Regional banking company NBT Bancorp (NASDAQ: NBTB) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 21.9% year on year to $171.2 million. Its GAAP profit of $0.44 per share was 26.8% above analysts’ consensus estimates.

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The Company completed the acquisition of Evans Bancorp, Inc. (“Evans”) on May 2, 2025, adding 200 employees and 18 banking locations in Western New York, $1.67 billion in loans and $1.86 billion in deposits.

Company Overview

Tracing its roots back to 1856 when it first opened its doors in Norwich, New York, NBT Bancorp (NASDAQ: NBTB) is a community-oriented financial institution providing banking, wealth management, and insurance services to individuals and businesses across the northeastern United States.

Sales Growth

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions.

Luckily, NBT Bancorp’s revenue grew at a decent 6.2% compounded annual growth rate over the last five years. Its growth was slightly above the average bank company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. NBT Bancorp’s annualized revenue growth of 10.1% over the last two years is above its five-year trend, suggesting its demand recently accelerated. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, NBT Bancorp’s year-on-year revenue growth of 21.9% was excellent, and its $171.2 million of revenue was in line with Wall Street’s estimates.

Net interest income made up 69.6% of the company’s total revenue during the last five years, meaning lending operations are NBT Bancorp’s largest source of revenue.

Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.

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Tangible Book Value Per Share (TBVPS)

Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.

When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.

NBT Bancorp’s TBVPS grew at a mediocre 4.8% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 6.8% annually over the last two years from $21.55 to $24.57 per share.

Over the next 12 months, Consensus estimates call for NBT Bancorp’s TBVPS to grow by 8.5% to $26.66, decent growth rate.

Key Takeaways from NBT Bancorp’s Q2 Results

We were impressed by how significantly NBT Bancorp blew past analysts’ EPS expectations this quarter. We were also glad its tangible book value per share outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $41.47 immediately after reporting.

Is NBT Bancorp an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.