NBTB Financial Analysis

Analysis Date: 1/28/2025

Business Model

NBT Bancorp generates revenue primarily through net interest income from loans and deposits, as well as fee-based income from various financial services

Revenue Sources

• Net interest income (69% of total revenue in Q3 2024)
• Noninterest income including retirement plan administration, wealth management, insurance and banking fees (31% of total revenue)

Revenue Distribution by Channel

• 155 banking locations across NY, PA, VT, MA, NH, ME and CT

Income Statement Analysis

• Net interest income increased 4.6% QoQ driven by higher loan yields and improved funding mix
• Noninterest income grew 5.9% QoQ reaching record level of $45.3M
• Net income increased 16.4% QoQ to $38.1M

Balance Sheet Analysis

• Total assets grew 2.5% QoQ to $13.84B
• Loans increased 0.5% QoQ to $9.91B
• Deposits grew 2.8% QoQ to $11.59B

Cash Flow Analysis

• Strong operating cash flow driven by earnings growth
• Lower provision expense improved cash generation

Capital Allocation

NBT maintains strong capital levels with total risk-based capital of 15.02%. The company declared a quarterly dividend of $0.34 per share, representing a 6.3% increase from prior year. Management focuses on organic growth while pursuing strategic acquisitions like the pending Evans Bancorp merger.

Management Commentary

Sequential growth in net interest income and margin for second consecutive quarter

Strong performance from diverse mix of fee businesses

Evans merger expected to close in Q2 2025 pending approvals

Overall Sentiment: Positive with focus on execution and strategic growth

Recommendation

Rating: Buy

Reason for Rating: Strong fundamentals, improving profitability trends and strategic growth initiatives support positive outlook

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/28/2025, 5:22:34 AM