Community Bank System, Inc. (NYSE:CBU) Q1 2023 Results Conference Call April 25, 2023 11:00 AM ET
Company Participants
Mark Tryniski - President and CEO
Joseph Sutaris - EVP and CFO
Dimitar Karaivanov - COO
Conference Call Participants
Alex Twerdahl - Piper Sandler
Steve Moss - Raymond James
Matthew Breese - Stephens Inc
Chris O'Connell - KBW
Operator
Welcome to the Community Bank System First Quarter 2023 Earnings Conference Call. Please note that this presentation contains forward-looking statements within the provisions of the Private Securities Litigation Reform Act of 1995 that are based on current expectations, estimates, and projections about the industry, markets, and economic environment in which the company operates.
Such statements involve risks and uncertainties that could cause actual results to differ materially from the results discussed in these statements. These risks are detailed in the company's annual report and Form 10-K filed with the Securities and Exchange Commission. Please note this conference is being recorded.
Today’s call presenters are Mark Tryniski, President and Chief Executive Officer; and Joseph Sutaris, Executive Vice President and Chief Financial Officer. They will be joined by Dimitar Karaivanov, Executive Vice President and Chief Operating Officer, for the question-and-answer session. Gentlemen, you may begin.
Mark Tryniski
Thank you. Good morning, everyone, and thank you for joining our first quarter conference call. certainly, has been an eventful quarter for the industry. I typically comment on earnings first, but it feels like I should start with the balance sheet. First off, the events of the weekend of March 10 had virtually no impact on us beyond the minimal level of customer inquiries. We proactively reached out to our larger consumer commercial and municipal customers with no movement at all in those deposits or relationships.
Total deposits were actually up almost $100 million during the quarter, mostly CDs, with the mix otherwise being remarkably consistent. Our uninsured deposits are 17% of total deposits, and our average consumer and commercial account balances are 12,000 and $60,000, respectively. We have no broker or wholesale deposits of any kind. We did need to move rates in the quarter, which raised our deposit funding costs up to 31 basis points.
And as of the end of March, our full cycle deposit beta is 5%. Joe will speak further on this topic, but we have $4.7 billion of immediately available liquidity. Loan growth in the quarter was solid at $173 million, mostly business and auto lending, and asset quality remains exceptional. Earnings for the quarter were lower than we expected due mainly to expenses and the elimination of some retail fees, both of which Joe will discuss further.