Slide 1: NBT Bancorp Inc. Q2 2024 Earnings Presentation
NBT Bancorp Inc. Q2 2024 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 2024 Highlights
Q2 2024 Highlights $0.69 Well Positioned Balance Sheet Earnings per share Diversified loan portfolio with desirable balance of commercial and consumer loans and deposits Year-to-date loan growth was 4.2% annualized, 13.23% 6.9% annualized excluding consumer portfolios in Return on average tang
Slide 4: Q2 2024 Results Overview
Q2 2024 Results Overview Financial Highlights Change % Change Highlights(1) ($ in millions except per share data) Q2 2024 Q1 2024 Q2 2023 Q1 2024 Q2 2023 Period End Balance Sheet Balance Sheet Total loans $ 9,854.3 $ 166.3 $ 1,496.2 1.7% 17.9% Total deposits 11,271.5 76.2 1,741.5 0.7% 18.3% Year-t
Slide 5: Loans
Loans Total Loans: $9.85 billion(1) Home Equity Residential Solar 3% 9% Highlights(2) Indirect Auto 12% Loans increased $203.6 million from December 31, 2023 Residential Real Estate Other Consumer 22% 1% Total commercial loans increased $201.0 million to $5.18 billion C&I Total consumer loans
Slide 6: Deposits
Deposits Total Deposits: $11.27 billion(1) Highlights(2) Cost of total deposits of 1.68%, up 7 bps Total cost of funds was 1.85%, up 6 bps Time 12% Demand Month of June 2024: (Noninterest Bearing) 1.70% total cost of deposits 30% 1.85% total cost of funds Money Market 29% Period end depo
Slide 7: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin Net Interest Income ($ in millions) & Net Interest Margin (%) Highlights(1) $105.0 4.00% Net interest margin increased 4 bps to 3.18% $99.8 $95.0 $95.5 $95.8 $97.8 3.75% Interest earning asset yields increased 8 bps with loan yields up 9 bps $85.0 $89.5
Slide 8: Noninterest Income
Noninterest Income $45.0 $4.1 $4.2 $40.0 $4.0 $4.2 $5.2 $5.6 $35.0 $3.7 $5.5 $5.1 $5.4 $30.0 $14.3 $14.8 Noninterest $25.0 $12.8 $11.2 Income $11.7 $20.0 Trend(1) ($ in millions) $15.0 $9.7 $9.3 $10.2 $8.2 $9.2 $10.0 $4.4 $3.7 $4.4 $3.7 $3.8 $5.0 $4.2 $4.5 $4.4 $5.5 $4.7 $0.0 Q2 2023 Q3 2023 Q4 2023
Slide 9: Noninterest Expense
Noninterest Expense Noninterest Expense Trend(1) ($ in millions) Highlights(2) $100.0 Salaries & benefits decreased by 0.6% driven by seasonally higher payroll taxes and stock-based compensation in Q1, which were $80.0 partially offset by merit pay increases and medical costs $50.0 $55.7 Other e
Slide 10: Asset Quality
Asset Quality Net Charge-Offs Nonperforming Loans(1) $7,500 0.45% $50,000 0.90% $6,000 $40,000 $37,874 $37,789 $38,088 $5,327 0.70% $4,679 0.30% $4,500 $4,204 $3,699 $30,000 $3,456 $24,264 0.50% $19,686 $3,000 0.22% $20,000 0.18% 0.19% 0.15% 0.17% 0.39% 0.39% 0.39% 0.15% 0.30% $1,500 $10,000 0.24% 0
Slide 11: Appendix
APPENDIX 11
Slide 12: Loan Loss Reserve (CECL)
Loan Loss Reserve (CECL) Reserve / Loans by Segment Loan Type 1/1/2020 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Commercial & Industrial 0.98% 0.86% 0.87% 0.84% 0.79% 0.76% Commercial Real Estate 0.74% 0.93% 1.00% 0.99% 0.97% 1.00% Residential Real Estate 0.83% 0.73% 0.79% 0.84% 0.89% 0.98%
Slide 13: Commercial Loan Portfolio Detail
Commercial Loan Portfolio Detail Owner Occupied CRE ($0.76 billion)(1) Commercial & Industrial ($1.40 billion)(1) Real Estate All Other Industry Wholesalers Construction 6.2% Manufacturing Industries 9.8% Construction Trade 10.7% 16.5% Trade 9.8% 5.6% Medical 7.1% Food Services Wholesalers 5.7% 8.5%
Slide 14: Consumer & Residential Portfolio Detail
Consumer & Residential Portfolio Detail Home Equity 7% Residential Solar 18% Consumer Other Consumer Lending 3% Residential Real Portfolio: Estate 46% $4.67 billion as of 6/30/24 Indirect Auto 26% As of 6/30/2024 Consumer Lending Portfolio Metrics Total Weighted Outstandings # of Average Average Ave
Slide 15: Investment Securities Portfolio
Investment Securities Portfolio June 30, 2024 December 31, 2023 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 $ 391,937 $ (42,301) $ 349,636 $ 381,686 $
Slide 16: NBT Coverage of Upstate NY Semiconductor Chip Corridor
NBT Coverage of Upstate NY Semiconductor Chip Corridor TRANSFORMATIONAL INVESTMENTS ARE UNDERWAY The U.S. Economic Development Administration announced $40 million in federal funding was awarded to support Tech Hubs along I-90 in Syracuse, Rochester and Buffalo. (July 2024) The U.S. Department o
Slide 17: External Recognition
External Recognition In the J.D. Power 2024 U.S. Retail Banking Satisfaction Study, NBT Bank ranked #2 in the NY Tri-State Region, which includes New York, Connecticut and New Jersey. 17
Slide 18: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Dollars in Thousands, Except Per Share Data) Q2 2024 Q1 2024 Q2 2023 Net Income $ 32,716 $ 33,823 $ 30,072 Amortization of Intangible Assets (Net of Tax) 1,600 1,626 344 Net Income, Excluding Intangibles Amortization $ 34,316 $ 35,449 $ 30,416 Average Tangible Co
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Dollars in Thousands) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Net Interest Income $ 97,174 $ 95,174 $ 99,173 $ 94,895 $ 89,085 FTE Adjustment 658 658 669 568 402 Net Interest Income, Tax Equivalent $ 97,832 $ 95,832 $ 99,842 $ 95,463 $ 89,487 Average Total Intere
Slide 20: Peer Group
Peer Group Name HQ City State Ticker Berkshire Hills Bancorp, Inc. Boston MA BHLB Brookline Bancorp, Inc. Boston MA BRKL Community Financial System, Inc. Dewitt NY CBU Dime Community Bancshares, Inc. Hauppauge NY DCOM Eastern Bankshares, Inc. Boston MA EBC First Busey Corporation Champaign IL BUSE F