Earnings call transcript Q1 2023

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Operator

Good day, everyone. Welcome to the NBT Bancorp’s First Quarter 2023 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

a certain these numbers addition, presentation. question-and-answer this are session. non-GAAP conduct follow we appendix measures for Reconciliations At in participants all that discussed. Instructions be time, mode. are a today’s Later, will will of In listen-only at contained time. will the within

a this call reminder, is As being recorded.

please turn H. begin. NBT Bancorp remarks. CEO, John Watt, I for to Mr. would President over Watt, now the conference like opening Jr. to his and

John H. Watt

Good quarter Thank you for Bella. thank you, morning covering all participating and call earnings NBT in XXXX our Bancorp’s first results.

earnings today expenses on common our Burns, Officer, Scott and operating average results me we securities assets of XXXX, first a Kingsley; return $X.XX, Annette Joe of merger average tangible NBT’s Treasurer, return environment, Officer, In Ondesko. Accounting for the excluding Joining of Chief our volatile and are with Q our and pleased Financial XX.X%, macro Chief per share X.X% losses. of including equity on are

X% are operating drove are them clear residential our all the commercial businesses, auto markets growth annualized the navigating day. our In every with we banking, the indirect and that customers us serve contributing. it solar to we environment, banking, is helping and successfully challenging business loan on We ground

all across pipelines Looking lows. strong consumer moderating. commercial our are are time remains forward across quality and at loan Non-performing the platform but are Credit active, businesses. assets

base this our the report about is QX of Scott growth franchise. diversity deposits. to growth happy both of deposits seasonal driven about our hallmark granularity in of the talk We’re that by grew and more deposit and will total part that core and today in deposits municipal

and enjoy our we liquidity are strong. In access and significant addition, sources, to capital levels diverse

slides. We accompanying provided detail on the have

the did March to our stay margin broad the first interest and in relative peer XX%. With in experience positioned to to a our as competitive due cycled of deposit to NBT to rose that of modest date actions said, end group re-pricing pressure beta that market net are markets. quarter Our the

five The York to with out In to chip connection plant in the the work and Micron swiftly fab bring on up to build growth Mohawk chips corridor commenced to moving support with planning fab multi-year NBT Wolfspeed In has support beyond, and the contracts chip next continue continues. New the of its Central the and necessary of the to uniquely Jaguar support to addition ramp New and Mercedes-Benz is EV our growth. complete up positioned work is York, new customers its will vehicles. years corridor the ground. The down Valley, in to for the plant over economic that

progress Salisbury the we in making April the to of quarter, merger milestone. approve we with execute On on plans, and are During our our acquisition Salisbury This particular, XXth, significant Bancorp. and planned is growth a continue positive long-term to towards voted NBT. shareholders

named late New U.S. bank Of one As Best we subject by State. for transaction quarter we was month December, to the York Forbes, based in has banks in of regulatory close the This of expect XXXX. to announced in this highest-ranked course recognized NBT the NBT approval. second Forbes Banks

is times, affirmation efforts. excels During this our and volatile designation team of our

is our XXXX. in positioned periods So economy. in well in to NBT our Historically, difficult same performed do is has the [indiscernible]. company team The

take we our speak I’ll the to in to you Scott’s turn performance your quarter. And remarks, about greater will following now to questions. over detail Scott, first in financial

Scott Kingsley

good Thank you, John and morning.

was per per to earnings securities combined first the share losses. $X.XX $X.XX page results GAAP Turning $X.XX our excluding and acquisition share of our quarter of overview earnings share presentation, expenses per and

fourth linked $X.XX were and of year. first acquisition than impact a last quarter below and share securities a $X.XX losses, first results the quarter share expenses quarter the Excluding the higher of

improvement interest first organic Fed loan the of from was yields funds quarter growth solid net and in continued result rate. The prior in from year the the the income increases XX% higher asset

Our up XX was the quarter quarter $XXX,XXX recorded $X.XX quarter the of per provision net quarter or was in the XXXX to the first of difference. in first X.XX%, loan first XXXX. margin loss XXXX share interest a from of million basis $X.X which provision compared points of expense of We in first

at March XX March coverage of reserve XX, the of Our X.XX% at last X.XX% X.XX% December and XXXX compared stood at end of loans to at year.

up both next our volume included yields well variable were $XXX in rates. Total reflective commercial outstanding consumer higher million quarter fourth page XXXX, deck rate yields quarter loans. of our in basis new trends X.X% points were the portfolios. XX from and up shows as for loans on as or and the higher The the in of growth portfolios Loan

and Our loan diversified balanced commercial billion consumer total portfolio very of evenly $X.XX between remains and outstandings. is well

the higher point primarily more rate-sensitive market or customers. instruments, last a $X.XX from of yielding treasury fourth off-balance The decrease many down are managed first in larger X.X% deposits In move of to concentrated which many of year’s us. excess portion the NBT. which linked first customers XXXX, deposits their for were opted the million up $XXX was but was short-term sheet by in were liquidity cases, quarter high those billion of from of Total into the end quarter, money quarter from

has remained successfully Our continued first the and retention high in add to relationships very we quarter. operating core relationships new of

balances declined XXXX. from the are Although than XXXX, quarter higher of early deposit first have still they XX% pre-pandemic

the year, last of net position, this borrowing a an During into overnight the fourth first to from year. continued which of quarter excess position we shifted liquidity quarter

QX linked of compared deposits to increased cost basis in in to XX Our points basis total quarterly quarter. the XX points fourth

points the total XX to in this quarter funds in Our points from basis the of fourth of year. linked XX cost basis increased first quarter

total cost In of funds and for points of March deposits addition, basis our XX total to basis month were were of cost up points. the XX

our a of deposit We granularity illustrates the have also type, which and diversification customer by of mix our base. added summary

uncollateralized compared available In at to uninsured presentation, end. to of estimated a the provides quarter XXX% sources the addition, in coverage have appendix deposits, of and a provided we which ratio funding table our

next at detailed The net income changes margin. in interest the slide our and looks

First two-thirds earning up quarter yields. results moving the linked a fourth third the was below related than million quarter income $X.X of quarter interest net funding less improvements remaining decline in with in days two increases and in to asset the cost reflective faster of that

we granular Although next the for a funding core remains expect net at margin of quarters. we interest least would profile results our strength, on continued pressure deposit believe couple

end net March Retaining XX% been funding total deposits be of has growing our will core element deposit results. to beta XX%. with critical margin of ability cycle-to-date the a interest manage Our through to of and beta continue

non-interest summarized The the next page. trends income in on are

the $XX.X securities quarter $X than losses, fee was X% XXXX. and million quarter Excluding our income lower to million linked the was of up fourth first from

the to year. interchange the management income administration in of from the fourth driven consistent Our third from but million and generation Card beginning debit was business with the Dodd-Frank by in bank quarter. the $X.X plan wealth insurance Amendment growth linked last services the retirement fourth experienced to being subject the seasonal quarter revenue the of Act quarter, Durbin provisions of declined XXXX, first quarter

now Turning non-interest to expense.

which the of of was expenses quarter costs million each year. were $X.X total quarter payroll XXXX fourth We’d to quarter the $XX.X the first expense the operating linked expenses due expenses million XXXX taxes, and the linked the be quarter than Total in merger-related Our quarter, or of number were core relatively in $XX.X benefit were X.X% as X.X% effective the consistent over expenses last year. first has higher operating of March. excluding same compensation were stock-based which Salaries higher million pay payroll quarters consistent above this quarter merit expect several fourth increases, operating with for of of days. seasonally employee next to and

expect of with of and our to merger fill our We open objectives customer subsequent the growth in pending Bancorp. of Salisbury positions closing support engagement to our many

our we is loss walk the provide to On also the loan overview quality presentation. appendix in changes A reserve available metrics. next asset slide, forward the key of of an

again As in release, XX the of portfolios, quarterly compared with points financial charge-offs line within Consistent were I declined previous In selected provided this first of planned the were charge-offs NPLs XXXX in the quarters, summarized the previously points NPAs quarter. quarter is are Both we quarter. status. which to basis concentrated have earnings of consumer the net charge-offs prior four mentioned a XX unsecured run-off business. net summary by our net and basis the data first other quarter in components in

the loans to allowance reached XXX% at loan quarter. losses Our the first non-performing for end of total

those pressure Positive interest on early fourth accelerated last costs, management fee pressures additional in operating and prepared report and first the We in the As quarter market entered expecting thoughts. started XXXX that from to quality allowed The diligent continue recurring March incremental expense some remarks, quarter us fundamental I closing lower income. and experience outcomes despite in arose up continued. of income to solid lines, has uncertainty results the which stable our of results to year. levels net volatility credit wrap funding

over XXXX growth enviable an results as past and continued for of position the capital Our the beyond. quarters consider accumulation in remainder put several us we opportunities to

at to that, you may happy With have we’re answer Bella? questions any this time.

Operator

Piper comes question Sandler line of Co. And Yes, ahead. Instructions] please Twerdahl [Operator you. from & Thank Alex of first go the our

John H. Watt

Good morning, Alex.

Alex Twerdahl

the was what turmoil in markets reaction banking I some in or in the little off, just on events if give of your could us just in NBTs the middle were March. First of some to a experience, commentary wondering of various the to reaction you the industry

John H. Watt

about that. talk to Happy

XXX As something was and here, those the granular. of relatively is here all modest, hallmark deposit is add. diverse you might which our customer that here and franchise, not the relevant. of And broad, see above disclosures customers Average is for account focus a I the base size on obviously in that most

on larger, operating by two we inbound way were the week two were And we or pretty sensitive, yield So were was environment generally rate achieving bank the they stable. very which customers received we talk about but the those a appropriate supportive. speaking all to that in during funds. in the concerned question The did the about their failures, ensuring

wouldn’t the setter the on our the across Zoom on me we that got with they that, were and be CEO they And customers large customer the if at with they right? customers bank. proposition, money of banks, noted value Zoom relationships of thanked base. Those that valued I Several have the that’s and

that. do plenty have a obviously to vacuum And Alex, periods settled here. of opportunities take here, that’s in I in disruption. often, as things ability advantage capital So into down. offense we’re disruption, step my on We that suggested at created comments, to plenty we’re looking as of you And know, of during

Alex Twerdahl

Great. want I That’s your concern around there’s been office quality, exposure. credit on also for lot to thoughts and about helpful. a ask of comments nationally

some also give you what more exposure are why might is from your If different could talk and of of some of be markets the your areas us maybe office concern. that about

John H. Watt

knock Well, just slides I think, on office, in that disclosure let’s a right so off. referenced our Scott

tertiary broadly. in soon office We’re as drama the in those The occurred a vaccine markets, many as return It been not introduced has right? the cities. to of was

any average diversified a and X.X in loan professional detect concern part markets. million. the suburban portfolio the of don’t tertiary we So for are office they’re medical The regionally very and most size, tenants around tenants,

is different have the and being portfolio housing in many very we pretty feel about their largest all conducted stress still for we think we strong. So recently, and Otherwise tests the with managed diversified multi-family the and markets across way by classes output. there asset demand good we’ve well the these that

hospitality pretty that good the we across our in have we pretty but exposure on as corridor. strong us see feeling for is well. connection that chip think about We’ll something been our And multi-family. out that. finally, Residential in we’re how eye with So about plays the future, construction has

some So detect little do right diversified concern in, do we now markets the we a sponsors with bit the with the but of not any all. around and are at of edges strong, we’re material material not business maybe deterioration

Scott Kingsley

single that pretty cities. into New Albany’s add downtown well just tenant, Hampshire of I’ll world, only large our from Scott. Portland, not a back you it’s know just most the Southern office those Maine of and Syracuse structures to markets of Alex, And, lot in Binghamton’s and the

that’s I think it’s very So, something controllable. for us

Alex Twerdahl

level? towards various are that’s trend to been of what that Or XX given XX just have back then up mid-teens, basis on Do just XX couple credit, reduction sort guess, "normalization" charge-off from you to last that pre-pandemic portfolios? And the and to the to Great. were they running basis XX your I point levels the think years, point charge-offs in over thoughts charge-offs of follow over your big are level. on kind of time a going of your where

Scott Kingsley

question, Yes, great it’s a Alex.

that have with So our Financial, are lending our in a you’re frame concentrated I net consumer portfolios would other much charge-offs this right, our way Springstone it been long-term in LendingClub. portfolios, very relationship runoff position. Those

I think over and move But you’ll a see historical year will the really as time you’ll they is as do again, numbers, experiencing run of that by such two in numbers levels that business auto been have good that is employment charge-offs just the much last for the so So think off they what from of I I probably a point, down, charge half. start think move picture will is been see – lines the single-digit of a other characteristics. so a time. lower historical to us back over level from year, but which we’ve those your next casted But years, and for to half over back towards standpoint? indirect much

most two, how just sensitive we One, experience employment. probably things, for reserve we’re these how to and we losses. So

Alex Twerdahl

taking Great. questions. Thanks my for

Scott Kingsley

Thank you, Alex.

Operator

question Moss Steve the next Raymond James. of of comes line Your Instructions] [Operator for

Your now line open. is

Steve Moss

morning. Good

John H. Watt

Hi, good morning, Steve.

Scott Kingsley

Good morning.

Steve Moss

on loan Maybe start off just here. growth

You still here resi quarter. this in the pace had good of growth solar

off kind guys around of in there. updated moderating. to may hear as growth of thoughts long that And or where Just terms level curious I you any

of seeing kind strength Just you weakness? of where are and of pockets pockets

John H. Watt

Sure.

our residential Let me first. about talk solar

now, relationship then a model by expressed level that. with migration the them that a diversify from look earn perspective continue of think have in is that be which underway. to investors we a our to originate, bring how concentration table of negotiation that which part that picture allow into plan could and last us And call There’ll of and we’ve at and that’ll be sheet balance us I Sungage And do our in quarter servicing income our function right here more help to I but several reached think to to as and that growth in time fee servicing that other portfolio the a long-term to and income, assume the investors, to is a bit under role has our on here. that a caused little the add in mentioned next off. level we interest those say, we’ll our

seen even other over substantial respect in activity large weekend Utica. hospital the the and not inside would multi-family Utica, project Wolfspeed New growth, for on for if With corridor multi-family in we’ve going to York, downtown chip in development not the drawing the instance, get on board a we approved for that

do. number thoughtful with costs, all the have inflation, to we all a a reasons, business more I that be to do York. the promising. New want England Central to things achieve In New labor multi-family? moderation return. of would of that’s sponsors do expect So that smart of how we see generally for about costs, of in opportunities We caused borrowing finance And obvious those they

focus history in is side growth right So marketing been effort digits, a more a big that last period. think a loan this should very the there. mid-single think which moving quickly C&I and we’ve particularly above now we’re year, the for on our I and in New was got And it in With targeted the us about said, has England, year well we normalized median. that

Steve Moss

here, given the about just here, of in just kind of the that on were in month funding different how of then pace kind are of of you way terms And costs I environment? a hear decline margin thinking margin much the Scott March, the our you for curious

Scott Kingsley

would of I that on frame it was interest and this needless it was that side. than say, to January Steve, in our net way kind So differential margin funding cost the higher March was in

that not or quarter, hits portfolio here picking the changes bit The we push up of are variable replacement and gave rate first We sheet. one yield earning whether funds week. our but a volume next commercial asset new little get volume re-price in we little a a bit us another as ton the Fed rate balance of

bit a we that. So, offset to get little of

of I yield X% probably that got the get cost then quarter, XX improvement. if will kind our of unexpected the of question month much how for frame not the it to can funds is, March fight-off that asset during way [ph], this with they of second and quarter for the we that

for So us. question that’s real the

going are books the portfolios. new on our yields I to at the all think assets across of right

portfolio. reinvesting investment We cash the into today are not flows

flows $XX a So, we’re cash million of that to month somewhere $XX taking off on side. between million

as offset that the yields are are portfolio. respectable that using borrowings We’re There today. investment short-term to in

leave available think – we’re mid-single-digit because are for we’ve I our NBT. which think for excess opportunities, again just loan tried seeing I to again still John’s to point liquidity growth, fine

Steve Moss

Okay. thinking That’s re-pricing of also the think on terms how loans of what’s we it’s dynamic to XX% just pace variable about kind side, helpful. and that loan here And curious, of maybe of just but loans about in are forward? re-pricing kind going of XX% the do just fixed

Scott Kingsley

I the a our that that rest that think variable, of across using remembering of most portfolios outside what of are commercial loan fixed. we’ve are because been adjustable does our loans portfolios have are proportion Steve of

solar residential largely So residential is auto largely fixed, mortgages indirect mostly was fixed, fixed.

that So $X one-year amount neighborhood total a think of perspective, of period over I from change. the think to that assets our of we in the re-price about be billion

moving the in terms addition is re-pricing. of with that to opportunity portfolio that in variable rate rates, So the funds

to X.XX% now right cash flows of of down they line that our expectations not in our higher, in There’s their almost on little all of runoff cash that might And kind quite with have. to slower about huge think a Have where loan it. frankly, Does bit pay does. touch the portfolios, basis, how of has we definitely which forming in mortgage. down. flows NIM probably mind, slowed off But means growth that’s people contribute a legacy a slowed be portfolio a

profile our much us wholesale the of in in given have market, – natural for the cost small in of our so the profile. it’s to all wholesale getting but funding that right we in now market funding, funds just think pronounced portion the in I difference we’re more essentially deposit anxiety a the inflection is

Steve Moss

here. terms in office one last one then And of just on Okay.

wondering Just chance debt the on LTVs service portfolio? if the coverage guys or you office have any either

Scott Kingsley

that can some haven’t get done portfolio. We’ve that to we reviews XXX% you you we done Steve, review, detailed We get offline. probably but can portfolio very in numbers. those a

Steve Moss

All right. I Thank much. you very appreciate that.

Scott Kingsley

Steve. Appreciate Thanks, questions. the

Operator

from line And comes KBW. Chris the your with O’Connell question of next

Your line is now open.

Chris O’Connell

Good morning.

Scott Kingsley

Chris. morning, Good

Chris O’Connell

HTM I was hoping the portfolio. follow-up guys to upcoming for remainder duration Appreciate could cash portfolios? you hoping securities what I on for AFS was the color and on of XXXX. the was the flows the provide the

John H. Watt

Chris, us weighted years. all average So five across for portfolios around in life the duration

Chris O’Connell

was if guys for I March. good And wondering Great. had NIM you start

Scott Kingsley

Month in range. of the March X.XX% [ph]

Chris O’Connell

you be was year, remainder Okay, for an total would I of expenses give mentioned just the take great. the then that flat, think is overall that or guys expenses? on basis organic expense? And Or compensation

Scott Kingsley

and frame it So, overall, this Chris. here’s would I is think I how

getting and hopefully mentioned, foremost, closed. Salisbury ourselves obviously, as preparing the pending transaction First approval and getting completed we’re for and John regulatory

some the of items. was none and carried those slightly the what first merit include basis, equity expense. my core change I And But any in would a around quarter. payroll expenses, So contribution anything tax comments first quarter third related of line processed compensation to of larger the from our relative first call that on Salisbury

tax actually the payroll the quarter thinking into we’d two-thirds merit of days fourth second, contribution same. and be unusually slightly a of in change, of going are level lower number every XXXX quarters, the the third in that So payroll and about second

engagement speaking, the incur charitable run of Northeast, contributions activity be customer about down the in first quarter some a we So, proxy but of I tend think, of we based the higher go think to activities our and before quote we the those quarters, some relative think the I to costs the things some next seasonal in year, a second few in think in months those a of is as bit winter of as but costs based Salisbury. of half generally and core that the our little in bank some rate

Chris O’Connell

any this different net details Got type it. or around what And close, merger That’s anything updated given actions items any expectations close? of the margin of expecting helpful. the other just on change impact deal Salisbury merger do and the the sheet balance you’re will close, meaning the environment is kind this now that on you be interest again in there or with environment, estimate

Scott Kingsley

Yes.

back core in announced bit when changes December for than announced So probably certain interest that December. what Have we bit. similar we’re are little today Chris, in a assumptions we asset October our were in underlying accretion, deposit we the there transaction little about generally very terms we rate of to similar to it would what very, intangible, But classes, how Has proportional used higher been when in a in estimated sure. we probably have feeling speaking margins modeling, today. in very modest

their of been certain accounting In sheet Remember purchase actions, through standpoint. as the marking talking were balance we’re to working fair from we’ve entirety balance if transition purposes. with there those of Salisbury opportunity terms an their for we’re about value things folks, sheet

certain that. like something has think So their that the in of talking in speaking, don’t liabilities we’ve if we assets securities But elsewhere long-term we or generally there’s benefit, that about [indiscernible]. and portfolios lines been

Chris O’Connell

anything Great. [ph] it. the And good there Got quarter of is rate is a picking up that me, relative unusual run that for prior? one quarter this kind from BOLI one to this last or fees

Scott Kingsley

death-related of the benefits Yes. We quarter. a in had $XXX,XXX probably couple

Chris O’Connell

all Great. questions. my I taking Thanks for had. That’s

John H. Watt

Chris. Thanks,

Operator

Your question Breese line of of Stephens from Matt Instructions] comes the next [Operator Inc.

open. is Your now line

Matt Breese

Good morning.

John H. Watt

Matt. morning, good Hey,

Scott Kingsley

Good Morning, Matt.

Matt Breese

sense you missed I through on year-end? Could this. loan projections overall growth give Sorry, for some us if

Scott Kingsley

sort Residential, from X.X% had annualized that so one take slight of for that expect probably But that’s than higher opportunities that do amount year? I’ll we’re Yes, the I the first the of overall range contribution X.X% but year. on balance we in Solar in for think basis do. John, to feel the I we a still and a quarter chime-in, free an X.X% experienced to the would Yes,

Matt Breese

Okay. you yields that’s say versus, moved often consumer bit about resi yes higher, no origination page a new to categories. in changed talk and now projects five, as you’re you’re ratio you and kind deals across I’m on saying what now on that then, you have days. impact loan having growth? the XX of little months that Is underwriting And commercial Can show to has and ago? rates a wondering, there what how how just XX versus these if there’s a change and of

John H. Watt

about me that. let So talk

So relationship. the of that side, right? deal length relates and total to the is custom, relationship On and every one-on-one negotiation the commercial is the

making yield our they’re at is more I’ll CRE being go return to it sponsors the their profitability with now of and say in like thinking the What guidelines And their capital sure thoughtful relationship about are in the opportunity. under managers that returns are appropriate way. each us, circumstances. certainly right and the respect with So into appropriate allocating they’re particular, on we looked overall on and

is, So of the or probably discussions is those lower. volume transactions

be understanding what rigorous And of funds loan cost set of yield sampling side each we price to what consumer that. those products. And from the on around that us should the the comes and the given the with going that what’s our house, meet and funds. parameters also of cost week is we’re pretty competition every On for and of

a is coming rationalization say away And discussion I and the of of pretty the that it’s in substantially pricing? hold. months heard we taken lots now week. we’ve side the lower consumer last I’d So in degree with rigorous Are has on because no. of dynamic competitors there turning about think that deals a are every couple

Matt Breese

Very helpful.

Scott Kingsley

with would a needless in the the to naturally I that to opportunities core probably add that, you’re where attention funding bring are funding table opportunities, little to that more environment bit amount Matt, more lending paying a this say, core them to attractive. significant

funding the customer just C&I, side, that’s brings So little business, the mortgage for is relationship residential if funding on certain of core that’s a same that lines commercial chase customer on typically harder. a bit other side, the if with

So would right not new but it’s that probably a say bit probably We’ve for now. news. that had I bias a more while, that’s accentuated

Matt Breese

Understood.

XXXX handling Okay. are real rent are just to increases characteristics for higher idea kind that up coming ratios or for found own reacting Have are higher sort up debt increases buffered maybe some rates? XXXX, now, coming service here the strong that they your now. how NOI Are cap rates? coverage any How And renewal of LTVs for then for have as us, XXXX? and renewal from commercial as give loans estate what’s XXXX, were underwriting in of blow back you

Scott Kingsley

to sort five some a with in is right? So far written a the funds Matt, of low fixed zero so XXXX, or, of the as either remember pandemic year that have customer times to of so The that’s that’s good, certain before the those were at you could were those, protection now, in reaching underwritten Fed The rates. stuff some cases, the in so And of other of so not dropped of XXXX rates sitting thing and pandemic. rates start most imagine, even obviously happened if the low points at after the, those you rates that probably swap lot instruments. were

of So protection that. standpoint, with lot our good from a a customers shape are really in customer

there, most of markets, think going yes, thing other is probably little an cap I rates are our a at up that observation I’ll make The bit. in

period immediately an obligations they’ve debt, kind from every that of low perspective. had have is, of in remember, had of rates, our that’s interest carry a and their so And servicing meaningful made But slow they’ve their one a walk. been pronounced It’s on that something got markets. the customer impact time not where very posted overall

a us story. their today unlikely valuation think activity. re-pricing say don’t blended watch on is from because a carrying very have And to we have list positive for it So we standpoint, properties a again, that be it’s a the I of we customers

Matt Breese

Understood.

and the appetite more of Okay. which given the levels Last so any with buyback kind or credit we’ve opposed to than just, and stock one for less capital is quality, that the front seen trimming historically, here just more there. count and on me, just what share

John H. Watt

now way regulator. we that plans in we’ve move capital middle representations here, have are. an that our is And consistent what we acquisition obviously always our through process the with of process a constituents remember in to made including the Well, examine to we’re and that allocation

think that to in are short capital to we’re are closed, look the we’ve forward. these our and appropriate we’ll And perspective going to another the having once we see get once get allocation don’t So and we a run, the finish from constructive what’s I likely deal able with take regulator approach discussions line. concluded been that change

Matt Breese

I I’ll leave That’s you. it Great. all there. Thank had.

Scott Kingsley

Thank you, Matt.

John H. Watt

Matt. Thanks,

Operator

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

John H. Watt

Bella story thank all you, and for NBT quarter Bancorp. the the at taking you hear first time Thank to

all in We’re including in that the looking our is being way, that the a proud we’re rest way of shareholders. of year it, constituents smart and of forward favorable a offense on the for to NBT, for doing of

talking to you quarter. So for Look to forward again, in thank you next the participating.

Scott Kingsley

everyone. Thanks

Operator

our concludes you, Thank Watt. This program. Mr.

You day. may disconnect. Have a great

NBT Bancorp (NBTB) 25 Apr 232023 Q1 Earnings call transcript