BDGE - Earnings call transcript Q2 2020 | Dime Community Bancshares, Inc.

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Operator

Good morning, and welcome to the Bridge Bancorp Second Quarter 2020 Earnings Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Kevin O'Connor. Please go ahead.

Kevin O'Connor

Good morning, and thank you for joining us this morning. call CFO, this McCaffery. on joined by John our I'm have our will as and Today, scheduled we XXXX. I in discussing close the Dime quarterly sometime to merger performance he and PPP be performance early Community, our well planned at as To share high-level the like metrics to quarter. I'd begin in with, some second year. net of for to last $XX.X growing the million almost Net quarter income million was income second or EPS an increase interest $XX.X quarter of $X versus $X.XX, with million, of experienced total increase $X.X last We in billion or year at growth coming in positive assets period. a versus XX% same increase billion, loans, the largely to Significant million accounted growth loan XXXX, by fueled in $XXX of total. which or XX% was the in quarter $X.X for compared PPP our nearly second of loans resulting rolled non-broker non-public increase. million these in $XXX our deposits, into of an Many

on net loan and was net volume for $XX.X XXXX. second XX of quarter. points increased was of a low quarter's income a This $X.X due quarter interest largely margin the pre-provision earning million rate. quarter to loan This liquidity Pretax, was X%, the increase decrease interest or rates compared our interest X.X% income of prior million decrease portfolio, to higher basis versus PPP an -- deposit lower and

our As but statements drove the release, by it evidenced our impacted only second activity. our financial business results by affected materially were quarter PPP and not program, as initiatives

center again, number only only #X Long Chase banks. money effectively on for us Our Suffolk in saves. issued behind JPMorgan job X placed strong following actually originations performance Island, national and loans from We're County

Choice of businesses bank's to as X,XXX Island. Bank long-standing these across BNB, lines, also the importance new and Our a business customers reputation to Banking and by via give named try Long these merger Community. customers overall brought leadership texture was BNB on BNB as I Awards Along I Long value a reflects PPP the our validation of Island potential make Bankers. bank quality. with points perception again and top market bit for to more survey customers This the Dime of position a

you those know, strategic who bank the priority our of has following an As footprint have ongoing for BNB. been been growing

incredible achieved and over based to is XX largest very opportunity acquisition, the create on organically years, through bank the both community Long we've While past growth Island the excited.

found and have alone, Ken perspective there Dime partner an and team. on ideal case based complementary We From compelling strategies. we in a Mahon business strategic non-overlapping Bank footprints made is our his a and

been for as with positioned shared anticipate to and practice New local aligning what deploy higher to penetration our which from success has across prospects positively has effective the to and as -- strategy focus walk This through been branch BNB businesses. for hugely similar expanded leveraging sales BNB, to we branch more impact you In a Nassau John which on we Queens, details hubs lend results. western for City are York second quarter us boroughs. addition a highly branches in perfectly successful our now communities, network their around Dime's will

John McCaffery

Good Thank you, Kevin. morning, everybody.

for noise. quarter the $X our Bank their April. the of many of the during say, to loans. loans tirelessly worked the lines close various same factors. first a we in for had abundance those balance a reasons. week who had an of the first quarter my began than more the numbers billion grew to until caution, down At Every in funded drawn part paid as of I'll customers down our quarter EPS our were time, volumes sheet pertinent Needless little PPP quarter. walk said, to Kevin As substantially the through best during funding We $X.XX, you do that second

X%. PPP, close we Excluding loans had Deposits quarter. strong excluding during a loans many million Year-over-year, million or fronts. in originated the on showing $XXX $XXX to loans, outstanding PPP grew

because were accounts up PPP year-over-year. XX% accounts, loans these DDA First, the through funded

PPP deposits of in excess However, up are all funding.

$X downside the a public size million including the past the quarter-over-quarter. was the funds to This as yielded the increase to in translate close year. higher customers we Net get -- over sheet. fund will balance did $XX NIM amortization up owing collected. year-over-year interest of added bit. over this We the The fees X.XX% to close not we've of Public in new in in loans $XXX are into million million the quarter, of income PPP up was the

had points, points overnight the basis margin earning cash XX depressed XX These factors $XXX in also million We basis respectively. and two X by only basis points.

we rates deposit rates by our market over quarter. deposits first trimmed XX We the of under points our down, As basis came [indiscernible]. continued cost or to interest-bearing manage

buyers, We of will felt prospective an with well income, our the held lower the assess loan prudent deposits continue on in serial for We rates this get additional non-interest way discussions was writedown negative negotiating as out the to move given situation forward the On the this did our ground We take we to to opportunities for as we as environment. sale. first. with one borrower.

customer especially NSF Additionally, fees. is the lower downside fees, to deposits higher

to May to move All swaps, expense a SBA quarter-over-quarter Non-interest payroll incentive the origination taxes a lower lines a growth. slightly sale contributed expense we expenses. was versus economic related Offsetting of C&I driver of was Other ongoing of the medical that out During due release attributed and to since the credit aforementioned our million, this. and the compensation classified charges, in held the during million the previous of provision and There flat was the TDR. deferrals previously $X service quarter this non-performing million to also decline one And to loans I'd $X.X point shutdowns. credit, was with a insurance the the to that in past seemed down Addressing in levels increase accruals, of combination on compensation $X.X million title, loans was to business loans low flat. continue expenses. there The quarter, expense. quarter. showed so these for quarter quarters. of along was was drop higher quarter are of relationship margin, the look the are pay we pandemic normal first for for and to trend like below back $X related gain that lines be to impact forward. performing point including as during down Compensation

moratorium million etc., loans Overall, our on with by in the real with as XX% crisis. estate. XX% reached As certainly $XXX weighted approximately payment LTV loans we is asked industries are in eye than for these their with current retail, mentioned original XXX granted the of office, have XX% in LTV. $XXX maturities, the we're risk an agreement loans' backed during $XXX million the have $XXX only Of accordance $XXX,XXX now release, Of million loans, paying XX-day moratoriums are million hotel, average totaling the have such extension. keeping greater on higher an that loans and

rest We a are will over targeting I call of the XX.X%. rate now start back the the of year to turn tax the to for Q&A. Brandon

Operator

Thank you.

Please with from the first Twerdahl begin question question-and-answer comes Alex now will [Operator Instructions] ahead. go Sandler. session. Piper Our We

Alex Twerdahl

Good morning, guys.

John McCaffery

Hey, Alex.

Alex Twerdahl

getting direction? returning that of the in I probably kind portfolio the to terms each the going kind of the roll, the And of be to of expectation guess, is in when August? those remainder are it in what ones should in apply that statistics deferrals. loans you the possible any to of deferral wondering, of the Have noticed for were you appreciate types loans extensions ones were that terms just paying that on on consistencies versus the I'm gave just I

John Mccaffery

Sure.

ones actually have are and So, of that of are in extension. estate. asked large, have Also actually we have already asked multi-family and extensions. which haven't portfolio concentrations, the the that have, are of that for the in matured, space, those for loans real portfolio non-owner Taxi greatest that come parts some and also still the for asking Medallions extensions yet for the By the C&I that unoccupied

So, the from them extensions, additional that from have for haven't that maturity -- date yet. loans are reached that of million loans even $XX portion some haven't are their those asked of

would applying kind that's of percentage that heard we've of from. [Indiscernible] portfolio most just the have $XX $XX board given And extended. come that of additional really till asked be million -- expect moratoriums, across the be through we to million now. in So, an to

Alex Twerdahl

was great. then expect Thanks a for that, couple of a quarter, of CRE. multi-family, And just the you for non-PPP categories the sort pipeline kind loan the during I we grew what continue the that the And built should noticed through just maybe that. Was actually we Okay, elaborate of core maybe Is of trends can quarter into of as it rest loans is that that? year? closing? on

John Mccaffery

Sure.

them got quarter. lot been pipeline the in they strong. who other focus loans said, us. and banks customers PPP of customers PPP move lenders they from now just but do There looking weren't So, customers business on still with there -- became coming through those of closed. and quarter. were for were credit our before The are during what had a that their the recently We the last pipeline over A kinds program lines of the to before in program has the big from the is I done business that

really we the distraction. quarter loan X% a X% but rest we was for of targeting overall -- the do of year, So growth of are kind to this bit

at strong. But credit, going digits a forward. to we bit still the So, the Obviously, mid-single above you look as the is little assess these mid pipeline rest of as year. going different have know, a to maybe loans we're for

Alexander Twerdahl

with the exclusive Okay. of forgiveness what And programs? that's happens PPP

John McCaffery

think are of be to dollar-wise, some just People can't will million blanket about about a now, Yes. talking there $XXX but coming happen. only loans for numerically, going forgiveness suppose the it's I our I loans out yet. actually who a apply if should what's Numerically, right million. $XXX,XXX, loans. high soon. percentage one on of which don't forgiveness I of mean guidance $XXX we know be -- about these it's below we

Alexander Twerdahl

margin, flat and relates exclusive to Okay. just then which final be PPP. liquidity Great. the of the as question seemed a it And to the

and look you Or core year? ability to of the of compression deposit forward kind it continued offset the the reduce costs on loan over you is rest As do repricing side? margin costs, enough and some funding the to anticipate

John McCaffery

under will be it pressure. think I

have basis down but estate real think portfolio the necessarily pressure you I repricing loans, -- typically in, coming And prime they in. we'll don't and And They there. where X-year of to the to the as the those loans that, are, if come our treasury points. want along state refinance -- as that with some on LIBOR puts they goes XX the rate kind the reprice repricing to whatever on deal. of floating

a have be So impact. would positive an It that would one. also

CRE. of pricing really near holding -- the been on have and competitively and We kind holding multifamily to mid-Xs pricing

happens. what see let's So,

Operator

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

Collyn Gilbert

John, the be question PPP you, loans, what for just you my are from on contribution the to the first income anticipating overall program?

John McCaffery

income overall The contribution?

Collyn Gilbert

Yes.

John McCaffery

-- the so right guess, up. So, split we is program I have now,

$X million million I think interest it's per month income. it's in $XXX,XXX amortization based $X.X about and amortization fees like and upon of at ballpark,

Collyn Gilbert

And uncertainty, on purposes, a know are Okay. you doing lot do and assume you helpful. doing what All on think? What I right. we of schedule guys be for for should just we modeling the maybe forgiveness those, That's but here. should internally

John McCaffery

$XXX quarter the forgiveness I said million. of year. itself, I the like balances, don't much see kind I of blanket going only -- first until in I next So, of on on which I to forgiveness is lower way the our forgiveness -- $XXX think think maybe million get we're of

really on So that. of I'm that's what we're about kind of given thinking kind nowhere

Kevin O'Connor

there's of customers. out there certain that do actually a this So, of for round these proposals second

see be to interesting to going it's how out, that too. So plays

forgiveness year. not this would any expect So I in

the of most forgiveness in think I XXXX. happen will

Collyn Gilbert

you sort And us appetite Got just is your Okay. now? for in John, go But what of your how you lowering just then, apologize. just based outlook sorry on of right you maturing you costs, terms deposit strategy what the and think kind it, I of there it. and can liquidity what's if just can is covered lower much remind on

John McCaffery

Right.

liquidity So got a we well, lot. wise

have figure is I obviously, portfolio. existing still in PPP put out have still that into DDA trying interesting, high. markets money the money is into put We're accounts. So is fungible, it's how people to much and people everything mean,

a we lower. that We there's there. think of So still did amount sitting still money substantial

and XX that the the do do have basis really is was times but are large it Unfortunately, they it points. from we tranches down already XX may But were basis kind time case That's of all of couple anymore basis between it branch there up will big some how on we of let don't of it we can basis money, between of points points accounts lower through. that an a DDA of a then points in book, or is be lower We points customers kind relationships go We at not step know more to us on than XX we that. that. our kind room We have on XX points it. think, CD managers of they back But because still points, XX we've of do I way of basis done XX and ahead let may look points, target, all have and some. repricing and push basis we XX have. XX costing we -- basis paying -- so much our can't individual -- some we quarter-over-quarter basis issue. track

Collyn Gilbert

Okay, The expenses you had costs. about the amount one origination before John, all And other it. -- to that the sorry, loan -- was Got loan to benefit the housekeeping quarter? item right. actual indicated, credit. in dollar What deferral moving on

John McCaffery

how -- drop it did was what was the... by What or much

Collyn Gilbert

What was Yes. the...

John McCaffery

$XXX,XXX. about dropped it Quarter-over-quarter,

It second was deferrals versus the quarter to quarter. larger start. First $XXX,XXX

Collyn Gilbert

the Do number? actual gave you to don't in I if know the you have quarter okay. Yeah, [indiscernible]. it happen first

John McCaffery

don't I actual [indiscernible]. the have

Collyn Gilbert

shifting all then credit. just to Okay, right. And

the trajectory about quantitative So, increasing and just from you're what from that will Kind decreasing or of and reserve the parts drivers here? of how subsequently it ratio of or provisioning are be sort the reserve thinking qualitative of reserve you thinking about how the the of here?

John McCaffery

I guess, additional upon to going depend it's shutdown.

coming we York, kind New are to we York going coming paying country. the are more again, another moratoriums, -- to a better say quarter, the New at be able point rest to going we of have of second to be to most think their-asking for since is doing than our the start loan going think of think going bubble Next seems is at up -- this notch, the it's ratchet down economy I I I And or would in book about be problems we wouldn't are that in individual who round, the to again.

individual names more overall be would it So, forward. than factors going

Collyn Gilbert

etc. of what I a the now? next just looking to you this, have see you do based you're what few within what quarters? book and And borrower will know just deferred the outreach, hard it's Okay. but at on charge-offs etc., determine think Do the in sense you

John McCaffery

such I pick individual say been think I were But couldn't have a But for who be Pollyanna give I would looking is relief. would I people if there names There we up. charge right that to they significant goes. around than off like until were low, dollar our is this nothing you amount. could be to of point. some, And pretty conversations as know think of are kind one now is But peers. far some up would all I lower of comparatively loan kind shake way be we'd as -- but the of I out, going

Collyn Gilbert

it I there. will Thanks. leave Okay, great.

John Mccaffery

Collyn. All Thanks, right.

Operator

comes [Operator ahead. from & Instructions] Scattergood. go Boenning Zwick question Our with Erik next Please

Erik Zwick

morning, Good guys.

John Mccaffery

morning, Good Erik.

Kevin O'connor

Good morning.

Erik Zwick

at result just comments this of I the kind growth I to, would something have for The this your flattish wanted positive about bit just back mid- on banks I'm a high-single maybe as some of the seeing think of looking of at the point, further. the me First, digit outlook in a and healthy let for curious more be, for the building. take pipeline what discussion think made very growth kind especially, year you're to industries outlook half point. little other loan

underwriting point? thinking of two, just one, strength the about where in coming unknowns curious, that is at And the given again from? environment economic kind you're how this today I'm So

John Mccaffery

pipeline Sure. reports codes. unfortunately don't I I think mean, our reports are by industry

pretty the there. there'll is there Long strong. multi-family hate to back kind I the will work. the individual based was space to strong flow, performing of in that Things this in in some pretty morning normal. coming be here properties think really certainly Island certainly, where still especially getting of here that in be traffic, I It estate upon real cash are are and kind That's out

we're So people credit I look our and I cap about I mean, what far talking to think kind as at to careful. of think [indiscernible]. be going rates, all the as are

So yeah, Okay.

money. we of about pipeline, new non-owner is also our that CRE in So got construction. C&I on There million [indiscernible] the multi-family $XXX and heels of follow-up of kind with

is think, C&I, exposure, outstanding. say not I the I'd $XXX million and necessarily

on well. haircut be I but pipeline back coming of think will PPP, kind SBA the there online. of we is as was a I portfolio kind guess some SBA is SBA overtaken set kind the strong that by The So that, of now as

Erik Zwick

thanks color mentioned? appreciate much service activity I the and or there. curious at And to in XQ, XQ? Okay, that was much I that potentially the how fee you how and of that. due And rebound XQ versus for you looking would am in to decline expect customer the balances into higher fees in then charges waivers lower

John Mccaffery

look the fees, The fee lower waivers if it what waivers of at actually, versus percentage versus we said. a waivers you the was fee

I were entirely really, I think, think by X NSF the month. in XX%, fees it's it's higher to due balances, down almost

who I there there's it. begin shortage may driving and balance activity assessed what's and to forward. spend their earnings their guess less additionally, account really balances higher on are as by going they earn that's when money be are going And checks. People analysis, -- driven our well. it's customers higher, have fees to So credits

somewhat, fee and as balances it It guess, on So drive hasn't upwards. ticking decline been we see you liquidity down go our should -- I necessarily waivers. see, our then liquidity

Erik Zwick

a of was expenses. kind than different bit mix question a in other with run follow-up rate me, well as lower for one last lower one The benefits first. of $XX.X higher million salaries was just and on XQ the and then The then category. that And about in it. Collyn's Got

for about run point. curious Just expectation rate this your at forward the going

John McCaffery

Yes.

probably million towards around back anyway, for range kind year of the $XX up million going the I drift with $XX probably think we're forward PPP just to quarter. -- would a going be

Operator

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

Kevin O'Connor

to here. afterwards. the questions to appreciate been what reach quarter. you. us driver about PPP further please great not, any Thank done a of a everybody, the things, lot Thank we've there's day. has I specific for Obviously, this you. And or If if opportunity a out talk have

Operator

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

disconnect. now may You

Dime Community Bancshares (DCOM) 1 Aug 202020 Q2 Earnings call transcript