Q2 2025 NBT Bancorp Inc Earnings Call

Good day, everyone. Welcome to the conference call. Covering NBT Bank Corps, second quarter, 2025 Financial results. This call is being recorded and has been made accessible to the public in accordance with SEC. Regulation FD corresponding presentation, slides can be found on the company's website at NBT bankcorp. For the call begins and BTS 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. Actual results May differ from those projected, in addition, certain non-gaap measures will be discussed. Reconciliations for these numbers can be connected contained within the appendix of today's presentation. At this time. All participants are in a listen-only mode. Later later, we will conduct a question and answer session. Instructions will follow at that time. As a reminder, this call is being recorded. I would

Now I'd like to turn the call over to NBT Bank Corp. President and CEO Scott Kingsley for his opening remarks. Mr. Kingsley, please begin.

For this earnings call covering NBT Bank corpse second quarter 2025 results.

I would like to extend a special welcome today to our newest investors who joined us in May with the Evans Bank, Corp merger.

With me today are Annette Burns. Mbt's Chief Financial Officer, Joe sagliano president of NBT Bank and Joe onesco our treasurer.

Our operating performance for the second quarter. Reflected the positive attributes of productive asset repricing Trends, the diversification of our revenue streams prudent balance sheet growth. And the additive impact of our recently completed merger with Evans Bank work.

Operating return on assets was 1.19% for the second quarter with a return on Equity of 10.5%. And rotce of 15.25%,

Each metric demonstrates continued improvement. Over the linked and prior year quarters, and importantly, reflects the generation of positive operating leverage.

Our tangible book value per share of $2,457 at June 30th is 9% higher than a year ago, and our tangible equity ratio is already back above the level it was when we announced the Evans merger 10 months ago.

this continued Capital strength has us very well positioned to support all of our strategic growth initiatives.

The continued REM of earning Assets in diligent management of funding costs combined, with the addition of the Evans, balance sheet, resulted in an improvement, in net interest, margin for the 5th consecutive quarter.

Growth in non-interest income continues to be a highlight. With each of our non-banking businesses achieving productive improvements in both revenue and earnings generation year-over-year.

We were also pleased to announce an 8.8% improvement to our dividend to shareholders, marking our 13th consecutive year of increases.

This reflects our strong Capital position and our generation of consistent and improving operating earnings.

Ship announced between Micron and the federal government that notably included additions to micron's, previous Capital commitments.

team members at NBT are engaged in supporting our customers and communities, and participating in the growing ecosystem around semiconductors and advanced electronics, Manufacturing, in several of our markets,

Before turning the meeting over to Annette to review our second quarter results with you in detail, Joe stagliano will provide some additional commentary around the completion of the Evans merger. Joe, thank you, Scott.

We closed our merger with Evans Bank Corp on Friday, May 2nd and successfully converted all Evans customer accounts to the NBT core operating systems over the weekend.

The following Monday, we opened 18 Evans Bank branches as NBT Bank locations including 14 in and around Buffalo and 4 in Greater Rochester. We believe the approach of closing in simultaneously completing the systems conversion, enhances both the employee and customer experience. It reduces execution risk and expedites the integration process.

Through this transaction, we added approximately $1.7 billion of loans, $1.9 billion of deposits, and issued 5.1 million additional shares as consideration, valued at $222 million as of the closing date.

So far, we have re realized the vast majority of our targeted 25% in cost synergies with the remainder expected by the end of 2025.

We achieved a smooth transition made possible by our dedicated integration team with over 100 members from both organizations. They worked tirelessly with the shared vision of delivering a positive experience to over 40,000 Evans Bank customers. As a result of the conversion, we added more than 100,000 accounts and over 25,000 digital banking and debit card users.

We also welcome 200 Evans employees to the NBT team and 3 Seasons Executives from Evans assumed leadership positions with NBT Bank. Ken Pollock as president of the western region of New York and buffalo Regional president. Tim Brown as Rochester Regional president and Audrey Meyers as senior territory manager for retail banking in the Buffalo and Rochester markets.

I personally want to thank everyone who joined NBT for their professionalism, their enthusiasm, and their partnership.

The response from our customers and communities has been overwhelmingly positive. They have embraced our enhanced suite of products and technology offerings, and they've shared their appreciation for the care and attention we've shown throughout this process.

In the days and weeks following the merger, members of our leadership team have visited branches and met with customers and employees. The reception has been warm, and the conversations encouraging.

We are continuing to work together toward a common goal: to serve our customers better, support our communities more deeply, provide enhanced shareholder value, and grow stronger together. Now, I will turn it over to Annette to review our second quarter results with you in detail. Annette.

Thank you, Joe and good morning.

Turning to the results overview page of our earnings presentation in the second quarter. We reported net income of 22.5 million or 444 cents per diluted common share.

Including acquisition expenses.

Acquisition related provision for credit losses and securities. Gains are operating earnings per share. Where 88 cents an increase of 8 cents per share compared to the prior quarter.

Revenues grew approximately 10.5% from the prior quarter and 22% from the second quarter of the prior year driven by improvements, in net interest income, including the impact of the Evans merger.

The next page shows Trends and outstanding loans. As Joe mentioned, we added 1.7 billion dollars of loans from Evans and recorded. Fair value. Marks on loans totaling 95.2 million net of a 7.7 million, reclassification to loan loss, reserves for purchase credit deteriorated loans.

Flooding Consumer, loans, and a plan, contractual runoff status, and the loans acquired from Evans.

Loans grew nearly 1% from December 2024.

Growth and Commercial, and Industrial indirect Auto home. Equity were partly offset by decreases in Residential Mortgage and Commercial Real Estate which experienced higher levels of payoffs during the quarter,

Our total loan portfolio of nearly $12 billion remains very well diversified and is comprised of 56% commercial relationships and 44% consumer loans.

Sale of the 255 million Evans Securities portfolio in May which contributed to the increase in short-term interest bearing Accounts at the end of the second quarter.

And leaves us some near-term. Liquidity. Optionality.

On page 7, total deposits of 13.5 billion were up almost 2 billion dollars from December 2024.

Excluding the deposits acquired from Evans.

The deposits increased by $104 million from the end of 2024.

Deposit mixed characteristics, also improved with an increase in demand, deposits savings, interest bearing, checking and money market accounts offset by a decrease in time deposits.

59% of our deposit portfolio consists of no and low cost. Checking and savings accounts. While 41% is held in higher cost, time and money market accounts,

The next slide highlights, the detailed changes and our net interest income and margin.

Our net interest margin in the second quarter increased 15 basis points to 3.59% from the prior quarter.

primarily driven by the increase in earning asset yields and acquisition-related net accretion.

That interest income for the second quarter was 124.2 million and increase of 17 million above the prior quarter, and 27 million above the second quarter of 2024.

The increase in net interest income from the prior quarter, was primarily driven by the Evans acquisition as well as higher earning asset yields. Partially offset by 2 basis point increase in the cost of deposits.

Evans' higher cost of deposits is primarily in interest-bearing checking and savings accounts.

Was partly offset by a decrease in the cost of time deposits.

The trends in non-interest income are outlined on page 9.

Excluding Securities gains. Our fee, income was 46.8 million and expected seasonal. Decrease of 1.5% compared to the previous quarter and increased 8% from the second quarter of 2024.

The decrease from the prior quarter was primarily attributable to the first quarter's 1.2 million, bank-owned life, insurance gain and lower seasonal, Insurance revenues.

Partially offset by incremental evidence activity.

Non-interest income represented 27% of total revenues in the second quarter reflecting the strength of our Diversified Revenue base. But down from 31% in the prior quarter, reflective of the Evans mix.

Total operating expenses, excluding acquisition expenses were 105.4 million for the quarter. A 6.3% increase from the prior quarter.

Salaries and employee benefit costs were $64.2 million, an increase of $3.5 million from the prior quarter.

This increase was primary driven by the impact of the Evans. Acquisition a full quarter of Merit, pay increases and higher medical costs.

These increases were partially offset by lower payroll taxes and stock-based compensation expenses.

Which are historically higher in the first quarter of each year.

Quarter-over-quarter, there was an increase in technology and data services occupancy. All other expenses were driven primarily by the Evans acquisition, as well as the timing of planned initiatives and continued investment in digital platform solutions.

Amortization of intangible assets included $1 million related to Evans in the second quarter, re-recorded as a $33.2 million core deposit intangible related to the Evans core funding base. We are expecting to amortize that intangible over the next 10 years on an accelerated basis.

Slide 11 provides an overview of key asset quality metrics.

For Vision, expenses for the three months ended June 30, 2025, were $17.8 million compared to $7.6 million for the first quarter of 2025.

The increase in the provision for loan losses. During the quarter was due to 13 million of acquisition related provision for loan losses and a modest deterioration in the economic forecast.

Partially offset by a decrease in net. Charge us from the prior quarter.

Reserve coverage was 1.21% of total loans and covered 3 times the level of non-performing loans.

The increase in the allowance for loan losses. In the second quarter of 2025 included, 21 million of allowance for acquired Evans loans.

The successful completion of the Evans merger was a significant milestone for the quarter and the impact on our financial position is aligned with our expectations.

Continued growth in both net, interest income and fee, based income drove, the generation of the sequential year and sequential and year-over-year, positive, operating leverage and contributed to our solid operating performance in the second quarter of 2025.

Thank you for your continued support at this time. We'll continue. We will welcome any questions you may have.

certainly an has a

Press star, 1, 1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue simply press star111. Again, our first question comes from the line of Mark Thanksgiving from Piper. Sandler your question, please.

Hey guys. Good morning.

Hey, good morning, Mark. Um, first question I had maybe is, what does a 25 basis point rate cut mean for your margin, assuming the short end comes down?

And the rest of the curve, sure.

Happy to answer that Mark, the the impact of rate cuts on our balance sheet. We're, we're fairly neutrally positioned. So we have about 2.5 billion in loans that almost repriced immediately with a downward change in rates.

And then on the funding side, uh we have about 40% of our deposit base uh somewhere around 5.5 billion that we can actively reprice downward as well. There might be a little bit of lag because that takes some active management on our part. But you know, we feel like that's not going to have a significant impact on us because we're so neutrally positioned. But there might be a little bit of lag on the funding side.

okay, and then as you look at, like, the third,

Quarter, with all the moving parts, with Evans, and sort of the purchase accounting impact. How are you thinking about the net interest margin for, say, Q3?

Assuming no Fed rate cuts.

Okay. You know there was a lot of noise in the second quarter. When we think about net interest margin going forward, we know that there is one additional month of accretion related to Evans to have a full quarter impact, and that's somewhere between $1 million and $1.5 million. So that'll have a couple basis points improvement on our net interest margin.

And then, just thinking about the rest of our book, you know, we're probably going to continue to see a few basis points of improvement as it relates to our earning asset yields repricing. That's probably going to get a little bit more.

Less impactful over time as our book continues to fully repriced. For example, our indirect auto book is already fully repriced but there's a little bit more room in the cni and resi mortgage book, but that happens a little bit slower and we think our funding costs are pretty well stabilized. We might get a few basis points but certainly not the same level of impact that we experienced the last 2 quarters.

And Mark, this is Scott. Thanks for the question. Um, I think we both know that at some point in the improving Nim cycle, it's likely that some of that benefit from a repricing standpoint gets competed away. Um, so we're not, uh, you know, not going to be immune to that either.

Okay, great. And then when when deals are announced, nobody really wants to talk or give credit uh, for sort of um, potential Revenue synergies. But now that the Evans deals complete, I I wonder if you could help us think about the size of the opportunity particularly on wealth management Insurance, um, going forward.

So great question and thanks for uh, thanks for asking that 1 uh for us. Um, Evans had a very, very modest participation in wealth management like us. They had a handful of advisors that are on the LPL platform. Um, so great opportunity for us, not only to expand the base of advisors in Western New York, um, but to have this synergistic outcome, so bringing them into a larger established program like ours. Um, it's kind of a similar thought, um, on the insurance side, um, you know, Evans had an insurance

Insurance business several years ago and and uh, um, you know, sold that business before. Um, you know, we uh, got together with them transactionally.

With that in mind, a lot of customers that can utilize our services on a more broad basis on the insurance side. Probably takes a little bit longer to get going, um, you know, because those tend to be an annual renewal Cycles. Uh, but opportunistically uh, we think we'll grow in both attributes.

Okay, great. And then from a credit perspective, any types of lending that you know give you concern or areas where maybe you're sort of easing off the throttle. A little bit, any particular types of particular in the commercial side.

Um, from a holistic, uh, um, desire to have more, um, banking relationships on both the cni front, or the owner occupied, the CRA front where the opportunity presents itself, to be able to deliver multiple Services, as opposed to just the loan, um, we do have a focus there, um, it does not mean that we aren't interested in commercial real estate transactions across our uh, geography. Um, the sheer size of our geography makes natural diversification inherent for us. Anyways. Um but I'm kind of frame it Mark that we're spending more time focusing on those relationships where we can provide multiple Services as opposed to just close a transaction um you know on the uh um on the commercial real estate side.

Okay. And then the last one was non-interest expenses. Can you help us think about what a good run rate might be for the third quarter?

Sure, so excluding merger costs and expenses, I think we came in somewhere around $105 million for the quarter. Um, Evans probably adds somewhere in the $11 to $12 million a quarter. So, you know, there's probably a little bit of seasonality quarter over quarter, with the fourth quarter probably a little bit heavier. But I think if you think of one additional month of Evans added to the third quarter's run rate, that's probably a good place to be.

Great. Thank you.

Appreciate it, Mark.

Thank you. And our next question comes from the line of Steve Moss from Raymond. James, your question, please.

Uh, good morning.

Good morning. Good morning, Steve. Congratulations on the Family Edition.

Scott, uh just wanted to ask here in terms of uh in terms of the outlook for you guys um with regard to, you know, the loan pipeline, just kind of curious. You know, how you how your son's a business activity is there. And and what you guys are thinking about the second half,

Yeah, um, thanks for that. Uh, um, key up for that 1. So the pipeline is very good. Um, you know, we're actually at the highest level in pipeline that we've ever experienced. Now a portion of that obviously came with the uh with the addition of Evans. Um but what do we notice in the second quarter or you know late in the first quarter into the second quarter that speeds the completion has experienced hesitation? Um, so uh, you know, you know, 1 of my favorite uh quotes now is uncertainty does not Inspire action um and uh, and we saw that during the second quarter, it doesn't mean that our customers are not interested in the initiatives that they had planned to do. Uh they've just taken a little bit of a pause and rethought. Where does that position them? Not only the second half of 2025 but longer term.

Uh, generally see people who had projects in place from a capital expansion. Um, you know, or a uh, capacity adding are moving forward with most of them. We've heard of a couple that decided to slow down because the machine, they're ordering from Germany, suddenly became 28% more expensive. Um, but that's a more episodic than uh systematic. Uh, but what we have seen is that people are having some hesitation about adding people, um, because they don't want to be in a position where they have to hire now and send some people home and in around the end of the year. So, um, generally feel pretty strong about we are where we are from the activities on the pipeline side, um, but you know, probably will not experience a a real meaningful change in the growth rate that we had in the first half of the year in the second half of the year.

Okay.

Got it. And then, in terms of

Of low pricing. You mentioned, you know, the ability to re price uh uh the benefit from a Mastery pricing or lower pricing is moderating. Um, where are you seeing, uh, more competition these days?

So, I'll start with that. And uh, uh, if Joe and I have comments are welcome to chime in on this, but, uh, uh, a competitively kind of across the board, you know, certainly. Um, we saw competition in the second quarter in the indirect Auto space. Um, and quite frankly, we you know, we we were participating and growing still in the second quarter. Um, but by the time we reach the end of the quarter competition had

Um, you know, build out our holistic delivery.

Okay? And and maybe on on the commercial side, you know, are you just seeing more competition these days from the larger guys coming back into the market? Um,

Just kind of curious Dynamics there.

Yeah, not not so much on the, you know, not so much. The larger firms backing into to where we are, um, you know, some of the smaller people we compete with everyone's best. Customer has a different different definition. Um, so in certain of our markets, we're seeing a little bit more defending um you know, from the smaller Banks. Um but I won't say that the competition has generally changed radically and I don't think the discipline in pricing, from most of the competition has really changed dramatically either.

Okay, great. Well I appreciate all the calling. You're all set back. Thank you.

Appreciate it.

Thank you. And our next question comes from the line of Matthew Breeze from Stevens Inc. Your question, please. Hey, good morning.

Good morning.

Um, I was hoping we could touch on the liquidity. Annette, you had talked a little bit about that in your comments. I'm just curious what the plans are there in terms of deployment over what time frame and into what.

And then, along with that, the last couple of years, the third quarter has been kind of a high water mark for cash, and I'm just curious how that plays out this year.

Yeah, I I'll start and let's uh net chime in with some of the details, but uh, so not unexpectedly. Um you know, we we ended up with more liquidity um post the Evans transaction because we had opted to liquidate their portfolio. Remember if we, you know, when we talked about this, uh, 6 months ago or for the last 6 months, we said we were lagging in somewhere between 25 and 30 million dollars of investment purchases. So, we were at a point that more than covered collateral, uh, uh, uh requirements, uh, that Evans had for their Municipal funding base. Um, so that was on purpose. Um, why are we, why did we end the quarter with a little bit more liquidity in, In fairness? Uh, loan growth was fairly modest for the second quarter. So, uh, um, we, you know, we we ended up a little bit more and deposit growth in a second quarter. That normally for us is actually negatively impacted by Municipal flows, was very positive. Um, so and I think that's a holistic effort by our people across. All lines of business, uh, to

Say, you know, let's secure, uh, the additional funding, um, because that's where the core value of the franchises. Um, so Matt, when we think about that, you know, just in terms of that from a funding standpoint, uh, we did have clearly have some uh uh known uh Redemption outcomes because we did liquidate or redeem the uh uh the trust the trust referred to. I'm sorry.

The sub debt Securities that uh, we initiate that uh um, we initiated 5 years ago during the pandemic. Um, and so we did keep ourselves in a position to be able to be that liquid, that said balance sheet, still has ample liquidity to support all of our growth attributes and probably as almost importantly here in the near term is holding company, liquidity is still very strong above 1 times, our annual requirements. So really like where we're positioned

and I would just add, you know, as we think about the quarter,

The the following quarter Scott mentioned the sub debt repayment, but we also expect to have some Munn outflows and then you know, the remaining liquidity is probably going to support some loan growth.

Uh, Securities the assets that it's just over 16%, you know, the last couple of years has been more like, 17 to 18 and a half. Do we get back there or is this kind of a new good level for Securities assets?

It's a great question. Um, I think we're reinvesting cash flows that are coming off the portfolio. Um, and if an opportunity presents itself, um, you know, for a slightly above-average yield, um, I think we're capable of analyzing that opportunity.

Got it. Okay. Um, Scott, maybe just updates on the CHIPS Act. It seems like we're still on track by year-end, and despite some, you know, bluster from the current administration about the CHIPS Act earlier this year, I think I read today that Micron, in fact, had a bigger tax break.

Tax breaks. Um, that's our understanding as well that the, uh, uh, you know, that the, the approval of, uh, uh, of the of the BBB, gave them some additional opportunities from an investment tax credit standpoint. Um, how large that is? Um, not 100% sure, because I'm not the expert on the tax act, um, but that being said, it looks like it's a net positive for them. If you remember, Matt and you you've been engaged with this before, they've been very specific about this that without the tax incentives. Um, you know, and without the governmental support that they were receiving that Landing in the United States with incremental production would have been more difficult for them.

Thank you, appreciate it. The last 1 is just Scott. Would love to get your take on m&a, in this environment with the Evans seal behind you, I think in the past,

Uh, you you made the comment that you know, we we need to be 100% focused on integration and getting the culture, right?

Um, and here's what your updated thoughts, are there. That's all I got. Thank you. Yeah. So, uh, yeah, you're you're spot on. Um, we are completely focused from an integration standpoint, um, you know, the team in Western New York is doing a fabulous job out of the gate. Um, we are, uh, getting the opportunity as senior leadership to meet a lot of their customers. Spend a lot of the time with their people. Um, you know, they've been very uh, uh patient and willing uh, to learn some of our systems and the protocol about getting things through our systems. So really appreciate that effort by them.

But in general, um, I I would say we feel really good about where we are from a capital position, post acquisition. Um, you know, we always talk to, you know, every transaction today with purchase accounting adjustments. It's going to have some dilution characteristics, but in the meantime along the way to the closing, you're still running your institution and hopefully you're accreting Capital every single day. Definitely the case with us. We're at a higher level of tangible equity ratio than we were when we announced the transaction. So to the extent that there was any concern about, uh, dilution and the ret, you know, longer term dilution and payback, I think we've answered that question spot on. Um so feel really good about that. That said, I think that there are opportunities from an m&a standpoint. I think we continue to very methodically evaluate those. If you think about the franchise we have right now from Buffalo to Portland and wilts Barre, Pennsylvania to Burlington filling in opportunistically, it is probably our Prime.

Focus and whether we do that organically, you know, with the branch fill-ins and uh, teams that are serving the market, or we find a like-minded culture, uh cultural consistent uh smaller Community Bank to partner with um, looking at both for sure.

Thank you, appreciate that.

Thanks man.

Thank you. And as a reminder, ladies and gentlemen, if you do have a question at this time, please press star 1, 1 on your telephone. Our next question comes from the line of manual. Novice from da Davidson your question, please.

Hey, just stepping back to the nymph for a moment. Uh, do you have like a quarter end?

Nim spot rate. Uh, hopefully that's like a good proxy. Need to the third quarter.

Manual. I I don't.

You know, June's margin included, you know the full impact of the accretion for the quarter. So you know we only had 2 months of the Evans accretion and the second quarter will have a full. We'll have a full impact in the third quarter. That's going to increase the margin in and of itself a couple basis points.

From 3:59.

Appreciate that. And just wanted to confirm 1 of the piece earlier you talked about. There might be a few basis points Improvement.

From asset yield repricing, higher yields, and just new yields, was that a few basic point mean improvement or just loan yield improvement?

I would say, overall, Nim improvement.

And with funding costs, kind of stabilized.

Correct.

Correct. Okay, I appreciate the reiteration of of that guidance. I just wanted to clarify whether

It was asset yields or NIM, so that's a good trajectory.

And, and manual, as we said before, too. That's, uh, um, you know, this would also presume that at some point in time we get out of the current, uh, inversion that we have into that very important deel of the curve because that's where we're pricing most of our assets off. So, there was pressure on that in the second quarter. If some of that pressure could relieve, I think our opportunities would be even better.

Appetite on the fee side for, for either additions or or Lyft outs or just is, is that something that you have extra focus on or is, is just are you being opportunistic in general?

Um, I I'm kind of frame it this way. Is we love all 3 of those businesses. Um, and so we are motivated to organically grow them or opportunistically add uh uh, to our base be uh, via m&a. Um, remember that, you know what, what it would like about those businesses that generally over time, if you can grow them, or gain the yourself. Um, there's a gift that keeps on giving because they don't take regulatory Capital if you decide to engage in an m&a transaction. Yeah, for a short period of time, you're using some Capital, but usually the return characteristics are so positive on those that that, uh, you know, we're very interested in that that being said, um, you know, to your point acquiring Evans that had a different mix than us, makes that a little bit more difficult. Um, but I think again, finding a balance and continuing to focus on the fact that having a diversified Revenue, stream is a net positive will remain in our strategic Focus forever.

I I appreciate the commentary. Thank you, thank you.

Thank you. And our next question comes from the line of Betty. Strickland from Hove group your question, please?

Good morning. Um,

Of the, the sub that redemption in terms of interest cost, differential there. I mean, I know you said there were other liquidity sources you used to repay that. Were those kind of similar 5.45% rate?

That's correct though. 118 million of sub. Debt was right around 545 on a weighted average basis that was going to tick up to close to 9% as as we turn to a variable rate. Um, so we're, you know, we paid that debt off using our liquidity,

And um you know we have to borrow which is somewhere in the you know, 4 and a quarter 440 so you know kind of the differential between the 9 and the 4:40 is is kind of what our savings would be on a on a go forward basis.

Understood and it sounds like you even had savings versus the the pre reset rate as well.

A little bit using overnight. Yeah.

Um and they just wanted to switch gears to to credit. I mean, do you think charge offs can stay at this sort of lower level? You have this quarter or do we see them tick back up a little bit, giving you still have some more runoff and consumer and solar

It's a great question. We think that the second quarter was a, a great quarter, from a performance perspective on net charge off. We don't think that that's going to recur. You know, our average net charge offs are probably more in the 3 to 5 million dollar range a quarter. So that's probably more likely

All right. Great. Thanks for taking my questions.

Appreciate it. Thank you.

This does conclude the question and answer session of today's program. I'd like to hand the program back to Scott Kingsley for any further remarks.

Uh, thank you in closing. I want to thank everyone on the call for, uh, participating with us today and for your continued interest in NBT. Uh, we look forward to catching you up, uh, in late October on our third quarter results. And go Bills.

Thank you, ladies and gentlemen. If your participation in today's conference, this does include the program. You may now disconnect good day.