 $13,789,205 $13,798,074 $13,519,475 $13,432,444 Interest rate spread 2.88% 2.72% 2.56% 2.41% 2.34% Net interest margin (FTE)(1) 3.59% 3.44% 3.34% 3.27% 3.18% Total cost of deposits $12,797,8681.51%$11,586,4161.49%$11,616,5921.60%$11,342,0261.72%$11,159,6681.68% Total cost of funds 13,203,2381.62% 11,953,4241.60% 11,984,9941.71% 11,743,0311.85% 11,682,3461.85% NBT Bancorp Inc. and Subsidiaries Average Year-to-Date Balance Sheets (unaudited, dollars in thousands) Average Yield/Average Yield/ BalanceInterestRates BalanceInterestRates Six Months Ended June 30, 2025 2024 Assets Short-term interest-bearing accounts $ 105,150$ 2,3894.58%$48,416$1,2014.99% Securities taxable(1) 2,444,791 28,5202.35% 2,279,399 21,9771.94% Securities tax-exempt(1)(5) 220,772 3,9683.62% 228,250 4,0533.57% FRB and FHLB stock 36,338 9735.40% 41,289 1,5717.65% Loans(1)(6) 10,526,197 297,4225.70% 9,723,453 270,2175.59% Total interest-earning assets $ 13,333,248$ 333,2725.04%$12,320,807$299,0194.88% Other assets 1,165,806 1,059,937 Total assets $ 14,499,054 $13,380,744 Liabilities and stockholders' equity Money market deposits $ 3,653,148$ 54,7193.02%$3,191,706$57,2783.61% Interest-bearing checking deposits 1,792,937 8,1350.91% 1,601,992 6,1200.77% Savings deposits 1,712,624 1,8060.21% 1,597,206 3520.04% Time deposits 1,526,292 26,1473.45% 1,371,810 27,2774.00% Total interest-bearing deposits $ 8,685,001$ 90,8072.11%$7,762,714$91,0272.36% Federal funds purchased 8,287 1854.50% 24,857 6865.55% Repurchase agreements 98,678 1,3272.71% 84,412 6491.55% Short-term borrowings 17,498 4004.61% 184,275 4,9855.44% Long-term debt 29,198 5623.88% 29,753 5813.93% Subordinated debt, net 128,044 3,8236.02% 120,056 3,6066.04% Junior subordinated debt 104,590 3,4346.62% 101,196 3,8217.59% Total interest-bearing liabilities $ 9,071,296$ 100,5382.23%$8,307,263$105,3552.55% Demand deposits 3,510,487 3,340,257 Other liabilities 291,139 296,747 Stockholders' equity 1,626,132 1,436,477 Total liabilities and stockholders' equity$ 14,499,054 $13,380,744 Net interest income (FTE)(1) $ 232,734 $193,664 Interest rate spread 2.81% 2.33% Net interest margin (FTE)(1) 3.52% 3.16% Taxable equivalent adjustment $ 1,291 $1,316 Net interest income $ 231,443 $192,348 Total cost of deposits $12,195,488$90,8071.50%$11,102,971$91,0271.65% Total cost of funds 12,581,783 100,5381.61% 11,647,520 105,3551.82% (1)The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release: Non-GAAP measures (unaudited, dollars in thousands except per share data) 2025 2024 2nd Q1st Q4th Q3rd Q2nd Q Operating net income Net income$ 22,510 $36,745 $36,005 $38,097 $32,716 Acquisition expenses 17,180 1,221 988 543 - Acquisition-related provision for credit losses 13,022 - - - - Acquisition-related reserve for unfunded loan commitments 532 - - - - Securities (gains) losses (112) 104 (222) (476) 92 Adjustments to net income$ 30,622 $1,325 $766 $67 $92 Adjustments to net income (net of tax)$ 22,413 $1,020 $604 $52 $72 Operating net income$ 44,923 $37,765 $36,609 $38,149 $32,788 Operating diluted earnings per share$ 0.88 $0.80 $0.77 $0.80 $0.69 6 Months Ended June 30, 2025 2024 Operating net income Net income$ 59,255 $66,539 Acquisition expenses 18,401 - Acquisition-related provision for credit losses 13,022 - Acquisition-related reserve for unfunded loan commitments 532 - Securities (gains) losses (8) (2,091) Adjustments to net income$ 31,947 $(2,091) Adjustments to net income (net of tax)$ 24,120 $(1,631) Operating net income$ 83,375 $64,908 Operating diluted earnings per share$ 1.70 $1.37 2025 2024 2nd Q1st Q4th Q3rd Q2nd Q FTE adjustment Net interest income$ 124,220 $107,223 $106,105 $101,669 $97,174 Add: FTE adjustment 655 636 619 639 658 Net interest income (FTE)$ 124,875 $107,859 $106,724 $102,308 $97,832 Average earning assets$ 13,958,413 $12,701,136 $12,704,655 $12,447,198 $12,367,957 Net interest margin (FTE)(3) 3.59% 3.44% 3.34% 3.27% 3.18% 6 Months Ended June 30, 2025 2024 FTE adjustment Net interest income$ 231,443 $192,348 Add: FTE adjustment 1,291 1,316 Net interest income (FTE)$ 232,734 $193,664 Average earning assets$ 13,333,248 $12,320,807 Net interest margin (FTE)(3) 3.52% 3.16% Interest income for tax-exempt securities and loans have been adjusted to an FTE basis using the statutory Federal income tax rate of 21%. (1)The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release: Non-GAAP measures (continued) (unaudited, dollars in thousands) 2025 2024 2nd Q1st Q4th Q3rd Q2nd Q Tangible equity to tangible assets Total equity$ 1,805,166 $1,565,775 $1,526,141 $1,521,980 $1,461,955 Intangible assets 518,519 396,912 399,023 397,853 398,686 Total assets$ 16,014,781 $13,864,251 $13,786,666 $13,839,552 $13,501,909 Tangible equity to tangible assets 8.30% 8.68% 8.42% 8.36% 8.11% 2025 2024 2nd Q1st Q4th Q3rd Q2nd Q Return on average tangible common equity Net income$ 22,510 $36,745 $36,005 $38,097 $32,716 Amortization of intangible assets (net of tax) 2,282 1,583 1,560 1,547 1,600 Net income, excluding intangibles amortization$ 24,792 $38,328 $37,565 $39,644 $34,316 Average stockholders' equity$ 1,712,508 $1,538,798 $1,517,788 $1,483,998 $1,443,351 Less: average goodwill and other intangibles 471,159 398,233 399,139 399,113 399,968 Average tangible common equity$ 1,241,349 $1,140,565 $1,118,649 $1,084,885 $1,043,383 Return on average tangible common equity(3) 8.01% 13.63% 13.36% 14.54% 13.23% 6 Months Ended June 30, 2025 2024 Return on average tangible common equity Net income$ 59,255 $66,539 Amortization of intangible assets (net of tax) 3,865 3,226 Net income, excluding intangibles amortization$ 63,120 $69,765 Average stockholders' equity$ 1,626,132 $1,436,477 Less: average goodwill and other intangibles 434,897 400,862 Average tangible common equity$ 1,191,235 $1,035,615 Return on average tangible common equity(3) 10.69% 13.55% (2)Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding. (3)Annualized. (4)Total past due loans, defined as loans 30 days or more past due and in an accrual status. (5)Securities are shown at average amortized cost. (6)For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding. This press release was published by a CLEAR® Verified individual.

NBT Bancorp Inc. Announces Second Quarter 2025 Net Income and Approves an 8.8% Cash Dividend Increase

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