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Jun 30
NBT Q2 2025 Earnings Report
NBT reported a decline in net income compared to the previous quarter, though operating earnings improved following the Evans Bancorp acquisition.
Key Takeaways
NBT Bancorp saw a decrease in reported net income due to acquisition-related costs, but strong operating performance and expanded assets from the Evans acquisition contributed to solid adjusted results.
Net income for Q2 2025 was $22.5 million, down from $36.7 million in Q1.
Adjusted (operating) EPS rose to $0.88, driven by the Evans acquisition.
Total revenue for the quarter was $171.2 million, with $124.2 million from net interest income.
Tangible book value per share was $24.57, and the CET1 capital ratio was 11.37%.
NBT
NBT
NBT Revenue by Segment
NBT Revenue by Geographic Location
Revenue by Segment
Deposit Account Fees Revenue
CapyFin.comCard Services Revenue
CapyFin.comRetirement Admin Fees Revenue
CapyFin.comWealth Management Revenue
CapyFin.comInsurance Services Revenue
CapyFin.comBOLI Income Revenue
CapyFin.comOther Income Revenue
CapyFin.comRevenue by Geographic Location
Western New York Revenue
CapyFin.com Forward Guidance
NBT expects continued integration benefits from the Evans acquisition, a stable credit profile, and solid capital ratios, while cautioning on cost pressures and potential credit normalization.
Positive Outlook
- Integration of Evans Bancorp completed smoothly with growth in customer base.
- Operating EPS growth indicates stronger core business performance.
- Improvement in net interest margin driven by asset yield expansion.
- Loan portfolio increased significantly with favorable mix changes.
- Dividend raised for the 13th consecutive year, reflecting strong capital position.
Challenges Ahead
- Reported net income declined due to one-time acquisition-related charges.
- Higher provision for credit losses driven by acquisition adjustments.
- Noninterest expenses surged due to integration costs and wage pressures.
- Decline in bank-owned life insurance income from prior quarter.
- Loan charge-offs, while low, reflect lingering risk in consumer segments.