NBT Bancorp (NBTB) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $36.7 million, or $0.77 per diluted share, up from $33.8 million in Q1 2024 and $36.0 million in Q4 2024; operating EPS (non-GAAP) was $0.80, up from $0.68 in Q1 2024 and $0.77 in Q4 2024.

• Revenue grew 4.4% sequentially and 11.8% year-over-year, with noninterest income contributing 31% of total revenue and totaling $47.6 million, up 10% year-over-year.

• Net interest income rose to $107.2 million, up 1.1% sequentially and 12.7% year-over-year; net interest margin increased 10 bps to 3.44%.

• Over $100 million added to shareholders' equity in the past 15 months, supporting higher dividends and capital flexibility.

• Evans Bancorp acquisition closed May 2, 2025, for $222 million in stock, expanding presence in Buffalo and Rochester, adding over 200 employees, 40,000 customers, $2.19 billion in assets, and 18 branches.

Financial highlights

• Total assets at March 31, 2025 were $13.86 billion; total loans were $9.98 billion, up $10.4 million from year-end 2024; total deposits were $11.71 billion, up $161.8 million.

• Tangible book value per share reached an all-time high of $24.74, up $0.86 from Q4 2024 and 12.1% year-over-year.

• Total risk-based capital ratio stood at 15.24%; tangible equity to assets at 8.68%; CET1 capital ratio was 12.12%; leverage ratio was 10.39%.

• Net charge-offs to average loans were 0.27% annualized, including a $2.1 million CRE write-down; allowance for credit losses was $117.0 million (1.17% of loans).

• Noninterest expense was $99.9 million, down 1.1% sequentially and up 7.5% year-over-year, excluding acquisition expenses.

Outlook and guidance

• Loan growth expectations for 2025 revised to 2-3%, down from 3-5%, reflecting macroeconomic uncertainty and slower residential mortgage activity.

• Fee income run rate expected around $46 million per quarter, with market volatility potentially impacting wealth management revenues.

• Evans Bancorp merger expected to result in about 4% tangible book value dilution and $0.30 EPS accretion, with cost savings realized by end of 2025.

• Management expects net interest income trajectory to depend on timing and path of interest rates, with focus on managing deposit expense as rates decline.

• Company will provide further details on Evans Bancorp acquisition accounting in Q2 2025.