The latest financial quarter has shown moderate growth in key figures, with net interest income reaching $107.2 million on a fully taxable equivalent basis. This marks an increase of $1.1 million compared to the previous quarter, highlighting a steady rise in profitability.
As of March 31, total loans stood at $9.98 billion. This represents a small yet notable increase of $10.4 million, or an annualized growth rate of 0.4%, since the end of December 2024.
Moreover, the company's deposits have grown significantly over the same period. As of the end of March, total deposits reached $11.71 billion, marking an increase of $161.8 million, or 1.4%, from December 31, 2024. This upsurge in deposits reflects enhancing customer confidence and strengthening financial stability.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for NBT Bancorp Inc (NBTB, Financial) is $51.40 with a high estimate of $57.00 and a low estimate of $45.00. The average target implies an upside of 21.34% from the current price of $42.36. More detailed estimate data can be found on the NBT Bancorp Inc (NBTB) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, NBT Bancorp Inc's (NBTB, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for NBT Bancorp Inc (NBTB, Financial) in one year is $50.61, suggesting a upside of 19.48% from the current price of $42.36. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the NBT Bancorp Inc (NBTB) Summary page.
NBTB Key Business Developments
Release Date: January 28, 2025
- Net Income: $36 million for the fourth quarter, or $0.76 per share.
- Operating Earnings Per Share: $0.77, excluding merger costs and securities gains.
- Tangible Book Value Per Share: $23.88 as of December 31, up $0.05 from the previous quarter.
- Total Loans: Increased by $319 million for the year, a 3.3% growth.
- Loan Portfolio: $10 billion, with 53% commercial and 47% consumer loans.
- Total Deposits: $11.6 billion, up $578 million or 5.3% from December 2023.
- Net Interest Margin: 3.34% for the fourth quarter, up 7 basis points from the prior quarter.
- Net Interest Income: Increased by $4.4 million from the linked third quarter.
- Fee Income: $42.2 million, an 11.1% increase compared to the fourth quarter of 2023.
- Total Operating Expenses: $99.8 million for the quarter, a 4.8% increase from the linked third quarter.
- Loan Loss Provision Expense: $2.2 million, $700,000 lower than the prior quarter.
- Net Charge-Offs: 23 basis points in the fourth quarter, compared to 16 basis points in the prior quarter.
- Non-Performing Assets: Increased by $14.4 million from the prior quarter.
- Reserve Coverage: 1.16% of total loans, covering more than 2 times the level of nonperforming loans.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NBT Bancorp Inc (NBTB, Financial) reported a strong operating performance for the fourth quarter and full year 2024, reflecting a robust balance sheet and diversified business model.
- The company achieved a 6.3% increase in its quarterly cash dividend, marking the 12th consecutive year of annual dividend increases.
- Non-interest income made up 30% of total revenues for 2024, with each non-banking business achieving record revenue and earnings.
- The merger with Evans Bancorp is expected to expand NBTB's geographic footprint into Western New York, enhancing its market presence.
- NBTB's net interest margin improved for the third consecutive quarter, driven by lower funding costs and a favorable funding mix.
Negative Points
- Fourth quarter loan yields declined by 9 basis points due to a decrease in short-term rates, impacting overall earnings.
- Operating expenses increased by 4.8% in the fourth quarter, primarily due to higher salaries and employee benefits.
- Net charge-offs to total loans increased to 23 basis points, driven by two commercial relationships.
- Non-performing assets increased by $14.4 million, attributed to a commercial real estate relationship placed into non-accrual status.
- The loan loss reserve coverage ratio decreased, influenced by the runoff of certain consumer portfolios and specific charge-offs.
