0001140361-26-007179
SEC filingNBT Bancorp Inc. reported strong financial results for FY 2025, with net income of $169.2 million, a 20.3% increase from $140.6 million in FY 2024. This growth was driven by a 25.3% increase in net interest income to $501.5 million, primarily due to higher interest income from loans and securities, partially offset by a slight decrease in interest expense. Noninterest income grew 10.6% to $195.5 million, led by higher retirement plan administration and wealth management fees. The company's total assets increased to $16.00 billion from $13.79 billion, largely due to the acquisition of Evans Bancorp, Inc. in May 2025. Earnings per share were $3.34 (basic) and $3.33 (diluted).
NBT Bancorp Inc. delivered robust financial performance in FY 2025, with net income reaching $169.2 million, a significant increase from $140.6 million in FY 2024. This 20.3% year-over-year growth was primarily fueled by a 25.3% rise in net interest income to $501.5 million, driven by higher yields on earning assets and increased average balances, partially offset by a 1.0% decrease in interest expense. Noninterest income also contributed positively, growing 10.6% to $195.5 million, supported by strong performance in retirement plan administration and wealth management fees. The company's effective tax rate was 22.9% in 2025, compared to 21.6% in 2024. Total assets expanded to $16.00 billion from $13.79 billion, largely due to the Evans acquisition completed in May 2025.
Total interest, fee, and dividend income increased 16.2% to $711.0 million in FY 2025. Interest and fees on loans, the largest component, grew 14.3% to $632.3 million, driven by a higher yield on average loans (5.73% vs. 5.64% in 2024) and an increase in average loan balances. Securities income also rose, with available-for-sale securities contributing $47.0 million. Noninterest income reached $195.5 million, up 10.6% from the prior year. Retirement plan administration fees increased to $61.6 million, wealth management fees grew to $44.8 million, and bank-owned life insurance income rose to $12.4 million. Service charges and card services income also saw modest growth.
The net interest margin on a fully taxable equivalent basis was 3.59% for FY 2025, an improvement of 36 basis points from 3.23% in FY 2024. This expansion resulted from a 16 basis point increase in the yield on average interest-earning assets to 5.09%, coupled with a 27 basis point decrease in the rate paid on interest-bearing deposits to 2.09%. Operating margin, calculated as income before income tax expense divided by total revenue (interest income plus noninterest income), was 30.9%. Noninterest expense increased 17.9% to $445.3 million, primarily due to higher salaries and employee benefits, technology costs, and acquisition expenses related to the Evans transaction.
Net cash provided by operating activities was $235.2 million in FY 2025, up from $188.6 million in the prior year. Investing activities provided $169.1 million, while financing activities used $201.2 million. The company ended the year with cash and cash equivalents of $487.1 million. Total loans reached $11.60 billion, with an allowance for loan losses of $138.0 million (1.19% of loans). Total deposits were $13.50 billion, and stockholders' equity stood at $1.90 billion. The company maintained a strong liquidity position, with a Basic Surplus measurement of 18.7% of total assets.
Management highlighted the successful integration of the Evans acquisition, which contributed to loan and deposit growth. The company continues to focus on organic growth in its core markets while managing interest rate risk and credit quality. Key risk factors include potential economic downturns, changes in interest rates, and competitive pressures. The company's Board authorized an amended stock repurchase program in October 2025, allowing for the repurchase of up to 2 million shares by December 2027. Capital ratios remain above regulatory well-capitalized thresholds, providing flexibility for future growth and capital management.