NBT Bancorp delivered fourth quarter results that met Wall Street’s expectations for both revenue and non-GAAP profit, with no significant reaction from the market. Management attributed the performance to ongoing benefits from the Evans Bancorp merger, improved deposit mix, and strong noninterest income from retirement, wealth management, and insurance businesses. CEO Scott Kingsley noted, “Our operating performance for the fourth quarter continued to reflect the positive attributes of productive fixed rate asset repricing trends and the diversification of our revenue streams.” The company also saw a 36 basis point improvement in net interest margin year-over-year, aided by disciplined balance sheet management and asset repricing, even as loan payoffs in commercial real estate modestly tempered total loan growth.
Is now the time to buy NBTB? Find out in our full research report (it’s free for active Edge members).
NBT Bancorp (NBTB) Q4 CY2025 Highlights:
- Revenue: $185.2 million vs analyst estimates of $183 million (24.4% year-on-year growth, 1.2% beat)
- Adjusted EPS: $1.05 vs analyst estimates of $0.99 (6.6% beat)
- Adjusted Operating Income: $69.79 million vs analyst estimates of $71.2 million (37.7% margin, 2% miss)
- Market Capitalization: $2.32 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From NBT Bancorp’s Q4 Earnings Call
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Feddie Strickland (Hovde Group) asked about the potential for further commercial real estate payoffs impacting loan growth. CEO Scott Kingsley acknowledged this risk, stating, “We think that, that’s an outsized number, but we’re planning for—that could be a risk for our growth attributes going forward this year as well.”
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Mark Fitzgibbon (Piper Sandler) inquired about the increased reserve against the solar loan portfolio. CFO Annette Burns clarified, “No trends or negative concerns as it relates to that book,” explaining the change was a recalibration for a runoff portfolio.
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David Konrad (KBW) questioned the outlook for net interest margin (NIM) and deposit costs. Burns described NIM as likely to remain stable with “maybe 2 or 3 basis points” improvement per quarter, and noted limited opportunity for further deposit repricing as rates decline.
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Daniel Cardenas (Janney Montgomery Scott) pressed on competitive lending conditions and deposit repricing by geography. Kingsley said competition is rational but noted that “highly rated companies…have been able to demand a lower spread,” while deposit rate adjustments are more easily achieved in legacy markets with strong share.
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Matthew Breese (Stephens) asked about normalized charge-off rates as legacy consumer books run off. Burns expects normalized charge-offs to settle in the 15 to 20 basis points range, lower than historical averages due to the changing loan mix.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will monitor (1) the pace of loan growth versus runoff in legacy portfolios, (2) progress in deposit mix improvement and the resulting impact on funding costs, and (3) continued expansion of noninterest income from wealth, retirement, and insurance businesses. Developments in M&A activity and the competitive landscape for both loans and deposits will also be important markers for execution against NBT Bancorp’s strategic priorities.
NBT Bancorp currently trades at $44.46, up from $43.91 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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