Investors Bancorp (ISBC) 1 May 212021 Q1 Earnings call transcript

Good morning, and welcome to the Investors Bancorp's First Quarter Earnings Call. [Operator Instructions] Please note this event is being recorded. We'll begin this morning's call with the company's standard forward-looking statement disclosure. On this call, representatives of Investors Bancorp, Inc. may make some forward-looking statements with respect to its financial position, results of operations and business. are not uncertainties future of results and beyond Bancorp's are subject and which to statements and these Investors risks, predict forward-looking those to other control, forecast materially forward-looking differ guarantees cause expressed performance of are are which from These can to or actual in difficult factors, some statements. the that harbor disclosure you to statement. In safe last and its night's company included press release, refers That document this incorporated is into presentation.

set and forth of uncertainties discussion of Please go the call Operations complete a now and risks please Factors, the over And the For in Results to ahead. Investors Kevin Investors of SEC. see Bancorp. and affecting certain sections Investors Officer filings Management the Cummings, like more Bancorp, Executive Discussion turn Financial under of I'd Risk entitled and Analysis to Conditions Chairman Bancorp's Chief

prepayment fees, of net $XX improved in interest to reduction of included of we were eight due XX, fees in difference margin some the recorded to Quarter press results Bancorp Okay. for or per This XXXX. the months $X earnings for Thank the last $XX.X our that million of ended or diluted $X.X March to you, and XX ended share. income. $X.XX for night, or year, or basis Investors results the fourth reported welcome caused million for Betsy. per morning, last share Call Earnings March reduction approximately in XX, in net XXXX. and income a company quarter and are in points. diluted for First XXXX. the the in Good Last release, quarter December a million million which compares to million quarter operating interest year $XX.X This diluted The $X.XX decrease fourth quarter share ended noncore per $X.XX transactions $XX.X $X.XX core share impacted three The its million per

also speaking to This penalties a was a All a things solid basis these And quarter. reflects first Today, concerns employees midst in that stronger were we quarter take a it most were able and determination, our fees, with activities in in of the other. on penalty average per were felt on bank. doorknobs pandemic cycle double-digit margin gain a return we the protect keep by impacted banking happy our from our everyday paid to offset grit care where major life. going May, over in by or all its there dividend A of has XXXX. year, tangible in favorable importantly, increase core of the control and customers, increased and the credits fourth of cash a quarter the cost loans of pandemic. million accomplished liquidity, height two R&D reflect to of bank at core about by back our the was were $X.X results These decreases revenues reduction $X.XX averaged on ago, in X.XX% through and mortgage of XXXX. each assets for quarter. no one equity, we company the process. go. retail expenses employees. There what branches and was Through open, our where be the are last third reduced we were of was time return these considered, look dividend year to over PPP $X.X good tax report rate May period. our more by These Excluding normal recognized I'm quarter we start with of share uncertainty the million that and The last remarkable or this have to this points. fear sale the year due declared of the in and I $X.XX credit to When straight paid touching of capital in operating comfortable routines is a and it to ago, Customers X-quarter were and our

approximately Our points. capital ratios are up XX basis

Our credit is for ever. stronger culture than outlook is And bright. XXXX our

both all bank office the back are to that We and that serves communities our to and anxious get of our times crisis. being look forward in to employees good and times customers corporate

September million On are the million as with reduction completed of loans negative or for quarter last was XX% recoveries nonaccrual last front, from six the for XX year. and down $XX.X loans resulted This credit or $XX.X our quarters. XX% in the fourth and nonaccrual million $X.X in net our no in were two charge-offs charge-offs cumulative of net last net the months

nonaccrual XX XXX% coverage XXX% portfolio, loss In loans loans of XX million, loan $XX.X to at Our average September of which from of last XX. versus loan quarter this million for ratio last is year. total $XX.X approximately the commercial loans nonaccrual of an is March at $XXX,XXX, consisting our year down

a in exposure Our in is portfolio, million, for and which reflect similar CRE $X.X million. XX remaining business nonaccrual for an $XXX,XXX. a of loan, and nonaccrual our loan at three The average loans exposure consumer of loan largest the $X.X the has $X.X an nonaccrual, mortgage million $XXX,XXX a loans loan March multifamily average XX are: to and for group

Almost due with loans loan the work and discuss include taxes since believe room of deferrals total but and XX, trends we down are the $XXX this war effects a to to in get have have every operating interest loans current. June, paying have their million are a met to through We exposures lot credit pandemic. week our and were to do $XXX still to this environment we keeping in deferred At approximately to million and currently our us of March respect pandemic. mentality post that

crisis. out period With a we our respect to to opportunity of and customers reach an to them work to customers effort And we during through deferrals, in have to the million, as largest concerted uncertainty, times time a $XX as principal see build million. made relationships. $XX And have our remaining long-term category this We of The million the help these commenced loans in which interest million X. of the $XX million made of is entertainment are XX both and and loans. April loans payments two $XX $XX up approximately for multifamily with

$XX million remaining million the -- the $XX in So $XX of loans. and remaining million, two million, are million $XX $XX

value, $XX,XXX. earlier recording at we X.X% in to stronger in cash and an expect back It of is deferral with March Washington, payment to be visited debt complex collected cash properties the a it flow forma We we loan period. pro property have is this -- average retain recently at The that end one was the month. of its collections the well-maintained D.C. per those unit should full approximately a of loan two and Washington service. And loan

The other loan made of amenities. interest quality to month, due The sponsorship, flows the occupied is principal up new loan XX-unit loans is visited not the deferral in of of XX should million, an and problem is a and which exposure for remaining and this to its $XXX,XXX. building the is new be average after concessions this $XX and we in is strong is that Brooklyn, approximately building apartment fully earlier and relatively recovering dwellers which a its cash

feel day, a million of what's of principal end that interest mainly the the the at exposure that a And deferral. discussion on lot great So of exposure portfolio, in Manhattan. have we of is of have we this Manhattan million on and we handle $XXX There's of for Manhattan $XXX the deferral in million area. in total our in hotel sector going the the $XX

multi-generations interest are are in Manhattan seeing but showing improving are Manhattan the strong These and not CRE this is and properties sponsorship. tourist little exposure paying are in any $XX All business the million, issues increased and hotels good show major multifamily have The and trends. and sponsorship sector have operations improving of businesses million and do time. in loans family travel. respectively, $XX and activity and in at hotel The for remaining for

mentioned the portfolio. other portfolio $XXX and to hours earlier, loans meeting teams office for basis have the where commercial to a met our discuss first-line Last I in approximately several week, we million. As and discuss been progress we top reviewed weekly deferral portfolio, the for our XX trends total credit on of the

All of would principal that these interest and to off set this are time. current loans at nothing was as and discussed bells alarm there

are trends of grew possible retail practices delinquency in XXXX pandemic. strong low and we loan We at monitoring highest and management us X.X% feel office to in in this in respect in With activities and to other place will risk this quarter. reduction and doing of workplace X.X% changes the strong the quarter reserves, both and credit ahead we level leasing first the to manage make a we with sure manage of impact our stay business growth, a credit everything Today, monitor of the to continue loans in to to activities. loans this commercial compared and portfolios through the team

we usually we in quarter first the quarter are is The a marketplace. and the seeing are slower optimistic of us, activity for

teams are the in of out making engaged They're lending market, market. the the Our are and out in office. calls

loans year-end. this have over We and last billion we compares $X.X to commercial grow $X.X time to XXXX. our $X.X totals billion X% maybe at a a X%, pace X% year strong pipeline, which at billion can believe We and for

million went of down the and of deposit to $XXX XX which deposits related $XXX runoff $XXX down as deposits deposits basis higher-costing the On planned front, cost points our of government for million, million quarter. deposits of were brokered

deposits Our deposits which $XXX noninterest now consumer Noninterest million the XX% company. or a up the for first deposits deposits, comprise million business of our X.X% $XXX quarter. and is for with were increasing

great and development generating our business business core made and and seeing investments loans. the and teams in from are We business XXXX we XXXX relationships have lenders deposits activity with

Berkshire loans Trenton active with the Berkshire Baseball forward a approximately market and in moving two League We is will bring recently in our We partnership And in in and marketing opportunity us. the expand with a in acquisition, our million It to local teams branches which activities for retail Pennsylvania. million are great $XXX coordinating Bucks we Trenton in and additional that have County market. a brand deposits. business in agreed been with will Minor the Thunder, in team $XXX with

momentum during during in or showing Going strong love middle into we market opportunities paying have are banks the the XXXX, and see the attention larger continue marketplace to to as this year the not access great pandemic. bank It and the has management times. customers whose are will teams that and and difficult decision-makers for prospects their local to be their there sees these takes a view, long

in looking community are to record We a we forward and bank, are that year XXXX.

us give operating Now turn the Sean? commentary to Sean the I'd over on for meeting our will the Chief like quarter. Financial who some Burke, to Officer, results

or What first income Thank you, totaling a up were a with over per for per share. share makes. net year quarter difference $XX.X the million Kevin. $X.XX earnings Year-over-year income net and diluted XX%

Our the X.X% net interest points with quarter-over-quarter eight to margin dropped decline. prepayment fees driving basis

as for a decrease noninterest closure interest Year-over-year, noninterest expenses quarter-over-quarter on month $X.X and $XX.X decrease totaled of declining $XX encouraging of of was and Total benefit by $X.X have quarter-over-quarter. costs. Our mortgage by the advisory million driven rebound points expanded however, banking, first million alone April income The early fees margin totaled fees million to we costs prepayment and wealth we basis margin, and however, the debt quarter $XX second costs in continue accordingly. extinguishment million branch note, core decrease million expect the rebound swap to quarter-over-quarter. an of income noninterest or increased from net $X.X Total two a On quarter, driven fourth from quarter. a million $XXX of million, $XX seen of totaled million core fees. our deposit XX%, the in basis

negative loan $X items, economic $X.X million incentive noninterest compared million $X negative of losses for quarter. was down the million. primarily fourth the decrease were was The The driven expenses the for by forecast fourth compensation. a in $X these net primarily Provision a improving Excluding to to million credit quarter the by quarter. recoveries was and compared quarter decrease driven release an first for

$XX.X brokered runoff the grew up X% while down total quarter-over-quarter. $XXX Our quarter-over-quarter. loans deposits Total driven of million were million or quarter-over-quarter, were were loan C&I by X% balances flat while noninterest-bearing deposits; intentional quarter-over-quarter, deposits or $XXX million

XX Our total compared percentage to at XX% year ago. to noninterest-bearing March a improved of deposits deposits XX% to

loan December Asset to losses allowance loans to solid capital XX remain compared a of in quality, loans our for while continued end. X.XX% unchanged at liquidity at at represented at position and to Nonaccrual March loans X.X% X.XX%. XX total quarter remained

end. equity Our common XX% Tier was quarter ratio at one

Kevin to for Now back it to over concluding remarks. I'd turn like

Okay.

bank's our just competence great sort see questions, the through have of turmoil. I and unbelievable on and business leadership careers. employees view. grown as I the team been want growth when for social back that they've up in optimism longer confidence to like successful give as -- just an to There and has we months we this the economic and last Before I I of open the in look in storm platform unrest to provide that year, personal is a continue the for bank XX And serve. The communities executed a last year

is part community different This new we our have serving that employees It social are serve DNA. front to a And to continue We partnership our a of trend is with customers, bank, makes foundation. supporting is of our the brand not the difference. the our of communities it part be responsibility, bank in been our and lines and with the to all underserved. corporate our in on discussions and

be are what and said we and have words, sermons who volumes speak your of our without we actions accomplished. Let

that time. $XX bank XX%; banks local to return XXXX. the New to that thrifts banks, Our Jersey, our XX%. return XX% banks. million And four if for national up times This up donated banks, the and in shareholders has here large XXX% almost versus to compare commercial foundation this have the And investors surpassed New for and favorably national been our community period, them compares over you X.X Jersey return with very national we largest since during since XXX%

and two to the both We our or have experience can range do us In make I do our like happy that will I'd and that predecessor, taking and our on create meeting hall and to my added always Wales We corporate our background employees, and of broad well. something difficulty experience report constantly looking stronger. XX% respect and questions are level, communications Kim God the we of government is women our senior Board. forward The level, diverse. was two our happy are ears better selfless than and getting XX% day. are and to a than on journey be to continuous our teams diverse. is who for XX% listening better we women and And XX% better. better the a every And Dom the a we With to we how are that taken Cashill, the long-term be view, directors reason. destination, They we understand held leadership town getting we and for a servant them. you greater And diverse have yesterday Harmon we And customers, it's most better words in better recently service serves. Their team, we society with women doing. workforce our Bob and continues our DE&I, their good welcome sometimes I has XX% recently gave to and to new XX% others. Board, to I can vendors to to leader to of communities a one to be EVP John at and and being opportunities want don't offices and serve. Dom, bring diverse the journey improvement, want mouth but I that I'm and

I it was President's XXXX. in certainly bright. There and great record the like at questions you. the was hear up lot And We've looks year speech this forward the accomplished said to of five years. you. faithful optimism we I night, Thank last time, hopeful. to future hope in today last and a stronger accomplished and great when in lines certainly turn and The the to to a I'd months. be I lot more are one We look fearful. and employees let's But year not bank, and last have the past over XX open in a XX from as now

Our Fargo [Operator Jared from Instructions] Securities. comes with question first Wells Shaw

of Good cost of with your the trends is off higher the high. morning, growth Are good still pretty starting you in loan-to-deposit sort on runoff funding, guys. the seeing side, that funding Maybe ratio DDA should sustainable maybe light in Or how of from should here? we be growth deposit faster deposit thinking see be should growth pace and that a and that about expectations? of loan growth we funding

nice think deposit I we'll to surprise increase funding continue see that our has been us. in a an the Noninterest-bearing side. on for

were million we think branches. $XXX I quarter, that Total $XXX growth million about mentioned in Sean the was deposit noninterest-bearing though in This about growth.

to we're in think XXXX. did I think match growth I billion what XXXX, compare when in on to in we So you that $X.X pace

when outlook, this it Okay. pricing City your has loan the I see at New what then point? on category taking gotten mix outlook What's at growth you that York CRE I look Has like? at And all? look for does guess? additional in? What we the growth guess, should appetite, improved tighter, Or

the broken C&I Yes. I $X.X Kevin to about $XXX CRE equates billion The That the is is million. pipeline is billion about the way mean, and pipeline to the referred out, $X.X just earlier. pipeline

PGs. that six escrow we're have in mitigants side. to in risk better. on some the that space, of pick pre they doing We so we're And the that. And especially doing getting in are payments were comfortable. extent some pretty better. CRE customers Manhattan CRE additional the that form COVID, in and are but the put seen They're We're on us. not of asking the we with form We're up, need they to getting doing multifamily of where the months Things business yes, side

loan New so cautious Manhattan the at we're also, nicely Jersey at When not in work first running you the from Jersey comes New you point, in business during of loans. you being lot this a that COVID question we're look is, those make "How were And But a you from as there. from ask simply pipeline. more crisis?" is Manhattan, do to away then we contributing the Fortunately, impacted we

at And How guess, the before? or do you able that in then then you terms for deal seeing over in people the maybe to think environment impacts activity this your some participant potentially markets some And outlook customers target some in your just point? we're weeks. me, last weren't hire to get your a few M&A I what's that finally of ability,

Yes.

there'll from Jared, of while right. doing respective be for business number institutions, honestly. institutions deals the bring integrate lending of we're competitive think, a teams in I their little our starting I trying us opportunity financial to additional these are to exactly over their that mean perspective quite you're market. I forces, an some capture a I to think mean, see of I and think or additional to already, bit

as team, compelling far think being clearly, activity, I the deals we there As investments agree technology contribute to management like in that diversified. being as that deal more and I to bigger, to and do funds see, is more of terms having a I mean, just a reason just

that as So deals both wish know I institutions they I institutions, them for area, congratulate those thought well. the in our I deals. as personally, good the far were I on them and

we're great I And time. very is we're either to said be There of way, position. certainly, the Jared, of that. a ahead will the people, the of talking pillars a exciting growth, Yes. those strategic But in long-term things stock moving both and lot strategic are of And partnership, view out opportunities dividends think our a we've good buyer and I strategy core there, a evaluated way, The there it's or opportunities a always M&A, forward. a an organic either lot of chatter, of buybacks. think are lot us. pillars is either opportunities as always here,

Thank appreciate you, I it.

Instructions] [Operator next with Mark from comes Fitzgibbon question Our Piper Sandler.

Kevin, good Hey morning. comments. the I uplifting guys, love

Mark. Okay,

when on might First, on the Berkshire I expected that if us update closing wondered Hills you the be? could any the of branches, give timing

that get Mark. XX, We'll before June closed probably

the with a Okay. And guys did quarter. Sean, the for next this job outlook us share expenses for your front, if nice then quarter managing or wondered secondly, maybe expense you I you two. on could, cost

we provided there. better a be good and $XXX believe bit million, than we're I should a that. guide, in think Mark, spot, was I doing very We've a it around

But when next cost So a closes, probably comes it as not the it be quarter, mentioned, Berkshire in expect sometime second Domenick additional will spot. The quarter. transaction, similar until when I some add in to that in.

So quarter, is they just expense very spot today. looking second to probably similar forward a that in are in

increased guys the given business, branch digitization last, network? about with of consolidations more the then thinking are proactive in your And being rest the of Okay. you

Yes, we Mark. are,

earlier mentioned I we a matter planned branches. think closed We X. closing as releases, we in this fact, branches of April XX earlier I on think, on those month,

we that think I evaluate to so continue opportunities. And need to those

progress and branch around been develop And which continue us that to be catalyst the I for a trim continue will along We network technology online that products, nicely. to the that to think has moving region.

Thank you.

[Operator Instructions] Our comes Capital Duong from next from Steven RBC Markets. question

far, guys. make I through was million? so just morning want prepay Sean, $X.X good to The right. sure that heard Hey, April I income it

$X.X correct. month in of April. million the That's

Okay.

you're So quarter fourth pace be to the then? above level on

Yes. go Steven. far, wouldn't that I

I in candidly. modeling quarter the for We was gave as our where guidance area. the fourth than think for the less the that we were quarter, in far we X% year, NIM were as full elevated fourth

up, $X built eight our XX budget per But guidance. built rebound quarter million maybe we seeing second was and the do to $X prepayment margin budget quarter. to to a Our fees basis pop into in of are We the points back there. million nice expect into our

seasonal in are of exchange, tax =usually in XXXX highest fourth whatever quarter. might the it's Usually, be, because it quarter prepayments the reasons, fourth

Right. Right. makes sense. That

loan basis yield Does what So XX the maybe just explain just income. to So right? strip income, down know the core that down the if yields. wondering If just yield is calculation right, I I we I'm you guess out prepay your my if but were loan points. ex don't I'm sounds drill core the maybe getting prepaid on the just loan with dynamics just around were we

average four categories. try think just the that resi just question is on we kind X%, When best balance the days, answer resi categories, seeing sheet are way the to I'd that around at through to go we're of to I probably coming at these based the loans major on loans coupons Steven, look on about to right here coming X on them is X/X%. somewhere yields X X/X% as at this more And between X has and coming X Multifamily competitive, X/X%. then X/X%, there. market, in put are CRE between those X/X% and in X somewhere is X.XXX% coming you know, become especially X.XX%. and C&I,

So it's liability obviously, benefited on on the interest too. clearly, has rate an impact having environment asset us the the side, side, but

hope your I So answers that question.

Sean. And Steven, it's

market Your correct. are is our compression add approximately math the to the where most is portfolio. current saw And X% probably area. around in just residential The on, we rates

Our that. than yielding, residential was higher portfolio the side yielding is

coming down norm. it's kind of And the back to so

seeing So that's the compression. most where probably the we're spot

Got it.

So I are loan this guess, around yields? guess, rates level think I the static, if on would that just be core you we'd

Yes.

we're expecting this compression to the more forward, And I took quarter. see we we look yield the that the not compression that not We on the degree moving think loan side, first year, but some as fair. that's to quarter. through think I saw in much

it. Got

Okay. then one me. just last for And

now billion prepay now, of quarter. basis over points? still doing borrowings, about are you're But that they're XXX this know planning right right your borrowings. concurrent have, $X.X $XXX about on the Berkshire million What more as with thoughts prepayments, given I Just to deal of that your you

obviously, we that. at we're Steven, Yes. looking

X%. we As billion over at have you or $X.X so the point out,

doing up the paying that. at opportunity an projected we prepayment fees. pick for NIM transaction. than frankly, larger look the about the to by some So that burning a one talking thereby, there's Berkshire been We've We'll capital trade

will, transaction, the as Berkshire the just may catalyst given And Berkshire so transaction using if you that. we the a doing prepayments for supersize,

guys. that. you appreciate it, Got Thank

[Operator Instructions]The next KBW. question with comes from Michael Perito

number sale expand your the missed a Hey on more wondering guys, little you the half if, And quarter that on back residential first, back in think before I bit was just bounce the I pipeline, sorry, can the fair it. a I presumably mortgage it that little appreciate is of if to time. could taking over normalizing second year? gain

income? talking we the you generate, the Are income about mortgage that banking

correct. Yes, on gain sale, the mortgage

and Yes. Mike, mortgage think we front, for that trend will down see activity quarter. next banking on we the that has the number slowed

projected As did down we of when our XXXX. matter we actually that in that, would a budgets, fact, come number

will the I rest is number the think down So as head answer to year. of trend continue through yes, the that we

Mike, mentioned, are that to though to fee swap that that, offset just as we add the I wanted to go expecting down. it's some as Sean. Domenick trend of expecting income year. we throughout we But are decline

how we side, mortgage go little a income and where income gain lose the going we're unfolding, to see we're offset that's the with year. So fee banking we on swap to but an going throughout pick up as

economic conditions, the loan clearly just then the here the Got provision kind How between but it. and that, of kind to for you have initial of that? accelerating the thoughts growth, improving Thanks loan lastly, X% guys X%, growth? strong. any pretty balance Do expense do on we

think we're we that showing, continue conditions. can We think economic stay models our were obviously, this current that improved on the if trajectory I on. quarter, improve to

the will line right item. be been little the slower a could we when from York of parts improve has area direction. than perspective some trending get we the more back country. provision the modeling year, a But And forecasting if that perspective and do there believe New on the it's the of we think maybe a the coming City to other release half mean in keep in I path, toward current

some we'll hopefully, it, say release. I loan that offset will hate but that growth to have

for we're okay? So looking growth, loan

No. Yes.

you taking think my would question, happy I I that probably with. be guys Thank a would everyone for appreciate very be scenario it.

Compass Point. from question Laurie with Hunsicker Our is Instructions] [Operator next

now? Yes, hi, good morning, can you hear me

can. We

Hi, Laurie.

Okay. Great.

know that $XXX deferrals, in million is much don't your City? what Of New Sorry, York I how did. of

$XXX believe. million, I

in is you York multifamily Okay. office in us, will of how much is then New how much Great. York? And New remind that, just and

One second.

City are the Manhattan talking New York about specifically, Laurie, you right, Manhattan, borough?

you Yes, City New exactly, billion have follow don't And much along of too, office, offline. plays New can those of that if your And $X.X York how as York just with lines, into I up maybe in these, you City-specific. well?

Yes.

multifamily, will is million $XX office. the follow up Manhattan, lodging In CRE million, C&I with $XX is We million, X. loans is $XXX is

C&I is X.

were Okay. love seeing buybacks, them. Great. this And slower a they Any little comments Obviously, the around quarter. that?

obviously, think, saw Laurie, stock price pretty our quickly. I we accelerate

to to us would and book gave a understand on where just trying value tangible our on to pause compare reason we're basis. it value there book buybacks So how trading a

to stock got we'll $XX. The there So continue that. around up evaluate

just that So and reason pause as how would monitor stable just said, to I it be gave forward. us going

Got it.

you're Thanks. MOE? a what makes the saw help asked, question, whether to been you a you M&A deal. us would a How it, at going it's seeing the things us buyer Can strategic about help your go? a think do you close about, you too, since little it's then do how landscape about What exciting into we're back What's year partnership about forward, big think How think targets? or moment? Okay. other last as bit last you're side How Obviously, asset size of or on can those you very the look we an sense? And Jared just you M&A? think you ideal? play all

from open I any deposit $XXX say Certainly, is branch to discussions million I Berkshire mean, Laurie, would a yes. strategic acquisition. an we're MOE.

very transactions, the think we was And the year franchise. a with side So you side at X, strategy, of franchise, deal April in to on during down out east there change fits energy. the us. about In transactions if height those a period ago. of And the pandemic, were two of from outside takes time. on the that the last one we both on closed size, are to signage. our Gold and We worrying I Berkshire shutting little the small of look Coast the They're of had lot is it our on a promising police us all get if the Berkshire being

marketplace. of lot we're transaction enhance I to going to a a do do. is great $XX discussions company. think are But whatever on, There we'll would opportunities the lot billion we billion that and be at value of $X the certainly of are open, area looking necessary a and the to lock-on-type in shareholder

for taking questions. my Thanks Right.

no as sponsorship the $XXX hotel $XX million; Laurie, them on too. deferral, said want is I the to pretty and million, and of million, paying exposure The had that. Manhattan $XX I just paying are total earlier, sector interest, multifamily in is There's CRE good which $XXX they're And numbers, operations. improving and emphasize million And all principal respectively. I and us they're interest. interest us mentioned all earlier.

thanks. Okay,

Our Instructions] Stephens. comes question next Breese Matthew [Operator from with

Good morning.

Matthew. Hey,

Good morning, Matthew.

the a kind talking of I pieces, of expansion directly how maybe know the and hit on you core we think here? moving prepayment unfolds that so but of metric NIM, for from cadence ex the about do the penalty year income, lot more

example, Matt, We continue see working still I that through go on maturing room banking year especially think are that some we'll some we'll deposit still number that. CD benefit to rates, from have a falling government our from the for portfolio. buckets portfolio. We're we Like of in our benefits that. in in see have to and

know I C&I I on will the core the CRE falling NIM But continue our NIM have NIM focus balance think core was overall as seasonal. on resi making is just and and at reflective and we're of focusing and are lot are there and that But hit going noninterest-bearing the of up the right, you're that expand. changes multi XX%. fees. deposits sheet, where think in a to look we being prepayment I So

continue benefit think I in So see the core we'll NIM. to

Got it.

Okay.

without exchange. and committee. In talking rate was good impact eviction they're cause. view other The multifamily? had It I would would that of loan XXXX two President legislation question assess And is That's this New pieces you potential? talking impact how kind How seems like of the there's about commercial then of the State impacting in estate Biden it and it kind apartments, real York, market legislation. of seems of growth potential you quality these do credit pieces the and impact about

good to of have for that, at not to be like you capital think I agenda, it's look Democratic in it whole light business. Matt, tax, going the things gains

not economic everything free. it's certainly development, good seems be for productivity. So It is going for to like

and it estate, getting state. hand it's think they generating sector think on the of and going in real city tendency feeds impact And the to as hand strong want revenues a in bite little and a I certainly sector, taxes. that business in operation, certainly I commercial lot the I that and And the in especially for Business investment and But far you country. putting you, very a think have multifamily to to is the the negative tax that don't so bite pays shouldn't them Fox good have forward. feeds too as it's going much. business it don't I listen investment certainly And a a through to

you. all that's questions. appreciate it, taking Thank I Got I you my have.

question-and-answer management remarks. concludes any to turn like Instructions] over to [Operator our I back the This would conference session. for closing

will probably think very Well, be seeing our for throughout a on return and strong I the think it And forward XXXX. in months, And for in a three the quarters thank meeting of May. your I to company, year had you is XXXX you for we've a at shareholders' look the be to equity. again. record all last virtual I company It continue double-digit meeting participation going it's nine today. will

you Have for Be and well. today. thank your your participation enjoy a day, great spring. So

The conference is today’s now Thank you attending for presentation. concluded.

disconnect. You now may