NORWICH, N.Y. - NBT Bancorp Inc . (NASDAQ: NASDAQ:NBTB), a financial holding company, announced its financial results for the third quarter ending September 30, 2024. The company reported a net income of $38.1 million, or $0.80 per diluted common share, marking a significant increase from $24.6 million, or $0.54 per diluted common share, in the same period last year. This growth is attributed to the acquisition of Salisbury Bancorp (NASDAQ:SAL), Inc. on August 11, 2023, which expanded NBT's presence with 13 additional banking offices, and bolstered its loans and deposits portfolios.
The net interest income on a fully taxable equivalent (FTE) basis grew to $102.3 million, up from the previous quarter, with a net interest margin (NIM) of 3.27%. Noninterest income reached a record $45.3 million, excluding net securities gains (losses), accounting for 30.8% of total revenues. Total loans increased to $9.91 billion, a rise of $256.3 million since December 31, 2023, while deposits grew to $11.59 billion, a 5.6% increase from the end of the previous year.
Credit quality remained strong, with net charge-offs to average loans at 0.16% and nonperforming loans to total loans at 0.38%. The allowance for loan losses stood at 1.21% of total loans. The company's capital position also strengthened, with stockholders' equity at $1.52 billion and a tangible book value per share of $23.83. NBT Bancorp's CET1 ratio was 11.86%, and the leverage ratio was 10.29%.
In September 2024, NBT entered into an agreement to merge with Evans Bancorp (NYSE:EVBN), Inc., expecting the merger to close in the second quarter of 2025, pending regulatory and shareholder approvals. This move aims to extend NBT's footprint into the Buffalo and Rochester communities.
NBT Bancorp also declared a fourth-quarter cash dividend of $0.34 per share, representing a 6.3% increase from the previous year's dividend, and continued its stock repurchase program, buying back 7,600 shares at an average price of $33.02 per share.
The reported figures are based on a press release statement and reflect the company's commitment to growth through strategic acquisitions and robust financial management.
InvestingPro Insights
NBT Bancorp's strong financial performance in the third quarter of 2024 is further supported by data from InvestingPro. The company's market capitalization stands at $2.14 billion, reflecting its solid position in the financial sector. With a P/E ratio of 17.32, NBT Bancorp is trading at a reasonable valuation compared to industry peers.
InvestingPro Tips highlight NBT Bancorp's commitment to shareholder returns. The company has maintained dividend payments for an impressive 39 consecutive years and has raised its dividend for 11 consecutive years. This aligns with the reported 6.3% increase in the fourth-quarter cash dividend mentioned in the article. The current dividend yield of 3.12% offers an attractive income stream for investors.
The company's profitability is underscored by its positive earnings over the last twelve months, with a basic EPS of $2.61. This is consistent with the reported net income growth in the article. Additionally, NBT Bancorp's revenue growth of 4.73% over the last twelve months and a more substantial 11.9% growth in the most recent quarter indicate a healthy trajectory, supporting the company's expansion strategy through acquisitions like Salisbury Bancorp and the planned merger with Evans Bancorp.
It's worth noting that NBT Bancorp's stock has shown strong performance, with a 36.22% total return over the past year. This appreciation, combined with the consistent dividend growth, contributes to a high shareholder yield, as noted in the InvestingPro Tips.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 11 more InvestingPro Tips available for NBT Bancorp, providing a deeper understanding of the company's financial health and market position.
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