Nbt Bancorp Inc. · NASDAQ:NBTB
Nbt Bancorp — Shareholder Meeting (May 2016)
48 slides from Nbt Bancorp's shareholder meeting presentation, May 3, 2016
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders May 3, 2016 NBANCORP
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking statements regarding NBT Bancorp Inc. These statements constitute forward-looking information within the definition of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from any forward-
Slide 3: Michael J. Chewens
Michael J. Chewens Senior Executive Vice President and Chief Financial Officer 3
Slide 4: Timothy L. Brenner
Timothy L. Brenner Executive Vice President and President of Wealth Management 4
Slide 5: Matthew K. Durkee
Matthew K. Durkee Executive Vice President 5
Slide 6: Jeffrey M. Levy
Jeffrey M. Levy Executive Vice President and President of Commercial Banking 6
Slide 7: F. Sheldon Prentice
F. Sheldon Prentice Executive Vice President, General Counsel and Corporate Secretary 7
Slide 8: Catherine M. Scarlett
Catherine M. Scarlett Executive Vice President and Chief Human Resources Officer and Chief Ethics Officer 8
Slide 9: Joseph R. Stagliano
Joseph R. Stagliano Executive Vice President and Chief Information Officer 9
Slide 10: John H. Watt Jr.
John H. Watt Jr. Executive Vice President 10
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Slide 12: 2015 Financial Highlights
2015 Financial Highlights 12
Slide 13: Record Net Income of $76.4 Million
Record Performance in 2015 $76.4 Million Record Net Income 13
Slide 14: Net Income
Net Income In Millions $80.0 $76.4 $75.1 $70.0 $60.0 $61.7 $54.6 $50.0 $40.0 $30.0 2012 2013 2014 2015 14
Slide 15: Earnings Per Share
Record Performance in 2015 $1.72 Earnings Per Share Second Highest Ever 15
Slide 16: Earnings Per Share
Earnings Per Share $1.76 $1.72 $1.72 $1.68 $1.69 $1.66 $1.64 $1.62 $1.60 $1.56 2012 2013 * 2014 2015 * Excludes merger-related expenses from acquisition of Alliance 16
Slide 17: Record Performance in 2015
Record Performance in 2015 • Total Assets at $8.3 Billion • Loans at $5.9 Billion • Deposits at $6.6 Billion 17
Slide 18: Performance Drivers: Organic Loan Growth
Performance Drivers: Organic Loan Growth In Billions $4.90 $4.70 $4.72 $4.50 $4.47 $4.30 $4.10 $4.24 $3.90 $4.02 $3.70 $3.81 $3.50 2011 2012 2013 2014 2015 Loan balances shown without acquired portfolios 18
Slide 19: Performance Drivers: Loan Growth
Performance Drivers: Loan Growth In Billions $6.00 $5.50 $1.16 $5.00 $1.16 $1.16 Acquired Loans Originated Loans $4.50 $0.26 $4.72 $4.00 $4.47 $4.24 $4.02 $3.81 $3.50 2011 2012 2013 2014 2015 19
Slide 20: 2015 Diversified Loan Portfolio
2015 Diversified Loan Portfolio Home Equity 9% Residential Real Estate 20% Consumer 27% Commercial 20% Commercial Real Estate 24% 20
Slide 21: Stable Asset Quality
Stable Asset Quality Nonperforming Loans / Loans 1.60% 1.24% 1.20% 0.80% 0.64% 0.47% 0.40% 0.00% 2005 2007 2009 2011 2013 2015 Stable asset quality trends continued in 2015 • 2015 net charge-offs to average loans at 0.38% compared to 0.41% for 2014 • Past due ratio of 0.62% as of 12/31/2015 is 7 bas
Slide 22: Performance Drivers: DDA Deposit Growth
Performance Drivers: DDA Deposit Growth Average Balances In Millions $1,900 $270 $1,700 $270 $1,500 $187 Acquired DDA $1,300 $37 DDA Balance $1,587 $1,100 $3 $1,400 $1,297 $900 $1,103 $963 $700 2011 2012 2013 2014 2015 % Growth 18.0% 30.2% 12.5% 11.2% (as compared to previous year) 22
Slide 23: Noninterest Income as a Percent of Revenue
Noninterest Income as a Percent of Revenue 32.0% 31.0% 31.2% 30.0% 30.2% 30.0% 29.7% 29.0% 28.0% 27.0% 2012 2013 2014* 2015* *Excludes gains from sale of Springstone LLC of $19.4 million in 2014 and $4.2 million in 2015 23
Slide 24: Strong, Sustained Financial Performance
Strong, Sustained Financial Performance 24
Slide 25: Peer Group Listing
Peer Group Listing Company Ticker Location Company Ticker Location Berkshire Hills Bancorp Inc. BHLB Pittsfield, MA NBT Bancorp Inc. NBTB Norwich, NY Brookline Bancorp Inc. BRKL Boston, MA Northwest Bancshares, Inc. NWBI Warren, PA Community Bank System Inc. CBU De Witt, NY Old National Bancorp ONB
Slide 26: Components of Profitability
Components of Profitability • Return on Average Assets • Return on Average Tangible Equity • Net Interest Margin • Efficiency Ratio • Nonperforming Assets to Total Assets 26
Slide 27: Relative Average Ranking
Relative Average Ranking Year Ended December 31, 2015 Ratios Relative Peer Ranking Return on Average Tangible Equity 5 Return on Average Assets 9 Net Interest Margin 7 Efficiency Ratio 9 Nonperforming Assets to Total Assets 8 NBTB Average Ranking 7.6 27
Slide 28: Peer Group Relative Average Ranking
Peer Group Relative Average Ranking Year Ended December 31, 2015 2 2.4 4.0 4 6.2 6 7.6 7.6 8 8.2 8.6 8.8 9.6 9.8 10.2 10 10.8 11.6 11.6 11.8 12 12.2 14 14.4 14.8 16 28
Slide 29: Peer Group Relative Average Ranking
Peer Group Relative Average Ranking Ten-Year Average (2006 to 2015) 2 4 4.2 5.7 5.9 6 7.0 7.7 7.8 8 8.1 8.2 10 10.0 10.2 10.2 10.3 10.6 11.3 11.3 12 12.4 12.8 14 16 16.3 18 29
Slide 30: NBT Bancorp Stock
NBT Bancorp Stock 2016 Annual Meeting
Slide 31: NBT Bancorp Stock
NBT Bancorp Stock • Traded on NASDAQ Global Select Market • Ticker Symbol: NBTB • Institutional Ownership: 48% • Average Daily Volume: 112,000 31
Slide 32: Relative Performance
Relative Performance One Year | For the Period from 12/31/2014 to 12/31/2015 10% 1 Year % Increase: 8% NASDAQ 6.48% NBTB 9.73% 6% 4% 2% 0% -2% -4% -6% NASDAQ Financial Index NBTB 32
Slide 33: Relative Performance
Relative Performance Ten Years | For the Period from 12/31/2005 to 12/31/2015 95% 70% 45% 20% -5% -30% NASDAQ Financial Index NBTB 33
Slide 34: Annualized Total Shareholder Return
-15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% FB C PV 46.92% TB BR 22.94% KL 18.51% PF S BH 15.42% LB NW 12.18% BI 11.72% IN DB 11.15% FF IC 10.21% FM BI NB 9.89% TB 9.73% CB U 8.26% PR K ST 6.74% BA 5.99% One Year | For the Period From 12/31/2014 to 12/31/2015 TM P 4.81% FC F 1.43% M Annu
Slide 35: Annualized Total Shareholder Return
-40% -35% -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% CB U NW 9.96% BI 8.41% IN DB 7.83% TM P 7.71% FF IC NB 7.05% TB 6.32% PF S 4.36% PR K BR 4.06% KL PV 2.55% TB ST 1.84% BA BH 1.45% LB 1.31% M BF I 0.51% FC Ten Years | For the Period From 12/31/2005 to 12/31/2015 F -0.07% ON B TR -1.03% ST Annuali
Slide 36: Remarkable 20-Year Run of Consistency
Remarkable 20-Year Run of Consistency Total Return | Last 20 Years Source: Griffin Financial Group LLC 36
Slide 37: Peer Group Dividend Yield
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% TR ST 4.57% NW BI 4.41% Source: SNL Financial PR K 4.38% ON B 3.83% PF S 3.59% As of December 31, 2015 NB TB 3.40% CB U 3.29% TM P 3.29% BR KL 3.27% FC F 3.26% FF Median is 3.26% IC Peer Group Dividend Yield 3.13% BH LB 2.71% ST BA 2.65% IN DB 2.34% M BF I 2.32% F
Slide 38: Dividend Yield: NBT vs. Peer Median
Dividend Yield: NBT vs. Peer Median 5.00% 4.75% 4.50% 4.25% 4.00% 3.75% 3.50% 3.25% 3.00% 2.75% 2.50% 2.25% 2.00% 2011 2012 2013 2014 2015 NBTB Peer Median 38
Slide 39: Dividend Payout Ratio
Dividend Payout Ratio 100% 80% 60% 55% 52% 52% 50% 48% 47% 49% 49% 46% 44% 40% 20% 0% NBTB 39
Slide 40: Business Updates
Business Updates 2016 Annual Meeting
Slide 41: New England Strategy
New England Strategy 2016 Annual Meeting
Slide 42: New England Strategy
New England Strategy Year State Loans Opened VT 2009 $412 MA 2011 $90 NH 2012 $310 ME 2015 $43 As of December 31, 2015 Dollars in millions $855 • Almost $1 Billion in Loans • Wealth Assets Under Administration of $217 Million • Proven Growth Strategy • Attractive Market Demographics 42
Slide 43: New England Strategy
New England Strategy “We view NBT’s successful New England efforts as a key differentiator of the franchise vs. other Upstate NY banks still struggling with the competitive slow growth environment of its marketplace.” 43
Slide 44: New Website Launch
New Website Launch 2016 Annual Meeting
Slide 45: New NBT Bank Website
New NBT Bank Website IT'S YOUR MONEY. MAKE IT COUNT. Win the Personal Fro Mar (Online Barta, you CoA entra your IT'S YOUR ‘“) _ MONEY. MAKE
Slide 46: First Quarter 2016 Highlights
First Quarter 2016 Highlights 46
Slide 47: First Quarter 2016 Highlights
First Quarter 2016 Highlights • Earnings Per Share of $0.43 • Net Income of $18.9 Million • Annualized Loan Growth of 5.8% • Average Demand Deposits Up 11.3% from First Quarter 2015 • Positive Asset Quality Trends Continue 47
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