Berkshire Hills Bancorp (BHLB) 20 Apr 232023 Q1 Earnings call transcript

Hello, everyone, and welcome to the Berkshire Hills Bancorp First Quarter 2023 Earnings Conference Call. My name is Charlie, and I'll be coordinating the call today.

You'll have the opportunity to ask your questions at the end of the presentation. [Operator Instructions].

I will now hand over to our host, Kevin Conn, Head of Investor Relations and Corporate Development to begin. ahead. go please Kevin,

thank My joining Investor name Officer. Corporate and quarter Relations Bank's earnings Development call. is you morning, Berkshire for first and Good Kevin Conn,

Executive are Greg and Chief Risk President Here Financial Lindenmuth, Nitin me Rosato, Chief today and with Chief Officer; Officer. David Officer; Mhatre,

forward-looking non-GAAP earnings on from is and remarks Please those to statements Our to see include presentation Page results A Actual our non-GAAP news statements forward-looking measures. will disclosure X included release. statements. the of could referencing refer legal measures. of financial and financial differ our non-GAAP in materially reconciliation measures GAAP

At this Nitin? Nitin. time, to I'll the over call turn

Thank progress March and on first the turmoil for any EPS you, quarter was begin in the I'll EPS where despite and first highest per good Overall, headwinds GAAP solid on in the my or everyone. of we in made highlights earnings the Slide share quarter. ever Kevin, market steady quarter. comments you overall. footing and morning, remain X, can our see $X.XX

and income quarter declined year-over-year. of X.XX%, was declined on common XX% linked and points XX.X up XX% per modest million of a X% linked equity X% quarter linked Operating our $X.XX up the decline basis highlighting XXX franchise. of momentum year-over-year up share and year-over-year. Return Net was earnings tangible was quarter

driven our organic liquidity XXX%. uninsured were of lower as in in diversified end to events, capacity loan deposits closed actions further market prudently we quarter, position X% the quarter the linked at the response and fortify Resultantly, many the at In of primarily up and balances our by took March. percentage paydowns growth a quarter. borrowing Average cash to

our down and for the period better Fed deposit total XX%, below Average by outflows And X% quarter. outflows at end data X.X% the most to year line in were relatively on deposit than with for quarter. the in of in quarter. but from linked up of deposits than down deposit basis, fourth was quarter, bank the than expectations the beginning loan less of total industry reported deposit recent the X% less The the were balances [ph] XX% small HL ratio

credit, Given we remain asset this primarily as remain our loan trends, at macroeconomic growth. was vigilant the strong. range, on high our continues of X even expense to end quality to million quarter for guidance reserves build for Provision

to quarter our XXX Our points. basis allowance line to in XXX ended points, loans basis of range at the XXX with guidance

strong. X with ended remained balance and of equity X.XX%. ratio quarter sheet the common XX.X% Tier a We common Our ratio tangible of equity

expected and as Run balance details. Firestone. We to tracking sheet off of including loan these included and books, page, both provides in data run books, we've derisk continue an appendix it's Upstart and the non-strategic the in credit which and off more

and resultantly diversified three risky. trend commercial more some our our included market to in and our of on the less on few relatively more provide a its pages office work metrics remote two and impact which in appendix office in how related details we've will also real that mix Given the estate highlights is David segment, associated moments. the portfolio portfolio, different cover detail

steady made strategy On progress first the BEST front, we the quarter. in

any our we employees employee the last of nationally, part XXth recorded of above percentile. transformation in how call well is and Our customers to respond We A mentioned was critical the XXXX scores XXth the in highest XXXX. ESG engagement that BEST percentile on score at it. quarter our target

America's listed trustworthy by most America's the Forbes as In also by recognition that and first magazine Employers. Best received Newsweek quarter, amongst of us we Midsize banks, one

its Promoter at XX.X. hit Net highest this Score quarter customer point Our

call, earnings the first in the plan. the last to hire we bank and as new hired We BEST of bankers executives part as in our continue several across talented quarter, highlighted

We our the Board the Board members. well addition in with April. Board Karyn prominent joined respected of Polito and and two Board in enhancement February Rosengren also Eric continued joined the

our both Eric of from XXXX management and broad brings Eric oversight. since aboard Lieutenant the the has from including private banking most program of as and Bank sector, President Corporation. expertise environment the and economic as further trends enterprise of industry, insights for recently Governor Massachusetts us bring been Development Reserve and and on Welcome and as Karyn will CEO to Eric. the Federal public XXXX. Karyn XXXX, strengthen Polito at regulatory the Principal risk Commonwealth Boston

on our which Star BEST Slide metrics. performance X program's five chart, North progress shows key details our

near are return for on range tangible assets return target end and low equity. We on the common of our

to Our of BEST million annualizes PPNR of million was XXXX and quarterly end our XXX at XXX million. low XXX to target

J.D. Promoter our Our design above quarter, ESG at versus Power NPS score a that ranking get still administer. nationally goal helped in Net footprint. meanwhile, been Score We're mid XXXX. our percentile Power was our our stated through we customer and with surveys tracking In top this XX% XXth to peers working reaching customer the us competitive by of have J.D.

of which As mentioned earlier, our full all like would score highest was XXXX our of significantly level its first I quarter I ever Berkshire NPS in of our came the year higher in score commitment work leading and Bank thank at to their XX. strategy and our high-performing hard to responsible XX.X, than performance is commitment our customers is Their what bank. for dedication socially to colleagues ongoing progress. our continued vision of to a improvement our and driving community continued becoming

the call that, turn in With financials David? over more our detail. discuss to to David I'll

overview shows quarter. of an Nitin. X Slide the Thanks,

fully year-over-year. matched earnings, XXX $X.XX share, up million and XX quarter XX GAAP were XX.X basis points or linked points, up As earnings, diluted mentioned, and $X.XX basis year-over-year. Nitin quarter per Net down was linked margin operating which points interest basis down $X.XX

Non-interest XX% Net spending revenues interest were linked maintained quarter with up up X% 'XX. X% X% income while they discipline QX down from declined XX% operating linked expenses our down year-over-year. and was $X.X X% were up quarter million quarter-over-quarter year-over-year. We or and

of end growth organic was fewer expected charge-offs credit were guidance Provision Average within Net driven million or X%, for loan for Average growth. decreased loan the $XXX million, million. of by our expense the X%. average driven XX we and our by X paydowns. $X million of quarter loans and $X range our loans at January increased than less points allowance or $XX million losses loan by diversified high or basis increased deposits

a was Upstart the portfolio. more credit balanced our are driven books book shows adding metrics All appendix by on Strength balances. our by in We've modest X in expectations. commercial loan residential and data. loan on consumer decline in page detail our Slide over within time, enhanced yields and average which was portfolios runoff by offset weakness our data CRE, runoff book,

and or by Slide $XX versus period $XXX decline quarter X into shows our than the of half deposits total moved deposit which management in fourth million less wealth about million products X% money average X% deposits of year-over-year. business. declined balances. million, End or of the $XXX Average declined our quarter linked market

of an through tightening. Non-interest modest with bearing points deposit XX is bearing deposits Fed XXX a total above As were percentage the and up decline the deposits and cumulative costs points, deposits basis XX% shifted non-interest mix XX% points Deposit in deposits. remain The basis XX%. quarter. basis increase was in a for beta time expected, as deposit deposit of fourth the beta quarter total from XXX first the

or deposit volume higher while we Turning show higher decrease interest growth XX% quarter higher X% the of and to income. X, interest to loan to income, interest million a year-over-year Slide net net a loan net interest provided borrowing income primarily volumes contributed higher income. in Higher costs net first interest amounts lift was X.X in meaningful the function The and rates.

by higher about flows quarter. fee tax wealth XXX,XXX wealth in added fees, seasonal by net million $XXX,XXX item I'd quarter, to up wealth management shows X% higher management and or income, in X Wealth in that a fees. largely management, linked revenue to management Slide was other in fees a the a $XXX,XXX increase increase market prep note helped X.X driven like and values. asset revenue

first fees credit unusually Other revenues card of year, by which quarter last this of impacted in were revenue $XXX,XXX Year-over-year quarter. driven included swap first was amortization the quarter. occurs tax higher the typically fees other by high in and debit sharing, loan

XX below occupancy compensation in just lower expenses down Slide the and were I'd continued on shows midpoint and the quarter on had million we workout unfunded X.X increase expenses. fourth fourth Increases lower Expenses other XXX,XXX year. our quarter in an technology down of versus expense, the the offset of loan guidance commitments expense by last in $XXX,XXX and equipment, provision control. January and that for note other expenses. are expenses strong were

perspective. quarter several million mostly our of XX-year summary a of lines charge-offs XX down loans Non-performing metrics. added X.X total were of at X.X of and for stand is quality consisted of million. XX for averages X.X fourth the C&I show million charge-offs We've loans. points Net Slide basis asset loan to metrics versus

are portfolios are and quality credit our our current exist benign, that recognize monitoring metrics both we While uncertainties we economic and very originations carefully.

given interest There's in office remote particular the been CRE of increase and lot a work. exposures in in

included weighted approximately million book portfolios. office ratios we balances of our average two the with Office to pages appendix mentioned, first loan Nitin XXX the and quarter CRE in As totaled in value on XX%.

lease loans XXX about book the or were XX% that million XXX XX is XX% down I'd our office of a have end Class are million larger office business suburban non-performing from CRE of note basis points The in positioned; We and XX% in also maturities to districts. our X loans space. year believe majority our or is ago. XXXX. period office central first properties A well loans quarter, portfolio office basis beyond of points About overall in are

improving to We the and liquidity Slide five the we GAAP capital Funding borrowings in which liquidity Fed's shows quarters positions. Fed our over Term XX the Slide on. over or March on shows returns basis. Program. quarters, five of no a market, past spent solidly work most our bolstering will time a funds continue banks, and had from the trend Bank We details the XX see operating window, position. our Like prudently discount last we

on capacity I'd FHLB at borrowings our were quarter ratio that XXX% and shared basis at our Nitin deposits. million average end to note and other and deposits for deposits uninsured would balance XXX billion. increase of X.X quarter cash end that million XXX%. municipal XXX Cash collateralized and was quarter. for certain borrowing the an liquidity uninsured of Adjusting the was that the

X.X%, to $XXX of Our rate XX HTM basis, tax, the TCE at very fourth given would Including mark from an million after mark a an XXX lower improvement mark the quarter included and our quarter's environment. on ratio point AOCI million impact. ratio of an a drop X.XX% ended TCE million after modest the basis tax modestly $XX

per up Our at ended tangible the quarter book share fourth value the quarter. $XX.XX, X% versus

share tangible the chart right improvement per value in excluding shows The share on book both and AOCI. per book tangible bottom continued value

Our top is deploy capital priority to growth. management organic support loan capital to

Secondly, $X.X we price we average QX, $XX.XX. remain to In value. our intrinsic of at of current bias worth given cost stock compared an stock stock repurchases, opportunistic to repurchased million

With that, turn further I'll to comments. for Nitin back it

economy, Thanks, market, close remarks on nation. with solid Eddie be microchip local positioning. We're primarily Syracuse, England we're steady over largest excited which the volatility companies New recent creating in industry like $XXX and operating plants footing. David. that made I'll in to billion fortunate in through government being like my investing of the the private our one remains comments relatively Micron we're the markets the investments In and on about

than are like has than experienced much current the over better incremental a significantly volatility past and reform likely will capital in the liquidity great The months. focused are industry different banks of banking on regional and positions, Berkshire. banks large financial a industry be issues more Banks crisis. lot [indiscernible] the regulatory The and several community

Problems concentration, appear held larger banks dated to with and long few maturity to liquidity to with unique securities regional isolated a models. be customer business

growth organic a that market position our focused and on while disruption are We and we benefit from strong our to the better. in capital footprint. getting have position and and responsible liquidity bigger confident will get We profitable remain

turn open the line the to for I'll that, Charlie, With it operator for questions over now. questions. please

Of course. [Operator Instructions].

Capital RBC go first line of open. is Billy, Please Our question Billy your comes from Young ahead. Markets.

guys. Good Hi. morning, you? are How

are Very you How well, Billy. doing?

Good.

Do start around just the borrowings FHLB you strategy the maybe sheet the borrowings. term? the guess off of rather I you it thinking on What's an First, balance sooner expectation of holding paying your in these could than later? have near on

great Sure, Billy, it's David, question.

week we bolstered position, post Bank March primarily of did and the Home So the as Loan borrowings. we out liquidity that Silicon in turmoil, called second in comments, the by Valley have our tapping

all levels quarter, ended So at comments, balances. cash I higher We to home little million a in loan will the we the we internally, down XXX crisis decided that about by my of certainly and as second over advances. will quarter, suggest number said in past like I it we much of would What target it a probably bring feels assuming the which is, we're that third.

So bank liquidity -- of depth last the the still balance very proud as well to amount quarter and quality competition a up million on customer on side ballpark deposit The of It in private year. quarter institution of performance reduce surprise as versus in $XXX depth our will of the the deposits. the a the of the the growth And and really outpacing the about be of relationships, as that's more reflection see a the both newcomer We're the as loans in banking. excess and market commercial and deposit fourth our quarter though. the to the pleasant funding quality of diversified shows retail sheet. base

Thank -- mid-teens match year? I established you what beyond established that you the in competence just that level the that. guidance on provide additional you. can quarterly you but with appreciate typically you on updates comment for appreciate don't January, achieving NII guide I

Sure.

of be is it's clearly. going XX%. What downward, the would and income guidance. So guide we're say margins interest upward pressure that on a is But to that XX% clear not to was not adjusting non-FTE I that

that do count, you day as pick we're at QX, achievable optimistic guide And year the this a up We annualize unfolds. know, remain as little is below. that you point. still we If

down, As up the pressure I said, is not income. clearly net on interest

and sure need to will trying about side investments to, Nitin we of making last we up right the headwind team in while we and several careful last some about over very if make that expense two years. offset the have people being technology wind still on that talking -- the So been the

on Thank step you then origination earlier growth comments loan just year think it. mid digit made new on question, to of growth additional I'll laid essentially period And you. credit your And should about of take here? you growth target the Got appreciating today. and one end there your that responsible and about from this just and you're we and kind last just appetite back, activity, out a single what kind monitoring grow outlook,

This Nitin is Yes, here. Billy, it. I'll take

in think you're that function The moving is quarter. through loan the guidance, I the quarter right. growth came faster the kind the for than original fourth quarter a pipelines but of it's was the in really

expect is the pipeline we at had quarter. what lower The slow end down. the to previous quarter than the We modestly of that at

to expect we clients. And to continue run our So that down. rate yet, slow we serve

monitor to We continue of quality originations. new

the be had expect we overall in will we guidance. So that loan than the growth modestly what original higher

While the the lower. slightly up end we on might guidance being deposit,

going two, made about, to about good earlier the offset feel we NII the those the So with of guidance. I back David think point

growth, up growth getting judiciously. what having do selective. higher end and than the we opportunities and relationship improved We're that anticipated, might would had opportunities we but the pricing loan more we along being We're slightly way. On more

you taking for questions. Thank my

Thank you, Billy.

Thank you.

next Please Mark ahead. your Mark, Our open. Piper go Fitzgibbon from question line of Sandler. comes is

morning. Good Hi, guys.

Good morning, Mark.

morning, Good Mark.

about the growth I from better. ideal are pedal metal perhaps a now the talked Do as in on we fast late right credit on worry do perspective? just worry given and But growing a are in you loans really that about spreads cycle? as economic you the Nitin, that know loan up I've you that to follow look how question wanted past. you to is

have No, potentially the here. actually right, question. year Yes, the you're quarter last We ended We've metal down there's pedal no in great to no probably slowed Mark, so. the than originations. last and up saying more in or we

want with clients. some We being with to selective. serve are as the the that that as that term. We currently prospects recognize of well our relationships. to the the got customers We us, come we focus are take new care keep want long to We of on

originations that And down and down. to lower further. slowing are roughly fact, the about in quarter the quarter, we slow previous quarter first So than right, a our expect in were we

are of disruption the function of market slowing a as plate. that we yet we're of our fact competitors So more actually some getting and distractions And the down. the have, the at swings

we relationship So selective, opportunity get earlier. said I better be to better better pricing, like

slowing originations are no, is So -- it down.

slowing down well. is The the this are pre-pays other of as part

I the that's growth. So think creating balanced

So originations, It's than that year this down. CPRs the be this to they're year. actually not growth go is last lower going really driven by

-- X% growing. aggressive are It's the a growth you market's grew quarter. what well peers pretty first rate. your above the a certainly and With in That's X% growing

Yes. It's now pipeline XX%. down really the we the have fourth that's quarter, in strong that

quarters, lending The slows And As yet, time want is to that customers we recognize the to growth get into to also for our we provide to this originations Mark, the opportunity and we turn us And them scenario. down. slow a great continue that away next rate this of don't of well. I down kind also in think perform correspondingly.

franchise sell around there could on potential more out. if then of I Geographically, pretty footprint? wonder the the franchise? And us or your Great. to obviously parts your shrink Is you thinking footprint's spread update sort of

three footprint Mid-Atlantic. to looked And at XX% you years. over it, have We XX% about We know, we last reduced got Mark. as our branch out by of the

we look markets. a new bankers those in fact markets we for significant see able continue are are, the in serve comfortable customers especially found of deepening it, And that couple for to those over that where given of We we're lot the relationships to but years. last opportunity we've

or any of of tactical looking way. we're along come not time, at the branches geography opportunities consolidation of I outside So that point further at think this

question, would And or of levels Okay. then BEST insight here, pure of point I'm I something to to closer at you what you. consider last your sort guess goals Thank them raising curious profitability?

Great year's BEST be we I will when do question, we -- that our next targets, scheduled call our it by that XXXX. think And X.X as guidance we Mark. done mid was to of part BEST now

our BEST will have X.X also January guidance. guidance the in So XXXX

you. Thank

Mark. Thanks,

Thanks, Mark.

open. Our of Group, Bishop next is your Hovde David line question comes David, LLC. Please go ahead. from

gentlemen. morning, Good

Good morning, David.

David. morning, Good

operating maybe noises deflated temporarily curious. have It quarter. Dave, I'm preamble been just first like the might in abnormally in there that or the sounds some expenses

you about a how again to curious rate operating run and go think basis good and second half expenses? targeting we Just second can a over XXXX you're should the holistic of them what total if in terms in quarter from of

wouldn't state costs but Hi, return the benefit say Yes. QX rate first on we other, run payments as David. noise really employee there know, within impressive and And cetera. is have, out steady the We bit been the in little guidance. called you Dave. in tax I up was It's to a et here with of quarter. go What's we're right expenses. me FICA, also

to expect that continue. We

from in So no a -- first rate. perspective, our good run noise really It's the no quarter. real

appreciate where moment? some it. areas the estate disclosures I other here commercial portfolio, that CRE. screens for anyone real here Got updated we the that might slippage heightened then, or monitoring the on see off maybe Outside you're And on it's at radar not monitoring within of stress else's the -- of any

ahead. at I'm go sorry, not No, all.

ahead, Greg. Go

out reflective really any not right portfolio seeing in develop on credit We're you're performance we will all. other regardless of at remain really seeing. cycle. continue type focused weaknesses it's strong any I really to say, the the now. not overall management of And any of that to But No, portfolios

new and years to in from spreads within curious quarter least your starting deals, what you're I of a then, what's first loan in versus this are at -- and boarding [indiscernible] origination just credit yield origination loan the maybe And know terms LIBOR? an of on the your quarter last, seeing Greg, see couple Southeast

over to the the points take yields production up that. was And portfolio on The basis And X.XX%, closer to improvement Yes, quarter. the XX X% basis new portfolio XX that's result Greg, almost the points previous closer as quarter. X.XX%, the loans so can X% I yields. a went think a I portfolio by in -- in

under heard I shares make And it. just housekeeping hear the repurchased to then right. a I that were quarter this sure you X.X current million Got authorization.

-- No

Okay.

No, in dollars.

dollars. repurchases modest in So share

Got it.

to Okay. I sense. flip going makes the more I that was to -- say to trying was

stop the I'll back in great. Get queue. Okay, there.

Dave. Thanks,

Thank you.

Our O’Connell KBW. next of is Please question Chris from Chris, open. comes line proceed. your

morning. Good

morning, Chris. Good

question I from on The of going that was the loan expect hoping yield yields yields like to you a X.XX. the the loan from increase to follow forward in up bit portfolio on portfolio. at prior moderate origination Did kind the here?

-- on XX go basis think was beta XX they up Chris, I think points did the I loans.

expect seen the I far so because to go improved still quarter think we've this production we yields. has that up new that

we So portfolio yes. expect in go up extension, by yields quarter, to natural the the

I XX% just Chris, well as rate. floating chime would the about loan is aggregate of retail for commercial adjustable in as across say and book, so

components, two have you So right.

we're obviously changes well seeing books. the across You the as with spreads have as that's in X% better Fed moving book funds

that on putting got then quarter. on is the side, of And spot one you growth? be expect drivers it. growth right term pretty now in you like what deposit this rates are primary that deposit guys the to the the of Do CDs? are Okay, near for And robust CD the

and question. this the this money year. good probably quarter question banks That's for Yes, for

it's only That still meaning time. yes, -- going legacy definitely as that there So, But But much DDA, now well CDs whole the news money perspective more think and banking to headwinds. good [ph]. with industry against seeing in is The non-interest interest continue rate low industry as can might is relationships, and bearing to specials good six is. that careful we the we perspective, and as in about industry terms, else X.XX%, internal but got short funds you as competitive drive we're everyone offerings. have all the to And and that paid, rates be that know. level will going play enough meaning do the that reached market -- money from to my account to move impacting is there's so Relatively competing money months with openings needle out months about of moves new CD interest it competition with at XX people out there's funds, we're Not We're we whole bearing run us. X.X% now I movements to growth price. X.X%. news to good know over you be there, non-interest want -- just we're my markets seeing from and see any both the

Chris, if may hi, -- I add Chris.

Yes, go ahead.

I going think the add, point I Chris, important. David very made just to was is

production, we think last translating into are activities planning that I our good deposit and these been results. so, or are had quarter over

for And flow XX% DDA Our as season, expect to bucket kind balances production, into by that up well. that is of we those see example, as year-over-year.

those of segments you already that -- a So that we campaigns going years. relatively of promotional DDAs. where kind have laundry we're better, extent less bank new we six other XXX could money have eight pressure. in them Chris helps And that we for pricing Tier in of And favor, from the to be out price in the goes a on is insulate list our ourselves campaigns X towns for after know, they while then markets will operate us pushing are we And CDs been it that over which that on on be and we market, thing and will are also sensitive. the serve

CPR [ph]. of So we hope those outperform banks to all combined, I think

more appreciate on deposit side. the there. color I I just Yes, And guess one the

that you sheet into you quarter balance I type we've think prepared a business were wealth to money second mentioned here? in of lot there. the market seen gotten flows of of side the into as wealth the flow funds this the comments off of Have the some business transfer quarter the into

were week We as was There internally things period within that about to time me of lot amazing of down. of flurry but it of how this a quickly was week half absolutely. us thinking to deposits activity happened settled is in time, because a we of the short for within at for kind spent we was last period And really and for tightening context didn't very a time, heightened this a Yes, live. all looking just Fed's deposits long relatively environment back a “crisis” now But actions. well, right? quick crisis competition of as a the had of anyway, the and it over was tough very

together Got of depend you guys help cash will expectation And know you about about it NII a have the can there. substantially all quarter, then it. given on you're just going second quarter know And But timing. trajectory it down with from I and here in out of think for to margin, I putting second how guide Yes. kind the borrowings come lot the that and the a thinking us the into pretty there?

Sure.

You substantially. used the third. a word I used about the word

way XXX say we And we're or a when it. balance going liquidity normal in levels third about substantial the loan. that about on XXX pre-SVB million was is I increase thinking plan down carrying we're of a that that's third, if backing to sheet back roughly home not. referencing less be million decide can we My Getting So forward. on that'll --

interest the We liquidity that about So kind drag on quarter. X to margin upward X by net Back pressure not did of that points, income, basis in first on margin. to sheet. average our just put the on downward, is really comments would balances the balance the certainly carrying on driven my higher

Fed what second and realistically do over up be as the on or third. tightening is that of you we winds up But the doing have a the will with quarter Fed guidance. around pressure it the it winds into in then margin true. And don't to forwards there give know, it's X.XX, the lot market being cycle So not being going to

to tools on try we've not some in particular offset markets. But going in deposit immune the of and what's in markets a to got So that. the to few we're

side see to and I competitive we continuing for cycle. a been think growth. portfolio. loans we'll deposit reprice up. on funding off work the little loan flows That's remain We've cash the the to But providing have this through shrink

think Chris, just and the to your I'm well. back first in as I the would the question connecting question, I question queue add,

levers meet are NII still think in expecting with there NII think and focused guidance. staying controllable. the that I to still the the I toolbox. we is, We're guidance. that just But that highlighted NIM David we on is have relatively less The

Yes, you forward? use, and the thinking I environment. the buyback more to the And that. me, one for Obviously, I it's hear are you. color last going are market attractive shares utilizing looks on how difficult down probably it about appreciate a guys but

be a intend active throughout the decisions as environment you some bit kind So guys progresses here pause term the year? in the and make or do to of near

Yes. David. Chris, it's

we QX. So very activity had moderate in

the stock prior our when of But we we'll three in is suggest stock to capital the of would highly X.Xx uncertainty quarter. an SVB last the We're economic obviously I weeks and the tangible the on say that at we're there. is value. back where right, paid, we the in they were environment average out higher But you price, modest. in book because quarter was figure market the Let's probably can in shares. important, also second be the half year. in price trading quarter Based bought price those

compelling. So very we think our stock is

economic Board well, the balancing discussion and for to that So need have as internally then active that's capital uncertainty. versus a can we desire you to with as the harbor have lot And buy imagine. we're we our an

for my questions. Thanks taking Great.

Anytime, thanks.

further questions. no remarks. back closing have to team I'll hand the for we any time, this At over you. management Thank

call Berkshire. Charlie, today and on joining for Have your you now. and Thank well. our a you for call great close in interest can the be day us

call. Ladies and you for Thank gentlemen, today's joining. concludes this

your You may disconnect now lines.