Dime Community Bancshares (DCOM) 27 Jan 222022 Q4 Earnings call transcript

Good morning or good afternoon all and welcome to the Dime Community Bancshares, Inc. Fourth Quarter Earnings Call. My name is Adam, and I'll be your operator for today. [Operator Instructions]

Before we begin, the company would like to remind you that discussions during this call contain forward-looking statements made under the Safe Harbor provisions of the U.S. Act Reform Litigation Securities of XXXX. Private set are that may statements those company in including filings subject and U.S. press differ to factors other contained and statements such and with uncertainties any in cause the from today’s release risks, materially Such forth actual the to results which Securities to you. we’ll and Exchange refer Commission

a are be During in substitute references will performance. release. measures measures please in to measures GAAP. about supplemental assess for this be operating financial to call, review and as non-GAAP GAAP, These the financial earnings non-GAAP accordance The prepared information not isolation these and presented or to measures today’s U.S. for reconciliation financial as with the considered made to refer intended information and non-GAAP

to hand Kevin, now over Mr. ahead you O’Connor Kevin to are begin. when will ready. go please I

you Avi you, morning. Officer; President Thank and and With Adam, CFO. today morning. and are me this Good for Lubow, Reddy, Stu thank joining us Operating our Chief all

We Dime. year year and our And and successful to are throughout into I market strong was share year the dominant our for quarter XXXX very results, focused community performance Island. Long reflects for consistent the to of quarter to power we want strong model But performance. before the Dime. a on our get moment a our comment full report take commercially pleased bank on another Greater

million reported $XXX per EPS we in year, $X.XX full over share. income the net dollars For of and

rising interest environment. return were this X.XX%. of results X.XX%, unprecedented XXXX assets X.XX%, rate four rapidly and the Stable quarters Our X.XX% during on for and

moderately growth our controlled with compared for for must XXXX fourth $X.X supported to infrastructure business give averaged posture to the next a put by keeping the asset consistent We were grow billion I able X.XX% loans customers sensitive in plus achieve balance to level. to each We our employees profitability. our to approximately and of NIM our stated place sheet. operating C&I quarter, operating the delivering our and XXX grew and of X.XX% expenses record our full returns by and credit talent strong and on

our to EPS a growth prudent year-over-year share, growth impressive We loan $XX.X had cost $X.XX income on fourth of increase results quarter well was quarter. across Turning for quarter classes. or of We of Loan of net focused various a million and generated XX%. the asset control. for this another balanced again net

strategic us, million Stu, color grew will quarter strong key the by pipeline a and and the Q&A. for $XXX in have and continue this the this to mix pipeline our priority current provide we Importantly, loan area. on in more balances business sure I’m

with you just extremely gathering consistent XX% also money from banks, heard at Not DDA from to industry but for U.S. and average banking other market As competitive. and these the treasuries environment Despite of is products we able our around deposit were maintain market the from deposits. headwinds, related funds. large, at as peers competition such

to laser from focused designed DDA some this, our migration DDA. accounts, our plans on compensation interest to level expect continue from bearing bottom We prioritizing and but top of incentive on to are

even our bankers be heavily We the generation. will using and year had more their strong over past we this deposit of balance. have objectives years liquidity luxury and on and group the excess a of goals on weighted commercial refocused Obviously,

have branches, have a deliver people our management set. bankers, treasury commercial bankers and on and team systems all with place robust we XXXX retail in specialized we tandem to a in right the our commercial product to addition Working In with goals.

years. over the front deposit few consumer on competitive very not were We past

will others XXXX, come we XXXX segment this as sources. in think late and are starting XXXX being growth well. We competitive into in like deposit However, many from more various

will mix but sensitive sensitive DDA, of accounts. be bearing less market and a include interest even Some price component some accounts also will

Our date in hikes this basis cost points versus XX.X%, of XXX basis of round up of cost deposits beta versus XX increase been the points XX approximately has tightening of to deposit for Fed point -- cycle mid-December. basis to increase in

performance compares York Metro been low in sheet. this relatively favorably level by betas Again, competitors. Our our on our our have balance front to significant DDA driven the New of

clear in banks other differentiator This competitive remains a footprint. for versus our Dime

while As affording New and will get stable and performance of has NIM other his expectations been in growth competitive opportunities into for deposit York you Metro area a historically more remarks. asset robust country. of the our know, quality more market betas in Avi loan parts the gathering,

Moving to asset quality.

Our were due NPAs the versus XX% quarter. and loans past down XX linked days

migrating During a on loans seen classified fairly assets significant to this took the also decline we've and pandemic, in stance status year. classified conservative a we

in quarter net Our fourth detail more loan charge on point. this offs only provide quarter. X basis again Avi the were for will provisioning

overall the sheet. Suffice our of not any we of balance early level comfortable have the we far, deterioration. health to meaningful warning say indicators feel Thus credit reserve seen of and with

As has you our multifamily multiple been our below strong know, been Underpinning index the over bank bulletproof historical that has portfolio have only Dime’s LTV credit competitive well of an cycles. losses XX%. credit performance

to We potential portfolio continue environment. will this outperform believe recessionary any

calls, a on been Manhattan. question update topical office Also, as on in quick our earnings this a has exposure fairly other

with an previously, we loans of approximately LTV million XX%. of mentioned have As only $XXX

by the grow balance the the quarter We to as XX.X%. book a sheet year. had quarter share strong per and or tangible stable AOCI this quarter, we $X.XX able for end value Finally, were

quarterly to Our to strong of by ROAs year environment balance X.X%. economic over positioned any is sheet returns produce date our in evidenced as and

needs. we customers' and our true on are any focused to deposit which have and difficult focused inverted commercial relationships, market environment being a margins managing us rate value front remain responsive bank on in of are as highly remain curve focused We in to in core the a excited growing community yield opportunities and on environment. on We deliver conditions

consistent, expenses and solid XXXX managing prudently maintaining curve cost always quality. prioritizing inverted remain is for goals and yield managing in asset funds environment, of an our Our NIM

this our thoughts turn quarterly on the conference some At XXXX. and additional like I'd point, color Avi over to results who provide to call will around

you, Thank Kevin.

fourth For reported was X.XX%. was The our quarter $XX.X NIM million. common the for quarter, net to income the reported

As fourth the a our quarter base, XXXX full mentioned, position. than Kevin higher asset XXXX reflecting was year sensitive moderately NIM

Over loan the course of addition the and third quarters, demand of approximately the billion we through borrowings. fourth $X supported of FHLB

these Federal and longer does Reserve benefit that or rate interest the While lower the in ability rates we starting one we kept from event borrow we repricing XXXX. cost, month a lower have to XXXX of less into to in duration so the forward indeed can the that full intentionally a borrowings late the curve materializes at

a strategy Similar if kept rising side when on excess cash rates liability to during full are pandemic from the do and similar how we where a many intentionally the from benefit short go repricing we're companies down. following and staying to rates benefited hope and

Net immaterial of housekeeping X.XX% basis and quarter. was balance million Couple this was Included points purchase approximately accretion purchase in from accounting items. the accredible related fairly prepayment currently accounting at stands income. $X.X margin of X

deposit increased to cycle. We X% were were given the That to of again this increase with betas level total increases our do we quarter. and rapid lagging deposits expect funds fourth total from rates, Average cost for continue the Fed XX points. the rate said, of of the by market our down the and basis quarter pleased deposit increases levels pace absolute betas of seen the in level deposits

existing total on a We significant our portfolio loan loan manage proactively on have The significantly continue rate approximately our we to repricing pricing. loan of and X.XX%. portfolio is approximately X.XX%. our pipeline our opportunity This to than rate continue higher is

million, The to which approximately $XXX debt a overall this XXX term on remain opportunity guidance. at extinguishment basis portfolio clear making for full basis medium points Core and granular expense operating us loss necessary excluding to built our is portfolio intangible to points above focused our within longer loan have in our origination new rate. year on XXX our franchise cash highly We for amortization rates expenses of and are very reprice the while into which was culture XXXX level. discipline, on investments was

Core fourth intangible million. expense for at approximately cash $XX in the excluding quarter amortization operating came

year Our income the branch XX% approximately increase operated quarter, third for also excluding the versus this a in core or and from core noninterest we the million efficiency sale XX% full was $X.X ratio the approximately Noninterest quarter XX%. for quarter third fourth at was gain XXXX, income quarter.

to As business fourth back our we have to customer levels. quarter in quarter our the back third loan predicted, from and revenue compared picked program swap up SBA

to credit quality. Moving on

reduction Our provision saw of loan analyzed million individually did individually we comfortable results driving analyze balance in also that for quarter, into while loans $XXX,XXX, have categories in fourth we doubtful and sheet. release approximately quarter for substandard say, better results from our Needless on in various we growth $XXX a a to ratings, our the was reserves risk are to leverage on moved portfolios. the

Our existing legacy is losses pre-pandemic allowance above of of credit XX basis the for the institutions. still levels combined historical points

the loan stable of growth. levels supporting million quarter, During fourth capital remained $XXX our despite relatively

is guided previously, growth first we've to and As use base. our and of supporting loan the clients our best capital

ratio impact of impact We will including continue excluding the sheet of zone. of the efficiently our our our X.XX%, tangible AOCI within and and balance full equity to AOCI manage X.XX% comfort is

some provide XXXX. I'll guidance Next, for

growth annualized clearly mid-single digits loan demonstrated loan in the We've growth for with the sequential XXXX. half strong XXXX every quarter in first We of originations expect to an be on basis.

Our relationships, on relatively business solid focus while keeping flat. multi-family portfolio growing is our

additional environment Given subsequent for update will earnings you hikes, how we growth year half uncertainty on to and the Federal on customers our of around react goals will rate the second the economic Reserve calls.

quantitative yield the intense we know, don't significantly you As competition a operating inverted guidance. side. NIM deposit with on in provide We're curve quarterly

fairly points some XXX within we cumulative of been if to to deposit Even rate levels, would these which based date to deposit increases at the a have XX%, was accredible cycle system. rate shock around on betas basis future for basis been points mentioned, stopped guidance have As rate has of previous XXX deposit our with hikes. XXX our Kevin XX.X%, for basis cost point beta lag,

the behavior However, as on given XXX basis on has the to last rates, the cumulative points XXX versus is a basis the customer more higher betas basis XXX first now going fact to we're Reserve that XXX the to basis area Federal points points. expecting heightened points X% impact had

be there'll environment XXXX. of cost general, catch funds a Given competitive up of the lingering increases the the in course over deposit Fed of impact in level

up area for estimate of and deposit half that cumulative best XX% is towards this back the right peak the costs costs deposit betas Our now end total in year.

to XX% the deposit ended prior above target up in quarter year XXX%%. the to range of at ratio and our loan XX% slightly from XXX% The

teams to keenly to deposits. and competitively price lending deposit well-priced in and will growth the We're our exercise Going management forward, gathering bankers, we seasoned opportunities. relationship discipline on approximate consumer deposit priced pace treasury growth focused

Our to prepayments we goal a ratio time. the the to is loan to loan and rates XXX%. to ratio normalizing of do course over decline in pick deposit deposit natural years, multifamily expect below portfolio in XXXX future to the with beyond, operate which a over of up, will lead Should XXXX

core previously, base our $XX amortization million fourth As expense $XXX annualized. cash quarter the or mentioned operating intangible for million excluding was

million. in control. to our to closer for additional FDIC approximately Obviously, which and can expense million million. we beat these would poor bank. to the cash things expenses of expect to we we surcharge $XXX markets this We it plans controlling operating of to related on is be our opportunities guidance the of is have industry outside year XXXX, remain expenses are $X for XXXX. of items, XXXX guidance $X that performance the may, items our pension in million in expense Included of across will the also related both $XXX been as we to Be equity wide for core $XXX these the focused to between $XXX expenses additional million million for Absent this everything continue and part reductions guide do the evaluate the and and

on amendment million. of the the $XX This impact take expect the year non-interest be income within million range into to $XX We account interchange. of guidance full Durbin to

capital company efficiently very at current our ratios expect capital manage to and We the comfortable levels. operating our are

any very given value reason in XXXX are on see market in repurchase and shy will via We our and should enter the our not the XXXX repurchases, active be stock. capital we build for the share we to front levels

rate XXXX, with it be respect tax for to to the XX%. we Finally, approximately expect

questions. for we that, With to call the turn can Adam back

Piper Thank you. [Operator Instructions] And today Mark, from our from comes Sandler. question please Fitzgibbon first go ahead. Mark

line Your is open.

morning good Hey, guys.

catch income -- I didn't that? all through Avi, just First, I -- wondered could could just you your go guidance again? fee

have is going Mark impact million is have for Sure. starting this the with a this for fourth we're of build. fee year. income. higher to the $XX so we to you second the is certain little that an a $XX did X in guide July year Yes, the Seasonally, And we full of year on This remember, if recognize half quarter. first impact QX million that fees

So we million business We're the SBA and $XX our have really to kicking guidance the that for $XX is really next the side good treasury year income point. really on cylinders all is expecting program loan this on management swap on and in at million.

interchange So full there. the that's decline going offset income to for the year

really million for $XX $XX to million year. So next

done that you us has that to could heard think Avi, perhaps rates I margin, comments And some of out? metric? the level kind Does Okay. when when at you help but raising Fed margin other your high on the or the relative think a bottoms

would in think is do think year terms the the was, course front on the loan stuff book the out costs going low quarter. of and and stabilized the is, and What increase What is coming I so. amortizing probably this continue at our in X.XX% the you we remarks we our Xs are half to I in around Yes, of when year. of said look this that's front by back point deposit to Mark prepared for prior book book over the originations, back

the going of to repricing quarter forward, quarter power or So see does then going and it's to you're a -- hiking, benefit But Fed going going the over two. deposit impact to stop costs one us stop obviously. for the that's

company So I'd to And medium the term. NIM of this have NIM. the we're should year, XXX in the say, half towards focused in this a stabilizing longer to XXX we on back the highly believe obviously, area

happy this still with Again, we're at our And customer point we're growing time. at in XX%, it kept DDA base that.

bit really first bit year. little the and So function a yes, I laggard think just of deposit this half of up little a a costs catching in

Okay. And rates are what today? would deposit you spot say the

X% the Yes, at over the end we were a of bit little year.

just will? challenges balance of of there Okay, it the aren't funding even would wildly great. loan sheet margin, just and sense and you kind of thinking the growth the if fact in And it, guys slowed kind I about more out guess that protect then overcapitalized, slow given strategically kind the down make growth to you

Mark, Hi, -- think I it's Stu Lubow.

talking have been we're this year. months about that. than higher I XX digit think The growth significantly mid-single last

in We the that are see was doing big don't swap to that growth the and for existing just at a seeing deals But part our the year. customers that portfolio pipeline. year really moderation in portfolio a in expect early this our portfolio. all And part portfolio. of on real We multifamily we’re our any growth servicing of

in owner remixing natural So a result is just a on occupied C&I and moderation our terms the to growth. going of of portfolio and focus in CRE

yield of are that at a million that is today those an multifamily. high at in average of we $XXX And fives. pipeline rate, only about $X.X $XXX about even rates million, mean, billion have the I but

we're So pricing market in terms in of the in really that not portfolio.

going do some believe And growth the owner we're deposit nice so, really and have with focused CRE we're C&I on business the that. we balances, occupied to

our of important occupied C&I DDA so the that good the solid very important. and owner is and are within product sectors And on relationship, growing balances we business funding think mix

that part year. we significant the to had So of over we we that to suffice this continue to want to grow expect see don't say, growth But business. this

just at not level of significant the multi-family payoffs had again which now So XX just in back could from off of elevated, I loan-to-deposit a to the We're to ratio in pay seeing are if to over portfolio, go now, see rate payoffs that it comments you portfolio, see months we the going significant with stabilization was right upfront XX right? the obviously, fast follow want made rates because, XXXX. is if could forward curve, year, a one portfolio help Yes, but in we Mark, that time. you we you reiterate

you. Thank

this from the value is Well, the we're building to of -- of standpoint relationships. do to continue going franchise

So to take to that. we're continue do opportunity to this going

Thank you.

Please from question line Moss from is next is Raymond open. The Steve go your Steve, ahead. James.

morning. here. with Good starting maybe starting just [indiscernible] just Maybe -- with

in of there You was and quarter-over-quarter. mentioned assets that an terms criticized improvement classified

could Just maybe the quantify and the you forward? that reserve wondering if think help just ratio about here -- going us reserve

Yes.

various So we had this loans quarter or aside what was, reserve happen point. various with accounting that at as results of the part merger the set

we've of some were in And improvement And that. a time, them steady criticized/classified upfront. the in category over seen

particular So part this quarter. the that release drove a of

disclosures in we of loans those was, associated release go of of on that million side saw preliminary them down I nonaccrual that actually those. a did, and a look come The moved indicate start substandard you quarter this year. now status that with we our lot getting $X other of we the our deferrals that's of in the our were one pandemic continued typically a probably C&I numbers of and right biggest mean, lot XX-Ks to provide when I conservative XX-K, but was in there's and the loans a mean, will back very accruing over thing since with our loans, at we that. which reserve we old better. we're in XX-Qs, which of where lot improvement on had the time, portfolios up course month significantly moved What the and

had specific group the it on couple peer But quarter, out that reserves group specific them. side. that a associated was criticized So with median, really to back really of cost this the below not median came if peer loans

is free a on We and general XXX XX or plus points reserve, of And free just minus real on one around and think loan C&I probably it's going owner the reserve estate on basis. rule growth. new investor side, on just occupied loans. thumb the forward on of I between basis have

So basis terms blended points. it's similar is on of right basis, to XX pretty a is now, XX result overall our points in probably basis result, the around which which

we any on improvement mix. is analyze be or individually should about XX growth absent around conditions in given So the economic you in absent worsening future, loan think way provisioning and our that, should portfolios. it The of that our changes the any points basis have

maybe just then, here. Okay, me, great. That's funding on helpful. And following up excuse

Just curious, is here. high obviously, marginal funding cost pretty

moved you consider Just what if the restructuring sheet portfolio, lower would balance longer your point wondering, all? curve the maybe at at has with securities

mean, Yes. capital I uses times. at look of all I think we at all

four years million securities think but basis I to very portfolio, up Steve, mean us, portfolio reprice is around right we're It's short securities over time. is rates I When all XX on the point to is portfolio the on are. securities comfortable whole we whole where a our pick the portfolio. in that's growth we Supporting there. $XXX and it $XXX is portfolio It's three ahead, right now million. million $XXX that now market look to with that, the we look million, rate a for market at at to yield for important once our customer math probably duration that the if $XXX you fairly reprice. NIM

this about our capital something we about we it’s good at in buyback think pretty and conjunction with point. conjunction feel loan growth. levels with the And So

do have things. this to do various we So flexibility

Okay, great. much. very you Thank

ahead. Matthew, The next go please Breese Matthew Stephens Inc. question from comes from

is open. line Your

morning. Avi, on to wanted portfolio. just the I stay point on securities Good that

to quarterly sense duration. than what funding. the into implies help kind mentioned duration me of role model, have give just You modeled. a The least little the I'm sharper securities? I some runoff it's from a bit you securities of expecting Could loans for at my in And

Yes.

got of flows obviously our years treasuries PPP $XXX XXXX, put coming those a Matt. to maturities, we couple around million So really $XXX when into three bullet stuff cash of are in, back, in out. But two treasuries. we million, sold that And loans we years

around XXXX, XXXX probably So there. million we some big got and maturities in $XXX over

the of is of the short on we the fact just it side have. because treasuries So pretty AFS

coming in because going mature all So to the years to but treasuries, differently, it flows they're answer cash out. they're two aren't

a a not risk tangible into extension which there's QX to obviously, of there we held-to-maturity left last some year have that moved So portfolio. book. in bucket, And help that securities and protect lot terms into late we on particular

balanced. us So ability gives consider -- over XX% time. various portfolio and to well held XX% to AFS, which maturity, the is the things fairly

the Okay. then demand had XX% And of XX% you in deposits you to at expect you're kind today. mentioned that settle range, out

some So implied there. obviously, there's pressure

we matching loan with deposit… think growth As about

would We average that total cycle beta XX%. the Matt, mean was I deposit our we quarter. be the our DDA said say XX% didn't for that. fourth over

expect to really really that don't go down to it's saying we not going or we're So XX%.

what So said. that's not we

where guess you deposits you sorry, I'm Could beta? some that deposit best demand expect your out? I you. misquoted XX% me give to with What's idea settle

Yes. end QX little of QX, in I of a the strong in. time municipal of receiver At mean, in think are in, come municipal a some We've to accounts This us. deposits come little is deposits municipal checking around a is I January which money. bit for of related seasonal the seen delay tax the in. we a come terms have typically,

So And that. to to and the year on bank, the be lending we've be look, deposits various small customers. at at on opportunities management treasury this highly going teams gathering ratio. customers, pressure going that going teams, some got as same big have focused on are said, our time, focused we're to are But particular Kevin

the important. that everybody years think sheet was some like last and to of we had I So work the put the excess growing else couple in industry, deposits and balance

down, go to customer yes, granular we it's we mean, predict is pretty little going I have it's to hard down really a going and base go where feel maybe but everything do bit. But a to It's relationship-based.

the well this peer group going of in us forward. help stay should ratio that So terms above

CDs, terms accounts? And money high of you competitive in of percentage then are right most now, higher market, it rate savings where Is offers?

we which It's there out that new is So at That's rate. XX money, a X.X% out month new highest rate a customers and a the for that we point. CD there. have CD got product

we're really So the on consumer side, competitive.

it's the profitability. business looking and side, relationship-by-relationship at On customer-by-customer, really

-- Okay. across kind And rather whether sense just of step any shift the us of But [indiscernible] solid. look, any then all to criticized/classified are your interest the cap for are and feels underneath any know there -- not back, I your I wanted as or your you to non-accruals, kind get of a all of It credit for then portfolios? go this rates materializing deterioration. material hood really in credit through hike level cracks mix without rate

Matt, and for I think do portfolio, think and At are guess, hear this LTV mean, this talked saying three of of we're XX% coverage and not But seeing I CRE last LTV conversation, with to debt it. what you're CRE, as about we the an a point, multifamily in -- laser-focused over service about there's be XX%. the coverage side service watchful I we've our X.XX. I very we a being of X.XX. average to Investor had it. is we're low we total also quarters crack -- credit, of that The the average the portfolio positive having debt on going is

a customers have stress would any not I about gone while of parts up, all I those And -- stress different certainly, product today. seeing concerned of would as a part material on credit customers rates significant So we're think book. from are right? level struggle say to those some business, only really the floating we're getting we're of that's the the I portfolio. customers area say will be in small line. the any concerned rates SBA probably are standpoint, of they and always But that some our the with will

put is, able were I to our one is, analyze I'd And significant Speakers] versus when credits. that's together, we area think individual said look we described reserves of companies peer that you point a difference always it we've out there's really at to portion [Multiple group the One loans. individually as Matt. know, the with the

individual $XX-odd we million, there's for that's So that probably within the have, $XX credit. million

as on the got the credits with do what So we're we've and weaker merger associated them, we reserves able accounting. of that are know side, to and significant part

in think reserves them those. to start who putting I is, I if people the as goes with we've to reserve, So something going pooled to to difference the -- have they're bad, opposed up then have everything think

this try already was what saw have and saw we think quarter, an right? improve, that had that's though or to [indiscernible]. I that's issue, growth. around some close be and conservative to reserve loan close provision everything stuff the why identify may zero, we -- even And You the could it you significant was

is this modeling. something the when about So else to you think do just

identified off And part have the year charged as virtually we this that everything the we mark. a was previously of and merger took

the did early to be diligence on So due prove we correct.

to seen credits And -- come a so any as we significant credits really haven't new us new problem.

all taking That’s Understood. Great. I have. Thanks for my questions.

go ahead. from D.A. line your Please is [Operator Instructions] Manuel Davidson. The next question open. Navas Manuel, from comes

good that stay or you like to deposit of any XXX% what's could of of kind kind of color thinking something the approach on there? ratio, be below your that might happen that? Would quarter quickly outlook morning. With Hey, loan next just kind how

No.

again, that pipeline, strong is, the this half at first deposits, any lot on think quarter. in a like really we're could example, I deposits stay at escrow deposit And for loan as of time, So right? seasonality end about to for that in then the like say with so the of right? business of whole So trying we've over point, point sight is portfolio the I Stu course of a got in go mean, XXXX year. the some the quarter, said the end but the loan a here period number, I think built people line to mean, what of we we've have at out

year to the Loan I stronger add for year. we're market repriced guardrails growth some we the think, the we're this around back So of But in first of going the the in -- just half is deposits. which again, probably than think half to be said I second want we competitive operate. consumer too, Kevin focused and

want to just quarter for stay this it's a month year. So we per under but not that threshold per thing,

remix business capabilities the think going And to really areas we've to in of to I multi-family continue portfolio the also Yes. market where terms important the out that we're understand the into of middle it's CRE. and occupied owner grown C&I,

of getting So the total, points with years. a you basis next could Obviously, non-multifamily and percentage improve expect because NIM of course, several over reduced And to our see the is, of the XXX on multifamily significantly basis points the the business. what C&I that along relationship and to part we're does portfolio. expect yield better deposits should as XX come

appreciate I that.

next I to about be my think question and growth. that's going mix

going it's So what Did pipeline be at more you the definitely of C&I. give of C&I moment? the proportion to

Yes.

$X.X So C&I owner-occupied that is approximately of CRE. and XX% billion,

-- like I success appreciate in give you that that on don't can anything like help I stabilize kind color. kind of of the marketplace of Is and but to directionality there give near-term to offers expectations, funding? you NIM your know current

Yes, sure.

So $XX we at on of year, of deposits, offers deposits in we've the have -- already and that. terms some raised we've this of consumer out million there start

a to back deposit falling to loan can that's I the ratio market that we question, think you So mean, access.

between mix of banks It's lot a We and CDs of going have products. to it. seen do be competitive savings a

look Manuel, and to to we analysts the on to billion. is, it in look in billion disclosure the was was equity, that economic of value go And at at I XX-K, like our we think EVE time. you one year, the look our XX-Qs, our $X.X $X.X the start what back around billion and at prior always XX-Ks if the around disclosures, our of you $X.X at September pointing point you had

saying really flows models three That worth through present and quarter. are the over right? is they go own telling any our and that of model is up million NIM And $XXX quarterly number in because a years, assets that, to your cash once you over the so can to value the a million bank go down the which liabilities, NIM in show full five $XXX particular more, cycle, that's DCF what up of doesn't is

next the our looking EVE of you'll EVE out. XX-K, numbers, number in franchise directional analysis you And So I the at think those obviously, the in come some company. see next provide value

assume calculation? that in ranges bearing shift widely, you that Because do deposit your are balance that pretty What the could correct? noninterest for

noninterest but modeled But noninterest we like escrow absolutely, a based year. Kevin on see quarter we're average of pay attrition was I -- recent of mean, end No, over five Yes. have projection XX%. our So bearing for when fourth we the we what course we bearing of then the the said, right? deposits that at the that our it's seeing. out years, history deposits

XX% right is the were So of always XX% and the when into But we balance spot now. we’re kind misleading. went cycle we

really a job keeping done we've it there. So nice

on think I growing all are deposits said, Kevin year. our goals focused and And this like really deposits

see could cutting the that's again, rates some as XX% a do near betas level and betas, around the model of And we in said, see bearing So always with out interest people of I term, yes, a as IRR we in sure, DDA in starts move But there. deposits. of into well. there kind into time, think Fed what's you back obviously then certain of DDA you But that, over I level migration once could our modeling there.

helpful. you. is Okay. Thank really That color

next is please Chris The question from ahead. KBW. Chris, go from O'Connell

Your line is open.

Hey, some for as starting where how a maybe you progresses bit to is expense little there? was get the quarter mentioned to good the the point cadence the kind guide. just from especially the I first the hoping seasonality, and comp in of the line of then morning. of appreciate year given color I things with

our seasonality too much I up try see Yes. pretty end to the Chris, year. We of think the true much shouldn't and typically numbers. towards accrue we with

know goals of all say, would general, we banks have bit we met set of seasonality at year. in significant of the I a a kind I some that little us. that out less amount the probably start for the So

So we should be okay that. on

I little try but us. focus the again, think right, we there QX for mean full sometimes more, a movements you be more year not and I down. to much are because, number up on could bit too

our not abnormal like there's to million, some we a recurring and right? digital So FDIC that, XXXX and I I the for costs in the within are bit business. investments for then $XXX are XXXX, think got of of making million part $XXX our also hopefully said, that. year. an platforms we're running just addition we items got of employee pension, which some the And cost the that in is little that There's to

So to in $XXX out last better come hope for million years. full nothing the much but than ordinary two did to too the or year, us, the for of that we for line $XXX million like we

Got it.

starting run in tension rate quarter? that comes million at the in so $X.X the first to quarterly And

rate, of then pension you the Yes. true-up the a start year, the works is, year. in an whole at the accrue I estimate do a end you get of run certain way and mean you at year the the the for

kind So be line, exactly. straight that would correct of

the outlook first given year the guys do feel about the term of ratio year. the part you And for Great. the sub-XX% margin Okay. efficiency How in just the on near updated target?

quarter. of can think right? on at assets, being that. can, expense on than Yes. goal focused when control a mean, the this focus look, things is company to being were better I I highly or the And we So we past we that and you we're X.XX% there

about I back be goal we put to you two you sub-XX%. think to think efficiency go was together and ratio, companies when when at our the the

I beaten think be I the first I we've quarter. from every we'd mean, think single apart that -- quarter,

This past quarters was we Some at operated XX%, quarter XX%. right?

which the ratio may quarter, be look, bank, longer think it to efficiency the course definitely definitely over every demonstrated up or But of medium So we XX I last sub-XX% a the to down. go term, in want months. we've

getting seeing from just you higher for of guys the as are loan you especially pipeline far the Where any originations? year. opportunity new still, as growth, for you half seem And first to rates outlook a kickback growth? on customers the your on the And Great. the guys have are biggest robust

really us I and the and able growth of is occupied (ph). weighted [XXX] the -- the is average today, is mean, businesses. C&I. opportunity because owner portfolio, relationship significant for in the real as C&I The saw I are those CRE, part said, been what focused And really we're the you we've on, pipeline rate on that

underwriters. -- we're So the on teams fact new still these rates, to conservative is, with our we're and at business bring able

about the maintaining rack [indiscernible] coverage interest which these Investor rates, ratios at even the our is on on service We're are basically CRE. rates CRE So today. and our Investor debt CRE

are. where new able So with new business and again, relationships we're even very within to environment. We're we comfortable develop this rate higher

is I provides we are local taking relationships us think in the a larger are the bank the banks and community from that the that we're And commercial customers key. the personal business attention And to services commercial fact and these do can bank larger an the opportunity all it and desire. a provide has. building that with we service the products competitively that

-- And quarter So, originations that's just we we've I mean to opportunity. total to our able million that. mean, the fourth growth, $XXX in net we million had high $XXX yield. in at Xs been of I alone, accomplish in the date, we terms while in had

to even fact the is, grow improve and So been rate really higher during we've times. our yields able the business these

it. Thanks taking questions. my the color. Appreciate for Got

Thanks, Chris.

go James. Steve, We have Raymond a of please ahead. follow-up from Steve Moss

open. is line Your

Yes.

just going me. back two follow-ups here. Maybe Just costs for funding to

what up portfolio maturity on rate going about pricing think grow of Just and how here is can kind we that of curious the kind up forward? CD the schedule

around provide have. press of there's the portfolio. May, we $XXX CDs, CD we on we rate say around some is Maybe mean, I'd used the I Yes. we'll X%. million the month biggest that where that $XXX But disclosure on in in the our release around that back. to of have million put piece

that is that I'd rate of $XXX this to million is and $XXX million. So around $XXX the on year, million say

So of at in portfolio, you're to to it, higher fund the item the go based on CD of rates. is XX% going and see rate. have And XX% market a the our rates generally out current on rack XX% retention around with then remaining that we to

you're in the the everything up with rates, short stuff in trying there. rolls month that near are increase pricing this XX, some we're so what cost keep script drop deposit and Fed off. the maturities to we've to going stuck because we're But XX over does as done, not So term, see mentioned CDs fairly when I've was,

is portfolio. short So CD on generally everything fairly the

helpful. That's just maybe Okay. then M&A And here. on

in have of guys updated a level and you Just thoughts transaction? kind any may of appetite of terms your curious, discussions for

been about for we've the quarters. this I talking last several think

focused of advantage in shown that. our marketplace, on it us. environment are to to has challenging two grow But our as pipeline putting grow to Stu certainly together, companies continuing for This And this is organically. us here. there's franchise these and available. position a of think opportunity have you the is We But on do something really, continue that organic to a in the the us in demonstrated front about plenty focus for was we if opportunities taking that of position we're

much, Thank Great. very you Kevin.

to As Instructions] the hand we for further concluding [Operator have I'll any team remarks. no management questions, back

strong lot thank the whole organizations ours, the listen, near-term challenges the value The what Yes. we've done, of conservative there's that I adjust and basis a in of what I we're Bridge, on superior from and for want behalf worked just -- relationships, And want the Legacy that as team of Dime proud what that believe succeed. model the sheet the for model will It's know efforts we we I credit Dime done. of a the to team accomplished for to think Board, like focus. to they've the I questions customer, It have XXXX. margin, entire On business rate current a but still balance seeking ultimately brought philosophy. with funding managed we've the we environment, worked about

today any give please thank look have So want for interest us follow-up, again, you forward and questions everybody and to, call. if a I to their

very much This concludes attendance. today's your for you call. Thank

your lines. disconnect You now may