NBTB - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone. Welcome to the NBT Bancorp Fourth Quarter 2021 Financial Results Conference Call. This call is being recorded and has been made accessible to the public in accordance with the SEC's Regulation FD. Corresponding presentation slides can be found on the company's website at nbtbancorp.com.

Before the call begins, NBT's management would like to remind listeners that, as noted on Slide 2, today's presentation may contain forward-looking statements as defined by the Securities and Exchange Commission. from differ may results those projected. Actual

Mr. is certain these Watt for numbers addition, presentation. turn Instructions] this the remarks. non-GAAP like to his would appendix and measures for Reconciliations [Operator CEO, call begin. reminder, a Bancorp discussed. conference be As recorded. are to Jr., please Watt, today's I now will of In being NBT contained President over the within H. John opening

John Watt

from call you. XX York. and Thank All Bancorp's And results. Norwich, for and welcome fourth XXXX below good New degrees right. And participating morning, X in covering quarter you thank year our full earnings NBT

today results and consistently as to share Treasurer. defined Ondesko, me Officer; our report progress Scott our in Financial year. by NBT, per for great and the Chief as $X.XX Annette the achieved we very a Joe Joining At well are pleased for earnings year quarter $X.XX and record Kingsley, Chief is building our Burns, Accounting we momentum, of Officer;

continued is Our consider from provides tangible X% per up This share year-end. drive prior the with with capital to NBT's investments optionality as us strong strategic book we value position growth. foundation

markets it recent a to in and continued In dividend, forward. March welcomed business Yesterday, surge, the $X.XX would the service approved our is services, year-over-year. businesses of Board Yesterday, and in and optimistic. a our our newest quarter. the and Sungage payable and With at achieved their public over also a years fee-based PwC. commercial higher our exceeded financial with commercial former to we business consecutive of growth, digital XXXth with despite in to X% active, consumer that XXXX, the our the finishing strong success dividend new the quarter, excluding valuable adding levels director, solar embrace end and with customers Heidi's is Loan look sentiment than the year. Board Across guiding payment, Our fourth XX our increase of experience prior perspective Hoeller, COVID on adoption. AUM billion. NBT the And Heidi fourth $XX be forward accounting AUA XX% our XX, $X.XX are partner and PPP, discussions was lending customers

our by team about So made optimistic at dedicated my our I'll could the success We conclude and remarks the possible. it that well NBT emphasizing who talented be XXXX not was and enter positioned more how us us walk And now through on yours. a XXXX. more basis. detailed he'll over I'll team financial as to has we performance it's Scott, turn it Scott,

Scott Kingsley

Thank morning, everyone. and good you, John,

earnings Turning X presentation. to of Slide our

of XX basis recorded related of million period. for quarter, to the compared relationship that the points one in of all benefits. expense points been X after higher to $X.X a had specifically commercial consecutive operating change our Charge-offs fourth share linked were the level increases These quarter driven by mentioned, offset share strong John and by As above income, quarter a XXXX. earnings the with which of fourth $X.XX were income, was PPP and that basis quarters We previous expenses. reserved credit and almost results loans provision XX net of results fee in provision third higher interest per a fees, to $X.XX, favorable increased quarter with consistent including of prior interest in

X.XX% PPP the in reserve XXXX. quarter decreased X.XX%, of to loans Our from third coverage excluding

in as consumer loans specialty basis, today's mortgage excluding and our we growth to On appendix portfolios PPP, in lending and a outstandings. inventories lending on operating in be in Also, continue of were some outstanding well Slide our performance. $XXX shows We pleased of commercial included in underlying million a declines XX consumer we PPP indirect for core strength as net quarter approximately challenge vehicle another to up the continued in outstandings. trends portfolio, has Slide presentation. reminder, on results of auto the X additional The quarter have as lack information and loans. with experienced our

XXXX balances the Our complete the forgiveness $X.X fees just over loans. remaining. vintage PPP and almost as in have were with total of $XXX with and $X.X PPP associated We and unamortized year-end interest XXXX both lending million, recognized of million million XXXX for during fees quarter

significant We to expect in XXXX. be portion a recognized of these

for Deposits the quarter. associated X. liquidity balances million savings with Customer rates. continued Moving elevated up higher were now from government programs remain and the to Slide various $XX support

X to deposits to in Our continue add we declined new quarterly accounts cost basis points, and quarter. of the

cost see in you'll the that net points to million Net detailed in included in third $X.X up Excess primarily long-term points, interest-bearing million driver. our -- the of included PPP interest earning a continued X, additional as core funding net to on a basis basis yields XX compared income we ourselves income Slide on but be margin. increased The interest and also drag due remind decline asset always changes income. interest value again forgiveness, liquidity should as was and our Next, margin quarter the increase PPP and viewed a a of was margin, XX to low-cost liabilities. modest but be $X.X

PPP present margin productive X those sentiment our we noninterest over We year. deploy more impact in general themselves. inflection $X.X results income. several to upward net of to trends core next of would assets into billion the would the plan stability, Looking in excess liquidity the before recognition of quarters shows as core rates some Slide income rising improve XXXX, earning opportunities growing interest short-term expect the to reaching in of income point excluding experience an later forward, despite

income was in. we of linked Excluding strength trajectory non-spread of for remains up NBT broadly, which and a $XX.X to was our the the revenue, and we fee gains More total losses, our securities million. of quarter businesses like XX% revenue key nonbanking are each

appreciation. businesses trends continued their wins new administration of plan strong and from retirement growth and management wealth quarterly Our market business

Slide now on noninterest X. Turning expense to

expenses previous to drift previous well we've settlement next We operating $X.X objectives. of continued expenses for our consistent continue higher the referenced to support a of the upward again over We'd quarters. quarter. in third expenses expect an and of fill additional expected results the engagement previous $XX.X million operating litigation level were quarter total in quarter, nonrecurring as with a as were incur core million quarters, to growth merit-related the Fourth seasonally operating than increases in to positions including several quarter open customer years. costs did in Our linked XXXX wage efforts related higher-than-historical

to order to advance people, applications our and overview in in investing On to to key invest customer-facing addition tools technology-related In we our we in processing asset XX, infrastructure. metrics. to an and of quality provide expect continue Slide

impact excluding of quarter. Both NPLs and to mentioned, declined charge-offs compared PPP, previously basis points of quarter. I XX this loans again increased points to XX NPAs As the prior the in basis

We improve, our are have continuing of forward benefit but On elevated. outlook those and suggested months CECL conservative much models from thus economic in Slide metrics walk XX Clearly, to than to credit underwriting uncertainty we XX from provide far, to would we observed reserve. been been remains continues the a our better have XX, ago.

appropriately estimate allowance our -- an in loans to portfolio credit risk points, today. the loan XXX of to allowance our our PPP, conservative ratio basis was Excluding

be with charge-off norms likely will drivers and continue return activity to future balance more We expected to historical path the along the growth for of needs believe of will the company. sheet that provisioning

results been XXXX As by us and opportunities discipline everything may fundamental some COVID-XX It's that, net and $XXX sustained considering an With thoughts. last I we accumulation interest shareholders to buying income, have credit footing, time. also solid are time dividends clear these for growth started outcomes results we've answer our recurring over challenging from closing results expense own capital pleased quarters, been exceptional mentioning, at position back $XX at beyond. impacted added income our X happy remarks, of wrap over the fee quality and and the shares. worth while has of to These this that in questions million up capital enviable any prepared We have Stable our lines, $XX historically we're million on XXXX highlights. to you we put pandemic. strong meaningful as consider paying same with million

Operator

first Alex Our Piper from comes Instructions] Sandler. Twerdahl [Operator question from

Alex Twerdahl

Scott, on again, guide. off, said some expense there that and said this Did you I think you I missed that then Can the what was the quarter you go -- trajectory. you First please? over of say nonrecurring that kind just

Scott Kingsley

Sure.

that settlement of quarter fourth higher associated been So was than, third in another for Then company, the conclusion. where we million fiscal in have spending as would are in fees quarters. fourth That in tend we that the giving seasonally the quarter. in higher of charges has little $XXX,XXX third quarters, services different typically and for there, and hopefully previous higher significantly be outside We linked we fourth included $X charitable generally this and professional Alex, litigation we additional the had paid a the had for the worth to second a combined to in to X of bring say, bit things concentration year. recurring that always relative do but some second quarter the the than with quarter our to say we audits, initiatives, just of had nature, no some from some spending costs

the kind third a quarter Fourth of that So than quarter. back point. higher was meaningfully to

that of stuff is seasonal. Some

seasonality Some run we're merit from million of employees to levels in I into quarterly to taxes initiatives little of think them more that including that and equity rolled that the stuff on XXXX, level earlier of changes, awards relative have first headed rate, we're bit, at require year. some quarter what in in of immediate from the where understanding generally in rate million that payroll our higher got a $XX.X $XX.X that a with we Kind deferral we expect expensive modest there's numbers. completion compensation expensing. run was that to do a some our some thinking probably Alex, higher of back We're

fact turning XX it's is out the conditioner on to it June. well expensive on As that a the heat turns as the in -- air than as more when bit turn minus

helps? So hopefully, that

Alex Twerdahl

Okay.

your I'm So $XX.X that's XXX -- kind yes, in sorry, with what are? annual expense to of sort it's X% and growth, of X% million to implies million $XX.X line expectations of kind

Scott Kingsley

that's pretty I close. think

Alex Twerdahl

in I you floats of of sheet, near you NIM and a kind could that please? likely of on maybe what portfolio the us about impact the maybe exclusive talk of the talked percentage rate And hike, rate pretty hikes balance Okay. the just term guide, sort the short-term I the seems that of -- be would some little you think, then bit mean, Great. remind about can

Scott Kingsley

point. Great Yes.

billion $X of closing for assets, essentially that earning that in in which sits of So by in that, us, still funds. billion $XX way, the overnight -- on short-term there's

start kind So is that, you rate presumption that impact kind if with hikes pretty of $X the would any fast. of billion Fed

earning we or amount are on in to We've a on that The expect variable portfolio, index. of or a the Fed level hikes. small $X off-treasury earn of minimis prime a mostly part rate to today, the -- other so the to certain instead loans on earning in about got some would moment extent, of so that would we're LIBOR they're that benefit we tied some from business happens de And banking, commercial of that. number that either slightly and billion the very higher a state also

or that's inflection. to yield And of balance the probably do new environment given a benefit can't in rate all everyone's or piece expect jury that to it. will still asset quite just of as years higher kind assets get course sheets, that's know, "belly at couple frankly, higher is price generation out the probably actually had So rates to the you in price most of requires liquidity that X-year sort on Alex, we've than steeper of to there people on more that X- of we'd with slightly means away. out diligence, total is compete instant that on realize curve the quarters couple you the curve whether cash we to or And expect we the curve. second last over present will opportunity piece of again, environment some it's think half of that actually first of what of nominal. probably significant year significant a our yield flows rate an the X-year The new point rate inherent to discussion To creates." as tend Again, the curve," rising impact the "this of benefit of to the or in opportunity slightly improved the improved be year the of for pretty a I relative that where

Alex Twerdahl

you're really know going a XXXX. charge-offs bit net to be just get not it's final about that Historically, towards normalized and if to towards of on and we're great quarter? heading But to back little a sense, me for fourth kind that one just Great. of I talking I'm or normal this quickly you're of of quarter, bit has pre-pandemic is normalize teetering not kind credit. that's how a commentary. cleanup Okay. that taking you been Was case if in kind the normalizing, whether I'm your to charge-off level a mistaken, lower be get and little back quarter going charge-offs to indirect or opinion? That's wondering of push again through. a then or question on trying in And going the just anything

Scott Kingsley

good one has a that one question. prognosticating. that's difficulty really And Well,

portfolios So XXXX was as expect, has for our lending basis over very of been charge-offs you bit, the whether XX a the fortunate the company might by if last at the combination I of that or dominated old was auto, points commercial took across Alex, modest portfolios. very little our and a of X-year there indirect you amount consumer portfolios, historically. period, -- losses of all honestly, company heavily backwards a Springstone And

So dropped X loss then to basis years the XX with pandemic. points and in we the XX of

nobody not at anything portfolio, is the inherently, or auction. making money and consumer move the out that today indirect there's these to to at because Alex, on we retail cars auto selling number there first think is any starts portfolios. enough So impacted auction losses up? losing back We is probably do on think it again that the

then the Back rates standpoint. losses auto. specifically million Probably. one reserved So see had drift in to had loss the portfolio did a in we you $X.X previous and over And relationship, We continue start to half problem from your more maybe the historical of are in charge-off in a quarter the brought to stuff modest. that we we very that determination first up? that quarter. that Nothing Does on towards about a for horizon indirect little clean for question that year? a

of And bit side. Seeing bit so specialty of the up XX% still charge-offs consumer roughly well for maybe come entire of from? Probably represented the to -- of charge-offs on the the lending in delinquency historical XX% little that of Where’d little the tick norms. specialty those quarter. rest but a a some consumer lines, below

good credit mix. really hard feel we where But from probably I an points XX are So of to with sustain think basis I it's on about our charge-offs perspective a basis. overall

Operator

from comes Zwick Our from of next Boenning question and Eric the Scattergood. line

Erik Zwick

in be mentioned your continued kind growth Within XXXX, expense commentary you would that about investments creeping digital part of up in expenses. of the

in terms this the for Just year? curious systems kind what have planned agenda on of enhancements of or coming investments you

John Watt

last of efficiency That think a in talked -- out Q, digitizes platform this integrated that's X X human X, beginning expense Q, those our with individual we're about adoption, [indiscernible] the another documentation gets doing our one weeks. that we'll into with the I Internally, auto And launched and see XXXX. the quarters Q, second in year indirect a it from resources out and vendor the get the away more that out ongoing. last dealers lot projects associated we in and rolling in across probably we've fourth system first additional platform again, it. the more upgrading of enhanced incur in several indirect to And loans. We've was offering auto have with all as a vendor, rolled past moving associated of and We rolled year. the the

So cost that a little add will add-on here.

of system in an do In there's side, addition, perspective, a on go we the our that the a financial opportunity now is financial from will had some system Scott's put He's how some together. and look how work to improve there at infrastructure to made that on recommendations XXXX.

underway. we're those more high out decisioning will some and access our a as the that, a business of get to that to at enhancements enable quickly projects us making So on platform some banking bigger real-time basis roll more customers Underlying are level, and well. in to

Erik Zwick

the color I John, appreciate there.

John Watt

welcome. You're

Erik Zwick

that in and to me like that you would start commercial it to press of Turning the your consider as increasing, loans. utilization for level XX% normal is release would year? I remind kind used wondering to kind could the demand noticed in go seems to get that loan you be utilization PPP rate you portfolio? And kind of just up funds if Curious hovering of seems of what expect potentially a this range.

Scott Kingsley

Yes.

So good question.

think our balance that will and they've more -- just opportunities had be see They banking yes, historically. of customers. than own terms In for saying sheets way quarter, good and business we than commercial everyone their on I this have liquidity

So cash in efficiency initiative use of have. they standpoint, sometimes from is best the currently next their the fairness, an

is going number up we're levels, of half be that the being So are we different of see the instruments out the people, why in to low the year. that which would a everybody's potentially don't needs characteristically to like for walk see XXs opportunities. But more acknowledged. historical be just at I XXs. And to not said, there that first borrowing the honestly, not utilization would high to to excess think cash for business utilization that's lot

capital the a spending business, initiatives business resulted continued runs certainly businesses, of a uncertainty happened P&Ls. even has thing commitments that deferral other their through to on banking, small -- standpoint from I our they and is think some certain the a spending of have that's might from with extent, in circulate generally that's had to the our medium-sized more

we could a So bit pandemic utilization period bit through moving inflationary get more uncertainty projects. and I an we'd both see think probably less from sort value-added with certainty more with and forward a if to customers of a of relative little our bit standpoint, a direction, a

Erik Zwick

of just loans. be for Kind general what a this guess, today, follow-up that And year? in expectations the at pipeline maybe kind of growth of your mind, look with bit would on a in organic you I as

John Watt

certainly, consumer first. to that. and mid-single-digit So itself we'll than and bit levels have a higher think growth for are I we to Q. internally we loan first good do higher of And be This total really year, quarter, fourth growth we've about pretty and can is enable to targeted us The And continue than previously we commercial. stated commercial. a little this pipelines incent a out pipelines talk commercial the that still believe that will number vibrant. going that. are strong Coming And can the

pretty that. good feel we Calling activity So about high. is

I achieve. pretty the of expect to us I said uniformly they strong And in to hard of going be about with the we Scott that As would momentum. think up We're customer enthusiasm want agree nice rest going little that December, into that that's I bit a soon. year, of of behind planning Omicron, way event. charging earlier, any January, things a great terms heads levels, is because in but optimism and

Operator

from comes Chris question So [Operator the O'Connell next KBW. line Instructions] our of from

Chris O'Connell

a quarter, good So in still that below the fee this pretty increase on charges retirement in pop the plan service just levels. also to you side. There want but it's is start there's solid know release pre-pandemic guys I fees. the in noted

good for in that's XXXX? there's in levels of here if creep of level side? kind to left deposit might there's next in retirement couple the of charges baseline And to on headed service the wondering the that back up pre-pandemic kind onetime reverse plan a Or Just room quarters? if if anything nature

Scott Kingsley

take me head So X on, let Chris. that

So good observations fronts. all on

happen start retirement fees items don't every million frequency" not year. they Yes, administration. of they restatement about happens, tend -- Let's they tend necessary did to quarter. necessarily a don't "annual but document when plans on that happen have but with onetime, necessarily plan they're be people's times, And of that to every you're we be probably $X.X -- some necessarily administering not that are lot

a management standpoint. the the hitting So impact going trend equity an being on bit good of of of a inflection portfolios. retirement if higher and fourth This little administration the of just plan -- rates a not bit based back reside businesses of and both is into that that observation business if from our in than is a highs. And little one on administration obviously, little some that is under probably get The outcome. meaningful under have assets And quarter market get to said, XXXX to fee-for-service maybe start equity-only fixed -- we in on lot all-time But conditions points that would that choppiness some the expect there's improved our on higher the or market their side. management. administration. some those another being wealth was bit part basis remembering an items, income people of And you’d assets we quarter compensation part of is blended

On the of going X things to about, year. kind next of fee for think importance side, into us banking

on service some clearly, of around like have The and going deposit is lot comments that's we that that program dialogue that within most our first $XX there's programs, analyzing John, to our probably people, categories have and may revenues, related one a point. overdraft -- other are million-ish do we're

in So we much area, particular really honestly. that projected haven't growth

of the On debit worth reminding. a interchange couple so things side,

talents growth number actually as of growing line of enjoyed the business in in have activity We're XXXX today are and of we have. close that come line that We number debit levels back occurrences revenue growing to pre-pandemic strong of swipes or to the levels. really

to of the then We've Durbin half starting some X, controls us gets in that interchange midyear fixed and compensation because the that which pricing of of July impact incurred amendment over and a impact we're on year. year, next that million everyone XXXX. elements reminding said, that with of So estimated the the about be $XX-billion $XX

have mitigate from robust combined in lower those we're fourth think a $X done but of still in debit point not at activity invited, we the But quarter, think of of same how the from Certainly it around expectation have forward, something a and time, customer we multiple roughly knew things trying that. that. card coming less to earnings but lot was base certainly other that third the and going just to So million for of have that going of we'll I some about that's pay outcomes places. kind little very our whole activity.

John Watt

an to up that's With for let on that early that fees. available in. also be the Chris, inactivity, overdraft of product, and overdraft, no needs and me recently of always maintenance, position the no to to there, that as no Scott a no because are institution add you not there understands to to serve. I markets teed have no that, we're may it. product financial call that in I balance, asked know iSelect We're this out communities look focused checking minimum the or has closure checking several in launched NBT the account, make subject, who everybody bank access And on this And respect targeted of them. is account the want interested we we financial fee, to sure simple customers no community about

this review acknowledged product not we're our have designation our looking should the whether share modify us, list it. iSelect financial revenue. at at if is all and have options regulators with is of So -- we of impact of associated But way, of we're the near we'll lost any we're existing that expect in offerings, to assured the analysis the we to other available that And hard the as we top and what sources not looking material, underbanked respect when of can them. options would we're nothing right be to that work and are, and make Bank demanding, want able you understand of keep or will but to market as really exercise. part With With the it the what replace working with we revenue adopted that you Bank today, And calculate To what product, from the term. sure on respect sure at and make we an and all we'll make. On by our now is or modifications On to the expect. services to still outcome the

Chris O'Connell

was color. great, really That helpful

Just seems specialty was at growth this a loan take look up lending wanted quarter. to It considerably. that

Just there's wondering driving if particular anything that?

John Watt

Well, certainly, is. there

about through a Boston we've we've lot and we're past, growth of a funder days XX Q, end based be headquartered year fundings have while great a fourth And the strong little the first And of we there'll FICO well the a are the those each investment replenish the in the high and lot activity are many as pipeline. seen that us of very the we’ll carrying As states But bit a of of very where this loans X And year. pause there. be expect the that months in we experienced we significant would perhaps the and additive is we'll forward. to And out invest be well the significant positive perspective, talked install through a originated warming environment a where this perspective on attractive, during of levels. in in it’s prime also where and of related to with the performed us, in continue now. their lender, well for the in as nationally and from and Sungage, partnership turned and so portfolio and in incentives sole ESG the a credit called focus super line community the solar is focused network. in we pandemic performing prime one go a an is global it recession environment, extremely depths The from and

Chris O'Connell

about then on utilization thinking an just and kind get forward? ideal I how hoping or target are authorization Great. the of buyback was levels And capital you the to guys update going of

Scott Kingsley

Great. I'll take that one, Chris.

have So front out in assumed our was company. were award we We to equity bought do of to relative Why creep that? thousand we for would we a the did hundred in of trying quarter, to shares. programs share the going get fourth XXXX be couple what

in and So accomplished comparisons year-over-year a keep that. at on your basis, words, other we least think like we kind

the share to relative top capital forward, us. not are Going buybacks priority utilization for

I of dividend opportunistic they relative us. they probably and they standpoint trail And from opportunities M&A organic capital our to trail for award. a considerations think potential trail probably evaluation support growth

that's where So -- beneficial but there are shareholder? There to the times are. and appropriate

an we And market out to we start like where about with similar have would good to very think potential that time think dilution disciplined authorization we're dilution We about impacts the of think buyback just periods we characteristics so the some associated transaction. acquisition. And it's M&A that more there's the characteristics reasonable. associated with be how to that an housekeeping there, about make from

And I from this that X-year would kind successful creates don't of was period, with program. bank. ton PPP incremental to for of again, although that necessary million One for we should say So to the we big I a pretax program $XX tool very that acknowledge in our in itself. it's is use, the a belt. opportunity it's have when there people, over And just the the our remembering both have plans very, generated earnings thing pointing

tune you we that actually the if was said added to didn't million million, or to of by that plan even to have. itself, capital we program $XX added So capital $XX

done in for something time, that. positive point it. have in a buyback we both certainly exhausted We appropriate, our same the of was not So that at But have certainly to date, could and customer net clearly or one us for much that of not base. a say utilization

Operator

line Stephens the from Breese of comes from question Inc. next Our Matthew

Matthew Breese

to a second. lending want back I specialty to go for

it's then that think expect yields loans, on is keep secondly, specialty with hair mind? and at are concentration there a outpace about And that loan commercial XX% just lending in of we over segment these mid-single-digit the should to what increase? potential segment? to the growth of I as in -- Or loans should bogey, we First, limit now a we that loan the this think

Scott Kingsley

great Matt, question. So

buckets So -- multiple frame in here for try a let's let me that second. to

outcome. business. like that's really a has business, digits that of than as portfolio portfolio closer combination the -- today, it the same a much that's side, Springstone since maybe more in at in much above the that that's specialty we purchased And of down now way blended that worth what LendingClub to. of the And mentioned. think better terms to other We that that higher point of profile in taken. doesn't profile yields Sungage Springstone closer a added Your were they well thinking currently those time, portfolio, much credit relationship or typically -- the But $X.X on because And we're but almost with carry any -- they it being is credit billion $XXX just a about mid-single John that in is lending that to a yield We're than running of number. sit we're million loans XX%. point

basis. longer-term loss So on content Concentration lower bit from getting little new but expecting we're a of good a rate really question. a of our a a level rate lower exchange standpoint, is growth we're

balance solar comfortable in enjoying lot we having a should we're capable securitization Sungage. can to So confident through -- give be the more that's until get meeting considering around But be? meaningful think we're level? midst of alternatively we up with? get not not we that's certainly a space, that, -- if we our that increase other our alternatives. all funding in some there. on one a now, balance other really of And opportunities the are we with the rise What Did been increase can needs if influx when whole financing good partner, Matt? do that If the above other we're comfortable and even Or some they higher handle I maybe above we Like, and certain And everything we're maybe us get dialogues certainly are of about should of assets number, certain can have you sheet a businesses we I holding question, maybe one? to the there. sheet think have what

Matthew Breese

margin got to it to discussion. I back you all. did No, the go want

kind recent X.X% to And of at plus NII. asset would call you're sensitive if MVP a and So it rate your expected basis point I does scenario, look XX-Q XXX like plus increase interest XXX with of most I moderately feel kind a would performance I beta assumptions there's really realistic. was the was is any just underlying worth particularly flagging? if today basis just any given you solid. on there's scenario deposit if front your curious curious last highlight, underlying kind assumptions front of cycle that I'm on

Scott Kingsley

Yes.

and us. that's it queuing great, up think I for thanks for

happened we not pandemic, to Certainly, that modest the is a little the was to basis every hundreds, XXX, basis next the that in is with did over went as the on you what But XXXX we the very time created X/X of of the as XXXX start inflection side equal. But great back third bit world suddenly us we And and cycle points. sort first the to beta have So by very, XXX more, got of points deposit the for XXX. group single-digit appreciate, consideration of you the again. cycle. in know, maybe hit so the success

'XX. highly will of So XXXX only sheet liquidity a today. That and first Matt, deposit the balance of confident, we're in ton in that in XXX, I needs not competition for terms was Everybody's case a that think changes standpoint rate. enjoys nominal we from have

historically some people be. sheet So core like deposit today, best-in-class balance looks been might gatherers, who not their they had

maybe of first funded, outside were responsible. that that the do Matt, I well. expect And competitors to So enjoy more to once They the is most XXX? you markets promotional is what pretty very very of will I really money CD folks or funded past referred get market also compete, the Whether think this we'll do what who we in jury you think certainly, as we in first out maybe it. XXX, low-cost responsible. they as today everybody our experience probably be funding XXXX be more significant

the the the think race up. is in way the going slower be to to be the going of one way on sprinters be we're So we I aspire We on people down. to story -- think

John Watt

know you've And itself no it's our on been with lag, experience reason there you us our that a execute in DNA the long year. I wouldn't time, to why see and this repeat Matt,

Matthew Breese

a on versus still balance the pipeline in What what's loan books blended margin. follow-up coming And sheet? kind Or of the it we're at negative? average roll-on we are are incremental the positive then yields where today a point seeing on Great. the on is the just are the And the roll-off? versus

Scott Kingsley

a that's Matt. Well, question, great

you to very But actually look mix-dependent right it. we are our So achieved at quarter, you actually have admit think fourth we if we that now. would

quarter not commercial auto a benefit. specialty through probably we growth those had very mortgage go in inflection a and some rate attached lending? that to had we you robust inflection when Have Probably that banking. in indirect So And lending point net we've lines, of the reached in point a yet. reached

answer your let of specific. portfolio question, us achieve in fourth kind that. The to blend it's So quarter the

Obviously, close. on we've investment what loan is were bit there, And lending been going portfolio yield the new we're in not right we're think forward of the but close higher than we're now. on I putting XXXX we little on assets. net quite thinking still fighting we probably really really a runoffs in side probably were

or if we a of year. into half the stability, point third the pushed think changes will I the kind of quarter, points a that I as get couple year over. maybe then general has couple or second indicating here we're of we've first have why in a of probably So crossed say basis by the Fed the and we of that's for through to time, third half headed postured for And there at think the ourselves

Matthew Breese

And Hampshire, Examples me last new now the Connecticut. Vermont, attacked one Okay. has then is Maine, bank for markets time. are over New historically, just

the there legacy any you we and York? some path two, first, then New And envision from X? of strategic these an entering on as curious about think update or So loan And the other the are versus the New maybe Upstate that growth priorities at franchise those about point? markets contribution for of this over organically the England geographies ahead, year just next areas

John Watt

Sure.

Let me talk on in England, I'll question. a take Good New what's little and we'll about that bit the give one. you going color of then on strategy, particularly.

particularly Vermont, in disruption each the New clearly, continue we're and the Maine, And year growth continues drive it this that convert to future. of hire in we've will bankers, New regions. Hampshire, in initiative next and incremental and in that and one on been Connecticut. and So able into will year And executing England against customers those

whole partner supplement stated already our banks in consider we continue. strategies know, the New potential in and dialogues you also markets those those will they As we'll England, And to there, strategically also aligned with growth engage. if

always just should ongoing invest We've else England. I'll say Matt, conversations we New thinking, of are been So that outside where there.

market. And I execution think behind do part Valley, there now that are there. we're in to engaged we're Lehigh to by is a the drive things instance. And pandemic significant for that us, and we've enter worst in routes analysis, several which opportunity of there we the more actively could some got that the able

in on out you of us. Traditionally, East the Route on know, to going XX we've focused New what's eye been an as with York there keep So State.

present However, position State. preferred engage optionality, about and ability we in our I those have Scott from and when talked York discussions opportunities strategic New And time to themselves well. of if Western as present those one themselves, in time, capital opportunities think to our

in robust. be in will the pace more wheelhouse. And perspective that. the several a drive regions XX% Connecticut accelerated a growth color there. and are know of pipelines New in XQ originations those regionally And I of think bunch out New of of the commercial England, which persists, came I in from and was England, we’ll of the And to is -- Just talking our whole uncertainty the more singles continue XX% doubles, think the the in Maine I right

we're over years. little pretty good effort mature more It's Maine. there now terms New So Hampshire, XX up about feeling Burlington a in there, bit of our in

loan will be payoffs the Vermont growth as with deal But there there. in we So still, well. and amortization

hope that to I So color you. is useful

Matthew Breese

Very much.

Scott Kingsley

Matt. you, Thank

John Watt

to Good you. to talk

Operator

the further his showing turn to I I'm closing for any Watt now not you. will Thank call John questions. remarks. back

John Watt

climate. participating for day. good all we the a a today, appreciate and in to everybody. in perhaps forward you thank and NBT again, your in look warmer interacting Well, Thanks, Have interest future,

Scott Kingsley

you. Thank

Operator

program. our Ms. This concludes Thank you. Watt.

day. great a Have disconnect. may You

John Watt	President & Chief Executive Officer
Scott Kingsley	Chief Financial Officer
Annette Burns	Chief Accounting Officer
Joe Ondesko	Treasurer
Alex Twerdahl	Piper Sandler
Eric Zwick	Boenning and Scattergood
Chris O'Connell	KBW
Matthew Breese	Stephens Inc

NBT Bancorp (NBTB) 27 Jan 222021 Q4 Earnings call transcript