NBT Bancorp Exceeds Forecasts with Robust Fourth-Quarter Earnings

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NBT Bancorp Inc. has closed its 2025 fiscal year on a high note, delivering fourth-quarter profits that substantially outpaced market projections. The financial institution's performance was bolstered by significant growth across nearly all core segments, a result largely attributed to the successful consolidation of Evans Bancorp. This strategic acquisition has enhanced the company's regional footprint and broadened its revenue streams.

The company's latest financial release highlights a powerful earnings leap. Net income for the final quarter reached $55.5 million, marking a year-over-year increase of 54.2%. On a per-share basis, earnings came in at $1.06, comfortably above the analyst consensus range of $0.98 to $0.99. Consolidated revenue also saw a substantial advance, climbing to $185.1 million.

In a move rewarding shareholders, the board of directors declared an increased quarterly cash dividend of $0.37 per share, an 8.8% rise. This adjustment marks the 13th consecutive year of dividend growth for NBT. The dividend will be payable on March 16, 2026, to shareholders of record as of March 2, 2026.

Operational Strength and Merger Benefits

NBT's core banking operations demonstrated resilience, with a net interest margin of 3.65% for the quarter. The balance sheet showed a loan portfolio of $11.60 billion and total deposits of $13.50 billion at year-end. A notable contributor to non-interest income was the strong performance of fee-based services, particularly within wealth management and insurance operations.

The completed merger with Evans Bancorp in mid-2025 was a primary catalyst for the year's results. The integration has effectively expanded NBT's presence in Western New York, creating synergies that drove the double-digit expansion.

Outlook and Strategic Focus for 2026

Looking ahead, management has set a loan growth target of 4% to 5% for the 2026 fiscal year. CEO Scott Kingsley pointed to favorable trends in the repricing of fixed-rate assets and disciplined balance sheet management as supportive factors for this objective.

The company also acknowledges ongoing portfolio considerations. Management will maintain a watchful eye on the commercial real estate (CRE) lending segment during 2026, following unexpected paydowns of up to $175 million in the prior year. Concurrently, NBT continues the planned annual reduction of a specific solar loan portfolio by approximately $100 million.