NORWICH, N.Y. - NBT Bancorp Inc . (NASDAQ: NASDAQ:NBTB) has received regulatory green lights to proceed with its merger with Evans Bancorp (NYSE:EVBN), Inc. (NYSE American: EVBN), a move that will expand its reach into Western New York. The approval, sanctioned by the Office of the Comptroller of the Currency, allows Evans Bank to merge into NBT Bank. Additionally, a waiver from the Federal Reserve Bank of New York eliminates the need for further applications concerning the merger of the two holding companies. According to InvestingPro data, NBT Bancorp, currently valued at $2.32 billion, has demonstrated strong financial performance with a 10.23% revenue growth over the last twelve months.
The shareholder vote on December 20, 2024, showcased overwhelming support, with over 96% of votes cast in favor of the merger. This transaction is set to combine NBT's assets of $13.84 billion with Evans' $2.28 billion, as reported on September 30, 2024. NBT President and CEO Scott A. Kingsley expressed satisfaction with the regulatory and shareholder backing, indicating that teams from both banks are preparing for a seamless transition targeted for the second quarter of 2025. NBT has maintained a strong track record of shareholder returns, with InvestingPro analysis showing 12 consecutive years of dividend increases and a current dividend yield of 2.82%.
Evans President and CEO David J. Nasca highlighted the benefits for customers and communities, emphasizing the continuation of a shared culture and values, as well as an enhanced range of financial services. The merger, initially announced on September 9, 2024, is expected to close in conjunction with system conversions, pending customary closing conditions.
NBT Bancorp, headquartered in Norwich, NY, operates through NBT Bank, N.A. and has a presence in several northeastern states. It also operates EPIC Retirement Plan Services and NBT Insurance Agency, LLC. Evans Bancorp, based in Williamsville, NY, services Western New York through Evans Bank, N.A. and its 18 branches.
The merger is anticipated to bring together two respected banking entities, potentially creating a stronger financial institution with a broader reach. However, the press release also includes forward-looking statements, warning of potential risks and uncertainties that could affect future results, including integration challenges and the possibility that expected synergies and efficiencies may not materialize as planned.
This article is based on a press release statement.
In other recent news, NBT Bancorp reported a significant increase in its Q3 2024 net income, reaching $38.1 million. The company also announced a merger with Evans Bancorp, a move aimed at extending its market presence into Buffalo and Rochester. Amid the merger, NBT Bancorp and Evans Bancorp have supplemented their proxy materials, responding to concerns raised by purported Evans shareholders.
DA Davidson has initiated coverage on NBT Bancorp shares with a Neutral rating and a price target of $60.00, emphasizing the company's strong fee income and low-risk credit culture. The firm anticipates regional manufacturing growth in upstate New York to benefit NBT Bancorp, which is also expected to strengthen its position in the "Chip Corridor" through recent mergers and acquisitions.
NBT Bancorp's financial highlights included a rise in net income, a record high tangible book value per share, and significant growth in commercial and residential lending. The company also declared a quarterly cash dividend of $0.34, up 6.3% year-over-year, and announced its support for Micron Technology (NASDAQ:MU)'s upcoming $100 billion project in Clay, NY. These are the recent developments for NBT Bancorp.
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