NBT Bancorp (NBTB) Q4 2024 earnings summary

Executive summary

• Achieved net income of $36.0 million ($0.76 per diluted share) for Q4 2024, with operating EPS of $0.77, and full-year net income of $140.6 million ($2.97 per share), supported by strong loan and deposit growth and three consecutive quarters of net interest margin expansion.

• Non-interest income reached 30% of total revenues, with all non-banking businesses posting record revenue and earnings; noninterest income grew 11.1% year-over-year.

• Announced and progressed the Evans Bancorp merger, expanding presence into Western New York, with regulatory and shareholder approvals received and closing targeted for Q2 2025.

• Declared a $0.34 quarterly dividend, up 6.3% year-over-year, marking 12 consecutive years of dividend increases.

• Capital position strengthened, with tangible equity to assets at 8.42% and tangible book value per share reaching an all-time high of $23.88.

Financial highlights

• Q4 net income was $36 million, or $0.76 per share; operating EPS (excluding merger costs and securities gains) was $0.77, down $0.03 from prior quarter.

• Total loans grew $319.2 million (3.3%) year-over-year to $9.97 billion; excluding runoff portfolios, loans increased $478.6 million (5.6%).

• Total deposits rose $577.8 million (5.3%) year-over-year to $11.55 billion; noninterest bearing deposits comprised 30% of total.

• Net interest margin for Q4 was 3.34%, up 7 basis points sequentially; net interest income increased $4.4 million from Q3 to $106.7 million.

• Fee income (excluding securities gains/losses) was $42.2 million, up 11.1% year-over-year.

Outlook and guidance

• Operating expense run rate expected at $97–$99 million per quarter for the first half of 2025, with a 4–5% increase projected for the full year.

• Loan growth guidance remains mid-single digits, excluding runoff portfolios.

• Fee businesses expected to grow mid- to high-single digits organically, with additional upside from Evans merger.

• Tax rate guidance for 2025 is 22.5–23%.

• Well positioned to support regional growth, particularly in the Upstate NY semiconductor chip corridor, with active strategies for all business lines.