NBT Bancorp Inc. Announces Second Quarter 2025 Net Income and Approves an 8.8% Cash Dividend Increase

Core Insights - NBT Bancorp Inc. reported a net income of $22.5 million for Q2 2025, a decrease from $32.7 million in Q2 2024 and $36.7 million in Q1 2025, with diluted earnings per share at $0.44 [2][3] - The company completed the acquisition of Evans Bancorp, significantly impacting financial results, adding $1.67 billion in loans and $1.86 billion in deposits [3][25] - The net interest margin improved to 3.59%, up 15 basis points from the previous quarter, driven by higher earning asset yields and acquisition-related net accretion [4][11] Financial Performance - Operating diluted earnings per share for Q2 2025 was $0.88, up 28% from Q2 2024 and 10% from Q1 2025 [2][4] - Net interest income for Q2 2025 was $124.2 million, an increase of $17.0 million from Q1 2025 and $27.0 million from Q2 2024 [11][12] - Noninterest income was $46.8 million, accounting for 27% of total revenues, showing a slight decrease from Q1 2025 but an increase from Q2 2024 [12][13] Asset Quality - Total loans reached $11.62 billion as of June 30, 2025, including $1.67 billion from the Evans acquisition, with a net charge-off rate of 0.09% annualized [11][35] - Nonperforming loans to total loans ratio was 0.40%, and the allowance for loan losses was 1.21% of total loans [11][35] - The provision for loan losses was $17.8 million, including $13.0 million related to the acquisition [12][15] Capital and Dividends - Stockholders' equity was $1.81 billion, with a tangible book value per share of $24.57 as of June 30, 2025 [6][24] - The company announced a dividend increase of 8.8% to $0.37 per share, marking the thirteenth consecutive year of dividend increases [4][18] - The CET1 capital ratio stood at 11.37%, with a leverage ratio of 9.55% [24][6] Acquisition Impact - The acquisition of Evans Bancorp added 200 employees and 18 banking locations, enhancing the company's market presence in Western New York [3][25] - The transaction involved issuing 5.1 million shares valued at $221.8 million, resulting in $91.4 million in goodwill [3][25] - The integration of Evans is expected to provide long-term benefits through improved customer relationships and operational efficiencies [4][25]