NBT Bancorp (NBTB) Q2 2025 earnings summary

Executive summary

• Evans Bancorp merger completed May 2, 2025, adding $1.67B in loans, $1.86B in deposits, 18 branches, 200 employees, and 5.1M shares issued; $91.4M in goodwill and $33.2M core deposit intangible recorded.

• Net income for Q2 2025 was $22.5M ($0.44 per diluted share), down from prior periods due to acquisition costs; operating EPS was $0.88, up 28% year-over-year and 10% sequentially.

• Revenues grew 10.5% sequentially and 22% year-over-year, driven by net interest income and the Evans merger.

• Tangible book value per share rose 9% year-over-year to $24.57; tangible equity ratio at 8.30%, exceeding pre-merger levels.

• Dividend increased 8.8% to $0.37/share, marking the 13th consecutive annual increase.

Financial highlights

• Net income was $22.5M, or $0.44 per diluted share; operating net income was $44.9M, or $0.88 per share.

• Net interest income was $124.2M, up 27.8% year-over-year; net interest margin rose 15 bps sequentially to 3.59%.

• Noninterest income (excluding securities gains) was $46.8M, up 8% year-over-year but down 1.5% sequentially; represented 27% of total revenues.

• Operating expenses (excluding acquisition costs) were $105.4M, up 6.3% sequentially and 17.7% year-over-year, mainly due to Evans integration and merit increases.

• Total loans at period end were $11.62B, deposits $13.52B; loan to deposit ratio at 86.0%.

Outlook and guidance

• Net interest margin expected to improve slightly in Q3, with full Evans accretion impact and some asset repricing, but at a slower pace.

• Funding costs are stabilized; further NIM improvement depends on curve normalization.

• Noninterest expenses projected at $105M plus $11–12M from Evans per quarter, with some seasonality.

• Loan pipeline at record levels, but growth rate likely to remain steady in the second half due to customer hesitancy.

• Net interest income trajectory will depend on interest rate trends, with modest increases in rising rate scenarios.