NBT Bancorp Inc. · NASDAQ:NBTB
NBT Bancorp — RBC Capital Markets Financial Institutions Conference 2016
19 slides from NBT Bancorp's conference presentation, Mar 8, 2016
Slide 1: Investor Presentation
Investor Presentation NBT Bancorp RBC Capital Markets Financial Institutions Conference March 8, 2016 Presented by: Michael J. Chewens, Senior EVP & Chief Financial Officer Matt Durkee, EVP & Regional President, Vermont & Massachusetts
Slide 2: Overview
Overview About NBT Bancorp Consistent Financial Performance Strategic Focuses Appendix 2
Slide 3: Company Profile
Company Profile • Founded in 1856 • NASDAQ Global Select Market, Symbol: NBTB • Assets of $8.3 billion at 12/31/2015 • Market capitalization of $1.16 billion as of 3/2/2016 • Operating entities: – NBT Bank, N.A. – EPIC Advisors, Inc. – NBT-Mang Insurance Agency NBT Bancorp will strive to remain an i
Slide 4: Overview
Overview About NBT Bancorp Consistent Financial Performance Strategic Focuses Appendix 4
Slide 5: Remarkable Historical Performance
Remarkable Historical Performance Total Return from 2005 to 2015 100 60 Total Return % Consistent Market Returns 20 -20 -60 -100 2005 2007 2009 2011 2013 2015 Years Return on Average Assets NBTB SNL U.S. Bank & Thrift Index 1.40 1.20 1.00 ROAA % 0.80 Driven by Solid 0.60 Financial Performance 0.40 0
Slide 6: Stable Asset Quality
Stable Asset Quality 1.60% Nonperforming Loans / Loans 1.24% 1.20% 0.80% 0.64% 0.47% NBT’s 10-year average ratio of Nonperforming Loans / Loans is 0.40% 61 basis points lower than peer median 0.00% 2005 2007 2009 2011 2013 2015 Stable asset quality trends continue • 2015 net charge-offs to average l
Slide 7: Proven Acquirer and Integrator
Proven Acquirer and Integrator Recent Acquisitions • Completed 7 whole-bank, 7 branch and 2012 3 non-bank business acquisitions since 2000 • Achieved targeted cost saves $250 million assets • Retained key personnel • Experienced no material run-off in loans 2013 and deposits with bank and branch dea
Slide 8: Overview
Overview About NBT Bancorp Consistent Financial Performance Strategic Initiatives Appendix 8
Slide 9: Maintain Well-Positioned Balance Sheet
Maintain Well-Positioned Balance Sheet Investment and Loan Repricing Loan Mix Deposit Mix Home Equity Time > 5 Years 9% Residential 14% 15% Real Estate Demand 20% (Noninterest Bearing) Consumer 30% 3-5 Years 27% 19% 0-3 Years Commercial 66% 20% Savings, NOW, and Money Commercial Market Real Estate 5
Slide 10: Balanced Loan Growth
Balanced Loan Growth Annual Growth ($ in millions) $120 • 5.5% 5-Year Organic Growth Rate $100 $110 • 5.1% Annual Growth $96 $80 • 4.5% commercial growth $84 • 4.8% consumer growth $60 • 7.5% residential real estate growth $40 • New England Growth • $107 million $20 • 37% of total loan growth • 14.5
Slide 11: Diversification of Noninterest Income
Diversification of Noninterest Income ($ in millions) $120 $21.6 $100 $16.0 $14.3 Other $17.1 $18.2 $80 $13.7 $15.6 ATM and Debit Card Fees $12.4 $17.9 $17.1 $60 $19.3 Services Charges on Deposit $18.2 Accounts $40 Trust, Retirement, Insurance and Other Financial Services $52.6 $55.6 $57.4 Revenue $
Slide 12: Emphasis on Non-Banking Sources
Emphasis on Non-Banking Sources ($ in millions) $60 $50 • Trust $19.0 $19.0 • Personal, Retirement and $16.7 $40 Institutional $9.2 • Retirement Plan Business $30 $11.5 $12.1 $14.1 • EPIC and TPA $10.1 • Revenue Growth $20 5-year CAGR 7.6% $24.4 $24.5 $24.2 • Insurance and Other $10 $22.4 Financial
Slide 13: Adapting to Customer Preferences and Branch Optimization
Adapting to Customer Preferences and Branch Optimization • Responsive to Industry Trends • In-branch transactions are down and self-service transactions are on the rise • FTEs per branch are down, but Sales per FTE continue to grow • Enhancing Access Points • Online and mobile banking upgrades • Onl
Slide 14: Adapting to Customer Preferences and Branch Optimization
Adapting to Customer Preferences and Branch Optimization Branch Consolidations and Space Reductions • 14 branch consolidations since 2011 • Decreased space by 65,000 sq. ft. since 2011 • Opportunities identified to reduce space by an additional 11,800 sq. ft. Workforce Management • Leveraging state-
Slide 15: NBT in New England
NBT in New England Quickly established presence through organic growth and acquisitions 2009 2011 2012 2014 Established Added 2 Opened Opened Vermont locations fifth Mass. Maine Regional in Vermont, location, Regional Headquarters acquired acquired Headquarters, 4 branches 5-branch added in Mass. ba
Slide 16: Overview
Overview About NBT Bancorp Consistent Financial Performance Strategic Focuses Appendix 16
Slide 17: 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 18: About NBT Bancorp
About NBT Bancorp NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $8.3 billion at December 31, 2015. The company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A.
Slide 19: Peer Group
Peer Group NAME HQ CITY STATE TICKER Berkshire Hills Bancorp, Inc. Pittsfield MA BHLB Brookline Bancorp Inc. Boston MA BRKL Community Bank System, Inc. Dewitt NY CBU Flagstar Bancorp Inc. Troy MI FBC First Commonwealth Financial Corporation Indiana PA FCF Flushing Financial Corp. Lake Success NY FFI
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