NasdaqGS:NBTB

Stock Analysis Report

Executive Summary

NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has NBT Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NBTB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.8%

NBTB

-7.1%

US Banks

-2.0%

US Market


1 Year Return

-12.4%

NBTB

-32.9%

US Banks

-15.1%

US Market

Return vs Industry: NBTB exceeded the US Banks industry which returned -33.7% over the past year.

Return vs Market: NBTB exceeded the US Market which returned -14.9% over the past year.


Shareholder returns

NBTBIndustryMarket
7 Day2.8%-7.1%-2.0%
30 Day-3.9%-30.6%-19.7%
90 Day-20.7%-42.5%-23.2%
1 Year-9.8%-12.4%-30.9%-32.9%-13.4%-15.1%
3 Year-4.6%-12.0%-21.7%-27.5%10.9%3.7%
5 Year49.7%30.1%3.5%-8.4%28.4%14.4%

Price Volatility Vs. Market

How volatile is NBT Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NBT Bancorp undervalued compared to its fair value and its price relative to the market?

29.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NBTB ($32.27) is trading below our estimate of fair value ($45.61)

Significantly Below Fair Value: NBTB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NBTB is poor value based on its PE Ratio (11.7x) compared to the Banks industry average (8.6x).

PE vs Market: NBTB is good value based on its PE Ratio (11.7x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: NBTB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NBTB is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is NBT Bancorp forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NBTB's earnings are forecast to decline over the next 3 years (-5.4% per year).

Earnings vs Market: NBTB's earnings are forecast to decline over the next 3 years (-5.4% per year).

High Growth Earnings: NBTB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NBTB's revenue (3.8% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: NBTB's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NBTB's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has NBT Bancorp performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NBTB has high quality earnings.

Growing Profit Margin: NBTB's current net profit margins (28.1%) are higher than last year (28%).


Past Earnings Growth Analysis

Earnings Trend: NBTB's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: NBTB's earnings growth over the past year (7.5%) is below its 5-year average (11.6% per year).

Earnings vs Industry: NBTB earnings growth over the past year (7.5%) underperformed the Banks industry 10.9%.


Return on Equity

High ROE: NBTB's Return on Equity (10.8%) is considered low.


Next Steps

Financial Health

How is NBT Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: NBTB has a low level of unsold assets or inventory.

Debt Coverage by Assets: NBTB's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: NBTB's level of assets compared to its equity is low.

Allowance for Bad Loans: NBTB has a sufficient allowance for bad loans.

Low Risk Liabilities: NBTB's liabilities are made up of primarily low risk sources of funding.

Loan Level: NBTB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NBTB's loans are broadly funded by customer deposits.

Level of Bad Loans: NBTB has an appropriate level of bad loans (0.4%)


Next Steps

Dividend

What is NBT Bancorp's current dividend yield, its reliability and sustainability?

3.35%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: NBTB's dividend (3.35%) is higher than the bottom 25% of dividend payers in the US market (2.04%).

High Dividend: NBTB's dividend (3.35%) is low compared to the top 25% of dividend payers in the US market (5.7%).


Stability and Growth of Payments

Stable Dividend: NBTB's dividends per share have been stable in the past 10 years.

Growing Dividend: NBTB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38%), NBTB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NBTB's dividends in 3 years are forecast to be well covered by earnings (45.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

John Watt (61yo)

3.33s

Tenure

US$2,169,099

Compensation

Mr. John H. Watt, Jr. has 31 years of experience in the financial services industry. He joined NBT Bank in 2014 following the sale of Alliance Financial Corporation to NBT. He played a leadership role in N ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD2.17M) is below average for companies of similar size in the US market ($USD4.70M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Watt
President3.33yrsUS$2.17m0.19% $2.6m
Joseph Stagliano
Executive Vice President and President of Retail Community Banking1.25yrsUS$825.14k0.16% $2.3m
Timothy Brenner
Executive VP & President of Wealth Management8.08yrsUS$884.10k0.15% $2.1m
Sarah Halliday
Executive VP & President of Commercial Banking3.25yrsUS$718.24k0.011% $156.6k
John Moran
Executive VP & CFO0.42yrno data0.0057% $80.6k
Kenneth Entenmann
Senior VPno datano datano data
Annette Burns
Senior VP & Chief Accounting Officer0.42yrno data0.016% $223.5k
Angela Kelley
Executive VP0.67yrno data0.0034% $48.4k
Florence Doller
Senior VP & Director of Corporate Communicationsno datano datano data
Catherine Scarlett
Executive VP and Chief Ethics & Human Resources Officerno datano data0.12% $1.7m

1.3yrs

Average Tenure

55yo

Average Age

Experienced Management: NBTB's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Watt
President3.33yrsUS$2.17m0.19% $2.6m
Martin Dietrich
Chairman of the Board3.92yrsUS$179.79k0.29% $4.1m
Andrew Kowalczyk
Independent Director3.33yrsUS$102.28k0.0083% $117.0k
John Mitchell
Lead Directorno dataUS$125.81k0.074% $1.0m
Jack Webb
Independent Director7.08yrsUS$106.51k0.13% $1.8m
Matthew Salanger
Independent Director3.92yrsUS$118.21k0.042% $588.9k
Timothy Delaney
Independent Director9.25yrsUS$100.27k0.073% $1.0m
Patricia Civil
Independent Director17.25yrsUS$125.69k0.058% $821.0k
Robert Wadsworth
Independent Director13.42yrsUS$101.08k0.035% $500.4k
James Douglas
Independent Director9.25yrsUS$109.81k0.017% $235.7k

7.1yrs

Average Tenure

65.5yo

Average Age

Experienced Board: NBTB's board of directors are considered experienced (7.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NBT Bancorp Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NBT Bancorp Inc.
  • Ticker: NBTB
  • Exchange: NasdaqGS
  • Founded: 1856
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.415b
  • Shares outstanding: 43.84m
  • Website: https://www.nbtbancorp.com

Number of Employees


Location

  • NBT Bancorp Inc.
  • 52 South Broad Street
  • Norwich
  • New York
  • 13815
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NBTBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1990

Biography

NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services. Its deposit products include demand deposit, savings, negotiable order of withdrawal, money market deposit, and certificate of deposit accounts. The company’s loan portfolio comprises commercial and industrial, commercial real estate, agricultural, and commercial construction loans; indirect and direct consumer, home equity, direct loans, mortgages, business banking loans, and commercial loans; and residential real estate loans, as well as development loans. It also provides trust and investment services; financial planning and life insurance services; and retirement plan consulting and recordkeeping services. In addition, the company offers insurance products comprising personal property and casualty, business liability, and commercial insurance, as well as other products and services through 24-hour online, mobile, and telephone channels that enable customers to check balances, make deposits, transfer funds, pay bills, access statements, apply for loans, and access various other products and services. As of December 31, 2018, it had 151 banking locations and 182 ATMs in Pennsylvania, Vermont, Massachusetts, New Hampshire, and Maine. NBT Bancorp Inc. was founded in 1856 and is headquartered in Norwich, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 00:11
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.