NBT Bancorp Raises Profit to $58 Million in Third Quarter of 2026
Key Facts
NBT Bancorp reported net income of $58.0 million, or $1.11 per diluted common share, in the third quarter of 2026, compared with $54.5 million and $1.03 per share in the same period of 2025, and $53.0 million and $1.02 per share in the second quarter of 2026. Chief Executive Scott Kingsley said the record results reflect the strength of the company’s diversified business model and disciplined execution. Revenue increased 4.5% from the previous quarter, while expenses rose 3.3%. Noninterest income was $52.9 million, excluding net securities gains, equal to 27% of total revenue. The results show improved income and margins alongside lending growth, with a limited increase in indicators of troubled assets.
Net interest income was $142.1 million, up $5.1 million, or 3.7%, from the second quarter, and $7.4 million, or 5.5%, from the third quarter of 2025. The company attributed the quarterly increase to organic growth in average loans, one additional calendar day in the quarter, and a $1.5 million increase in the accretion of acquisition accounting adjustments. The fully tax-equivalent net interest margin reached 3.78%, up 5 basis points from the previous quarter and 12 basis points from the year-earlier period. The company said the year-over-year margin improvement was mainly due to a lower cost of funding. This reflects support from lending activity and funding, while quarterly revenue growth remained above the increase in expenses.
Loans outstanding at the end of September totaled $11.95 billion, compared with $11.60 billion on December 31, 2025, an increase of $350.4 million, or 3.0%. The company said growth included commercial and consumer lending during the third quarter. Deposits were $13.59 billion on September 30, compared with $13.50 billion at the end of 2025. The loan-to-deposit ratio rose to 87.9% from 85.9% over the same period. Loans grew faster than deposits, while a lower cost of funding helped support the year-over-year net interest margin.
Nonperforming assets increased to 0.43% of total assets on September 30, compared with 0.40% on June 30 and 0.33% on December 31, 2025. The company attributed the increase to additional commercial lending relationships moving to nonaccrual status and a rise in past-due residential loans. Meanwhile, the provision for credit losses fell to $3.8 million in the third quarter from $6.1 million in the second quarter. The company said the lower provision was mainly due to slower loan growth and a decrease in the provision for credit losses. These indicators place improved earnings alongside a gradual rise in the nonperforming asset ratio during the first nine months of the year.
The company reported tangible book value of $27.75 per share on September 30, while the tangible common equity to tangible assets ratio was 9.07%. The common equity Tier 1 capital ratio was 12.43%, and the leverage ratio was 9.99% on the same date. These ratios were 12.34% and 9.70%, respectively, on March 31, while tangible book value per share was $27.05 and the tangible equity to tangible assets ratio was 8.96%. NBT also said it will host a call to review third-quarter results at 10:00 a.m. Eastern time on Wednesday, October 28, 2026.