Cambridge Bancorp (NASDAQ:CATC) Q1 2023 Earnings Call Transcript

Chris O’Connell: Okay, 2% to 4%. Thanks. And how do you guys expect expenses kind of to trend for the remainder of the year after that level?

Michael Carotenuto: So Chris, we guided to 0% to 3% for the full year. So that’s what we had in our prepared comments.

Chris O’Connell: Great. Thank you. And I may have missed it, was the guide for fees for the full year? Was it down 5%?

Michael Carotenuto: 0% to 5%.

Chris O’Connell: 0% to 5%. Okay. Got it. And how are you thinking about the wealth management fees going into next quarter, given the increased AUM from this quarter?

Michael Carotenuto: Yeah. So as we talked about in the past, Chris, it’s pretty linear, right? If the — if bond and equity valuations remain stable, you’ll see increased levels. If they decline, you’ll see slightly decreased levels. Certainly being up from the end of the year up into the first quarter is going to help on a go-forward basis.

Chris O’Connell: Okay. Got it. And for the move into — from noninterest-bearing into the interest-bearing checking on the ICS, but what’s like the average cost for those ICS deposits?

Michael Carotenuto: It really depends upon the client relationship, Chris. It depends upon the entirety of their relationship here at the company. So I don’t have a — I can even look at the release, it’s about 93 basis points and interest-bearing checking was the weighted average for the quarter.

Chris O’Connell: Okay. Got it. And as you guys are thinking — or I guess, one, looks like the security duration right now and maybe what the kind of monthly cash flows are?

Michael Carotenuto: Sure. So the expected principal cash flows of the securities portfolio remain between $100 million and $150 million over the next 12 months and the duration of the portfolio is approximately six years.

Chris O’Connell: Got it. And so I mean, as you guys are looking ahead on the margin, I mean, is there any other balance sheet actions that you guys are considering that can give some sort of flexibility to kind of reduce the amount of wholesale deposits going forward or the amount of wholesale borrowings?

Denis Sheahan: So the primary — Chris, this is Denis. The primary would be deposit growth. And we are optimistic about our ability to grow deposits here for the rest of the year now that we’re hopefully through this period. Beyond that, I assume you’re referencing some form of a balance sheet restructure. We would always look at opportunities from time to time, but we have nothing currently planned.

Chris O’Connell: Got it. And as you guys are looking out, maybe if you have, how much the fixed-rate loans are set to reprice for the remainder of 2023? And if you have like 2024 as well, that would be great.

Michael Carotenuto: Chris, I don’t have that information here. We can follow up.