Oct 28, 2026 earnings call — Record net interest income and third quarter earnings
NBT reported record third quarter net income of $58 million, or $1.11 per diluted common share.
Revenue $0.2B (est $0.2B) · EPS $1.11 (est $1.09)
Key quotes
"Our net interest income increased to a record $143 million, up $5 million from the second quarter and more than 5% above the third quarter of 2025."
"We are also excited to expand our presence in the area with a new branch expected to open in the first half of 2027."
"Combined revenues from retirement plan services, wealth management, and insurance services generated a approximately $34 million in quarterly revenues, a new high."
Analyst Q&A 9
Loan growth and margins
Q (Feddie Strickland · Hovde Group): Will loan growth pick up into Q4? Also, will loan discount accretion step back and would more rate hikes lift margin?
A: Management expects a consistent loan growth outcome for Q4, noting productive new construction pipelines. They expect purchase-accounting accretion to normalize next quarter and say assets will reprice quickly in a rising rate scenario, giving some margin improvement over time.
"Our accretion related to purchase accounting kind of runs somewhere between $6 million and $6.5 million on average." — Annette L. Burns (CFO)
Securities yields and expenses
Q (David Konrad · KBW): What yields are you getting when reinvesting securities and how fast will the securities book reprice? Also, what are expense expectations for next quarter?
A: They said the securities portfolio is being replaced with instruments targeting roughly 4% yield and about a 6-year duration, mostly mortgage-backed. For expenses, they expect similar levels in Q4, which is about a 3% increase year over year and in line with their expectations.
"But we are probably targeting stuff that is in the 4%, 6-year duration when we replace, and it is typically mortgage backed instruments of some fashion or form." — Scott A. Kingsley (CEO)
CHIPS impact and 2027 outlook
Q (Manuel Navas · Piper Sandler): Will CHIPS-related activity accelerate loan growth and do you have lending talent? Also early thoughts on 2027 loan growth, NIM, and OpEx?
A: They said their teams are well positioned in the key markets and they expect more lending needs during construction (contractor lending) before household growth. For 2027 they view 3% to 5% loan growth as a good starting point and expect merit pay increases around 3% to 3.5%, with some branch expansion and double-digit medical cost pressure.
"I think from a team standpoint, we really like where we are positioned today." — Scott A. Kingsley (CEO)
Retirement revenue and loan payoffs
Q (Stephen Moss · Raymond James): Should retirement plan income be similar in Q4? And what is driving loan payoffs? Also thoughts on auto loan pricing and deposit beta?
A: They said retirement plan revenue usually dips in Q4 and they expect 5% to 7% growth into 2027 after a strong year. Payoffs are idiosyncratic: customers using liquidity to pay debt, high asset values leading to monetizations, end of construction projects being taken out, and some displacement by other lenders; auto loans yield mid-5s with short duration and remain attractive; deposit beta may be similar or a bit higher this cycle.
"I think in the fourth quarter, remember that the fourth quarter for us in that business is generally lower than the third quarter." — Scott A. Kingsley (CEO)
New loan yields late in quarter
Q (Matthew Breese · Stephens): How did origination yields move by the end of the quarter versus the quarterly average? Are deals failing because of higher rates?
A: They said new origination yields have moved up as the yield curve rose, giving some positive repricing opportunities. They also see some tightening in spreads so repricing is not a 1-for-1 move with the curve.
"I would say we probably are seeing a little bit of tightening in spreads given just where the overall higher level of rates are." — Annette L. Burns (CFO)
Service fees and deposit risk
Q (Matthew Breese · Stephens): When were the account fee changes implemented and will service charge revenue continue? Also, is generative AI increasing deposit flight risk?
A: They said most account fee changes were implemented at the start of the quarter and similar fee revenue levels are expected in Q4 and going forward. On deposit risk from AI or digital tools, they said they already offer competitive products, their deposit base is granular, and they will continue to manage relationships and product options to retain customers.
"Most of that was put in place right at the beginning of the quarter." — Annette L. Burns (CFO)
Exit NIM and consumer deposit counts
Q (Jacob Civiello · D.A. Davidson): Did you have an exit NIM for September? Why did consumer deposit account counts decline sequentially?
A: They did not provide a separate exit NIM, saying it is not dissimilar from the quarter and ex-accretion impact is about 3 basis points. For the consumer account decline they cited selection out of certain low-balance accounts and that recent fee structure changes likely led some customers to consolidate balances.
"I would say it is not dissimilar from what you saw for the quarter." — Annette L. Burns (CFO)
Nonperforming loans and reserves
Q (Daniel Cardenas · Freedman Capital): Are nonperformers rising in specific industries or broadly? Also status of criticized/classified loans and Q3 tax rate?
A: They said nonperforming loans had a slight uptick but it is borrower-specific, not tied to particular industries or regions, and they feel reserves are appropriate. Criticized and classified levels are ticking down from last quarter and much lower than a year ago after managing credits from the Evans Bancorp onboarding. The higher tax rate this quarter was a true-up tied to revenue versus taxable income expectations.
"We are not seeing any specific trends, industry, regions, it is really more tied to some very borrower specific events." — Annette L. Burns (CFO)
Q4 expenses and M&A talks
Q (Feddie Strickland · Hovde Group): Will expenses repeat around current levels in Q4? Has the rate environment changed M&A conversations with potential partners?
A: They said expect similar fourth-quarter expense levels, roughly the same $114 million to $115 million run rate, representing a 3% to 3.5% increase year over year. On M&A, they said the rate environment has not changed conversations much; smaller banks generally feel comfortable with current earnings but NBT continues relationship building and remains open to partners for strategic fill-ins across its franchise.
"I think you can expect to see relatively similar levels, so right around that $114 million to $115 million in the fourth quarter that you saw in the third?" — Annette L. Burns (CFO)