Regional banking company NBT Bancorp (NASDAQ: NBTB) reported revenue ahead of Wall Street’s expectations in Q3 CY2025, with sales up 26.1% year on year to $186.1 million. Its non-GAAP profit of $1.05 per share was 8.4% 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

Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Over the last five years, NBT Bancorp grew its revenue at a solid 7.6% compounded annual growth rate. Its growth beat the average banking company and shows its offerings resonate with customers, a helpful starting point for our analysis.

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 11.8% over the last two years is above its five-year trend, suggesting its demand was strong and 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 reported robust year-on-year revenue growth of 26.1%, and its $186.1 million of revenue topped Wall Street estimates by 1.6%.

Net interest income made up 69.5% of the company’s total revenue during the last five years, meaning lending operations are NBT Bancorp’s largest source of revenue.

Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.

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Tangible Book Value Per Share (TBVPS)

The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. 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 5% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 11.9% annually over the last two years from $20.39 to $25.51 per share.

Over the next 12 months, Consensus estimates call for NBT Bancorp’s TBVPS to grow by 10.5% to $28.19, solid growth rate.

Key Takeaways from NBT Bancorp’s Q3 Results

It was encouraging to see NBT Bancorp beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $40.85 immediately following the results.

NBT Bancorp had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.