NBT Bancorp Inc. (NASDAQ: NBTB), a billion regional banking company, just released its Q2 2025 results, highlighting solid earnings and a notable bonus for shareholders: an 8.8% quarterly dividend increase, marking their 13th consecutive year of dividend growth.
NTB’s net income (GAAP): $22.5 million, or $0.44 per diluted share, down from $32.7 million ($0.69/share) a year earlier and $36.7 million ($0.77/share) in Q1 2025. Meanwhile, their operating (non‑GAAP) earnings per share is $0.88, up from $0.69 in Q2 2024 and $0.80 in Q1 2025, which shows an underlying momentum.
A major driver is the Evans Bancorp merger, finalized May 2, 2025. It added 18 branches, 200 employees, $1.67B in loans, and $1.86B in deposits to NBT’s footprint, though it also diluted near-term GAAP earnings due to merger costs.
NBT’s board approved a $0.37 per share cash dividend for Q3, meaning a consecutive 8.8% raise versus last year’s payout. This marks 13 straight years of dividend increases, underscoring the company’s commitment to shareholder returns.
Analysts note that between 2020 and 2025, NBT raised its annual dividend from $1.08 to $1.36 per share, delivering a compound annual growth rate (CAGR) of 4.4%, while maintaining a payout ratio around 44.7%, which is just under the sector average.
Despite softer GAAP earnings due to merger-related charges, NBT’s operating earnings and expanding financial base suggest solid execution and future upside.
Its growing footprint via the Evans merger supports future scaling. And an obviously strong dividend discipline means more reliable income, while its non‑GAAP EPS growth signals underlying momentum beyond acquisition noise.
That said, merger-related dilution and integration risks pose near-term challenges, and GAAP earnings may stay pressure-cooked until Evans is fully settled.
NBT’s performance and consistent dividend policy make it a standout among small-cap finance companies in North America. With a well-managed merger and continued profitability, it’s increasingly visible to yield-seeking investors and income-focused ETFs.
Add to that the fact that NBT was recently added to the Russell 2000 Growth‑Defensive Index, and you’ve got a regional bank that’s quietly climbing bigger lists.
NBT Bancorp’s Q2 results highlight a critical pivot point: transitional GAAP figures during M&A, but healthy operating earnings and strong dividend growth reinforce the bank’s fundamentals. For investors focused on small-cap dividend growers or regional banks anchoring long-term returns, NBT is continuing to deliver.
