BDGE - Earnings call transcript Q3 2020 | Dime Community Bancshares, Inc.

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Operator

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

Kevin O'Connor

you on thank call. and morning, for the being Good CFO, joined This again our John morning, I'm by McCaffery. our with to share and of some like business QX I'd cover updates discuss our the Community. Dime quarterly performance, planned merger status in We with third expenses $XX.X net positive of EPS merger quarter, million of the or saw inclusive $X.XX of a of lot momentum income per share. or the merger net $XX.X million adjusted is income share. per our with EPS excluded, associated $X.XX cost When of was rates and despite the occurred headwinds low caused driven outcomes economic positive by the by global These uncertainty pandemic. a loan These provision good due the and largely losses numbers -- quarter income. other credit were growth increase to fueled and in another by PPP, for for reduced

related this X% PPP by over single-product grew enhanced signaling relationships or and deposits the the of quarter customers. expanding our our to many of overall the million, Additionally, efforts liquidity $XXX effectiveness of

focused quarter and and ensure pandemic-related with closing our XXXX the customers this and and create have efforts in merger of the XXXX the management successful Our PPP to on forbearance beyond. been working Dime goals, new got the early certain to our We've also including for and on main communities anticipated primarily execution issues, forgiveness. issuance

the of This payment successful, with a from over the On to and ultimately diligently been just success manage as further and portfolio as forbearance of we million. credit the have credit provide strong a to underlying testament relief has front, with identify This XX% on will is status. issues, modified $XX marketplaces fundamentals as the been as including in our further X% reduced concerned like stand also of BNB, and originated. situation who discuss, and in we've this them economic of John coverage But differently deal ultimately their our through to high X,XXX pandemic loans affected to customers, COVID working now, stabilized. result the by commitment have the we of the comprise debt we've We've activity, and customers engaged pandemic customers, of fully to back low moved been our with work XXX And takes. along we by as over it's We, PPP the almost all, path customers ratios. are the to strong new and sign importantly, to loans a as with honor of service LTVs forgiveness obligations. appears process to both

are the One working been resulted facilities. million and have date, We of deposit enhanced our This PPP fully a base, of a certain it's customers they increased lending in $XXX to subset segment their unforeseen liquidity. for to almost result activity traditional us and customer us. diminished use has of with deposit these of develop a has relationships, as deposits on for

joint past and equity been focus DFS. complete been Merger has FRB on Dime Bridge-Dime week, the been had the shareholders. front, State On we primary York applications proxy York, of fronts. progress we approvals our has week, the and ongoing, been our transaction FRB and received the have, for filed our in DFS to made. filed The the await and to Last mailed statements X certain New to and have significant New

We new Dime. anticipate reminder, the December both a virtual will of to creation on holding approve As we meetings will be X. the shareholders vote

liabilities the of Secondly, growth, of an has liquidity. our eventuality substantial reducing we merger rationalizing coupled with the holdings level of continue manage with resulted and outsized securities. longer-term our to by deposit in This, balance sheet

averaged we million quarter, in third below mostly yielding overnight the over $XXX investments, XX points. For basis

term This higher almost to funding depressing be combined the of Dime. certain companies' manage enhancing the the XX points. contributed NIM had While it NII, reported of utilized of basis down longer entity to combined this by positively the impact in new the margin cost will liabilities,

most to Dime commitment in more through best for the quarter community customer from some which teams structure, than retaining details in in York. BNB and to I are is and take disruption. of working you say, communicated will will being seeing New organization results. each our third I'm concert the Based working this has ever eliminating to practices and Finally of minimizing, excellence employees. Dime, of combined create overarching organization new employees the the I goal our best the together result while am consolidated new now a to John bank finalized importantly, achieve confident more truly business our on

John McCaffery

Overall quarterly results, $X.XX. Kevin. reported you, said, as earnings were our Kevin Thank

charges, earnings merger Excluding were $X.XX.

impacts the Additionally, we time deposits quarter. to programs with various during in deposits, originations Loan deposits and growth up $XXX these government around drove deposit were sheet of up. exception balance events. $XXX the the continue in reaction Increases All categories quarter from million. shutdown, brokered see and with the to market's million the were total

as paydowns usage, However, spoke grew only to $XX Kevin loans credit line of net decreased and by due million. about,

strong fourth quarter $XX was off at starting However, was net up the loan net October month-to-date, million. that

the sell gains cost swaps million XXX $XXX an in home also with in to million unwind opportunity and of $XX took bank all-in loan to We using basis points. bonds advantage and

the pressure up did put interest-earnings was in impact the On PPP the margin, cash full increased quarter-over-quarter loans. of net quarter the interest slightly on as but income margin balances

Excluding third margin during margin. points on moves positive these have adjusted will adjusted made impact We quarter would a the basis quarter X have been X.XX%, the which QX. September, than some for margin in the second factors, lower just

Also, month borrowings $X.X a rebound have a home X.XX% loan billion will lower Service income. We showed bank charges second the activity picked the lows in of rates positive QX. most in Noninterest quarter continue effect in to our at lowering deposit reduction costs, up in markets. as September. the aforementioned on in

in a to in to on that loans X-month Merchant continue economic rushed remaining still DC XX% quarter charges changes than business title period as come factors markets few didn't is using of and are in deferral. In as model. as in will The while basis. over close the decline $X.X impact were PPP. the outlook The less retail Less sure best fee continued quarter to well. a only income on was the ACL $XXX,XXX be moratorium, higher charges collateral basis $X.X rise quarter and no than payment loan $X on remaining those to for returned. incentives. have loans for that the accruals. strong million, strong. rate deferrals Credit. we'll incentive linked-quarter than still this as on strong customers activity $X.X with and and in estate the excluding which to $XXX,XXX. was was our second to to million. so XX% for metric eastern a gains gains to the Noninterest points XX% the due Our in which in was cash during much Net All PPP The their CRE this. moratorium, ground. pay the make million are contributed credit in medallions increased. began. expense This merger people mostly is other solid the quarter points year real the ACL. work C&I XXXX social income for merger the before are were to very related total origination made and the to up XXX of multifamily order COVID deferrals, in on a in XX.X%. related its had Taxi their Provision charge-offs We Two in quarter, Taxi qualifying moratoriums basis The second positive investor increase remaining moved they partially of on to million ex the SBA XX than low maintain there's were one we having we down as majority also last We due to account to was SBA the was businesses trouble recent distancing. was remaining LTVs loans. XXs. the title deferral that nondeductibility payment The the up less was to average expenses value deferred to the tax increase as first quarters is attributable same The

tax we back take charges wide between XX% it fourth and the of the but rate of for during be over level the XX%, range, a the I kind to merger quarter the the in Chad expect will call to will turn We start quarter. Q&A. depend upon now to

Operator

from Twerdahl Alex first Instructions]. Sandler. Piper with And [Operator will question come our

Alex Twerdahl

of geography and to looks what York But be could ask to the for a commentary and you the and now an concerned is bit a little in wanted any. credit part -- strong. about, magnifying glass seeing bit maybe just deferral a which you're what Obviously, pretty on big us is you're X%. under seeing that just if standpoint, remain commentary little City progress, maybe on color just you given It's your give across some pretty bit credit more areas to seems and very perspective. I footprint from right down still from more credit a New and particularly investor a

Kevin O'Connor

people I've the moved if was Business The I and were had it's as traffic full. wearing Bridgehampton summer this think to the there. was in middle from west before. happened, out But we masks. as for of except conversation footprint, across And still our I nothing yesterday restaurants east and

feeling I better anecdotal further every things. the larger they York sort performing. work, reasonably for exposure island, us of less. but to that. middle mean is to year. I go of appears face inconsequential, with customers further and customers at our have as currently -- back But I deposits we to As had the of again, measurement look traffic as getting again, think feel loans to we up have the the seems be need island and people our the credit there New the and balances, last move the those They we be Their than that still optimistic, west. are are are getting not day, And City are I

we of years that change side, that, can and us for have that very dime, as we diligence paint for underwriting a move positive and feel and stand did through So But should our a they various making a speak do the I do my number I that that now, well the forward. bear loans but the partners success we think I we on picture, on we in that unintended. cycles been other we comfortable, new know as for all

John McCaffery

Yes.

Even because quarter think, even be have I at I charge-off some just began. been well. pockets off like a the increase refinanced past but due pretty for that charged in before compared we which [indiscernible] is in loan was to currently $X to There'll the there this point that's think a the rest residential COVID It's the loan doing over for there, increase again, due us. past of here from dues. most we having of industry, were one -- is mostly our took million, it probably being away Kevin, would trouble and

there eye our I standpoint, certainly certain on, we pretty have a are good. from we macro customers but feel So -- think

Alex Twerdahl

just deferment said some to Great. were expenses. And that John, salaries due then you a asking think I expenses, of PPP-related on little inflated

So what's kind quarter? or the fourth right right the point expenses of for starting the of level for fourth the quarter

John McCaffery

around I to in fourth think million we're quarter. $XX still the for come going

they well. on of and out as based for that to -- to activities of we're of this effects that in the the far the listen, we as which tenants XXX% as in get has activity -- pay had front And going do to title, pay couple we of expense next million to better, not want employees out the a deferred for we So QX be some we more that's the just on going as And quarter, then as usually cash period year. that's when PPP a well staying our in our we'll it. they incentives. early can going SBA all component it in close be looking so merger are was things are to and December plus, incentive great, We're for incentives, $X pay the stock third increasing paid upon

Operator

The next come question from Gilbert will Collyn with KBW.

Collyn Gilbert

comments. opening I apologize, your missed I

you if it... So covered

John McCaffery

your answered that right it. I questions was there, all

Collyn Gilbert

and loan where see demand of Anyway, kind of pretty kind just next and demand You year year. into loan then customer about did. you move the It's as simple it's migrating of a you or into end this one. growth

Kevin O'Connor

I is Multifamily mean is strong. it's strong. -- the pipeline

$XX of think grew the think I sort first issues, timing month the I quarter. we million along of in

optimism and I on at focus new moving still there would There their some they're to manage business to the pipeline. Now some at a know able through the to it if of PPP was is going expense times focus argue by they're was don't get -- I that the but our worried when is think a customers, forbearance, I side be about our forgiveness. of is certain it

So we XXXX and are really managing beyond. thinking about

managed we -- about end focus that get is for the first year, our opposed this pipeline estate, incremental get we portfolio, than we we to commercial customers will, back and the if and of when this would the you mature mean that and and $XX have appropriate and next quarter. more we net our So sure think through on loan with was directed as amount growth which make a I million I quarter, I I it month The can through that loan. to got probably managing. think we did say last real like commercial the indicate paying new process chasing would greater than efforts of of be the loans will growth that

Collyn Gilbert

okay. see are originations like between you -- third and mean guys the paydowns helpful. then the quarter. just you there did curious paydowns? to Okay, seeing Was as I'm elevated split -- I That's in And

John McCaffery

usually million, a We to deal given had so $XXX regular elevated for track. bit probably. loss on were pay that. on kind originated a $XXX do amortization little $XX -- done a we We loan million-ish. as That's for million million That's $XX of and like about paydowns

year-over-year we're $X the their million of using lines last it those think on Typically, XX% on XX% are line those. just is people and our And at was usage credit. up line. There the least. to by originations on between I usage XX% the another So focus

Collyn Gilbert

yields Okay, of okay. the And about some helpful. loan coming where pricing, you're origination in? That's how seeing kind of new

John McCaffery

quarter, origination coupons in the quarter So the were X.XX%.

Collyn Gilbert

seeing... Is assuming, good. mix-driven? that, pretty Are I'm That's Okay. you

John McCaffery

Yes.

still So -- I we're But still guess on multi We're C&I the XXX% driver. but and the for XXX% holding. was CRE it stuff, the that on was our seeing quarter.

lot the still been think of talking numbers of again, past I a holding. the are couple for we've So a quarters about

Collyn Gilbert

you Okay. PPP. as thinking the forgiveness What kind schedule And are look... guys of about lastly, then you

Kevin O'Connor

Delayed, delayed.

Collyn Gilbert

That will happen?

Kevin O'Connor

with we, somebody go portal XX like contracted So everybody else, a to to for about customers create We've through. have piloted everything there. through

submitted which of to that probably maybe XX XX, has things SBA, to to take there think the -- XX days actually process. I have will XX

a everybody I information. cumbersome is waiting lots -- it's process. It's of still think because

they think which would and dollar $XXX,XXX, loans all XX% that the done we of the of next hoping we I accelerated of upped numbers we're maybe rid to through probably get did. of the to Tuesday our case cooler and heads have that about in get prevail, value and X/X forgiveness

and all are forgiveness, think customer two The that because I way customers -- worried all we're And their told earlier the that really job every unsustainable. slow of them should asked this go overwhelming finally, in about the around. were talking at front that be we time. we're accounts other same accountant document glad every because ago, the was get it's -- only months and the easier. being to will on clamoring now SBA The we're submit they to here, is look it's page

the the it's more the that the them, more of to will change, So to they customers. benefit the somewhere we and talk way, money. only just along that I free mean will change recognize

event some the it and, holding of loan And cases, in are some deposits of to probably second a are But to into what's driving because certainly be going the third. Now growth our holding people demand first will in liquidity. event. that's of fourth and deposit. outsized and a quarter lack sort in have this leak them It quarter it's money industry and sitting be on in not

Operator

The from question Erik Scattergood. will with Instructions]. next come Zwick [Operator and Boenning

Erik Zwick

the resolve about into of that And kind the mid-XXXX. on the liquidity we it loan margin while the XX the mentioned fees, if X.XX% So a net going impact. excess is probably was to you from PPP mentioned you for to impact about the basis take out just and points back so PPP now margin, interest

on of is of work. two Just the to curious about more path moving quarters? the towards to liquidity that X.XX-ish over range kind putting of excess what kind next the And some the back thoughts

Kevin O'Connor

Erik in of to releases, think cost... of there's going you And out I we're XXXX, $X.X that path, next billion the press bank be quarter, sheets I the X company. loan will our sheet quarter be together that if And their the at on balance home think put first one advances on look balance were

John McCaffery

It's a billion. $X

Kevin O'Connor

cost bank XXX Home that advances points. loan $X of the on a Dime basis has billion.

managing are on million we that pay in be are when some XXX... that time, and organization, this their the on be At down borrowings together, thinking will think to down basis used side point path. this XX I'm earning I So points that we will $XXX cost

John McCaffery

Plus rid I the that with sheet cash I that use bank loan a the of with got. pay to cash. something forgiveness the forward that have liquidity home could That's to take of have out combined better of that balance deposits ability the they've the but the the much PPP I'd to margin from down will the low-margin net now, we're better come parts much going company. the really net XXX do have combined to get going rather

now. not Just

Erik Zwick

how rate Okay. quarter's I'm then for quarter Do revenue, for gains. sense. shaping that of -- income. noninterest about again? up fourth quarter's That kind to SBA makes the have run a thinking into XQ you And the think about the for for trying just strong fee very insight just

John McCaffery

I of was kind really QX outlier. think an

-- payment giving the was demand. SBA was the there And think there deferral. was again, I pent-up still

well demand been may some holding as from expect pent-up forward So I some demand as have there QX.

what be. full really will kind of year at to think look probably a number that I'd So

about So we on Again, global next quarter we've gains, think maybe to a $XXX,XXX get but to back standpoint normal standpoint, SBA a between and been -- there. from I $XXX,XXX go we'd SBA amount is gains as quarter -- quarter, going had that and in but well, be light quarter a again, they of then a the because Dime. we had little this strong

the for is good So I to platform going have loans. a combined SBA think company

Kevin O'Connor

the SBA quarter much the determined. How $XX that about pipeline in through gets of fourth million in loans pulled be is to There's today.

Erik Zwick

of I last into cross any on end Are then seeing one just estate some point? values, And you kind And at that? concern of any properties Manhattan. commercial you estate are of obviously specific of guess me, once Okay. value many about western of real Island. trading the But kind river thinking real the There's commercial there for more this this any point? at values indication Long

John McCaffery

cap know points as space still Island have Long really don't leased the there's of the this industrial But here. conversation opposed in rates have being touch is are increased I at being actually I buildings on to held there's borough. that actually mean on rates cap the identify. a built. office lot -- point to There still in

that think the I space, still big-box we're positive that as you going it's from retail, They of but about part the retail, of away still market. So most industrial and step that segment get of well. into

Operator

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

Kevin O'Connor

you. Thank

ultimate that extraordinary on remote to dedicated are I is only all new incredible want want As day, really this that Dime the dealing I their and tirelessly take remain I'll Every promises together being be integration I home, facing in I diligence this our Boards, is thank liberty didn't of putting communities. concerns. better health and the in our remiss felt and our to delivering efforts, for creates get to I rest with and our an I bankers. this. soon-to-be the created. team of the the I our and and group that on shareholders we're where X my third the companies We to to childcare, Dime. and And you to wouldn't diligence excited made compassion then made what with closer than if partners quarter success. comments July behalf pandemic: I to schooling I on think It's me feel come also but that thank release, do we excited incredibly I for not working to opportunity customers the and conclude, clear as take combined employees, They their management issues I reiterate applaud that today of was work, these and the we've at

I So of done are the all to and people of very face working again, thank, lots hard adversity this in get want challenges. the that to

you and be to on from process. we'll any for call look their about some everybody thank the get to other further reach the partners interest in this But many forward we hesitate this side. working to shareholder their time Probably time please an this hearing to I look our at continue X.X with amazing our through today, So as in company. is for of to questions, our for I of months. don't I out. on talking meeting organization, you forward And

So you. thank

Operator

has And conference for concluded. sir. presentation. you The attending Thank thank you, today's now

may now disconnect. You

Dime Community Bancshares (DCOM) 1 Nov 202020 Q3 Earnings call transcript