Dime Community Bancshares (DCOM) 25 Oct 192019 Q3 Earnings call transcript

Good morning, and welcome to the Bridge Bancorp Third Quarter 2019 Earnings Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Mr. Kevin O'Connor, President and CEO. Please go ahead.

everybody. welcome and morning Good Thank you call. third earnings in joining us the quarter for I relating join a so with know competing we're call you the I taking to time to us. appreciate acquisition an be able aspects the certain business strategic I'm certainly in our pleased to an direction performance, of context overview some give the provide and challenges discuss of on BNB. to for

your by questions on joined John CFO also conditions. our our market call results regarding to I'm and general take McCaffery

positive share. financial including ROE of generated XX%. assets delivering income several was We into common on record strong me reported from an tangible of factors, approximately income This some Let and and of start services. to on banking net of net highlights. $XX.X EPS record with businesses our return Return interest mission is our core X.XX% of a complementary of This fees performance equity levels or XX.XX%. community million $X.XX a result many of translates

the and success, trends we past Diving deeper continuation over the reasons strategic we've the the of instituted results the and into years. initiatives many the of benefits see for of the several quarter the for

loans discipline, and net in and grow this with coupling pricing margin. interest to continue assets and We we've both growth net expanding delivered deposits, earning an

core million year-to-date. funds by or X.X% in by loans this of certain on we've X.X% for million a provided the competitive has deposits. XX% seasonality almost or XX.X% and The They've and year-over-year or been primarily $XXX seen basis. grow, by on XXX Specifically, over-year despite despite some downs significant public grown a growth pressures, pay activity, funding year- year-to-date basis

deposits to of of being the XX strong, an experienced delivered in points mix contrast The has This increase X.X%, prior with This our remained core margins. of a many loans banking almost deposits who strong mix funded interest net contracting quarter. of the by began of margin total XX% of community basis DDA. competitors these over

management. coincident strong These assets Fed with an achievements our repricing again mix appropriate reflects and sheet fixed floating-rate managed underlying and of we've deposit actively the recent prudent There cuts. rate is balance franchise and

We the certain by wholesale and higher broker investments. replacing low-yielding peer deposits higher and loan-to-deposit liabilities managed than lower reliance minimal and cost a on ratio loans year refrained aggressively deposits. also core for began chasing from with accordingly cost We've the

our credit type This discipline, net while in in footprint. throughout originated and in product talented reflect total suppressing excess $XXX as levels, The new in and across core has across the to quality experienced deposit we salary markets. of higher bankers. assets, attract lines in growth in resulted million growth of compete retain growth We've loans expenses increases our

channels and also from the delivery serving next banking our We've generation recognizing traditional services, digital developing customer of movement base. expanding methods invested of in the to

absolute the low However, cognizant this challenging we we touch ensure slowly success. personal shape The rates our level landscape as we are we both that's curve. interest deliver to because operate of the environment, with need of been do the difficult, rate the the banking hallmark remains to of and of a

time. However, value the developed to of partnership past we the strength core the XXX through and manage years the we funding utilize over the this forged of

and I'll John. now the and turn this our income to specifics other call you, greater margin capital. over on Thank to discuss expenses in John detail and

call thank joining all And morning. our this for you you, Kevin. Thank

on we're basis this quarter points on. to Picking the deposit results detail that Fed offset up twice very during touched our more we rate our on rates walking The by yield Kevin the be aggressive the headline That's some is achieved floating-rate expanded was of. cut, versus the loans. proud second margin, able management XX in quarter. on through This which funds through of net themes fed were of the and the interest drop I'll quarter.

broker DDA amount increased total high fell while XX decreased the interest of we point, cost cost balances. earning deposits basis dropped Quarter-over-quarter Additionally, liabilities the points. of and one asset basis yields

had of to purchase that I XX been the accounting accounting effects our wanted we the on Although margin, margin de-emphasizing quarter-over-quarter. with out the expanded points basis purchase point

Year-to-date, X%. deposits grew customers, and a partnerships X% grew our those million loans corporations, individuals $XXX deposits, million also $XXX our IPC for by of and

XX% This ratio in broker mostly loan-to-deposit at of is to the at of as increased Our public versus XXst. due deposits. deposits, well end the third to drop seasonal outflows XX% quarter December as

non-core grow our continue loan-swap Title to As all our well shedding of and income this performed to, Kevin liabilities. of sale fees, our program, while on assets core and gain on non-interest cylinders. firing businesses, alluded we're SBA margin, we components loans All quarter.

income increased the non-profit over QX in Total last period year. XX% same

structure statement increasingly borrowers. loan-swap income our environment attractive our to the been this Our program as has the out for current rate on broken first the quarter, makes time

up million and rate, our converted sequentially to of the impact XXXX. the the we Non-interest excluding diversifying Since last over of $XXX estate year, that's exposure expense period loans have XX% book. in rate loan was X% in the fixed XXXX, floating from fraud real loss same

incentive salary in are the costs insurance related people majority increase increases increases to The increases medical and of investments there and is new accruals, Besides well. in in as technology. hires,

increase tax channel customers' last new and the related in to our during due to large processes of systems related our the being year-over-year. are loans two building efficiencies quarter costs renewed. part expanding offerings, $X software million our our XX% digital protecting investments medallion QX expenses in investments provision and was to data. drove and Technology in These

medallion they as TDRs. are designated in previous loans, As

as two currently The of been certain result increase was X.XX. provision growth are past The current due also additional loan the The in brought categories. loans performing loans agreed. since was has loans due that in after to

Non-accrual that we're mostly loans two paying loans were to off. quarter-over-quarter due down CRE

having a very working We to at time model this close say have compliant be no guidance will on to we and than we CECL in XXXX. other are

X% tangible book the Tangible crossing the at to threshold equity $XX.XX. common quarter. this per in continues value came in share Capital build

year, Our XX%. us QX any rate take spending we'll this are tax for XX.X% you estimate Thank at time, with and we for targeting next may you XX% time your questions again have. for to the for was

[Operator Twerdahl Please from with will Sandler Instructions] come Our first ahead. Alex O'Neill. question go today

First off that little a third housekeeping. John, FDIC would in received credit have you the you do amount the of have quarter? the

It was about $XXX,XXX.

the to then, over to And just move margin.

side, the carry-through quarter, before quarter fourth expansion, that you potential about get might or it reflected think nice due remixing in the do full Some like. talking this the in really from recut? of looks October the on that point alone liability impact at we just some the Is margin to this into the a little remixing impact

was cut, rate There'll be of a carryover due middle to the month. the of little bit September it

get happens regardless we some So, next impact week. of of didn't - that. what are we carryover able full what to will be There from

Okay.

continue expanding the bring margin et the year, could liabilities just the so, cetera? the of of And ability into down of deposits, to given sort the cost end and remixing

buck if some We this subsequent subsequent rate cuts rate we the floating of not to much. optimistic, token, the but cuts don't bang know as were the on rate lower I ability loans cautiously the think going behalf same worse. on had same We're for rate by much first our have two. But, of this to

fee reined on loan above be is is guys fees think that are for XXXX. to Is growth targeted or fee going quarter right track to do you loan third you a income, in quarter? with seems it swap the especially and into well strong the hit your then, now little for bit income that And just fourth swap a that

a getting can yield shape, get and those. same we get the inquiries on a lot are of now, just can lower fixed a customers on because higher curve floating we Again, transaction. right still We had from that rate a rate they

from beneficial it's more lenders. both we're and every day inquiries So, but getting for customers side,

accepted an borrowers. It's for certain rate fixed exposure get the to to way become

Our will question go come Erik Scattergood. Please Zwick next ahead. with Boenning & from

John, in or margin in net basis quarter? contribution missed accretion, it the Did to third have points accounting either I I in the remarks, think you but you your it. terms the dollar prepared purchase from interest mentioned

I didn't about I X I'd basis to it have remarks. in X the guess, it's quarter. But give I points. about it in put it, at

loans, were in relative to quarter at great CRE the which the investor multifamily ago quarter, to particularly for of was obviously quarter? months the strong. growth strong How growth segments are are looking what the then, end expectations And in three pipelines and see, very and the at your fourth

we So, the which quarter fourth about is - X.X, it The higher million, loan beginning the of a get some in over quarter. the of the quarter, our that's last did lot and we week led last happened - than pipeline in closings was. into of is $XXX

fourth the to have quarter on for get for also I quarter, a is originations. we in as stronger typically us mention, which pace loan back So,

obviously I guess, had demand contributed the would success, million. deposits. bringing what Those and great characterize how $XX balances retail commercial growth split factors in in you to and up that between growth? that then, And about were

years, of We think I will. hallmark have you all done growth last a don't DDA, for there what network, has principally we've retail the been if it's the the a in dozen commercial. big

commercial. to that see job all to really are So relationships that's to grow the it we lot tied of them that. we is have. continue A And principally our lending

go come that are over really gives branches Western past and had the ability markets, couple for to of the especially share. wallet those with customers additional we've that years, more Lenders in to our starting online

your And, loan you're metric to me high with you of ratio higher decline the ran deposits range just goal? moved off, that that of to the XX%. Can the deposit of and cost up remind coming how some target

the at like given XXX%, was Our XX is, take XX, We number certainly internal I it keep wouldn't but higher. little I certainly market is the or below but near-term the XX where a below circumstances, bit we've a for XXX. it hard been

funds. And, we related I talked think public seasonality as the

of we and we head tax receivers. the end into the start deposits taking As year

back public fund You'll see again. pop that

me Okay, and just color. And that I I'll one from aside. more step appreciate

question. any gain You you opportunity that to any present look And backyard does referenced two potentially new customers? One, talent or your that morning. have the a this opportunities guess, did part bid? two, and I deal to any at in acquisition

come, going in were have some and, And up. looking choice a since, people. so there is We think to didn't NDA. to really with not of participate, the involved involved did signing not job, turnover is invited We we to come somebody something to should take any and with always be get get that, bank obviously acquisition,

D.A will next with [Operator Instructions] Davidson. David come ahead. Our Please go Bishop from question

in Question terms program. you for of loan-swap the

I XXXX, mentioned $XXX think I believe. million you in

you driven that, on curious the amount how fees dollar dollar basis? converted on if just a Just is the converted? calculated that, have that's the quarter by quarter-to-quarter Just that loans amounts curious this separately and, of on

the it of I term combination were strong this premiums The term, in a amounts the dollar was the though get yes loan. up, It's the loan size on the as of loans the we that were would had quarter. quarter. well. There more XX longer some - of say, - longer a year, bigger the some were and the quarter they them. were Even there term

- NIM? Just flow curious, on And the terms seasonal have average improvement then, tend of offset to that public that does will pressure terms in deposit? to the does the in this the inflows and Company. the the inflationary back side, have The any the of on

in DDA the that of year, mind the comes The keep tax end into money. we

Okay.

the And ending that was week, a of so from an balances. average balance the typically to standpoint it factor much in last see comes

there market, multifamily that lot opportunities market, Also, any general? regulation NYC headlines of there's York, terms But, growth health health in the more of as the commentary market that control noted New been out terms you the market. of that rent the obviously, the of growing of a just or see in in

it the I that through seeing. hasn't really in think we've appraisals flowed we're yet -

rates, it's away. backed there's too. some those are this if loans our lot The There's in still a market. assets, marketplace, competitive companies that But, of think some an highly I cap paydowns people insurance went chasing of some still will. a uptick in issuer you -

has growth growth going - think So, growth something had quarter but we well, some on part quite just in it that our certainly boroughs. forward, not as actually declined it be significant year-over-year. alimony We family the will of is

floors. hitting loans the mentioned you then, And

You rate basis that loans be know, floors the cut? XX maybe amount next the to would hitting dollar XX point of within

be million would XX XX in asset about million. XX next that an The about

million XX I'm sorry, XX and million?

the XX one. for and one for the next first XX

bit, little XX,XXX And housekeeping was this up then credit or final one - quarter XXX,XXX? a broke the FDIC at

XXX.

back concludes question-and-answer I any like This to session. Kevin the Mr. O'Connor our would closing turn remarks. over conference for to

of lot this our this I that call. reflects going feel We a taking they've a a I'm appreciate thank Thanks. strong done John of If for are quarter, hard can you you work. them to want participating. any number the to know was I there a everybody or employees this. on further Again, give time. thank all is specifics, and contributed questions what to call. the I

Thank conference and presentation now today's for attending now The you you. disconnect. has concluded. you Thank may