Flagstar Financial (FLG) 27 Jul 232023 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the NYCB Second Quarter 2023 Earnings Conference Call. At this time, all lines are in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Thursday, July 27, 2023.

I would now like to turn the conference over to Sal DiMartino. ahead. go Please

and joining operator, Bancorp everyone, thank and today's Thank management good team for the call. Community of you conference you, morning, New for York

Lee will Company's Our President as Cangemi; of President Reggie President Officer, who Smith, the Howell, Chief second John be by Thomas led of joined Banking; Private Chief quarter Executive discussion Eric Officer, by the Banking; Mortgage. Commercial Davis, XXXX company's today is Pinto; and President with and results of and Financial along

to Before begins, comments Litigation may Securities meaning discussion New management the I'd today's the the Please you may harbor like uncertainties, subject Private forward-looking Community for affect that the and safe made forward-looking team Reform to and and in language statements Act information review certain include York the we press within the harbor release remind forward-looking of statements today more which us. XXXX. safe presentation rules. make risks disclaimer by of of may Such about are

out way, over I it like turn to Cangemi. Mr. to the that of would now With

Flagstar the you, operating during Good Early Thank benefits earnings per morning, thank large by and I our summarizing in would we Signature. part Bank everyone, of you results like the we the Sal. from to and record the briefly by recent second us net income, joining achieved begin for morning, quarter. reported today. this strong acquisitions share fueled two

I just earnings in our show and true beginning power continuing believe to a that only This but only core performance are our diversification we in from operating both from legacy our portfolio combined the of benefiting organization. underlying combinations, our our the franchises under combined to one is quarter is are of power deposit umbrella. Not with first three all we loan benefit financially composition.

we reported income for purchase share. per and a adjusted items, and $XXX perspective, per record earnings earnings gain an other million bargain net $X.XX merger-related From diluted share as

doubled net days reported from record stockholders the driven a only quarter. to quarter than first as the totaled we last what higher benefit income interest more full significantly margin. were transaction net million business Signature available during to a opposed quarter a results XX Our in common by of $XXX Operating

by benefit points Our basis environment. portfolio NIM X.XX% yields on basis, cash balance expanded stronger interest-earning a by from XX assets, interest on higher higher as linked-quarter to the rate sensitivity continues our and to loan sheet our asset driven specifically

year portfolio, interest remain net deposits the which Our diversified our the rate, are and of should mix. is loan margin mostly funded course given variable core elevated over liability increasing

CDs Our as believe core retail Loan funding increased Home pay while change borrowings support our multiple composition funding Federal of the decline. in XX% cash as Over of time, to balances billion expansion improve Also, to $X I we brokered advantage and use will both deposits our mix down this go-forward wholesale portion a higher advances. continues and Bank periods. be in an declined

capital. was In addition, positive our another

the to tangible capital per share XX% Our book higher, compared X% quarter prior trended value while ratios and increased year-over-year.

earnings strong capital tangible power. given generation remains our very Our

hiring to the Aside banking testament highly Signature in which businesses, reputation from and last former week our model and to is strong join regarded we that added Republic as expansion business the are the Bank. our teams fact a part new initial transaction announced These chose First Flagstar marketplace. they of quarterly strong of our we Bank the results, by the private teams the from six

to premier operate Coast, on service strategy a part a cities. delivering we of of With Northeast and have a to model. are these hires, broader single-point-of-contact we now banking in the teams to of XX the dedicated division XX June a as XXX XX, including These in total create best-in-class XX XXXX, personalized West teams and private

have We achieving six with and look are forward things great us to teams partnered that excited together. these

balance the in million total $XXX C&I compared lending were efforts were offset business. total mortgage primarily the growth to previous during loans in diversification our loans portfolio the loans leases. to growth of about quarter, reflecting commercial in X% and on June the Overall, total sheet. continued other in XX% up which Moving Total benefited and verticals. billion, modestly the the XXth, represented driven declines growth C&I book, quarter, loans or leases warehouse $XX.X by by At as up second our

basis top quartile compared points to this resulted acquisitions, NPAs of from increase Despite from of acquired our inclusion million discipline best As or our NPAs client quarter. the for uptick assets or largely and the both also asset uptick, low total XX quality, $XXX compared off the The totaled in in despite loans industry. an and last peers, ranked points $XXX – selection. NYCB, and million levels despite XX in in historical underwriting reflecting metric our to industry NPLs – basis remain strong legacy

Furthermore, the non-performing was to of of and loans total losses million increased allowance $XX XXX% million previous XX to and compared credit quarter, coverage loans. the of points $XXX basis

charge-offs another low or no of last quarter. quarter of loan recovery net was losses million to $X recorded compared a this zero as Importantly, we net

than increase linked-quarter billion deposits deposits to in annualized billion as Another XX% basis the bearing in Total increased our or the deposit was a on more other offset non-interest decline deposit base. $X.X we $X.X not non-interest-bearing cost including Signature. related the in transaction. from portfolios deposits did Signature Including and approximately CDs related acquire are to categories, the higher of custodial deposits deposits loan billion to $XX.X

total XX% now deposits Excluding to these compared deposits deposits, of quarter. last non-interest-bearing XX% represent

million in events, deposit runoff retail client legacy part This our addition in and service of distribution large base the in CDs the non-interest-bearing includes billion planned diversity network the to on through deposits $XXX a banking groups, higher accounts. derived due as and and off Deposits quarter-over-quarter primarily channels, a at ecosystem. growth commercial, due which and excluding increasingly mortgage remains in linked-quarter deposits. custodial is our $X.X demand cost to brokered deposits branch to a the declined digital offset by was resilient. Coming private This basis, March

the deposit to the have base, and grow we levels. addition stabilized stabilization expect In PCG to Signature also teams from Legacy these in

merger-related given admin to for of current guidance, in between as intangible expenses the is billion, between full-year income approximately mortgage economic on well and range gain-on-sale between to Net environment, XXX, Loan amortization MSR annualized as XXX NIM currently expenses interest million and $XX $X.X the tax we a $X rate return asset the expect XX%. As X% to million. million $XX $XX to and ranging excluding of XX% billion rate.

$XXX up $XXX OpEx XX% or were In million linked-quarter basis. on a terms total million, of expenses,

Second to quarter days of during only include the Signature a operating quarter expenses quarter. full expenses first compared XX

you and of our customers. to and nearly our like to teammates, commitment their XX,XXX in our clients would results without number I'd special now our say which to Finally, possible thank dedication not strong, all a be

With you today to answer any but you all be please that, best of do if to or time we'll you happy call within We'll may don't, remaining, get this to have. the feel questions us later week. to our very free

questions. the please for line open Operator,

question-and-answer go now Ladies comes gentlemen, you. Brody from UBS. we'll ahead. First Instructions] Please question Thank begin with session. with a [Operator Preston and

Good morning, Brody.

of custodial about I the was deposits. would little duration you non-interest-bearing a bit hoping those that talk

the will of at servicing you're – servicing – well guess in will long servicing from the that administration maybe around? loan related carved subs as and the loan stick of from out $XX it stick loans how income FDIC. You've of And kind seems separately them those those that, conjunction How FDIC for income with level? the loans long around administration the the like million to I the they're or subs the

Sure.

pass So Brody, it John over our Pinto. It’s I'll guidance. to in

those don't So why speak issue? specifically John, you just to

Yes.

the admin in income. quickly the guidance So because loan we'll with start it's

is this of Signature the loans cost that as not did servicing we take the So recovery the transaction. of part

book back fund loan. So words, significantly what banking paid if in loans look quarter. CRE we it's fund and those banking pretty at The off the have the the

servicing we've that's income in this a loan the admin number than QX. number, loan guiding So what and for we're number seen quarter income in why that larger

deposits pay to it's those expect that quarter. and down throughout the quarter pay the custodial really second we throughout We downs to the built that up we that loans those saw continue had

are we're FDIC and collecting remitting on receivership basis, the funds a we issues monthly the both So for that then are paying those in them. down, they're loans as that to intertwined back

or to in sale see probably numbers related Signature deposits see We'll loan custodial And as over to go fund, we fourth expect quarter. drop which the forward. disposition those So shrink. to lower as we we on depending of we those be FDIC the the be for to portfolio start the will time, early quarters, expect

that. for you Thank it. Got

Excluding billion, growth. you had deposit $X.X non-interest-bearing some the solid still

Signature. of that XXX I think you was called to related that

terms of in us And before deposits those kind progressing that maybe you give the so non-interest-bearing could bring an of is update acquisition? back the Tom, work Signature how left to

teams in like stable Well, the we but building remarks, that good the news are discussed team. the importantly, more the we're opening is

is really think what model. forward announced we we had indicated, When we slightly, going the on based it than PCG we throughout which up positive heading Signature as have on which were We business about of we're So comes to DDA, momentum anticipated private stable client a transaction. entire quarter and it was business more teams, the with the the where anticipate to pre-March, group. is very the we signal when

expected. than So clearly, better

and look within is that take the they at to as corporate markets other we opportunities the opportunity I finance model think have what's overall it the and this exciting middle combined groups. business opportunity a the about look at company that have

over teams are excited, March. teams seeing the off share here that to if commentary shredded with because more seeing only exciting back. So we about time, you liabilities we the want teams. attribute the things fear stable, some have to have But on are are back the and not we'll that's start the to they're be get we deposits balance there, we're And Eric the building what momentum that another and believe positive line. the sheet excited as in stabilize, Eric, of

starting the those Tom. back. to clients teams and really Thanks, Look, Yes. success attract have are

to. that that provide want can't can we simply just provide. of clients mega they at the They level Our the service don't to be institutions ran

So to entire to deposit service our money the really balance clients growth provide appreciate because us client market teams growth our are the We're strong we off control strong fund sheet want seeing because demand able be experience. and service. also seeing stellar

we're So clients the ability seeing obviously new to client banking teams. seeing and growth attract new back, seeing come we're we're

as very So it's going we to look powerful forward. be

And Republic. also pre-First that's

in focused built comes we over to dislocated what that's on marketplace, the deposit entrepreneurial the regarding PCG focus to that of bringing Signature have view service new the teams on gathering great, that it we As efforts. and when believe obviously there's opportunity the opportunities years our great

So we're excited about that.

Got do you have the it. to happen accounting quarter? accretion And number the purchase John, for

Yes.

expected, than as better one in came of it that reasons item was. and another was was margin our strong the as that So why

portfolio both was at million you portfolio If came that in, look we due it downs the in it purchase accounting billion range. last pay that by took, the $X in we where from about the a We our Signature different talked dropped really more categories call. that came couple It a had faster. loans than between that $XX a anticipated. we little and on significant we loan institutions, under in loan anticipated The Flagstar negotiations of movements which to about

when million for and downs. related was quarter, it of actual the $XX $XX the about So pay at in million you was unanticipated look to that accretion, Signature

Got it.

last one And for ahead. Okay. yes, the go –

Yes.

in would expect against is that down But those which marks we I had Sorry, to as depending that of kind forward, more you loans. $XX on million, know, course Brody, range. it and $XX pay be loans what going of million just

Tom, from heard office think gotten you Got address it. you the the in tied decent that have point NPLs, any of something. if at I CRE then increase one that the for that – and because the to thought I as I I done the just uptick inclusion reappraisals well? acquired had addressed amount CRE, say loans a noticed hoping office, in you've just was this me, said was of that did And you was I of you NPLs. the last or could you

Yes.

transaction. NPAs, potential embedded million so of uptick you would that on we there, as assume part to comes to exposure we We're the probably purchase covered specifically we So all had Signature accounting. when loans comfortable it that's $XX any an acquired that Signature in that the loss but that's in acquired, that's there we're of purchase

The other piece mostly is through from Flagstar. acquired loans

in The – total other million from $XX that's Flagstar. from loans the about acquired

So take overall, flat it you out acquisitions. was when the

it. Got

Okay. Thank everyone. you it. appreciate very much I

Please James. comes with Raymond Thank you. And question Steve next go Moss from ahead.

Steve. morning, Good

Good morning.

wanted to what teams of you I as of missed Tom? to just big is their kind here, about book just Sorry hired, book it how of ask team, of the there if can any and kind I business color but or curious business First give Republic you

excited invest in by me and build excited let off them it, start PCG model Please to super a saying continue to build we're to to we're that super model. and have

Signatures So touch clearly at on right? entrepreneurially on we a are model, growth perspective. high service, very investments, So clients their focusing they it's similar look the as on boots and a how business in organically making banking is very the making comfortable ground the

on a that So very I to the competitive. to we're in dislocation Eric, out the tell there It's part but want team focus I'm successful before convincing pass hopefully to that, the super there's of it marketplace. here them, is that excited Flagstar. to you just as going on to become continue stay be is new there these activity tuned of members to and we lot have a

So there. some Eric, give more to you if want color

of Yes. of dollars comes a in each billions AUM. the loans as wealth of and mean, assets I of one with teams these well as deposits book

without in caters the we just in So they best entrepreneurial them. best, New far York, have three that, that alluded an very needs, the And right? They're to have fit touch bankers, excited single as with California these feel all We Tom point like we're truly to client's cultural to. that thus of of for had that model three the contact. question

for home cultural fit. It's great great a is this So them.

but need is And which critical. to products per here, loans looking in their forward team. the we go-to-market, and to we're really success services deposits have billions that and future We

Okay. momentum Appreciate And Eric, deposit that that you color. mentioned strong. remains

you any you've around the Sounds give on? to after get feel a of like XX, coming June it's color trends what's Is there for into kind July. could just seen

the seeing tell total, Signature, Well, deal some off overall the I with stable. ventures. by the we sold to be we're assets saying, particular very of core in franchise attached for are I'll going that that bank of start to in the you market are will have still to in

So we what can of but through we're sale company. But will assuming deposits in acquired businesses stability. that strong community Maybe Signature on runoff has commentary to some that were transaction, done, we're see anticipated and community see was bank seeing transaction, follow. addition the I'm And the stable. the eventually outside the that anticipate we share to the the diversified Reggie franchise been bank, on not very a

seeing you Reggie, maybe the some add So can color to retail we're on what side.

Tom. Sure,

through we and cost come year, actually, starting relatively the average deposits is de actually the does to of stay modest the weighted we're in industry So of We're increase. that for challenge banking the stabilized said, as lost deposit some projecting the starting opportunity minimis flat But X% see growth. They through the to that year, balance those terms yes, our and balance we're back. of about definitely liquidity had faced. deposits see the Tom the through

So stability that portfolio. really we good of the about feel

it in to bankers with relationship And we're look then commercial strong clients. our have gather the that disenfranchised cannot we other some reflects seeing equally, organizations think actually environment. deposits strategically some land bring lending clients, side, to the at that the opportunities on from current our maybe are in who opportunity because I

side that as well. some actually on so relationships up And we're picking

So deposit very side. positive momentum on the

the I the that if total deposit culture, fund lending past Flagstar. build dependency side, we're culture, I commercial truly focus it together color. lending all culture really transition many strides gathering here wholesale new a – three to over said the the we make way the here dissipate with we're And our great the of in sure our to lines to that putting build, our teams clearly, Notable, is, of quarters, deposits, you understand well balance forward. think time. want with would the I've over percentage deposits, look deposit. companies wholesale And opportunity. That's on We sheet of like, That's and finance culture. But significant in going bank leading we've made meshing on on deposits, at few deposit culture addition years. the really from that relationship just businesses. culturally, is will

is we're So That's that culture. about but here. we're all that, the excited building

just the one And Great. me, expenses here. color Appreciate all there. for on last one

the expense As you kind in look where three post run shake to out banks, integrate as all you any if to where point of could think to XXXX? the in – curious have as some update integrations you rate

that I Is But loaded being mean, that bank, guidance with on. it $X $XXX First gave. billion of public that's the plus bringing we to the anticipate was billion a gave That billion. we anticipation $X.X we teams John? public right, was guidance, fully about Republic

So we conservatism some we reasonable think around that. have

growth nature of Given the story, be as location. marketplace of this you'll systems a the go integration we powerful start benefits us to very of is into that seeing to the going in And for XXXX, the putting opportunity lot we feel a with this together. capitalize

So see consolidations more through systems, do some and we're be add we'll to forward the that that. want looking you next significant will color? to year adjustment of John,

Yes.

our billion look that you billion, to when So $X.X that's XXXX $X guide. at

off Tom base that comfortable of going guide in our XXXX, expense As XXXX have that conversions we're is we with from non-interest to the to that coming not grow mentioned, dramatically XXXX.

said very but a the comfortable, some we're range. with where or in what it'll this time last in higher, where bit think upcoming we our see stabilize it little mentioned over might quarters we that's of will stabilize be we think call consistent So we we

a we build the that talk and can total bit teams. and basis. how the neutrality little anticipated how that a has to to business return Eric economics, can And ultimately viewed cost of structure we new Maybe about

growth on It's us normal will no coming the loan is you loans, growth, there's not that breakeven total bank. pretty right? a deposits. these team with in about which in a they back deposits we acquire There's for and come in be like to Ultimately, months no teams, see earn year a a nothing, that, getting XX When right? acquiring and

bit So their way of over But to years stop the to it continue of that revenue don't the is don't because And breakeven growing bank. grow, gate. happens align does they overall take point get of for right? longer multiple a with because those streams you and out what a we those a just the ramp up to have that them they of interests little

you three after when the ROE So percent and down up road look that'll continue to XX-plus time. over they're years, into well ratchet

As – finance. we expenses pay the That's down goal.

much. Thank very Great. you

Sure.

Thank you.

from comes Stanley. go question Manan with next Please Your Gosalia Morgan ahead.

Good morning.

you Hey, benefit that? think morning. – billion that quarter, benefit at X% the Signature deposits NIM Question rate to $X.X with as on of those we $X from the the should deposits quarter good this is the that of NIM custodial get just this just from Fed, on of billion those from

That's the When higher. at the is number We to yes, probably the about was Fed, at average at say Yes. the look billion. little that – money number at I'd number it's you did a XX. The but average June the and X%. especially April that closer was benefit. May, $X keep back

it. Got

saying, quarter you benefit? down, or come the next deposits coming get only I these think should as down still in so, the they should So fourth start over So some right? quarter, and really you're

margin lower in second slowed piece, a XXX in in large bit. think little the being payoffs why of deposits the the QX, the the have large So on portfolios the we guide that quarter. than the of custodial you The actual We right? and the No. the happened amount believe that's pay see

the QX right in and is drop that, to – in So our hit QX. the a way that quarter, October, just in the now. expected business them see collecting going be cash market we're we're to from we're less lot the third occur the that because banking flows portfolio expecting of to occurred to that potentially in announcement Plus sold fund a compared

to going very, that very go that July. out we're So billion $X in see quickly

margin our guide. in It’s

Correct.

endgame then just expecting And it. regulation, separately, right. All we're rules on today. Basel III Perfect. Got the

billion you you're you'd capital planning Now capital to level about you that think the assets. Can maintain? any a right in about you're of in how increase and that for over $XXX talk requirements how like

so it, obviously off At spend hopefully this come out, a power it type the have company. through tangible start we to today. in the long very I'll soon, day, you sometime be and is believe lot but it, by first time period, company have rules defer book will is of for building implementation This we'll of generating and when we So the of time this capital. the is there'll the – end I'll John, but company until earnings of time have the clarity, we a thinking obviously value creation the some

our that So to have capital, a $XXX be we rules when how we and feel out, at come the assess very we'll able position impacts confident adequate that billion.

Flagstar Just we've past bear a right, been the to going to decade, the right since rules. we be new bank, $XXX transaction, in to preparing bank, preparing before billion back be we've XXXX, over were the under mind, a actually – and CCAR

clearly, this on the share as So And impact to to and it'll have see but it, run is some John, impact, if to literature we're it. it when some we and assess prepared there the how well. color clearly see for want us, we'll you analysis actual going

Yes.

screen For the look plus when our you to our $XXX of AOCI securities. billion jumped capital we well CETX be us actually a of quartile including loss items peers the ratios And the peers. you in to out. on the proposed lot against that include at at top the when of range, where we're is you going really rules, opt to an We of in look expecting some lack comparative the

on to higher which capital, implementation right needs generating deal rules we'll lot come period Tom no nice is lot and of the be analyze an we'll doubt, it really see. and go really now, work there'll And we out So forward doubt proposed it. for do once a there's of are mentioned, basis – No from a will the with organic but as there.

right. That's

to Right. that expense a be And the side also include bank. to need would your or any larger forward regulatory bank guide large on you make investments a become to

That's right.

you. Thank Great.

You are welcome.

Thank next from Deutsche comes question Bernard with Bank. you. And von-Gizycki

Good morning, Bernard.

Hey guys. Good morning.

growth. loan on Just

was it in some underwriting, you reflected warehouse. have selection the growth you the modest, it of but noted did So mortgage efforts client diversification some and disciplined

So I where wondering, your was demand just with seeing the your growth back year? of you are verticals is for half outlook what and across the in loan to regards

market very least We've interesting. since a had the on It's on proactive obviously the Fed disrupted was multi-family raising at interest rates, side. CRE

about anticipate, So are that as portfolio, ready on customers it's with going are coupons go rising what in their lower relatively as SOFR into our XXXX. they to flat, for in XXXX perspective you think what's they significantly rates and get hopefully and a opting option

and we billion have right X%, and good a coupons, bills, opted decisions these year the to at structure. now year-ago, of it and to position, a in very customers, fixed they're about take a a up had X% are And we've $X.X ago a south paying is slightly in phenomenal. business lock rate didn't puts half that coming SOFR which making in not that option, wealthy So or that's they're the which

to tied to also side that for hasn't transaction live other could a that, synthetically swap on a call we also put rate but lot option rate it opted strategy to allows not a they it's next the to them years. fixed into of in, with, five lock to in of CRE, some time in the bank, right given the multifamily if new a this been the that fixed that side, is were lock activity. we'll XX they And structure it feel That's the

may we'll have what a same that'll as them, and go up of think portfolio Signature interrelated as turn for in the So XXXX, gearing the that's rates we lot time, customers. XXXX At opportunity. lower we're for

opportunities look the have. bank to relationship we that going at we're So those and

so cross into will we XXXX. think there as a we there growth have We XXXX be lot of good some relationships, and go

to when balance lines of reasonable philosophical look largest credit operating capital that how a growth component are In the which expected at is businesses, is think it's the we're on expected view, returns based more of the I sheet tighter asset given a business, hurdle other it our much story. And been respect of to comes more businesses. We're So as because of right hurdling rate allocating environment. we importantly, classes now. returns. It's trends the at

the we're much to rate given able offer marketplace. higher So a

all So tighter credit a market businesses. it's in our

strong builder we're in opportunity seeing So finance.

mentioned mortgage into MSR growth as Warehouse Warehouse. seeing we're expected, according right extremely maybe as But given the Many plan. book, positive want we you well to were that based to theory You doing trajectory, as seeing warehouse we're on talk Finance, of in this so MSR about business that we're our a in now, is Lee, the if because in little the Warehouse what be on And March. warehouse in well can't happened banks bit business as side, our and some the say trends and location. there. welcome I would opportunity. overflow

make allocate much a last our to well. businesses higher said is quarter, at I it looking thriving think we're we'll very do this that good and forward opportunity capital to year to I and a have we news The don't are spread. this loan

a Lee, bit So about want Warehouse, little mortgage little may business talk if you and bit to talk want to well. as about MSR the a you

Yes. Tom. Sure. Thanks,

Warehouse and the start see million up numbers quarter-over-quarter. me balances $XXX with you'll So were from let average

they're the And what Now Tom can seen XX% space, that we've at in exiting of lift got was part look about a natural from of take mentioned, dislocation when that. Warehouse volumes announced mortgage that. But number happening the industry. as up was quarter-over-quarter and players in we the you to that advantage of being and been we due there's

we're out And in We've seen quarter, to second some us. those to end of lender were as banks already are party that the know, exiting warehouse clients that the reach you business. already the the largest of towards the

exiting. as some dislocation can so other take of this And as more we half we move players a the share think of second of and result market the year, into we these

says, it thing as Warehouse on always quickly. it's Tom loans, the about or when Now, the MSR, looking Warehouse And return is whether at a we're equity. very we great make turns

seeing, to arena mortgage strong of so share strong of And as pull And can very continue second and a as we we the very looking servicing generating back We've we're into given we've confident market players the move also that the got show they're that's sort capital. lending seen spreading just capital we're we half year, returns preserve dislocation through feel growth the to position. well. as

lending an of continue advanced as half And MSR the think growth move we'll that and this servicing so we've to good view year well. as we point second through we from of seen see

majority the year advantage The as And some sale. feel the And take well. then a I and to there's what seen dislocation seen fallout that to locks as minor particularly second correspondent vast through the as of exiting our on exiting just originations Tom we XX%, of channels mentioned. mortgage mentioned, we'll of player calculate we market. in just that players that half continue market. channels, we’re been the the gain back We've We've in major And coming quarter-over-quarter that that dislocation space. we that's TPO of increase, adjusted generally, given the the increased move

warehouse now. feel very the years. So we're really good we of We've playing business and dislocation right in and hands business XX the well our this our in positioning. been been XX a lot into years about is We've performing mortgage

Yes.

in banking balance to thriving, that have assets the businesses our we they're reality the that better, higher focus moving is addition are balances deposit business, importantly, deposit we of compensating more I is other do but flows, mandate. think lines that these going in relationship. to and that, in very we encouraging these complete are we this a forward So good as want compensating We're but deposit-driven of sheets, seeing seeing towards which is want higher being balances, location institution. given that's And culture for the relationship

for I that's follow-up, have No. think I If Eric. great this appreciate, I is a one color. question

could be had there. on specialized wondering that EB-X focused growth curious, you. pipeline acquired? was Signature deposits. you could so, comment just Legacy on a Thank that team that any team So if I'm If banking

stable exited team in we growth to and that Yes. experience field. used team, did given an now do often five They anticipate more that We government moving while basis, will in approve actually area. it another that we that it EB-X do for the annual the approved that bit that a on have has didn't and is And years. it they maintaining matters. timely though to program EB-X book the see congressional

another institution an more we rejoin So are and expect is significant board and to the build. growth now there. in time we us pretty period a We're on in banker adding see some for deposits bringing to of space actually client, as a place from capabilities extended program the that

anything prior provide you or is And similar could is it that? there on to projections

longer, take a clients little a it's how think I of various to see anticipate a need time the past. But think over utilizing a lead in stacks. billions to more project than bit EB it's see to in time I too that little we'll going funds really we early right? their We bit the say, saw would in I think deposits.

for great. the taking questions. Okay, Thanks

Thank you.

Dave Compass Please comes ahead. Point. Rochester Your with go next question from

Dave. morning, Good

morning, Good quarter. Great guys. Hey.

Thank you, Dave.

capture incentive it Just curious seems going I that you in people's pipeline new how successful the attention? back wondering the teams. a at have on to place. even forward and was It structures now got capturing to would might here team the have more from teams that guys as you even after going if think you given I conversation have other well point the those First of teams? this as looks Republic teams bring Was great opportunity guys interest. even would the more like banks

assets to to to be Eric need over, part build And it going these and mentioned focus that big deposits more bringing of in And Do management on support here great you of or are and out very wealth teams general? on business. the functionality billions a about with forward? bringing to business loans, First going the hearing AUM, just what develop any in just back of also that Republic going wealth a which was assets or then terms what was wealth those is teams growing exciting business you the then but guys mentioned

that things I'm to because sweet this you to and stay are I'm very Eric, short tuned, going going But but to just question? Eric, handle in one. defer be fluid. why don't

talk Tom. landscape, arrogant good against. right? to opportunity more right? mega there. they're banks, When the but And compete we Sure. have and real, banking practices you not So Yes, which bankers approach balance team-based have regional the Dave. don't frankly mean the Thanks, a model to to specifically that a go-to-market Dave. with, to the you, at I is at who attractive than to compensation out sheet look And have Thanks, are an we banks quite only we the ever, built institution to utilize, Bankers these are ammunition and great. is

think it sending a buzz industry. I the around is So

actively that broadly the side but did clients are vast their but on our of needs of teams to that the of onboarding. certainly other add meet say, can some engaged the now. have to improve, always they're capabilities. on of we board are adding we'll be meet to clients bring to that a the announcing, wealth and right Dave, the their be teams people have we We We with the will already wealth look to capabilities needs We looking that I'd we we majority needs and number the

banking the So of we teams. that to the we those work and side have feel business good it's with about management wealth just capabilities now the attracting

rest curious roughly the for looks I it that opportunity or was just wholesale funding? another Maybe just of in off, borrowings good. like $X billion try this to offload sounds next on the and That one the what margin this like you've smaller Great. sounded back of you year a got rolling as year. so half

Yes.

XXX billion $X.X coming. what at we year next have So a is

to portfolio some current we bank low will $X.X assuming right put, we $X.X of has the XXX. given out for that they yes, are compared But So gotten of the their year where which this size really, and year now. billion get especially really past are assuming that portables we've billion in the been cost next and

focused. transaction, strategy. be our just the wholesale specific, when This So be is down the Dave, plan we deposit in was pay obviously announced and Signature our more to to

indicative So higher ratio transaction. obviously money demand already the has with it the we think paid the cost model. forward, of of of this to lying But and lot we bank we deposit a I as off going obviously, the as the holistically after stuff low a John a with be to a and from said, we've loans indicated, lot time and have banking, having deposit we time and relationship commercial deposits, is again, here leave opportunities, focused as think want together. culture replaced go fruit put liquidity much we But more organization

don't but One could side. to talk very about, going areas of of that that's years a the favorable. the very something to comes a have banking when think opportunity come, team really people I that's we lot it we the the that be Signature corporate on And in be service diversified to whole going transaction to

leading corporate of deposit loan a larger companies we specifically tremendous some sheet. relationships, are very lot at don't we corporate these the deals activity but for have look as leading for we're we'll strong and balance call middle-market side these clients, clients we not the have As of, of these

well, there corporate finance as being syndicating banker. we be structuring active deals, So a can deals and

to lot together, these levels opportunity excitement a the high and put future. of So companies to the looking forward

guys. great, sounds Well, Appreciate right. it. All

Dave. Thank you,

Please comes go ahead. question Breese. next Your from Matt

morning, Good Matt.

really to you either a the or custodial balance? John, that deposits, year? be near end it zero down of by expect Good draw the the to to morning, do Is or everybody. clear, them of Tom year Hey, next kind when just

that in big to drop portfolio. pay third the in of the nature going downs on we the a the because We're of quarter see just saw early

billion, a third the to drop but quarters, there. over of even would then it's in couple to next drop be the further range be will $X and $X the there going billion guess that still number in from billion $X My dramatically. So quarter

portfolio. going the servicing the the loans. And It – new up it we if that if don't from to is would whoever zero retain when of and buyer ends sells FDIC

downs collection the So the it's P&I and and of owner. pay remittance just back the to any then

wanted I to And appreciate Great. that. follow-up expenses. on then I

think but flattish you XXXX, full-year, year then about expenses we where the million, this for because me just level $X.X for I and expenses. it that back a pretty it significant down we billion XXXX a and confirm to So wanted ramp ramp-up set a in in implies provide the to I number year-to-date? to half billion of as have are that see relative guide. $XXX $X.X we Can

Yes.

we just So rate, billion run six under now, you're are. just the you where we're a you under right. look second if at months, When right right, – given $X.X rate. billion quarter $X at We the run looked it's

guide, We a they're see some which in will we'll $XXX we're had in expenses, new have just above sure as billion. likely. included the rules $XXX that's to normal make Tom And billion most is mentioned later this today that the

conversions compare done, to some believe stay you So that'll we're in expenses the XXXX. in that. get can flat XXXX pretty close to then And XXXX see us we systems increased for be when going once to we what allows

right early over loans And XXXX you depending what that benefit into now quarters. that some a side time. a assets. mentioned is there's we're as the for the we of ended those will income, last in remember non-interest in when with ramp call, be of up those lot mentioned going on that on done showing drop over work the in on. get expenses efficiencies get see going I of the as up And I happens if able next we'll non-interest to as work loans as on, that being we're So on not time, to servicing know, that a couple expense FDIC There's up drops well. lot

Yes.

we're Tom, investing into So, is point, and Matt, also is that just this other PCG model. the one

on revenue opportunities through board some and good teams this run also with the commensurate into coming go projected breakeven. some we we So as rate, have that will

period teams As breakeven Eric from very to on one-year we’re targeting that time. rate we over returns the indicated, on. a hurdle have anticipating a And short we're of of bringing there, XX-plus%

rate. our So that's also in run

board, be would investing the bottom will Republic – very but model, guide revenue profitability the over and significant if didn't different, which line opportunity across we're First happen, the deposit clearly, in opportunity, to the transaction clearly the So, have time.

also embedded forecast. that's our So in

Understood.

around it? in expenses about we XXXX, $X.X at kind billion half to Is curve shape we rate of that the the if annualized right were bell about a way till same Maybe Okay. run to think billion range of think getting guide kind a decrease and should think or $X about the to back of to that expect then? and rise point

we We're that all I don't I numbers, mean, know things than QX, expecting to equal we QX the XXXX. get being in but shape, expenses of conversion would about when assume lower will those QX, that the see XXXX yes, be and right? bell would would QX I Flagstar be February

the more year get back kind we the will run half be of when of So a through perspective of that. rate

XXXX. and QX So I as will lower see dramatic, it's that's expenses think think you don't compared run QX right. I but QX in of think I do that rate to

it. Got

to you and would that the describe appreciate not call can down. basis and color on describe sensitivity, I point liquidity. Thanks this or the parallel you just Okay. front end a or would some for the asset one, the adjusted down rate just whether maybe sensitivity, XXX scenario Last liability, coming want color. shift NIM just at bank how respond interest it of point and and that position for

absolutely. No, Yes.

– highly amount we balance to were the the asset sensitive, sheet. if moderately first look you was as on very So to of given that back quarter, cash the

asset and that we we may the that hand of just slightly close the the we'll some neutral. growth now very get with cash back and of to some on the year, are believe of the half We to of loan utilization sensitivity sensitive, time see in and asset of passage the

to little less the asset trend slightly anymore outlier sensitive. now, an been, We a with we on right sensitive liability had not side. we're So the get as historically, think asset we're

side, Yes. a activity And the probably about are the for in and going rate It's lot instruments, virtually our look their to fixed activity some floating the just slow customers you're customers think past in rates multifamily the take CRE one that go market. lower a of no if going to on portfolio. of then structure point, from XXXX, naturally, lock really prepayment to to see year. rate had were been the We

a this will in the year. it very comes change there's anticipate a to naturally in if of activity, be clientele put will lot when a position interesting we versus rate the next rate company So interest managing organically active risk which –

and we're hedge interest some want activity to be which there, movement anticipating the So towards can We actually rates. sheet neutrality. agnostic balance in the plan That's here.

too a was think X%. we Signature We to of the of the couple Obviously, to to at liability relatively be the in environment. or positive in We interest get environment goal don't got probably We to want be stability neutral sensitive transaction. the asset current much rate want of much. too here because earlier quarters money as any sensitive we the here make attribute

is it's with very credit it. as now it reacting that's offering book higher So right I loan the spreads. a market, indicated, loan importantly, to our And and right? more we're spread industry-wise. favorably tight But And getting all is when comes

So there have finance. credit and customers is some tight to standards

comfortable and So this much we're in opportunity with clients, beauty on our we're the to but of in business market. that working be We're is a spread. the going higher it's

Thank color. the all all Appreciate had. you. That's I

Matt. Thanks,

question with comes your Peter from Thank you. next And Winter D.A. Davidson.

Good morning, Peter.

between then the rents apartments. stress stabilized the on it's portfolio was office you to wondering, rent update multifamily just higher Good you any are morning. just could just interest type a inflation just an secondly, the of increase pressures, And on I give seeing rates, on harder and portfolio?

So defer but I’ll resilient. to it's been and CFO, Pete, John, clearly, start I'll

environment of close into, customers. going On an multifamily They're we from eight. no a and been this it's wealthy to side, say, going X% where the activity. There's journey a the through lot have lowest coupon seven of let's

They're storm. some And environment. in time, choosing their maturity well we fixed Like feel they're indicated, doing probably bills. is loans I but of is quite change seen unusual coming decision a in time actual a in the holding option. environment lock they're until there they a SOFR their because to that So right they're which up that and/or for haven't XX% repricing, the they're and this it's rate structure, substantial on weathering paying

There's the their to result bank no flow storm. are question adjustments they getting performance that the as discussion for these portfolios weathering that, positive this tremendous customers asset we of a that interest stream, quality some a cash they're are wealthy have is rates, They're lower point. but large from and is and environment, which a benefiting income have and waiting

the fact close will We're its if have we going XX flows is late year next we're year starts active, SOFR stabilize then financing. their to X% thinking multifamily. X%, not being stance, very impact. can the We customers course, may seeing squeezed, going be I'm that and from X% to side, of are we an to day view a point about this the years seeing getting where think is the interest policy on delinquencies there be Fed But adjust of rates cash to five on talk that to about the the any where next We're not all any pays.

It's estate The resilient. is commercial well. doing extremely real portfolio

in the We that. deck. talked about have statistics We

deep where resilient and You're not we to with – been environment issues, the we're an we seems not it's get into to a very it's portfolio, portfolio. fluid, deal perfect one-up going as reappraise it's obviously, because, we but like it be some as going buildings,

the go So quality given very ramp tell through interest statistics. rates. with asset that, the of I I'm that going But pleased John, up have we're the to will with you

share side? you on to the if John, our So, some commercial statistics of want

pretty office balance. on question, added have $X.X reappraised or your under to Peter, continue especially over been we consistent has XXXX. our with exposure billion, and do from and quarter We to additional XX% some time. the really XXXX DSCRs Portfolio And going we're have office, to did Yes, a at slide. and prior average right? just do as We and appraised information LTVs average of in

of rated So, mention its there's XX% special substandard. or

portfolio has been strong. the So

items, quarter, a them working seen We but can as of We the have some be cleared imagine. delinquencies. think couple through are we in the will early third you bulk of

it’s for base. we us. bread very that collateral that and done the structure that been same type It's strong. still, different we've But with It's did historically lending for a with butter just and decades multifamily

could So not about we the of since due you And been COVID much and coming there's portfolio XXXX. rest very if actually in optimistic see, cautiously – have really the XXXX hit.

of So contractual this bulk the the really forward. in or portfolio and XXXX option starting dates hit

Very Thanks. then Got I helpful. follow-up it. ask just a And the warehouse. mortgage on

seasonally Are growth nice warehouse. get mortgage in to weak. had to the mortgage you fourth reason quarter, able warehouse deposits You ask And with it the tends I is be typically business?

And those so out? do flow deposits

I’m to Lee. defer ahead. Lee, go to going

Yes.

the deposits, can been clear we with the we deposits and bring bank. business lending So in all focus is, deposits, with Tom it's businesses yes, warehouse think a it's can I the as answer has very lending that deposits. of

the deposits answer the So is We bring from can in yes. warehouse customers.

ecosystem. point that I more think can out the bring mortgage I in we from other thing deposits is would the

and with we treasury work focus acquisition, Signature that TPOs. cash ecosystem. And you think TPOs, a the the team acquired of on we part management of all X,XXX mortgage As the

XXX the subservice of have you We to. warehouse lend we for think or customers, that owners we MSR

big a that opportunity deposits mortgage there So from we more to think ecosystem. bring is in

Thanks. it. Got

you. Thank

you. Thank

question comes Our McGratty. ahead. next go Christopher from Please

Good morning, Chris.

follow-up a sheet. just John, or the positioning morning. comment of the good a rate the balance Hey, assets prior to about

does about speak think the more better to environment? If growth in and money potentially in holistically XXXX? opportunity mortgage make company better just is if you the forward for loan downright more just curve the zoom Could out you and the right

depending Yes. asset curve slightly how lot sensitive, a moves. I there are the mean, of even being on

declines The perspective going if sensitivity to an income rates, business really talk the other other from about, the about an areas. warehouse lose the But perspective. really see think asset item we business, we to explode the protect mortgage significant some banking that and upside we from NII is in in that of

in in So, Tom mentioned to we pick up mean, mean, prepayment million we we right? and prepayment a were I a we much quarters institution, talked when we as on that prepayment So – I also year, the portfolio see start substantially. multifamily haven't had fee made fees. about and smaller $XXX and – what now, a you'll well, – fees

can to balance So with to depending balance going this rate rate interest that on try levers in as what – multiple the possible And really to agnostic that's for what help are in any to sheet the sheet continue any get environment. curve, strive happens in there to as we're rates.

if rate but of business, that's declines. course, we plan, absolutely don't up will for across do pick can't You that about goal. we And the the mortgage which board see everything, forget

year? the accretable I in a of I from Thanks but yield, through you And think what's John, in for left Signature, you the was for the quarters? you said half the back us and of level while have several from on could over could for What's came XX XXXX if what's second, that. I your next high. with the burn kind to XX just help Flagstar, guide right

Yes.

about on right? it, purchase that slowly is in could combine what accounting spikes And loans that's if basis. down, and quarter way the look on over the But way depending decline We the second you guide million the you of kind two, pay with think conservative. downs million So works, exception what in guide. pay a time some downs, it's for $XX of Pay given we're number. that'll our a was about see to just the combined at in you the easiest actual $XXX the

dependent portfolio $XX that And like pay we seems And on expecting paying is – be that of anticipated. to Signature the down or now what just from with originally the higher and and portfolio happens million and it's than is what downs. market rates it's But that I we're nature at. happens speed the it said, with so the interest

years? And the What's remaining the couple helpful. total over what's accretion? the next the come pool of balance that'll you of That's back

Well, million. Signature the over on piece side, loan the was $XXX originally,

at $X still billion get in both sure make have out have make marks that I'll I everyone. in So loan that get banks, but when to you total I'll to we number. we almost look sure

John. Thanks, right. All

you. Thank

Steven from JPMorgan. next Your comes with question Alexopoulos

morning, good Hey, Steven.

Steven, good morning.

Good morning.

So that and deposits rise going we steady any state about? Are thinking we there are out, sheet, custodial to you’ve are had so the less But borrowings transformation net where about deposits coming and you've in obviously that very that, interest been thought on some the the or on the big clear, over half, coming it's finally getting beyond be out year changes higher structural second a should cost the huge too. loans just to balance past income? more drive

Yes.

the I year, high maturing have the right. not we and you that next next could that's even that the of deposits mean, see think wholesale have a they're rates. – at I borrowings in quarters in we couple

of loan wholesale down that over So these we borrowings? course, we could. business usual it's time, much at as And deposits let's bring and Of growth. always in look funds use fund more could we to paying

that that look in think of down there's reposition. options I we and fact other quarter, right. the the behind to you would to some always deposits grow. second be problem the borrowings And you're us. And that, But high-cost have high-cost that did demand a funding, the could if pay great continue But to that's

is focusing would statistics one of Yes, model, teams reality of we at demand out The add inflows this has just the money. record on I type been to building the PCG for and the to XX% when Steven XX% point, look track Tom. at deposit

mix think we So of change a forecasting the more the XX%, every catalyst I our be we're funding deposit going forward. XX%, but dollar that's significant going as bringing in, is reality to like

the we're operating to capital want at confident on the feel have make we're risk, sure put balances we going the focusing going after At lines we accounts. compensating all and We same to accounts, relationship. our that really amongst businesses, time, we're of if payroll

And a on returns lines of be businesses. now have on to refreshing I our relationship-driven that's to focusing loan that having to That's diversified by change portfolios, all on So our hurtling allocate deposits for a that's it's think heading we're model, And culture loan and gathering. where can basis. that's we going how here. capital sea we're capability

down go expansion? do beyond quarter. you you typically think the feel I that. NIM, the is all But coming the NIM bias on the in don't know then we understand upside, should why third I And Yes. see the activity like once There's the least do deposits. right? But near-term, get to you some NIM these that, beyond over some custodial still unusual feel at we because you

in the get NIM reasonable high-Xs, expense said model I and we done the is average it right? a the when that, we think X% look type to at size what that return ago a that a couple quite you of So environment comes we've – year-end. to an quarter in and sheet put growing And the from, that you We balance forward, going think honestly, by have you we base NIM there really take earlier. the balance well got and on of when that quarters

to reasonable, holistic rate, So something here has got fact that talked sooner. target, loan the more low-Xs the higher think the of a if get that's we think that growth and about to funding spreads, as So X%-plus margin there a and the that the run businesses, a mid that's right? is bring we on lines we based business of type grow and our we mix table accelerated to but that bit the to little given I the model of view different we the business, it's

has the as is Fed do money It excited and well. for no a There's and tightening question in this publicly. a that. about about importantly, system, more stronger that'll definitely There's was lot to that paid we're credit expensive talking So margins getting for with company. really the And impact market the we're that the risk.

feel at like Community. final guys on New going the you York it then Eric. great the you're in through on. Now It's to And what's fully just Thanks. back been FDIC? experience Great. way this Does Do you team, right, for going for you on one culturally like And Signature a That's the the call. hear felt? what's us?

was the say today. we and to around got months what to me, to right? us. all immediately, no appreciate pleased organization. we They've immediately mean, am just There's Steve. lot doing My it, how our since and you I where I were of here, the John. cultural right, at back are doubt. and transformation here. to we're truly we're X.X overall completely We're we've back They doing be They can't embraced text across when second tell they immediately, arrived. us and ago And moment where a to I embraced culture the think I evening about Tom,

So really about fit, and my it the in is question the best no future. excited mind cultural we're

going in the earlier, that on to we've mean, here, management And I what's North And now seize to I the a right group, Board here on we for of that's they days haven't frankly probably and decade, purchased from tremendous entire mean, acquired opportunity got when we I acquired. seen quite team is opportunity when when were executive right, one from by opportunity the back said EAB this by right? We're Steve, the right? they moment, the Fork, now. an going were is equate teams a to I – by us. it tremendous recognized the

banks of these away we There will capture regulatory mid-market, on be and further mid-sized hurdles. and Many will, to that. will be M&A, even given go the need able to

forward So very very, future. really excited looking be to the here to much and

luck. to good. and guys Great best from hear of Sounds you

you. Thank

Steve. you, Thank

with go you. question, we Last Please ahead. Thank Jefferies. Casey have Haire

are on the have like billion. just cash real longer-term, It still morning. what has Good to morning, the been How opportunities at excess versus what today? position, position the does the that doing? low-hanging of that assets picked. Good optimize $XX guys. borrowing And strong XX% that cash just do more curious, paydown, Thanks. fruit – So is quick, you margin sounds with your cash? minimum But then you where

Yes.

are. and we QX. can we drive forward, have it took with the trade, of care wholesale can I do benefits in the borrowings, an liquidity wholesale mentioned, high-cost borrowing as with and right that utilization on cash we that we get that at sheet where now, of the cash together securities So The And very we're perspective. we look from unencumbered comfortable balance the

in that what high-cost always maximize to the focus do on with can But deposit We longer-term have brokered we do can in try the to and is CDs benefit margin. think we order the we to will benefit some real deal if the bearing growth I bring that at margin non-interest going demand will that – continue that's How deposits, the of drive future. we driver side. to in can margin in the successful be are And drive the story.

just just on perspective balance I sheet. our Yes. would a of add also

about $XX lowest the think assets country probably design. we're percentage of the you by banks right billion, securities If now in over

We in We have it. no portfolio. don't health believe and maturity

in billion there, we very very AFS, the We’re needs but putting with as have into bit over book be small a standard. with an of to exposure but right-sized have little $XXX comfortable go we an we it that time

ourselves will another industry. company revenues some that for as probably area right-size we the the generate to additional that's So

it. Got

Okay. you And that but teams of the just guys last the that one Signature what for missed me. this, I today? number if Apologies acquired, XXX is

That's what is. the number

stability. estimate. handful off. interesting any the release, are been our we started XXX. that deposits story since There had But I all, at a That's We full it's we had that encouraging the the stable. here hasn't exits about last been experience. public believe and that is at Again, what's ran an

said, team As is Eric the motivated.

strategies the the get want to the off-balance if – to moved try back some insurance are money and we still issue. here. A has But accounts of because on of of we've the to the accommodating of us. focused We're different the lot funding the that's sheet also higher into the to getting balances, they to right out talk on average even customers back about come system now had clients back some ever the but of to vehicles business, building

the close accounts. right? – that's the said, their institutions very finding Tom clients the mean, clients that mega business they didn't And the funds move very just like moved new they're I difficult out, to. it do to really They difficult, go-to-market, Yes. their at right, where

quarter, back we're their – back why up had institutions. – flow seeing come as they and that's to other So accounts the businesses right? just these operating that's so And starting this at can't that's run they DDA we

those right, on-balance up money And back serious then into juices our an funds really, keeping that for normally returns. start income sheet some of making right? we've some funds off-balance excess sheet bringing sheet have and So available market market sheet some on and funds for them, off-balance balance on on that, to clients, tie capital, they're we're we going those money fee doesn't array which that the

go-to-market. So we that them, They're that's that that. to also reacting recognizing entire the the continue favorably experience very are new them giving safety. for Clients can client to control while

hear there board frankly. a time team, successes the So starting we're across are come how Every how unhappy quite seeing elsewhere, their and I clients about to I talk they're back. to

onboard totality talent teams in our on think pre-March summer the in into the evaluate as have Republic order sign to First that's I said that to marketplace. And we we going anticipation as will in and more – previously, the and continue I is where short

So we competitively their looking the there on that dislocation bring is service new to a to and on books. are put personnel clients

Got it. Thanks, guys.

Thanks, Casey.

Thank turn I'll you. And team. the this there questions no at to now call time. are management the further

join for in Thank time morning the NYCB. and your interest to for this you, us again, taking

you that disconnect call and concludes We for this your conference you ask for gentlemen, please and thank participating Ladies today. lines. your