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1. Company Snapshot

1.a. Company Description

NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services.Its deposit products include demand deposit, savings, negotiable order of withdrawal, money market deposit, and certificate of deposit accounts.The company's loan portfolio comprises commercial and industrial, commercial real estate, agricultural, and commercial construction loans; indirect and direct consumer, home equity, mortgages, business banking loans, and commercial loans; and residential real estate loans.


It also provides trust and investment services; financial planning and life insurance services; and retirement plan consulting and recordkeeping services.In addition, the company offers insurance products comprising personal property and casualty, business liability, and commercial insurance, as well as other products and services through 24-hour online, mobile, and telephone channels that enable customers to check balances, make deposits, transfer funds, pay bills, access statements, apply for loans, and access various other products and services.As of December 31, 2021, it had 140 branches and 164 ATMs in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Connecticut, and Maine.


NBT Bancorp Inc.was founded in 1856 and is headquartered in Norwich, New York.

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1.b. Last Insights on NBTB

NBT Bancorp Inc.'s recent performance was negatively impacted by weaknesses in its Northeastern markets, which are expected to slow down growth. The company's recent acquisition of Evans Bancorp led to a jump in loans, but cost savings from the acquisition will likely be a key earnings catalyst. A falling interest rate environment may also affect the company's margin due to its large balance of floating-rate loans. The upcoming Q3 2025 earnings release on October 27, 2025, may provide further insights.

1.c. Company Highlights

2. NBT Bancorp's Strong Q3 2025 Earnings: A Closer Look

NBT Bancorp reported robust financial performance in Q3 2025, with revenues growing approximately 9% from the prior quarter and 26% from the third quarter of the prior year, driven by improvements in net interest income and the impact of the Evans merger. The company's net interest margin increased by 7 basis points to 3.66% in the third quarter, driven by earning asset yield improvement. Earnings per share (EPS) came in at $1.05, beating estimates of $0.97. The company's operating return on assets was 1.37%, and return on equity was 12.1%.

Publication Date: Nov -29

📋 Highlights
  • Operating Returns:: 1.37% ROA, 12.1% ROE, and 17.6% ROTCE highlight strong profitability driven by asset repricing and the Evans merger.
  • Earnings Growth:: Operating EPS rose $0.17 to $1.05, with revenues up 9% QoQ and 26% YoY, driven by net interest income and the merger.
  • Margin Expansion:: Net interest margin increased 7 bps to 3.66%, with fee income up 9.8% QoQ and 13.5% YoY, reflecting diversified revenue streams.
  • Cost Efficiency:: Operating expenses stabilized at $110M (4.4% QoQ increase), with $3.1M provision expense (–$14.7M QoQ) and 1.2% loan reserves (2.5x NPLs).
  • Strategic Direction:: 4–6 de novo branches/year, M&A focus for franchise growth, and $3B variable-rate loans positioned for yield curve improvements in 2026.

Revenue Growth and Margin Expansion

The company's revenue growth was driven by a combination of factors, including the Evans merger and improvements in net interest income. The net interest margin expansion was a key contributor to the revenue growth, with a 7 basis point increase to 3.66%. According to Annette Burns, the company's CFO, the net interest margin is "fairly stabilized and [at an] appropriate run rate." This suggests that the company is well-positioned to maintain its margin in the near term.

Expense Management and Efficiency

NBT Bancorp's operating expenses, excluding acquisition expenses, were $110 million for the quarter, a 4.4% increase from the prior quarter. The company's CFO, Annette Burns, stated that the company thinks its cost savings are "essentially achieved during the third quarter and don't expect any additional meaningful impact related to those on a go-forward basis." This suggests that the company has made significant progress in managing its expenses.

Valuation and Dividend Yield

Using the provided valuation metrics, we can see that NBT Bancorp's Price-to-Tangible Book Value (P/TBV) is approximately 1.05, which is a reasonable valuation for a bank. The company's Dividend Yield is 3.35%, which is an attractive yield for income investors. Given the company's strong financial performance and guidance, it appears that the stock is reasonably valued.

Outlook and Growth Prospects

NBT Bancorp is well-positioned for future growth, with a strong pipeline of potential mergers and acquisitions. The company is also planning to open new branches, with a target of 4 to 6 de novo branches per year. With a stable net interest margin and a strong capital position, the company is poised for continued growth and profitability.

3. NewsRoom

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NBT Bancorp Inc. (NBTB) Q3 2025 Earnings Call Transcript

Oct -28

Source: seekingalpha.com

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NBT (NBTB) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Oct -28

Source: zacks.com

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NBT Bancorp (NBTB) Tops Q3 Earnings and Revenue Estimates

Oct -27

Source: zacks.com

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Cwm LLC Lowers Stock Holdings in NBT Bancorp Inc. $NBTB

Oct -23

Source: defenseworld.net

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Yousif Capital Management LLC Has $804,000 Stock Holdings in NBT Bancorp Inc. $NBTB

Oct -23

Source: defenseworld.net

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33,522 Shares in NBT Bancorp Inc. $NBTB Purchased by Members Advisory Group LLC

Oct -20

Source: defenseworld.net

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NBT Bancorp Inc. Announces Date of Third Quarter Conference Call

Oct -01

Source: globenewswire.com

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NBT Bancorp: Recent Acquisition Is The Biggest Earnings Catalyst, Buy

Sep -17

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.00%)

6. Segments

Banking and Related Activities

Expected Growth: 9.0%

NBT Bancorp Inc.'s 9.0% growth in Banking and Related Activities is driven by strategic expansion into new markets, increased commercial lending, and improved deposit growth. Additionally, the company's focus on digital transformation, enhanced customer experience, and cost savings initiatives have contributed to the growth.

7. Detailed Products

Personal Banking

NBT Bancorp Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

NBT Bancorp Inc. provides business banking services, including commercial loans, cash management, and treasury management solutions.

Wealth Management

NBT Bancorp Inc. offers wealth management services, including investment management, trust services, and financial planning.

Insurance

NBT Bancorp Inc. provides insurance services, including personal and commercial insurance products.

Mortgage Banking

NBT Bancorp Inc. offers mortgage banking services, including residential and commercial mortgage lending.

Commercial Lending

NBT Bancorp Inc. provides commercial lending services, including term loans, lines of credit, and construction loans.

8. NBT Bancorp Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

NBT Bancorp Inc. operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand presence and customer loyalty mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

NBT Bancorp Inc. has a large customer base, and customers have significant bargaining power due to the availability of alternative banking services. This forces the company to maintain competitive pricing and services to retain customers.

Bargaining Power Of Suppliers

NBT Bancorp Inc. has a diversified supplier base, and suppliers have limited bargaining power due to the company's significant scale and purchasing power.

Threat Of New Entrants

The banking industry has significant barriers to entry, including regulatory hurdles and high capital requirements. This limits the threat of new entrants and allows NBT Bancorp Inc. to maintain its market position.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. NBT Bancorp Inc. faces intense rivalry from other banks and financial institutions, which can lead to pricing pressures and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.13%
Debt Cost 6.50%
Equity Weight 68.87%
Equity Cost 6.50%
WACC 6.50%
Leverage 45.21%

11. Quality Control: NBT Bancorp Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 8.8

Quality: 7.5

Yield: 0.0

Momentum: 7.5

Volatility: 6.0

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Old Second Bancorp

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NBT Bancorp

A-Score: 6.0/10

Value: 6.0

Growth: 5.0

Quality: 7.4

Yield: 6.0

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Growth: 4.7

Quality: 6.9

Yield: 4.0

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Volatility: 6.0

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Value: 5.6

Growth: 3.9

Quality: 6.9

Yield: 4.0

Momentum: 1.5

Volatility: 9.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

42.01$

Current Price

42.01$

Potential

-0.00%

Expected Cash-Flows