Annual Meeting of Shareholders

Transcription

1 Annual Meeting of Shareholders May 23,

2 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 Actual results may differ materially from any forward-looking statements expressed in this presentation, since forward-looking information involves significant known and unknown risks, uncertainties and other factors. For a discussion of the factors that might cause such differences, please refer to NBT Bancorp s public filings with the Securities and Exchange Commission. These are available online at NBT Bancorp does not undertake to update any forward-looking statements made in this presentation to reflect new information, future events or otherwise. 2

3 2016 Financial Highlights 3

4 Record Performance in 2016 $78.4 Million Record Net Income for 4th Straight Year 4

5 Net Income In Millions $85.0 $80.0 $75.0 $78.4 $75.1 $76.4 $70.0 $65.0 $60.0 $61.7 $55.0 $

6 Record Performance in 2016 $1.80 Earnings Per Share Tied 2008 EPS Record 6

7 Earnings Per Share $1.85 $1.80 $1.75 $1.80 $1.70 $1.65 $1.60 $1.72 $1.69 $ * * Excludes merger-related expenses from acquisition of Alliance 7

8 Record Performance in 2016 Total Assets at $8.9 Billion Loans at $6.2 Billion Deposits at $7.0 Billion 8

9 Performance Drivers: Loan Growth In Millions $7,500 $6,000 $4,500 $4,278 $904 $904 $4,502 $4,691 $904 $4,979 $904 $5,294 Acquired NBT $3,000 $1,

10 2016 Diversified Loan Portfolio Consumer 27% Home Equity 8% Residential Real Estate 20% Commercial 20% Commercial Real Estate 25% 10

11 Stable Asset Quality Stable Asset Quality Trends Continued in % 1.20% 0.80% Nonperforming Loans / Loans 1.09% 0.65% 0.40% 0.45% 0.00%

12 Performance Drivers: Demand Deposit Growth Average Balances In Millions $2,500 $2,000 $1,500 $1,000 $20 $1,120 $171 $1,313 $253 $1,417 $253 $1,604 $253 $1,792 Acquired NBT $ % Growth 30.2% 12.5% 11.2% 10.1% (as compared to previous year) 12

13 Noninterest Income as a Percent of Revenue 32.0% 31.0% 30.0% 29.0% 30.2% 29.7% 31.2% 30.4% 28.0% 27.0% * 2015* 2016 *Excludes gains from sale of Springstone LLC of $19.4 million in 2014 and $4.2 million in

14 Peer Comparison 14

15 Peer Group Listing Company Ticker Location Company Ticker Location Berkshire Hills Bancorp Inc. BHLB Pittsfield, MA Brookline Bancorp Inc. BRKL Boston, MA Community Bank System Inc. CBU De Witt, NY Flagstar Bancorp Inc. FBC Troy, MI First Commonwealth Financial FCF Indiana, PA Flushing Financial Corp. FFIC Lake Success, NY First Midwest Bancorp Inc. FMBI Itasca, IL Independent Bank Corp. INDB Rockland, MA MB Financial Inc. MBFI Chicago, IL NBT Bancorp Inc. NBTB Norwich, NY Northwest Bancshares, Inc. NWBI Warren, PA Old National Bancorp ONB Evansville, IN Provident Financial Services PFS Jersey City, NJ Park National Corp. PRK Newark, OH PrivateBancorp Inc. PVTB Chicago, IL S&T Bancorp Inc. STBA Indiana, PA Tompkins Financial Corporation TMP Ithaca, NY TrustCo Bank Corp NY TRST Glenville, NY 15

16 Components of Profitability Return on Average Assets Return on Average Tangible Equity Net Interest Margin Efficiency Ratio Nonperforming Assets to Total Assets 16

17 Peer Group Relative Average Ranking Ten-Year Average (2007 to 2016)

18 NBT Bancorp Stock 18

19 NBT Bancorp Stock Ticker Symbol: NBTB Traded on Nasdaq Global Select Market Institutional Ownership: 50% Average Daily Volume: 111,000 19

20 Share Price 50% Increase $45.00 $40.00 $41.88 $35.00 $30.00 $25.00 $27.88 $

21 Relative Performance One Year For the Period from 12/31/2015 to 12/31/ % 50% 40% 30% 20% 10% 0% -10% -20% 54.62% 23.33% NASDAQ Financial Index NBTB 21

22 Relative Performance Ten Years For the Period from 12/31/2006 to 12/31/ % 140% 120% 100% 80% 60% 40% 20% 0% -20% -40% -60% % 64.34% NASDAQ Financial Index NBTB 22

23 Annualized Total Shareholder Return One Year For the Period From 12/31/2015 to 12/31/ % 61.17% 59.04% 54.80% 54.62% 48.79% 48.07% 47.24% 45.39% 40.59% 39.86% 39.43% 39.04% 37.63% 32.23% 30.40% 30.39% 16.57% 80% 70% 60% 50% 40% 30% 20% 10% 0%

24 Annualized Total Shareholder Return Ten Years For the Period From 12/31/2006 to 12/31/ % 12.20% 9.84% 9.52% 8.99% 8.86% 8.33% 7.40% 6.79% 4.43% 3.86% 3.85% 3.75% 3.21% 3.04% 2.29% % -2.57% 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% -35%

25 Peer Group Dividend Yield As of December 31, % 4.00% 3.00% 2.00% 1.00% 0.00% 3.33% 3.14% 3.00% 2.87% 2.54% 2.31% 2.20% 2.20% 2.17% 2.07% 2.05% 1.97% 1.90% 1.65% 1.61% 1.43% 0.07% 0.00% Source: SNL Financial Median is 2.12% NBT has been above the peer median for the last five years 25

26 NBTB Dividend Payout Ratio 100% 80% 60% 52% 44% 52% 48% 47% 49% 55% 49% 50% 50% 40% 20% 0% 26

27 First Quarter 2017 Highlights 27

28 First Quarter 2017 Highlights Record First Quarter Earnings Per Share of $0.46 Net Interest Margin Expanded 5 Basis Points Annualized Loan Growth of 4.9% Average Demand Deposits Up 9.6% from First Quarter

29 Business Updates 29

30 New England Expansion State Year Opened Loans VT 2009 $445 MA 2011 $99 NH ME $339 $155 Dollars in Millions As of December 30, 2016 $1,038 Over $1 Billion in Loans and Commitments Wealth Assets Under Management and Administration of $260 Million 30

31 Digital Initiatives Constantly enhancing digital offerings Online, mobile and social communication channels External validation 31

32 Specialty Lending Technology-driven consumer lending Long history with Springstone Partnership with LendingClub 32

33 Corporate Governance 33

34 Corporate Governance Adapting to current corporate governance best practices All directors elected annually Majority vote standard for uncontested director elections with a director resignation policy Say on Pay and Say on Frequency Positive feedback from advisory groups 34

35 35