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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 positively driven by its Q3 earnings beat, with quarterly earnings of $1.05 per share exceeding the Zacks Consensus Estimate of $0.97 per share. This represents a 31.3% year-over-year increase. The company's revenue also surpassed estimates. Additionally, institutional investors such as Members Advisory Group LLC and Yousif Capital Management LLC have been increasing their stakes in the company, with purchases of 33,522 and incremental buys of 1,890 shares, respectively.

1.c. Company Highlights

2. Strong Operating Performance with Diversified Growth

NBT Bancorp reported robust fourth-quarter and full-year 2025 financial results, with operating return on assets at 1.37% for the second consecutive quarter and return on tangible equity of 17.02%. The company's net income was $55.5 million or $1.06 per diluted common share, with core operating earnings of $1.05 per share, beating analyst estimates of $0.99. Revenue generation remained favorable, growing 25% from the fourth quarter of 2024, driven by improvements in net interest income and noninterest income. Total loans were up $1.63 billion or 16.3% for the year, with a diversified loan portfolio of $11.6 billion.

Publication Date: Mar -02

📋 Highlights
  • Operating Returns:: 1.37% operating ROA for 2 consecutive quarters, 17.02% return on tangible equity
  • Tangible Book Value Growth:: 11% YoY increase to $26.54 per share
  • Loan Portfolio Expansion:: $1.63B (16.3%) annual loan growth, total portfolio of $11.6B
  • Revenue & Earnings:: $55.5M net income ($1.06/share), $135.4M net interest income (+$1M QoQ)
  • Capital Allocation:: $10M share repurchases, 5%+ accretion hurdle for M&A, 20.3% effective tax rate

Net Interest Margin and Income

The company's net interest margin decreased 1 basis point to 3.65% compared with the prior quarter, with net interest income at $135.4 million, an increase of $1 million above the prior quarter and $29 million above the fourth quarter of 2024. The net interest margin is expected to remain stable in the first quarter, with gradual expansion of 2-3 basis points per quarter.

Loan Growth and Asset Quality

Regarding loan growth, CEO Scott Kingsley expects mid-to-lower single-digit growth in 2026, driven by a strong pipeline, particularly in Western New York, with a focus on holistic relationships. Provision expense was $3.8 million, with reserves at 1.19% of total loans, indicating strong asset quality. Charge-offs are expected to normalize at around 15-20 basis points as the company winds down its unsecured consumer book.

Capital Utilization and M&A

NBT Bancorp's capital utilization priorities focus on supporting organic growth strategies, improving the dividend, and evaluating M&A opportunities. The company repurchased 250,000 shares in the fourth quarter and has a hurdle rate of return of at least 5% accretion for potential acquisitions. The company is actively having conversations with smaller community banks across its seven states.

Valuation

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 1.06, which is relatively in line with peers, and a Dividend Yield of 3.32%, NBT Bancorp appears to offer an attractive return profile. Analysts estimate revenue growth at 5.6% for the next year, which, combined with the current valuation metrics, suggests a stable outlook for the stock.

3. NewsRoom

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Deprince Race & Zollo Inc. Sells 114,752 Shares of NBT Bancorp Inc. $NBTB

Apr -14

Source: defenseworld.net

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SG Americas Securities LLC Buys 47,550 Shares of NBT Bancorp Inc. $NBTB

Apr -04

Source: defenseworld.net

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Financial Planning Hawaii Inc. Purchases New Position in NBT Bancorp Inc. $NBTB

Mar -31

Source: defenseworld.net

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What Investors Should Know About NBT Bancorp Stock as One Insider Reports Selling $99K in Shares

Mar -26

Source: fool.com

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Dynamic Technology Lab Private Ltd Sells 25,616 Shares of NBT Bancorp Inc. $NBTB

Mar -12

Source: defenseworld.net

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Comparing NBT Bancorp (NASDAQ:NBTB) and Valley National Bancorp (NASDAQ:VLY)

Mar -12

Source: defenseworld.net

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NBT Bancorp Inc. (NBTB) Q4 2025 Earnings Call Transcript

Jan -27

Source: seekingalpha.com

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NBT (NBTB) Reports Q4 Earnings: What Key Metrics Have to Say

Jan -27

Source: zacks.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

Stock-Card
Old Second Bancorp

A-Score: 5.9/10

Value: 5.5

Growth: 7.6

Quality: 6.1

Yield: 2.0

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
NBT Bancorp

A-Score: 5.8/10

Value: 6.2

Growth: 5.0

Quality: 7.6

Yield: 6.0

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Lake Shore Bancorp

A-Score: 5.8/10

Value: 5.3

Growth: 4.1

Quality: 7.0

Yield: 5.0

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Sound Financial Bancorp

A-Score: 5.4/10

Value: 6.0

Growth: 3.9

Quality: 6.9

Yield: 4.0

Momentum: 1.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Northeast Bank

A-Score: 5.2/10

Value: 6.2

Growth: 8.8

Quality: 7.4

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
First Bancshares

A-Score: 5.1/10

Value: 4.9

Growth: 4.8

Quality: 6.9

Yield: 3.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

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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

45.19$

Current Price

45.19$

Potential

-0.00%

Expected Cash-Flows