ISBC - Earnings call transcript Q4 2017

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Operator

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

to a the operations see SEC. Please would of Cummings, affecting For CEO Analysis with of Kevin Factors, discussion the risks and and call in complete uncertainties results like of Investors conditions and filings of Management the Discussion I Investors forth and sections to And Bancorp. the certain please over now financial turn entitled set Risk President Bancorp, Investors more ahead. Bancorp's go

Kevin Cummings

Gary, Tax welcome year a expense two the as which impacted and million quarter result enactment Company XX.X fourth fourth good December operating tax the quarter you, late signed quarter asset Thank December. deferred the Call. In and ended recorded the non-recurring transactions the and and a core morning posted solid quarter a to we the into The but for law XX. Earnings Bancorp Cuts and to earnings from of XXXX had bank a Jobs Investors in our Act reduce tax of point

previously as charge to costs recorded benefits a disclosed, $X.X relating headcount closure plan million resulting expenses and restructuring branch to our XXXX. for we severance from reduce addition operating In and

nonrecurring $XX.X $X.XX share months for XX, result, income company $XX.X the ended net a XXXX. a for three quarter the share quarter or December million quarter the ended million income compared per reported and or these items, or XX for to $X.XX a the million the a December $X.XX of ended two share net for September share As Adjusted a $X.X net of totaled or loss $X.XX XX. $XX.X for million

income to share ended option XX recorded We per prior of noted $X.XX XXXX For share accounting $X.X net plans in million excluding quarter posted should Despite compared to was earnings in the a ASU the ended organic versus the $XX.X it the tax $X.XX its year or for in remaining change and quality share a stock the continues a XXXX. and in quarter, to restructuring per net or the It versus credit totaled be maintaining that XXXX growth, these prudent million buybacks related with quality growth, and December XX write-down ended charge manner. adjusted on plans benefit asset starting million almost $X.XX bank strong income XXXX interest deposit per core relates which with quarter XXXX continued adoption was $XXX company a its for million benefit and expansion, year XXXX-XX. of strong. improved the the net for leveraged margin control, $XXX.X tax a The our million XX, dividends for execute plan. capital all December $XXX.X strong strong and in to have December the expense noise strategic quarter we through in stock

commercial. quarters, XX.X% growth in total in from have our X,XXX,XXX,XXX XXXX with half real finished of loan growth operating commercial year the million last manage loan In XXXX the loan years in respect was with slower our headwinds we watchful keep our our finished growth step. and concentrations XXXX. our XXXX which XXX XXX of than was two of some estate. to as and ratio our Our the million second first We on previous residential mix June and was a BSA Despite down and we tangible to expenses with issues, we XX/XX/XX at regulatory capital AML when XX.X% momentum is completed eye due

for X% year portfolio for for XX% CRE. C&I versus X% and multifamily grew the Our

enhances our bank. it We opportunity lending continue CRE has and us core business New The but to to diversify is gives bringing credit business yield focus York been to Jersey us and the deposits a to Metro specifically the New risk greater and as our business in multifamily it market. very fiercely at of good business a Investors competitive you as know all on

we down XXXX of two production the our here growth of During after deliberately in and first quarter of quarter strong the last slowed XXXX. quarters XXXX

strong result overall slowed real transaction the the in the versus area economy XXXX addition, XXXX as In lower market versus for metro X.X% acquire and in I'm portfolio - our the growth XX.X% have purchase early market pipeline million XXXX. in capital that of to year At close in volume XXX approximately a in December we report just pipeline in to we CRE loan signed February. posted segment and XXXX a of and in we leasing the our now happy right to expect is XX agreement equipment

excited many We're seven years lending the We of on in in solid of segment this in this professionals experience XXXX. with part of who bring have hired business. bring to leasing located team a a them our small to team growing and business New look will as and finalize portfolio transaction Jersey

early to expect February. We close this transaction in

- basis year seven net strong charge-offs Asset were points approximately year - is for year were the and $XX.X approximately and points quality quarter net million consecutive basis our the ended the the points. XX. were XX charge-offs for $X.X charge-offs for year were Net remains for fourth for seven being below December quarter approximately million as the basis of

at loan increase nonaccrual million one has December but $X.X C&I in issues our the to was front, there due experienced XX. still cash flow On category which for approximately an is current

term to in short borrower the the the quarter. with resolve this working are first later sometime issue in expect and We

is the CRE two largest charge be next for totally than expected to in nonaccrual off of our resolved the front, CRE paid approximately and off the be - $XX loans minor will a On weeks maybe million XXX,XXX. less with

a in community grow service from significant move bank as process and management full have diversify bank. continue as to risk our made and portfolio a structure We credit we we our investment regional to

the XXX million process functions with as together our streamlined approval to base. service XXX credit has the work almost and million, Net increased will business and to growing income X.X%. be expanded X.X% analytics our from margin interest XXX to points previous quarter basis from and customer data Our loan

on momentum who Our going the results increased to $XXX think in conditions the have and market Burke I’m down from which it million total loan-to-deposit market year quarter financial for more turn the reaction at year in for XXX% over and in the Sean to the great resulted I give we ratio going to now will color XXX.XX% little deposits The quarter. - end. the to

Sean Burke

you, Thank Kevin.

third per quarter compared share points to Net the $XX.X fourth million expanded as loan result $X.XX compared $X.XX basis to for and and higher three share for the third As Kevin per mentioned X.XX% of yields core a net quarter. income was our cost. margin quarter the liability to or interest composition

million. closure of totaled and noninterest $XXX.X workforce Excluding million, branch $X.X expenses expenses reduction

core Our ratio declined in from the efficiency XX% to third quarter. XX%

Our $X.X loan for in provisions to the XXXX. million QX loss compared million totaled QX for million and quarter of $X.X in $X.X

in XXX% basis $XXX rate December at tax in as lower XX.X% our while decline XX% ratio Our our effective or resulting X% loan an $XXX core XX. annualized to from XX% Loans effective rate on estimate. quarter quarter full-year than deposit was during a deposits increased of the million million grew for XXX% our to in came the full-year

to At stood and ratios XX, asset nonperforming X.XX% the quality capital Our to peers. continue previous strong allowance basis trends be coverage December charge-off up our points at quarter. asset three from relative ratio

Next, XXXX. for I'd to some by like sharing conclude high-level guidance

expenses We the loan growth to in expect approximately estimate is which area range. XXXX. X% We in to X% $XXX million XXXX the flat

in interest XXXX. range three net year hikes rate We expect assuming that full margin X.XX% in

expect by our BSA out, results XX% Then lastly tax remediation, our negatively and decision structure. impacted streamline to in be We area. our risk rate infrastructure tax in were reform a and summary, cost to XXXX the build

decisions well heading will we confident into off beyond. XXXX these pay in investments leave and Although us positioned are and tough

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

Kevin Cummings

referenced the the had have We thank portion monitor year we of risk. our company we law and expenses to tax make our XX the to in a Sean, a had well some economic management our change assets Those progress really good as our in XXXX, infrastructure over do credit A including to behind we decisions as to year to changes was year but It we do as in company BSA the activities enterprise positioned to significant adjustments risk of resolve crossed Sean made to items those Good. issues. nonrecurring difficult momentum to our just continue significant during professional to, for change and stronger and finish are us these have we BSA markets. you. the XXXX. billion that enhance

the time. business it this loan of closing excited It look progress our been to jump bank business a and to gives we and at production Our C&I and good will joining is in for team The start is us. greater loan team leasing the portfolio. a supplements give us for in The is in forward forward it is has local moving our diversification our XXXX be XXXX. transaction good us niche this

adjusted the to Our X.XX% tangible quarter. quarter December return on in in X.XX% equity from the increased third

grow manage change XXXX and XX to and until we organically expenses for need continue the continue on The can year. enhance to are in law us. equity. to operations improve control issues operating We the our return approximately behind our will our We M&A prudently earnings leverage to and BSA million grow the capital will return to our after tax

on dialogue have with We discussions continue to our the and is matters positive. these regulators

isn't, not BSA be risk will optimistic management it lack cautiously and the be of but XXXX are results effort will that group. for it team positive We if a in our of

good be stewards capital. to continue of We

is quality asset strong. Our

EPS Our two and over quarters. $X.XX the efficiency in the $X.XX, has quarters gone last been three last down our $X.XX and has ratio

are positive Our quality all interest in asset trends we and operations, net see metrics positive margin and headcount, fronts and trends.

engaged are making their customers. that passion I'm their community it employees day. bring jobs every and the with their of proud and they to in difference the efforts Our out

continuous goal on improvement long-term the with for of creating our the value Our of shareholders. teams are path

strong franchise marketplace. is Our is unique and brand growing and the our in

we last thrift the the significant country. transformed markets the on in a decade, in community attractive into regional Over most bank have

We’re and will burden. Any starting to relief regulatory years. out issues its to hear the with in things that of corresponding positive coming momentum regulatory respect Washington enhance our on more front

our serve bring here shareholders management is to long-term Your value. and team

call performance XXXX. We have you look to open performance to the like now in continuing your up very I'd I to support forward Thank and and thank you want for of questions. history much. to that a

Operator

[Operator first and Sandler Please with comes question O'Neill Fitzgibbon go Partners. Instructions] from Mark The ahead.

Mark Fitzgibbon

could acquisition? some little details that on wondering I'm us a portfolio giving pricing the start if of and maybe you by leasing

Domenick Cama

to yields over we're the had in loans somewhere bringing that The X.XX X.XX range.

Mark Fitzgibbon

the par? you And loans bought at

Domenick Cama

discount. slight a No,

Mark Fitzgibbon

what that is And said? a it, you just of along seven people came total with

Domenick Cama

Yes.

Mark Fitzgibbon

growth linked Secondly, loan it quarter quarter, something. and this from, any was Where as purchased originated industries is look like are up C&I coming X% really was that particular driving or that? it growth strong that

Domenick Cama

stuff originated That's all originated.

to really hospitality but a result. build spread SIC team continue in is that We We number done the to We've medical some of codes. that solid produce area. concentration see some real and different starting team across it is

Mark Fitzgibbon

And mentioned think you sheet then Sean was you're about XXXX. I growth thinking balance don't how that? for curious I

Sean Burke

Well range. the we to the mentioned driver is I X% biggest loan talk expect growth Mark loan there we growth that about which in and did X%

Mark Fitzgibbon

Any in lastly on I municipal municipal there that’s happens, what will of of at or plans if the deposits if on comment does bank Senate and kind New could State implications your business? sort it think Jersey’s the for a to then least of it open progress there. if are how bill you that And you comment wonder the

Kevin Cummings

while. It’s a not been out progress. there how We’re for sure going it’s to

you New Massachusetts white paper when has campaign. Bank North say it in governor it’s in is I Jersey. quite it there Massachusetts, about on looked his the country know one is at compared and back a Murphy does conclusion it bank on white in Northeast in at good of the back paper did - to the in the looked here and than New throughout and that XXXX the that in might Dakota. this was it talked it different and what that is XXXX happens goes And And idea. North Dakota not what Commonwealth a that

senator Liberty was Congress and I and night think a report community significant out senior discussion to doesn't of state be it’s impact with a to the last lot at was event an in I will going in It here Center speaking New certainly at have it. Science Jersey. open on the banks he political

group together this, with the it and have We’re talking focused on and New Bankers' that’s Association working talking with Jersey a about it.

very but by team So and Bank, on we the industry and to in be by been look Investors certainly as monitored by early it’s going the we’re it. at here executive it’s process, forward closely the move vocal

initially some discussions money. in most Jersey because the get don't state of they’re we've communities had, I New the think state Jersey State of banks any banks headquartered New looking funds the and at in of

So and that of it's issue even all to bank national some the players. national an that's banks for

it $X very making it's the minimum about and talking certainly over increases new number like monitoring tax don't one discussing marijuana people of are a they about priority they we’re the So acting think legalizing things year. closely. administration; have I talking the other that and wage. They're million the for

an monitoring that not but it’s long way we have closely at top in game. So administration, priority think to the a will I the go are early has it we’re think threat it I of impact, and the but a certainly very and -

Operator

question Please from Gilbert comes go next The KBW. with Collyn ahead.

Chris O'Connell

O'Connell Chris in for Gilbert. Collyn is filling This

and kind So you lines the as ratio growth guys the do all? same loan that Mark’s you question along going to deposit managing are see the at on balance how growth deposit to loan to that of support growth outlook sheet

Kevin Cummings

Chris, and pretty ratio projecting for about just deposit billion deposit XXXX closely. we're $X.X loan obviously the in managing we're Yes growth to yes

Chris O'Connell

the that are you just to check portfolio in accounted guidance double your correct? purchasing, recent NIM that's And for guys

Sean Burke

Yes.

Chris O'Connell

kind those of plan and operating that’s with us going quarter the just expense through trend the And through of kind consulting then then or timing for the cost the given kind save fees in BSA fourth can of of came full the the you expenses time? walk AML and and guidance from expenses professional towards

Kevin Cummings

is our they're in throughout however, be related think the pretty quarter of even year headcount and do results. to a branch first a first portion as Sure, closures in to the still elevated that the bit expect we quarter I them

in So, see base to and expense in the reduction removal we the a we’ll But as have expect Also there. we quarter, do that second QX, we quarter be snow our costs wintertime move through pretty do the level. QX, QX. first that some at looking QX inflate

Chris O'Connell

it’s previously. that of and appetite appetite a the then than going the forward? finally on just us lower kind you can for And your that through reason buyback for little Maybe this walk or quarter outlook

Sean Burke

we to we to think determinant stock a Chris, of book the look sense in And we buybacks. used are think to we our us max max as out makes - where it at a stock - we've XXX% back. buy tangible I obviously we order value a of should tell where on range XXX% of book

forward. dividend early book of in going we the trying our extent not We the the So tangible fourth and and increase above I then as during fourth quarter. impact the we’re trading ultimately the the still buybacks to analyze quarter a the stock levels way which those that manage did to to quarter, did is think the reform in on EPS stages during tax capital use on of

additional have on right will buybacks. analysis that where the will price to do going some maybe so tell forward And us

Operator

go next with Dave The from comes Deutsche question Please Rochester ahead. Bank.

Dave Rochester

hike of it could you decline NIM, what any were able done guys what in if control great. checking you’ve deposits actually the down. and decently the like in of to terms Was with that deposit On post costs be talk that you more just cost XQ overall drove wondering about then look repricing will

Sean Burke

that's to C&I build line non-interest-bearing line our Dave item build business. checking that build continues to as we continue our item a we

XXX know that in we CDs we a you in, about ran the XXX. third at million bring quarter bought I in to think campaign

do rate campaigns to no During had the active quarter campaigns to fourth that. high we

negotiate deposit We have have any not for campaign we I rate we quarter. fourth rates or with some position the been - But mean in here. or certainly to a moved rates customers have not the municipal customers deposit campaign to active large had high in part, most

Dave Rochester

doing trying was thing one on work the you that guess campaigns into checking. CD cross-sell were I you to following were

part there cost and So the seeing quarter decline? growth driver this then of was that that the and

Sean Burke

in that driver. is the happening, bearing we've it's grows driver grown we’re cross-selling deposits I that essentially it getting the primary I so C&I - bringing would them. non-interest that's of but accounts say primary and would we more non-interest-bearing The continues wasn't campaign that say I that for our business fact more the it's mean as the C&I and to accounts ask business checking checking bank.

Dave Rochester

and now of guys CRE here multifamily ones And curve then uptick middle in this five pricing at the you point? with the where

Kevin Cummings

year Multi is X/Xs real X.XXs. priced X at and estate X five commercial in and is

Dave Rochester

and X X.XX? It’s

Kevin Cummings

Yes.

Dave Rochester

on So wider then securities. okay, just a and bit little then

Kevin Cummings

Did wider or… you say

Dave Rochester

wider bit little point? a guess just I a Yes, X

Kevin Cummings

X above It’s an rates. multi-family the

Dave Rochester

And at these days? rates reinvest then securities do where

Kevin Cummings

X.XX.

Sean Burke

X.XX No in X.XX actually the higher to we’re probably range.

Dave Rochester

Great what you then year December impact in baking for guidance this NIM the you and the of thinking are how then hikes for just that And given in are on hike. XQ an much X.XX? NIM in rate

Kevin Cummings

have hike, into a expect first we're Dave. pipeline. basis you multifamily it building it's not our what we the rate of our as commercial three know probably margin was provided In our we guidance lower order hikes that we So today going we had was year our to than And where compression forecast and it rate quarter the the just Q points. or built pricing X in back the to slightly bit and pricing - X

quarter pricing every for rate so is that. there quarter that an rate let's through has and of basis to from So to it isolated off, come so the in as our increase that believe then small move impact taper should call back it points a just magnitude first gone to X that I X related but after up a Domenick will and the is impact first mentioned, that really

Operator

Please comes question Stephens ahead. from next Incorporated. with Austin The go Nicholas

Austin Nicholas

maybe to answered the purchase can see nontraditional we questions type assets? on forward and your my purchase looking this that is but just this of strategy leasing of have Most something grow been ongoing to

Domenick Cama

one is There say as to was that down a of New team you ticket the strategy. have way here a like yields assets is this to would going range. them call the Jersey, not business. purchase small is are particular and lot them - this This C&I The enhance main I'll portfolio. continue looked items. good and to purchasing I know on not done at of X% a driver this in based that in We've really Austin be but number bank a turned are, was about X.XX% our to the

was lot bringing the there main a teams growth but there enhance an we So of driver based, of as way in this lot we good simply that opportunities. XXXX. over are Again A this so especially selling core C&I was the any for way with just a locally to some is a it's customers don't experience see business. think

you used it of Kevin what the and term all or really some - So driving, excitement just that's know was motivating creating about.

Austin Nicholas

color in And there guidance, made being us assumptions then prepayment Sean maybe fees? what - on some NIM for is give

Sean Burke

are an that's so we're and out fee line haircutting item generally moving forecast assumption be you prepayment know our too don't So always we to forward. and conservative as assumptions where want aggressive that we

that going Austin, be is going in we too our into much to into say is getting without saw that XXXX. So assumption than I’d detail lower prepayment number 'XX

Operator

ahead. Preston Please The Piper next Jaffray. from go question with comes Brody

Brody Preston

for accounted to purchase that is, leasing is growth X% X%? purchase growth loan with your the back the in that the going year to outlook overall for Just C&I

Sean Burke

Yes.

Brody Preston

maybe the So guess more of what I like organic range? in right would - more growth type is so be X.X guess I the

Sean Burke

right. about sounds that Yes,

Brody Preston

maybe in bit the for saw NIM like the year with I NIM you it three that's we a overall rate little rate three was this the than - year assumptions. hike lower you past had said And which I hikes. contraction X.XX seems guess guess guide the

more neutrality. sort is So be on the emphasis sheet of of balance I driver largest implies more guess going there, C&I? an to

Sean Burke

to emphasis is and there and at not the experience looking component on C&I substantial drop I’d going off there's but XXXX. in Partially they another were that we're into drop same it. was that of The XXXX say fees, prepayment a part XXXX

XXXX from to drop significant prepayment fees that contributed margin to in a was XXXX there So decline.

Brody Preston

to bit And little guess more little historically? a a you the with little with I a C&I, bit emphasis expecting are - more being increase bit provisions on than

Sean Burke

wouldn't terms historically they the increase what's number and figures of disagree Not have street forecasted. the seen that the in forecasted with by have to and relative I analyst there out guidance community I

Brody Preston

and you XX And multifamily, X was said correct? for it

Kevin Cummings

Yes.

Brody Preston

fourth Is quarter? that up from you where guys flat had or or the down it throughout

Kevin Cummings

Up.

Brody Preston

you So seen. yield guess pass to up through the we've through ability some back the curve in are that I seeing

Kevin Cummings

Yes.

Brody Preston

better And in I a it? in but XXXX you volumes quarter is to up month maybe, or far in fourth the how first seeing market experiencing transaction so the shaping you said, guess quarter are relative into are the about

Domenick Cama

You know up. transactions are

his that opening in remarks pipeline the see I meetings, deals so think number through. and our I seeing Kevin mentioned that are volume we loan the is in it coming there. more up committee are

answer yes. So the yes, is

Operator

The Wells next ahead. Please Fargo Securities. Jared Shaw question with go from comes

Jared Shaw

as Just beta growing deposit C&A we just the because given year, the you're as yielding are at on asset it mix just you're wondering side? of assumptions lot through side, on the the leases, strength compression and looking and loans outing of like that of what the margin, a higher what liability seems the go for the some deposit

Sean Burke

beta total around all XX% liabilities we the deposits. that side, On forecasting the in use is and of

Jared Shaw

DDA. the Including

Sean Burke

our the on but yet Well to that's there is in… beta no included guess non-interest-bearing obviously front, I that, DDA

Jared Shaw

bearing deposit balance. That it's XX% balance, just is on not interest the total the deposit

Sean Burke

those of of look to a core to as shift through that shift bring mix largest here. to everything deposit as in we non-interest-bearing base our becomes do try The deposits lower cost continue component we

So well. into that will as factor it

Kevin Cummings

build provide we the but the primarily truthfully lower than forecast, comes that while in and services what it is of that because use that and book, higher use reality of beta municipal And we customers Jared just forecast the it's deposit we to number we them. our do a on higher beta a relationships we the deposit with in municipal

supposed we than stickier tell a in be we be, the forecast in but changes cost it's to the conservative rules try it's bit way there. to you So

Jared Shaw

the what type seeing then leases of that was hospitality am if the just that And this, portfolio, healthcare general on you're of said and growth C&I I but the Is those? sorry or you you're leasing that is are that speaking medical?

Kevin Cummings

vessels growth, the general C&I general over is large transportation equipment It's XX% trucks, was transportation, they leasing just marine road that's the primarily railcars, these trucks, capital business That of related; businesses to critical what about do. Jared.

Jared Shaw

terms was a before that brought that from? in And where that in entity portfolio an of bank independent was you or portfolio and team in

Kevin Cummings

It was portfolio. bank in a

Operator

comes The Point. go next question from with Laurie Please ahead. Compass Hunsicker

Laurie Hunsicker

follow impact is Just the wanted to margin on margin, the act tax net back what interest the your of X.XX. on on

Sean Burke

There from line. portfolio much tax none really municipal flowing that's that through really interest and there’s we margin don't that have perspective not is net security a because

Laurie Hunsicker

your was question, how BSA of this just then similar X.X of fees that on quarter? professional And much

Sean Burke

million. X.Xish number I around that have confirm X.X in believe, but me don't believe the I I front Laurie. have to it’s of I'd

Operator

go Keating comes question Please next from Barclays. with Matthew The ahead.

Matthew Keating

that growth? Thanks. an that a billion you guess achievable that the of the given are X.X composition of loan that is in this and introductory back first growth do half of a built experience, about see growth, question the loan two perspective the less from a being was bit of how ended where with My going remarks referenced And what confidence tale year. halves to is in second year. you of gives your - the I somewhat most half growth loan how organic growth your you you XXXX that

Sean Burke

think quarter up to the this growth. building portfolio we drive and continued will residential to Also the Matt is of decide back commercial C&I than the was the pipeline drive loan our going we’re going main it's that some the the continue offset during loan we focus significantly think up to XXXX, will strategy the as did so first add of it components of the be XXXX, is just portfolio. that second that we a a growth. on level the grow business our leasing Also year to more purchase in residential The know on reduction And our you way of for quarter as side. portfolio to on

Matthew Keating

any you’ll But it's the loan some like And the deal early in balance growth last year that growth? versus predict internal about how of expect being certainty with see you growth to hard least that or are more progression and would closes I you quarterly know this quarter but we’ll February. at thinking have year

Sean Burke

will I a be trajectory. more balance think it

right that on the bump we think the a You're quarter. first should quarter the But pretty bring fact going to the in the distributed we’re year. leases have for be first throughout evenly we’ll it

Matthew Keating

its final of are taxes earnings be statements around put would million mentioned that missed you portion going or business? just help you my And but by be, has know question year. any any this to investors that XX that Thanks. have may around this base in I out might reinvested its employee

Sean Burke

said that, this in a we initiatives year, made at that have of announcements. I this that will we are you point currently haven't of any early Yes, evaluating but will the public tell part number Having made not introducing different public. we those we consider

Matthew Keating

Okay. Thank you.

Kevin Cummings

for was about and X.X regarding almost XX.X million quarter one just to fees. BSA professional year. Laurie's million It fourth the for the the comment and Yes, question

Operator

The next go ahead. question Please comes Koch Investment. Koch from with Don

Don Koch

system, a on of you you I as and Kevin sort to how use the you close And component your branches, questions. determine or what's a us sort of have industry How What's acquire of view some confused future. of how deposits how this rest you is focus have branches? share three plan on. quick do what's and these branch to the use, the using give in some - going to as branches reopen and or plan your very branch branch loans. market are is rationalization if banks to focus Can you your or sort you you color how taught on,

Domenick Cama

I Domenick, question. with this maybe help that can Don to try

a very aggressive any in a it’s had being that's market and past the into have new just have we enter that’s presence. the here difficult we branch Northeast have of been know And that branch strategy because We don’t in to where you market. primarily fact expanded new that the

other we business case County so York bank decided our we felt expand would to as was that new we rationalization is that notice we a the there well for we you what are strategy into geographic our into we that felt those and Having and that our closing markets logic New within that, And And rationalization part consolidate branches as that any it and losing we and main did was recognize not safely XXXX six in being example the Long Jersey specific those in could Nassau the when to our action. branches Island. offices us of that necessary use those people or those on And said deposits offices in branches branches put safely. distance Suffolk mean I so New close brand. took into branch boroughs, recognize - we in to from

X X can closed will. Because within online. expand or that each we are to like just we As we reason to that talking each to to forward to if consolidated branches a be do other our what our their build are give something actively miles want want we capabilities. online continue capabilities about banking of we're mileage And online continue we of go very customers to build believe of that branches is the that is to out way start we more out you other, and miles probably today that is to able that

- so read and X be closing because an other as that do really more branches visit branch won't miles - other I people to have I that able this believe and of each will day to within having a need give do need JPMorgan saying article the I who’re to that the said have put you and don't often business who online issue, other still closings room people who out to in order place presence of or going may have loan through be can't basically questions business. to some kind go an or that chat electronically answered a a or may So

our we that for we capabilities probably correlation be branches and see continuing And so with move as forward to will develop less us customers. online will in

Don Koch

on that approach those your back New light sort you of explain and medical, the on of seeing are focusing you're coastal any that also into Jersey? parts manufacturing said coming You

Kevin Cummings

manufacturing come seen yet. Haven't the light in

team the have homes. do and who we doctor consortiums, doing people well financing six out there and a for me of specific nursing some team are add hospitals a On we’re medical let focus

So it's niche focus not for we good think a but us. business a it's really

to continue things coming we so And out see that some positive business. of

Don Koch

it is had And shopping you was side last of down. you center problems, area center you a big is risks Northern of sort where closing you I there shopping and quarter guess contracting are still that sort and the you that or improve a Are Philadelphia or do having shrinking centers sort question, mentioned seeing of have these retail your change of last there? issue

Kevin Cummings

others. I County talking center it's it’s I that think shopping you're in County think Kmart in well and limited the I'm Cape The entities about is retail to - May diversified. we Cape we you remember it's think County. the New Jersey like known not this do it, that the to And or I some don't May Sears we But it Southern much Atlantic do pretty towards have not - we have exposure do - extent some have at know of is exposure

seen into in can't and it. good reacting that and said their businesses of shopping They're not where business any to restaurants we changes or people who buying service yet. to centers. feel they're have We more as bringing talk we’re retail things now market our are are buy we still people in portfolio obviously And Gyms online. as people online. developers that establishments the the in and more and own issues Having finding what the about pretty that,

I'm shift say the to but out - borne on retail can there, is be you well a whole by happy there it that will So pretty loan we’re and nonperforming in doing space. going our ratios

Operator

go is The with follow-up Piper ahead. Jaffray. next from question Preston Brody a Please

Brody Preston

NIM Just income, of a guide correct? X.XX is of that quick inclusive follow-ups. couple The prepayment of penalty

Kevin Cumming

correct. is That

Brody Preston

de number you’re the net have six openings? that on but you to and of the of then down going previously with what that quarter I And closures, had, in branch on. plan closing open XXXX Do the you branch novo other the you know somewhat know branches I guess any strategy a you first

Sean Burke

number I is think the four.

Brody Preston

being branches opened. new total four So

Kevin Cumming

Yes.

Operator

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

Kevin Cummings

Okay, I'd like today. to participation thank you for your

plan. on soon. year the analysts conferences is Talk enjoy you looking finished momentum, the want Bowl. Super forward to very We the thank look is Thank good and also. I its I and to of in to strong focused call participation, strategic I February. on you for for with think two and you XXXX couple the quarters company seeing you participating out scheduled strong for your about

Operator

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

You disconnect. may now

Investors Bancorp (ISBC) 26 Jan 182017 Q4 Earnings call transcript