Independent Bank Corp. (NASDAQ:INDB) Q4 2022 Earnings Call Transcript

Mark Ruggiero: Yeah. I think our expectation is, there’s so much uncertainty in the environment. We really are looking at it, only three months to six months out at a time. And I think you referenced to the approved pipeline here at year-end, it’s down a bit from where we were in the fourth quarter, but not material. And you saw the results in the fourth quarter with the growth we experienced across most of the commercial books. So we think it’s — we’re very positive about the opportunity. Certainly, the rate environment is helping in terms of seeing some reduced level of payoffs. There are some credits out there that we think may still exit and may be in the process of being refinanced. But for the most part, that activity has subsided pretty meaningfully.

So I think even with a more cautious approach to new deals given the uncertainty in the environment, the lift we’re getting from the reduced payoffs, we think translates to some level of modest growth as we noted in our guidance.

Chris O’Connell: Okay. Got it. And as far as cash levels, I know it’d be bouncing around depending on deposit flows, but is there a minimum level of kind of overall cash that you guys want to retain on balance sheet over the long term?

Mark Ruggiero: No. When we look at liquidity balances as a whole, Chris, and comfortable with absolute levels of liquidity, whether that’s cash or other short-term investments. So there isn’t a specific cash number that we’re targeting. Just a reminder, we have zero wholesale borrowings on the balance sheet today. So we have plenty of access to off-balance sheet liquidity. We have different avenues we could go down when and if that need arises. So we’re comfortable borrowing overnight. We’re comfortable extending into longer-term borrowings if pressure on cash subsides. So we think we’re very well positioned to just take that. And as it comes over the first three months to six months, certainly monitoring our deposit outflow will be a big driver as to any decisions we make on any long-term financing.

But at this point, I think it’s still very fluid that you’ll likely see at least in the first quarter, some level of cash and/or overnight borrowings if that situation arises.

Chris O’Connell: Understood. Appreciate the time. Thanks for taking my questions.

Mark Ruggiero: No problem.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Chris Oddleifson for any closing remarks. Please go ahead.

Chris Oddleifson : Yeah. Thank you very much, everybody, for joining us today. And for 20 years, I said, I’ll see you and talk to you in three months. That’s not the case. It’s been a real pleasure being on these calls, all these years, and thank you for your interest and support, and I wish you very well. Goodbye.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.