NBT Bancorp: A Dividend Powerhouse With Regional Banking Dominance

In a world where banks are either too big to innovate or too small to survive, NBT Bancorp (NBT) is quietly building a fortress of consistent dividends, geographic dominance, and strategic brilliance. Let’s dive into why this regional banking star is a must-own for income seekers and growth investors alike.

The Dividend Machine Chugging Ahead

NBT isn’t just paying dividends—it’s growing them aggressively. Just last month, the board approved a $0.34 per share dividend for Q2 2025, a 6.3% boost over last year’s payout. This marks the latest in a string of hikes: from $0.30 in 2023 to $0.32 in 2024, and now $0.34. With a yield of 2.8%, this isn’t a stagnant play—it’s a rising tide for income investors.

But here’s the kicker: NBT’s dividend is backed by rock-solid finances. Its CET1 capital ratio (a key measure of financial strength) stands at 12.12%, well above the 7% minimum required by regulators. That’s a war chest of safety, allowing the bank to keep rewarding shareholders while weathering any economic storm.

The Financial Fortification: Assets, Profits, and Prudent Risk

NBT’s balance sheet is a masterclass in stability. Total assets hit $13.86 billion as of March 2025, up from $13.79 billion just a quarter earlier. Net income for Q1 2025 surged to $36.7 million, a 8.6% jump over the same period in ?2024. Even better, the bank’s nonperforming loans remain minuscule at just 0.48% of total loans, proving management’s discipline in risk management.

Strategic Moves That Will Pay Off

NBT isn’t just sitting on its laurels—it’s aggressively expanding. The recently completed merger with Evans Bancorp in May 2025 adds $2.19 billion in assets and 18 branches, instantly boosting its footprint in key markets like Buffalo and Rochester. This isn’t just about scale—it’s about owning the customer relationships in regions where NBT was previously underserved.

The merger’s completion also clears the way for operational synergies, cutting costs and boosting efficiency. And with $1.57 billion in stockholders’ equity, NBT has the capital to fuel further acquisitions or share buybacks. Remember, the company still has 1.99 million shares remaining in its repurchase program—a direct boost to per-share value.

Why Now Is the Time to Act

The pieces are aligning for NBT to hit hyperdrive.

1. Dividend Safety: With a payout ratio of just 34% of earnings, there’s ample room to keep hiking dividends.
2. Geographic Strength: Its 175 branches across seven Northeast states give it a moat in regional banking, where local banks often outperform national giants.
3. M&A Catalysts: The Evans merger is just the start. With a 12.12% CET1 ratio, NBT has the firepower to pursue more deals.

The Bottom Line: NBT Is a Buy Now

At current prices, NBT is trading at just 1.2x tangible book value, a steal for a bank with this kind of growth and stability. Income investors get a dividend that’s rising faster than inflation, while growth investors get a management team executing flawlessly on a buy-and-expand strategy.

This isn’t a “set it and forget it” stock—it’s a buy-and-hold juggernaut. The merger with Evans is done, the capital ratios are bulletproof, and the dividend is on fire. Now is the time to act before the market catches on.

Action stations! Buy NBT now.