NBT Bancorp (NBTB) Q4 2024 earnings summary

Executive summary

• Q4 2024 net income was $36 million ($0.76 per share), with operating EPS of $0.77 and full-year net income of $140.6 million ($2.97 per share), reflecting strong balance sheet, diversified business model, and continued loan growth.

• Net interest margin improved for the third consecutive quarter to 3.34%, with net interest income up $4.4 million sequentially to $106.7 million.

• Non-interest income made up 28–30% of total revenues in Q4 2024, up 11.1% year-over-year, with all non-banking businesses achieving record revenue and earnings.

• A $0.34 quarterly dividend was declared for Q1 2025, up 6.3% from the prior year, marking 12 consecutive years of annual dividend increases.

• Regulatory and shareholder approvals for the Evans Bancorp merger were received, with closing targeted for Q2 2025.

Financial highlights

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

• Total deposits rose to $11.6 billion, up $578 million (5.3%) year-over-year, with noninterest bearing deposits comprising 30%.

• Tangible book value per share reached an all-time high of $23.88, up 9.9% year-over-year.

• Fee income (excluding securities gains/losses) was $42.2 million in Q4, up 11.1% year-over-year.

• Operating expenses (excluding merger costs) were $99.8 million, up 4.8% from Q3, mainly due to higher compensation and benefits.

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 cross-sell opportunities.

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

• Well positioned for regional growth, especially in the Upstate NY semiconductor chip corridor.