Nbt Bancorp Inc. · NASDAQ:NBTB
Nbt Bancorp — Q2 2023 Earnings Presentation
21 slides from Nbt Bancorp's earnings presentation, Aug 1, 2023
Slide 1: NBT Bancorp Inc. Q2 2023 Earnings Presentation
NBT Bancorp Inc. Q2 2023 Earnings Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “
Slide 3: Q2 2023 Highlights
Q2 2023 Highlights EARNINGS Net income of $30.1 million, or diluted earnings per share of $0.70 ($0.80 excluding acquisition expenses and securities losses) Net interest income down 6.3% from Q1 2023 and up 1.8% from Q2 2022 Return on average tangible common equity(1)(2) of 13.13% for Q2 2023
Slide 4: Q2 2023 Results Overview
Q2 2023 Results Overview Financial Highlights Change % Change Quarterly Highlights(1) ($ in millions except per share data) Q2 2023 Q1 2023 Q2 2022 Q1 2023 Q2 2022 Period End Balance Sheet Balance Sheet Total loans $ 8,358.1 $ 93.5 $ 580.4 1.1% 7.5% Total deposits 9,529.9 (151.3) (498.8) (1.6%) (5.0
Slide 5: Loans
Loans Total Loans: $8.36 billion(1) Home Equity Quarterly Highlights(2) Residential Solar 4% 11% Loans up $208.0 million from December Indirect Auto 13% 31, 2022, or 2.6% (5.1% annualized) Residential Real Estate 20% Total commercial loans increased Other Consumer $129.4 million to $4.20 billion
Slide 6: Deposits
Deposits Total Deposits: $9.53 billion(1) Quarterly Highlights(2) Cost of total deposits of 0.85%, up 38 bps Time Total cost of funds was 1.22%, up 47 bps 10% Month of June 2023: Demand (Noninterest 0.92% total cost of deposits Bearing) 35% 1.31% total cost of funds Period end deposits s
Slide 7: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin Net Interest Income ($ in millions) & Net Interest Margin (%) $105.0 4.00% Quarterly Highlights(1) $100.2 $95.0 $95.5 3.75% Net interest margin decreased $94.8 28 bps to 3.27%, primarily due 3.68% $85.0 $87.9 $89.5 3.50% to higher funding costs more than 3
Slide 8: Noninterest Income
Noninterest Income $45.0 $40.0 $3.8 $35.0 $3.6 $3.7 $3.5 $9.8 $3.6 $5.7 $4.8 $5.1 $30.0 $5.0 Noninterest $25.0 Income $12.7 $11.5 $11.5 $11.7 Trend(1) $20.0 $10.7 ($ in millions) $15.0 $8.3 $8.4 $8.1 $8.2 $8.0 $10.0 $3.6 $3.9 $3.9 $3.7 $5.0 $3.4 $4.2 $4.3 $3.6 $4.5 $4.2 $0.0 Q2 2022 Q3 2022 Q4 2022
Slide 9: Noninterest Expense
Noninterest Expense Quarterly Highlights(2) Noninterest Expense Trend(1) Noninterest expense of $78.8 million, down $0.5 million (0.7%) ($ in millions) Salaries & benefits decrease of 2.7% driven by seasonally higher $80.0 payroll taxes and stock-based compensation expense in Q1 2023 $70.0 parti
Slide 10: Asset Quality
Asset Quality Net Charge-Offs Nonperforming Loans(1) $4,100 $3,811 0.40% $45,000 0.90% $3,677 $3,456 $3,075 0.30% $35,000 0.70% $25,769 $2,050 0.20% $25,000 $21,830 0.50% $21,056 $18,612 $19,686 $1,284 0.18% 0.19% 0.17% $1,025 $790 0.10% $15,000 0.30% 0.33% 0.07% 0.28% 0.04% 0.26% 0.24% 0.23% $0 0.0
Slide 11: Appendix
APPENDIX 11
Slide 12: Second Quarter Trends
Second Quarter Trends ($ in thousands except per share data) Q2 2023 Q2 2022 Q2 2021 Q2 2020 Q2 2019 Income Statement (1) Loan interest income, excluding PPP income $ 106,930 $ 77,238 $ 70,063 $ 73,396 $ 81,271 (1) PPP interest income and fees 5 1,301 4,732 3,874 - Securities 12,484 11,502 8,858 9,5
Slide 13: Loan Loss Reserve (CECL)
Loan Loss Reserve (CECL) Reserve / Loans by Segment Loan Type 1/1/2020 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Commercial & Industrial 0.98% 0.74% 0.80% 0.82% 0.85% 0.86% Commercial Real Estate 0.74% 0.89% 0.88% 0.91% 0.93% 0.93% Residential Real Estate 0.83% 0.79% 0.74% 0.72% 0.73% 0.73%
Slide 14: Commercial Loan Portfolio Detail
Commercial Loan Portfolio Detail Owner Occupied CRE ($0.61 billion)(1) Commercial & Industrial ($1.32 billion)(1) All Other Rental Real Wholesalers Industries Estate Construction 7.6% 9.3% Construction Trade Manufacturing 14.9% Trade 10.4% 11.3% 6.2% Medical Restaurants 6.6% 5.4% Accommodations Whol
Slide 15: Consumer & Residential Portfolio Detail
Consumer & Residential Portfolio Detail Other Consumer 5% Home Equity 8% Residential Real Consumer Estate 40% Lending Residential Solar 22% Portfolio: $4.15 billion as of 6/30/23 Indirect Auto 25% As of 6/30/2023 Consumer Lending Portfolio Metrics Total Outstandings # of Avg. wAve Category ($000s) A
Slide 16: Interest Rate Risk & Liquidity Sources
Interest Rate Risk & Liquidity Sources ($ in thousands) Interest Rate Risk Position(1) Total Deposits (A) $9,529,919 Loan portfolio: 64% Fixed / 36% Adjustable/Floating Commercial Back-to-Back Swap Program Maturity Schedule: Estimated Uninsured Deposits 3,529,093 Commercial Back to Back Swap Pro
Slide 17: Investment Securities Portfolio
Investment Securities Portfolio June 30, 2023 December 31, 2022 AFS Securities Amortized Net Unrealized Estimated Amortized Net Unrealized Estimated (In thousands) Cost (Losses)/Gains Fair Value Cost (Losses)/Gains Fair Value U.S. treasury & federal agency $ 381,420 $ (50,770) $ 330,650 $ 381,310 $
Slide 18: External Recognition
External Recognition Highest Ranked Bank in NY 18
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (dollars in thousands, except per share data) Q2 2023 Q1 2023 Q2 2022 Net Income $ 30,072 $ 33,658 $ 37,775 Amortization of Intangible Assets (Net of Tax) 344 402 409 Net Income, Excluding Intangibles Amortization $ 30,416 $ 34,060 $ 38,184 Average Tangible Common
Slide 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (dollars in thousands) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Net Interest Income $ 89,085 $ 95,066 $ 99,779 $ 94,478 $ 87,585 FTE Adjustment 402 395 392 337 290 Net Interest Income, Tax Equivalent $ 89,487 $ 95,461 $ 100,171 $ 94,815 $ 87,875 Average Total Inter
Slide 21: Peer Group
Peer Group Name HQ City State Ticker Berkshire Hills Bancorp, Inc. Boston MA BHLB Brookline Bancorp, Inc. Boston MA BRKL Community Bank System, Inc. Dewitt NY CBU Customers Bancorp, Inc. West Reading PA CUBI First Busey Corporation Champaign IL BUSE First Commonwealth Financial Corporation Indiana P