NBTB - Earnings call transcript Q4 2024

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Operator

Good day, everyone. Welcome to the conference call covering NBT Bancorp's Fourth Quarter and Full Year 2024 Financial Results. 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 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. Instructions]. non-GAAP appendix measures for Reconciliations [Operator discussed. be are today's will of In contained the within

now call President Bancorp CEO, please Scott opening recorded. As begin. to his and is for Mr. reminder, conference over this I a will remarks. turn Kingsley, the NBT being Kingsley,

Scott Kingsley

Officer, Joe Norwich Thank morning. With this President for joining today NBT's Bank you, are us NA. Daniel. and Good morning, and Annette Chief NBT of Financial in Stagliano, you Snowy Burns; thank me

Our operating collaboration quarter our and our XXXX our year diversified the full diligence sheet, and reflect strength performance for balance the the continue team. to and of business model of

interest quarter, During consecutive we funding more Incrementally earning third productively costs the lower boosted quarter. yields. funding in offset point fourth decline net basis for a margin asset X than improved the loans, our grew profile and

making XXXX businesses of record to income XX% and earnings total a nonbanking our up of generation. for highlight, revenues achieving for each revenue Noninterest be years continued new with

the declared a $X.XX the provide consecutive of shareholders, above of XXth X.X% despite level to higher declared We represents long-term desirable level increases, shareholders' also dividend adding dividend it demonstrates to This consistent dividend dividends and our productive returns flexibility. million commitment already generation cash favorable of shareholders. annual added we equity from $XXX quarter. was last $X.XX and to which our earnings in to capital in XXXX year paid, to our our year's quarterly first We

play agreement investments well reached North. providing we of planned $X.X significant at bank working quarter, including all being Evans milestones Bancorp, CHIP CHIP that In semiconductor New as to expansion fourth NBT to the certain a and to financial in and a uniquely Syracuse. Micron's September, several and the core. Activity site-specific new services types billion Upstate continued announced progress is York along positioned outside in Williamsville living in New York's merge to across an announcements NBT complex with customers as about structural prospects of reached Upstate community semiconductor role headquartered corridor

meaningful Evans with into presence in a Rochester, New position the population, largest expansion into markets of will Western District community Expanding Valley, York. us bank New Upstate it Capital Central with Upstate as footprint of the the New deposit complements and largest region the and our NBT's Buffalo New York, the partnership share and Our geographic is York's in York. natural by market Hudson

regulatory as support the we partnership. to December, shareholders received the who as with required approvals merger proceed well strong the In approval and for demonstrated

work quarter continue closing a [indiscernible] conversion. and We XXXX second to concurrent a toward

team Our and a they Evans and over focused with transition Annette? employee detail. integration with X dedicated belief turn meeting in past organization to and customer, the review these the our to are this fourth results activities that quarter you professionals. reaffirmed talented our At Annette have months I'll with community time,

Annette Burns

good Thank morning. you, and Scott,

of Turning presentation. our results to earnings the page overview

share. per For $X.XX net million quarter, the reported of we $XX income fourth or

a up and the all-time value December our of $XX.XX of share $X.XX per compared from NBT. per earnings third prior costs and gains, of for securities the of another and were book per end merger quarter, Tangible $X.XX Excluding to operating XX as quarter. share the high share was decrease share per $X.XX marking

and indirect Total the trends $XXX X.X% outstanding up shows commercial real million residential in year loans. estate, included were auto growth in loans portfolios. lending our C&I, or Next and page for

$XXX million or consumer contractual other the loans and residential portfolios land that solar status, runoff are Excluding in a X%. increased

quarter X diversified of basis consumer loans. yields XX% and the than remains loan Fourth of $XX XX% commercial billion very by portfolio third quarter and Our well relationships declined comprised is points loan from approximately as earning of instruments rates, yields. asset downwards rates XXXX cash flows partially reinvestment higher a the into portfolio repriced [indiscernible] with of in decrease offset with existing loans by short-term of

slide On total checking million of for time savings in and X.X% $XX.X $X.XX company's Page margin. and detailed deposit quarter XXXX no time our portfolios quarterly cost The X.XX%. accounts. money market points frame. Total The consist were billion or and changes decreased of third income to interest in and and net from December our of X, XX up basis deposits deposits the $XXX the XX% of next low-cost highlights accounts

was interest primary third quarter's and income decrease fourth million the net in Our in quarter. due million income $X.X linked XXXX more was from cost above primarily in demand the the interest net cost X.XX%, mix, increase favorable points a drivers average earning up deposits. interest a deposits the basis quarter net a fourth the of to assets. in of funding in including X decrease the to income quarter prior The was $XXX.X the which of liabilities in and was interest-bearing increases growth The

short-term our the funding Our remains asset fairly more offset that than by with variable requires approximately to almost the costs billion rate point with downward changes liability $X.X which immediately basis us in deposit rates, evidenced in repricing actively to neutral loans costs positioning management impacts decline XX quarter. for manage in as our

loan on yield dependent approximately price in reminder, the from of income potential positive trends sensitive, noninterest $X yield of outlined are flows our the cash X. lift curve. on billion of [indiscernible] The the are will in shape a the portfolio Page deposits of As amount be

Excluding fee lower of company. diversification seasonally XXXX. fourth and our was with previous strength core consistent increase gains the losses, for was years, prior the remains to a quarter. the sources revenue of The than $XX.X income compared our million, But an securities of quarter XX.X%

agency X%. business income compounded and rate demonstrated fee management Our wealth administration of retirement annual lines meaningful a growth X-year of plan the have insurance

and $XX.X million primarily prior driven benefit This higher an $XX.X Total linked operating the quarter, of loan the metrics. million welfare employee were quarter. increase excluding key overview benefits the $XXX,XXX which of and quarter. including XX costs million loss quarter health recorded was prior quality $X.X provision is lower increase provides a in increase an an of million costs expense $X.X performance-based levels costs, the a than by of asset incentive merger fourth Salaries expenses, quarter. above Slide other higher for the X.X% and were in increase compensation. third employee from We

the increase This decrease basis to higher points were total charge-offs to fourth of runoff quarter, XXXX. other the Net relationships assets XX $X.X the and in specifically the a offset loans fourth was relationship totaling which to The estate basis of net by to quarter $X.X commercial real commercial million driven charge-offs. placed prior the increased in by nonaccrual million was solar charge-offs two points portfolio, primarily assets million, from to quarter XXXX that XX of previously was a prior attributable due total partially was $XX.X of net the compared residential level status in the of quarter during in consumer quarter. reserved. Nonperforming into

loan being sheet covered We level be its This the underlying fair believe will real remaining value by expected future that managed and relationship balance growth X.XX% Xx carrying of coverage total than the supported is value loans estate. in nonperforming mix the was drivers of more and loans. continued is actively changes Reserve and of provisioning the of the needs.

consecutive capitalize of stable welcome granular dividend interest operating for of contributed consecutive the the years for Thank capital provided XX The quality net support you interest to trends Net And fee solid strong have. our opportunities, on and income to with our continued generation effectively ability you trends base, are the deposit increases we quarters, and growth income while to our support. in positive may deliver questions to XXXX. three flexibility loan managing closing, In your has growth well-balanced growth, and asset performance continued any time, all this position shareholders, strength our to at risk. margin organic

Operator

Steve Raymond [Operator Instructions]. James. question Moss from our And with comes first

Stephen Moss

Good morning. just trends. off Maybe margin good on the margin here, starting

billion repricing XXX annual Just cash points. curious, call talked XX kind about, the up in of $X in it, flows to basis you past

loan Just is remains curious of kind if trend days? these where pricing or the same that of kind

Annette Burns

correct. that's Steve,

think spot that's on. I

have billion loans, annually. right cash in We flowing around $X.X

We X price yield we expect the as on X years correct on rates. those the curve, to shape that to you're depending typically well. into X higher And And reprice to between curve. of the

our commercial XX If higher new basis our versus points points to at higher. volume rates rate you look probably and XXX points XX portfolio residential basis higher XXX for were basis auto about still

come In addition, right we $XXX expected also cash investment XXXX. around for flows securities million have that in

Scott Kingsley

rates. the question, on rates they in up follow a there's month to of commercial and change to Steve, comment impact change yes, and so the Fed are essentially $X.X short-term within a of funds change of SOFR-based, anytime your relationships and Annette's change will usually So billion

type is X-year the basis generally, X-year change the points about immediately, XX% probably happened comes portion a window experienced probably that's reach and September. But stays down that So year. in those same. on renewal the There of to of quarter XXX that the of fourth since we course a over what that's natural based that of XX% the next or

Stephen Moss

side, up and the there's then compensation on various other. Okay. And Great. side things quarter. expenses on the stepped expense this realize I

are curious Just you thinking a basis forward. run stand-alone guys you rate on of guys about how kind the for going

Annette Burns

Steve. Sure,

about noise levels compensation of a $XX of year. that, had to we X if and the last a incentive think quarter. half $XX other expenses. and think average quarter of that's quarters, little to fourth of quarters to somewhere rate good you're run the We at rate, in last the But the million I that's the look took an the probably the a higher we bit million were correct, X first think place least some at run of

quarter. remember, Just the in things few that to happened first a

compensation like stock-based around removal We have costs, costs and and that. bit payroll little costs heating snow things higher occupancy a higher higher

a closer year to -- first if up will average, then operating million. so $XX to where for that costs thinking on pick might increase XXXX. little in you XXXX full probably the run be our we're took higher, So the X% X% a that's And rate, quarter

Stephen Moss

one one Appreciate And that. Great. just Okay. me here. last for

loss trends. terms of in loan Just the ratio reserve

to drivers curious the was that what of also, runoff, was I a than the kind related was guess of decline a step-up CRE on of a I here. in it charge-off And portfolio. like it thinking the I nonperforming. decline happened consumer bit some in looks realize the that's but Just the of more

do estate you Just reserve on the over build curious, real time? commercial back

Annette Burns

to related to You're of down. specific we that as the coverage correct. directly the in is of release portion reserve charge that ratio The decrease related the CRE loan

that I where that we think that, pretty were. ex look at it's if were So to consistent you with

effect. wouldn't at the are CRE we unless from in So we're expect feel see where that to adequately in that our fourth like something we changes our portfolio. reserved forecast change or quarter to materially I we

the changing. overall, is [indiscernible] So

and $XX If you Solar million off quarter, runs allocation of and a X.X%. they think our maybe about allowance about Club Lending about an portfolio have

other new So then grow of our ratio build coverage we is loans average loans as points. about books, the kind basis the for XX and those in

we is in change of that to having that the mix. So impact amount need provisioning due just an on needs

Scott Kingsley

essentially we've as we provisioning makes other have the things a had of trying that been for a a period in outcome" differential and mix. you're a Yes, everything specialty full of a something you million every and complement if of even provision could balance million Annette's can had to comments, the that's in because quarter. the first all $XX $XXX consumer, running have reserve we're the off half the year solar holistically for just and that. to that higher you million But probably CECL grow follow-up the that period growth of you're $XX else adding associated XXXX growth with, to modeling in your $XXX net experiencing knowing to in sheet stuff in growth in you the of "neutral Steve, million well of of And with

Operator

Our next question comes KBW. with from O'Connell Chris

Christopher O'Connell

the just follow wanted to on So outlook. expense up

Or plus range So as rate organic the is Is were good organically? it $XX into increases? is merit basis. million thinking the $XX million that the range run that that an you the a on like annual XXXX

Annette Burns

that's organically. consideration rate that, run think good includes a merit increases. I for It

between So if kind probably at a X% historically. somewhere it's which increase, like you is a at I where to X% were we're look full of to said, year basis,

in increase a of each As our happen merit does reminder, year. March

the first that you quarter, we two payroll well. So of but also impact in quarter have less the a in as won't have first days full quarter

offsetting there's So some there.

Christopher O'Connell

Okay. the just Got businesses. fee it. on And then

business, primary the you're of wealth in into wondering Just what the as in retirement business, seeing your far terms XXXX growth regarding businesses businesses. the insurance outlook as

Scott Kingsley

Yes.

Chris. one, to happy I'm that So take

just administration so $X capsule $XX $XX almost a us, you is finished of management, sort the business, and million million give insurance to Retirement for And and where a wealth a we year. over of plan million. little a

$XXX a for years, timely million the combination growth point, revenue very of some combined, attractive really, So Annette's account customer in strong an And was management. year. million a well. between growth, friend, To organic market from benefited very actually today adds, of standpoint. The and $XXX our robust compounded business wealth us standpoint. last as really region rates ironmen over with was X XXXX acquisitions. X%-ish, organic solid insurance adds the had and moving administration acquisition market We from up rates

grow is today. businesses remember, going on forward, in investable bullish And capital look necessary those way the to really businesses really those businesses, very any very, at So in modest. those those we complement

organically, generating reinvest businesses just we a almost that hard over generation at capital their their which demonstrated and businesses. extended level into those period of of grow just can you capital they we've some kind to keep time can, it's If

are think attractive. provider And we reached operating size again, net So we've us margins where very requisite creates of for a consideration dividend consistently. opportunities they're that capital

Christopher O'Connell

mid- as far Or a change deal close, growth, of there absent run the of impact the as those? to market is for Great. are thinking rate given? still is you And each in digits here good guys high- organic any single the kind

Scott Kingsley

easier single Chris, million outcomes mid- little to good combined we about when to digits, $XX obtain. $XX feel the million, mid-single a high bit to were digits

more $XXX have million the a of we enterprises. of well the little just breadth of we positioned Now terms a products task there. all But outcome, bit we're in this think that in you're of those in

think we So that upside there's opportunity.

Christopher O'Connell

Evans or obviously, how into fast around was the approvals. you got close guys Great. discussion And we've date -- the Any into few got actual either here past XQ over relative the to XQ an on extremely guys any given just moving XQ merger, seen the you there then from up years. what approvals earlier quickly

Scott Kingsley

the extension So Chris, year. end very them amount This of [indiscernible] the happy appropriate to -- and of to the have regulators to gotten going that and you no an in we overlap overlap. that XXXX, here. through sometime early is people all Probably relative to a were no in to our the other your point, impact. we time. that asked again market pleased with and very Reminding got prior have approvals expected that get but the

those So there's lack lot need that of talked relative not balance a things to some competitive of be about and of to market in things. influences

To your whether conversion talked that underappreciated technical the moving about is core did a we it systems up, we goes question of task. Probably about not.

do X running with that later, is We think that of done close embracing a things involved don't process, X lot in have and who then other people risk where other bringing those we a X And may legally together. and process appropriate people a acquirers, their in Now separate have there's may they can are two think a companies months, conversion us. never months, months that. for systems

important that May So have where months, really This going at good for And same the have chance period. mix type see of versus an comes conversion, feel the about a full-blown that to next -- criteria time. do our we'll of over into the it do us, all X for products. then we'll opportunity the the Evans a ourselves we'll to mapping products closing out we

Christopher O'Connell

two of put the anything had or actions balance And and balance the being Any Great. sheet together. contemplated sheets little in to a Okay. deal you guys terms on just deal, being bit the of you kind in shortly contemplate have the there after difference security on either is post-deal what the or be side close. Basically, any alongside and, or sheet loan to between balance want close? of, kind optimal merger the thoughts now

Scott Kingsley

Yes.

in So about have so investment in We're pledging we closing we months. control over don't securities. after other for either period balance But we're concentrated a know, the sheet. of investment a thought some really a also lot securities, has as flows the requirement to of banks, a portfolio for position the you municipal selling of cash we end that about or deploying side buying all on Evans lot us a don't up handful next like for and us. early much the where acquire

to investment definitely prior will there of So who that support need be those our or assets portfolio kind so replaced retained the needs. closing we to can customers have

lot like retain. or to have spent the balance on not of of like time asset that dynamics pretty we that's sheet. rest the We we to a thinking Relative much if sheet, about -- not everything want classes did the there balance certain funding were of pretty pieces

So I'm commute first fair from impact they're chance don't and But run September. to great and in a in talk full the after transaction, rates a sometime net marks, the forward. we expectation we the changes year an used about our we about including in we that far in feel value we're quarter, will from interest assumptions from good standpoint. go We But certain changes in in earnings see standpoint rates to like get pretty rates the position recalibrate run side a that that what off synergy will accretion we obviously, we Evans and expectations. think feel

Operator

D.A. Davidson. Our next question comes from Manuel Navas with

Manuel Navas

administration morning. to Or talk kind with growth staying loan kind Is the within is your guidelines showing loan you're for mid-single-digit the bit in And -- growth? the some Can up ramp past Good with now? we optimism the of little more that about right a of increased one-off? legacy year. expected growth across of change

Scott Kingsley

change substantive any noticed in haven't we that saying with start our would I Manuel, markets. So

coming across good into all parts the "stayed same," sense the general Vermont across like probably markets. manufacturing just of New of of New either in optimism opportunities investments comes Hampshire that had exists the planned the from in that's in into most has Maine optimism New well And the core a a think XXXX. see upstate upstate as I our that we in semiconductor as markets our Southern York. There's whether stability much markets Southern that markets York very Our

talk runoff when less portfolios essentially for made the So we comment the last we and in us, that grew planned we year, loans Annette about status. that had the

as I factors the of of variables XXXX and framing how first -- of kind think or those half types think well. we're

the look very us, does I think opportunities participation activity doesn't so it there's us at from York there's when you that again, a stale. little feel nor think today has investable that the standpoint, growth bullish either into is for for market we, feel New in I extension a that like think that bit we're Western feel a we in don't market

all pipelines as the they be portfolio made generally And year. Our beauty are of almost last they across as of beginning is of different couple at seem our a the year were markets. for to the times. good us this point We've spread

are relationships commercial are things We, balance that, that's about to sheet. on customer a to one-off retail whether sides capture motivated probably like the lot how with attractive the both side bank And not on transactional holistic of ability their people of as on think us for side. the or the to as

Manuel Navas

the progressing long around you're everything has opportunity future, that of still for happening your it are CHIPS of the big lot the up have huge That's understood chip that recently comments, that tail that a excited the And within excited you you picture. but big right this anything things markers great. know more that is are now corridor? investments, But of Early expected into kind as are the I some like seeing all what a -- you're expansion, it in structural announcements some corridor, new about? picture, brought of

Scott Kingsley

Sure.

-- end York in the facility GlobalFoundries and So research worked New growth that Vermont, the think growth and to of relative the arms the CHIP the the research from that or organization or as that specific important at and creates Micron applies in a not path that. starting state documentation of into, probably lot something Capital Burlington, well that of to longer Understanding fabrication, really a New that, it's cases, support some essentially to Getting that It's a or around stays is Nanotech activities. opportunity, Saratoga quarter. standpoint. marketplace talk through for announcements going but consistent GlobalFoundries and they've much there's time agreements goes frame with development with of Micron, District certain quarter That of one's play the done tool relative long-term Albany, for federal York, expenditures outside not in that is to being whether capital very construction. the government you're been I robust of at and the the a to about the only is a all beginning the as so Albany, at applies in

Valley support activities highway also or are those that structural Lower Salisbury York of things other But as our XX a Connecticut. There's on investments that happened months bunch Northern place. opportunities speak. underway and bullish whole what's We're Hudson standpoint of parts a exist acquisition in later in the the both New in were really around we XX and from upstate in after

One of is pipelines right most prolific that's Connecticut. in the our now

good those York things really really West forward building opportunities to to out. had back the we've New look border the way Hartford and all from So

Manuel Navas

some on there yield we before room bit. costs have go? to come harder I loan tack thing Or That's Is one keep commentary NIM? just Can costs? NIM. come good cutting near-term color. down together for on to is Deposit with just it the more how a And

Annette Burns

the We about that in There billion since room the reprice is to to $X deposit billion more -- ability low we talked have is in costs are think assets remaining go. already. $X the

fourth changes. bit that around rate got the We rates. you've not changes even any in think think fairly to December probably you quarter into the quickly money we if without of of $X.X a the that market right little break we see billion, rate react out can all accounts, first billion cut So $X so quarter, in we'll

little right, $X.X in a CDs leg the we'll of maturities, see of well. lag, that in billion of will timing remaining because the be but as kind then And

books to reprice some So I think continue those downward. there's in still opportunity to

Manuel Navas

all this NIM. this. after Evans And a with stronger back And metrics? financial into I'll has combined queue into you any kind on update step And close the of headed

Annette Burns

take marks. Scott and refresh like results some our time once their we're Evans said, So year going releases to full

have the So for a first feel into that in -- first better we'll the quarter.

Scott Kingsley

comment, legacy your we income improved in months that for do with think or you interest ago quarter. Think the We early if probably basis is, feel a we do. X our in and construct interest looked Do about are this orders like late like presume net third on Evans? be opportunities We X net what do. that, they consistent probably will or

not so feel if to when than the we a bit good transaction. your And better little announced point, as

Operator

[Operator Instructions].

next question Stephens. with Matthew Our Breese from comes

Matthew Breese

side? start have three. answered. to I a of guess on my before about with the questions additional A do what thinking then the be map the what M&A just most time two one or you is the whole geography-wise, is of been make the Maybe lot first frame you, you quick behind sense? And bank parts opportunities evidence going

Scott Kingsley

of Well, that in a appreciate Matt, terms question. I

themselves ] So until we the it's are planned as worth to present will again, really we're before, us second that in we And York, to quarter, the Western opportunities about. New incremental Evans. all And thinking are [ think we've said on close not on. since capitalizing mono focused

So we really get right. to that want

in standpoint. straight line to on time evaluating a other head have relative we M&A that say our won't opportunities I a So

goes period and time through where all done of truly customer we know applied But Evans a Evans to of get for the to Evans that resources right that everything for our making sure want the we employees base. and we've

franchise out we been we've another have one? plan number announced is to have now our and reach and one and of our standpoint an at franchise of that Absolutely. do. us where from with places I span this people structure one. to a within the geographic kind would opportunities the are Have finished to acquisition that we paramount there had we build that way, larger So continue to have Matt, close and it that current take out now look

have So in but really Is a Vermont branch there's are as representation, the Southern into covering concentration think little where an we still build bit state. we think additional time. to in South working out us again, Burlington have for March. a franchise the Today, opportunities to to our New there and We a online in further south markets coming opportunities could continue and Maine County. over we improve concentration our Chittenton our Southern Hampshire, example, enhance great

I made different something comment closer a marketplace couple this commit the to of going and generally Micron installation we're the in think to probably else Joe something there. to Syracuse maybe that times

markets we we Can Jefferson in opportunistic. that markets Salisbury extend the the the the to connecting appropriate County, time north of Upper acquisition our got think franchise legacy of stuff opportunity. Lower in and that our represented that today, Valley where not Lewis spending we're really in an We're Syracuse and into creates some is still Hudson where we

-- more, that via and we think I into So just Whether and the little further Lehigh Poconos extend that went X, one into Pennsylvania X, the and Valley. to a both, organically, need how do over itself add if the do I Northeast multiple X we years think in I in present that opportunity different places. or do can will M&A it's next to potentially

or now over X into being So really years, the in really that we in. participate last want to opportunity we're markets to we've had the X.X the extend franchise

Matthew Breese

Excellent.

still right between range? me I've of bouncing XX%. for XX% been next that XX%. XX.X% rate been the one tax Is to It's and year? was, a what's kind for good using Next

Annette Burns

I think XX.X% to XX% is a good estimate tax for next rate. year's

Matthew Breese

And going where new opportunities, lot maybe product last new your some at plant. these the this over of all certainly internally certainly have back it handful services, comment. you The either just excitement or years profitability to a the you And hoping is paint back fruition. back. hires? potential a comes next a you Scott, are EPS that could I investments us of and then, time picture kind spending your was outcomes could, you is one, And growth wind most to wind All outside of maybe like standpoint, right. the of maybe as terms at there of organic of of from feels for in

Scott Kingsley

a the deep for That's Matt. Thanks question, one.

meaning into dipping of You're life on that.

So thank of activity in the a your we you. the market sheer market markets to But from growth and just standpoint are opportunities where opportunities. like point,

say So us. that's And that's our investable. to all is supports why to our markets think it something that important are of ability we

All of investable. our of are lines business

the we time. experience think how be on today, improve for we the do we're focused I -- the same employee tend our at to customer

do and on We the think progress working positive over also have outcome up how in that terms the evolved our of expectations standpoint size, thing. grow continue the At But on we do know testing moves as not actually more us years. build-out But on a are just at we're even last management do. the a we a on that things we that we It's how company. for portfolios enterprise on fairness, of clearly in processes is time. expectation. Having our we've made right expectation. stress great bad that there will holistic risk handful eye in the bar The the from a improve the for regulatory we strides to to same that our that. our So institution of the

of do about make like to do we to where to to more We absolutely help and point? investments those we we of Would in ourselves about how think learn people with those improvements about things to some We our get that prioritize learn some bright us accomplish But go need really just relative do. more we forward. want systems. we that customer,

the quarters, or we We better on feels ] think trend investments two was with pleased momentum I opportunity make it you in level. mid-X.XXs it where today. when the generation revenue to as capital an that a front the positioned to to in in and expense these you do to your That than of the want did some from organization. consider that front out low comes improving market like the when of X% gives it line last go our clearly very margin we're a the [ So company is are your

So much management had got probably frankly, tactical as we in the flexibility think, think taken quarters. it's we've as X today over and quite past that we've instrument, we

Matthew Breese

in Understood. one And another there. just to slide

sub-debt market. You lines this especially had with sort any suggestion of of the the to to Is better some due feels coming there the there, year? said later between go capital

Scott Kingsley

at that. accomplish spots stack? holding there which just Or should was we think interested because pay company about the reserves spent cash that That's replace thinking in opportunistic capital we'd building house it midyear. that have time But the to a time, could to like little happy granular that do really during with to a talking flexibility about and that. if at from we replace diligently in another instrument that pandemic been have Should be off, And we've on the about a in we'd pretty question. you to in yes, take we point that great same the up bit offline. that capacity sub to with gets in her issuance a network we that. the we But with, remark XXXX we

Operator

And our from with next James. Moss comes Steve Raymond question

Stephen Moss

-- this right nonperforming commercial of nonperformer here, more quarter. there. answer But back went to want estate lot Just on terms just one that I to the status circle in follow-up real

of about here? of assuming charge you're of $XXX,XXX kind is out. type thinking Just was about that a and curious kind loan how I'm resolution the it

Scott Kingsley

Yes.

accept that. in have well. very really to much well. will to one it's historically housing a will differently than today. or But where question. developer than markets our assets think one Steve, It's this Upstate in a multifamily And project as new the it's modestly we a the performed more priced over So market better time, up. of not it's There's and lease York, been great very New Whether marketplace in is it slow

Stephen Moss

Okay. And what participation?

Scott Kingsley

We one. do have this a partner in

Operator

Our next question comes KBW. from O'Connell with Chris

Christopher O'Connell

Real quick.

wanted and/or the deposit Just spot margin interest-bearing of had guys end follow December. the to and costs first see the of if you up spot at

Annette Burns

to you I what that, for will very the similar had the we follow with ended with quarter. margin up perspective, offline we From year Chris. a

Christopher O'Connell

Okay. And then next of like more quarters. about term couple long beyond thinking just the

on update run runoff any in up years where a of had you thought might eventual now, of off? I the solar if after think, a curious endpoint the Just you couple end the residential

much other club the And of that's related? non-lending consumer then within is how

Scott Kingsley

Sure.

to in to even contractual of we going we So decline Chris, tend improvement detailed than forward. auto if financing would expect proxy or would longer residential million some likely while solar is maturities maybe home what experienced a you we $XX million the of have in a residential front lending. financing, say you, that information remember duration instruments we've in of $XXX a with that standard consistent that in consumer are see a because they to for got I longer solar the XXXX essentially this, be

to use probably Springstone and million. would the in million $XX I our that that. as guess portfolio is me going of $XX ballpark Club that but is loan a the consumer proxy differently, going for I'm So Lending that not to this, to tell that's

Operator

with next Davidson. our And Navas from question D.A. comes Manuel

Manuel Navas

yet? any question it way how M&A Evans. legacy hop just Or 'XX. is That I is been for in the digits. side? cross-sell fee more my doesn't kind can we of Is And ask about look potential explored that on back other these to fee And consider something then on include mid-single wanted on the the in size to any there further? growth does has that to

Scott Kingsley

questions. good two So

those going would So one, that be the like able about and look what materiality -- the that are bullish in that might to that, Evans think in close. to deliver in forward really extension And the business on a offered because will not but be What We marketplace capitalized do. people York. opportunity management growth but insurance our New excited to solutions the I solutions today We is terms will early mean those after into wealth Western really at very say that on today. way material, that growth what in of are modest the probably XXXX. in

M&A the for businesses. the fee-based on question side Great

or of other the different basis that books in in A of create some us operating leverage some those on always that that's meeting the looking that bit plan a an are function, ability administration you've find partners independent evaluate to to episodic, that about national are either thinking management to little buying that retirement more basis had our ongoing side and a insurance relationship networking allow will an things positive wealth almost the footprint in We business. are Those on do with. also people us. business is for because

about, we The potentially the networking potential would it's those additions. leaders opportunities. for business of thing we [indiscernible] do lines same scope remembering, of acquire to $X revenue. hasn't or current that we find of most get creates think to any things an how of but unusual It's the source that say how that I million do And in us our of those enterprise business asked in

at and to into Our good between of -- of be integrating we're tends sweet really those spot our each X, those and X businesses.

So as the those that about currently more we always always the have. and happy at thinking to an opportunity, look within confines of but footprint

Operator

turn you showing I any further time. closing to Thank not questions this at the Kingsley remarks. for I'm back will now Scott call

Scott Kingsley

great your you look a participating call in and early interest us In forward the and with Have you. again in thank today for closing, the talking on Daniel, to I to thank day. NBT we everyone to spring. want

Operator

concludes Thank Kingsley, program. this Mr. you. our

day. great a Have disconnect. may You

NBT Bancorp (NBTB) 28 Jan 252024 Q4 Earnings call transcript