NBTB - Earnings call 3 2023 | NBT Bancorp Inc.

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Operator

Good day, everyone. Welcome to the NBT Bancorp's Third Quarter 2023 Financial Results Conference Call. This call is being recorded and has been made accessible to the public in accordance with the SEC 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

certain these numbers addition, presentation. non-GAAP appendix measures of Reconciliation discussed. be are today's will of In contained the within

would this to over please his President H. is a opening Instructions] John Bancorp's to reminder, CEO, Jr., [Operator being the As NBT recorded. I begin. Watt now and conference remarks. like turn Watt, conference for Mr.

John Watt

XXXX good participating NBT and Michelle, morning, Quarter in Bancorp's earnings you, you for and Thank all covering this call Third results. thank

today Burns; Ondesko; me and Officer, Chief Scott in Joe Chief Kingsley; our Officer, quarter Joining active Banking, Officer NBT. are Financial our Stagliano. It NBT's Chief Information very was President Retail Accounting and Annette of Joe a Treasurer, our

substantially colleagues, south and closed on customers. and to is in XX. integration was Hudson continue allowing complete. and us our the company and new add over on The its conversion impact brought XX,XXX Bancorp navigate Valley. to simultaneous onto the rate We platform, successfully on branches expand to We our we successful, of the the additional acquisition Connecticut Salisbury volatile systems and August XXX our welcomed new core into scale environment interest We customers, XX

growth. also strategic and We executive well this of CEO, Directors. to The closing future management Cantele, our our Salisbury's welcome Rick team successful of NBT Board acquisition for positions

to a take moment XQ highlight activity businesses. me Let our across

leading continue and business observe lending at X results, our growth XX.XX%. we a EPS annualized loan resilient operating First, and growth X.X% at We've consumer our and $X.XX That return of quarter. we the commercial in growth to the on rate third with are diverse pleased owner. very months, equity commercial achieved indirect Through businesses including way. consumer and small tangible of with an auto was

$XXX of As with stated, million. a auto over business strong indirect originations our had quarter

we our each funds including strong, cost at total Credit Our the despite of we deposit of levels portfolios continue Like interest pandemic. seasonal residential experienced during environment. risen quarter, those is a experienced business experienced. third credit NBT municipal rate products. With the the to at customers and rest prior mortgage quality core than to of out perform seasonal lift the inflow as industry, higher-yielding the that the said, deposits seek our grew has better

beta deposit full-cycle XX%, Our at acquired including deposits. is

account We retention levels. continue high enjoy to

Our are need headroom funding plans. and to we have execute robust, our organic sources the we growth on

businesses continued QX. performance fee-based Our their in solid

early acquisition experienced as retirement NBT services Direct Retirement our account that quarter. In joined growth in noninterest we in announced income Maine organic in team was of the XX% of supported and Our July. August, administration third Michael the by O'Reilly, President. EPIC business Total revenue the was Regional additionally Portland total

in across markets Northern the phase In our addition, England. the of the of in focus of execution he strategy organic our on long-term oversee New plans. markets diversification is next expansion our approach Mike's our will those

of of applications. and in spend $X semiconductors new XX-year GlobalFoundries to aerospace Complex U.S. significant federal center was federal commitments. At Department and grants facilities and semiconductor During designated research application The funding dollar New the by New support the Micro NanoTech as be defense Capital District Fishkill was Defense received Commerce the filed the Act. York its a quarter, Central this for billion. a Devices, Corridor in and the company Albany with contract Total The and will development notable. opened training In awarded under CHIPS it the Department other for under Upstate workforce end to over activity York, the Rochester. Advanced announced Chip international with quarter, that associated Micron for government the the produce contract multimillion

economic the the core our growth along positioned As NBT promote the along long-term transformational markets. is in economic platform growth calls, That Chip will as prior across have discussed generated our Corridor. activity uniquely in long-term drive we will Corridor success

months we in the successful focus final the into along into As of head New be our on year, enhanced integration growth offense continued the of Corridor. the Salisbury England, on growth the NBT model, to and Chip organic by occurring the continues

team about associated and well Annette, our the financial a the are will management performance with Scott Salisbury capital with and over greater merger quarter. and We the positioned diversified mix, an turn now risk talk strong practices, in highly call the liquidity business levels, outcomes to effective detail professionals. I and in third experienced to of

take we questions. your their Following will remarks,

you. over to So turn Scott, I'll it

Scott Kingsley

and John, you, everyone. good Thank morning,

some get acquisition. ask started Salisbury Annette? related Annette of results, to the some summarize to on I outcomes quarterly color to the additional with we Before would like specific

Annette Burns

Thank you, good Scott, morning. and

as mentioned, on all X.X XX the simultaneously John the end $X.X We consideration million as converted August the to be the far, of operating we we shares closed of greater of expected and million acquired achieved in As of XXXX. XX% accounts issued by customer remaining to Thus loans, synergies, $XXX value of cost deposits date. realized a $X.X with with NBT merger estimated with have and billion additional of part closing. approximately the Salisbury closing successfully systems our the billion core the

value loss of recognized to which Based the of third In for X $X.X life a be value loan presentation, loans earnings million the over will current remaining X million, As reserves outlined over we fees, we years. estimated fair assumed mark of loans. at on PCD loans, $XX.X $X.X on the accreted income. fair on just marks Page net of quarter, reclassification of million we've accretion our this prepayment recorded

million fair subordinated recorded will years. Salisbury's over of $X obligations, million which amortize $XX of next the on X.X discount We debt a value also

core a recorded base. million funding $XX.X Salisbury's core We intangible related also deposit to

intangible the an We accelerated are years expecting to on amortize that next basis. over XX

a Salisbury of of roughly the these of intangibles impact. items quarter. management Lastly, added intangible, XX in the third customer related $XXX,XXX half X The an wealth to income $X Together, amortize quarter's would added the net these next on million X we years, which list third basis. over pretax million approximately $X.X added our again accelerated amortization quarter expense is

million addition, in recorded related during to the Direct acquisition quarter. the In Retirement Scott? $X.X intangibles we amortizing

Scott Kingsley

Annette. you, Thank

Turning earnings to Page presentation. X of our

reported per third the to share per as $X.XX per Salisbury second value quarter were by $X.XX, in from per at share well of down quarter compared unfavorable was share the Tangible linked the third share acquisition of $X.XX share operating impacts. the as influenced $X.XX an $X.XX quarter were $X.XX share book per AOCI the of of September quarter XX $XX.XX per while quarter third end additional last earnings earnings year. Our in second and

of dilution. The our to levels the loans. level merger capital outstanding equity page the trends end in ratio X.XX% despite AOCI was related quarter last December, at Our close of shows next higher very tangible the projected of announcement

New origination have continued yields move productively to higher.

remains company which deposit of and Our acquired in deposits interest $X.XX outstandings. to checking $X.X its Salisbury. The is time and commercial roughly from well XXXX, $X.X $XX.X higher-yielding now larger from of accounts market no experience continues Total billion and diversified and portfolio included loan money into XX% XX% billion loan instruments. billion remixing very deposits interest of and billion -- savings low total consumer up were

of the increased XX the than generally deposits, linked in deposits cost increased NBT legacy total the quarter, basis to funds impact and acquired total carry the which quarter compared points prior portfolios. second XXX points of and the XX of did cost quarterly interest higher included basis Salisbury from Our points to basis rates

level. In the the addition, basis XX for cost reported points, above quarterly total XXX our deposits basis September was of points of month is which

of included a again interest income also deep looks granularity deposit by summary the at have We illustrates type, X mix of and changes the our customer detailed our base. Page which diversification margin. in and our net

profile results from as income linked one in the Salisbury second was We above a remains strength. believe core calendar the quarter our Third third net additional primarily well acquisition million quarter deposit interest granular quarter. day the $X as funding

expect pressures do of we on are next persist page. in quarters. The the trends to to the income for next summarized couple However, noninterest funding continue

quarter quarter up Consistent quarter from results, of linked million $XX.X generation be quarter losses, million third our for businesses. to historical Excluding continues XXXX. from income our of most revenue and with $X.X the fee our was X.X% year the third securities of fee-based the up second the to robust

seasonal expect in declines we'd the fourth some quarter. such, As

Third Direct strength acquisition Retirement business retirement approximately our included administration sources and from from diversification management company. X. on a wealth revenues core to in plan quarter Salisbury July the $XXX,XXX of completed continues The our business of the revenue revenues be added generation our $XXX,XXX of

noninterest Turning expense. to

half X.X% million in and occupancy, $XX.X the related benefits, to for was excluding FDIC which Salisbury. quarter, the quarter and quarter, Quarter-over-quarter Our from increases merger-related linked advertising expenses also services, the technology expenses. employee second above impact total costs salaries assessment were operating

available were changes basis key of asset to loan On provide walk the in slide, the of reserve third metrics. overview XX of also forward quarter included expense loss the which our we presentation. PCD million the an the quarter-end compared next of in Net in charge-offs an prior X basis $X.X an Salisbury quality increase loans A loans, reserves appendix XX of points million and XXXX in the loss to The for quarter. allowance points allowance. acquired day provision reflected $X.X is

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

cost that closing volatility early thoughts. As arose net uncertainty market accelerated March prepared resulted funding margins. some remarks, pressures, which I has wrap up The lower in interest additional our in and

solid However, income recurring to have stable generate operating from outcomes credit expense allowed quarterly lines, well-balanced quality constructive fee loan growth, results. management organic diligent our results us and

us questions our this position as capital Michelle? enviable may happy put time. we at have that, to we're future levels opportunities. With any answer Lastly, to in consider post-acquisition an continue you growth

Operator

come from question Piper And line Instructions] Alex first going is with Sandler. [Operator Twerdahl our of to the

Alexander Roberts Twerdahl

little of require bit year wanted of couple know a it's going current been main if or additional expansion. you you market now. is be role maybe the mean on of that doing next that, believe what with I some you ran for if investment people. if that John, further I'm what well. sort you just that wondering the sort next bit start, by before off, of the First I you to taking phase talked can your into elaborate have a just you've I little about know very that you going to to a organic

John Watt

did in know. spend I that time yes, for Portland, question. you as And Thanks

investment systems services. the think people and products high-quality in we here I deliver supporting need the to and is

to sort of thinking the things I that team in brick-and-mortar block CRE. see offering, it about our to all Maine are we got diversify approach the expanding I and C&I Vermont. on As you in do a Burlington in demonstrated know, have center our been side, think in basic and market. that's And really we're focus New in in we Reilly achievable, Maine on now platform and the start and it's offerings, ready Michael business to that treasury management we've the off Hampshire. there putting deposit and short small run. strong and we us It's plan investing don't that now, has And time and front primarily our we always possible are and tackling done We've headed. think where Northern the

and So systems. it will be people

Alexander Roberts Twerdahl

Scott, can wondering I'm then through walk have. And you of Great. funding sort you the if strategies just

you you flows of in the X% securities would growth that gets think roughly on loan cash of presentation. growth get the guess disclosed first said or from you cash loan around I the securities I your you from flows based to X% the

bit little a that? do that? the of been that, do you've funding is restructurings, how you things you weigh Would like options that How than consider securities for additional different kind better running. which Assuming you

Scott Kingsley

obviously, And an for us question important Alex. going Thanks, forward.

expectations the your portfolio. to relative in right investment You're

amortizing which, expecting another our reached $XXX the down $XXX somewhere is we're $XX of have speeds X. generally fourth to portfolio million cash going next securities, in think investment year. slowed course, I flows million as quarter, prepayment into in virtually million between have Remember, mortgage-backed

have of still relative expectation productive. our flows that So pulled down been bit to but cash a little

interest the require X.X-year And would portfolio, Alex, in of or the thing not we're the to horizon. kind that's to so restructuring investment of beyond estimate some the a X- that's today the rates our of appropriate securities outcome just launch sure us market. that, our portfolio to ability Given do

proven maybe our your savings that XX organic quarter Do So do low customer -- or get expect that the Federal a a sure. how at we into point fund remixing to to the XX Reserve the at into we've some mid-single-digit checking market time. or And basis repricing instruments remember, moving from good continued to was and their noninterest was fourth checking? A growth? when money ago, pretty the of accounts portfolio year interest I For rates time meeting. piece started in CDs it's some you back point, strategies of bucket at even over year think last we're loan quarter. early checking about each of deposit first and

we mean I on think of bit. So still deserve a it of people there's top some still more sort For quarter? the excess liquidity? that A here seen think in better out was Those some Does or that mind. Have of they a little yield leveling are third out there. that customers their sure. their depository little

in on the thing, the think or a got third And Salisbury basis the of cost out this blended I maybe seeing quarter. in than other quarter. of were pointed only the ago, half -- a generally, quarter we you're that remember, think quarters you third ago so higher funds numbers ours I those X

of So I sources $XXX little if we're good up growth come fourth now for quarter. But think figuring Alex, a $XXX relative shape you'll that a in out. see or you're bit how generally, I in think with that million to targeting the organic rate, million to more funding

Alexander Roberts Twerdahl

Okay.

of is X of should to cash securities but second or of some and for growth security, we all rise, come that the line defense organic the a options borrowing first is hope some third, of funding not defense So then flows, some sale considerations. is currently they have line

Scott Kingsley

It is not.

Connecticut. Hudson the had relative that been where Salisbury to what really lower So have as allows never other expand we've District some the been Valley, for where with for think Capital should to represented spots to Northwest an Catskills Are of and up I geography that markets Do also trying in Valley, of that. is a thing on in of Southern we about you're There's Are same link our example, For Salisbury No. spot in Albany. never was immediate spending there. the our in geography upper the and there rationally, we and Hudson in the there sure. thinking that? productive time probably that some plans in exposure terms we've us places spots And within sort we but we significant franchise lot of of kind between additional have transaction identify expansion?

Alexander Roberts Twerdahl

a the Slide and of from question some what for And Is we're people. When the me. Slide look pipeline seem hearing origination? quarterly other on just on new yields X? new new a given loan pipeline rates the the as and them little then it. where just yields final that I indicative is bit yields, the well kind is at origination the of bit Or Got just X than light of origination higher still

Scott Kingsley

August also little say Yes, the July, September. and that a October. stand there, I at were couple here things would of the a remembering of is third And pipeline bit the quarter Alex. end months higher, we that includes

that. than higher bit little a probably is pipeline So

are point. terms I high. not fairly obviously loan at think is an It's of blending? modest a at in how production all-time those Residential things

of be rate probably little the that a or ending So mix lower. in attached it, adjustable or number has an really may product portfolio an loans why that in up of duration XX rate lower a residential bit to a looks adjustable that explains that years

immediately. expectations do at need They incremental to to X? Not think X.XX make get point Do where that. one your you X.XX well be. Your over of or even time, I or taken. single that of every is north yield costs But path progress are, funding you new given with Today, be offerings? should

Operator

the to James. Raymond Our next question Moss from Steve line of with going come is

Stephen Moss

the on a guys I and you Scott, maybe more just little in here. meaningful end cost funding mix this see margin the of at up quarter difficult. kind makes position very pretty cash and John, Salisbury a following obviously

Just costs given you're that combined curious fourth NII with here margin how is for funding basis to higher thinking September? an overall as now points everything and XX for the that quarter are about

Scott Kingsley

Steve. Thanks, Yes.

The high funds quarter, more the we'll of impact cost the to which quarter to point, the we've quarter. every to your quarter the last people the the the September were end gotten month quarter fourth tell year, full this that expensive So of was unfortunately think hope of of the than in of the say get point is that I first month that.

going-forward So expect more that than now basis. to that's continue. remix And it product-related there's us on of is, dynamic a than a other for change any

of accretion points margin, So in way core We we with a X.XX% of I that mark this kind a of stepped the would -- bit that basis kind a got the [indiscernible] included fourth it X.XX% little was reported of third frame quarter. outcome X probably that. meaning into fourth down quarter's think also is

think GAAP much forward you how on of I so, in Steve, we'll reported basis. And to tell that continue is core terms moving a the influencing number.

a is end of the sheet very want Your we We closing observed. were not on ourselves borrowing the cautious balance position. to of at quarter. the put were in point before We Fed that the sold position still well short-term money and any transaction funds in did constrained liquidity Salisbury the

the on the the So on sheet, some on instruments we balance side fund quarter. kept -- fourth borrowing into including

first piece I compression that interest interest we margin. net may in off in margin itself quarter interest quarter remember, next talk a position our creates on net will net sheet net think about And modest funds but again, of little it of And move of the actually Fed of interest the year. balance result and bit share spend really income. it's that sold a and income fourth into lion's the interesting

Stephen Moss

Right.

you you're deposits. insurance a environment low interest running as about are of kind of still here, at on the cost a That's -- ] Okay. funds [ And thinking helpful. guys well just deposit

cycle days? about the betas in of sense you of if your are through how of a prolonger higher kind environment. Kind competitive these are So the we deposit what's environment thinking

Scott Kingsley

Yes.

So some I to Steve. if it's of think the is the the that a And mind gone industry -- still failures you're quarter, first had engage in has following stay away. That in competitive, that bank the the of top banker. issues not

said regulatory be monthly net think before, reporting of not but liquidity has liquidity I anymore, apparatus, continued net monthly. we've to sources our and daily a

that that, think out I there. So stands

customers a I banks. standpoint. funding markets can we banks have share of smaller a and to The larger of -- terms go banks think smaller communities in from with that group finite with they and

footprint a to our if a tend retention liberal regional and relative be well assertive that's bit national more We depository little be against retain line see. need Steve. found kind they'll and/or or So to don't very up we have bit is overly this competing to for of a we assertive customers. we've and more with retain, most across what little to to before, banks our their of necessary we're a strategy larger The products that. comment made rate

depository very a a customers We institutional, excess and of have that they liquidity, today enjoy at we does commercial have amounts very, that being a That ability yields. base mix or where business have large larger granularity huge to customers not does that granular have market do from look not customer expecting excess our and are standpoint small liquidity. a said, of

dynamic don't think I changes couple that of quarters. for the next So

Stephen Moss

to Okay. move the up in on loan X terms yields quite past X And just the then over here, months. of following

no you plus makes are an longer in And number see see growth loans digits -- X% maybe deals of from are sense? type an to mid-single could if starting a is rate? curious, slowdown we that towards loan headed Just the increasing

John Watt

growth take slightly budget of mid-single We're mind is off maybe our like it's of that. every down now, going the But planning. right that digits jump digits, next our right? that Right And top day year. in to from me moderating view look mid-single one. is middle the what's Let process,

pretty Looking The strong. going business the is strong. at pipelines pretty year. banking into pipeline end the The banking pipeline of commercial

into to be us unreasonable next see. for digits. We'll year? But planning there demand further think mid-single I moderating will don't be So it's

Stephen Moss

And X last X then for me.

that are rate of fixed the XX dynamic terms repricing in next loan Just here over months. the

expected those Just curious repricing, if you Scott? have

Scott Kingsley

Yes, Steve.

move slowdown when of off or ago look of mortgage couple we solar in that people a or we flow that noticeable today, is think a portfolio new I So portfolios. number think just at I X loan billion million XX than And over think But products, we speeds still about our used we for expected said in of next the buy given that car. lower will flows a $X.X And But instruments quarter coming cash time, again. over prepayment in loans, $X.X slowdown time, in residential probably months. the cash a and of speeds. in other people that's X prepayment

Operator

to line with Instructions] KBW. come next is Chris going question Our of [Operator from the O'Connell

Christopher O'Connell

to near-term just the I was the was do close to next a accretion just number just on -- quarter, you the hoping discussion. NIM base quarterly for first where off, core circle I this will back full what well, guess the think Like shake out roughly? given quarter.

Annette Burns

that, and So this $X.X you on the a depending quarter's I is I that's a that will look think like speeds few for proxy. prepayment double quarters what but good think proxy, that's next million

Christopher O'Connell

for just where -- Okay. Great. where a do guys spot have basis you thinking for that was the September? And core NIM, on about

Scott Kingsley

me, but [ X.XX% September, you guess of. ] Chris, if that ], the Don't month tell have between [ somewhere of front X.XX% for I ] that [ would X.XX% probably I core in and was would not quarter's

Christopher O'Connell

Got it.

next year, for this Okay. to point? mean, organic or is -- from or I Great. great? play decline and be And that the shift tends as mix we of quarter, quarter into would And on out hit deposit what this have core funding the that pressure have, the if you you growth noninterest-bearing was more the customers to trajectory past depend next of going the pace get how

Scott Kingsley

Yes.

impact would where probably the core outcome. determining that Chris, our is customers So more say, I of the yes, was

institutional sheet, large wholesale you're granular X% matter it's recruiting Doesn't source and incremental checking them pay into onto you're just a terms or from today you're a large yield really probably tend it's If us for effective at. circling expecting incremental to that. But a deposit that. you're just in wagons very adds whether of pools or balances, down the as whether cash if us, accounts our it's expectation both important balance an to of on customer if source, your banks, that's truly most the of accounts good and ability to well something we've on historically been But on for the be attribute of it's as activity participation. and us, very cost funds a both add

So we're still focused on that.

how into In of deposits that And of think we in they not again, XX type got to duration, XX the first a into instruments were customers terms that on of long X repricing about core of CD probably year to going our in next durations. quarter of portion quarter their month this fourth year, year. went some last some and the

on year. you to we where earning for maybe first we're to of quarter Not than couldn't assume those with at back end it's going So yields we offset little that wouldn't today. is, to question a We in it's are put higher the what at us higher of going their be last that expectation-wise, them that people so even But that much But or declaring coming. is front fourth move productively for and the next see something point I that's continuing the think the demand in can of forward. what repricing be year. asset quarter the victory

Christopher O'Connell

Great.

what dollar saves the And of remaining then deal? have guys are on SAL amount do cost great. Okay, the you the

Scott Kingsley

we Chris, fourth probably with and to in here now of the not dollar of September XX XX behind Remember, specifically Salisbury now us have we as days, a quarter. have XX history number. more

sense fourth dollar of the outcome million Salisbury through of we a XX% in real think base me that terms or that $XX we'll a was million. full and helped get I quarter, once have of $X.X at

Annette Burns

around That's correct. $XX Yes. Right million.

Christopher O'Connell

good exploring will like And a overly the then did at going outstanding. using Is have. solid sounds plan you is you building but should a go-forward be forward not of Okay. share it capital in repurchase pace basis? that on usage, the do something growth terms have -- concerning given you fairly you capital profitability It be Great.

Scott Kingsley

For sure, Chris.

because we it to natural start us leave I accumulation, time. -- and natural talk allows I'm We to ourselves positioning been over point that good room positioning to because grow about the think understanding organically where we've of as at sorry, in. today certainly we credit that, we have back our have ourselves like our capital your to

our As the little bit years. having we is a a to pointed your high-value annual transaction, opportunity feature. basis. be is deserve We in acquisition predictable us. Similarly, the excess on use a having more shareholders a dividend open capital really raised out straight now to to an XX think important point, And Salisbury for of for an for we've authorization share able great repurchases

play in may there and I that -- may opportunities into it's is your XXXX. We when enjoying important think they're more find that of not as today. where think robust you organic little bit slower come 'XX are we're loan demand growth are periods probably make as a

to some authorization today? we've productive. of And out the I the funding It allocation got a is sure and if that. our buyback for manageable use a do from to strategy of sure. do the you to capital And think to when hurdle the long-term could that share make that we got you're with those over own are programs. always the actually that, what's sort money government where carries X% equity creep periods had buy company a for But address tax transparent, us assume that to again, mixes to you of stuff. X% we The part toll buy shares, going you're X% that being there cost get your to of

John Watt

fine led same a could level year. the that capital review reaffirm through every Board point go I forward. of that's as and at Scott allocation of if we we And Board the put this week, just the coincidentally, that, And we on too, discussion priority that

So where we're going week the how house we're top proceed. the Board, out to of place this at consensus the and at that's there is of

Operator

Matthew of Our going next [Operator with the Instructions] is line Breese to question from Stephens Inc. come

Matthew Breese

Just couple questions. of model-related a

what had Salisbury strongest help you year to shake expect off on in quarter with then for roll First, do seasonally, only of of the quarter. the but a out expect mentioned income, for of Scott, seeing quarter? the that us also out terms was the fourth Sal? you fee being in Could quarter you with here this Where kind you full partial impact

Scott Kingsley

Yes.

great for a question, that. actually So it's Matt. Thanks

fourth had to $X.X around per or historically, maybe So reduction fee-based revenues in $X share businesses core we've quarter our somewhere million $X.XX million quarter. versus in third

we our some that backdrop, as wealth third business activity-based in you a management So about the billings if do think quarter. in

the We more have in quarter fees first the that and of actuarial each year. third are pronounced some

So that. pattern typically our been that's for

and point is run management more trust of quarter half assume kind it's think there. think base market expectations Salisbury, for fair have a and about traditional added retirement taken. is customers well wealth wealth We quarter side that that quarter Your The in we forward. that I going of said, a But administration being sensitivity of in you from to full rate meaningful plan that in still us. I a and get fourth the in a in $XXX,XXX the

equity outcome, expect fixed as XXX% well clearly, group. instruments that. more the traditional of you use in their today, both there's that's income And equity as the market utilization market is based influence So of a yields probably productive fixed so income some not

in but probably probably year's been, we year's as isn't we're probably looking in fourth all say, last quarter. of bit at down that, as than the the down. quarter we in think saying impact last revenue a It quarter, what because still I little lower quarter to third from fourth the had have third Salisbury it So still would say, would is much

of too we've organic with growth, positive. next net those in your that's quarter you of year opening new quarter expect fourth similar is to a is additional having and and expand second the products an and outcome have our First all geography of X probably in expectation an lines to to expanding that which XXXX base achieved accounts, continue business all

Matthew Breese

way, starting that moving a to parts there a this frame that loans? normalized the Certainly, going all appreciate maybe XX that probably XX How it mentioned of then the of current some near feel the And we I provision. like had could color the provision, point? place reserve quarter. you expect term? kind Or would another on for is you forward, you more reasonable to keep bps do a good there. said Is are

Scott Kingsley

Yes.

expectations, I is get meaningful a from in you probably currently the current economic on our think a mix point. starting are some of change unless where a coverage we fair ratio

maybe loan that couple not sure think at actually again, for the budget we'll or some back outcome. incremental XXXX $X.XX bit had always charge-offs, but that net then $X.XX for of experienced think we'll in that cover quarter, quarter ratio. In to maybe to way things wasn't I'm We growth us of was maybe pre-pandemic third the It were us, it little that didn't $X.XX we or levels a I into that from way, levels. coverage charge-off net and that was that a blended force us cents. we all $X.XX outcome. budget positive we we the look like whatever like more cover this but start that and outcome, net those, quite It provision-wise,

Matthew Breese

New activity. a then, then the on and based another And had events recent Okay. now York another I every like quarter, John, announcing contract, you're questions It Upstate company. feels few just

you're granted training. workforce New Complex being at for Albany quarter, the York about the center This talking creates

to Silicon whole for similar like the Valley a the was what that? similar all, Secondly, Is more to of of you -- remind of could First effect what's everybody and GlobalFoundries go you gravity And more of companies up a the be York? there? to existing see growing do or already enter more to point to to snowball is companies going this becoming as region as slow as Micron, much moving Upstate expect significance area? a New

John Watt

I So the appreciate to have that discussion. opportunity

economy the York seen in Corridor lower years to have important Central markets which believe of NBT how transformation know billion unlike New is GlobalFoundries New we York, York. to the that many, and drive You X of our in Micron many Hudson in we in Upstate are Chip economic now York Wolfspeed semi a and Valley for going Central for on transformation at are core $XXX upstate it New our New and

in inside here. The the lot in I'm as going Silicon is to has NBT of the work to one by use is Act to Micron. radar. planning York Micron It in not politically and that's believe discussion. Am below to filed be the allocation are of students the no, So the on, be Senator raise job Valley, growth, am I the that things increase job increase County going of new in Clay going acted that. York July, that to it like doing and that Central New Micron Schumer from population who and we has going to like of Onondaga of of happen. But going and what we're that be universities lot of around And because in New is the it there application support we say far go to this a average retention the We on opportunities plentiful. salary CHIPS New can site by have to from all for it, I graduate for suggest the growth, side Department momentum preliminary going the to Commerce the the There's on a at of say words like and Upstate been optimism year-end. aware be colleges will visibility likely and work thus the York. this is We're is going

of initiatives into New is semiconductor support right. on So this market There to company the a global is this or in or and absolutely there of related being -- been years. semi company drawn is Micron, the your Capital in in Population growth of our top there That business in is going again, has that contract into the demonstrated have retail continues in bookings, down business, support have analogy. District that enjoying sits regions, on growth expansion -- those season, expect more with each I a footprint like New of good the snowball customers business that New insight over lending and this be NBT the last directly hill Greater Upstate we York word activity, in Central big snowball what's Saratoga, our a that I who increase for GlobalFoundries in in research businesses, you're corridor many as and expect we I'm on Upstate continues. additional into years And and grow. And XX momentum in and already that many we the York. to industry business, positive. Every and growth supplier sorry, are would Wolfspeed, opportunity. It who would roll who GlobalFoundries is other quarter, with in wealth in insurance our the to semiconductor likely X York commercial

there. the organic that the of we stop you why So strategy growth run and transform at long believe I'll But for hope growth significant flavor a drive a and will have I NBT. it's economy key

Matthew Breese

I all appreciate Well, color. that

we've Just topic. to insurance different a fee with ways be a strategy specific. moving on businesses, income More to of seen parting recently, bank companies

hear businesses? and of to I know these this, I whether just lines path see wanted to suit answer two might a on follow but this think building of strategy the you not continue we or I or cents

Scott Kingsley

have discussion. Yes. Matt, and you had this I

we sure. that businesses that stuff. on we're activities other still sell organically space, small It's we extent and periods revenue where firms our small time that's So bias growing bolt can or same get to the for opportunistic about generation to of difficult these in

potentially opportunities. about up that hard why understand cross-selling I say, that end talked several it's look the admit level, last for unwinding relative that couple not you've have multiple in to these that. agencies, at announced years been those revenues really stuff levels on million to worked I'll large You $XXX the for and those institutions

to think can this of businesses if and for strategy, of -- think is we're kind scale that all profitable can businesses each we continue today. the for create today scale we in organically forward. The we think going productive to beauty those us have grow in, I we about us

generating really, So opportunities huge obviously that a it's capital off folks the grow just right the incumbent really the find and businesses, those institution. comes we they're organically like to product upon of continue standpoint rest cash to from flow because the for us and the to right

improve grow. are touch So those deals not lately. in a our and sure I'm the today the seen you've world than And interested our and side Arthur big of is we what announced headline so Gallagher bias people are on continue to businesses have. smaller their

Matthew Breese

events my press the kind a the out figure get you else obviously, on just horizontally a any fee doing and knee-jerk look rarely businesses, analysis. And to the that. a follow-up. of reaction release. years actually Frankly, appreciate I of from happen, then some just my From seat, with these is has one, multiple of seat, very business in sort parts who income

type an multiples asking or you what So a in feels or admin? plan of deal types those can for a a recent What What today's but those a are your flavor time, market? on not and retirement I'm it specific in plan wealth retirement give wealth market insurance businesses, on of us for first normal multiple for multiple have like. go for don't the in multiple, we we necessarily management have admin business. the case,

Scott Kingsley

or I'm that going perspective have been involved -- again, the think always always assets recurring they're sense historical the side fund there fascination -- of Xx I that size to on well. repetitive in typically, that this there revenue space, equity was have But as processing Yes. those this management some was in of maybe just businesses the multiples depending flows in a side X, activities with assets. transactions. because, accumulate you was there I've or private that more the thought are who because they could I think their the from X.X and Well, hedge I'll that those that you have cash give administrative on be firms demanded or the

is processing businesses our we're fine in and find we at we're what think good that. I with

agnostic. business, in our administration we're plan asset retirement So

from a at just us more culture We taken It's embedded in business. good of with people's anything us standpoint. the platform, geography Wealth for than HR the functions we're that. are is processing and into we've it. that place always done the embedded We've of core bank. of the line And

are already in but customers only people we're say our would communities same in Our thing in. And of the about bank participating not I influence our centers field our the other servicing insurance. that

customers. with have strive to to continue We good a cross-sell our

effective and we're do business, of more platform that's progress than to we're side, small in it. kind that but repetitively on working making on been is the more a very insurance We're the productive that. the else, it, consumer finding the On side small commercial working thing, on some elusive on side anything

way. Unless don't So frame it long term we portfolio. for I are we think kind would this grow of our those organically can businesses

Operator

I'm Thank would to further over the his turn remarks. And closing Watt And I back for you. call like to showing John questions. no

John Watt

everybody's momentum those time. this NBT and Appreciate great Thank you, great Michelle. morning. day. Appreciate into Again, year Thank move you all behind XXXX. your for questions out time about have Thank we this as the you. close a

Operator

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

Have disconnect. may You great a day.

NBT Bancorp (NBTB) 25 Oct 232023 Q3 Earnings call transcript