NBT Bancorp (NBTB) investor relations material

Executive summary

• Net income for Q2 2026 was $53.0 million, or $1.02 per diluted share, up significantly year-over-year, with strong operating performance and broad-based loan growth across all business lines.

• Net interest margin expanded to 3.73%, up 14 basis points year-over-year, and tangible book value per share rose 12.8% to $27.71.

• Revenues increased 9.0% year-over-year, with positive operating leverage as expenses grew 5.7%.

• The Evans Bancorp acquisition in May 2025 contributed to growth in assets, loans, and noninterest income, especially in the Buffalo and Rochester regions.

• Quarterly cash dividend increased by 8.1% to $0.40 per share, marking the fourteenth consecutive annual increase.

Financial highlights

• Total revenue reached $187 million for the quarter, with record net interest income of $137 million, up 10.3% year-over-year.

• Total loans at period end were $11.87 billion, up $276 million (2.4%) from year-end 2025; deposits were $13.54 billion, with a loan-to-deposit ratio of 87.7%.

• Noninterest income (excluding securities gains) was $49.6 million, up 5.8% year-over-year, representing 27% of total revenues, led by retirement plan administration and card services.

• Tangible book value per share was $27.71, up 12.8% year-over-year and 4.4% from year-end 2025.

• Allowance for loan losses was $140.5 million (1.18% of loans), covering more than 2x nonperforming loans.

Outlook and guidance

• Management expects stable to modestly improving net interest margin, continued focus on commercial and residential mortgage originations, and further deposit growth as new relationships mature.

• Operating expenses projected to increase 2.5%-3% for the year, with upward pressure from payroll and technology investments.

• Efficiency ratio expected to remain at or below 60% in the second half, supported by revenue growth and disciplined cost management.

• Net interest income trajectory depends on short- to mid-term interest rates, with modest sensitivity to rate changes.

• Dividend payout increased to $0.40 per share for Q3 2026.