NBT Bancorp Inc. · NASDAQ:NBTB
NBT Bancorp — Q4 2020 Earnings Presentation
24 slides from NBT Bancorp's earnings presentation, January 2021
Slide 1: NBT Bancorp Inc. Q4 2020 Earnings Presentation
NBT Bancorp Inc. Q4 2020 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: Q4 & Full Year 2020 Highlights
Q4 & Full Year 2020 Highlights 2020 EARNINGS Q4 2020 Net income of $34.2 million or diluted earnings per share of $0.78; Excluding $4.1 million of branch optimization charges for the quarter, net income was $37.4 million or $0.85 diluted earnings per share Pre-provision net revenue1 was $48.2
Slide 4: Q4 2020 Results Overview
Q4 2020 Results Overview Financial Highlights Quarterly Highlights1 Change % Change Balance Sheet ($ in millions except per share data) Q4 2020 Q3 2020 Q4 2019 Q3 2020 Q4 2019 Period End Balance Sheet Loans, excluding PPP, were up $22 million Total loans $ 7,498.9 $ (61.8) $ 362.8 (0.8%) 5.1% from
Slide 5: Loans
Loans Quarterly Highlights Total Loans: $7.5 billion1 Loans, excluding PPP, were up $22 million Indirect Auto from Q3 2020 12% Specialty Lending 8% Home Equity Commercial and industrial loans decreased 5% $30 million to $1.3 billion Residential Real Estate 19% Other Consumer Commercial real es
Slide 6: Deposits
Deposits Quarterly Highlights2 Total Deposits: $9.1 billion1 Period end deposits grew $124 million from previous quarter Time 7% Core deposits grew $150 million with Demand noninterest bearing demand deposits (noninterest up $77 million bearing) 36% Core deposits3 represent 93% of total Saving
Slide 7: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin Net Interest Income ($ in millions) & Net Interest Margin (%) Quarterly Highlights1 $90.0 4.00% Net interest income up $2.2 million $80.0 3.80% $80.8 $78.3 $80.4 Net interest margin increased 3 bps to 3.20% $77.5 $77.5 $70.0 3.60% Net impact of excess
Slide 8: Noninterest Income
Noninterest Income Noninterest Income Trend1 ($ in millions) Quarterly Highlights2 $40.0 Noninterest income to total revenue was $35.0 32.1%1 $10.3 $10.4 $30.0 $10.3 $9.9 $8.7 $38.0 million1 in noninterest income, up $0.3 million from Q3 2020 $25.0 $9.0 Retail banking fees (service charges and
Slide 9: Noninterest Expense
Noninterest Expense Noninterest Expense Trend ($ in millions) Quarterly Highlights2 $80.0 Noninterest expense of $75.2 million ($4.1 million in branch optimization costs) $70.0 Up $8.9 million (13.4%) $60.0 Overhead ratio at 1.15%3 $50.0 $39.6 $41.0 $40.8 $39.7 $40.5 Salaries & Benefits $40.
Slide 10: Q4 2020 Asset Quality
Q4 2020 Asset Quality Net Charge-Offs Nonperforming Loans1 $6,000 $5,639 0.70% $50,000 $47,796 0.80% $5,404 $5,340 $5,000 0.60% 0.68%3 $38,475 0.70% $3,893 0.50% $40,000 $4,000 $32,252 0.60% 0.40% 0.55%3 0.64% $3,000 0.30%3 $28,891 $27,624 $30,000 $2,262 0.30% 0.32% 0.22%3 0.50% $2,000 0.30% 0.28% 0
Slide 11: CECL 2020
CECL 2020 Reserve / Loans by Segment Loan Type 1/1/2020 3/31/2020 6/30/2020 9/30/2020 12/31/2020 Commercial & Industrial 0.98% 1.43% 1.25% 1.34% 1.47% Paycheck Protection Program 0.00% 0.00% 0.01% 0.01% 0.01% Commercial Real Estate 0.74% 1.10% 1.56% 1.57% 1.43% Residential Real Estate 0.83% 0.99% 1.
Slide 12: Bank-Wide Payment Deferrals
Bank-Wide Payment Deferrals (As of 1/19/2021) Consumer 11% Home Lending 5% Small Commercial 3% $107MM Large Commercial 81% Total Deferrals Total Deferrals % of Portfolio Customer Loan Balance % of Portfolio Outstandings Loan Category (000's) Outstandings(1) at Q2 High(2) Large Commercial(3) $85,970
Slide 13: Sectors with Escalated Monitoring
Sectors with Escalated Monitoring (9.5% of Total Loans) Automotive Industry Loan Balance(1) Retailers 1.3% Accommodations $171,924 General Retailers Healthcare $155,319 1.7% Restaurants/ Portfolio Restaurants/Entertainment $128,027 Entertainment $7.1 billion Remaining 1.8% Total Loans Outstanding He
Slide 14: Appendix
APPENDIX 14
Slide 15: COVID-19 Update
COVID-19 Update Immediately created Executive Task Force and engaged established Incident Response Team under NBTB’s Business Continuity Plan to execute a comprehensive pandemic response and take decisive action to address the initial and ongoing needs of impacted customers and employees. EMPLOYEES
Slide 16: Positive Payment Deferral Trends
Positive Payment Deferral Trends COVID-19 Deferrals by Portfolio Commercial Q2 Peak Deferrals (May 28, 2020) As of January 19, 2021 (in $000's) Balance Deferred % of Portfolio(1) Balance Deferred % of Portfolio(2) Strong return to pay from peak with 2% Large Commercial $649,683 22% $85,970 3% rema
Slide 17: Paycheck Protection Program in 2020
Paycheck Protection Program in 2020 2,971 total approved PPP Loans for a total of $548 million through December 31, 2020 with average loan size of $184,000 Average fee of 3.2% $5.7 million in income earned during the quarter on PPP loans $431 million Outstanding as of 12/31/2020; $73 million
Slide 18: Commercial Loan Portfolio Detail
Commercial Loan Portfolio Detail Owner Occupied CRE ($0.6 billion)1 Commercial & Industrial ($1.3 billion)1 All Other Rental Real Wholesalers Manufacturing Construction Construction Industries, Estate, 6.3% 8.0% 8.0% Trade, 7.5% Trade 16.2% 11.2% Medical 6.1% Accommodations Restaurants, Wholesalers,
Slide 19: CECL Implementation – Day 1, Q1, Q2 & Q3 2020
CECL Implementation – Day 1, Q1, Q2 & Q3 2020 Reserves/Loans by Segment CECL Accounting Loan Type 12/31/2019 1/1/2020 3/31/2020 6/30/2020 9/30/2020 Commercial & Industrial 0.96% 0.98% 1.43% 1.25% 1.34% Paycheck Protection Program 0.00% 0.00% 0.00% 0.01% 0.01% Commercial Real Estate 1.02% 0.74% 1.10%
Slide 20: Interest Rate & Liquidity Risk
Interest Rate & Liquidity Risk Interest Rate Risk Position1 Loan & Deposit Mix1 Loan portfolio: − 61% Fixed / 39% Adjustable/Floating Loans Deposits Deposit repricing information: − $126 million CDs re-price in Q1 of 2021 Time Offsets to low-rate environment: $775 million adjustable/floating 7
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Dollars in Thousands) Q4 2020 Q3 2020 Q4 2019 2020 2019 Net Income $ 34,194 $ 35,113 $ 28,960 $ 104,388 $ 121,021 Income Tax Expense 9,432 10,988 8,166 28,699 34,411 Provision Expense (607) 3,261 6,004 51,134 25,412 FTE Adjustment 318 325 349 1,301 1,667 Net Secu
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Dollars in Thousands, Except Per Share Data) Q4 2020 Q3 2020 Q4 2019 Net Income $ 34,194 $ 35,113 $ 28,960 Amortization of Intangible Assets (Net of Tax) 617 642 633 Net Income, Excluding Intangibles Amortization $ 34,811 $ 35,755 $29,593 Average Tangible Equity
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Dollars in Thousands) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Noninterest Expense $ 75,204 $ 66,308 $ 65,340 $ 70,881 $ 70,294 Gain (Losses) on OREO - 158 96 (11) (405) Amortization of Intangibles and Goodwill Impairment (822) (856) (883) (834) (844) Noninterest
Slide 24: Peer Group
Peer Group Name HQ City State Ticker Berkshire Hills Bancorp, Inc. Boston MA BHLB Brookline Bancorp, Inc. Boston MA BRKL First Busey Corporation Champaign IL BUSE Community Bank System, Inc. Dewitt NY CBU Customers Bancorp, Inc. Wyomissing PA CUBI First Commonwealth Financial Corporation Indiana PA