NBT Bancorp (NBTB) investor relations material

Executive summary

• Achieved strong operating performance in Q2 2026, with net income of $53 million ($1.02 per diluted share), up 135% year-over-year, and significant earnings and 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%.

• Continued benefits from the Evans Bancorp acquisition, especially in the Buffalo and Rochester regions, driving highest loan origination volumes.

• Increased quarterly cash dividend for the 14th consecutive year to $0.40 per share, up 8.1% year-over-year.

Financial highlights

• Q2 2026 net income was $53 million, or $1.02 per diluted share, a 15% increase in operating earnings year-over-year.

• Record net interest income of $137.6 million, up 10.3% year-over-year and 1.9% sequentially.

• Total loans reached $11.87 billion, up $276 million (2.4%) from year-end 2025; commercial loans grew by $178 million and consumer loans by $98 million in the first half.

• Total deposits at $13.54 billion, with a favorable shift from higher-cost time deposits to lower-cost checking and savings; loan-to-deposit ratio at 87.7%.

• Noninterest income was $49.6 million, 27% of total revenues, up 5.8% year-over-year, led by retirement plan administration and card services revenue.

Outlook and guidance

• Expectation for stable to modestly improving net interest margin over the next few quarters, with continued focus on commercial and residential mortgage originations.

• Operating expenses projected to increase 2.5%-3% for the year, with some 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.

• Anticipate further deposit growth as new commercial relationships mature, with checking accounts as a primary focus.

• Management highlights balance sheet optionality and capital strength, with a focus on maintaining diversified portfolios.