Vermont Business Magazine NBT Bancorp Inc (NASDAQ: NBTB) reported net income and diluted earnings per share for the three months ended March 31, 2026.
Net income for the first quarter of 2026 was $51.1 million, or $0.98 per diluted common share, compared to $36.7 million, or $0.77 per diluted common share, for the first quarter of 2025, and $55.5 million, or $1.06 per diluted common share, for the fourth quarter of 2025. Operating diluted earnings per share(1), a non-GAAP measure, was $0.97 for the first quarter of 2026, compared to $0.80 for the first quarter of 2025 and $1.05 for the fourth quarter of 2025.
The company completed the acquisition of Evans Bancorp, Inc. 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 first quarter of 2025 is significantly impacted by the Evans acquisition.
CEO Comments
“We delivered solid first quarter results that reflect disciplined execution across our franchise and provided meaningful improvement in profitability compared to the first quarter of 2025,” said NBT President and CEO Scott Kingsley. “Earnings growth was driven by continued net interest margin expansion, higher net interest income and strong performance in our fee-based businesses. First quarter results were consistent with our seasonal expectations. Net interest margin expanded during the quarter while deposit growth across all major customer segments reflected the strength of our franchise. Retirement plan administration fees also increased, driven by productive organic growth activities, highlighting the benefits of our diversified business mix. We remain focused on disciplined balance sheet management and continued investment in our people, markets and platform to drive long-term shareholder value.”
First Quarter 2026 Financial Highlights
Net Income
- Net income was $51.1 million and diluted earnings per share was $0.98
- Operating net income was $50.8 million and operating diluted earnings per share was $0.97(1)
Net Interest Income / NIM
- Net interest income on a fully taxable equivalent (“FTE”) basis was $134.9 million(1)
- Net interest margin (“NIM”) on an FTE basis was 3.72%(1), an increase of 7 basis points (“bps”) from the prior quarter
- Earning asset yields of 5.06% were down 2 bps from the prior quarter
- Total cost of funds of 1.42% was down 9 bps from the prior quarter
Noninterest Income
- Noninterest income was $49.7 million, or 27% of total revenues, excluding net securities gains (losses)
Loans and Credit Quality
- Period end loans were $11.55 billion
- Net charge-offs to average loans was 0.17% annualized
- Nonperforming loans to total loans was 0.53%
- Allowance for loan losses to total loans was 1.20%
- Provision for loan losses was $5.6 million
Deposits
- Period end deposits were $13.74 billion
- Total cost of deposits was 1.34% for the first quarter of 2026, down 10 bps from the fourth quarter of 2025
Capital
- Stockholders’ equity was $1.91 billion as of March 31, 2026
- Tangible book value per share(2) was $27.05 at March 31, 2026 an increase of 51 bps from December 31, 2025
- Tangible equity to assets of 8.96%(1)
- CET1 ratio of 12.34%; Leverage ratio of 9.70%
Loans
- Period end total loans were $11.55 billion at March 31, 2026, compared to $9.98 billion at March 31, 2025.
- Period end total loans decreased $50.9 million from December 31, 2025 which included a $25.9 million decrease in the other consumer and residential solar portfolios, which are in a planned run-off status. During the first quarter of 2026, we continued to experience elevated levels of commercial payoffs similar to the prior two quarters.
Deposits
- Total deposits at March 31, 2026 were $13.74 billion, compared to $13.50 billion at December 31, 2025 and $11.71 billion at March 31, 2025, with all business lines experiencing growth during the quarter.
- The loan to deposit ratio was 84.0% at March 31, 2026, compared to 85.9% at December 31, 2025 and 85.2% at March 31, 2025.
Net Interest Income and Net Interest Margin
- Net interest income for the first quarter of 2026 was $134.3 million, a decrease of $1.1 million, or 0.8%, from the fourth quarter of 2025 and an increase of $27.1 million, or 25.3%, from the first quarter of 2025. The decrease in net interest income from the fourth quarter of 2025 was driven by two fewer days in the first quarter of 2026 and lower earning asset yields partially offset by a decrease in funding costs. The increase in net interest income from the first quarter of 2025 resulted primarily from the improvement in net interest margin, the Evans acquisition and organic growth in interest-earning assets.
- The NIM on an FTE basis for the first quarter of 2026 was 3.72%, an increase of 7 bps from the fourth quarter of 2025, as a 9 bp decrease in the cost of funds more than offset a 2 bp decline in earning asset yields. The NIM on an FTE basis increased 28 bps from the first quarter of 2025 due to higher yields on earning assets, including the impact of the Evans acquisition and a decrease in the cost of funds.
- Earning asset yields for the three months ended March 31, 2026 decreased 2 bps from the prior quarter to 5.06%. Loan yields for the three months ended March 31, 2026 decreased 4 bps from the prior quarter to 5.66% due to the fourth quarter Federal Reserve interest rate cuts partially offset by loans originating at higher rates than portfolio yields. Earning asset yields increased 11 bps from the same quarter in the prior year due to new earning asset yields that were priced higher than portfolio yields, including an increase in acquisition-related net accretion. Average earning assets decreased $73.6 million, or 0.5%, from the fourth quarter of 2025 and grew $1.99 billion, or 15.7%, from the first 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 1.34% for the first quarter of 2026, a decrease of 10 bps from the prior quarter, primarily due to the decrease in the cost of time and money market deposits. Total cost of deposits decreased 15 bps from the same period in the prior year.
- Total cost of funds for the three months ended March 31, 2026 was 1.42%, a decrease of 9 bps from the prior quarter and a decrease of 18 bps from the first quarter of 2025.
Asset Quality and Allowance for Loan Losses
- Net charge-offs to total average loans for the first quarter of 2026 was 17 bps, compared to 16 bps in the prior quarter primarily due to an increase in commercial net charge-offs.
- Nonperforming assets to total assets was 0.38% at March 31, 2026, up from 0.33% at December 31, 2025 and up from 0.35% at March 31, 2025. The increase in nonperforming assets was primarily due to additional commercial lending relationships placed in nonaccrual status during the quarter.
- Provision expense for the three months ended March 31, 2026 was $5.6 million, compared to $3.8 million for the fourth quarter of 2025. The increase in the provision for loan losses during the quarter was primarily due to higher net charge-offs and a higher level of allowance for loan losses.
- The allowance for loan losses was $138.6 million, or 1.20% of total loans, at March 31, 2026, 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 first quarter of 2026 was primarily driven by an increase in specific reserves for a commercial relationship placed in nonaccrual status during the quarter, partially offset by the run-off of residential solar and other consumer portfolios and model adjustments related to improved loss experience.
- The reserve for unfunded loan commitments was $5.5 million at March 31, 2026, compared to $5.8 million at December 31, 2025 and compared to $4.5 million at March 31, 2025.
Noninterest Income
- Total noninterest income, excluding securities gains (losses), was $49.7 million for the three months ended March 31, 2026, consistent with the fourth quarter of 2025, and up $2.1 million, or 4.5%, from the first quarter of 2025.
- Service charges on deposit accounts were comparable to the prior quarter and higher than the first quarter of 2025 due primarily to the Evans acquisition and new account growth.
- Retirement plan administration fees increased $2.5 million, or 17.5%, from the prior quarter and increased $0.7 million, or 4.5%, from the first quarter of 2025. The increase from the prior quarter and the first quarter of 2025 was driven by higher activity-based fees, increased market values of assets under administration and the additional revenue from new customer relationships.
- Wealth management fees decreased $0.9 million, or 7.4%, from the prior quarter and were consistent with the first quarter of 2025. The decrease from the prior quarter was driven primarily by higher seasonal and activity-based fees recognized in the fourth quarter of 2025.
- Insurance revenues increased $0.6 million from the prior quarter, due to organic growth and first quarter seasonality.
- Bank owned life insurance income decreased compared to the fourth quarter of 2025 and the first quarter of 2025 primarily due to lower gains recognized.
- Other noninterest income decreased $1.0 million from the prior quarter and increased $0.5 million from the first quarter of 2025. The decrease from the prior quarter was driven by a $1.0 million gain on an equity investment recognized in the fourth quarter of 2025.
Noninterest Expense
- Total noninterest expense was $112.2 million for the first quarter of 2026, compared to $111.7 million for the fourth quarter of 2025 and $99.9 million for the first quarter of 2025. Excluding acquisition expenses of $1.2 million in the first quarter of 2025, noninterest expense was 13.7% higher than the first quarter of 2025 primarily due to the Evans acquisition and continued investments in our people, markets and infrastructure.
- Salaries and benefits increased 4.2% from the prior quarter driven by seasonally higher payroll taxes and stock-based compensation expenses of approximately $3 million, partially offset by lower medical expenses. The increase from the first 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, higher medical expenses and higher stock-based compensation expenses.
- Technology and data services were consistent with the prior quarter and increased $1.3 million from the first quarter of 2025 primarily due to the Evans acquisition, timing of planned activities and ongoing investment in enterprise technology initiatives.
- Occupancy costs increased $1.7 million from the prior quarter and increased $2.0 million from the first quarter of 2025. The $1.7 million increase from the prior quarter was due to seasonal maintenance and utilities costs due to harsh winter conditions across the footprint. The $2.0 million increase from the first quarter of 2025 was driven by additional expenses from the Evans acquisition, higher seasonal maintenance and utilities 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 first quarter of 2025 primarily due to the Evans acquisition and the timing of various initiatives.
- Amortization of intangible assets was consistent with the prior quarter and increased $1.2 million from the first quarter of 2025 primarily due to the amortization of intangible assets related to the Evans acquisition.
- Other expenses decreased $3.2 million from the prior quarter and increased $0.8 million from the first quarter of 2025. The decrease from the prior quarter was driven by seasonally lower levels of travel, training and charitable contributions and loan-servicing related expenses. The increase from the first quarter of 2025 reflects the Evans acquisition including increased FDIC insurance expense.
Income Taxes
- The effective tax rate for the first quarter of 2026 was 23.3%, which was up from 20.3% in the prior quarter and 22.2% for the first quarter of 2025. The increase in the effective tax rate from the prior quarter was primarily due to the finalization of the assessment of the deductibility of merger-related expenses and the associated impact on the full year effective tax rate in the fourth quarter of 2025. The increase in the effective tax rate from the first quarter of 2025 was primarily due to the increase in fully taxable pre-tax income.
Capital
- Tangible common equity to tangible assets(1) was 8.96% at March 31, 2026. Tangible book value per share(2) was $27.05 at March 31, 2026, which increased 51 bps from $26.54 at December 31, 2025 and increased 231 bps from $24.74 at March 31, 2025.
- Stockholders’ equity increased $18.2 million from December 31, 2025 driven by net income generation of $51.1 million partially offset by dividends declared of $19.2 million, the repurchase of common stock of $11.0 million and a $4.7 million increase in accumulated other comprehensive loss reflecting the change in the fair value of securities available for sale.
- As of March 31, 2026, CET1 capital ratio of 12.34%, leverage ratio of 9.70% and total risk-based capital ratio of 14.52%.
Stock Repurchase
- Consistent with the prior quarter, the Company purchased 250,000 shares of its common stock during the first quarter of 2026 for a total of $11.0 million at an average price of $44.06 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 March 31, 2026, there were 1,500,000 shares available for repurchase under this plan.
Conference Call and Webcast
The Company hosted a conference call at 10:00 a.m. (Eastern) Friday, April 24, 2026, to review the first 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 $16.20 billion at March 31, 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 176 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.
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.
NORWICH, NY (April 23, 2026) – NBT Bancorp Inc
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