OCFC - Earnings call transcript Q3 2020 | OceanFirst Financial Corp.

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Operator

Good day, and welcome to the OceanFirst Financial Corp. Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded. to Officer. conference like Hewitt, to now Relations Investor would turn over the Jill I ahead. go Please

Jill Hewitt

Great. Thank President morning I'm Officer you. Good OceanFirst Jill joining all at Hewitt, us. for Senior Corp. Vice Financial and Relations and Investor thank you

our morning's remarks other risk We our to forward-looking statement many contain our expectations. public Refer forward-looking the statements press with disclosure. will call in our and remember filings, Please including factors begin that current release this today of where based factors these results statements. I XX-K, find morning to Chief Officer, differ over Thank now Chairman actual will could cause this Executive call Christopher you that And our the materially forward-looking will Maher. host and to Chris? from turn you. on

Christopher Maher

and to Officer, morning and been joined earnings good Officer, quarter XXXX by who've all, Joe Mike join Risk Fitzpatrick. Grace Officer, call Operating third Lebel; Jill, today. morning, able conference to Chief our Vallacchi; Thank This I'm Financial our you, Chief Chief

As loans able to plans interest always, quarter, strategy liquidation be This operating for with results financial pandemic operating pleased our manage morning, through certain our performance behind economy. in and next you. are business phase the and we of the the our cover discuss and to our performance address discuss appreciate we'll to the your the of the

to are questions. supplemental refer that please we during our may forward taking release earnings slides call. slides by on website. quarter, set that the our note this we second of in your discussion, those As did was accompanied the look to a After We available company's

million $XX.X and diluted amount driven losses included related a of financial a course charge-offs the build to $XX.X loan provision by was The results million related and our $XX.X conditions. a $X.XX. in the $XX.X generally the for Quarterly qualitative ordinary credit $XX.X of of provision reserve relating provision credit million; GAAP reflects build earnings share for per charge-offs $XXX,XXX. were best sale of was forbearance Net economic of loss during The forbearance for loans In quarter million. a to million quarter. this reserve loss by and pandemic to driven held other taken the third terms portfolio risk commercial review of to the changes represents rating weak related outsized risk The commercial rating estimate loans pandemic. quarter, just of risk the comprehensive factors

consolidation earnings the Our unrealized reflect risk that totals by resolution additional and and credit loss merger-related reliant $X.X impacted of net Reported expenses, the does is reserve to income management view will the be nor walking on our equity branch expenses also through stimulus, net allowance. tax. investments of time were upon pandemic. million fiscal the for not estimate overly Grace optimistic it an approach

As to a we loss results $X.XX the $XXX,XXX a result, pegged or be core for per the than quarter share. less

PPP note dividend plans loans PPP impacted XXth Company's into reflects total to capital at time. remain have fourth preferred the $X.XX the Board quarterly that or negatively There common was common cash share of $X.XX ratio of of Regarding approximately earnings XXXX. dividend. by quarter this equity excluding are our per our dividend and common and the share cash in The The decreased X.X%. assets which by this dividend consecutive share basis declared ratio quarterly to per points. eliminate view will dividend no levels stock. The that strong, tangible would common a equaled loans, reduce $X.XX Please with rebound the Capital management, TCE ratio depositary represents XX present X.X%.

PPP us a test loans sale at data us annual forecasted to return loans noted rate. common our portion of by PPP held sale a Since QX our process, position, working better has under XX. a improvement portfolio build. this as our net $X.X which profitability share our internally high-risk that will of position in reserve gain pandemic loan February combination at This allowed approximately address how completed is has in and of a quarter-end. The impacted for significant to healthy moved our businesses. with a sales stress suspended million. informs was loan on generating of to of those time, capital at The Company week demonstrated been in their credit earnings risk our also of currently understanding and way. repurchases As That The the understand to we've release, we sale clients

our completion it the reactivating of program, the November, more we could consider in that share point, begin level At early program. a repurchase fourth current Company share as remaining will slightly early has X shares this that the quarter. Following than stress appears the as share the repurchase of The in to expansion repurchases consider will Should authorization. support Board current million an larger repurchase surplus capital program. our test

business, our summer summer That When York outlook number the and we spoke in urban last Shore the I'd leave minute of a people spend of shore. was there continued reviewing July, our spend area and the of optimism. Philadelphia New discuss the of Jersey throughout a were at substantial Central and a like beginning market into market the Jersey operation. to for our to chose I New fall core to Before as and the to of conditions open, the centers be optimism sense New in

has influx summer real residential a family well a XX.X% market The April. our areas to sharp a is rising population In compared Jersey salvage of fact, figures season. regional New mini dropped markets prices Jersey. home of in fueling many X.X% summer visitors past allowed New Unemployment many expansion across core and metropolitan from snapback traditional estate unemployment clients boom remained these support our in The in more of robust estate, real from solid residential single latest XXXX. median with just the XX% of The to homebuyers season. than the have to in high

New and statistical XX% areas well results York is unemployment the metropolitan in XX% reported the respectively. Philadelphia Jersey below and New

they While are continuing will signs surging consumers there be circumstances COVID many nationally, of pain is although in the throughout recovery economic markets, businesses remain economic the feel and uncertain very our recession. and manageable a required that deteriorate near-term, shutdown no we are most the quickly. cases times The uneven, to with of could in and broad-based remain

absolutely round targeted our before, but mentioned rely forecasts not as stimulus Additional stimulus. additional is I on needed, do

playbook simple We're any as our crisis. to the Bank, conservative. is would and Turning address to strategy economic we the using same

liquidity, billion year. $X.X First, by deposits secured we increasing this

Second, debt $XXX stock issuances. and bolstered million with we capital, in subordinated perpetual

loss, of we focus profits. we the will this the management decision the quarter. asset. acknowledge Third, has $X.XX corral among of financial quarter and the operating during The was ring-fenced We're announcing OceanFirst resolution final to of a us risk sheet effort developing sheet on per our share GAAP address The that to history made and quickly and first accelerate OceanFirst for margins to highest-risk the earnings first the disappointed in recorded times. balance of certainly high-risk strategies. be a credit to credits a drove and disposed The fourth In the difficult capital downside balance decisions to banks loss boosting the risk margin rebuilding quarter. of the now the risk be but to quarter recession acting and XXXX, results of and allow

the have were quickly been higher recoveries realize XXXX, case later years allowed the and that the in than far that Moving early would bank in XXXX to followed.

the been later also the certainly the XXXX allowed the bank in and reflecting that on early but has hope won't the XXXX. first focus road We than smallest. that before come liberate a to collapse the on Our need Bear our adage, These we during to Stearns year is challenges current be the resources recovery we crisis in close more crisis building actions believe to action business. loss the firmly sometimes the to Lehman hit

combination mix loans. liquid Our cash and on is of path to and a securities profitability margins executing from build into improve shift a centered

driven of During deposit $XX million the average Robust after exceeded running we even our sales planned additional loan a we quarter, will quarter an third million additional growth the $XXX that ratio even balances an certificates. lower ratio from of go quarter. proceeds loan-to-deposit our generate as XX%, off deposit the has $XXX and cash million this to cash under $XXX growth experienced million during in

as our While hiring deploy priority we into growth massive Joe are markets. our accelerate throughout time. talent XXXX. we opportunity the deposits through capacity relationships deploy lending lending for earnings a over built plans to Organic the will in immediately patient will time. shift of prudently sheet. balance and the the to heading fourth will walk commercial deployed amount recruiting have that deposits way accretive, in it expand to in top our aren't will cash recruiting the our provide raised this the by Excess cash some quite be The winning but be take past: and time will quarter, mix business you significant growth we on to same year the is fuel new

profitability to the acquisitions. shift should of management Thus covered focus the to credit XXXX, far strategies, on until risk of of acquisitions. is entertain core have need I've the conditions share accelerate expect to capital allow we also including in business So mix already be share additional An precluded motivation challenged economic repurchases us and acquisitions. and resolution to consideration to is measurements completed. We traditional address our repurchases. pandemic-related additional

opportunities valuable franchises XXXX and that to However, wrap forward it as up acquire into might to appears XXXX, we begin look appear.

results credit mitigating pressure to moved quarters. banking focus have signaled peak the will coming provisions. many that have strategy over banks Third for continue the and in the probably strategic me point, institutions off is quarter NIM the operating reductions leverage present relative a low-NIM Perhaps environment impact highest-risk expense will increased best accelerated will protracted acquisition and now in hand an call many sector basis be us the allow loans consider Joe this to our should they improvements Shedding themselves. on scale. let Lebel. to At opportunities through past

Joe Lebel

the Chris. activity interest and originations Thanks deposit of or expenses plans. net on growth margin, in the both some loan effects interest loan XXXX and net income touch comments brief on on before I'll

expectations. relationship grow $X.X $XXX quarterly ahead to million and of well growth our continue We growth year-to-date of with billion of deposits

wins. substantial has of growth liquidity relationship corporate support staff be excess the included new available as the growth. high-profile business, doubled These we've portion year-over-year, our deployed of utilized result into which by most XX% we've and maturity eight to borrowers, of management by cash a nine-figure of the this PPP to and several has higher-yielding loans increased since is investments the importantly, loans. deposits now And More seen the very are

acquired over end mature, rate with XXXX, quarter opportunities. deposit providing XXX of average of loan-to-deposit XX built CDs quarter mentioned ratio rate is we the strong points the quarter-over-quarter. quarter commercial Exclusive will Loan and reduction and XXX same points quarter the additional of muted recall the as accelerate At originations is the to closings the more may Loan a and in our heading from a strategy. products basis Deposit deposits costs raise solid suite a discussed high billion continued was reducing by were and to and weighted the longtime loan quarters residential XX% continue basis first and to few competitive accounts, indicated basis environment. loan activity to the time, despite in loan-to-deposit points. XXs ratio existing earlier. decrease we've complete cost repricing foundation for ago, as originations cost fourth loan we current economic of a some treasury XX as year-to-date The of talent average sales deposit exit weaker XXXX. million lower points of $XXX XXXX is of of volume to million provide deposit deposit can You continue XXXX the growth believe of that just We continue the we've PPP our for In beyond. of ahead had deposits $X.X growth basis of we to and comprehensive with XX% as continued strategies XX growth. weighted loans

rates strong in of quarter-over-quarter, the moving very or of sales quarters At XXXX. We are New $XXX the all growth doubt and in chosen that And to footing team exposures. In while election, while generating to loans has their we we've balance as managing back pandemic our million primarily months more the for overall low originations nine sell flat in with a all-time of it to be adversely after near-record the and inventory interest depending mortgage continuing and million. activity continue living most pandemic. stable economy to the the commercial, our originated through we York the what record affected is no state pipeline were the hope expected commercial recent from of the regions income, a residential the on of banking rates, borrowers sheet businesses the to combination with to follow be scarcity pipeline. hear of to they modest XXXX these newly should the their year there's The suburban the business the regain from customers. conforming weeks continued individual generate clarity Loan from hit recovers year stride remainder as residential Loan in year. helped has Philadelphia, earlier from $XXX

future clarity lending can health As restrain commercial public and to trends you of continues the for policy data imagine, and investment regarding regarding the public need lack more opportunities.

saw which at the we interest NIM calculate basis by reduction. the margin, from points Moving the lower basis interest excess liquidity XX to due XX factors, points XX notably rate balance to points declined Core net point six and sheet, we basis few a environment. the on basis a

reduced accounting the basis by Additionally, purchase overall six NIM points.

continue sheet rates Commercial down interest-earning XX on rate affect market flexibility rate that with be loans margin, with protection. spreads continue yields floating to at LIBOR for balance to average assets basis lower quarter-over-quarter. originations provide loans points swap but contained floating New originated

expenses. on comments to brief Moving

expenses, an employee higher Excluding consolidation million, fees. of expenses also professional merger-related previous in our the recorded increase branches branch expenses increased No in quarter. benefits attributed COVID-related totaling increase to of operating $XXX,XXX $XXX,XXX the $X.X quarter. over the and were primarily an cost and consolidated We've

about more with the markets up expect details serve finish consolidation advent we with in of the the we Even COVID, prospects loan quarter. I'll we'll and very some comments XXXX. expectations and for in provide and branch optimistic loan for We XXXX are next some growth. deposit

and exceeded Our newer Philadelphia metros City expectations. market geographies in York the New have

While underperforming sales. for exclusive of of I growth the expect flat modest loan remainder the year or

of prepared That loan QX. provide incremental NIM in growth and challenging pandemic banking environment in XXXX. XXXX in strong will will earnings talent return are commercial We investing and is teams growth the QX the and The and for to require commercial investment may said, be and rate in and beyond. momentum addition strengthen restrain in interest lenders to

in have talent a track point, in well We markets. as this of the as fiscal during Grace. record production the of loan 'XX will year over to a opening LPOs offices similar few we call At and commercial new I expect markets, our investments deepening turn existing top-tier new accelerate I'll XXXX. the attracting

Grace Vallacchi

Thank you, Joe.

typically and enables history since to are the losses. means It a of identification believe simply has This low to a economic our We As good history of and is key which XX% management loan in lower Chris our the of OceanFirst XX% our effective cycles. risk. a that and risk loss recognition of proxy risk proactive over With risk this factor mentioned, XXXX peers believe than peers our variety philosophy relative long of is UBPR regard outcome. and credit lower cumulative peers. includes leads more management losses a than I best to minimization

with pandemic to appropriate of credit we the proactive quick Chris work developing through this $XXX the remain More where and been We've the Cape our process. was derisked zero during exposure Exiting quarter XXXX. Bank of have in loans. maintained take approach the and philosophy inconsistent mentioned pandemic. first in active and recently, we identification shortly million risk risk proactive through recession to incurred after credit our and loss measures Specifically, to problem appetite this that the downgrade portfolios actively out Sun acquisition.

While the We third expected doesn't mentioned their non-accrual appropriately from status, portfolios. the identifying it debt in second Act CARES end. calls periods we banks forbearance and began risk-weighted in as restructuring exemption in quarter provides quarter to absorb and migration that troubled risk the the first from

stay we and resume continue discussed payments. we've a reasonable financial close have condition, with to This quarter, course contact or and their monitor financial their for verified liquidity their assessing capacity. our in with borrowers talked of means continue borrowers, and ability condition basis the repayment the their Over third our to

result, a As we've portfolio risk for significant updated a the including that rating the portion all commercial of of forbearance. loans received commercial

vaccine of about timing or potential other During stimulus process, additional made we that assumptions any factors a economic the no may this recovery. impact funding

mention. perform shutdown billion loan-to-value. are Overall market our loans. of held-for-investment optimistic sales. average the material measure and forbearance loan over the commercial and this $X.X with $XX are in contact to higher-risk $X.X just identified other million current rate rating after our and Through and credits to loan risk of Pennsylvania Given identified This portfolio months credits over efforts never resolution billion we've exposure. These gym loan total areas. are of and residential-classified well we six and remain accelerate commercial XX% in at pandemic-driven X.X% New York continues of in borrowers received well across proactive includes or but secured include and and commercial- Net fitness consumer credit Both special hotel in loans restaurant low including our in risk to forbearance. exposure through portfolio. exposure weighted close of our New portfolio the quantified we that $XX residential in monitor substandard respectively. exposure quarter. million $XX and chose manageable with loan $XX million migration in process, these and this million risk, these classified XX% these and million of credits Total all million $XX and exposure very $XX sales credit and sales, inclusive XX% are million all $XX million recovery $X at rates food-related Jersey balances

all to or forbearance December XXrd, $XXX received total $XXX on leaves This forbearance are the September that As Total just In billion of exposure forbearance at loans as as charge-offs portfolio, commercial to delinquencies $XX of loan be basis investment were October loans sales in that XXth. $XXX remaining $X the have XX% of points $XXX,XXX. million This on returned received and returned held loans exclusive million in commercial million of payment. that million to of October to loans XXrd portfolio and which XXst. $XX are balances or has remain low for the by should and loan of expected full XX of of leaves are just in payment. $X.X residential forbearance has XX% resume as payment, the Inclusive forbearance billion these in unchanged payments residential returned of XXrd. remaining points XX non-performing negligible million. on the TDRs $XXX,XXX essentially OREO quarter discount third at Net basis October

$X Within exposure. are period in is and even in scores XXX the quite located that and reasonable forbearance values XX-day counties LTV year. risk period in first It's are respectively. and forbearance XX% out of respectively where average of point figures million these Cape is FICO indicate. our over residential and May, median lower current I'll million average residential than and that Monmouth we to thus have loan and forbearance to XX-day The conclude Atlantic the increased home past over LTVs XX% prices substantially have $XXX loss weighted remaining remaining annual portfolio second Ocean, weighted just our portfolio, XX% just XXX

the may residential a fourth quarter of this on a of reserve provision qualitative choose pool to credit loans quarter. portfolio, with includes third sell the we Depending in forbearances. final associated resolution The residential

if loans residential valuations final X.X% of As forbearance sale, of the held with commercial it or The remain as and of of exclusive support $XXX loans any loans that million for may sale October disposition Inclusive the total decision, characteristics. residential loan approach both of loans should reserve economical commercial and remaining demonstrate strong and just totaled loans necessary. XX. high-risk be collateral existing accelerate to that

to credit for points $XX.X build of of unamortized coverage or with $XX.X This million marks. brings the X.XX% million the loan funded of to addition allowance Our loans. reserve balance increases losses XX basis million credit total in loss $XX.X held-for-investment

the factors of commercial by pandemic loans risk allowance loss allowance As conditions. to Chris The as credit driven losses estimate forbearance for was the for generally qualitative to changes as credit weak currently earlier, pandemic. our noted to loan credit increase rating represents related related economic the well related best

and adverse provides the capacity. to to initiatives concluding back today's conditions a now our reflected his derisk it turn end holding updating We thorough were the Chris commercial and for periods economic in portfolio credit further losses drive severely residential I'll which strengthens third come periods are loan economic loss shutdown and in Reserve's quarter portfolio adverse that portion elected a and that stress have our have fourth higher-risk with the individual our migration borrowers' to during and the light to position quarter. of rating ample repay latest impact manageable. test toward associated adjustments build We're redirect forbearance this comprehensive sheet an quantitative of forbearance capacity to our risk that risk that impact of Act our for the residential our risk expected further reserve will this the would growth to credit given sales. resources the assessment reiterate as company confident the in understanding growth in scenarios. and CARES Federal quarter. capital became account these within Qualitative ended the recession borrowers on include individual an commercial periods increase reserves. forbearance as risk We've We're conclude, and at and for our to borrowers' we clear To and we current balance repayment the credits migration both Excess the some remarks. profile and for risk of of of position ACL identified capacity end and settle potential the of currently our I'll modest current is made

Christopher Maher

Thank point, up the this At questions. line Grace. you, for we open will

Operator

today from question first of go ahead. Erik & comes Scattergood. The Instructions] Zwick Boenning Please [Operator

Erik Zwick

good morning Hi, everyone.

Christopher Maher

Good morning, Erik.

Erik Zwick

some liquidate. to on decided the questions just loans First, you

to recognized $XX.X so charges that $XX.X related about at -- you I Just about are got million trying million. and the think they've then think

curious one thinking just to if how kind So the to right I'm those have X you loss just on any losses? those Or about ratios then the you received of did trying And the compare? estimate bids loans? And numbers are X of understand kind there?

Christopher Maher

Sure.

correct. So those numbers are

And so closed pool New has already York post quarter. the

we So we that what New Jersey has firm expected. figures from pool. would on and I realized the bidders at Pennsylvania And the as have multiple bids classify

in two the the So that of we marks at reflective took the we quarter expect of clearing are those to close the that end weeks, prices. but next

got So Pennsylvania York But we reasonable are we've closed think and assurance. is Jersey New closure. and New pending

Erik Zwick

looks curious Just to are bids the banks buyer coming And other pool or this at non-banks? from with these what respect like the point?

Christopher Maher

markets. different really interesting very That's they're because

York So in reasons including investors than in New a by default the being upheld area, there's New estate strongly rates of stronger involved variety of elsewhere. note for in the are the real courts metropolitan more a York purchases or long history

to buyers and those was of kinds So in assets. class the case it specialize matching asset a specific New really a credits, in credit of who the of York matter

typically in to time over York. little Prices a so you loans time. years, the would than New sold weaker with we've them are And expect business from done and

an prices New I think the The notes are better Jersey loan pandemic for that's but little a credit of different. and a price, that expect is them looking buyers and institutional little more You'd kind That's much Pennsylvania of discount. fund accordingly. distressed buyer in

came historical average. the York in So conversely, lower bit little New than a

New Jersey historical is than little better coming average. the actually in a

neither off but we -- rates. to So be are what good very recovery expect pretty far would

Erik Zwick

and pool be recent loans relationships to Okay. your that of at originated you mix, a have I'm -- may of sure some where through any which kind loans OceanFirst? sell breakdown some of were that any between but decided it of the acquisitions acquired And may then of

Christopher Maher

a Sure. they There particular was overwhelming any whether of from not pattern came acquisition.

So that acquisition, clustering maybe that. not no one had sure maybe almost were few long-term or anything acquisition there or two customers underwriting a but criteria of OceanFirst probably concern I'm of were like every around was sprinkling and a every a -- may credit have There credits.

too, pattern be a because little there a bit it in wasn't indicates So and book that comfort more the was might time. loan over everything that of problematic us that it gave

Erik Zwick

And then previously you'd using Sandy Hurricane the impact. spoken following favorably of the kind experience forbearance of

Just borrowers longer lead that's seeing with them versus favorable curious working what believe these would a of are this time to different that today? you to that some not leads more you outcome selling

Christopher Maher

So question. that's a good

certainly, the that we look we at would one of we is yes. So more held things loans had the chances than have almost these today recovered is if we recover and the answer

many to were had So decided on hold loans, these paying. to if we

good past of were credits. these a section fact, In

was on against we ability behind focus several years and which what weigh the us other ultimate may However, to to us had kind take that put of recovery things. these and

dollars. took and a But extra those. a time that's we the attention ourselves liquidity million little certainly So of we discount. few probably accelerating I guess bought by bit an

don't that We I to there So think giant think accelerate was cost it was cost. this. a a

earn you thing you'd to other a in where the to say that where explain was a to established that is books with center we The may money were it now our property be a a think have several with you more in or led thought valued a it and taken let's reserve on discussions regulators there's us But position that long is. why investors our hotel comes quarters also lot about that of run. the the valuations a kept these actually million had with of $XX conscious fitness have having pool with final a risk merely of stakeholders proven may disposition very for and finality we the

this disposition. risks off final that those can way answer balance We we So, the we get the sheet. certain exactly the be what took We know is.

Erik Zwick

the -- of reversal me to to step interest for downgrades held the last reflect quarter margin then any of then third net and out one to transfers the related aside. it did any step And the With respect for interest or sale? I'll

Christopher Maher

not. did It

So net for entries the interest the no unusual margin were in there quarter.

Erik Zwick

Thanks for taking my questions.

Christopher Maher

Okay. Thanks Erik.

Operator

question next Please go Davidson. Gunther comes D.A. of The today ahead. Russell from

Russell Gunther

guys. good morning Hi,

Christopher Maher

Russell. Hey

Russell Gunther

this of Just how you you so an that questions a hotel gym on are follow-up some and discount able from share fitness? quarter, loss rates on the class moved the credits restaurant to on perspective, and asset translated Erik's

Christopher Maher

loans. -- one I'll category the you've Joe So, -- over or provide it bit some figures those got we was all could Grace place. you in any And only that you on data if may couple But extra a handy. a of have little had

Joe Lebel

Yes, little in you bit, beverage an $X.XX. bit. varied very think -- example. but the I and I'll is I and it Again about a give food you the $X.XX In can Chris, Russell similar a recovery. we're give hospitality about

somewhere everybody was other watch want through relative almost range. XX% think add comment I or scope, criticized the interesting to of bids was the to do So, how that I one in worked. sale classified. the an On to was sale. it overall how came things and

health. based had So, them for on rated while some were appropriately our long-term paying we expectations

Russell Gunther

$XX of million Joe. portfolio? New that any loans, Thanks to York -- relate the then of And the let's pub were in Okay. City see, restaurant any

Christopher Maher

be to seems portfolio that Interestingly well. rather doing

deposits those their is also in have have cases primary many of asset only see. And can and where and amount the owner-operators is bank families operating. bank in it of It liquidity. So, liquidity for in they've -- the we the those we they're form got that a significant then

They're a couple been than a of much They more real investor. protective also to demonstrate of collateral. things. So, liquidity expect more their you might from able have estate

we liquidity we'd like post cases folks things. advance That the the So, you, need particularly those to talked kinds payments a day. of stand but strong look end we you in we of those post the to and some to said at in with was portfolio as

Russell Gunther

Chris. one this Thanks it. Got last And one. on then

of out hard think up investment. classified from troubled criticized terms Joe these made classified today? I not in any the classified pandemic hit I particularly were the for But of is XX% what of was that is You read-through assets X.X% out know of -- of there these mentioned of is hit the the all those and on rate now that -- clearing from types. can of which remains to the classified criticized -- this portfolio held criticized we Ex at

Christopher Maher

comments I'll a Joe make in may as chime of and think and well. couple Grace I So,

active commercial we of we're a not WE are We things couple used an credits relationships -- bank and to way don't which maybe estate the exactly primary would. We're tools. means same covenants. lender and have real look we have managing a at

We have significant liquidity. guarantors. They have

them. special for doesn't we substandard It that followed worked get into paydowns In we're loss. several significantly we -- that in afraid loan or to refinanced into collateral need Sun the some of and or increased that hundred the right an work loans mention cases or it posted it. get moving of asset out you in of done this we collateral on or mean means we've the us then risk some sale to quarters So, we work would when through particular through need And that substandard. necessarily got million past we a and dollars a has of moved a it. additional and or restructures in the banks. acquired Cape you And mention of special

pretty that and give they chime in. the you wouldn't transparency designations concerned So, We're with you're those we're credit Grace categories. can with because so intimately I aggressive involved just overly us comfortable feel about process in read to the risk. through Joe that these

Joe Lebel

-- capability comments turn that for to that credits is to In sold or back that not the this instance, return bucket of to kind Erik the had environment in that and see same. Chris' would a I'll were we we're And made example we same good the period lot but we'll I I'll credits. of term and then asset do add go earlier have we we downgraded before A Grace a returned I classified needed. a in think, borrowers comment long that of going to criticized stayed the to performing to about to Sandy. that time Before it pass-rated just that that felt -- to that

Grace? fair that is So,

Grace Vallacchi

than I the -- you when of earlier. We Absolutely. hope now talking about would what add Chris better hear guess was And is I I me can I was context guys speaking what in lenders consider we rating general. real ourselves our proactive tend to commercial in we preponderance dealing estate more even a customers though risk collateral with to so we that and have approach take of and

so And ratings. waiting perhaps delinquency opposed for that's to status inform to risk our

this tell both the no that And payment necessarily of that mean and I is So, there downgrade. Joe like issue can a real point. the nature this at said you concentration in even these doesn't Chris have borrowers

kind in So, random sector. in for of They're they aren't instance, sense. all a one

Russell Gunther

you Thank if switching you side of then for each quarter. thoughts on And your expense this things that. the I on of Okay. could just quickly gears

moving You mentioned of the some pieces.

COVID kind million. was related I $X.X of One of expense the think

So, other expense wondering are travel those run could think I'm time. what of of trying rate two for that we quantify be. over kind moves perhaps on you $X.X think based or Perhaps things less what each net below just out the expenses lower normalized about how of would that? Do should million and But to kind example?

Christopher Maher

of you should our expenses and mentioned investing because into of about think factors a that expenses clients now lot we community. being elevated and direct And and are obviously energy our Joe time I our predominantly the protecting and two think our employees COVID COVID.

So, we've with got amount expenses significant a of care health professionals.

testing doing base. within our are employee We active

about got people's making status decisions we've outsourced health work have return We where work. care professionals to and health management

want cost. note but expense a make expenses all So, I decrease The we will about those just responsible, a We're that. Those are think over to at as healthcare go XXXX. they self-insured. time into are things we significant

closed So in were we And on risk of healthcare quarter. bear the a systems second portion healthcare. our the

go do as So couldn't it. do even a wanted if find employee place you go to to an you something

So any procedures the got that people became needed third quarter. procedures they second in the quarter in

-- expenses to don't and not where probably two factors. thinking I going they about that I are today see think going But that think that are where prevail. should you're was So

probably things the the hire a in at to time, to bit of commercial next going there There's like same mentioned years. You're that we'll see do bankers. as also Joe pandemic consolidation was little expenses of But then year. much prior decrease. available continuing Joe branch not as mentioned,

out. going you're a see It not see a to going I in redirection hard you're exactly dramatic and will where say decrease of to kind that are expenses. going of bounce don't So increase dramatic we now. It's spend. to around will to think net you're where see a

Russell Gunther

I got my question Thanks, Okay. already. to guess, you follow-up Chris.

other be of outlook, moving discussed generate had on do the the expense be leverage would you that you're given piece pieces top-line positive of some operating So XXXX? think last to to the it going you able in

Christopher Maher

do. We

really amount come So fair the growth. be of positive a about to And needs clear organic let me from operating organic leverage growth.

before under sheet just have nickel. by about to billion We a deploy moves $X balance the

a So we cash. quarter in average of of balances the third have ton We over $XXX cash million.

order is compare some So be forward. difficult the return we're our that's And may numbers to business those balance like going an bank. first sheet We're $XX.X a billion and margin $XX.X numbers on of that says bank. really billion asset why of

into grow the have. cash to have We we

growth, I mean So organic the when book. I organic loan growth in say

the will occur that several next So quarters. over

because on more the revenue you'll to operating then we at NIM leverage the leverage expense will than that working And As side. and start will stabilize see be operating increase. on we do then that side produce

Russell Gunther

I Great. much. step-out. Thank very Okay. will you

Christopher Maher

you. Thank

Operator

The of next Zack comes Stephens. from question Westerlind Please go ahead.

Zack Westerlind

Zack Matt Breese. It's for guys. morning, filling in Good Westerlind Hi.

Christopher Maher

Good morning, Zack.

Zack Westerlind

Hi.

the you curious just should confidence be front, that worked going be by the by in of sheet out that deferrals deferral that's what mentioned kind -- year? remaining presentation the of those you end on was factors give be to off about end. just will So the worked year balance XXX the I the

Christopher Maher

not forbearance significant in actually the that In loan-by-loan just -- the had how posted liquidity. book review advance those bank of to to have a that's to a require the a done understood We sure you're So in-depth of commercial even doing. liquidity main make in discussions we amount their be forbearance I think quick cases of access to in and about factor call payments. not we we some is and brought of everybody

payments review a payments hadn't some the six methodical done just aside. two got made and biggest have an back or go have issue. concern we've So because payments people sure, to that we making make to people got put They've our come They'll in we have make then maybe February, three in back. fairly was They said months. okay cash might I'll that not

I've really had a hit or just So or not to that we payments of of capacity to upon make can of right? was sure make that a happening got room capacity after I'll the external couple business, a wanted make XXX% get ahead then but to and who understood I that. payments contingent the dining something make was we couple have to my target to before payments in

a And we at where couldn't a review operating way put we collateral just you good out. in rigorous looked draw but together those said find we those out areas string sold where you characteristics people, where look loans liquidity and see pretty good could it here, if a forward any a the there's was of and they're circumstances you path it with So couldn't about pattern would concern. think we to were have the loans

not quickly it's So more and don't think if eases think COVID we going don't -- them. a for better think they're miracle than be we going even we to get to

Zack Westerlind

Understood. quarter reserves the have comfortable And expense then this forward? level build Thank was expect higher Or a should on continued you the reserve the couple provisioning Are you. of build of just little there with past than now? of we bit going you quarters.

Christopher Maher

reserve if XXX mark, think that's a got the wind as up this which said we quite points. unamortized portion about basis So lot portfolio. of aggregate apparent coverage I of think, several loan you the Grace over quarters has as basis kind at points, add if together, those not of XXX now you the And we've conversations we've in the of credit last anomaly had a about

our For the of risk adequate that's institution, think reserve. profile we credit pretty a

long-term charge-offs as noted we our the that quarter, with as this these proxy well our peers is even quite to Grace took credit UBPR peers. performance favorable As

should So a bit than our reserve lower average. little be

were process gotten the that they now. We've considerably The but should think knowing going from were we one concern we chance, is the how in think conditions would chance economic will be we're very deteriorate where today. through main a So and that small are a out. what taking forbearances to provisions quarters exactly not fall of be. ballpark two In we we where

So things. kinds the form of those very that stay-at-home of would in order or kind a of come regional maybe significant

that So see don't hopefully avoid but we that. account would that any today, we've into in signs of something not our that taken We reserve. be

Zack Westerlind

then points helpful. Got And margin. moving you. the XX compression We color. of basis for just That's last this over Thanks saw the to question quarter.

Moving Or that room do think there? you into to bottom? you XXXX see run there's do lower as a that

Christopher Maher

And through But to know. careful absolute on I'd comfortable be things to things. quarter an we're close then declaring the don't we'll fourth very now like what think about be in close. I a I factors we and the bottom We're we'll going bottom. is have bottom. I'm two have

first that, worth million we're $XXX liquidating look The of is loans.

Now still most paying were they last of those were loans, but PPP interest quarter. us

get to going So interest in. that we're not

referring was keep us points. On $XXX the basis flip XX earning we side, the million that to

into even get So moving mortgage-backed securities pickup. you a

just So that negative talk portion at as carry. little maybe And of a bit we means you Mike terms will carry like. margin to in what a to give what negative stabilized a some our sense the about margins balance of that's sheet look have

Mike Fitzpatrick

Yes.

cash So of at the QX million year margin, $XX when $XXX look million. short-term a it ago at was we you look in if

round up drop earning basis that we points. margin. cash average the denominator basis picks numbers If earning $XXX it's amount with of $XXX just So excess assets XX of points that million XX by million

And that to it points less like so Really were liquidity. talked we we've basis Fed sheet. the sheet. Our then in about XX at said, from it's XX and balance April points just the balance broker earning if had basis is, when $XXX we concerned thing $XX.X about Chris And margin cost billion $XX.X an really would it's billion with We deposits. other go X.XX%. just just in offset deposit a the X.XX% offset million we're

have negative on We at that carry a X%.

January off X margin. Those April. start So then in then in points another rolling that's basis October

So just -- the negative there margins. XX points you affecting of basis have

back margin your takes that to So X.XX%.

So margin problem. a not it's

to that liquidity we invest. prudently excess have to do. need need we We That's what

Zack Westerlind

million that in mentioned then you. you a in very one deck for sense could me. on quick And QX, coming helpful. yielding? the give last what securities us follow-up Got That's you are securities The for that's in those $XXX

Christopher Maher

there. of a securities There's blend

points. a in maybe up careful be than a garden-variety wind investments lot being all it And points XX from to basis to asset basis then may we'll sexy Those a better lot. us better it's put Those not little make. obviously we'd it class but like one and range things will are mortgage-backed earn securities. So some going not than It's XX we've that. other got not

done some investing. have subordinated debt We

book securities $XX negligible evolving did equities to that the we a pools of our do to to at is worth we that We about in believe well a higher-than-expected may credit are -- in in away and We were at bonds a the about to want Municipal We've that things of a sale world opportunity municipal able risk. in million need entities thoughtful income that increase we the to have asset CMBS dividend-paying in lot stay we have quality from the will because we the be risk. credit that as we very other we done review quarter too high think fixed continue of gain. make to our I bond few led book. municipal talked we loan about and mention like should fourth will -- bond another and risk that that. that can sure be portion we the But book.

error. -- clean. very a that balance very were sheet And to through high We've think invested able got hotel had clean just it's rounding looking were every been portfolios because aspect been that we CMBS But the and of that were I out sector -- to we and in make this out high our vacancy them not loan we've through get we're early. ratios it's of nonpayment portfolio. sure not in these case our So

Zack Westerlind

my Great. guys. Thanks taking for question

Christopher Maher

Thank you.

Operator

Frank of The question comes [Operator ahead. Schiraldi go from Instructions] next Piper Sandler. Please

Frank Schiraldi

Good morning.

pickup a timing had review the ready weren't maybe standpoint, through just about guys get go to something out ask market parties From Chris you've assume and if done. get a you palatable so loan-by-loan these earlier But as anyway? earlier things significant marketed loans. you've to interested seems to in to any gone these and I'm there wanted you've was marketed pretty as sense pricing? what Just just I a like you seen trying

Christopher Maher

wait that was the first, but be on banks it of our Frank -- because; In execution we We liquidating side, timing cases, to were we actually roughly so a a see watched we at a and value. were we we terms wanted rush about supply was to what first very and was I of this to little that portfolios. But demand. not couple closely No. there door other some there a because early talking few until better. in understood trades were then either didn't want think the cross But interesting we wanted is

conducted to late were fourth after buying make some particular the knew sales just not But They're there a there pool. the So in buyers rush a we robust the quarter going to all it earlier so But is was pool. was liquidated election. robust we a they're crazy. to go that case little sure our assets fourth rational quarter in in in wanted

off as we as risk take So table much the of we the to election wanted could.

Frank Schiraldi

the Is is -- completed. what to sales held looking categories? move balance then are taken been that in you sale sense. that in this sheet? the for having does off imply you point the that higher-risk have place you're And review And or makes bulk guess loan-by-loan at the that that That all loans that the of mentioned I

Christopher Maher

of expect we're talking in be we've of here: a and focused have and have amount we geographies. are been to and portfolio point bulk the geography I as The both make we the a as industries sales totality the significant the what the important and forbearance pools on obviously through that the about nonforbearance can industry. now higher-risk

They're where for kind because they're shape of one. really don't winter a next going they the into have we cases Shore did resort tight season example, have year. used having were And So good that in to Jersey near pretty in restaurants well. locations

makes a geography difference. the So big

Frank Schiraldi

All for right. isn't example look to of back And if need now Or full that I is And I pool pretty moving understand that I just to terms the portion payment you make does you some to good going the you at are about -- just a year. talk back from the when of the or this regular be -- by right in in feel forbearance that making payments? want understand you? saying sure $XX forbearance million there move through attention end what could that additional have TDR

Christopher Maher

many pool liquidity will will confident here. that's go loans have interest be we modest that pool there be in to a for and we into the And make of in to payments. liquidity to we've highly seen that that cases So going only that are very moved those bank the asked

kind forward. our going here's -- to IO. on We outlook and disclosures going activity will that pandemic the So And a forbearances either we in the barring this is bigger how or payment pandemic. issue think forbearance-related quarter have about return to up wrapped to doing to be this go -- that how of talk majority full so especially no go of to

most important forward. to just now So metrics credit we think the to traditional to thing do move going is

be going expect next a going exactly on what's to or But we kinds we you TDRs see as expect we're we'll We'll you We'll you into our So we'll I and sheet. you it the reporting portfolio book. normally be don't to the as loans into performing that delinquencies. in delinquencies, think nonaccruals. TDRs. have visibility classify would you and show show nonperforming, into those next We'll way. you show loan year-end complete the show balance year providing to and way show don't year and going of on forbearance we metrics We'll

So...

Frank Schiraldi

you. Thank Okay.

Christopher Maher

Frank. Thanks

Operator

question Marinac Janney Montgomery from ahead. Please go next comes Scott. of The Christopher

Christopher Marinac

XX-Q. a thanks. -- But Those in held-for-sale but the already have can loans. criticized call, this Hey, that and that the that quarter. the are kind morning. Chris, Good chunk include loans alluded those assets earlier of the in the to we'll may see loans there's selling you of in

Do the number pro of of forma So going we mind? kind what be upcoming to have that the lower right is criticized Q I say. is going in that to to have my than kind

Christopher Maher

Absolutely.

So events. have we two

the sales I that First criticized will New the -- closed. a so New is know PPP also And sales PP and York done. not asset, sale Q, but been it's It's X-K, loan the they is tight Jersey metrics around I assuring we an has what final people if the loan closed, conducted those Pennsylvania provide remaining the have close be close. are. going to after the just But imagine and Q. probably will sales that would

Christopher Marinac

Okay.

ratios So here. obviously and and go from the will the level change lower

now? So I guess, my be you would see what other is things are just be, of quarter migration comfortable limited other -- question based you on that should right this beyond it the

Christopher Maher

There's two things.

First, an loans. done exhaustive of we have review

might or pops is of be we've risk there the or dealt -- that taking marked portfolio. is it. something adjustments account to that there that What it, in chance it is pop into there the the reserve with address saw qualitative significant that done we up. credit to have may There loan So, a if here not risk always we fairly set a for up our

that at thing really we think customers, have I when performing you loan well. us other -- great comfort look all they're our largest The gives is,

case. of of be all some a a only customers XX a size. There that our So on form loan book very are have of cases couple top for the we granular in And will company payment. IOs

issue. once an fall XX clients, that to be $XX would relationship get an So, our probably of it scale a back one through credit come you relationship, you is the exposure. And unlikely of individual cause or even if you have top million and below

Christopher Marinac

question up? be that changing might to calculation is is And see March different a next this April? just you economic today a in or come the do just two How for or and that helpful. That's as little last great. that forecast. compared back quarter And Okay, then, reserve Grace one within lot on

Grace Vallacchi

So, as or an about average hi, next not in March so. the April. X% average year it's to and of the and obviously. That's Chris, think down levels two-year forecast. bad end That's It's it I was to unemployment through out in reasonable as and time. think over -- GDP higher X% the I and over And X% now of an supportable between go the

great. to Pretty much -- not So, similar slightly very quarter last a in sense, better.

Christopher Marinac

thank That’s Thank all you morning. information Okay. this you, for Grace, helpful. and

Christopher Maher

Thanks, Chris.

Operator

Please ahead. William Raymond of James. from go next The Wallace comes [Operator Instructions] question

William Wallace

morning, Good Thanks. all.

Christopher Maher

morning, Good Wally.

William Wallace

to but reconcile this being text I loans sold Chris, in it's I missed trying of New $XX $XX apologize to million between the to if -- in the I'm in and difference the York Jersey New million the figure Pennsylvania, to for add loans release says those out $XX.X sale, net match. of just million that's that held of and numbers why or moved $XX.X I'm million assume in don't the charge-offs. I trying

Christopher Maher

reconcile. But principal in the right. amount you're the that We're showing Mike earnings Okay. balance. We're you in release. We'll, let, showing net the -- presentation, taking the supplemental we're

Mike Fitzpatrick

$XX the And Yes. million...

William Wallace

go -- the ahead. So

Mike Fitzpatrick

held transferred loans that into The for was sale. $XX forbearance were million

So, were... they loans that were

William Wallace

Okay.

okay. loans that performing were difference were the -- So

what assume the those of was If principal estate million real average loans? all $XX loans. That Okay. loan-to-value value I'm of are I or these wrong... original

Christopher Maher

think -- It's average? weighted real had all do have estate Grace, collateral. probably... almost had them all of you They I the

Grace Vallacchi

I for it questions don't. look I can while the continue.

Christopher Maher

Yes.

So, I what's think say will going look about on if our been you markets. in

went the rate All New and unemployment that of 'XXs. now. deal places a been lending right? there. think great I stuff And going got right back it's York good since stress New the looked franchise So bet we've believe to We're New If -- about recorded. said love like smart it's that's in don't against you a there. to City. York York continue we City got and We under highest New York, you've

about stabilization. issues rent You've got the pre-pandemic

watching because it pandemic. Philadelphia, frankly and the have We're paid. being will doesn't realized But a a And of rent's or buildings. are certain paid. walked the rent that lot closed Center to lot empty if rates. And those concessions, mean there in has rents you paid, I inform just being which be are know continue New of the York around We're in of watching drop Now actual vacancy units. kind anyone City

be So it's each these we towers. rates. to it's looked out, that very we a some at hard our And the came through and especially and market. happy at better went credits thought of with up We're with recovery very

William Wallace

not. still Okay. the up had... you're And weighted But question average digging I I the don't LTVs know, if or other

Christopher Maher

There was LTVs. this. nothing unusual There's -- I say would nothing unusual about those

not So visibility was continue cash factor loans. primary an to using and that were LTV like our factor was and pool The liquidate. driving XX% anything these the not the liquidity was we to that to driving into the these determiner. pay flow were like That that or

William Wallace

have of just if kind about your I'm to trying value loss kind to actually just continuing the maybe to I'm usually the might sell the Yeah. where point be No, assets. need market original gauge best. to we of first banks on being

Christopher Maher

I will small you, vacancy. tell in very change -- it's have you if a

So take if multifamily you a historically Manhattan is like a vacancy. like building X% got -- that's

figures X%. rent. saw under XX% Now I decrease The it's an were latest in just

yesterday. did I math some So

the if goes rent your X.X%. unit about like cap XX%, to actual by drop by the X%, your If vacancy and rate you on from goes X% your up -- rents

in a decrease rates your because up, that could rates vacancy riskier as of drops And cap to drops. NOI you the to see You XX% slightly and go of expect then an appraised on your asset. value NOI go up building, in building XX% average would

William Wallace

premium Yeah. you'll do you the sale? this, have make but Right. that on you loans, may on given that then PPP And have the

Christopher Maher

the million -- net be So would $X.X net. is the

William Wallace

And need does that the would include to be that fees accelerated?

Christopher Maher

Correct. Yeah.

who retained we retained forgiveness. were those the loans strategic also And more that's little take it the about So was customers accelerate information the the that We us the we hold sell half frankly prompt half. portfolio. We to They the the customers those we we And the a and related actually were – was were only them for then other for to needed net. bank. customers discount. about being very And at loans. of fees the providing file and

So to if them to easy decided they were we were through part forgiveness us, was we going ways. difficult helping get long-term to through. thought be to If those move loans it

William Wallace

correct? booked none And second quarter, Okay. was the in that of

Christopher Maher

this quarter. That's correct. That be booked fourth will in

William Wallace

the what net PPP loans contribution So from income quarter? the was interest the in second

Mike Fitzpatrick

we're earning third I were in say quarter the mean. – at X.XX% second I'd quarter at they –

Third quarter X.XX%.

Christopher Maher

quarter. In the third

William Wallace

Thank you, quarter, Yes. I Third okay. appreciate. guys. sorry.

Christopher Maher

right. you. All care. Take Thank

Operator

next from of [Operator Instructions] go KBW. Collyn question The Please Gilbert comes ahead.

Collyn Gilbert

is so coverage great you've guys. offered. color and This afternoon, Basically good that afternoon,

Just things one – a couple too. of

gain front, NII fees on make on sale? PPP going sure is First to the to or recognized just that through be the

Christopher Maher

thought haven't I for about answer that actually Mike that? the you have yet. do

Mike Fitzpatrick

Yes it's loan. not not It's gain on of NII. fees. sale It's

Collyn Gilbert

Okay.

what the indicated loans you're of moving. And were PPP But who I Chris, the buyer the... Okay. Got Who's the then know had you slug? it. about for non-performing the that buyers

Christopher Maher

– give specific a a name – but robust market Yes just we won't we was there for found you I that. actually found

half any cottage and a will their and that they of I then calculation XX at Congress it would've little banks had a And from do So if close a we not industry the forgiveness – there people we were do company part And that will realized bought and dozen to look there's going we prior there they're was around PPP have forgiveness that that probably between that bidders. least then work little that And a had more hopes few may then sold us. – buying happens believe couple loans. of is mass of But were to pinning get held and a them. – the to happen.

there these aggregate. So together of in PPP are couple a of people putting pools loans

Collyn Gilbert

zero the of That's that you comment that year. the of helpful. the Okay. consumer going deferrals by to made lot to end a that guys drop slide the the then assuming And in just nearly are on were you deck

the gives on get I commercial sense curious comfort? that it side. what I of you Just mean

in businesses. you're become But said you've the loans gives these and what As touch know you into you're they'll forbearance that consumer insight having the with confidence current? you borrowers, discussions

Christopher Maher

Probably look few as at We the a thing on It's side. there. a to with the important consumer we difficult more them right. conversations well. is do most have assess You're little factors

do our some So we information from have communication.

of accommodation. to we customers up I requested think in date the that million slides the have who've $XX.X additional come indicated

about kind a on through an basis. liquidity and give Now We're it all that. case-by-case We've current looking with they more of those to doesn't mean of required going application submit information it. their we're

increase million don't $XX unmanageable worth be we number. So had it's may going of It an requests. to a We little think bit.

comments, other fourth appear quarter. that the to thing of to Grace's some to point we expect in The

our for we cover So provision anticipated calculations quarter reserve the helps that. in and the third that

have it be might So pool, in of at we the on $XX side. best higher $XX that be million, if would guess loans be might are point, our fourth consumer the a this quarter, million risk

sell able be too. adequate an to have those to We reserve

increasing of risk a FICO. default number QX. is And communities And lending there underlying loan in the sharply So values provision slides shore issue why or the that residential our have covered the in price concentrated is actually fine. hedged you heavily on default our increase. number around to and through The included the we've not characteristic those LTV. look the But that area our kind and home most continue if loans values is values, characteristic one at income were one the are LTVs that's we median

we the anomalies. some early So in summer saw

was XXXX XX%. June XXXX median county June up to May home from Cape price in May county up. The to went Cape So

to just that's to say stop but sustainable it happen. going is wonderful and is continue that So

supplemental So of we watched and July this the our over counties the price loans and our increases XX of median we most four August months. past home that and all They September. forbearance. double-digit include most The and constitute have in

just going end enduring of if not doesn't into And can their at to seems make the panic quick it a it people shift. surge the It be couple buyers seem let So they're slide selling of money a April. be of foreclosure. in day, an home, to to

as – that well. are weighting we So we're

Collyn Gilbert

so Okay. do And your just selling selling make all the to just – Grace's consumer loans $XX you million expect to sure in to in That's higher-risk then $XX then is mortgage tying great. on fourth you that some Chris, – the million what when that comments that. said quarter resi or potentially that's

Christopher Maher

Correct.

Collyn Gilbert

reserved credits those Okay. additional provisioning And so no you are at would this be needed. think sufficiently point

Christopher Maher

Thank That's correct. Great. you.

Christopher Maher

Thank, Collyn.

Operator

to to forward the closing This and the would over holidays. today. hope our results January. care. Enjoy us Christopher Christopher turn talking concludes our I back stay Right. will we the like Maher conference everyone Well in remarks. to taking time any join Maher Take to you for with thank session. I question-and-answer to I look for safe everybody

Operator

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

disconnect. now You may

OceanFirst Financial (OCFC) 1 Nov 202020 Q3 Earnings call transcript