Key Highlights

  • Diluted EPS was $1.11 versus $1.03 a year earlier and $1.02 in the second quarter.
  • Net income was $58.0 million, up from $54.5 million a year ago.
  • Net interest margin on a fully taxable-equivalent basis was 3.78%, up 12 basis points year over year.
  • Return on tangible common equity was 16.54%, with return on assets of 1.41%.
  • The fourth-quarter dividend was raised to $0.40 per share, up 8.1%.

NBT Bancorp Earnings: What Drove the Rise to $1.11 per Share?

NBT Bancorp (NASDAQ:NBTB) reported third-quarter 2026 results on Tuesday, October 27, with diluted EPS of $1.11, up from $1.03 a year earlier and $1.02 in the second quarter. Operating EPS, a non-GAAP measure, was also $1.11 versus $1.05 a year ago. The screen estimate was $1.09.

Net income was $58.0 million, up from $54.5 million and $53.0 million. Nine-month diluted EPS reached $3.10 versus $2.26 a year earlier. The release gave no explicit financial outlook.

NBT Bancorp is the holding company for NBT Bank, a community bank with $16.39 billion in assets, $11.95 billion in loans and $13.59 billion in deposits.

NBT Bancorp Margin: Why Did Net Interest Income Grow 5.5%?

Net interest income was $142.1 million, up 3.7% from the second quarter and 5.5% from a year ago. Net interest margin on a fully taxable-equivalent basis was 3.78%, up 5 basis points sequentially and 12 basis points year over year. Earning asset yield was 5.11%, against a cost of funds of 1.42% and a cost of deposits of 1.32%.

Management attributed the growth to organic average loan growth, one extra day in the quarter and a $1.5 million increase in purchase accounting accretion. Loans are up 3.0% since December 31, 2025, and the loan-to-deposit ratio is 87.9%.

Noninterest income was $52.9 million, up 6.7% from the second quarter and 2.9% from a year ago. Service charge growth reflected deposit pricing initiatives and higher transaction-related fees.

NBT Bancorp Expenses and Credit: Is Cost Growth Outrunning Revenue?

Noninterest expense rose to $115.2 million from $111.4 million in the second quarter and $111.1 million a year ago, which management tied to investments in people, markets and infrastructure. Using the release figures, the efficiency ratio calculates to about 59.1%.

Provision for loan losses fell to $3.8 million from $6.1 million, as slower loan growth, a lower allowance and improved economic forecasts reduced the need. Net charge-offs were $4.3 million, or 0.14% annualized. Nonperforming assets were $70.3 million, or 0.43% of assets, up from 0.40% in the second quarter, and the allowance was $140.0 million, or 1.17% of loans.

NBT Bancorp Capital Returns: What Should Investors Watch Next?

The common equity tier 1 ratio was 12.43%, the leverage ratio 9.99% and the total risk-based ratio 14.36%. Tangible book value per share was $27.75, up 4.6% from year-end and 8.8% from a year ago.

The board set the fourth-quarter dividend at $0.40 per share, up $0.03 from a year earlier, payable on December 15 to holders of record on December 1. That marks a fourteenth consecutive year of annual dividend increases. The company bought 20,118 shares in the quarter for $1.0 million at an average $50.02, and 113,364 shares since quarter end, leaving 1,297,923 shares authorized as of October 24. Watch loan growth, margin direction and the nonperforming asset trend. No share reaction is cited here.