On this page of StockholderLetter.com we present the latest annual shareholder letter from NBT BANCORP INC — ticker symbol NBTB. Reading current and past NBTB letters to shareholders can bring important insights into the investment thesis.

 •  4/6/2026 Letter Continued (Full PDF)
 •  More "Banking & Savings" Category Stockholder Letters
 •  NBTB Benford's Law Stock Score = 100

NBTB Shareholder/Stockholder Letter Transcript:

Financial Highlights
Company Pro   le
(In thousands, except per share data)
FOR THE YEAR
2025
2024
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$194,530
$139,657
Diluted earnings. . . . . . . . . . . . . . . . . . . . . . . .
$3.82
$2.94
    The Company primarily operates through NBT Bank, N.A.
and two    nancial services companies.
    NBT Bank, N.A. offers personal banking, commercial
PERFORMANCE
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    NBT Bancorp Inc. is a    nancial holding company
incorporated in 1986 in the state of Delaware.
OPERATING PERFORMANCE*
$169,235
$140,641
Return on average assets . . . . . . . . . . . . . . .
1.11%
1.04%
Return on average tangible equity . . . . . .
14.14%
13.75%
Net interest margin . . . . . . . . . . . . . . . . . . . . .
3.59%
3.23%
banking, and wealth management services through
digital channels and 176 banking locations in New York,
Pennsylvania, Vermont, Massachusetts, New Hampshire,
Maine, and Connecticut.
    EPIC Retirement Plan Services is a national bene   ts
PER COMMON SHARE DATA
administration    rm based in Rochester, NY that offers
Diluted earnings. . . . . . . . . . . . . . . . . . . . . . . .
$3.33
$2.97
a full suite of custom retirement plan solutions to over
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . .
$1.42
$1.32
400,000 plan participants nationwide.
Dividend yield. . . . . . . . . . . . . . . . . . . . . . . . . .
Tangible book value per share . . . . . . . . . .
3.42%
$26.54
2.76%
$23.88
    NBT Insurance Agency is a full-service agency based in
Norwich, NY that offers insurance solutions for individuals,
families, and businesses.
AT DECEMBER 31
BALANCE SHEET DATA
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$15,995,121
$13,786,666
Total loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11,598,114
$9,969,910
Allowance for loan losses . . . . . . . . . . . . . . .
$138,000
$116,000
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$13,499,193
$11,546,761
Total shareholders    equity. . . . . . . . . . . . . . .
$1,896,216
$1,526,141
ASSET QUALITY
Net charge-offs to average loans. . . . . . . .
0.16%
0.18%
Nonperforming loans to total loans. . . . . .
0.45%
0.52%
Nonperforming assets to total assets . . . .
0.33%
0.38%
Allowance for loan losses to total loans . .
1.19%
1.16%
Common equity tier 1 capital ratio . . . . . . .
12.07%
11.93%
Tier 1 capital ratio. . . . . . . . . . . . . . . . . . . . . . .
12.07%
12.83%
Total risk-based capital ratio . . . . . . . . . . . .
14.24%
15.03%
CAPITAL
Closing stock price . . . . . . . . . . . . . . . . . . . . .
$41.52
$47.76
Market capitalization . . . . . . . . . . . . . . . . . . .
$2,167,467
$2,254,010
83RD
16.00B
11.60B
13.50B
28%
LARGEST U.S. BANK
HOLDING COMPANY
TOTAL ASSETS
TOTAL LOANS
TOTAL DEPOSITS
NONINTEREST INCOME
TO REVENUE*
*Excludes gains/losses
on sale of securities
In 2025, NBT Bank introduced a new brand tagline:
*Operating Performance excludes acquisition expenses, acquisition-related provision for credit
losses and securities gains and (losses), net of tax. A reconciliation of operating results with GAAP
results and information regarding why these measures provide useful information about our
results is included in Item 7 in the 2025 Form 10-K.
It Starts Here. This statement re   ects our commitment
to serving customers from the very start of their    nancial
journeys. From meeting everyday    nancial needs to helping
customers grow businesses and plan for what comes next   
NBT is here to be a trusted partner for those seeking to
initiate or accelerate their    nancial goals.
The tagline also aligns with how we advance the NBT
organization and its future. Our growth, performance,
and long-term success start with strong fundamentals,
disciplined execution, thoughtful investment, and the
dedication of our team members. As we build on our recent
momentum and strive to make every day matter, It Starts
Here conveys both our con   dence in the opportunities
before us and our optimism about NBT   s ability to continue
creating long-term value.
2 | NBT BANCORP INC.

Total Loans
To Our Shareholders
Residential
Mortgage
22%
Fellow Shareholders,
NBT   s operating performance in 2025 re   ects the strength
Indirect Auto
12%
and consistency of our successful community banking
model, the value of our diversi   ed revenue streams, and
the disciplined execution of our long-term strategies.
Home Equity
4%
11.60B

We operate with a strong capital position, a stable and
granular deposit base, and a balanced loan portfolio,
complemented by fee-based businesses that provide
meaningful and growing contributions to revenue.
Commercial
& Industrial
14%
Residential
Solar & Other
Consumer
7%
Together, this foundation and the dedication of our team
Non-Owner Occupied
Commercial Real Estate
32%
members delivered record results in 2025 as we expanded
our footprint and invested in our future.
Owner
Occupied
Commercial
Real Estate
9%
For the year, we reported operating net income of $194.5
million and operating earnings of $3.82 per diluted share.
These results re   ect the contributions from our merger
Total Deposits
with Evans Bancorp, Inc. in the second quarter, combined
with productive balance sheet growth, improving net
interest margin, and record performance across our feebased businesses. Collectively, these drivers produced
Time
11%
positive operating leverage and underscored the strength
Demand
(Noninterest
Bearing)
28%
of our multi-faceted business model.
Building momentum through growth and integration.
Loan and deposit growth bene   ted from both organic
activity across our footprint and the successful completion
of the Evans merger.
Money
Market
31%
13.50B

In 2025, total loans increased 16.3% to $11.60 billion, while
maintaining a balanced mix of 56% commercial loans and
44% consumer loans. Total deposits grew 16.9% to $13.50
billion, supported by a diverse and granular base of more
than 613,000 accounts with an average balance of $22,014.
Savings & InterestBearing Checking
30%
Our disciplined management of funding costs, combined
with the improved mix of earning assets and the addition
of the Evans balance sheet, resulted in a 36-basis-point
improvement in net interest margin to 3.59% for the year.
Fee Income Growth
Noninterest income remained a meaningful contributor
to performance, with each of our nonbanking businesses
delivering record results in both revenue and earnings
generation in 2025. On a combined basis, revenues for
EPIC Retirement Plan
Services, NBT Insurance
Agency, and the Wealth
Management division of
NBT Bank increased 8%
over the prior year and,
9.0%
together, these businesses
3-YEAR
COMPOUND ANNUAL
GROWTH RATE
compound annual growth
have achieved a three-year
rate of 9%.
2025 ANNUAL REPORT | 3

NBT Bank President Joe Stagliano and NBT Bancorp President and CEO Scott Kingsley
with leaders from across the organization at NBT   s annual leadership conference.
Expanding our footprint with
New York, Connecticut, and the Hudson Valley re   ect this
purpose. The Evans merger
balanced approach and position us well for future growth.
was an important milestone in
NBT   s growth story and re   ects a
balance of strategic opportunity,
thoughtful execution, and future

1.67B
LOANS ADDED
momentum. Completed in May,
the merger added 200 employees
and 18 banking locations in
Western New York, along with

1.86B
DEPOSITS ADDED
Equally important to our growth strategy is how we support it
operationally. In 2025, we continued to evolve our processes
to ensure they scale alongside our expanding footprint and
growing customer base. We advanced digital and operational
enhancements, strengthened our data infrastructure, and built
greater alignment across teams to support consistent execution
and informed decision making.
$1.67 billion in loans and $1.86
A key part of this evolution is our thoughtful and responsible
billion in deposits. This expansion
use of arti   cial intelligence to enhance customer and employee
established our presence in
experience, improve operational efficiency, and strengthen
Upstate New York   s largest
risk management. AI is not new to NBT; it builds on years of
markets1 based on population   
investment to streamline recurring work, improve data quality,
Buffalo and Rochester   and was integrated successfully,
and reinforce governance and controls. By embedding AI within
resulting in high customer retention and a strong foundation
our systems and pairing it with training and oversight, we are
for growth. Following the merger, we welcomed David Nasca,
reducing workload and creating capacity for employees to
former President and Chief Executive Officer of Evans, to our
focus on higher-value, relationship-based work   while keeping
Board of Directors, adding valuable regional banking insight to
judgment, care, and human connection at the center of our
our Board.
culture.
Beyond the integration of Evans, the NBT Bank footprint is
Together, these efforts are helping us reduce friction, improve
expanding in a disciplined and targeted manner across our
agility, and support scalable, sustainable growth   positioning
broader service area. Our branch network extends from Buffalo
NBT to deliver the consistent, high quality service we are known
to Portland, Maine and from Burlington, Vermont south to
for as we expand across markets and lines of business.
Wilkes-Barre, Pennsylvania. In 2025, we expanded our footprint
with new banking locations in Webster, New York, and South
Burlington, Vermont, and began 2026 with the opening of a
full-service retail office in Portland, Maine. These investments
support our strategy to strengthen our connected network and
deepen our presence in the markets we serve.
Developing talent and advancing leadership. Our people are
central to NBT   s success, and investing in their development
remains a priority as we grow.
We support employees at every
stage of their careers through
ongoing coaching, training, and
Positioned to grow   and built to scale. NBT does not pursue
development opportunities. In
growth for growth   s sake. Our approach is rooted in disciplined
2025, more than 250 employees
execution, strong relationships, and long-term perspective.
participated in leadership and
We see meaningful opportunities to grow organically across
professional development
our markets and lines of business, complemented by selective
programs, re   ecting our
acquisitions of like-minded organizations that strengthen our
commitment to building talent,
footprint and capabilities. Recent expansions across Western
strengthening engagement, and
PARTICIPATED IN
CAREER DEVELOPMENT
preparing the next generation of
PROGRAMS
1
Excludes the New York City MSA and select counties (Kings, Nassau,
New York, Queens, Richmond, Suffolk, and Westchester counties)
4 | NBT BANCORP INC.
leaders across our organization.
250+
Employees

We also advanced our leadership structure to support
believe enduring value is re   ected
NBT   s growth and execution of our strategies. Al Testa was
in the durability of our franchise and
promoted to Executive Vice President and President of
the trust we earn over time.
Commercial Banking and joined the Executive Management
Team. In this role, Al provides leadership to our regional teams
and the lines of business within our Commercial Banking
organization, supporting our relationship-driven approach
across our footprint. Sarah Halliday assumed the new role of
Chief Commercial Innovation Officer, where she is focused
on transforming commercial operations through data-driven
insights, process optimization, and cross-functional alignment.
In addition, Sarah is leading initiatives aimed at enhancing client
experience, retention, and growth.
Thoughtful succession planning remains a critical focus for
our organization. After more than a decade of executive
leadership and service, Amy Wiles will step down from her role
as Executive Vice President, Chief Credit Officer and Chief Risk
Officer in June and continue as a strategic advisor through yearend. Amy has played a central role in strengthening our credit
culture and advancing enterprise risk management, and we are
deeply grateful for her contributions and leadership.
We are pleased to have experienced leaders ready to assume
At NBT, results matter   for our
customers as they pursue    nancial
goals, for our employees as they
Consecutive
Years
build rewarding careers, and for
our shareholders who place their
con   dence in our leadership and
strategy. Sustained success comes
ANNUAL DIVIDEND
INCREASES
from disciplined execution, sound
decision making, and a clear
understanding of what drives long-term performance.
We appreciate the continued support and con   dence of our
shareholders and the guidance of our Board of Directors.
Most importantly, we thank our employees across our growing
footprint. Their dedication, professionalism, and commitment to
serving our customers and communities are at the heart of our
success. As we look ahead, we remain committed to building on
that momentum and continuing to make every day matter.
Sincerely,
these critical roles. Tara Trafton will succeed Amy as Chief Credit
Officer, and Joe Sergienko will assume the role of Chief Risk
Officer. Their appointments re   ect the depth of talent within our
organization and reinforce our con   dence in the continuity and
strength of our Executive Management Team.
Creating enduring value. We believe the value of your
investment in NBT is built on consistency, discipline, and
purpose. Our long-term approach   grounded in strong
fundamentals, prudent risk management, and thoughtful
growth   has enabled us to navigate change while continuing
to invest in our business, our people, and the communities we
serve. That approach has supported thirteen consecutive years
Scott A. Kingsley
Martin A. Dietrich
of annual dividend increases, underscoring our commitment
President and
Chairman of the Board
to delivering consistent, long-term returns to shareholders. We
Chief Executive Officer
2026 Annual Meeting
Tuesday, May 19, 2026 | 11:00 a.m. ET
www.virtualshareholdermeeting.com/NBTB2026
Forward-Looking Statements
This letter contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995 and are subject to a number of risks and uncertainties. Such statements are not guarantees of future performance and actual
results may differ materially from any forward-looking statements contained in this letter. For a discussion of the factors that might cause
such differences, please refer to our    lings with the Securities and Exchange Commission.
2025 ANNUAL REPORT | 5

4/6/2026 Letter Continued (Full PDF)

 

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