NBT Bancorp Inc.

NBT reported second-quarter 2026 net income of $53 million, or $1.2 per diluted common share. Operating earnings improved 15% year over year, helped by record revenues, and revenue growth of 9% outpaced expense growth of 6%. Net interest income was a record $137 million, up $3 million sequentially and more than 10% above the second quarter of 2025, while net interest margin was 3.73%, up 1 basis point from the first quarter and 14 basis points year over year. Total loans ended at $11.9 billion, up $276 million or 2.4% from 12/31/2025, and deposits were $13.5 billion. Fee income excluding securities gains was $49.6 million, up 5.8% year over year; reserves were 1.18% of total loans and provision expense was $6.1 million. Management said it expects modest margin improvement over the next couple of quarters, full-year operating expense growth of roughly 2.5% to 3%, and continued strength in loan growth, while noting indirect auto origination should not be as strong in the second half as in Q2.

Scott Kingsley said the quarter showed the strength of NBT’s diversified franchise, with loan growth across every business line, better earnings, and continued benefit from the Evans acquisition. He emphasized momentum in Buffalo, Rochester, and the broader 7-state footprint, including opportunities tied to the Micron semiconductor buildout in Central New York and new locations in Rochester and Southern Maine. His tone was constructive and confident, but measured on loan growth, saying Q2 activity may not be fully repeatable and that indirect auto should likely moderate in the second half.

Annette Burns highlighted improved operating performance and balance sheet trends: net income of $53 million, EPS of $1.2, net interest income of $137 million, and margin at 3.73%. She said fee income excluding securities gains was $49.6 million, total operating expenses declined 0.7% sequentially, and salaries and benefits were $69 million. Burns also noted deposits of $13.5 billion, deposit costs of 1.33%, total cost of funds of 1.41%, and reserves at 1.18% of loans; she said provision expense of $6.1 million mainly reflected loan growth. On outlook, she pointed to modest NIM improvement over the next couple of quarters, expense growth still in the 2.5% to 3% range for the year, and a securities portfolio with about $350 million to $400 million of expected 12-month cash flows.

Analysts pressed on whether Q2 loan growth could accelerate further, and management said the first half is more indicative of the pace they can sustain, while acknowledging indirect auto should be less strong in the second half. Questions also focused on deposit costs and pipeline conversion; management said new C&I relationships should eventually bring deposits through treasury management, but the cycle is measured in quarters, not weeks. On expenses and wealth management fees, management said the back half should see some higher payroll days and investment spending but still fit the 2.5% to 3% expense-growth target, while wealth fees were softer due to timing and open positions. M&A questions drew a clear answer that NBT remains active, prefers targets in the $1 billion to $3 billion range, and is focused on geography, succession, and technology-driven opportunities, but will avoid deals with difficult concentration or divestiture issues.