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NBT Bancorp (NBTB)
NASDAQ:NBTB
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NBT Bancorp
(NASDAQ:NBTB)
73Outperform
Positive Factors
Growth prospects
Investments in semiconductor chip manufacturing plants in Upstate NY provide a favorable growth backdrop for NBTB.
Profitability
Forecasts indicate a high projected profitability with a ~1.40% ROA in 2026, among the highest on the coverage list.
Negative Factors
Valuation concerns
The bank's high-quality deposit book is highlighted by an all-in cost of 2.02%, contributing to its premium multiple valuation.
NBT Bancorp (NBTB) vs. S&P 500 (SPY)
Market Cap
$2.02B
Dividend Yield3.09%
Average Volume (3M)184.98K
Price to Earnings (P/E)14.4
Beta (1Y)0.86
Revenue Growth18.58%
EPS Growth11.39%
CountryUS
Employees2,034
SectorFinancial
Sector Strength81
IndustryBanking
Share Statistics
EPS (TTM)2.96
Shares Outstanding47,253,790
10 Day Avg. Volume247,966
30 Day Avg. Volume184,982
Financial Highlights & Ratios
PEG Ratio1.26
Price to Book (P/B)N/A
Price to Sales (P/S)3.52
Price to Cash Flow (P/CF)10.30
P/FCF Ratio5.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$54.00Price Target Upside27.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
NBT Bancorp Business Overview & Revenue Model
Company DescriptionNBT Bancorp Inc. (NBTB) is a financial holding company headquartered in Norwich, New York. The company primarily operates through its subsidiary, NBT Bank, N.A., which provides a range of banking services and financial products to individuals, businesses, and municipalities in the Northeastern United States. The bank offers personal banking solutions, including checking and savings accounts, mortgages, personal loans, and credit cards, as well as business banking services such as commercial loans, cash management, and merchant services.
How the Company Makes MoneyNBT Bancorp Inc. generates revenue primarily through interest income from its lending activities and fees from its various banking services. The company's key revenue streams include interest earned on loans and securities, service charges on deposit accounts, trust and investment services, and fees from card services. Interest income is a significant contributor, driven by the net interest margin, which is the difference between interest earned on loans and securities and the interest paid on deposits and borrowings. NBT Bancorp also benefits from non-interest income, which includes fees from financial advisory services, insurance, and other ancillary financial services. The company's strategic partnerships and regional focus help it maintain a strong customer base, driving consistent revenue growth.
NBT Bancorp Financial Statement Overview
Summary
NBT Bancorp exhibits strong financial health with impressive revenue growth and profitability metrics, supported by a solid balance sheet with decreasing leverage. Cash flows are stable but show modest growth, indicating room for improvement in capital expenditure efficiency.Income Statement
NBT Bancorp has shown a consistent growth trajectory in revenue over the years. The revenue grew from $490.37M in 2023 to $611.67M in 2024, reflecting a healthy growth rate. Gross profit margin remains robust at 100% due to the banking nature of the business. The net profit margin improved from 24.23% in 2023 to 22.99% in 2024, indicating efficient cost management despite a slight decrease. The EBIT margin has significantly increased, showcasing operational efficiency enhancements.78
Positive
Balance Sheet
The balance sheet of NBT Bancorp is strong with a favorable debt-to-equity ratio, decreasing from 0.38 in 2023 to 0.13 in 2024, indicating reduced leverage risk. The return on equity (ROE) is solid at 9.21% in 2024, although slightly lower than 2023's 8.33%, reflecting effective use of equity. The equity ratio has slightly decreased, indicating a balanced approach between debt and equity financing.82
Very Positive
Cash Flow
The cash flow statements of NBT Bancorp show a stable free cash flow with a slight increase from $148.20M in 2023 to $188.57M in 2024. The operating cash flow to net income ratio is strong, indicating the company's ability to generate cash relative to its net income. However, the free cash flow growth rate has been modest, suggesting limited efficiency improvements in capital expenditures.74
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 611.67M | 490.37M | 515.12M | 475.97M | 458.66M | Gross Profit |
| 611.67M | 490.37M | 515.12M | 475.97M | 458.66M | EBIT |
| 532.57M | 201.98M | 218.04M | 199.86M | 133.09M | EBITDA |
| 0.00 | 175.73M | 215.22M | 219.74M | 153.64M | Net Income Common Stockholders |
| 140.64M | 118.78M | 152.00M | 154.88M | 104.39M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.78B | 1.60B | 1.72B | 2.96B | 2.02B | Total Assets |
| 13.79B | 13.31B | 11.74B | 12.01B | 10.93B | Total Debt |
| 192.59M | 543.74M | 787.95M | 311.48M | 406.73M | Net Debt |
| -12.50M | 338.55M | 590.60M | -957.60M | -265.95M | Total Liabilities |
| 12.26B | 11.88B | 10.57B | 10.76B | 9.75B | Stockholders Equity |
| 1.53B | 1.43B | 1.17B | 1.25B | 1.19B |
| Cash Flow | Free Cash Flow | |||
| 188.57M | 148.20M | 176.21M | 149.90M | 134.25M | Operating Cash Flow |
| 188.57M | 157.46M | 183.22M | 157.63M | 142.41M | Investing Cash Flow |
| -399.16M | -44.23M | -926.22M | -546.06M | -709.73M | Financing Cash Flow |
| 289.46M | -105.39M | -328.73M | 984.81M | 1.02B |
NBT Bancorp Technical Analysis
Negative
42.51
Price Trends
46.68
Negative
47.29
Negative
44.68
Negative
Market Momentum
-1.22
Positive
26.29
Positive
4.53
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBTB, the sentiment is Negative. The current price of 42.51 is below the 20-day moving average (MA) of 45.83, below the 50-day MA of 46.68, and below the 200-day MA of 44.68, indicating a bearish trend. The MACD of -1.22 indicates Positive momentum. The RSI at 26.29 is Positive, neither overbought nor oversold. The STOCH value of 4.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NBTB.
NBT Bancorp Risk Analysis
NBT Bancorp disclosed 26 risk factors in its most recent earnings report. NBT Bancorp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NBT Bancorp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.02B | 14.39 | 9.53% | 3.09% | 18.58% | 11.39% | |
73 Outperform | $3.60B | 16.85 | 14.16% | 1.64% | 12.93% | 1.40% | |
65 Neutral | $842.74M | 10.64 | 9.62% | 2.70% | 17.70% | 3.88% | |
64 Neutral | $1.68B | 14.51 | 16.49% | 2.63% | 11.10% | 3.74% | |
64 Neutral | $2.92B | 11.32 | 10.41% | 1.20% | 10.71% | 0.54% | |
63 Neutral | $13.85B | 10.47 | 9.22% | 4.23% | 17.31% | -7.79% | |
61 Neutral | $4.87B | 12.37 | 7.62% | 4.32% | 6.80% | 1.48% |
* Financial Sector Average
Performance Comparison
NBTB
NBT Bancorp
42.51
10.26
31.81%
BANF
BancFirst
109.24
25.18
29.95%
CHCO
City Holding Company
115.07
18.06
18.62%
UBSI
United Bankshares
34.03
1.86
5.78%
WSFS
Wsfs Financial
50.62
9.78
23.95%
FMBH
First Mid-Illinois Bancshares
34.98
6.06
20.95%
NBT Bancorp Earnings Call Summary
Earnings Call Date: Jan 27, 2025 | % Change Since: -12.08% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook for NBT Bancorp, highlighting strong growth in non-interest income, record tangible book value, increased dividends, strategic expansion through the Evans Bancorp merger, and positive trends in net interest margin. However, there were challenges such as decreased loan yields, increased non-performing assets, higher operating expenses, and an uptick in net charge-offs.Highlights
Growth in Non-Interest Income
Non-interest income made up 30% of total revenues for 2024. Each non-banking business achieved record revenue and earnings generation, with a five-year compounded annual growth rate of 9%.
Record Tangible Book Value
Tangible book value per share reached an all-time high of $23.88 as of December 31st, up $0.05 from the previous quarter.
Increase in Shareholder Dividends
A quarterly cash dividend of $0.34 was declared, which is a 6.3% increase from the prior year's dividend, marking the 12th consecutive year of annual dividend increases.
Strategic Merger with Evans Bancorp
Merger with Evans Bancorp is expected to expand NBT's footprint into Western New York and position NBT as the community bank with the largest deposit market share in Upstate New York.
Positive Net Interest Margin Trends
Net interest margin increased to 3.34%, up 7 basis points from the prior quarter, driven by a decrease in deposit costs and a favorable funding mix.
Lowlights
Decrease in Loan Yields
Fourth quarter loan yields declined by 9 basis points due to a decrease in short-term rates affecting approximately $2.1 billion of loans.
Increase in Non-Performing Assets
Non-performing assets increased by $14.4 million, attributed to a commercial real estate relationship being placed into non-accrual status.
Higher Operating Expenses
Total operating expenses increased by 4.8% from the previous quarter, driven by higher health and welfare costs and increased performance-based incentive compensation.
Increase in Net Charge-Offs
Net charge-offs rose to 23 basis points from 16 basis points in the prior quarter, primarily driven by two commercial relationships totaling $2.4 million.
Company Guidance
During the fourth quarter and full year 2024, NBT Bancorp demonstrated strong operating performance, highlighted by a series of positive financial metrics. The company experienced a 3.3% increase in total loans, with commercial and consumer loans contributing to the growth. Net interest margin improved for the third consecutive quarter, reaching 3.34%, driven by a favorable funding mix and decreased deposit costs. Non-interest income accounted for 30% of total revenues, with growth in retirement plan administration, wealth management, and insurance agency lines. NBT declared a $0.34 quarterly dividend, marking a 6.3% increase from the previous year, continuing its 12-year streak of annual dividend increases. Additionally, NBT added $100 million to shareholders' equity, demonstrating robust earnings generation despite higher dividend payouts. The company also announced progress in its strategic merger with Evans Bancorp, aiming to close the transaction in the second quarter of 2025, which will expand NBT's presence in Western New York and position it as a leading community bank in Upstate New York.NBT Bancorp Corporate Events
Business Operations and Strategy
NBT Bancorp Unveils New Investor Presentation Strategy
Positive
Feb 12, 2025
On February 12, 2025, NBT Bancorp Inc. announced that its executive management team plans to use a new presentation in future meetings with investors and analysts. The presentation is available on the company’s website, indicating a proactive approach to engaging with stakeholders and enhancing investor relations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.