Question · Q3 2025
Mark Thomas Fitzgibbon inquired about the possibility of accelerating the exit of NBT Bancorp's solar loan portfolio and the market depth for selling such loans. He also asked if the company was observing any pressure on auto loan delinquencies. Additionally, Mr. Fitzgibbon sought clarification on the net interest margin outlook, specifically whether it was expected to decline or remain close to current levels, and requested an update on the timing for the Micron chip fabrication project.
Answer
Scott Kingsley, NBT Bancorp's CEO and President, stated that there is currently no viable way to accelerate the exit of solar loans without incurring a fair value loss, as these assets are performing as expected despite lower yields on older originations. He also reported no significant pressure on auto loan delinquencies, attributing stability to NBT's focus on A and B paper classes and the necessity of car ownership in their footprint. Annette Burns, CFO, indicated that the margin might face slight pressure in Q4 but could stabilize and potentially improve in 2026, though not at the same rate as 2025. Mr. Kingsley provided an update on the Micron project, expecting site improvement and fill activities through early to mid-2026, with actual building commencing mid to late 2026.