Good day, everyone. Welcome to the NBT Bancorp's Q3 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 two, today's presentation may contain forward-looking statements as defined by the Securities and Exchange Commission. Actual results may differ from those projected. In addition, certain non-GAAP measures will be discussed. Reconciliation of these numbers are contained within the appendix of today's presentation. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this conference is being recorded. I would now like to turn the conference over to NBT Bancorp's President and CEO, John H. Watt, Jr., for his opening remarks. Mr. Watt, please begin. Thank you, Michelle, and good morning, and thank you all for participating in this earnings call covering NBT Bancorp's Q3 2023 Results. Joining me today are NBT's Chief Financial Officer, Scott Kingsley, our Chief Accounting Officer, Annette Burns, our Treasurer, Joe Ondesko, and our Chief Information Officer and President of Retail Banking, Joe Stagliano. It was a very active quarter at NBT. We continued to successfully navigate the volatile interest rate environment and its impact on our company and our customers. We closed on the acquisition of Salisbury Bancorp on August 11th. The simultaneous core systems conversion was successful, and the integration is substantially complete. We welcomed over 40,000 new customers, 141 new colleagues, and we brought 13 additional branches onto our platform, allowing us to add scale in Connecticut and to expand south into the Hudson Valley. We also welcome Salisbury CEO, Rick Cantele, to our executive management team and our board of directors. The successful closing of this acquisition positions NBT well for future strategic growth. Let me take a moment to highlight 3Q activity across our businesses. First, we are very pleased with our operating results, including EPS of $0.84 and return on tangible equity of 16.25%. We've achieved commercial and consumer loan growth at an annualized growth rate of 6.1% in the Q3. That growth was diverse, with our commercial lending and indirect auto businesses leading the way. Through nine months, we continue to observe a resilient consumer and small business owner. As stated, our indirect auto business had a strong quarter, with originations of over $148 million. Our residential mortgage business experienced a seasonal lift despite the interest rate environment. Credit quality at NBT is strong, and each of the core credit portfolios continue to perform at levels better than those we experienced prior to the pandemic. Like the rest of our industry, our cost of funds has risen as customers seek out higher yielding deposit products. With that said, total deposits grew during the Q3, including the seasonal municipal inflow we experienced. Our full cycle deposit beta is at 24%, including acquired deposits. We continue to enjoy high account retention levels. Our funding sources are robust, and we have the headroom we need to execute on our organic growth plans. Our fee-based businesses continued their solid performance in Q3. Our EPIC Retirement Services administration business experienced organic account growth and was additionally supported by the acquisition of Retirement Direct in early July. Total non-interest income was 30% of total revenue in the Q3. In August, we announced that Michael O'Reilly joined the NBT team in Portland as our Maine Regional President. In addition, he will oversee the execution of our strategy across our markets in northern New England. Mike's focus on the diversification of our approach in those markets is the next phase of our long-term organic expansion plans. During the quarter, activity associated with the Upstate New York chip corridor was notable. In Central New York, Micron filed its application with the Commerce Department for multi-million-dollar grants and other support under the CHIPS Act. The international semiconductor company, Advanced Micro Devices, announced that it opened research and development facilities in Fishkill and Rochester. The Albany Nanotech Complex was designated by the federal government as a center for workforce training and received significant federal funding commitments. At the end of the quarter, the U.S. Department of Defense awarded a new 10-year contract to GlobalFoundries in the Capital District to produce semiconductors for defense and aerospace applications. Total spend under this contract will be over $3 billion. As we have discussed in prior calls, the economic activity generated along the Chip Corridor will drive long-term transformational economic growth across our core markets. That growth will promote long-term success at NBT, as our platform is uniquely positioned along the corridor. As we head into the final months of the year, NBT continues to be on offense, enhanced by the successful integration of Salisbury into our model, the continued focus on growth in New England, and the organic growth occurring along the Chip Corridor. We are well-positioned with strong liquidity and capital levels, a diversified business mix, highly effective risk management practices, and an experienced team of professionals. I will turn the call over to Scott and Annette now to talk in greater detail about the outcomes associated with the Salisbury merger and our financial performance in the third quarter. Following their remarks, we will take your questions. Scott, I'll turn it over to you. Thank you, John, and good morning, everyone. Before we get started with some additional color on quarterly results, I would like to ask Annette to summarize some of the specific outcomes related to the Salisbury acquisition. Annette? Thank you, Scott, and good morning. As John mentioned, we closed the merger on August 11th and successfully converted all Salisbury customer accounts to the NBT core operating system simultaneously with the closing. We acquired approximately $1.2 billion of loans, $1.3 billion of deposits, and issued 4.3 million additional shares as consideration, with a value of $162 million as of the closing date. Thus far, we have achieved the greater part of our estimated 30% in cost synergies, with the remaining expected to be realized by the end of 2023. As outlined on page four of our earnings presentation, we recorded fair value marks on loans of $78.7 million, net of a $5.8 million reclassification to loan loss reserves for PCD loans. In the Q3, we recognized $1.6 million of accretion income. Based on current prepayment speeds, this fair value mark will be accreted over the estimated remaining life of the loans, which we've assumed at just over seven years. We also recorded a fair value discount of $3 million on Salisbury's $25 million of subordinated debt obligations, which will amortize over the next three and a half years. We also recorded a $31.2 million Core Deposit Intangible related to Salisbury's core funding base. We are expecting to amortize that intangible over the next 10 years on an accelerated basis. Lastly, we added $4.7 million wealth management customer list intangible, which would amortize over the next 12 years, again, on an accelerated basis. Together, the amortization of these two Salisbury-related intangibles added $1 million of expense in the third quarter. The net of these four items added approximately $400,000 to our third quarter pre-tax income and is roughly a half a quarter's impact. In addition, we recorded $1.8 million in amortizing intangibles related to the Retirement Direct acquisition during the quarter. Scott? Thank you, Annette. Turning to page five of our earnings presentation, our Q3 reported earnings per share were $0.54, while Q3 operating earnings per share were $0.84, compared to $0.80 per share in the linked second quarter and $0.91 in the Q3 of last year. Tangible book value per share of $20.39 at September 30 was down $1.16 per share from the end of the Q2, influenced by the Salisbury acquisition, as well as an additional $0.37 per share of unfavorable AOCI impacts. Our quarter-end tangible equity ratio of 7.15% was very close to our projected capital levels at the announcement of the merger last December, despite the higher level of AOCI-related dilution. The next page shows trends in outstanding loans. New origination yields have continued to move productively higher. Our now larger loan, total loan portfolio of $9.67 billion remains very well diversified and is roughly 52 commercial and 48% consumer outstandings. Total deposits of $11.4 billion were up $1.9 billion in 2023, which included $1.3 billion of deposits acquired from Salisbury. The company continues to experience remixing from its no-interest and low-interest checking and savings accounts into higher-yielding money market and time deposit instruments. Our quarterly cost of total deposits increased to 118 basis points, compared to 85 basis points in the linked Q2, and total cost of funds increased 28 basis points from the prior quarter and included the impact of the acquired Salisbury deposits, which did carry generally higher interest rates than the legacy NBT portfolios. In addition, our total cost of deposits for the month of September was 131 basis points, which is 13 basis points above the reported quarterly level. We have also again included a summary of our deposit mix by type, which illustrates the diversification and deep granularity of our customer base. Page eight looks at the detailed changes in our net interest income and margin. Q3 net interest income was $6 million above the linked Q2 results, primarily from the Salisbury acquisition, as well as one additional calendar day in the Q3. We believe our granular deposit funding profile remains a core strength. However, we do continue to expect funding pressures to persist for the next couple of quarters. The trends in non-interest income are summarized on the next page. Excluding securities losses, our fee income was up $3.7 million from the linked second quarter to $40.4 million, and up 8.3% from the Q3 of 2022. Consistent with historical results, the Q3 of the year continues to be our most robust quarter of revenue generation for our fee-based businesses. As such, we'd expect some seasonal declines in the Q4. Q3 revenues in our wealth management business included approximately $650,000 from Salisbury, and our retirement plan administration business added $700,000 of revenues from the Retirement Direct acquisition completed on July 1st. The diversification of our revenue generation sources continues to be a core strength of the company. Turning to non-interest expense. Our total operating expenses were $82.9 million for the quarter, which was 6.8% above the linked second quarter, excluding merger-related expenses. Quarter-over-quarter increases in salaries and employee benefits, technology services, occupancy, advertising, and FDIC assessment costs also related to the half quarter impact from Salisbury. On the next slide, we provide an overview of key asset quality metrics. A walk forward of our loan loss reserve changes is also available in the appendix to the presentation. Net charge-offs were 18 basis points of loans in the third quarter of 2023, compared to 17 basis points in the prior quarter. The increase in quarter end loss reserves reflected an allowance for acquired Salisbury loans, which included an $8.8 million day one provision expense and the $5.8 million of PCD allowance. We continue to believe that the path of charge-off activity will return to more historical norms, and along with expected balance sheet growth, will likely be the drivers of future provisioning needs. As I wrap up prepared remarks, some closing thoughts. The additional market volatility and uncertainty that arose in early March accelerated our funding cost pressures, which has resulted in lower net interest margins. However, well-balanced organic loan growth, constructive results from our recurring fee income lines, stable credit quality outcomes, and diligent operating expense management have allowed us to generate solid quarterly results. Lastly, our post-acquisition capital levels continue to put us in an enviable position as we consider future growth opportunities. With that, we're happy to answer any questions you may have at this time. Michelle? Thank you. Anyone with a question at this time can please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. And our first question is going to come from the line of Alex Twerdahl with Piper Sandler. Your line is open. Please go ahead. Good morning, Alex. [crosstalk] Hey, first off, wanted to start, John, you talked about the next phase of your organic expansion. You know, I know that you know the main market very well. I believe you ran that for a little bit before taking the current role that you have now. I'm just, you know, wondering if you can elaborate a little bit on sort of what you mean by that, if that is going to require some further investment into next year, or if it's going to be sort of what you've been doing, just maybe with a couple of additional people. Thanks for that question. And yes, I did spend time in Portland, as you know. I think the investment here is in people, and the supporting systems we need to deliver high-quality products and services. As you know, we got off to a really strong start in Maine, focused primarily on CRE. It's time now, and it always has been our plan to diversify that approach in the market. And we think Mike O'Reilly and the team there thinking about expanding our small business offering, our C&I offerings, putting the treasury management platform we have front and center, on the deposit side, are all sort of basic block and tackling things that we are now ready to do in Maine and New Hampshire. We've done that in Burlington and Northern Vermont, and I think we've demonstrated it's possible and achievable, and that's where we're headed. I don't see us investing in brick-and-mortar in the short run, so it'll be people and systems. Great. Thanks for that additional color. And then, Scott, I'm just wondering if you can walk through sort of the funding strategies you have. I think you said cash flows from the securities gets you to, you know, roughly around 2% of your loan growth, or I guess, would get you the first 2% of loan growth based on the cash flows from securities that you disclosed in the presentation. You know, assuming that you do a little bit better than that, which is kind of how you've been running, you know, how do you weigh the different options for funding that? Would you consider additional securities restructurings, things like that? Thanks, Alex. You know, and obviously an important question for us going forward. You're right in your expectations relative to the investment portfolio. I think we're expecting another $45 million in cash flows in the Q4. You know, somewhere between $180 million-$200 million going into next year. You know, remember, our investment portfolio is generally amortizing mortgage-backed securities, which, of course, have slowed down as prepayment speeds have virtually reached zero. So you know, our expectation of cash flows have been pulled down a little bit relative to that, but still productive. Given that's the outcome of our investment portfolio, Alex, you know, the ability to, you know, some kind of a restructuring of our securities portfolio would require us to estimate interest rates beyond the one or one and a half year horizon, and we're just not so sure that that's the appropriate thing to do today, you know, in the market. Back to your point of, you know, just how do you fund mid-single-digit loan growth? You know, I think it's the organic strategies that we've proven we're pretty good at over time. Do we expect some continued remixing into CDs and money market accounts from savings and checking, non-interest checking or low-interest checking? For sure. You know, a piece of our customer portfolio started to get some repricing of their deposit instruments about a year ago, you know, the fourth quarter of last year, or even maybe into the early first quarter. Remember, that was at a time when the Federal Reserve was moving rates in 50-75 basis point buckets, you know, at each meeting. I think it was a little more top of mind. You know, have we seen some sort of leveling out of that, you know, here in the Q3? A little bit. Does that mean there's some customers that still think they deserve a better yield on their depository or their excess liquidity? For sure. Those people are still out there. I think the other thing, you know, I think we pointed this out a quarter ago or maybe two quarters ago, you know, generally, the Salisbury cost of funds were higher than ours on a blended basis, and so you're seeing those numbers in the Q3. Remember, you only got half of that in the Q3, so you'll see a little bit more of that in the Q4. But generally, Alex, I think if, you know, if you're targeting now, you know, how to come up with funding sources for, you know, a $300 million or $350 million organic growth rate, I think we're in good shape relative to figuring that out. Okay, so first line of defense is cash flows from securities. Second line of defense is the organic growth that, you know, we all hope for. And then third, you know, tap some funding or some borrowing options should they arise, but sale of securities is currently not one of the considerations. It is not. You're so you're spot on with that. And I also think that in terms of, you know, what if the Salisbury transaction allows to expand our geography relative to thinking about other spots within our geography that we have never been represented in. You know, Upper and Lower Hudson Valley, as an example, we've really never had significant exposure there. Are there some additional spots between where the Salisbury franchise was in the Hudson Valley and where we've been sort of in the southern Catskills and the Capital District of Albany? There's probably some places in there rationally we should link up. Same thing in in Northwest Connecticut. Do we have immediate plans for that? No. Are we spending a lot of time trying to identify productive markets for that kind of expansion? For sure. Got it. And then just final question for me. When I look at the quarterly loan yields on slide six and the new origination yields, you know, some of them seem still just a little bit light, just given rates and what we're hearing from other people. Is that kind of indicative of where the pipeline is as well, the new origination, or is the pipeline a bit higher than the new origination yields on slide six? Yeah, a couple things there, Alex. I would say the pipeline is a little bit higher, you know, remembering that the third quarter also includes months that were July, August and September. You know, and here we stand at the end of October, so the pipeline is probably a little bit higher than that. I think in terms of, you know, how those things are blending, residential loan production is obviously not at an all-time high. You know, it's, it's at a fairly, fairly modest point. And so the mix of residential loans that may be ending up in a lower duration portfolio, 15 years, or in a, an adjustable rate or a, a product that has an adjustable rate attached to it, that really explains, you know, why that number probably looks a little bit lower. Your point is well taken. You know, today, given where incremental funding costs are, you know, do the new yield expectations need to be north of 7.50% or 7.75% or even 8%? Yeah, they should be. Do you get to that path with every single one of your offerings? No, not immediately, but I think over time, you make progress at that. Perfect. Thanks for taking my questions. Thank you, Alex. Appreciate it. Thank you, and one moment as we move next to our next question. Our next question is going to come from the line of Steve Moss with Raymond James. Your line is open. Please go ahead. Good morning. Morning, Steve. Morning, John. Maybe just following up on the funding cost and the margin mix here. You know, I see you guys in a pretty meaningful cash position at quarter end, and, you know, obviously, Salisbury kind of makes things a little more difficult. Just curious as to how you're thinking about NII and an overall margin for the Q4 here now that everything's combined, given that funding costs are 13 basis points higher for September. Yeah. Thanks, Steve. So to your point, you know, we'll get the full impact in the fourth quarter of that. You know, the hope is to tell people that the September cost of funds were the high point of the quarter, which I think we've unfortunately gotten to say every quarter end this year, that the last month of the quarter was more expensive than the first month of the quarter. So expect that to continue, and now that's more of a remix dynamic than it is than there's any other you know, product-related change, you know, for us on a going-forward basis. So I would kind of frame it this way, that we, we kind of think of the Q3 's outcome as a 3.21, reported margin, probably 3.16 core, with meaning that five basis points of mark accretion was also included in that. You got a number stepped down a little bit into the Q4? I think so, Steve, you know, on a core basis. And we'll continue to tell you how much that is, you know, moving forward in terms of what's influencing the, you know, the GAAP reported number. Your point on the balance sheet, well observed. We were in a Fed Funds sold position and still borrowing money at the end of the quarter. We were very cautious before the closing of the Salisbury transaction, that we did not want to put ourselves in any short-term liquidity constraint position. So we kept some instruments on the balance sheet, including on the fund- on the borrowing side, into the fourth quarter. I think the lion's share of that Fed Funds sold position will move itself off our balance sheet in the fourth quarter and into the Q1 of next year. And, you know, it, it's interesting, you know, that that may result in a little bit of compression on net interest margin, but it actually creates a really modest piece of net interest income. And again, remember, we spend net interest income and talk about net interest margin. Right. Okay. That's, that's helpful. And just kind of as you're thinking about the deposit environment here, you know, you guys are still running at a well, you know, a low cost of interest funds on insuring deposits. So, you know, kind of how are you thinking about through the cycle deposit betas, you know, if we are in a higher for longer environment, you know, kind of what's your sense of the competitive environment these days? Yeah, so it stays competitive, Steve. You know, and I, and I think that the, you know, some of the issues that the industry had to engage in, you know, following the bank failures in the Q1, it's still top of mind if you're, if you're a banker. That, you know, that, that has not gone away. And I think we've said before, you know, our regulatory reporting of net liquidity and net liquidity sources has continued to be a monthly apparatus. Not daily anymore, but monthly. So, you know, I, I think that that, that stands out there. I think in terms of, ex- you know, we share markets with larger banks and with smaller banks. The smaller banks have a finite group of customers and communities that they can go to from a funding standpoint. So they'll tend to be a little bit more liberal or a little bit more assertive relative to retention, and if rate is necessary to retain, that's what we see. The larger banks we're competing with across most of our footprint, you know, have kind of found a regional and/or a national strategy for their depository products, and we line up very well against that. You know, we don't need to be overtly assertive, you know, to retain our customers. We've made this comment before, Steve, you know, we have a very, very granular mix of customers from a depository standpoint. So that ability to look at that granularity, where we have a large customer base that does not have today or does not enjoy huge amounts of excess liquidity. That being said, our institutional, commercial, and larger small business customers do have excess liquidity, and they are expecting market yields. So I don't think that dynamic changes for the next couple of quarters. Okay. And, and then in terms of just, you know, following up on loan yields here, you know, quite the move over the past three to four months. You know, just curious, are you starting to see, you know, the, an increasing number of deals that no longer make sense? And, you know, could we see maybe a slowdown in loan growth from the mid-single digits, you know, if, if loans are headed towards an 8%+ type rate? Let me take that one. You know, we're right in the middle of the budget process, right? And top of mind every day is, you know, what's growth gonna look like next year? Right now, it's our view that mid-single digits may be slightly moderating down from that, but mid-single digits is our jump-off planning spot. Looking at pipelines going into the end of the year, you know, the commercial banking pipeline is pretty strong. The business banking pipeline, pretty strong. So you know, will there be moderating demand further into next year? You know, we'll see, but I don't think it's unreasonable for us to be planning mid-single digits. Okay. And then one last one for me. Just in terms of the fixed rate loans dynamic here that are repricing over the next 12 months, just curious if you have those expected repricing, Scott? Yeah, Steve. So when we look at our, our loan portfolio today, we think of about $1.7 billion of cash flow instruments coming off that, and, and that's probably a lower number than we said a quarter or two or three ago, just given the slowdown in prepayment speeds. That slowdown in prepayment speeds is noticeable in residential mortgage products, in solar loans, in a couple other portfolios. Over time, you know, I still think that, you know, people buy a new car, and over time, people will move again. I think we use $1.7 million of expected cash flows, you know, for the next twelve months. Okay, great. Thank you very much. Appreciate it, Steve. Thanks for the questions. Thanks, Steve. Thank you. Thank you. And again, if you have a question at this time, please press star one one on your telephone and wait for your name to be announced. One moment for our next question. Our next question is gonna come from the line of Chris O'Connell with KBW. Your line is open. Please go ahead. Hey, good morning. Hey, good morning, Chris. I was just hoping to circle back to just the near-term NIM discussion. So I guess on a core well, first off, just for the next, you know, full quarter, given, you know, where the close was this quarter, like, what do you think the just quarterly accretion number will shake out at roughly? So I think this quarter's $1.6 million is a proxy. You know, you double that, and that's what that'll look like for the next few quarters, depending on prepayment fees, but I think that's a good proxy. Okay, great. And just thinking about the core NIM, do you guys have what that was on a spot basis for September? Do not have that in front of me, Chris, but I would probably tell you that if the quarter's core was $3.16, I would guess somewhere between $3.10 and $3.12 for September, month of. Got it. Okay, great. And as we get past next quarter and, you know, hit the trajectory into next year, I mean, is the pace of funding pressure gonna depend, you know, more on the core customers that you have, or you know, how the mix shift tends to play out, you know, from this point? And if you have what the organic non-interest bearing deposit growth or decline was for this quarter, that'd be great. Yeah. So Chris, you know, that, that was probably where I would say yes. You know, the impact of our core customers is more the determining outcome. If you're today, and just us or probably most banks, if you're truly recruiting large pools of incremental cash onto your balance sheet, you're expecting to pay a 5% yield for that. It doesn't matter whether it's a wholesale source or whether it's a large institutional source, that's the customer expectation on that. But if you're down into the granular adds and, you know, our ability to add incremental checking accounts, you know, really important attribute for us, and it's something we've historically been very good at. But it's just in terms of, you know, circling the wagons on deposit balances, you know, those tend to be very effective accounts from us, both on a, you know, cost of funds as well as an activity, participation. So we're still focused on that. In terms of, you know, how we think about that going into next year, again, a portion of our core customers got some repricing on some of their deposits in the Q4 of last year and the Q1 of this year, and they probably went into instruments that were not long in duration, you know, six to 10 to 13 month type CD durations. So those people are gonna be back in front of us for repricing, and the question is, what is their demand today? We assume it's a little higher than what we put them in at the end of last year, but I wouldn't think it's so much higher that that's going to be something that we couldn't offset with earning asset yields continuing to productively move forward. Not at the point where we're declaring victory on that for the fourth quarter, even maybe the Q1 of next year, but expectation-wise, you can see that coming. Great. Okay, great. And then, do you guys have a dollar amount of what the remaining cost saves are on the SAL deal? You know, Chris, probably not specifically to a dollar number. Remember, we now have history with Salisbury as of September 30th of 49 days, and we now have 25 more behind us here in the fourth quarter. I think once we get through a full fourth quarter, we'll have a real sense of that in terms of dollar outcome. Annette, help me, 30% of the base at Salisbury was $9.5 million or $10 million? That's correct. Right around $10 million. Yeah. Thank you. Thanks. Okay, great. And then you do have the, you know, share repurchase plan outstanding. It sounds like, you know, growth, you know, is solid, but, you know, not, you know, not overly concerning in terms of capital usage. Capital should be building, you know, at a fairly good pace going forward, given the profitability you have. Is it something that you will be exploring using on a go-forward basis? For sure, Chris. You know, I think as we start to talk about that, you know, we like our positioning today because it allows us, back to your point of understanding where our natural capital accumulation, you know, the positioning we have ourselves in. We certainly have to leave ourselves room to grow organically because we've been good at that over time. You know, as we pointed out in the Salisbury transaction, having a little bit of excess capital to be able to use for a really high-value acquisition is a great opportunity for us. Similarly, you know, we've raised our dividend now 11 straight years. You know, we think the shareholders deserve more on a predictable annual basis. To your point, having an open authorization for share repurchases is an important feature. I think it's more important when you think your organic loan growth opportunities are probably a little bit slower, and that may come into play in 2024. We may find that there are periods of 2024 where demand is not as robust as we're enjoying today. I think those are the periods where a buyback is actually productive. You know, we've always had the authorization out there to make sure that we could address share creep from some of our equity programs. What's the hurdle you got to get over with that today? It carries a 5% funding cost to do that. you know, to buy your own shares, if you're being transparent, you got to assume that you're going to use 5% money to do that. The government sort of nicks us for a 1% toll tax when we buy that stuff. But again, manageable and part of the long-term capital allocation strategy of the company, for sure. If I could put a fine point on that, too, we review that at the board level every year. And just coincidentally this week, Scott led the board through that same discussion, and we reaffirmed that's the priority of allocation of capital as we go forward. So, you know, we're at a place this week where there is consensus at the top of the house and at the board that that's how we're going to proceed. Great. Thanks, John, Scott. Appreciate it. Thanks, Chris. Appreciate the questions. Thank you. And as a reminder, if you would like to ask a question at this time, please press star one one on your touchtone telephone. And one moment for our next question. Our next question is going to come from the line of Matthew Breese with Stephens Inc. Your line is open. Please go ahead. Hey, good morning, everybody. Morning, Matt! Morning, Matt. Just a couple of model-related questions. First, on fee income, Scott, you had mentioned that seasonally, this was you know, the strongest quarter of the year. You know, with Salisbury only being there for a partial quarter, could you help us out in terms of what you expect to roll off, but then also for the full quarter impact with Sal, where do you expect fee income to shake out in the Q4? Yeah. So, it's a great question, Matt. Thanks for actually that. So historically, we've had somewhere around $0.02 per share or, you know, maybe a $1 million-$1.2 million reduction in core revenues in our fee-based businesses Q4 versus Q3. So if you think about that as a backdrop, you know, we do some activity-based billings in our wealth management business in the third quarter. We have some actuarial fees that are more, more pronounced in the first and the Q3 of each year. So that's typically been our, our pattern for that. Your point is well taken. We added about $650,500 a quarter in the wealth management trust side from Salisbury. I think it's fair to assume that you get a full quarter of that in the Q4 and that kind of run rate expectations going forward. You know, the market sensitivity in retirement plan administration and in wealth is still meaningful for us. But that being said, I think we have a more traditional base of customers in there. You know, so their utilization of both, you know, fixed income as well as equity instruments is probably a more traditional-based outcome. You know, that's not the 100% equity market influence group. And you know, clearly, there's yields in the fixed income market today, so you'd expect some productive use of that. So, you know, all in, Matt, I would say, we're looking at saying, you know, in the Q4, revenue is probably still down. It probably isn't down as much as it would have been, say, from last year's third quarter to last year's Q4, you know, because of the Salisbury impact. But we still think probably a little bit lower than what we had in the Q3. Q1 and Q2 of next year is probably, you know, you have the outcome that's similar to your Q4, with an expectation of organic growth, which we've achieved in all three lines of business, you know, in 2023, and expect that to continue, you know, opening new accounts, expanding our base, and having an additional geography to expand those products to is all a net positive. I appreciate all the color there. Then on the provision, you had mentioned that going forward, maybe we could expect a kind of more normalized provision. Certainly, there's some moving parts this quarter. How would you frame that, you know, 15-20 basis points of loans? Is that a reasonable starting point, or said another way, do you feel like the current reserve is probably a good place to keep it for the near term? Yeah, I think unless you get a meaningful change in some of the economic expectations, you know, where we are currently from a coverage ratio on our current mix is probably a fair starting point. I think, with you know, for us, and I'm sure we'll budget this way, we'll budget that net charge offs again start to maybe look a little bit more like pre-pandemic levels, but maybe not all the way back to 2019 net charge off levels. We always think, Matt, that provision-wise, we cover those, and then we cover whatever incremental loan growth we experience in the quarter at that blended coverage ratio. In the Q3, you know, we had some things that actually were net positive for us that didn't force us into quite that outcome, you know, but maybe $0.01 or $0.02 from that outcome. It wasn't like it was, you know, $0.08 or $0.09 off that outcome. It was $0.02. Okay. And then, John, I had a few questions just based on recent events and then the upstate New York activity. You know, it feels like every quarter you're now announcing another contract, another company. You know, this quarter, you're talking about New York Creates, the Albany Complex being granted that, the Center for Workforce Training. First of all, what is the significance of that? Secondly, do you expect to see the region as a whole becoming more of a point of gravity, much like Silicon Valley was, for companies similar to Micron, similar to GlobalFoundries, to go to upstate New York? Is this going to be a slow-moving or growing snowball effect as more and more companies enter the area? And could you remind everybody, as you know, what's already existing up there? So, I appreciate the opportunity to have that discussion. You know how important we believe it is at NBT for the economic transformation of our core markets in upstate New York, onsemi, and GlobalFoundries and Wolfspeed, and now Micron for $100 billion in Central New York, which are the chip corridor, lower Hudson Valley to Central New York, are gonna drive a transformation of our economy, unlike one we have seen in many, many years in upstate New York. So, it has been below the radar. We believe at NBT that one of the things we can be doing is to raise visibility around it, thus this discussion. Am I gonna go as far and say that Onondaga County and Central New York is gonna be the new Silicon Valley? No, I'm not gonna say that. But what I am gonna suggest is we're gonna use words like population growth, like job growth, like the increase in average salary, and increase in the retention of students who graduate from all of the colleges and universities in Upstate New York, because the job opportunities are going to be plentiful, and that's the momentum that we have here. The application filed by Micron to the Commerce Department in July for the allocation under the CHIPS Act is likely to be acted on by year-end. It has the support politically from Senator Schumer, and there is a lot of optimism inside of Micron. We're aware of this, that it will happen. There's a lot of work going on on the planning and preliminary site work side for Micron in Clay, New York. So the momentum there is positive. Every quarter, you're absolutely right, there is a global semiconductor company or supplier or related research company who is being drawn into this corridor and into this market to support Micron, Wolfspeed, GlobalFoundries, onsemi, and other semiconductor initiatives in upstate New York. And that, I like your word snowball in upstate New York in this season, good analogy. That is likely to be a snowball that continues to roll downhill and grow. And again, the NBT footprint sits directly on top of that, and we have insight into what's going on in each one of those regions, and we would expect in our retail businesses, in our commercial lending business, in our wealth business, insurance business, that there is big opportunity. It has been demonstrated already in Central New York with the growth of—I'm sorry, in the Capital District, with the growth of GlobalFoundries over the last 12 years, population growth in Greater Saratoga, an increase in business activity. We have many customers who support that industry, who are enjoying additional contract bookings, and it would expect more for many years as the expansion continues. So I'll stop there, but I hope that you have a flavor of why we believe it's a key organic growth strategy for the long run and will transform the economy and drive significant growth at NBT. Well, I appreciate all that color. Just, just moving on to a different topic. You know, more recently, we've seen a bank strategy of parting ways with fee income businesses, insurance companies to be specific. I think I know the answer to this, but I would just want your two cents on this strategy and whether or not we might see you follow suit or continue a path of building these lines of businesses. Yeah. Matt, you and I have had this discussion, so, you know, we're about organically growing these businesses, and to the extent that we get opportunistic periods of time where we can, bolt on, you know, small, you know, revenue generation activities or small other firms in that same space, you know, that's still our bias for sure. You know, it's difficult to sell stuff. You end up unwinding stuff that you've worked on for several years relative to cross-selling opportunities. You know, I'll admit the last couple that have been announced were these really large agencies, you know, revenues in the $100 million or, you know, $100 million level. It's hard not to look at those, multiple levels and say, you know, I understand why those institutions potentially talked about that. I think for us, kind of think about this strategy. If we can continue to organically grow the businesses that we're in, you know, we think we can create productive and profitable scale, going forward. The beauty for us today is all we have scale in each of those businesses today. So it's just incumbent upon us to find, you know, you know, the right folks and the right opportunities from a product standpoint to continue to organically grow. 'Cause we really, really like the cash flow, that comes off those businesses, and they're huge, obviously, in generating capital, for the rest of the institution. So our bias today is, you know, continue to improve and grow. And, you know, our businesses are a touch smaller than those big headline deals you've seen announced lately. I'm not so sure the Arthur Gallaghers of the world, and people of their size are interested in what we have. I appreciate that. And then, and then just a follow-up. You know, from my seat, as this kind of events happen, the knee-jerk reaction is, is obviously, y ou know, one, to look horizontally and figure out who else has these businesses, do sum of the parts analysis. Frankly, from my years in the seat, you very rarely actually get a multiple on a fee income business with any sort of press release. So for the first time, we have an insurance multiple, it feels like. What we don't have are multiples necessarily on wealth management or in, in your case, the retirement plan admin business. I'm not asking for a specific multiple on a recent deal, but can you give us a flavor for what those types of businesses, wealth and retirement plan admin, what type of multiple those go for in today's market or in a normal market? Yeah. Well, I, I'm gonna—I'll give you maybe some historical perspective on this as well. But I think that, you know, typically those businesses that have recurring cash flows and they are in more in the processing space, have demanded, you know, multiples of revenue that have been two, two and a half or three times, depending on their size. Because, again, they're repetitive transactions. I've always thought that there was, you know, from the private equity side or the hedge fund side, that there was a fascination with the firms who accumulate assets. Because I think there was always this sense that you could be involved in the management or the, you know, the administrative activities of just those assets. I think what we find in our businesses is we're good at processing, and we're fine with that. So in our retirement plan administration business, we're asset agnostic. You know, we are just the processing platform, and we're good at it, and we've taken the place of people's HR functions more than anything, in that line of business. Wealth, for us, you know, is embedded into the core culture of the bank. We've always done that. It's embedded with us from a geography standpoint. You know, our people in the field are servicing not only our bank customers, you know, but our other centers of influence in our communities that we're already participating in. I would say the same thing about insurance. We continue to strive to have a good cross-sell with our customers. On the insurance side, that's been very effective in the small business, small commercial side, more than anything else. Finding a productive platform to do that more, you know, more repetitively on the consumer side, is kind of the elusive thing, but we're working on it. We're working on it, and we're making some progress on that. So, you know, I would kind of frame it this way: unless we don't think we can organically grow, those businesses are long-term for our portfolio. Great. I appreciate all the color. I'll leave it there. Thank you. Thanks, Matt. Hey, thanks, Matt. Thank you. I'm showing no further questions, and I would like to turn the call back over to John Watt for his closing remarks. Thank you, Michelle. Appreciate everybody's time this morning. Thank you for all those great questions about the momentum behind NBT as we close out this year and move into 2024. Again, have a great day. Appreciate your time. Thank you. Thank you, Mr. Watt. This concludes our program. You may disconnect. Have a great day!