Flagstar Financial (FLG) 26 Oct 232023 Q3 Earnings call transcript

Company Profile

Participants

Salvatore DiMartino	executive
Thomas Cangemi	executive
David Rochester	analyst
John Pinto	executive
Ebrahim Poonawala	analyst
Christopher McGratty	analyst
Sun Lee	analyst
Eric Howell	executive
Bernard Von Gizycki	analyst
Reginald Davis	executive
Mark Fitzgibbon	analyst
Broderick Preston	analyst
Manan Gosalia	analyst
Casey Haire	analyst
Matthew Breese	analyst
Peter Winter	analyst
Christopher Marinac	analyst

Call transcript

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Operator

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the New York Community Bancorp Inc.

Third Quarter 2023 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Sal DiMartino, Executive Vice President, Chief of Staff and Director of Investor Relations. ahead. go Please

Salvatore DiMartino

quarter Good the the Regina. team. the for and you Pinto, Thomas several company's thank conference by with be Thank and along Chief President team morning, executive Financial of company's . joining CEO, third the of management Today's joined Bancorp of results New for leadership will call. led by you, Cangemi, discussion everyone, XXXX company's York members today's John Community Officer,

the like I'd today forward-looking Litigation begins, meaning and language we release presentation discussion today's may remind team you New harbor may made the and disclaimer Before Private may Reform the press are in comments us. statements which more and the certain to XXXX. uncertainties Such statements make risks by review information safe of affect Securities that of of about the for to within management the Act safe forward-looking include Please York Community subject forward-looking harbor rules.

I Now turn to over call Cangemi. the Mr. like would to

Thomas Cangemi

Thank Good morning, this for Earlier year. today. solid of Sal. we quarter thank and announced third us results morning, joining operating you the for everyone, the you,

diversification sheet both of efforts our of the sides balance reflects performance legacy banks. Our arising ongoing combination the from on X

Among and this growth, a loan margin. quarter's trends highlights was stable significantly interest deposit good linked-quarter higher net

funding wholesale borrowings both declined. improving and mix.as We our also in further made CDs progress brokerage

virtually total from of While previous X/X deposits, unchanged noninterest-bearing remain deposits approximately the quarter.

merger-related expenses. of net as for diluted million per reported income or share, a net available to From and $XXX common stockholders earnings income we perspective, adjusted $X.XX

consensus. Our better EPS this than $X.XX was quarter

and the much compared came to increase The of up the $XXX at last of asset of to X of driven compared The basis range quarter average noninterest-bearing the and guidance in a interest to million to balance higher interest net margin. drivers well our from NIM One rate quarter this higher X.XX%, million. benefit yields a we higher deposits points prior as by ahead continue quarter. higher environment was $XXX was

constructive the continuing positive asset interest of on going the We funding forward impact the margin higher remain net shift our and mix yields. in due to

Another driver our up in portfolio, quarter in finance declines was businesses third as during were C&I modestly loans the homebuilder growth. led finance, the growth in loan specialty other our Total by and businesses. offset

to total a Overall, the million a over billion, of or reflecting $XX year prior the stood compared represented loans, compared XX% the ended at to XX, we quarter $XXX ago. loan commercial portfolio total X% where quarter. At up loans diversification significant September

to Turning now deposits.

third deposit billion Total compared $X.X June decrease custodial compared the was trends quarter due lower $XX.X deposits million quarter billion, at to were billion Our transaction, the related to totaled which the deposits last during $X quarter. Signature majority of the to $X the stable. in decline The were the to at a XX. of billion billion relatively $XX.X $X end

In addition, billion previous to $X.X compared the deposits quarter. $X.X to brokered billion declined

linked-quarter on were Excluding items, down less X deposits a X% these than basis.

the to rate to can of billion they or approximately funding billion wholesale borrowings or $X either quarter. have previous be borrowings are a wholesale quarter, In fourth nearly FHLB. weighted at XXXX. compared X.XX% maturing our called $X.X year-end declined mix continues XX% as XX% down the Additionally, are that average we improve Overall, since of by

asset quality. to now Turning

New Manhattan, More increased other York, and increase million related specifically, quarter million $XXX XX% total prior $XX million $XXX in While the totaling the X which office-related increase compared totaling in the to million. delinquencies CRE or declined nonperforming loans, portfolio. was early in the to to the loans was to stage X due significantly, $XXX of Syracuse,

XX to last loans total our average increase our mere NPLs, net strong points remained of in basis were asset loans. as to metrics compared a points up NPLs quarter, also X charge-offs were points or the basis XX while quality Despite basis

see continue relative our to the to metrics have metrics among multiple underwriting our X served quality can cycles. peers. rank the you our and as and on to XX standards, Also, Slides These industry our which us well in investor best solid material, strong business reflect remain conservative presentation asset over

Turning now fourth to quarter. our guidance for the

to XX%, income net expense range NIM range $XX We expect on of return in million, of of million, annualized $X.X the billion rate to and on tax year the to of a sale full gain MSR XX%. the of $XX billion, loan X.XX% of admin X.XX%, million $XX assets operating $X to mortgage X%

the quarter, the brand a new X all of modern during best we legacy Also combining unveiled elements and logo banks.

excited Our new flag brand, this our customers new and culture as I'm be X not as stock. remain X brand, Even X new well. the a We behind about it helping excited will committed it teammates thrive and does and to logo meaning the branding, we to change. move bank a as though are teammates

Finally, special I a thank all teammates. to to our like you would say

to be any line Our best to But we you please may later Operator, or for week. us within to the customers. our not during questions. do get our We'll open have. time all would if free questions and don't, the that, call we please the of results you to remaining. would today our clients happy feel commitment be very their dedication and possible With without to answer

Operator

[Operator Instructions] the question Our line Rochester from first with Point. of will Compass David come

David Rochester

that? what in your What's custodial deposits guide. for quarter? baked those for balance the assumption the And margin average into was [indiscernible]

John Pinto

Right.

So coming paying are fund big on They're that quickly. we loans. deposits as the ones the pretty talked really the down about quarter last banking move the custodial from is

holding. that we're So the deposits are those

sale you portfolio. the of that may FDIC announced know, As has the

of this so So month, days. transfer next the the end will of at that couple in

X, on related number going banking the multifamily we're of be because dropped than less when So November side. custodial the and the the dramatically to rest loans, paydowns will there's we fund you're significantly the CRE see hit to deposits and that

$X of the end the balance the then billion quarter billion average dropped at So and November. into get once the we is around for dramatically quarter, $X

David Rochester

So this the margin guide remaining. much deposits custodial include really doesn't in way

John Pinto

. That's correct.

Operator

with from come line of America. the will question next Bank . Ebrahim Poonawala Your of

Ebrahim Poonawala

the about well rents to and in more maybe reserved rent for So on talk again, York. we to your landlords concern your that that's then also multifamily like lot When pristine community start these the going how about, to health portfolio, around the And of book? we industry, quality. hearing you loss record raise content the what is Like just had a the mean, New think asset office ability the on just your around secondly, hear relative limiting expectation address asset regulation I the one, quality. the landlords. Tom, from book for track squeeze

yes. address if can So we the multifamily of and health the landlords, the office

Thomas Cangemi

latter with first. start I'll the

book. the success We've obviously, back client since with significantly rent our very seen marketplace changed, and So that laws 'XX in changed monitoring significant the we've carefully. has had been

Given the the confident fact for business we of business these their strong strategies. long this But they are long-term managing have generational very part. that multiple a that history, decades, do have of in-place, very book families most doing in business, a for been a job

LTVs capacity seeing to having we're and to fixed rates or a With continue on that reset, and we reaction rate option, [indiscernible] ability that's have and the either the interest pay. We're consistencies very payment. being we're a monitor seeing. portfolio the we the carefully, low higher then with strong to it And seeing said, of option what

year in we're so these over but have through So impact cash and any risen seeing space, all a significantly with tune. positive. manage able the or flow, trends material well rates any past which the have not delinquency at does the is an it in Operators have been are multifamily that. to Again, to

very activity has But of the reality the been slow.

activity activity this since here I've at XXth and XXth, going as at say to would all. the much now property it the I the been my comes in far is to I've as ever bank, seen when haven't transactions, my seen buying selling. interest XXth year year, slowest We

static it really whatsoever. monitor very activity we or And a relatively it So carefully. no is

in of time, up the same the point are At highest city New rents the York. to

and managing an they're rentals environment. strong through very getting inflationary we're So

had positive it's to a different we're a there's unit, taking So the question of with rental our activity the very portfolio, impact the law but market free units an respect no changes to that business even despite stable model. the far as it how rise how valuation, relatively statistics and significant is impacts And that been interest impacts monitoring team overall the rates. and as it's our in cap rate,

CRE Manhattan? In portfolio, about right? overall have respect total to the $X.X in in That's billion Is $X.X billion. CRE, we that about

John Pinto

billion. $X.X

Thomas Cangemi

in Manhattan. loan X in [Audio the billion specific This Gap] is Manhattan $X.X

Ebrahim Poonawala

the bank. side of you're a go? more much how good you making staying There's flat? both do savings Gap] lot expenses [Audio on still the And going lot at acquisitions, investments. feel It seems like to about a to

So update I would appreciate an there.

Thomas Cangemi

don't start picture -- quarter to and John. pass pretty then for I'll last The I was our is baton guide the much big I'll XXXX. the same that is

given haven't the XXXX We there. are We infrastructure, indicated, out investing, billion we as And our our past clearly, into $XXX understand the obligations build the you now. guidance.

lot years on all billion we infrastructure, of the are clearly a have over to sure we of making and at company process, spent money focusing making this So there. point $XXX the we get a requisite of that the

So understand there. we the would path

we're time, partner regarding investing transaction. market the the in same the also At with Signature into new

we're and add here are you base. talent saw and as we With a ramp-up adding strong focus through expense also . obligations have additional the ratio, pass to but to second reality very the it very John. the why this we third that to of quarter. The is I'll is of have also strong teams of we $XXX billion in make that history a pools history, So PCG That's the a being cognizant plus efficiency sure institution. managing our a that, a that just

John Pinto

when to Yes. how are about given tailwinds and we've it we that talked 'XX, for is haven't And into guidance but compare it both 'XX there yet headwinds specific 'XX.

we conversion mentioned, back over for see quarter, the our the then billion. the PTG the benefits on some then of have from groups signature additional we going both start office first which Flagstar Tom expenses scheduled have the just that. the base we'll conversions, And along to so after with definitely pressure tailwinds through in up And that. are that put expense systems we conversion the systems going summation and being adds $XXX to As have

later So year. those benefits end the the be will of towards later

XXXX about at guidance but of right kind next think that's we we'll how the our give quarter. now, . So

Thomas Cangemi

would comments are we portfolio legacy One still add unwinding John's that to own. is we signature the thing don't I

that do So but costs will associated those elsewhere. that to part assets have we institution be the that, we favorably as impacted with assuming do --

also well, there. impacted to as -- that that's So assuming also year the advent next will be

John Pinto

put FDIC sale. portfolios has Yes, the that's right. out for and CRE The MF

what quarter, comes be to this bids that we'll pass. expect . and We to see happens when

Operator

. KBW. Your next question with line of from comes the McGratty Chris

Christopher McGratty

a a the term just the just help with levels, book? the telegraph, assets just you deposits Just you're on maybe balance can question of John, that of cash on with overall moving the of building pieces help the sheet, size for . but near movements you couple quarters? bond lot next us targeted earning

John Pinto

Yes. problem. No, no

That's the trend Really, next March to been in have a continue and portfolio. build towards that quarter, it's to neutral. securities, the each to securities, XX so. closer And between We plan asset-sensitive we closer asset very right get securities here shift or liquid, to cash slightly here to some started just now, monetize we're since to government and have neutrality quarter our will get slowly neutral. try to liquidity sensitivity and just

are think where perspective. securities have This when from I interest $X declines cash side. we'll a you billion cash about the earning and within where is we or be from So so stopped at assets, look basically in the

that purchases incremental see will So be drop side. offset security you bit, on by may but a cash the little

drops liquidity So that are on and the say cash us the I'd front, right? large behind the

That it paid opportunity limited lot deposits on best certain bring look a more the going we'll for then the the have in portfolio loan company, forward. loans. where where side. areas We've the debt to And we makes the down sense side, related of wholesale to those be grow to brokerage of will strategically

strategically. you going then -- limited from very forward the on say, loan combined would securities I it where and look -- side the at So some small cash if sense and change makes growth hopefully, some

Christopher McGratty

Okay.

I it But related quarter. you everything timing it's if up. quarter follow but $XXX the million -- during lower is be on than Obviously, like assets of The fine-tuning... in zeroing in assets those just going the just quarter. Just had XXX, any you assets, the when earning fourth kind like of of could move to earning feels

John Pinto

significantly the not million. Yes, than lower $XXX

on the really I to us driving much We cash because in total number be around the securities that expect side. don't it right more see on

come as expect deposit able to here. side that will hopefully, our on So stable be . we'll starts build that to I be success pretty the And through.

Christopher McGratty

then the And on maybe X last Okay. to just loan the deposit.

bit. you is How retooled a about thinking You are high? little it XXXX that . entering a

Thomas Cangemi

would respect in loan-to-deposit to ratio rightsized commercial transaction flatter We thrift receive as the so on participating standard. of lines line going in had a Chris, a Tom. the getting change in you've forward store. to really transaction model. institution say commercial new the high banking and goal the focusing more a relationship right? we is The it's here banking very the is So We're historically, ourselves all to mix. different company. that history. opportunity I traditional be a had That's in focusing We're strategy be had We funding model. story here deposit our We're on the recognize that to to businesses, flag model a

So the level here to bring that is XXX. of inside goal

focus industry in goal here best and the That's it's continue more bank and on model. a commercial to practices the

So just relationship we're there's the not make lending. there umbrella X these It's opportunity focus that's our going own. coming level. great house said, opportunity If we're top take under that new diversify proud Board deposit and on of this deposit relationship relationship, of to the lines a focused X the is very probably no and at the focus the banking. to from It's on to institutions to that

side. with on model, We've X to filtered of We be and lines see to all going the it that past years. that's success crease going the businesses. tremendous be actively had the of strategy to That's multifamily transforming going throughout forward. the

Operator

JPMorgan. question from with next comes Your of the Alexopoulos line Steven

Sun Lee

My for question on Janet first hires. is Lee This your Alexopoulos. is Steve new

. it seeing hire First hires out to As to any you more over Republic, here relates term? opportunities the teams private are banking of new team near

Thomas Cangemi

Eric? Over . to Eric.

Eric Howell

XX in we've Group hired So total and support XXX directors now staff.

the We're opportunity the we're So tremendous to to talent there of quarters brought in about And a couple we've the institutions, that board. was do is hire. this brought marketplace service-oriented last really to on a that. . that order team over tremendous opportunity members happy excited with fill the very board and we on void massive for truly in

Thomas Cangemi

had I the business we would on tremendous point of That a the transaction. throughout Signature The the summer add solid. to the strength the legacy stability stabilizing that. when just announced are team. was teams We risk

indicated, So there's an as Eric been stability . as and opportunity well. as

Sun Lee

to Okay. next a the leverage investing have Great. as you're to mind? be And operating you obviously growing target and able positive into Is that franchise, do year? that you expect in achieve

Thomas Cangemi

plan. Eric through kind pros. of of through the on thought I'll mechanics history. the the mean go I we some let That's

upon want as You've how run as done this build into for far it quite But rate. time goes the you to that. some

Eric Howell

you Well XX of months leverage, out. XX if yes, team about book . months, positive but XX look XX Each we'll it usually usually different takes a right? different, business to underlying client base, has and achieve is to

Thomas Cangemi

we to of But embedded close portfolio on within signature franchise That's from is the the the X. team franchise, which deposits board. tremendous the billion XX% deposit for came new operating legacy to have members $XX close base team of leverage obviously, to that at probably the I XXXX it's that think managing that's the of close has on

Eric Howell

right. That's

Sun Lee

during progress the the of an Has And XQ in quarter? third on noninterest-bearing the bringing you million can give deposits versus date? second update it. maybe it that have you to left that the accelerated $XXX during signature us and Got back brought quarter

John Pinto

again mean, we're million we deposits. in in nearly Yes, I brought stable. really $XXX

in seen our back. in sure. difficult for deposit of, continue environment the the And we've face obviously, they careers flow that most So that's to

that very We new So that banking teams and pleased the traction in the as growth board. banking the both Coast we're East West with Coast gaining. had FRB we're teams brought on we the teams as well

seeing areas growth we're So banking our traditional all . from teams. of

Thomas Cangemi

summer over well the for connectivity see between meeting spent as I amazing shaken hand client of And was it teams client factor comments and as most the loyalty X,XXX behind and that. PCGs base. the summer, I close and our to the I'll to some just the here. the new add both PCG have

still when deposits. leaving some able we're there. market, we're are the but some and We're time through the Flagstar, pleased comes in out they . Accounts the relationship, they're significant proud did may stability very the with that an actual So cleaned on They a the not proud as team. see to very adverse move on base. the opportunity be here excess the liquidity to institution March of the as it to significant far they're go but of and success of

So higher what been original step we in, you March, very further because that we institution base in transaction signal And positive can expected. for unknown which it's when felt stable, recall is much when just as the came time. a a very did factor we the was the mechanics, we would as there tumultuous runoff at into a we be from deal

Operator

of the Your comes with next question line Deutsche from . Bank. Von Bernard Gizycki

Bernard Von Gizycki

purchase on could So expecting? just was was . Flex and accretion, what And XQ if on on much Signature. between there us your you are guide NIM, XQ remind for the what you accounting NIM, of how just based the split

John Pinto

Sure, Bernard.

it going in we did because I you the around on we don't the know questions know accounting you some get add look, If slide, earnings a if to we're saw accretion purchase presentation that.

quarter. $XXX we're Flagstar is about a be substantially. not to in, that about that a bit XX% perspective, million the From in XX% fourth came was little forecasting lower split signature it The in it transaction. expecting and about September. So the from than

or high seeing how rate We downs. so transaction, run a some we're the from Signature another given pretty believe quarter that at pay we have

get mark level right to X-year . the here as start to December. piece close of $XXX million. down pretty we kind Flagstar the where we in it see that slow be to that's now, will We around to But expect

Bernard Von Gizycki

then if I Okay. you kind of into you noninterest-bearing could deposits guys you could have on initiatives as had. . talked the trend wondering about might kind deposits, next the just of I that have you the us a just going think maybe Great. past, pipeline Service year? Banking of you in And as know in remind what was how

Thomas Cangemi

interesting we future. about is on of the sometime for have then that defer did have early the actually so us. I'll start successfully there's we will We be can coming the excited mention to as and of be well of Reggie, I said, share just should did being some the compete you the in but we're that That Reggie we within lot fund. in a year ago XXXX. a many lines on thoughts tell opportunity because that win a in strategy front to project reality and California unemployment institution. opportunities. the pickup that That I'd different Davis will nice love With do what businesses as opportunities really

mind? Reggie, if you don't . So

Reginald Davis

Tom. Sure, Yes.

more a said. So a around what in add lot to Tom as to we service have addition banking

kind comes you in that an know, of from As business opportunistic standpoint.

going So try about project But a exactly out we business. prospects that pipeline, is we we've really where to don't good of the winning got our in be. and lot book to feel additional

that we've bit And little retail is I environment. of more tends little success I more a about given business feel the a to which had be bit lot particularly steady, that is a positioned, this really where year in good our printable. think tough consumable, -- where

really The a of work. lot team has done good

of if structure, process teams skilled culture same well, that branches and this positioned it It's will XX banking proved where experience, the both under went great a sales Combined branches. think model And create the Flagstar be of franchise, its We're branch about of relationship office, to . That's change now the really value, branch brand there's back are, business, XX% brought still in of you across we a book. uniquely about operating model actually more legacy with our no accounts in to this tremendous in that only a talked a Flagstar really the That network leadership the of XXX We the are year we're together year. client amount that sales and able and stability consistent of in introducing about. Tom lot service upside model. kind open disruptions. same branches. entire Our designed

have online capability. Next year, we'll be able to

we'll That's year, sales for balances, footprint relationship portfolio NextGen had operational know this This increase our We good all So success going less marketing actually of additional skinny that acquisition. the We we're impact. the introduced this see then ICV is next in We've well of be Quarter-over-quarter, client tool. began new year, million, our high validated. those down year, had is AI-powered version in to entire branches. across targeted performed model. that which with touch tool, first increases only we using And that account digital new in fully which year. Most tremendous footprint new drive net our has year, we down will acquisition. feel our NYCB enhancements really a the called That well. $XXX the we've with for X.X%. client than

points can our up average of it's January cost Fed -- weighted basis XXX funds increase since You the X.XX%. against get only

with that pleased really the portfolio. in we're So retention

is a year, which been top industry from the above at is XX% And perspective. and that we've at think X%. from had class from of story news an We August kind renewed had rate We another than renewal maturity perspective, CD of our rate to good book X.X all of September. I average CD on went rate between less XX% retention retention XX%

So positioned terms leaders rates. of the below in of market well kind

to we've be So this success year. optimistic we of around really It's deposits. stories the got X . continue

Thomas Cangemi

Davis. Mr. under lot a have we see can you Like

you is Reggie. driving I this institution. for energy the and the will institution the focus new So thank that you, tell

of opportunities us. So interesting clearly, Reggie in has a lot of front

excited So team. as we're whole this

for you Reggie. that, thank . So

Operator

with will come question Fitzgibbon next line the Mark our Sandler. of from Piper

Mark Fitzgibbon

for reappraised properties? quarter? out? have this you I in was you And X million the those there have those it singled wondering, specific . was any Did reserves credits provision $XX X any of

John Pinto

Yes.

properties as recently nonperforming, X through those they of both go the of process reappraised. were both So

we the appraisal. So And if the the Syracuse on $XX the to on charge-off most of million, restore that bulk then the allowance loan was recent really at look the provision based, course, was, one, you Moody's of then as macroeconomic some factor modest and growth for qualitative the took the as changes had well CRE charge-offs another factor some small that modeling related like the we office through portfolio. that to

kind again, it on to apart the that that appraisals -- for both we're loan, was loans But have when we're of take process with and of very Syracuse where them now on That's how get holding in taken them. broken XX. to recent yes, those where is decades we charge-offs. we've especially write-down that we we the use comfortable same believe,

Mark Fitzgibbon

follow-up you this that if you it's But unrelated. do Okay. And sort a thing hard institutions hopefully additional a they now, along came if they just . consider to transaction? conceivable could XXXX, some troubled could and you doing were think of but then like imagine there may in failed acquisitions right do bank seem another And don't.

Thomas Cangemi

Tom. flat will you building can were we launch tell starts conversions with flag much expecting have to lot We of is and from want it's on We're which work very to want right? to We order. the able our get a new in systems Mark, government I we pretty be don't good on imagine, get facilitate everybody, to accommodative and transaction. believe on. are laser-focused as along you we came a that we busy,

make We want integration we have that we to prioritize. of sure a lot

and to lot in here, is flags of very is growth that we're tell can pleased participating will are a the of where I we're lot and Eric busy. members be billion have Reggie company building do team in with team we have growth. billion, all that and of that's we'll hear us, a and going unlikely we and the you you work from opportunities and So And $XX with front we Davis to great $XXX-ish we're the

the back So $XXX where we us, have of very it office, to a priority lot ahead of institution getting a proud work we feel And us be Mark. the billion system getting of conversion, the that's of that priority.

Operator

comes the question Brody Preston UBS. with from next of Your line

Broderick Preston

follow the on X prior the I LTV . wanted loans to John? reappraisal, the charging LTV was on office to reappraisal wanted I just credits. did And those ask you on those what up go prior to them where down? to

Thomas Cangemi

me defer in He's John. to let Well, actually office. my

you X do address John, just . want So to those credits?

John Pinto

originated in the the the some at origination the were larger than Syracuse Both vacancies, the of but they activity pandemic before time time -- was those city impact of and credits. both but more time quite XXX%, the were reappraised, that XX% leasing pandemic, credits XX%. those of obviously, the obviously, we and At asset

in and active feel If Syracuse that had move building to took through were we'll with step the a will be to very to that And We here. work significant deal elicits a but lower here. try have it not, can we'll tenant. that we'll workout get the fact the to a kind process. we of work along if level through major is happy, this that the people see he willing were wants law at this good will to valuation, appraisal this a work was we unique bank. as iconic with go about updated. We the we existing the much

Broderick Preston

Got it.

for the I just to that sense look the wanted to like portfolio, with kind those lease the Okay. office a wanted a issue And of portfolio? get an was rules have get it lease -- Just rest like. the what if Syracuse the leaving tenant caused for a for do look for what of idea sense you rolls

Thomas Cangemi

we of Manhattan, We So good about to say from is Tom we an of end in when billion But would cognizant got a a I refinancing work time this that is year well portfolio. have monitoring. we're This statements. financial big that. as pretty year, is updated it now is of had in doing enhanced until Manhattan, the $X getting very coupons we talked this billion have where an to again. picture, coming about the process. to you company as financial of due the the tenancy, -- Feel The about of new respect that we're that ensure through statements. going lot comes environment lot to evaluate $X.X what's

the credit As the macroeconomic updated the strong portfolio of historical mix opportunity backdrop a we've John CRE. typically for very unique sponsor-driven indicated, is Historically, very particular environment, service -- on the strong a bank. family clearly, deferrals. And comes CRE to it in have this the to had strong ratio. multifamily strong a opportunistically basis, average towards tied very we is leverage exchange But coverage a market opportunity XXXX buy a overall into tax when and debt that actually and it LTV we overall

to call time going we're see We'll particular carefully. this trend very from You're one We yet, a don't but to one-off. a one-offs time. have monitoring

Broderick Preston

Okay. for X so, And the a on given . you that. me, could than for clarifying hop just earning if guide. John, that bit of there out, a and lower Was at just stable clarify average period $XXX kind moving then end the quite the quarter? X million asset parts more I'll was ask And fourth just the

John Pinto

Yes.

securities expect in significant at we're items. perspective, is average an flat. and that from we will be declines pretty expect what looking So cash those don't X We

loans. to between be to -- in little be bit We a consistent. the which quarter-over-quarter. It's quarter. shift don't close our mix was expect on think cash nothing past. we see loan to big as course, a going in it little deposits to and here, we going just loan that. of to drop . be still think substantial, the just And relatively depends, don't expect mentioned, like growth that big success There'll do have again, we've we're of a as I of declines I be can not seen it the some in once in but a securities bringing why Now pretty growth bit is we

Thomas Cangemi

just sheet that we again. would and I it's how the put add the of the plan year-end. point, transaction to announced Tom receivers we coming Strategically, see we at out when a balance

Now multifamily actually on we're very will businesses seeing businesses. declines is have the some slow. the focusing businesses CRE. The particular, And in that business

lending. comes rates portfolio. it the very, You'll very see growth residential on C&I of the in the optimistic overall interest offset opportunity We're when about to

line, the upon expand on Smith there. opportunity can Lee who the have We

comes much a lending. It's market different to when resi it

has our light January. been back bank sized in So mortgage

business, money but will continue. line making clearly pull. actually to balance of have services levers which we're other in in common And is the the environment. financial in probably not today's the sheet So of augmentation

probably and at on the CRE be of but and gathering. their where X-year You'll proactive, market. than we'll from will wider and about There's deposit a focusing be shift lot spread proactive activity not away will is a balance because the the of is multifamily off of see sheet relationships just government government spread treasury basis points the be less and more XXX our

business Lee, to what pass table on baton finance the you going So banking we're C&I and the the that bank It's side. the opportunity that, indicated, be to to like getting a the in pickup to a mortgage on pickup to all homebuilder see at just businesses. going update going I'm deposit strategy. back good some respect lines and on businesses some of the the I the we're really and the corporate seat over market. as give as seeing to the far we on good about banking mortgage And flows tied can relationship sponsorship business, getting With

So Lee . Smith?

Lee Smith

Tom. Thanks, sure. Yes,

number a think there's opportunities. I of

I QX, think, others And in XX% on some We've if basis to I market, were able the player And market seen And dislocation look points certainly account down an executives. very quarter-over-quarter. strong the origination think X from locks TPO a bring about just or mortgage We've in saw major seen exit. X.X%. been our margin in expansion at quarter-over-quarter. exit. We've benefited from we've QX channels. down first X% point of actually sale of view, of you gain the only all, we versus was

We've a in new clients, some getting and share existing from we're as greater brought of wallet well. customers

And we an our view, business. So point profitable. from pleased dislocation high we're includes on this of of to in warehouse XXXX. about that XX% Tom's return MSR very which cost benefited is from about We've origination business, And the rightsized we've our spreading origination infrastructure mortgage the infrastructure point. the to the out side also operation of the That lending environment. is taken on

talked think, that and lending you Thomas mortgage view. plugged of look various finally, a X%, that. that mortgage then $XXX and ways And exiting million point were been benefit able at you And the from And market and so at down dislocation as were I view average we've about ecosystem or people When warehouse again, space, of servicing, deposits. the mentioned, was up from a the I look vertical the outstandings all as point well. to in XX%. but an from we've seen origination, as to

$XX there's There's came from and and on $X.XX the servicing And Signature deposits are billion billion, subservicing of platform. billion about team then got to treasury And you've coming signature. mortgage and of acquired $X business all that from $X.X part over loans that the billion the -- or another that coming $X.X as we've the between acquisition, billion somewhere then billion servicing from vertical. team from management that $XX we the cash that got

Some of those are escrow deposits.

balance . billion $XX balances X.XX those of can over that we $X.XX move deposits day that the on we're with we and to deposits typically ecosystem. think in, vertical are so attract $XX ecosystem working the mortgage coming and time out, billion and And the from between sheet day billion. that from more that billion But

Thomas Cangemi

low potential of class growth and very especially opportunity that . on a get our the us we're rates, XX-year from and and focus we as changes this other at a with to ARM have opportunity also The we'll duration market the balance in interest look that customers really will opportunity, want the tremendous underwriting comfortable on asset which at very market some and looking on are be on I have business We LTVs opportunities. that the with team tied is organic given is shorter now. add business. hybrid right company, the for the for the XX for to do that clearly to putting look away an this which members focusing opportunity bank in opportunity sheet new a joined

Operator

Morgan question comes Your next from with the Stanley. line of Manan Gosalia

Manan Gosalia

spoke X.XX% down you majority being to X.XX%, the the about flat. of NIM to from earning deposits away So stepping custodial and about X.X% relatively assets going and

NII an you're guiding what like quarter next sounds of $XXX million a bit to. so little is roughly over it or So

about a, broadly, I which more $XXX income for that net I point So are that do next is you . b, starting have through the million from can XXXX? run And year, good think thinking interest you grow plus rate right? for how number a

Thomas Cangemi

I'll this the I got picture, big the I than like start we've our and [indiscernible] from tell expected pass and overall transaction will X% the you, it time to CFO. John, seems I'll margin.

we're regarding comes we there the in ago not asset a obviously, still year We're legacy of a So bank were optimistic marketplace. that we very don't diversification the future We that guidance. results on We're pleased mix. our But the with model. sensitive. far guidance to thus future thrift out have when asset are same it

lot We coupons have higher of has that diversification spreads. tied floating a rate to

the We have tied marketplace. unique C&I businesses to

We have, Smith's the Lee businesses well. business as on indicated, on opportunity as book we has of an hybrid

have within portfolio rates significantly be the So future at increased. asset and look when diversification the it's to going you growth,

on the billion due Just CRE over to multifamily you some $XX months. the we give next data portfolio, XX have coming points

about and it's XXX. XXX billion of of alone, multifamily due year coming CRE coupons Next $X.X

the yield. You benefit bring asset that market. powerful a That's for the to

making on steps customers loans the going $X banking. don't to with that with is know the step going have going not what's other coming gladly government relationship and work to we're focus going for $X side, get relationship customers our bank to sure is banking on focus to due. the year And side. between as we'll customers with be the going deal in, if in to the And billion reality to is want deposits. it consistently government who stay goes But can we back That to to billion carefully our comes that the we're to are each all very those

there's And coming with below We're in coupons are off partnering loan just relationship. the really not well market. no that that interested activity are

have is that not going price portfolio an really drive to opportunity profitability book. that we in up So to growth and

that across spectrum financial the businesses business The all and grow of other Spreads given very favorably services seeing lines current the of in since we're banking. spreads dramatically March. here changed can have lines

going environment. we're quite interest that indicated, multifamily XXX strong rate a it have to have spread. be I As CRE are side, up proactive spreads We're not clearly points very business to bit but given all on basis that. moving line spreads the on economic We're the

that. to So being said, pass to . with baton on I'll the that color John add more

John Pinto

Yes.

be it look that to on in we've the drops total the balances sorry, expectation. that, is down right, we're due couple see seen, at I'm declines earning last $XXX down, much as the million our we've about the to That of just that continued QX quarter, $XXX on not on spot will assets cash. not to total assets The quarters QX in we're interest you the -- billion. going on as going . The paydown assets. or fourth the quickly was Just seen see when average in still not to

that as decline So to We the think the were hitting much $XXX don't here. our the it's not be we're rate starting than We we'll as we balances lower believe XXX. billion of this is X/XX. to just going exactly average of spot change on drop that

make want . piece I to So that's only sure the clarify. I that

Thomas Cangemi

We to would go on rising continued add . But I changes of want moving away legacy neutrality, it's history we're going to have agnostic point we're interest that build in institution rates. sensitive say will sensitivity. really focusing other very our the this this being strong heel. focus model, get as businesses that we so margin through under significant rate X margin want creating The towards, or up asset benefits. we these -- sensitive Flagstar. liability institution changes forward on environment from ultimately, a of asset where be new to to significantly liability and of really rates. to We indicated, the thrift and/or rates had We're rate was current we're Achilles going to a sensitive, the run down, still the John that That's as interest

Manan Gosalia

basis to coming That's would points pickup there. next helpful. XXX The due that clarification year, . XXX those or on the be so? loans just a And the over loans yield are

Thomas Cangemi

books they're XXX coming so next CRE now, there year, for is right mean and XXX. I due, multifamily

the with big it's what, XXX. So probably market That's a is right XXX pretty close XXX, to now, difference.

to different that proud product we're with offered our them. work customers to have which We mix, we've

We to new have is which a that the government product structure bank. kind what's done synthetic being the a that's of market, mimics in

positive lower sulfur customers our We has years will ahead, they choose the to very have be and opportunities, that feel rates. Most on of in for lock want which been when long. they'll repricing, option there their in refinancing the

are ones are So on higher that the they're much typically and to with us staying going are waiting sideline, that the the government. interest away ones today, paying going a the rate

Manan Gosalia

Got it.

like at and with then another expenses. year. the looks high associated question launch the just that benefits that Can come And It there expense size signature from point you some expenses come on will the out in your flag is of Okay. store that? next conversion servicing .

John Pinto

benefits as happens of we also XXX the FDIC see rest benefit the those and excess those and the call that we're we cost transferring some some in January. Yes, side tailwinds have. headwinds no do that from to purchaser at But as have on our XXXX guide provide as compare conference what when at with multifamily our end going CRE cost well provide you full us will loans, the to a then servicing and up the integrations on the . this we to a quarter, if -- in mentioned, longer systems next And reductions receivership 'XX. depending loans, fourth we'll both

Operator

question from with Casey next of comes Jefferies. Your the Haire line

Casey Haire

another follow-up beat I NIM. do the to sorry a So -- horse, want dead but on

the custody be that this to out term to So cash you near still $X but flat, understanding in going have deposits here. if run expect billion are I'm of you directly,

[indiscernible] go ahead. are that . how -- ex so billion? that DDA Sorry, So that what still down given you was fund So going custody is deposits? to that is the $X

John Pinto

correct. Yes,

and depending cash private at We to be right? Reggie are the and deposits. teams in is expect the you hoping combined about on banking securities changes relatively multiple flat was speaking and balance sheet, consumer the bring to Eric look when We on the from what in both them side.

have borrowing to make quarter sheet that we that market, any we in go can for brokered this each CD on the or up the just in with market balance the appropriate either ensure process. So shortfall the we liquidity wholesale through

significant period in and just growth the But drops what changes comes in look we'll in, the -- expect how and we end market from don't deposit quarter. provide see conditions fourth a significant So we balance. take our

Thomas Cangemi

to We We about out the had point. had weren't to a we were add has. one industry take of Just chasing liquidity. weren't deposits, the right? a step rates in When March, different ability back. you lot think position, we where came a We of chasing

proactive paying been It's as businesses. going deposit focusing to a of get on on go we've organic due public to our borrowings very strategy . the lines strategy down back broker and initiatives brokerage, high-cost So also receivers forward. XX/XX. of cost an the that from all deposits. transaction out of strategy trying came to to That's

Casey Haire

your then does the mean, more most for to in guide upward guide anywhere on for pretty a $XXX but The is flat expect from allow quarter. think expenses. I And quarter. just of pressure in Understood. the of wide number, of X some I us a 'XX kind fourth range expense fourth Okay.

Just . $XX another wondering what so? would drive million that or

John Pinto

that. where the rate Yes. we I quarter given wouldn't third out to in run would came above the I think that expect be

middle of to end as close really fourth than right, us of the guide. of the that more the guide. better to the fall in mid- would well that that Gap] to get [Audio So quarter to the low

year, would the left, the pretty of quarter have wide, guide X guidance. I but it's the I understand midpoint the on only when focus yes, for you So .

Operator

Your of Breese with Matthew next question line Stephens. . the from comes

Matthew Breese

was could Tom, I quarter. you fourth the on the due in wholesale hoping borrowings touch coming

calls. [Audio they assuming think near Gap] I a had we get

Thomas Cangemi

John? John. to . it pass I'll

John Pinto

quarter. in about Yes, including the for are of where billion $X amount, the rest billion $X.X it's this at puts that puttable that it's footholds. of have, the we given X%

put. be they will expect We

in to them pay have . here. refi off. unless we we'll deposit that go So would billion we refi expect deposit $X like we Or off. forward them We'd I have expect to to pay if them said, growth, we growth as the market

Matthew Breese

anticipate custody similar for should XQ $X now. not the keep much you cash in Okay. feels deposits where XQ. the to that want really from lens running balances And to movement . billion we signature off. cash to It like

John Pinto

on-balance would and growth, seeing deposits Yes. we together, stay look makes type the with make what the -- want but come depending liquid perspective to we deposit look you of cash in, When $X billion securities. that at that and the on sure from at sheet securities the right. of level we're that's an Around cash I think I sense

sense end think on where on around $X I depending cash So our side, makes . the billion up. securities

Matthew Breese

maybe average then an And up quarter, prior discussion they fourth will pace same Is that around we asset the at the balances not the trend clear accurate lower it earning to like just just statement? . Okay. sounds saw. just for

John Pinto

move just XXX, right? to That's right. starting The to the from will spot going is change down. balances are rate but dramatically the slow, trend not the average It's . of still

Matthew Breese

do to asset start see earning average . growth expect And to you when again?

John Pinto

we're now. we the $X I to in the I to fourth then we going June to at custodial mean, low billion driver think and we this, right? of very And $X are number. once we have get the quarter went once that from be after the billion biggest end December, through that, of get deposits

don't not the average will to loan to hit grow stabilize which see too we once once be depending get start growth balances, X/XX then the into first start believe to and think end the start I quarter different, period you December we'll piece, So we on to . our dramatically

Matthew Breese

Okay.

to portfolio. within just to NPAs could was been regulated. loans multifamily office steadily multifamily rent loans back up about How million, I are credit is release, beyond your the $XX talk going broader I think Just that the it you showed much hoping there increasing.

any $XX or It it's for units I in laws. $XX feels rent of of the see think of units XX%. rent from to past, XXXX north up issues regulated a there's are billion which just sort or been cracks billion, of buildings Starting like there? the pile

Thomas Cangemi

not maybe to the pass the and time that going It's is a monitoring. going it's through X to to seeing reality John X ties portfolio -- it's those dispute X court the something who X yet. of runs a Adams, a and have relationships me handful the of handful credits marital families that to families that that's through off, I'm Now we're let not systemic. It's is We're start clearly of or relationship. system going

our with dramatically to the tied customers or are to Rates and have fixed deal sulfur the options and option capacity will to rate we higher, option them. derivative the a that offer

to for So to banks their go government credit economic And in it's what is have been for widened most spreads. and proactive. And the if backdrop to open they given want of the long-term they business. seeing we're go government, spreads the want financing

seeing color. position So it's With consistency said, not I like performance. very to pass been We're a a the John powerful relatively I'll over strong book get regarding of trends. John? that, to some

John Pinto

assets the that to are class performance from of the not process. exactly instances said, tenants drag are instances those a family-related they being those on not properties some more the of neighborhoods able There how really working Yes, because They are the Tom. know Thanks, to Tom what lot issues system. rent-regulated know timely and and of themselves. pay the paying. issues them really the more where And is aren't in the in typically eviction some

of Tom rest And kill you mentioned market of those and month-over-month earlier, isolated the York up, just portfolio multifamily outside think, So can't instances, the it's I X% the for rapid. the market. not rents, New really like are

that rent-regulated the have but not us that at . cracks portfolio in monitoring this for particular time. concern real really closely, anything is raising there's properties we're right So any to of a lot really

Matthew Breese

The and your portfolio and then being your a estimated multi-family shape the and bid way, if news of real this the X here sheet Okay. value portfolio out out of it price, commercial impact more is form the portfolio? pricing . When sell. follow-up setting does and difficult estate, asset articles loan your in are -- own play some fair signatures, it it rent-regulated sells, depending or is multifamily does Level for this question is come to on balance any into there sells

Thomas Cangemi

this I don't the tenants I been to going picture that the institution discounted as well on an ability and right? buy something to on a not for what's cash cash deeply going you laws. haven't lender. I unknown flow my But the give that that's . That's ongoing on have seen interest little my be at the my on a rent portfolio long large interesting depending a haven't flow and we In non-rent-regulated a my maturity time. me portfolio rates mark-to-market nuance trade the portfolio. going that's mark We've that nuanced respect transaction it'll to big portfolio is and credit trade ultimately, opinion, rent-regulated can't the to in comment of thoughts impact doing hold got the the a complicated in the forward that's on in these putting something given let happen assets the market. that, price portfolio. to So relationship marks. been it's ever lender, the We're market. And to clearing for We're loans to portfolio. think to a believe, and views specifically landlords the portion more that guess But will respect will seen in we such view, that's bit that

day, between investors a the probably the groups a selling. landlord accordingly. process tenant the complicated the through that really and with focusing portfolio the of by the And primarily outcome will ambassador working buying as that far deal end be financially eventually go will and of some side community These just of job there'll at as gets It rent-regulated on we'll lot There's tremendous trades and on between a done not individual that. of of bit the as And and that activity We've do probably landlords, on. working it pricing more tenant a because activity. there's clearing of assets going not market with prices, part lot institution, community relationship. being on well community managing a small and nuances little that the with

coming doesn't culture, challenging. makes that A history in that it that have new player

rent and below at So cash lender, don't a the that market bit flow . I that. my But the rent-regulated per is assets has call of it eventually little given se traditionally because move traditional trade and from that seems the you're we a if lender end view laws a a will significantly discounted cash mark-to-market portfolio complicated. on day, flow are

Matthew Breese

Got it.

Okay.

what me, maybe broadly, loan give of Just . is overall it. your size the And last more some metrics X color behind the for syndicated credit just portfolio? on

Thomas Cangemi

do there? hit that not, you do want you if back Reggie, on get Or one. you to probably . Reggie, that? that have color to can any

Reginald Davis

exact probably We'll there. be at I Yes. that have don't my get we can but number fingertips, it.

Thomas Cangemi

point that. Just on X

flat to building are the corporate that bank derivative market, that generating sponsorship division the actually bank forward with participates syndicated for We using the bank marketplaces. a originating opportunity selling going for to the on a and fees more commercial of

loan piece making the of selling and not but exposure amount bank a off making loan, the commercial secondary loan holding of just a that to the towards a loan moving holding or but really mentality, So the large market.

going out that's as strategy . commercial model. bank be the the to we build So

Reginald Davis

larger keep That's to play and low. and function. our Yes. important not use We're primarily asked Tom, an clients. important me relative size extent That's for use an syndicated how part. exposure that's point. just us When us with think that participate allows about offensive primarily most let most we right. to buying we out -- you sell-down That our I syndications the of book. a is for position. . the still participations the

Operator

of question Your line next from David Autonomous Research. with the come Smith will

Unknown Analyst

asset the on outlook. Appreciate the clarification earning

sounds around assets to getting the when that an more you're decline just confused it in from were us on XQ. be of balance lot was a spot saying the average to than will that that billion think I smaller XXX. saw average mark like But we the flattish $X.X XQ

something $X fourth for billion $X So billion, above . or the presumably quarter?

John Pinto

smaller. the $X anticipate spot in. securities I already around at the is Yes. with mentioned Yes, billion, occurred, be as cash give -- We lot dramatically last don't question, actual or have A start about we're the to the where of paydowns talking balance. take, what

So the is here. the basically cash drop drop significant in -- is in stopped cash

about where So this be. we'll is

start it continue we up will we're believe then decline which once average to grow the been could we And will catches to pretty just quarter, to once So as the the fourth that. -- balances the after consistent, spot of balance. average then in that's hopefully, see some start

Unknown Analyst

Got it. Okay.

Thomas Cangemi

expecting [Audio you appreciate my you so, I Gap] [Audio could you're said. as perspective? from that week a of anything Gap] a in think side. Reggie, or seasonality

Reginald Davis

no. So [Audio Gap]

Operator

question next from line Our [Audio come Gap] will of the

Unknown Analyst

[Audio Gap] commercial estate. real

coverage shaping service are ratios pricing days, Gap] these curious debt Just given [Audio where where is

Thomas Cangemi

[indiscernible] tell many Adams, get is believe falling able coupon their the for a a have the look higher John. significant the that will strong do rate in the capacity lower John to or the I customers them when looking longer. They're looking option options roll have And are They fair, given that dollars, been ones future. it's which reality of their option, I to is at you to a and in in looking they're not, lot are to That's and we will to more the rates lock fixed be really the choosing they're and through market. between. locking long, then not [indiscernible] them relatively but of continue they equity think that are option to work and with it's pay to

do they refinancing to being it's go agency as the we're banking. market, us indicated, market deposit and/or And And focusing the opportunity. like relationship I when on the

tighter And balances, is So along. going the at and go government slightly business equity there's and wider. to economic much have model going more our be they're to forward. that's which probably to there they're looking is And it's compensating than us, if an going spreads, importantly, critical for option

longer-term is that are they're a But that thinking decision. lot customers of to in 'XX, 'XX make going when

John, there. you maybe, do So want add something to

John Pinto

service. was still X-handle well the and that. on obligations, on for the debt But that originated. risk expect and just coupon. sure model. coverage get annual X But get to they they're was would operating coverage we way that if repricing an we add just there's accordingly, it than I'll they as as service today, they our a based meet to And we're them yes, when handle, enough should it's debt where the be isn't the course, rated leaving loan if are basis. their track what typically all of And X-plus And obviously, reserve to And less

enough meet . service we question, your point answer down, debt not definitely come But can't to they keep where if the eye their So but something to an to not finance the that obligations there's coverages in debt, on. reasonably have

Thomas Cangemi

a to goal let's Yes. that rate, side. seen in X, say, a other them write higher they coming a lower many almost year much But ago. would It's check X rate. the to do come were mid here to we is a I let's to the now, difficult the refinancing? from rates had fixed say are our haven't to customers customers us, a get than environment And as on mid-Xs say, a

something XX, below floating And somewhere of do can probably inside points in that. basis basis is going government that. to You like probably points XX XX be

get in the So significant because side of interest we're the rates. challenges changes to customer given . being the other proactive to the

Unknown Analyst

just [indiscernible]? here, on office given office. allocated of the portfolio what's . just Okay. the reserve mentioned you a factor to portfolio, the And curious Curious for mix that John, then qualitative

John Pinto

is Yes. the the But quarter, split prior don't $XX growing, specifically, out that before, we given has but it something million about especially we this been to that We it extremely quarter. -- booked strong. performance talked these been provision like has this

we So at that. to continue look

as as the and leases look to in continue underlying into the dive SCRs portfolio we've at the been the well. as deep the the in well We doing LTVs portfolio.

allowance start right but did this here we are where with comfortable now, we're a So . quarter. build bit of build we to an see a

Operator

Your Davidson. line of with Winter next Peter the comes from D.A. question

Peter Winter

that you as if realized the formal of be can just a guys you next I'm And part component to through to go . needs DFAST wondering have DFAST year. bank? exam Will quantify the expense

Thomas Cangemi

me going that start just I'm and to pass Let off, John. to

work $XX believe DFAS process, I And much always believe I we're to the 'XX. higher. early go With a preparing to change that a through in doing to to limit want being And will prior billion became the we John, if We process. don't process. in when public that we've add go that process you are and a that. capital for said, paying been through -- going go we'll going process the go a . it's through through through but it's process

John Pinto

plan, Tom. a And going we setting to capital through plan, been doing. preparing right, capital the what a have started XXXX with get ready $XX the back building to mean, continue old I billion threshold process. since that's do Yes, we'll we in for

significant been X $XXX a be the for a plan be ready long to group time ready have that we've place and We added be billion. stress testing have to ago to over

be So of probably yes, those. We'll we'll process be mentioning. be was that it we'll the Tom public . performing 'XX. next performing then to when And cycle that process in the part comes

Peter Winter

it. Got

provision When to composition little just Okay. expense. given increased at do for the the portfolio? bit just outlook adding the I reserves can a to of change the it And maybe XX%. to need loan keep talk about look you . then you But the ACL ratio, -- to

John Pinto

the that it has the Signature. down CECL lender composition there's that a doubt macroeconomic and Well, we have much changed performance under been. more diversified ratio and than now And loan portfolio. factors we're what portfolio has the no really is the comes to But of

is those depending macroeconomic So here on the factors. in what trend

in decline here, provisions . But see on portfolios, in we around what individual look, factors bit relatively depends the comes could macroeconomic the seen if but but types how seeing those that on on a and depending of We them the stable and portfolios. we're the decline in depending little move have really it a factors. -- out growth those

Operator

from Your next line Christopher comes Janney with of Montgomery question the Marinac Scott.

Christopher Marinac

Tom, higher era? below new something the a in . of that you contracts do loans. interest in this can you rates of deposits Can write about certain with just if Is X enforcement quick the thresholds. your balances kind go compensating that new

Thomas Cangemi

accounts coming cash to flows gave was questions that some What us pandemic, it our we have flow on we the during the cash into properties of -- regarding have have requirements agreements, on are the good sure it docs guidance the really and given in. and do carried that cash is operating the no our expectation make in we of have coming into we pandemic, operating in, we where account the of have an critical flows an that the to that the particular, unknown

and to this that far be portfolio. as the And out we going very But CRE more that running significance comes we we are significant bank towards shift X%, it we capital relationship. I maybe of XX% it's to have was forward, towards been is And will in as multifamily I as I sort a to There of say we ensure X ago, of proactive prioritize And would about understand successful. it expectation be think when CAGR the the to the compensating going on and is the what will growth years relationships -- businesses. move banking a we strong reality tale the have allocation balances. depository think want relationship long-standing all

bank applies to we're a really ensure the certain working really in lines partnership. mean, are we with also intact And credit. that to many of client I

to And we're We that businesses. not. we we of opportunity. comes to very happen, expect replication other avenues did where when it doesn't the allocate to other capital glad business lines historically, have If it

Operator

the line Our McGratty final KBW. with question come will from of Chris

Christopher McGratty

said Just you cost happen your a a expenses, And that. clarification, do X assumptions think modeling potential there? I spot beta you quick quarter, an secondarily, have included then was I wanted in in to questions. . FDIC assessment. just The deposit verify guide last for to the

John Pinto

were towards Yes. XX%, really end September. the both our they In just then under of that then still assessment FDIC that the is X.XX%. in deposit to billion and the consistent quarter of our X.XX% $X.X you're quarter-over-quarter, guide. September billion, September And in in looking and was in when cost spot basically end interest-bearing was June for $X betas We're interest-bearing at And XX%, under relatively September.

Thomas Cangemi

time taking us you the this -- again you we'll January. speaking thank your see all. Thank interest NYCB. We'll be morning in to for in and Well, . you join you for to

Operator

That for joining. will conclude today's Thank call. you all

You now disconnect. may

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