In This Article:
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Net Income: $36 million for the fourth quarter, or $0.76 per share.
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Operating Earnings Per Share: $0.77, excluding merger costs and securities gains.
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Tangible Book Value Per Share: $23.88 as of December 31, up $0.05 from the previous quarter.
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Total Loans: Increased by $319 million for the year, a 3.3% growth.
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Loan Portfolio: $10 billion, with 53% commercial and 47% consumer loans.
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Total Deposits: $11.6 billion, up $578 million or 5.3% from December 2023.
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Net Interest Margin: 3.34% for the fourth quarter, up 7 basis points from the prior quarter.
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Net Interest Income: Increased by $4.4 million from the linked third quarter.
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Fee Income: $42.2 million, an 11.1% increase compared to the fourth quarter of 2023.
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Total Operating Expenses: $99.8 million for the quarter, a 4.8% increase from the linked third quarter.
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Loan Loss Provision Expense: $2.2 million, $700,000 lower than the prior quarter.
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Net Charge-Offs: 23 basis points in the fourth quarter, compared to 16 basis points in the prior quarter.
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Non-Performing Assets: Increased by $14.4 million from the prior quarter.
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Reserve Coverage: 1.16% of total loans, covering more than 2 times the level of nonperforming loans.
Release Date: January 28, 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 performance for the fourth quarter and full year 2024, reflecting a robust balance sheet and diversified business model.
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The company achieved a 6.3% increase in its quarterly cash dividend, marking the 12th consecutive year of annual dividend increases.
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Non-interest income made up 30% of total revenues for 2024, with each non-banking business achieving record revenue and earnings.
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The merger with Evans Bancorp is expected to expand NBTB's geographic footprint into Western New York, enhancing its market presence.
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NBTB's net interest margin improved for the third consecutive quarter, driven by lower funding costs and a favorable funding mix.
Negative Points
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Fourth quarter loan yields declined by 9 basis points due to a decrease in short-term rates, impacting overall earnings.
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Operating expenses increased by 4.8% in the fourth quarter, primarily due to higher salaries and employee benefits.
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Net charge-offs to total loans increased to 23 basis points, driven by two commercial relationships.
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Non-performing assets increased by $14.4 million, attributed to a commercial real estate relationship placed into non-accrual status.
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The loan loss reserve coverage ratio decreased, influenced by the runoff of certain consumer portfolios and specific charge-offs.