NBT Bancorp Inc. Announces Record Third Quarter 2026 Results and Declares Cash Dividend

NBT Bancorp posts record Q3 earnings, raises dividend, and grows loans and deposits.

What the company is saying

NBT Bancorp highlights record third quarter net income of $58.0 million and diluted EPS of $1.11, emphasizing both year-over-year and sequential growth. President and CEO Scott Kingsley attributes these results to a diversified business model and disciplined execution, citing solid loan growth, higher net interest income, and expanded net interest margin. The company points to a 4.5% revenue increase against a 3.3% rise in expenses, with net interest income up 3.7% from the prior quarter and 5.5% from the prior year. Management details improvements in loan and deposit balances, a tangible book value per share up 4.6% since year-end, and strong capital ratios. The board approved a fourth-quarter dividend of $0.40 per share, up 8.1% from the prior year, marking the fourteenth consecutive annual increase. NBT also notes ongoing share repurchases and continued investment in technology and infrastructure.

What the data suggests

The financial results show clear operational and profitability gains. Net income rose to $58.0 million from $54.5 million a year ago and $53.0 million last quarter, with diluted EPS increasing to $1.11 from $1.03 and $1.02, respectively. Net interest income reached $142.1 million, up $5.1 million sequentially and $7.4 million year-over-year, driven by organic loan growth and higher purchase accounting accretion. Loans grew to $11.95 billion, up $350.4 million (3.0%) since year-end, and deposits increased to $13.59 billion. The net interest margin improved to 3.78%, and tangible book value per share climbed to $27.75. Asset quality remains stable, with net charge-offs at 0.14% and allowance for loan losses at 1.17% of loans. Noninterest income rose 6.7% sequentially to $52.9 million, while noninterest expense grew 3.4% to $115.2 million. Capital ratios remain robust, with CET1 at 12.43% and leverage at 9.99%. The dividend increase and share repurchases signal confidence in ongoing capital generation.

Analysis

The announcement is a quarterly financial results release with a positive tone, but the claims are fully supported by realised, audited financial data. All key metrics—net income, EPS, revenue, expenses, capital ratios, loan and deposit growth, and dividend increases—are disclosed with precise period-over-period comparisons. There is no reliance on forward-looking projections or aspirational statements; the only minor forward-looking language relates to ongoing share repurchase capacity and general statements about serving customers, which are not presented as key claims. Capital outlays (such as stock repurchases) are modest and already executed, with no indication of large, uncertain, or long-dated investments. The benefits (earnings, dividend increase, book value growth) are immediate and quantifiable. The language is proportionate to the results, and there is no evidence of narrative inflation or overstatement.

Risk flags

• ●Rising nonperforming assets, now at 0.43% of total assets (up from 0.33% at year-end), indicate some deterioration in credit quality, driven by more commercial loans in nonaccrual status and an increase in residential past due loans. This trend could pressure future provisioning and earnings if it persists.
• ●Expense growth, particularly in salaries, technology, and occupancy, is running ahead of inflation and could compress margins if revenue growth slows. Investments in infrastructure and technology are necessary but must be matched by sustained top-line gains.
• ●Loan growth is robust, but the loan-to-deposit ratio has increased to 87.9% from 85.9% at year-end, suggesting tighter funding flexibility. If deposit growth lags loan growth, funding costs could rise or liquidity could tighten in less favorable market conditions.
• ●The allowance for loan losses has declined slightly as a percentage of loans (1.17% vs. 1.19% at year-end), reflecting improved economic forecasts and portfolio mix, but may prove insufficient if credit trends worsen unexpectedly.

Bottom line

NBT Bancorp delivered strong, realised third quarter results, with net income, EPS, and tangible book value per share all reaching new highs. The company is executing on both loan and deposit growth, maintaining solid asset quality, and supporting shareholder returns through a higher dividend and active share repurchases. Capital ratios remain well above regulatory minimums, and management's explanations for margin and income gains are supported by the disclosed figures. The main watchpoints are rising nonperforming assets and expense growth, which could pressure future profitability if not managed. The dividend increase and continued buybacks reflect confidence in ongoing earnings power. Investors should monitor credit quality trends and the sustainability of revenue growth relative to expenses, but the overall trajectory is positive and the disclosures are comprehensive.

Announcement summary

(NASDAQ:NBTB) NBT Bancorp Inc. reported net income of $58.0 million and diluted earnings per share of $1.11 for the third quarter of 2026. This compares to net income of $54.5 million, or $1.03 per diluted share, for the third quarter of 2025, and $53.0 million, or $1.02 per diluted share, for the second quarter of 2026. Operating diluted earnings per share was $1.11 for the third quarter of 2026, compared to $1.05 for the third quarter of 2025 and $1.01 for the second quarter of 2026. Revenues grew 4.5% while expenses increased 3.3% from the previous quarter. Net interest income on a fully taxable equivalent basis was $142.7 million, and net interest margin was 3.78%, up 5 basis points from the prior quarter. Earning asset yields were 5.11%, up 6 basis points from the prior quarter, and total cost of funds was 1.42%, up 1 basis point from the prior quarter. Noninterest income was $52.9 million, or 27% of total revenues, excluding net securities gains. Period end loans were $11.95 billion, and period end deposits were $13.59 billion. Net charge-offs to average loans was 0.14% annualized, nonperforming loans to total loans was 0.59%, and allowance for loan losses to total loans was 1.17%. Provision for loan losses was $3.8 million. Stockholders’ equity was $1.94 billion as of September 30, 2026. Tangible book value per share was $27.75 at September 30, 2026, an increase of 4.6% from December 31, 2025. Tangible equity to assets was 9.07%. The CET1 ratio was 12.43% and the leverage ratio was 9.99%. Period end total loans increased $350.4 million, or 3.0%, from December 31, 2025, and excluding certain portfolios in run-off, loans increased $427.2 million, or 3.9%. Total deposits at September 30, 2026 were $13.59 billion compared to $13.50 billion at December 31, 2025. The loan to deposit ratio was 87.9% at September 30, 2026, compared to 85.9% at December 31, 2025. Net interest income for the third quarter of 2026 was $142.1 million, an increase of $5.1 million, or 3.7%, from the second quarter of 2026 and an increase of $7.4 million, or 5.5%, from the third quarter of 2025. The increase in net interest income from the second quarter of 2026 was driven by organic growth in average loans, one additional day in the quarter, and a $1.5 million increase in purchase accounting accretion. Average earning assets increased $173.6 million, or 1.2%, from the second quarter of 2026 and grew $334.7 million, or 2.3%, from the third quarter of 2025. Total cost of deposits was 1.32% for the third quarter of 2026, a decrease of 1 basis point from the prior quarter and a decrease of 20 basis points from the same period in the prior year. Total cost of funds for the three months ended September 30, 2026 was 1.42%, an increase of 1 basis point from the prior quarter and a decrease of 18 basis points from the third quarter of 2025. Nonperforming assets to total assets was 0.43% at September 30, 2026, up from 0.40% at June 30, 2026 and 0.33% at December 31, 2025. Past due loans to total loans decreased 28 basis points from June 30, 2026. Provision expense for the three months ended September 30, 2026 was $3.8 million, compared to $6.1 million for the second quarter of 2026. The allowance for loan losses was $140.0 million, or 1.17% of total loans, at September 30, 2026, compared to $140.5 million, or 1.18%, at June 30, 2026 and $138.0 million, or 1.19%, at December 31, 2025. The reserve for unfunded loan commitments was $6.0 million at September 30, 2026, compared to $5.5 million at June 30, 2026 and $5.8 million at December 31, 2025. Total noninterest income, excluding securities gains, was $52.9 million for the three months ended September 30, 2026, up $3.3 million, or 6.7%, from the second quarter of 2026, and up $1.5 million, or 2.9%, from the third quarter of 2025. Service charges on deposit accounts increased $0.7 million, or 13.4%, from the prior quarter and increased $0.8 million, or 15.5%, from the third quarter of 2025. Retirement plan administration fees increased $0.4 million, or 2.2%, from the prior quarter and increased $1.4 million, or 8.7%, from the third quarter of 2025. Insurance revenues increased $1.2 million from the prior quarter. Bank owned life insurance income was consistent with the prior quarter and decreased from the third quarter of 2025 due to a $0.9 million gain recognized in the third quarter of 2025. Other income increased $0.7 million from the prior quarter and decreased $0.5 million from the third quarter of 2025. Total noninterest expense was $115.2 million for the third quarter of 2026, compared to $111.4 million for the second quarter of 2026 and $111.1 million for the third quarter of 2025. Salaries and benefits increased $0.6 million from the prior quarter. Technology and data services increased $0.9 million from the third quarter of 2025. Occupancy costs increased $0.5 million from the third quarter of 2025. Reserve for unfunded loan commitments was $0.5 million for the three months ended September 30, 2026. Other expenses increased $2.3 million from the prior quarter and increased $0.5 million from the third quarter of 2025. The effective tax rate for the third quarter of 2026 was 23.7%, up from 23.3% in the prior quarter and down from 24.2% for the third quarter of 2025. Tangible book value per share was $27.75 at September 30, 2026, which increased 4.6% from $26.54 at December 31, 2025 and increased 8.8% from $25.51 at September 30, 2025. Stockholders’ equity increased $46.3 million from December 31, 2025 driven by net income generation of $162.2 million, partially offset by dividends declared of $59.2 million, the repurchase of common stock of $15.0 million and a $44.6 million increase in accumulated other comprehensive loss. As of September 30, 2026, the CET1 capital ratio was 12.43%, the leverage ratio was 9.99% and the total risk-based capital ratio was 14.36%. The Board of Directors approved a fourth-quarter cash dividend of $0.40 per share, representing a $0.03 per share, or 8.1%, increase over the dividend paid in the third quarter of 2025. The dividend will be paid on December 15, 2026 to stockholders of record as of December 1, 2026. The Company purchased 20,118 shares of its common stock during the third quarter of 2026 for a total of $1.0 million at an average price of $50.02 per share under its stock repurchase program. Since quarter end, the Company has purchased 113,364 shares of common stock under the plan. As of October 24, 2026, there were 1,297,923 shares available for repurchase under this plan. The Company will host a conference call at 10:00 a.m. (Eastern) Wednesday, October 28, 2026, to review the third quarter 2026 financial results.

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