NBT Bancorp Reports $36.7 Million Net Income in Q1 2025, Acquires Evans Bancorp

NBT Bancorp Inc. reported a net income of $36.7 million for the first quarter of 2025, reflecting an increase of $2.9 million compared to the same period in 2024. The diluted earnings per share rose to $0.77, up from $0.71 a year earlier. The company's net interest income for the quarter was $107.2 million, a 12.7% increase from $95.2 million in the first quarter of 2024. This growth was attributed to a rise in interest income from loans and securities, despite a slight decrease in the yield on average interest-earning assets.

In terms of financial position, total assets increased to $13.86 billion as of March 31, 2025, compared to $13.79 billion at the end of 2024. Total loans remained stable at $9.98 billion, with a modest increase of $10.4 million from the previous quarter. The allowance for credit losses was $117 million, representing 1.17% of total loans, slightly up from 1.16% at the end of 2024. The company recorded a provision for loan losses of $7.6 million, which was higher than the $5.6 million recorded in the first quarter of 2024, reflecting a cautious approach amid changing economic conditions.

Strategically, NBT Bancorp completed the acquisition of Evans Bancorp, Inc. on May 2, 2025, for approximately $222 million in stock. This acquisition is expected to enhance NBT's market presence, particularly in Western New York, where Evans operates 18 banking locations. The company incurred $1.2 million in acquisition-related expenses during the first quarter of 2025. Additionally, NBT has been focusing on expanding its wealth management and retirement plan administration services, which contributed to a 12.7% increase in noninterest income to $47.5 million compared to the previous quarter.

Operationally, NBT Bancorp reported a total deposit increase of $161.8 million, or 1.4%, from the end of 2024, bringing total deposits to $11.71 billion. The loan-to-deposit ratio stood at 85.2% as of March 31, 2025. The company also noted a slight increase in nonperforming loans, which totaled $47.7 million, or 0.48% of total loans, down from 0.52% at the end of 2024. The allowance for credit losses was 245.33% of nonperforming loans, indicating a strong coverage ratio.

Looking ahead, NBT Bancorp anticipates continued growth in net interest income, driven by its strategic initiatives and the integration of Evans Bancorp. The company remains vigilant in monitoring economic conditions and adjusting its credit loss provisions accordingly. Management expects that the trajectory of net interest income will depend significantly on the timing and path of interest rates, which are influenced by inflationary pressures and Federal Reserve monetary policy.