Slide 1: NBT Bancorp Inc. Q1 2024 Earnings Presentation
NBT Bancorp Inc. Q1 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: Q1 2024 Highlights
Q1 2024 Highlights Reported Operating(1) Well Positioned Balance Sheet $0.71 $0.68 Diversified loan portfolio with desirable balance of Earnings per share commercial and consumer loans and deposits Year-to-date loan growth was 1.6% annualized, Reported(1)(2) Operating(1)(2) 3.6% annualized exc
Slide 4: Q1 2024 Results Overview
Q1 2024 Results Overview Financial Highlights Change % Change Highlights(1) ($ in millions except per share data) Q1 2024 Q4 2023 Q1 2023 Q4 2023 Q1 2023 Period End Balance Sheet Balance Sheet Total loans $ 9,688.1 $ 37.4 $ 1,423.5 0.4% 17.2% Total deposits 11,195.3 226.3 1,514.1 2.1% 15.6% Year-t
Slide 5: Loans
Loans Total Loans: $9.69 billion(1) Home Equity Residential Solar 3% 9% Highlights(2) Indirect Auto 12% Loans increased $37.4 million from December 31, 2023 Residential Real Other Consumer Estate 22% 2% Total commercial loans increased $19.0 million to $5.00 billion C&I Total consumer loans in
Slide 6: Deposits
Deposits Total Deposits: $11.20 billion(1) Highlights(2) Cost of total deposits of 1.61%, up 10 bps Total cost of funds was 1.79%, up 7 bps Time 12% Month of March 2024: Demand (Noninterest 1.64% total cost of deposits Bearing) 30% 1.80% total cost of funds Money Market 29% Period end de
Slide 7: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin Net Interest Income ($ in millions) & Net Interest Margin (%) Highlights(1) $105.0 4.00% Net interest margin decreased 1 bp to 3.14% $99.8 $95.0 $95.5 $95.5 $95.8 3.75% Interest earning asset yields increased 5 bps with loan yields up 7 bps $85.0 $89.5 3
Slide 8: Noninterest Income
Noninterest Income $45.0 $4.1 $40.0 $4.0 $4.2 $5.2 $35.0 $3.5 $3.7 $5.5 $4.8 $5.1 $5.4 $30.0 $14.3 Noninterest $25.0 $12.8 $11.2 Income $11.5 $11.7 $20.0 Trend(1) ($ in millions) $15.0 $9.7 $9.3 $8.1 $8.2 $9.2 $10.0 $4.4 $3.9 $3.7 $4.4 $3.7 $5.0 $4.5 $4.2 $4.5 $4.4 $5.5 $0.0 Q1 2023 Q2 2023 Q3 2023
Slide 9: Noninterest Expense
Noninterest Expense Noninterest Expense Trend(1) Highlights(2) ($ in millions) Salaries & benefits increased by 11.4% driven by higher incentive $100.0 costs, seasonally higher payroll taxes, and stock-based compensation and merit pay increases $80.0 Other expenses Occupancy costs increased du
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 $5,327 0.70% $4,679 0.30% $4,500 $4,204 $3,811 $30,000 $3,456 $24,264 0.50% $18,612 $19,686 $3,000 0.22% $20,000 0.19% 0.18% 0.19% 0.15% 0.17% 0.39% 0.39% 0.30% $1,500 $10,000 0.23% 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 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Commercial & Industrial 0.98% 0.85% 0.86% 0.87% 0.84% 0.79% Commercial Real Estate 0.74% 0.93% 0.93% 1.00% 0.99% 0.97% Residential Real Estate 0.83% 0.73% 0.73% 0.79% 0.84% 0.89%
Slide 13: Commercial Loan Portfolio Detail
Commercial Loan Portfolio Detail Owner Occupied CRE ($0.75 billion)(1) Commercial & Industrial ($1.35 billion)(1) Rental Real All Other Construction Wholesalers Estate Manufacturing Industries Trade 5.7% 11.1% 10.5% 16.0% Construction 9.5% Trade Medical 5.5% 6.6% Accommodations Restaurants 0.8% 5.6%
Slide 14: Consumer & Residential Portfolio Detail
Consumer & Residential Portfolio Detail Home Equity 7% Residential Solar 19% Consumer Lending Other Consumer 3% Residential Real Portfolio: Estate 46% $4.69 billion as of 3/31/24 Indirect Auto 25% As of 3/31/2024 Consumer Lending Portfolio Metrics Total Weighted Outstandings # of Average Average Ave
Slide 15: Investment Securities Portfolio
Investment Securities Portfolio March 31, 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 $ 381,817 $ (43,830) $ 337,987 $ 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. Department of Commerce announced an agreement with Micron Technology Inc. to provide a $6.1 billion grant under the CHIPS and Science Act that will, in part, support Micron’s plans to invest a
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) Q1 2024 Q4 2023 Q1 2023 Net Income $ 33,823 $ 30,446 $ 33,658 Amortization of Intangible Assets (Net of Tax) 1,626 1,599 402 Net Income, Excluding Intangibles Amortization $ 35,449 $ 32,045 $ 34,060 Average Tangible Co
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Dollars in Thousands) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Net Interest Income $ 95,174 $ 99,173 $ 94,895 $ 89,085 $ 95,066 FTE Adjustment 658 669 568 402 395 Net Interest Income, Tax Equivalent $ 95,832 $ 99,842 $ 95,463 $ 89,487 $ 95,461 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 Bank System, Inc. Dewitt NY CBU Dime Community Bancshares, Inc. Hauppauge NY DCOM Eastern Bankshares, Inc. Boston MA EBC First Busey Corporation Champaign IL BUSE First