NBT Bancorp (US:NBTB)2025-11-07 21:01Financial Performance - Net income for Q3 2025 was $54.5 million, an increase of $32.0 million from Q2 2025 and $16.4 million from Q3 2024[152]. - Diluted earnings per share for Q3 2025 were $1.03, up $0.59 from Q2 2025 and up $0.23 from Q3 2024[152]. - Operating net income for Q3 2025 was $55.3 million, or $1.05 per diluted common share, compared to $0.88 per diluted common share for Q2 2025 and $0.80 for Q3 2024[153]. - Net income for the nine months ended September 30, 2025 was $113.7 million, or $2.26 per diluted common share, up from $104.6 million, or $2.21 per diluted common share for the same period in 2024[152]. - Operating net income for the nine months ended September 30, 2025 was $138.7 million, or $2.76 per diluted common share, an increase from $103.1 million, or $2.17 per diluted common share for the same period in 2024[153]. Acquisition Details - Total consideration for the acquisition of Evans Bancorp was $221.8 million in stock, enhancing the Company's presence in Western New York[149]. - The acquisition included approximately $130.4 million of identifiable net assets, $1.67 billion of loans, and $1.86 billion in deposits[149]. - The company completed the acquisition of Evans on May 2, 2025, which contributed significantly to the growth in loans and deposits[156]. - The company incurred acquisition expenses of $1.1 million and $19.5 million for Q3 and the nine months ended September 30, 2025, respectively[150]. Interest Income and Margin - For the three months ended September 30, 2025, net interest income was $134.7 million, an increase of $10.4 million, or 8.4%, from the previous quarter and up $33.0 million, or 32.5%, from the same quarter in 2024[156]. - Net interest income for the nine months ended September 30, 2025, was $366.1 million, an increase of $72.1 million, or 24.5%, compared to the same period in 2024[162]. - The net interest margin (FTE) for the three months ended September 30, 2025, was 3.66%, an increase of 7 basis points from the previous quarter[160]. - The FTE NIM for the nine months ended September 30, 2025, was 3.57%, up 37 basis points from the same period in 2024[162]. Loan and Deposit Growth - Total loans at the end of the period were $11.60 billion, an increase of $1.63 billion from December 31, 2024, including $1.67 billion of loans acquired from Evans[156]. - Total deposits at the end of the period were $13.66 billion, up $2.11 billion from December 31, 2024, including $1.86 billion in deposits acquired from Evans[156]. - Average deposits increased by $1.47 billion, or 13.2%, from the same period last year due to the acquisition of $1.86 billion in deposits from Evans[208]. Noninterest Income and Expenses - Noninterest income, excluding securities gains, was $51.4 million for the three months ended September 30, 2025, up $4.6 million, or 9.8%, from the previous quarter[156]. - Noninterest income for Q3 2025 was $51.4 million, an increase of $4.5 million, or 9.5%, from the prior quarter and up $5.6 million, or 12.3%, from Q3 2024[173]. - Noninterest expense for Q3 2025 was $111.1 million, down $11.5 million, or 9.4%, from the prior quarter but up $15.4 million, or 16.1%, from Q3 2024[178]. - Noninterest expense for the nine months ended September 30, 2025 was $333.7 million, up $56.5 million, or 20.4%, from the same period in 2024[181]. Credit Quality and Allowance for Losses - The allowance for credit losses totaled $139.0 million at September 30, 2025, compared to $119.5 million at September 30, 2024, with the allowance as a percentage of loans at 1.20%[200]. - The provision for loan losses was $3.1 million for the three months ended September 30, 2025, a decrease from $17.8 million in the prior quarter[202]. - Total nonperforming assets were $53.7 million at September 30, 2025, compared to $51.8 million at December 31, 2024, and $37.4 million at September 30, 2024[206]. - Nonperforming loans at September 30, 2025, were $53.4 million or 0.46% of total loans, compared with $51.6 million or 0.52% at December 31, 2024[206]. Tax and Regulatory Information - The effective tax rate for Q3 2025 was 24.2%, compared to 26.7% for the prior quarter and 21.9% for Q3 2024[183]. - Income tax expense for the nine months ended September 30, 2025 was $36.0 million, an increase of $6.8 million from the same period in 2024, with an effective tax rate of 24.1%[184]. Economic Outlook and Liquidity - The Company’s baseline economic outlook predicts Northeast unemployment to rise from 4.4% in Q4 2025 to 4.8% by the end of the forecast period[146]. - The Company’s liquidity management focuses on avoiding fluctuations in net interest margins during changing economic conditions[230]. - The Company has additional borrowing capacity from the FHLB of approximately $1.98 billion as of September 30, 2025[232]. - The Company’s liquidity position may be adversely impacted by potential deposit declines due to alternative yield opportunities for depositors[233].