In This Article:
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Operating Return on Assets: 1.11% for the first quarter.
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Return on Equity: 10% for the first quarter.
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Return on Tangible Common Equity (ROTCE): 14% for the first quarter.
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Net Income: $36.7 million or $0.77 per share.
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Operating Earnings per Share: $0.80, excluding merger costs and securities losses.
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Revenue Growth: 4.4% from the prior quarter and almost 12% from the first quarter of the prior year.
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Tangible Book Value per Share: $24.74 as of March 31, up $0.86 from the end of the fourth quarter of 2024.
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Total Loan Portfolio: $10 billion, with 53% commercial and 47% consumer loans.
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Total Deposits: $11.7 billion, up $162 million from the linked fourth quarter.
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Net Interest Margin: Increased 10 basis points to 3.44% from the linked fourth quarter.
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Net Interest Income: $107.2 million, an increase of $1.1 million from the linked fourth quarter.
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Loan Yields: Decreased 3 basis points to 5.62% from the prior quarter.
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Total Operating Expenses: $98.7 million, a 1.1% decrease from the linked fourth quarter.
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Net Charge-offs to Average Loans: 27 basis points in the first quarter.
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Reserve Coverage: 1.17% of total loans.
Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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NBT Bancorp Inc (NASDAQ:NBTB) reported a strong operating return on assets of 1.11% and a return on equity of 10% for the first quarter of 2025.
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The company achieved a 4th consecutive quarter of improved net interest margin by growing earning assets and lowering funding costs.
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Non-interest income made up 31% of total revenues, with significant contributions from non-banking businesses.
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NBT Bancorp Inc (NASDAQ:NBTB) added over $100 million to shareholders' equity in the past 15 months while maintaining a higher level of dividends.
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The merger with Evans Bank Corp is expected to enhance NBT Bancorp Inc (NASDAQ:NBTB)'s ability to provide financial services in the growing semiconductor and advanced electronics manufacturing ecosystem.
Negative Points
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Loan yields decreased by 3 basis points due to the re-pricing of $2.1 billion in variable rate loans.
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Net charge-offs to average loans increased to 27 basis points, including a $2.1 million write-down of a commercial real estate loan.
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The company experienced modest loan growth in the first quarter, with macro uncertainties affecting customer project timelines.
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The residential mortgage segment did not perform well, with home sales not being robust in the first part of the year.
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The company anticipates a slower loan growth rate of 2% to 3% due to macroeconomic uncertainties.