Flagstar Financial (FLG) 30 Jan 192018 Q4 Earnings call transcript

Company Profile

Participants

Joseph Ficalora	President & CEO
Thomas Cangemi	CFO
Robert Wann	COO
John Pinto	CAO
Ebrahim Poonawala	Bank of America Merrill Lynch
David Rochester	Deutsche Bank
Ken Zerbe	Morgan Stanley
Brock Vandervliet	UBS
Steven Alexopoulos	JPMorgan
Jordan Hymowitz	Philadelphia Financial
Matthew Breese	Piper Jaffray
Christopher Marinac	FIG Partners
Mark Kehoe	Goldman Sachs
William Wallace	Raymond James
Peter Winter	Wedbush Securities
Collyn Gilbert	KBW

Call transcript

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Operator

Good morning and thank you all for joining the management team of New York Community Bancorp for its Fourth Quarter 2018 Conference Call. Today’s discussion of the Company’s fourth quarter and full year 2018 performance will be led by President and Chief Executive Officer, Joseph Ficalora together with Chief Operating Officer, Robert Wann; Chief Financial Officer, Thomas Cangemi; and the Company’s Chief Accounting Officer, John Pinto. Certain comments made on this call will contain forward-looking statements that are intended to be covered by the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those the Company currently anticipates due to a number of factors, many of which are beyond its control. Among those factors are general economic conditions and trends both nationally and in the Company’s local markets; changes in interest rates, which may affect the Company’s net income, prepayment income and other future cash flows or the market value of its assets, including its investment securities; changes in the demand for deposit, loan and investment products and other financial services; and changes in legislation, regulation and policies.

Annual about in factors and the this filings, its more Company’s with its quarterly find XX-K including statements Form XX, forward-looking morning’s XXXX period will ended the XX-Q XXXX. associated risk the SEC and December You Form on for Report earnings release during of call. The reconciliations and financial conference certain release also measures this non-GAAP GAAP includes that maybe discussed

time, today’s call mode. is all this participants reminder, At listen-only are a As recorded. a in being

questions ask that during Q&A You Mr. Q&A. the opening will Ficalora, to have provide brief will go this at please chance prepared Ficalora, who management’s given discussion, turn a before Instructions the Mr. overview time. the line remarks. over now a ahead. following start to of for call will performance I the be will To Company’s

Joseph Ficalora

and diluted three performance. earnings $X.XX Good on and $X.XX months compared us ended quarter XXXX operator. XX, ended results This XXXX the you, the XXXX. for of for the we operating webcast share to morning and September discuss to XX, morning, on joining for thank our three per months fourth you December year as everyone common we call the Thank full and reported

been diluted operations our full have items Adjusting and items any year we should to note loan full banking of the for year included the reforms $X.XX. would $X.XX performance. that results covered common per per of XXXX. sale our in of diluted share XXXX related compared the For XXXX, number considered sale year-over-year a analysis mortgage Please earnings year to reported of share $X.XX for The XXXX company’s our portfolio. in tax be the that these

quarter. number like financials, to during the of fourth the I a to turning positives which Before occurred other out point would

to closed This our XX. received commercial community of we approval regulatory as into subsidiary merger our First, bank November merge bank.

XXX%. to share. we this that limit a $XXX Second, share shares per the are Under Federal quarter. million Reserve repurchasing during given We conditions Board subject approved XX.X more price average in our regulators no of very fourth an CRE proactive market were program And we were repurchased third, notified concentration million we program. shares at $X.XX of by the repurchase our

also closing the declared common to of XX, shareholders dividend The dividend yield share Board We record that XX. February today $X.XX on price dividends of announced an represents cash Directors the be a February annualized this of on as for yesterday’s payable per Based of will quarter. X.X%. common

this XXXX for The two is Turning major in of now highlights the company’s performance to reflective quarter. factors. financial

$XX XX%. successful $X.X and hovering reduced changed late the especially and just for were the by of higher the regulatory are passage and company $XX designated to XX% we billion under designation This environment as reflects billion The of balance banks selling the only also securities stay operating $XX us able Consumer manner other addition expenses Act. our it to into those securities it in we the put of First, Growth, related $X.X $X.X sheet by SIFI, which execution regulatory on costs reflects second, into And a Regulatory levels the which compliance XXXX, growth arouse loans strategy early among Protection things of act billion Total Economic for banks. since re-defines the of Relief, to SIFI from XXXX, past the reduce just now XXXX. place which This important by billion we increased or one over few under increasing billion. to over rose $X $X.X set our threshold $XX $XX.X assets yield the balance billion We to the $XXX X% billion of originated a billion from to were billion levels asset our resumed for under $XX change loans threshold while the of billion loan or an expenses as securities and to X% qualify passage was loans or few through over we billion years. sheet. the increased amount. of grew billion. XXXX loans $X.X Total our securities the In and or operating a increased the billion. stands Redeployed cash at of significant were banks

and to to for billion portfolio driven approximately $XX.X our $XXX $X.X our our million million is loans loan continues a million specialty specialty loans. increased year-over-year $XX growth X% and includes prior million to Our of $X the finance and loans. comparable billion product loans pipeline of $XXX pipeline on billion basis finance specialty by flagship to XX% increased loans, be multi-family or Multi-family $XXX $X.X of and quarter CRE billion. the multi-family finance The for current on

current our stable. interest remains declined market relatively the Our of loan the course rates fourth pricing quarter, over

during an pricing are X.XXX% quarter. XXX basis treasuries New five over loans CRE multi-family at about coupon currently averaged average loans X.X% the points new of year the approximately while

XX% during and portfolios forward points coupon to existing date XXX on these a approximately multi-family the up CRE looking on our above come loans increasing basis we’re As re-pricing their coupons. currently portfolio by contractual Also our higher of currently average X.XX%, continued strategy investment is into more securities total our on The cash our yield securities yielding we reinvestment of represent as assets. quarter securities. redeployed and

of Additionally the now rate. one-third adjustable is portfolio

year-over-year in on to $XX.X it XXXX strategy for has $X.X growth. or the To deposit basis totally billion. been been us this Throughout company’s has to increased deposits XXXX organically. end deposits increase X% positive a Another billion

to expenses to than Turning million XXXX. or million second $XXX $XXX quarter as now million million The of declined $XX XXXX $XXX management compared was expenses to non-interest XXXX. run-rate million expenses, XX% down of operating better total year our $XXX full for of peak operating expectation to compared

to income the margin the our while third in quarter November onto X to X quarter of came compared reduced the points. The down basis points down X.XX% points interest penalty net Now issuance XXXX. sub-debt margin. this margins by basis X Repayment the margin at basis ended

basis have X.XX% better previous down net management’s been only Excluding and our to than expectations. slightly margin margin two interest these X points quarters’ items fourth compared would the quarter

asset quality asset front, $XX decreased XX% the or XX our of assets metrics total the non-performing to over basis improved million quality a course XXXX, On of assets. points

average $XX taxi Excluding medallion-related XX% aroused from non-accrual points non-performing The to for assets and points primarily basis million loans. or basis decreased X repossessed XX Net XXXX. medallion-related, of months December X charge-offs million net assets. ended of or the charge-offs total taxi XX, loans $XX.X of majority were

million, asset now quality metrics medallion exposure pristine remain industry. lines core As the of of that excluding taxi December open XX, operator our and XXXX, best rank medallion the $XX.X to for note the our remaining questions. ask would the the taxi your On I in was portfolio among

within But We later of call if feel please we time or will do today us remaining. to get don’t, free this our you the all best to to Operator? week.

Operator

you. Thank

We session. question-and-answer first the Bank will from Poonawala now Instructions] comes a line Lynch. with with Ebrahim [Operator conducting be your of of question Please Merrill question. Our proceed America

Ebrahim Poonawala

morning Good guys.

Joseph Ficalora

Ebrahim. Good morning,

Thomas Cangemi

morning. Good

Ebrahim Poonawala

prepay we average coming ex the what on of we uptick look like call question X.X the in XXX stayed Two they it nils signature I And about given and let's the name Joe think, Is deposits in around on what's right name, coming the sort X.XX, expectation now? X, I have sub-debt prepay reported income when between same. cost questions the Tom, said there? guess, a X.XX, the when reports. in of low saw X.X what's decent core it X at first

or is like, anything didn't next quarter Should expect there up You pick prepay we going so? to over the on?

Thomas Cangemi

On the the going stock, already. side prepay on are from it QX we an uptick quarter-over-quarter was relatively obviously flat but seeing into

encouraging. So that's

slight be just well side prepay in XXXX year, through guess, in has been the the XXXX our slow fourth XXX came CDs year with unusual in for of a it the quarter In prepay are CDs of the lot overall. scheduled into obviously QX as in were funding positive the QX. entire uptick first cost But signals, expecting the prepayment. significant And I that in so markets to a so a general, the on quarter and so mix half, was That’s for cost CDs. So the volatility early, predominately retail XXX it's fourth growth we on liability the now funds our in on out coming and to was quarter quarter about done we that reporting overall I given fall had second the about on ramped of came think for would seeing say I XXX. we’re to typically a quarter of yields it's a

with between somewhere assuming the now assuming haven't that So interest in a XXX possible Fed being going if be kind as the is a tightening. rate market is significant we change XXX not there we’re see you forward level look But not interest said in rates that to at going to raised that September. was of our offerings since right we CD the further as

give hike we see rates the is since in of lower the obviously September December seeing, tightening if a so delivering our approximate less wholesale obviously we and type it wholesale there the are take given rate of can been as on that's the the the of funds to what So have quarter cost was on curve healthy fourth funds offering shape that hike, quite cost steady through well. you And market uniqueness that we retail the change rate CD perhaps do to side. side, place of obviously going of not pressure

Ebrahim Poonawala

the for the know I on Got given it. margin Tom, name previously outlook forward core the you quarter. have

be like in in with the you margin to the expect wondering the Just to in XQ? XXX December, debt maturity XQ relative

Thomas Cangemi

Yes.

better than quarter to anticipated So points X expectation. we was basis about results management’s X given than it pleased we were better slightly obviously what in QX fourth

that we But We guidance said loan Going into a the before that is issued to lots of that that more now there early a that's we in of a few much production. securities we growth again sub-debt left reasonable have had to X direction level quarter or next but have the depending we which say last points the dollar hike digits QX, single depending quarter rate have say industry from to for will give to loan But again, and on billion to that December. balance previous visibility in work better and guidance deploy term growth, is, as probably consistent liquidity down XXX coupon how the quarter on basis are sheet a on would short the again norm half in we mid of quarter. overtime you money see I put being happened maybe are we and this margin is XX% so the we to anticipation. quarters by I up quarter And we the sitting maybe assumption. in a book growth in around saw building previous the the

Ebrahim Poonawala

one for That announced helpful week. being guess MOE just saw transaction separate we Joe, strategic I and earlier question. this

an You you in market. and transactions guys with over some sort about like think talked about to relieve soon this concentration you have us CRE that of it you lot a talk quarters? potential NYB you issue about think received of think is last such transaction year too for coming a for involved still regulatory Can about the when just and through getting

Joseph Ficalora

No.

benefits has have very poised restructuring had the in And to our There we execute for a don't on sheet that certainly clearly the not through beneficial order we probable That highly our in a horizon are embedded for balance past in on transaction. transaction. need us that business think choice the to sure. long that we We our model the the That are future. period many we And life. are be for accretive. highly the is to a public I market choices. NIM been derived

everyone ahead in do create concentration assets do, we we including of So period going high. any are issue And received we that well regulator. the the is and dispose not all that of an the is our transactions their event to likelihood something that by be because assets we more in most in

have only assets bank that in we’re more concentration we our others we the as fact comfortable look as with. effectively quality the we would have as creating it keep and that has have deal disposing asset accomplished assets and limit, of pristine totally been that So of of the in doesn't a by done, to every

Thomas Cangemi

to where a Ebrahim, on see transaction. I is in scenario at market follow it’s that they done in that not would type refreshing as is commentary looked it up a Joe's' just obviously one a premium the transaction three one

looking evaluation. and at we encouraging. the our no premium that the in you deals perspective say market market look for doing value perspective look see book very we at would coming would our together different somewhat at really is what transactions MOE So of is where tangible on protection I

going MOE concept value very value created our on tangible evolves not our So a book right clearly but focused clearly, basis, as no currency premium combination forward business are is on the partner. we with a true the diluting

Joseph Ficalora

Co And such lose that had currency reality never new to discounted have performance create with significantly ours is that we’ve up an never because opportunity the market. to a been so we

upside So historically when transactions currency our a and lowest is our currency will way transaction matters the we that cut. therefore to is and extraordinarily clear plateau therefore currency reacted a and prospectively, the has will and even accretive well it's look in react it the pretty always been be acquiring at that the is currency deal the at received

Ebrahim Poonawala

questions. Got for it, taking thanks my

Joseph Ficalora

You are welcome.

Operator

Thank you.

line comes Please with with Rochester proceed Our Bank. Deutsche David your the next question question. of from

David Rochester

a have guide morning guys. your I good Hey role know, those the party of borrowings. as NIM you

So remind you was just stuff? is are I if for rate that at or is going and type three new are the borrowing curious, overnight sort on maturing the two to you of can what rate us then what the looking year you

Joseph Ficalora

So have that's left of in again, a $X.X in we the large billion that sheet. cost lower balance in funding the slug XXXX what's

to obviously at level the as NII given and That's and given on in on, rising If that the direction with the cycle. we are tightening they’re interesting we the that's When tightening NII with given quarters what the we pressure many, here end of to the margin cycle, that the So indicated we the liability have had of our the the rates refinanced interest position down remaining maturing. see have. we with many towards sheet. throughout of environment XXXX down portfolio. are growth lowest balance get burns year tends done that some given rate we as left And pressure say depending

event XXXX encouraged are move maybe we end for we or the look Fed So tightening by, year at expansion the sentiment towards growth late the of margin in NII early and in the change the obviously doesn't interest rate but can on XXXX.

as left that and book far market. lower the answer So cost that's what’s as is liability much pretty funding the to around the

stay stay level in flat get we will around bigger XX benefit. So expansion. see rates you versus go a If lower then growth rates XXXX this and and NII margin

David Rochester

are want looking to stuff whether roll are year placing you on you the in at of with? what coming on and that overnight as differential it's rate coming Based Yes. to what's terms or three two type the offers you the stuff stuff into

Joseph Ficalora

the at is I street expenses on looking we’re guess, loan the the offering at It's bank home place. commentary market said previous looking at currently that and the the our CD. retail full, I to relatively

very been have we deposit So proactive market. the in

new we XXXX last CDs basis and into coming I and cost rates took average CD in all in our moving year CDs with on. X.XX% indicated As on new

a loan CDs XXX term that you the liability or being between somewhere XXX in if maybe high points bank with it's the below are as say said, market with that. home XXX let's short with XX-XX at looking So being basis to

and more we borrow bringing and as money the our home money will attractive. is go on we – to So locations have branch loan street on are XXX at shortfall focused if depending a at bank we to level there the for what's obviously

David Rochester

to wondering guide may in the Okay. of in And XQ what than for I am be this are as are you that? assuming a rest you it Are you little expecting higher grow looks the quarter. your securities? just NIM have expecting guys deployed bit like you the cash been that

Joseph Ficalora

So, growth. my no I guide have securities NIM in

if So you better you securities NIM. a on cash from obviously have put

fair I amount, think on the sub-debt. it’s in we coupons for QX took a XXX

looking you margin at If a quarter-over-quarter. are back that you out flat almost

we're flat. So, margin to getting being close

getting stabilization to where on forward hike Now, clearly we interest as a our point short-term getting relatively obvious going negative but happens we're rate we been a think that depending and flat, the here. what impact, time long the close last had It's sensitive with that a waiting. rates, it's if liability it's remain to

with what you and on said very QX, clear in I'm per anticipate billion QX, billion unique our we're our book $X last growth we were $X.X in but securities. as guidance position we're for clearly year. NIM So, giving cash. so there's on to going funding a no quarter. a deploy QX we that We approximately guide current

Margins at have Dave, high as rate the very -- possibility significantly. were and And So, benefits. of far enhance much proactive securities, volume. that as a changed, we one

now. reassessing So, interest right and environment rate we're taking back step a

David Rochester

where Okay. paper or securities does rates are you as stuff? and Yes, you was that what And it those investment is then, my had seeing today. buying, question you historically other next are generally that

Thomas Cangemi

in much trying focused module instruments. pretty portfolio floating been to We've to a on reorganize rate

really historically we move the rates. assets X/Xrd now So, are rate floating throughout of life, our structure had a towards, fixed now we public

security where in is advantage QX So, today. rate the attractive taking we proactive of blending QX, a higher very yield. were yield are anticipation Security very a of it's environment. and last year, it's We QX,

So, side of there's has tightened, sentiment. environment the a were our attractive. right, yields a because change security on somewhat That in been floating now

David Rochester

Yes.

Thomas Cangemi

because been to government. And of curve. of when attractive we've that not securities available given we've we predominantly the buy feel are floating been -- move the all and shape staying rate yields So, rate the it's inclined the as out margin been fixed

David Rochester

Okay, got it.

pricing? you the guys seeing today So, that what are variable for for rate stuff,

Thomas Cangemi

today quarter low it's and in high So, threes. was the two probably in last the

David Rochester

I'll back. guys. great. Okay, Thanks, step

Thomas Cangemi

you. Thank

Operator

Thank you.

question. question Please Our with of with Ken line comes from Zerbe the your next proceed Stanley. Morgan

Joseph Ficalora

Ken. morning, Good

Thomas Cangemi

Ken. morning, Good

Ken Zerbe

of basis core clear like very also were that redeploy not definitely will deliver I your very you cash securities. you're redeployment clear you're point of and of but securities NIM points X expansion, into assuming any but think the cash sort to Not you Tom

So, is should I benchmarking mean it we fair be --. assume, to some

Thomas Cangemi

augmentation. be There'll some

Joseph Ficalora

We on me bit sitting Right, rates. interest cash. Cash six is an we on up were yield we're let Ken, months. can, a clear. quite it Well make attractive

XXX. XXX going securities. cash from from approximately to to we're earning, So, Cash

So, you're to we as asset. my we're have take yielding sitting X% consideration, That's not X.X% yielding about point. a under a at

consideration to got and move that take cash into into you securities. So, we as

Ken Zerbe

you. Got

Thomas Cangemi

it's largely securities. more and in think more I

Joseph Ficalora

Right.

Ken Zerbe

Than you would more. great. or Yes,

Thomas Cangemi

much lot of That's higher earning more was an environment. ago because a were We a rate two right. there quarters expectation

of advantage took growth. with we So, I that as indicated the

So, the current be that the a currently is where there's where lowered cash would at on previous anywhere for market possibility what XXX yield the from new are and in a quarters. yielding versus or securities

Just keeping centered.

Ken Zerbe

Okay.

it's So, do less down six NIM you all down NIM million. like XXX core benefit some the the is but benefit Or still probably something like full of a assuming so core four.

Thomas Cangemi

do NIM, unlike We Ken core --.

Ken Zerbe

We the math. do, that. do just wanted sure I enough. make we're did can Fair It's we'll -- to

Thomas Cangemi

That time conservative, being being on Ken.

Ken Zerbe

fair Yes, enough.

Thomas Cangemi

that towards its point a seeing talking and to year. getting the next about environment year start expansion will current we're margin NII end the that hopeful rate of We're we're growth and

as end XXXX, of potentially. back the Even

Ken Zerbe

then, your just million? And in thing buybacks, the how desire, XXX congrats started. the repurchase remaining Can share about in want you that part talk of terms Alright. the getting to of quickly may

Thomas Cangemi

Lora's that in we're stock Again, finishing on be when long-term are Once given see XX. a buying back it. I go It's his we'll were but stock very we fourth it proactive volatile the very this slightly back was a still much continues, was conditions, probably If up. very never active quarter. look we We to tremendous where prepared below we'll going it had our opportunity. remarks. we we'll which proactive today, more priced be take proactive shares, market as a be to was at was on commentary mean,

Ken Zerbe

to guys that in the full or like there Got it. quarter. you any XXX there in on quarter buyback restriction presume remaining be let's the any for is you you let's repurchase buyback million more? this Could on restrictions And second say then, market your with ability another is back

Thomas Cangemi

or we what utilizing in for anticipate your issuing minded, that the bare markets. that going and regulars is got capital Ken, always on you're have Again instrument that restrictions capital be any you to to

and planning any and were will regulatory possibility accommodative went we So, take the our clearly capital there's that would they with approval to process. fed clearly and for us always but very take the

Ken Zerbe

Understood.

much. very you thank Okay,

Operator

Thank you.

the Our next from comes with with proceed Please UBS. Brock your question. line question of Vandervliet

Thomas Cangemi

Brock. morning, Good

Brock Vandervliet

surprising in part you if Tom, It could kind year morning. of margin the the some that. could the key a but debt of Good by lift you actually that clearly the debt walk is through just of see seems repricing the end little reprising. a

of do of through could helpful. you if So, really be cadence That'd just go you've repricing. the in to got the amount kind

Thomas Cangemi

be borrowings not for that into get of let's going Yes. to would but in spread our to portfolios. to funds I stock take quarters conditions, multifamily of reasonable. coupon I detail have that say XXXX is Again, have just And have the I'm in what and we X.XX% maturing for change quarterly four the a you market the cost comparative over think CRE we

years. have originating we uptick we've in paid example we had the what for basis a in seen That's points So, and off. XX QX highest what

been three we've largest is over much This from we originated. is a movement So, substantial what of had four the what offers paid struggling years the past decline.

believe XXX points in we So, we That originated the trend basis we of at very continue. delta there; a will XX paid XXX favorable. quarter,

coupon That's an points that's the prepayment, a the that's at offering come CRE if that option. importantly, has take on multifamily not of to about XXX up aggregate coming XXX, to the that of and a to has up current on coupon and yield, their portfolio be portfolio you XX.X to maturity. billion look their average with just option expected More current basis that's

yield higher from a tremendous Even each flat, basis going portfolio are XXX portfolio. year are loan the water. the the That’s remains average past our that every up. given that the in here, So, everybody asset are we've down in by, we goes coupon coming point have opportunity pricing Eventually yields prepayments. we in significant average is to years on asset rates if Unless a see future. will the the believe originated three coupon go that where as won't as pay the much a below upside for

Brock Vandervliet

helpful. that's Okay,

a as and CPR they fed the come of looking you here. to and borrowers incremental ahead of the speeds date? willingness in aside like with mentioned Just in terms be some the of your the feedback of engagement may What's market stepping prepay been follow-up, repricing from level the your to deck

Thomas Cangemi

I will just unique big versus say say picture we January quarter. a fourth change in

was So, very Volatility, would business in was fourth I given say market quarter small. general conditions. slow

in to only no quite benefit structure. However, normalized in did we portfolio. prepayments our that lock multifamily only years a a isn’t question probably the five that bread-and-butter more that type trying lot in of attractive interest and the few we're If should start believe largest government it predominantly the is very coming going to and agency next slope curves advantage very we them to which see comes financing. are seven offering of just and a the I offering flag we customers But to And the in and the curve they and seeing amortization type tend Obviously agency. will curve, the to do aggressively now shape the when structure, us of react competitor. in greatly is little right of shape off traditional

Joseph Ficalora

is be to happens, place. Fannie its all regard in that to in a Freddie There's is changed Fannie that no in market market participants. question however fact is When will reality not there is certain. this with that and Freddie this that detrimental bank defined The the positioning participation expectation

Brock Vandervliet

Okay, thank you.

Joseph Ficalora

You're welcome.

Operator

you. Thank

of next with Please your from Steven Our question. question proceed line JPMorgan. comes with the Alexopoulos

Joseph Ficalora

morning Good you. to

Thomas Cangemi

Good morning, Steve.

Steven Alexopoulos

good everyone. Hi, morning

obviously some in to quarter. million CD's out the deposits. XXX Just very I decline average market is sharp. the to If at start the money look of around were saving balance are

growth you current growth deemphasizing is here the in First, customers just from balance markets money million XXX much of moving how CD's over? are was and of your

Thomas Cangemi

historically focused we've this in light, the payer. has And above being company a rate say over been the not market, would the public been I Yes. very low market. on

that we post bring market as if and meaningful have first on to public we funding giving wholesale we're the the growing we that the for in ledge, to a now going our serve. change time to an markets trend So, that in alternate

for of structure has XX% and financing offerings within is changing a that question a retail in new active follow very I advantage model. XXX curve So, market significant as of been a been what the is we billion can consolidation our in. we benefit. probably environment alternative other in bringing that we money focus as our the on meanings of bank we've historical we money on we for the it's for market money being our the to positioned has us probably an presence, believe customer no company's been that in There's marketplace about very prior know think brand focused versus is here evolve And said, that or shape or long that in an there's additional alternative vehicle more existing growth the be being been given It's landscape. to coming believe. getting into in it's priority funding. you base. our which business this half attractive if history, Obviously, had regulatory the do we're well today than previous that years acquisition XX And

So, we to us, acquisition. unique have very of a currency of currency environment regain attractive next funding we start obviously unique a not some opportunity ahead but in we augment to be could our is the our to that

Joseph Ficalora

in it in consistent demonstrating is CD money This competitive sector market move the transition very observing not money into is a return are CD existing The you're which an first their particular, we're however when rates market. occurrence. than will from being past the unusual with better very significantly

Steven Alexopoulos

helpful. Uh-huh, that's

Thomas Cangemi

color we close probably back eight then within short to as a we're treasuries an treasury, will of in curve treasury. I end you the below into give eight curve try probably Well, as, within to now and the be so far we're the right

strategy had for So, that's and choice has that's XXXX good we've us. consistent to customer CD deposit it's The a growth a a a relatively And insured. buy business as some put been throughout choice. a go treasury or

Steven Alexopoulos

Yes.

that's Okay, follow-up. wanted helpful. I to

at have repricing you slides loan deck. Looking the the guys in that

The if won't Freddie. were is you do and rate loan the loans current XX.X looked don’t their with pay the two with Fannie and outlined down. Once coupon just these much over I billion just X.XX. why X%, just So, X% risk and curve, you right? once go over how flat they payoff understand options a expensive, customers very have,

Thomas Cangemi

agency in They to may. is depending a the higher they the has NYCB based long-term expense. slightly getting the to environment. of flow very capital model business to avoid given significantly out work flow. accommodative very going And with of have a structure current needs. their so their a loan on access on win because them that's probably traditional agency cash They portfolio an competitors going that's be or can They're that the is cash Doing

to is accommodating three Freddie As XX rent in one want flow, they accommodative, the They cash unless financings. your years two, exit new regulated build for and out four, is flow and back were cash three, points pay he players. Fannie to an do go structure very to five,

Joseph Ficalora

have is to out that that At to than to recognize marketplace a acquire of are refinance in get discounted making costly and change kinds in the the this are people loan end is these do likely our more the the loan. to to going and to Fannie they cycle, marketplace decisions to of opportunity much need

very standpoint attractive funding for from acquisition. So, a our of available loan is

and our clearly itself the successfully structure to winners lend do being cycle that. Our in guys to term able are

Thomas Cangemi

and is upon I ago. point. XX to basis years wanted significant from a between delta XXX payoffs one The expand down just just a change points, that's Steven, Yes two half origination

substantially current all market are is below the portfolio the on this So, loans of unique average a in coupons. situation

at what us. market to So, basis points between is the is on the attractive change very book what's XXX versus

to you're flow which So, growth, to an going with change have asset our going yield forward.

Steven Alexopoulos

Right.

Thomas Cangemi

Because they everybody pay way they has stay us if with out, to either if with us stay go the or elsewhere. on they or

an asset upward We in yield this will environment. see shift

Steven Alexopoulos

one to then, Okay, the just you. then on thank want and final commentary. -- follow-up And M&A I Joe

in credit guys quality on curious other in among then had be Thanks. banks I'd economic the bank seller on I your your thoughts And best with what expectations industry, another thoughts high. just said are mean appear you have laid also the cycle? the combining have there. Some

Joseph Ficalora

think greatly important disposed of in is I acquisition every thing we've assets acquired. the that made, the we

assets the closed. most And them before closed the in we as it for we've them part existed cornered trouble whatever the the soon sold So, we've the as deal met deal. priced bank,

So, the few consolidated we're or ability portfolio to something the is have the that the that within we'll wait with type two for, have we three many case equity. of to in first months years is comfortable accomplish of not

other up that have very price, bad to but we've again a is time-and-time people's at the point have. be we picking demonstrated matrix a your price So, we all we that other valid. losers and a particular at make This work given time can particular

I that did assets required overly So, selling but whose don’t deal. We we and banks had want knew to deal. just the assets at very into were we so the at we closed those bad specific when where we priced them the

assets, we bad with to are going with is co new comfortable is structured that likelihood be the that remote. in quality below extraordinarily assets So,

Steven Alexopoulos

But MOE other you're small of realistic you MOE could that's if talking for dispose realistic even favorably an feasible a assets. you and the banks for do MOE, that about an think an a but option? That is it deal Joe, seems

Joseph Ficalora

Sure. us assets, disposed asset their we assets great We've we disposed more banks had, had we new their than and created And other required in deals that. for done bigger the a base actually shareholders. return They co off and off restructured than assets.

did, deal And transaction. very the simple. redeployed first ahead all we just assets great all months a So, and over their then the but of we value for The first bad of that portfolio assets, I'll not almost had their just period all created we in the of assets, make very it they sold of shareholders. very we

Steven Alexopoulos

Okay. taking Thanks for my questions.

Joseph Ficalora

Sure.

Operator

Thank you.

next Financial. Please proceed from question line question. Our Philadelphia of comes Jordan with your Hymowitz the with

Joseph Ficalora

Good morning, Jordan.

Thomas Cangemi

Jordan. morning, Good

Jordan Hymowitz

Thanks for my question. taking

in slightly mentioned much type XXXX. Could margin expand be the basis there no to be is mean, the basis of margin of year. as rate it this that XX? You XX much. too expansion end more points points as by I there's XX If could could increases, stabilize, what

Thomas Cangemi

share sheet obviously a a tightening sense fed to here, very having balance over Thomas and difficult far years forward-looking of past very liability the your XXXX be struggle too don’t Jordan. it's as but I here. with aggressively I the enthusiasm, want few been as

XXXX. So, obviously this XXXX could in be a meaningful shift versus

behavior we loan very of pattern upon the much book, right. the depended So,

everyone's now. indicated, I As right water under

So, be sloping 'XX curve, If versus 'XX. expansion. from margin today, at the could it a if difference there's shake and meaningful should very it's stays where curve we still see

curve the go is right would dictate we'll that --. really period, depending how because saying be air of in meaningful and now really relatively So, to the change the curve I'm I'm on the going slope

Jordan Hymowitz

be very And what meaningful? would

Thomas Cangemi

I enthusiasm. go years I'm your a number years the keeping flat as with billion. a This back not few cross NII three to if difficult were sheet we environment a appreciate but XX to go clearly back not but down been well. look going over struggling enthusiastic into ago, has I'm we the relatively balance watching specific of and

about excited largest to us. rent portfolio higher New but business; be opportunities the at and the curve. we in much that's in behind going market difficult So, We rates largest continuing and the the intent are be a good obviously player We're renter very the to some City. slope a we're regulated very for seeing York

think low or to company's a was rates have Because parallel return we plane. even today. normalization, move more we on So, assets slope, historically, periods. reasonable future a a this start the had are attractive very from it's average shift here, one we than higher in We substantially and

Jordan Hymowitz

ratios. And to Okay. efficiency expense by now for be? frank normalized a levels side range think could down onto we're But a XXXX, that do We're what of getting second. you the

Thomas Cangemi

for up guidance base what So gave end as our probably again, at some expense would here I XXXX.

I year-over-year room we stabilize. get better low-XXXs. there, think have there the XXXX we'd more low lower I by on comparison. from go I efficiency I a quoted bigger ratio. and here a sheet stand we'll that much year probably that's think last a have we which balance from for to mean, point I

efficiency pressured now being we we're by should So, stand be where in low-XXs the ratio loan some by NII.

revenue So, future years. in a in and to expense in I grow, of million the potential and somewhere as bottom very from nominal expenses NII expenses a additional the our will $XXX But starts hopefully growth to grow, the out base. we low-XXXs year-over-year see 'XX expense our as offset saved on there start think over we'll growth it

to was the bank, much mortgage substantial in we're c-core that exit still LCR banking mandate. regulatory to the as that so environment. Now, we're amount different not of of but addition due the We're not enjoying the benefits a

viewed a as intend c-core regulatory be we continue to So, non bank. upon occurred, has changes to

business in we've to start want past, technology from. done the the of all So, that we efficiencies getting

ahead. in lot We spending to be a So, money more should years efficiency from the of that in able processes. is technology the and get some

Jordan Hymowitz

by So, could to and really material points sum growth like XX XXXX, should basis it now the than words as would or growth imagine and I material expense points. X be be almost basis margin up your more

Thomas Cangemi

and especially in game level the only would we're a the high funding hope will assets That in change change category to material there. long-term say the us, cost That's material. as our if running performer We're ability the to right for over a not to and form stabilize and below assets a in is to has meaningful of customary history and bank. very we're is to deposit changer been mix again, the to that that unique I see public ROA mix is yields funding one-on-one us. points. some we time a basis because the effectuate the used This for not should spot a funding an we starts life XXX very this able return acquisition,

Joseph Ficalora

that favorably to this because in new been the restructuring assets in have Every opportunity assets never the sheet I acquisition it to we've done of think whole. the facilitated amounts of has to our the is large trading has recognize time upside discount at also The done new Meaning, change impacted money never such balance accretive. very the has acquisition of co. we've is us are a than the a important but into today. that at the we long for acquisitions. thing deploy assets to of history our a acquired also by trading been been Every only moment deal we've greater not

Thomas Cangemi

on and liability wholesale Joe, specific just commentaries that I game book. be And share a that this We that slot core for deposits; we changer very partnership. of any with large to would will lot love have

be So, towards meaningful were the a and ourselves line. mix if that benefit with is to to retail through will deposit; associate change immediate a and an wholesale the customer we very clearly benefit funding large bottom that

Jordan Hymowitz

Thanks, guys.

Thomas Cangemi

You're welcome.

Joseph Ficalora

welcome. You're

Operator

Thank you.

Breese line Jaffray. Matthew from the Please of your question question. proceed comes with with next Our Piper

Thomas Cangemi

Good morning, Matt.

Joseph Ficalora

Good morning, Matt.

Matthew Breese

Yields basis to focus points securities up wanted book. just XX really XXX. the went I to down quarter-over-quarter

kind And two of a so, part.

they? So out height other floating with there or the portion one, are put by repricing of was that mostly what accretive securities rate driven yields fed the being and were

Thomas Cangemi

floating we dividends; portfolio. the the The the movement impact also portion a a very that large a that fact a a early rate XX the do question some two basis had and secondly, towards year is in Yes. loan that a investment no attractive had number on loan we on bank It's hikes securities positive helps. of say home put very meaning overall bank the a yield of and that home on in points rate we had to And portfolio. have large very

Matthew Breese

dividend of the the and often they Okay. size What was curve? how

Thomas Cangemi

total the over dividend year. for Getting XXX

Joseph Ficalora

For the quarter.

Thomas Cangemi

Yes, for the quarter.

that that be think dividend home we thus was out the ex-prepayment points. bank that in if I that, received home we're we it'll about X the our a is normalize and basis loan probably equation, if which a portfolio take XXX you which on insignificant; bank XXX. And loan of

Matthew Breese

it How often curve? does

Thomas Cangemi

quarter. Every

Joseph Ficalora

means paying but they're high They earn. have a literally this very very Every consistent dividend positioned extraordinarily well of quarter. to

Matthew Breese

Okay.

Thomas Cangemi

the few much. relatively over not dividend, attractive It's been years. quarterly A

They if are economically the So, place, a little pay and in now. can expenses, stronger then the to afford take look at of they're we right where well sense dividend. doing they so margin a

Matthew Breese

-- you're assume securities come no We floating should just no hikes and you're on. back putting putting fed equal, to additional in, fed into given start Okay. All yield correct? the else what rate - it? paper

Thomas Cangemi

Again, that could be a change. meaningful

QX good for timing into a two were I investments believe and We preset hit position And market now think that, a and yields very and were million $X attractive very the on a market rates those quarter much a next XXX depending a the We took attractive. depending buy get advantage billion we'll QX market lower. in public gave position conditions. that right at probably million a we had on conditions. of XXX had We quarters. I guidance we are higher. market We may with

be interest So, we going to not the proactive, going portfolio yield. the forward. a are. risk to The where very We're securities as we look of is want going flowing meaningfully for market to we're balance be rate to at $XXX in going rate portfolio change mindful million try entire to

Matthew Breese

okay. Understood,

Now quarter-over-quarter to borrowings think a were million million $XXX had reprice. $X the but $XXX you The also I for up then, borrowings. turning billion

the they were the what put you what on borrowings So, types were on were of rates put at? and

Thomas Cangemi

a The put on average X%. have we for the here, we quarter

Joseph Ficalora

year structure, Third was, XX so was it we in quarter low think low the street, quarter, non-core like fourth twos twos, three did I with some the really three.

magnitude for it's a over option on So, going even going put to us forward an that of time.

Matthew Breese

rate that advances? will as we towards need So in think more go about X or think a product is you that you XXXX fix

Joseph Ficalora

the blended on market on growth. assessment. conditions. very going the be retail deposit Obviously an that bring deposit to, will are of excited about it we retail Remember we is expense are in the depending We FDIC less

So volatility. XX FDIC the last year from as tax billion say we moving are not per up is that wholesale

us versus the we wholesale that we bottom-line pricing benefit. take at look does a versus get tax better overall account So for retail. wholesale When deposit assessment to give pricing liabilities into

it's be So blended. to going

Matthew Breese

the million throughout we range about see substantial down quarter XXXX, we the first rate to on gradual step do the And a thinking basis? a your then or level that seeing $XXX you get run guide low start more year? Should expense for when on

Joseph Ficalora

go would historically, the typically back as the points can quarter. high first for always I is say the you quarter

for the XXX, around let's XXXX and quarter first should that probably say be XXX to going are we So high point. be

is ROI. focus XXX XXX We in we the the hard can, especially bank we current by and we should built efficient should make benefit real a we XXX, what for number be hope in focus to of processes are the it of the run-rate, the as we a initiatives basis be an that of have institution it to to given aspect in we points bag working we running on low to focus technology accustomed every the will believe end lower cost like profitability said not sub we absolute year. this institution on and to Is continue and where number and I more XXXX throughout in drive are on before, XXX

when XX lower. to look into you meaningful So we that we will revenue with think shift no can XX on point there. that. And a see run There where of we going longer flat efficiency some end we XXXX growth and at of end to have will a meaningful the the where that the start benefit drive be expenses down the ratio just

we expense should So When institution as $XX where give going from. somewhere see is so to perform much I is anymore percentile manage base norm billion low us go institution. XX into us historical for a the the that in clearly to or better new a

Matthew Breese

on more positive that And much M&A obviously sounds just it back Understood. like going then, you are front. to

it higher front talking six on of largely regulatory think back of today a as is look quarters that the but ago, of ago? the the you that were types you big from range possible? given would you some was likely deals If the to about And months changes deal small than the

Joseph Ficalora

our such of deal or accretive greater deal us we makes couldn't and more got first why because with upside do that and larger and we versus a behold smaller restructure It's all taking many in currency still is then value a A highly relativity. balance for bank follow sense. have available the creates. we bank versus with are It's into that that that buy those all with consideration new nuances a to feel deal There do that got it's It's could currencies dollars to B. still difference the the sheet of sheet of with do opportunity currency to elect big our to of deal because balance we the the a do reasons we target. matter And low of the the a to us

Co in be disposed or to So ago in or we assets opportunities the a care Pricing period created relativity the the alternatives years off. different restructuring ahead and every that market is assets deal happened new are don't ago also years looking deal with ten three the need but be opportunity. to ago that time. relative years matters, considered the can to in represents there that of are at regard each what at five We

in clarity expressed always will than any the desire time. in I there literally of but of probably a have that benefit you consider currency. consideration having say that have we today And there at consideration, deals our deals to So is more to banks that had plenty are we

that Our and in deep business people discounted are currency is know the that.

pricing So Co. is significant getting current to upside in levels our its currency participates at a anybody new that

Matthew Breese

tax Understood. should it little rate Last is one a for has past than quarters be for What using is been XXXX, still just the lower bit anticipated. two the that?

Joseph Ficalora

tax could for in for rate effective It the conservative year. with be XXXX the XX% all

Matthew Breese

I thanks. had. That's all Great,

Joseph Ficalora

Sure.

Operator

you. Thank

from line Marinac FIG comes Christopher with next Please Our your question Partners. proceed questions. of with the

Joseph Ficalora

Good morning.

Christopher Marinac

rate for tax did you XX% say this morning. Good year? Tom,

Thomas Cangemi

Yes. XX% the reasonable for is XXXX calendar range year. the

Christopher Marinac

or consolidation you normal thanks you to are QX that look what going have a blend Perfect, drive cycle just seasonally? to again into of When going the endorse the just lower charters to the in is extent you cost at cost for that that. two simply other

Thomas Cangemi

are It's it’s did we to Chris, very we point end the more initiative efficient. some last advantage there. that that plan. processes, but there completed big of part meaningful through done reason another us a to picture bank transaction and of its XXX and forget that That's years at was a part benefit reporting of in low one core it process took its whole the overall of this is time why rationale but go level. regulatory So of a consolidation. we we and of plan people the all clearly are manage. you our being XXXX The But our pleased more getting it's not And that three that to part less It have planned year. part have our actually efficient. to get cost ago. able of That was was one It's to

consolidated So the into bank. that gets community

good are very reason, behind efficiencies and good for us be we it's business further XXXX. and pleased in So purposes that will now it

Christopher Marinac

Right.

Thomas Cangemi

budget but number, to for material our a clearly and forecast Not overall XXXX. adds

Joseph Ficalora

to it more think that process is operating is our is I executives what only they also Tom us significant with having to extra significant certainly that be the there regulatory including exclusively was and is people executive of a focus and makes one clear in banks The efficient two. saying rather it amount and have two effort need to conformance level. upon at regulatory than the to every meant our manage that effort expectations bank levels need

this you are very us. good So clearly is we a to have I behind very and think imagine the this for as thing might future pleased

Christopher Marinac

that your capital does you approval on follow-up a last just you and for last Joe only XXX the you year or that that this said, for thanks is it, Got buyback? through that

Joseph Ficalora

initial to us. million. conditions. long We The in below to was depending at financing which you I when want think cost on of that was we’re reaction very nicely given my the that the those buyback. were paying XX this initially already what about buy wrote quarter stock publicly the was stock was that opportunity two announced the we thirds it the dividend fourth given that the levels marketing we to conditions and attractive math shares $XXX a market accelerated did term given decrease for very on We about the

So we third left. have about a

will conditions active be better conditions. in So worse that active market very conditions depending on less in be may

conditions. subject market So one third and that's about to it's maybe remaining

Christopher Marinac

Great, thanks guys. very much

Joseph Ficalora

welcome. are You

Operator

Thank you.

line of next comes proceed the with Please Our question your Kehoe question. with Mark from Goldman Sachs.

Mark Kehoe

Kehoe Goldman Kehoe morning, Mark from it's Management. here Sachs Sachs. Hi, from Mark Good Goldman Asset it’s

me where on Just growth, look to when is stock capital Can Moody’s? you you. floor the to IG rating or at kind commitment your in ratio the talk and whether at XC I your it the of loan Thank point destinations particularly buybacks your M&A. would question, the of be a

Joseph Ficalora

look credit So, capital of picture credit it’s a capital; with loss, based long a adjusting proud think so very we of at history we I a losses. risk very on big history have

institution in that. as at we we portfolio the you the we country we can asset match very space space So with that and the to with adjusted historically, the by quality potential look any know are far for against pleased respect have place in rest for best risk within so the multi-family

absolute So have we when a you look capital at capital very process. good the we think levels

We have very high threshold.

grow regulator level. in is to the doing adequate the very also balance clearly We just from is room and are sheet strong and excess but that have our in a pay at go out sub-debt in the attractive we we buyback acceptance very it opportunity illustrated market this, have more but that the we capital of also by shares dividend

base I So for am to our for will to position base you adjusted number risk capital absolute a particular XX% position. the risk but meaningful that given we a look capital more tell as an us give level we risk not when rating I get going at on we originate try capital in

on a estate the are vendors, rate are real commercial more position XX% focused based traditionally are we so we bank. vendors, rate the XXX% traditional risk risk vendors of So capital risk

Mark Kehoe

kind the kind Moody's retaining rating? just the terms then particularly the of up of the in to commitment follow investment of rating And

Joseph Ficalora

possible investment we and We best marketplace goal us rating agencies. want quarter time. in get from that a rating made of rate business is all clearly we grade at had we fourth our But looked in obviously when all the the the other rating a the agencies to have the down the decision

Mark Kehoe

Thank you.

Operator

you. Thank

comes Raymond the with William your of proceed line James. with from question next Wallace question. Our Please

Joseph Ficalora

Good morning, Wallace.

William Wallace

Tom, in guys. help us is way of would you asked earlier that best accept? key would payback. quick you tangible I level in the when morning, quantify value about guess follow-up. Q&A one dilution probably a said of have really the it’s Good book terms question. I be Could what determinant. M&A protection you dilution of just a

Thomas Cangemi

I So will tell you Wallace.

zero. all merges can back the can so that to tangible that might that a of opportunity. very partnership at head trading as with as You that value. long are our real a side look protective book at we and have lower institution we look value and currency very that that are a partnerships. we is we’ve done deal, institution maybe price us and way We create Obviously, high important, we for and we look Partnerships remember deals, pay go at the dividend tangible tolerance

at look we balance should on while go of look we So neutral, the an sheet up the be down. a reshuffling on stock announcement value stock it tangible at book basis not basis to

want with We years many the say back have looking we going We very our are or stock. about are, we backs. earn about conference not to road, large down six are to let's months That's something talk we talking don't we to earn a who purchased are not call are we how that shareholders.

large we That large of was a merits I two creation. year that and think We of are together for And very protective have which then the companies a sense announced transaction no the most value XXXX of was our value. that tangible at book lot interesting, fairly premiums. makes recent coming

can tangible you scenario creation, imagine down book with are side risk. wages value If that

can created think has clearly consolidate that we and It's the have So we you but will out of a and of historically. of those time values at not combined some as announced it’s have strip and really changed. risk execute we and be these acquisitions long been can since don't it our target. we ultimately the closed so long done as of We we’ve the discipline risk be assets a think looking company the lot

to transactions. be on going pricing not are We aggressive

be will We patient.

Joseph Ficalora

we we have potential in as as escape fact no had is that new Co the the there in think much have I upside today. never

to real the they us creation. and upside us pleased clear extraordinary would participate upside so a to partner. opportunity accretive for is get is deep contribution their deal that Understand value that's others be is real in that currency and are that that be the to create clearly to smart that and considering it all they an Our it. People value means something Bankers in made very partners discount understand. a

William Wallace

you, appreciate I that Thank clarification, gentlemen.

Joseph Ficalora

You are welcome.

Operator

you. Thank

next Winter Our line proceed question Please with Peter of Wedbush question. from comes the with Securities. your

Joseph Ficalora

Pete. morning Good

Peter Winter

but it have year big about gave expenses. XXX down quarterly XXX, of the step full more about but Good follow-up for XXX I a to the some Can million color the give I just imply a want that know to on question some rest got expenses? morning. first you do just quarter like year. to the drivers of guidance seasonality does in get million run that for XXX you to that the lowering rate roughly to the you low

Joseph Ficalora

Yes.

some given be but on cost a bank. is for past sub opportunities is requirements then mind front of I have grind bear we us. non to [indiscernible] unique quarter in industry fund continue and a have the of the remember of always the this quarter particular, we XXX a funded benefited high basis initiatives year said to, Pete. I publicly would year-over-year banking opportunity be down lower, look at for versus have the QX the number we say like can't in That all solely so requirements get as just should regulatory very In we now highest We us. right

a number said the I on depending I to we the meaningful say the on initiatives of XXX low that's I didn't have believe, expense what going your towards to company. be XXX. of the And with going mean We bank for number run technology is rate buck

the again, feel So of SIFI to back try run said XX publicly deal that am history after it's we to million the bank the with dealing and become didn't important the I transaction going go we high meaningful will about year. our in of when XXX this XXX or a was a met really probably in in and it run to low level SIFI higher XXX by down felt we down We goals. our took the we at $XXX to happen -- rate a to shift we confident that there was were XXX we highly understand number came so that

portfolio to There shareholder expenses on. dollar the of of at end the to lot That bank. ramp been now very XXX which some can of a spent is the have a to we was for is real been value structure made that real capitalize bank given have number a believe the significant lower the I razor early but money left range. up a the of bottom to hope the within but three system we the have be our SECAR that little drive of we cost we that's So however, that investment of range. expectations past it's It's in a focus that with made initiatives had years that accommodate processes XXX gone. and and that at we

Peter Winter

great, very thanks it, much. Got

Joseph Ficalora

Sure.

Operator

Thank you.

Our from of comes Collyn proceed with your with KBW. Gilbert question. Please final question the line

Collyn Gilbert

Was that what Tom. I my got glad was in. am that Anyway I question

growth? go the to million LCR, from committed securities to grow XXX why that quarter to be to just securities I that guess securities trying Tom discussion, back why you guys exempt a I fact the are so So the still am in understand

Thomas Cangemi

So Collyn, to right put in amounts right.

securities grow our the the change. our on will be we think getting the more portfolio portfolio the normality; typically single that's book can loan and s proactive total on XX% growth, depending time mean In loan only mid we we’re goal of growth versus market So in assets. to still we back digit that's

at look as industry a we the So whole.

portfolio see banks probably in securities the are billion, of We I XX lower imagine. over one among would we that

just down securities when being asses we billion remember XX% we our XXs stay the So below by from the not those opted drilled to going tried XX for to portfolio we as that make Congress change. small years to replace was to

portfolio. this will risk so last structures So managing we replenishing time on And to that fixed on not we the and the the back occurred are year proactive accordingly. that and we’re putting and the more difference rate first to rate is the interest quarter change going be

we selective on conditions. in securities adjustable marketing depending at rate looking more been So have

to the we replenishment of very X So the it and more call we go XXXX. pleased first, billion in have we been with have

Collyn Gilbert

just you crux The this the are big obviously is that dynamic facing then a loan dynamic. loan And re-pricing story guys. you whole to seeing

put – more three the the deck that years? coming? you a is on give that three what bit the little How us looks you mean million each slide that next does So next I that over all, like XX.X of is that in granularity years. can

Thomas Cangemi

meaningful in think within coming say two XXXX – I thirds of years. the So its would probably less two more it's meaningful, probably very than for first I XX it's and

interesting every pricing. flat us are to they it us If the or are either the they curve many today. paying slope be a because will a accelerate is will where they So are rates rate decision, there assuming stay forced They with customers make have higher XXXX a dynamic will meaningful they be in higher. go could of be very for to our

we and coming yes the XXX seeing reality is is this some is contractually will taking to quarter fifth we customers there us so to is -- in of flat up The as it will on be of are seeing assuming what each change year prepayment along of what's five commentary question Mr. benefit of interest to in when basis are no that loan fourth only the gets going not curve. not number with are XXX that very benefit option the the real rate maturity. the for market in is conservative this to And a year passage So based their X react the customers current steepen by in and we rates year growth. bigger as benefits is If are happen on but on goes larger. portfolio points there play time that that's a ration Ficalora’s a XXX the

worse typically An years. life traditional flows. at assets case, and year loans Our three butter rent are cash five Five type bread year average multi-family right. regulated

Collyn Gilbert

borrower concept implying that this in XX the is the that industry to in not do pressure that the cycle is last see within industry? so years. significant seeing How So you the certainly its right, refinancing guys impacting

Thomas Cangemi

low. that rates, low. Again Cap with where we extremely I extremely on interest rates comment are will fact are still is rate interest the

most customers I given If cash look market right the agency think if are it flow. not now they as building at player active are so is is meaningful biggest player very back the unique in are. book very they to We last our alternative changes attractive will we government. The is rates meantime still government portfolio In is where for the to opportunity the year did the that competitor over and multi-family still originations we management. revert the – the X%. game million $XX an

the a no seeping is as the question the in a to start but very, this rate for will end rate shorter estate this increased over environment, still past now of to see government that is and unique see pull go is duration the so There much real back has it's and them. customers cheaper very products absolute of low. paper buyers decade. the So less have back an in dramatically because given cause will the uncertainty curve been back time There just

customers on side the dismal was So are year. Prepaid still line. last

generates better a into sale refinancing a years sentiment, and prepaid. activity. of will the generate Activity If a have prepayment should concern ahead. being we next on future So prepaid is is not that sitting either transaction having the line going year side or acceleration there of

beyond lowest prepay that and But It quarter the change. quickly it's is fourth years. that our the we you’ve seen change control. think So could very in probably could our

Collyn Gilbert

one for XX? continually what's have kind question final loans CRE so of and in CRE loans driving just then, been What's And declining. that outlook your

Thomas Cangemi

as on books we maybe run stable flat grow CRE would CRE. have we depending say and conditions. multi-family say very evaluation. will the faster I market Obviously overall, a would I probably year had to robust ten than indicated I

So we are very portfolio. our CRE on selective

the in a exchange Our average are CDs is side area. that lot there are loss CRE minimum and of so in a multi-family. selective half multi-family. off lower transactions driven transaction is losses CRE Multi-family The is not of business so historical that of are the than dramatically we lot and one and very

cash seeing bar not a are for of put work. buildup in You if other the to money have comes to they CRE. a words In

and commercial transaction. obviously either it's less estate/multi-family it's So real

less marketplace. view CRE will that transaction in the having also drive the So

Collyn Gilbert

leave will there. I Alright, Thanks. it

Joseph Ficalora

welcome. are You

Operator

Thank you.

closing over end Mr. the We turn our to to back I like of remarks. any call have reached would the Ficalora for question-and-answer session.

Joseph Ficalora

again taking... you for Thank

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