VLY Valley National Bancorp

Travis Lan Head of Investor Relations
Ira Robbins President & Chief Executive Officer
Mike Hagedorn Chief Financial Officer
Tom Iadanza Chief Banking Officer
Frank Schiraldi Piper Sandler
Steve Alexopoulos JPMorgan
Matthew Breese Stephens
Chris O'Connell KBW
Call transcript
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Ladies and gentlemen, thank you for standing by and welcome to the Valley Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your first speaker today, to Travis Lan, Head of Investor Relations. you. Thank ahead. go Please,

Travis Lan

and welcome on fourth are behalf Robbins; Mike CEO, and Tom conference President XXXX call. Ira Hagedorn; Officer, Financial Presenting of Chief Banking to morning Officer, quarter Iadanza. Valley's earnings and Chief Good Valley today

begin, company to make items I we When our website quarterly at that non-GAAP everyone be can refer like Please supporting refer release earnings measures. of results. measures, reported results certain and from release documents would which to found we aware our today's Before earnings on exclude reconciliations non-GAAP our discussing to for these

Valley COVID-XX like Additionally, all pandemic. call Bancorp, and of and filings, industry turn impact made that, would presentation to including this X-K, our the for and I'll of found two refer forward-looking you the a SEC the to to XX-Q Robbins. on I complete to discussion Ira to of during Form our forward-looking With earnings National highlight slide XX-K Valley contain those call participants banking comments that statements. over may remind encourages relating the statements

Ira Robbins

XXXX and the questions. of severance, will all of you you, extinguishment morning, then additional on was quarter opening $XXX details will technology your and share charges earnings call future XXXX, This In and million. per Mike income on on our of net $X.XX. longer-term for fourth success. before we the financial I $XXX net vision, discuss and Thank million results of adjusted to will Exclusive the provide important reported debt income the Travis, Valley's call. participants the role that our to welcome strong strategic performance the update including play in

the the For Valley's consecutive history. entire quarter, earnings in represents highest level quarterly this of second

mid am last priorities, execution substantial more macro net focus were our position will the regard environment, present rollout income a that months, the us of and steepened XXXX, was and loan for are With XX% this The adjusted effects will optimistic operating the challenges opportunities of revenue million financial achieved XXXX. backdrop, in growth driving diversified backdrop, economic Despite and which is to recent has of million leverage and results strategic outlook in a provision. than growth. to of increase efficient, XXXX, these improve became With curve a abate exceptional in for we increase comprehensive our meaningfully through mix future year's the exclusive success despite achieve $XXX our more in horizon, $XXX in an also single-digit generated new macro our on positive we on to as Our the I core strategic challenging us. growth expect yields. our deposit PPP. growth higher loan XXXX yield vaccine beginning origination

Cares at believe interest of strong outperform of credit will economic we a were of X.XX% total the our We were Act, in from our many of continue in non-accrual XX/XX/XXXX to that trends ongoing Despite active only loans modified margin X.X% from perspective pressure loans pandemic, loans. deferrals and only remain Inclusive XXXX. XXXX. under loans the peers net

quarter. a the average X in points were loans mere charge-offs basis net Our of fourth

at and our which discipline excluding X.XX% allowance of underwriting for losses, peer stands Our credit credit strength loans support below PPP.

strong improved and help in leverage another spend I stage technology operating strong our year beyond. the credit in backdrop want XXXX. and in organic and for time morning perspective. will us manage positioned value our of discussing this borrowers some how relationship-based XXXX proposition to growth our drive well aftereffects and from confident and the underwriting are We the strategy sets This of a pandemic the to are improving performance philosophy

role have the experience technology on that amplified well we As industry. of XXXX emphasis building last and ahead in trend the know, our the has COVID-XX banking placed over of reinforces in years. has been best-in-class this Valley you solutions few the technology

on on growth as well. the has end have enhancing applications, concentrated agility While will office to infrastructure that the to technology back hyper-focused are on we and execute our approach ensure our of the and front This industry needs evolving we support unique our customers initiatives.

quickly important. in example developed digital an internally PPP great strategy the so the on is differentiated program, a infrastructure. is days own our In Our built end-to-end of process we our why stood of early technology success up

of human relationship-focused also PPP element highlighted result banking support are banker a Our our process. been ability PPP use loans how of technology of institution. was to billion has the $X.X always a and not infrastructure was technology the Each by we banking. replace Valley supported a and strategy borrower direct we agile this Valley throughout PPP execute originate building. to

value of customer-focused value and This customers supported that will differentiated the financial forward. us new our suite attract Our technology thoughtful provide. bankers, advice and clients we from going growth help comprehensive knowledgeable high-touch by proposition solutions drive service our

recognize we the Our have ones that only that the customers momentum built. aren't

organic and And few now we and desired the our infrastructure join across are bankers our our Over be last to the leverage a bolster industry. enabling of we years supported we technology execute the want operating diversified have destination team by organization. for People the continue to a This sustainable next reinvigorated phase evolution. team top growth. and improved will that evolution will

to and to support service drive our of process We customers. needs they improvement diverse financial bankers relationship the technology as our continue use

that has Mike future more some the accomplished what call like future allow date over stakeholders. our excited I changing culture. more to what our financial conditions We all for continue to agile to and are market will a our of adapt team success performing, be couldn't to highlights. This to strong drive for for to proud I'd and quickly holds high building couldn't a With organization of be corporate for Hagedorn Valley. additional the organization will with turn

Mike Hagedorn

Thank you, Ira.

quarter basis margin can in X.XX% down by X.XX% XX% from approximately interest net quarter points you interest-bearing the quarter from X.XX%. Valley's Total XX declined X to of of and deposit asset deposit X income increased Slide basis declined quarter. to from the fourth our the is repay. repayment third loans the sequential On to significant a and XX% Turning in by PPP liabilities XXXX. the see XXXX. prior interest reported interest-bearing that have compared expense reductions yields improved Earning This cost prepayment and was costs fees points to that non-maturity higher-yielding in as of by This quarters. forgiveness partially reflects third we higher growth continue to continued experienced recent offset basis

third In deposit as we cash additional of asset the the of points increase X.XX% to the estimate strong X to on higher that FHLB deployed cash mid-December These basis add quarter as inflows. Our carried All were repay we future liquidity mature basis We our of to interest a balance result third million points continued cost would else advances. the in margin. net weighed our excess to to $XXX and X majority cost action estimate equal average by in set XXXX. borrowings of compared quarter. quarter yield an this

of sequential fees point during due in regarding estimate PPP to that detail additional are have recognized more recognized Phase We X The the related million originations quarter. increase loans is X of $XX see will income be accelerated remaining basis income we PPP PPP To loans approximately $XXX the as the or An repaid. million. $XX of PPP X. Slide to fees quarter. can X contributed the PPP and of revenue of million on forgiven margin to during date impact the You forgiveness

PPP. As SBA X you recently are aware out of the Phase rolled

again encouraged liabilities origination our lower to colleagues now positioning of in with that businesses. our are the rate remaining and We X XXXX. outlines re-price local processing in our support are volumes opportunity Slide interest

There additional basis CD over points. through years. Over average as offering to above of net margin cost opportunities have three to retail XX re-price at CDs protect are borrowings the $X our CDs well. maturing next quarters five our point, been interest lower funding rate and this Currently brokerage able we've is basis To reductions. for we cost XX billion points an highest

our interest-bearing forward. more liquidity by funding X the we XXXX. driven in an a in Total we achieved accounts. significant CD result year. of to X%, that in increase. that both peers profile declined with our XX% liquidity net industry-wide transaction in from improvement increase customers balances This a continue a XX% than deployment and and Slide deposits increased As and in the will increase Valley-specific outperform we particularly a illustrates interest new going perspective regards non-interest-bearing repricing the PPP of XX% levers, deposits believe result to cross-selling margin efforts, is transformation

over costs Valley's illustrates fourth lowest deposit average is chart work hard at the the The downward In to years. deposits last trend mere quarters. in this forward. few basis of left will XX interest-bearing going quarter, in mix was our This deposit cost least points. We shift XX the significant a last our cost quarterly the preserve bottom

our Given elevated incremental more One reductions are going cost effect forward. point, opportunity this be growth deposit earlier already deposit beyond continually CD to liquidity. the starting is recent likely low repricing side levels identified of of

our the increased occurred advances third balance as prepay billion liquidity excess $X.X nearly despite $XXX cash to mentioned billion This utilization Our to of earlier. from quarter. million in $X.X FHLB of

the portfolio balance and loan opportunities liquidity three continue As and we deployment additional fees loan points we our forgiveness, of our yields our PPP declined the sides mentioned basis loan over higher optimize sheet. strive in few and last previously origination X the trends quarters. the earnings details will Slide evaluate to to both on Despite quarter. average

X On has their steeper the first rate loan the increased XXXX. third also of expanded average our levels from reached The which spreads, since quarter the positive basis points widest side, origination quarter. curve

quarter. the We par quarter, loans XX% with up pre-pandemic quarter $X.X declined slightly nearly the third of levels. Excluding during PPP, in total from billion loans the and new generated on

by strong of offset totaling side, originations commercial where borrowers' the were million, the two were businesses approximately loans On large $XXX repayment sold. the

our portfolios, in We stability also saw which time the in increased first quarters. consumer four for

opportunities pre-pandemic robust have and returned levels. to Our growth pipelines remain organic

at we has are resources Slide the since loan Florida, X.X%, increased total to excited $XXX markets, deferral demand. or onset million across our of rebounded COVID-exposed our portfolios just meet we dedicating in pandemic. the declined down While in additional from illustrates quarter opportunities our our particularly of to XX the in the in stand had activity by where deferrals X% the improvement are the over third fourth Loan loan X.X% portfolio. At quarter. deferrals the of end

with As a deferrals our commercial regards majority of payments. current to interest the remain reminder,

XX. Moving Slide to

residential sale $XX non-interest on approximately gain effectively basis margin both increased Our expansion. XX% quarter improved. on on sale income third at gain while million, service sale sold margin the increased income gain from to Net declined million deposit declined with quarter. the Swap loans sale the XX% Residential third fees mortgage on sequentially charges X% reflecting and X.XX%. were gain XX $XXX to over in points while line income

of XX% the For year, XX% recognize income lines fee non-interest and flow over certain and adjusted with We that conditions. our revenue. will market increased ebb comprised

focused that Slide XX end, However, our investment growing building to our illustrates on differentiated expense markets trends businesses we remain team a throughout hiring recently revenue customers To our we year. the and strategy of correspondent streams municipal that value. capital further the diverse businesses. will diversify and announced banking

elevated and increased fourth and Our charges to quarter, fourth million Adjusted of pretax extinguishment a our expenses $X.X $XX asset XXXX. the reflect included positioning severance related improve for in efforts telecom results to million charges. quarter partially These impairment nearly charge expenses. X.X% debt

these of normalize items We both going expect to forward.

ratio year, revenue XX% adjusted XX% year-over-year from target. down increase well the in XXXX operating On efficiency we our XX.X%, against basis, and below adjusted a XX% in growth XX.X% an generated For expenses. our was

build. headwinds to industry-wide likely that Looking acknowledge forward, revenue we are

On side, been the largely identified have expense costs rationalized. easily excess

that last a December. have We branch which closures from modest occurred we the quarter and tailwind in mentioned

improvements preserve Our that established. that identifying the strong momentum leverage us is hard at operating team process additional we help have work can

by our million to X.XX% the points factors. X.XX% to the optimistic Turning Net $X is in sequential from top in remain specific representing driven improvement to XXXX. four basis outlook C&I five for you quarters. of see of allowance of lowest for slide third primarily The losses performance. quarter non-accruals level in charge-offs, quarter. We last XX, to increased declined quarter. was Notably to X.XX%. a the third the charge-offs X.XX% trends right, the quarter's loans build extremely credit This credit declined of prior of XX our to reserve equated can portfolio. basis from loans since the just points the our low The on credit the Despite versus loans related level on few

medallion valuation reserve. taxi our York $XX,XXX to First, New to contributed specific from we our revised City $XXX,XXX, which

hospitality, in We including and also downgraded certain commercial dining. industries retail, credits COVID-exposed

substantial focused established lending diverse selective borrowers been industries cash these sources We flow. have and very with of on and to have liquidity

downgrades, in distinguishing While long of strength the warranted in of industries credit properties Valley's performance confident remain these borrowers. we characteristic specific the been these our has overall a organization.

which loss historically enabled reserve. below-average peers lagged has have Our us rates carry to a

continued our economic consistent our environment. on contributed expect increased credit While any months, by value quarter, this our book Slide our X% reserve XX has in growth the modest earnings last still driven illustrates in to industry improvement the book and value outperform economic power. uncertainty to ongoing Tangible XX build the in loss experience tangible in the capital increased ratios. we

to We of $X.X comfortable for increased asset ratio points in increase some seen a With over the that, growth our TCE a loans to from regulatory we improvement also significant believe with Our capital third X.XX% by in closing the have organic turn levels basis our ratio X.XX% ability commentary. quarter. our year-over-year consistent Ira back basis an our levels XX improving approximately billion common in our call We tangible on I'll in capital illustrate ratios. total remain reduced the our to to and the quarter. risk-based capital that estimate PPP On basis. ratios that our equity

Ira Robbins

I Mike. our and am the proud commitment team financial achievements. Valley's strategic contributed that to of XXXX hard work Thanks of results extremely and

priorities will continued driving executing With operator success. back the to opportunities call We like to strategic to I'd that, our XXXX on now offer Thank are over very forward and excited the turn Q&A. look to and about the that you. begin


from Frank And first Sandler. Schiraldi of Instructions] our [Operator from question line comes the Piper

begin. may You

Frank Schiraldi

Good morning.

Ira Robbins

morning. good Frank Hey,

Frank Schiraldi

First loan. question the was on

Florida the talked also You within Mike loan mentioned levels greater opportunity growth. that. is And pipelines about rebuilt the the having pre-COVID mid-single-digit to and you

up is of to loan low little speak And be growth, more then Just high digits? change single wondering can mix color north if a terms sort single-digit in a Florida and you be of, on in it, type? could expected any could

Tom Iadanza

the XX% experienced Hey, Frank, as in us and and from today it's increased the pointed our Florida from quarter Tom better returning probably XX% the ago production pipeline to market. we The pre-pandemic out slightly a Mike fourth XX%, up XX% third margins levels. the to represents Iadanza. of production also quarter year respectively and Florida

to different Jersey steady. types Our remains business in New involved the York across regions and New between that all of and we're continue The loans across pipelines C&I grow in CRE.

today Manhattan the already Florida and Our markets, on business suburban begun But people. market. success begun we're not is increase in the a Florida and primarily XX% the and we've staff into teams by commercial to C&I growth looking our reliance adding C&I about in adding we've our following portfolio. those represents of big our Florida, XX%

expect We grow. that to

Two year. for We're We've and we had New in similar lenders. expect at the it growth past. has years contiguous what Philadelphia great the our easier do with complement continue complements in to a us during manage. pace and this but C&I some success. and up real moved the York, into to attributes the here we'll we be C&I lenders Jersey to adding New It actively market team the recruiting. business, the on much experienced Jersey of Philly expect real We it's market market ago in point are to of already same strong very we estate estate New Also

to component our as an we single-digit we has important in been, but this So growth of steady will that that expect it year. Florida markets. occur do all growth get always be

Frank Schiraldi

And about guess. could just XXXX that be I about sneak XXXX Just that talk given little result? to ratio growing wondering, couple guess, could XXXX a in just you if of income thinking next if years revenues I noninterest on mean, fee in then of initiatives. ratio Thanks. that. could the year could or strong more And the Okay. income one a bit I I more just

Mike Hagedorn

This with little success income. hit, great that revenue Yeah. a we've fee percent is mind interest because of such net bit a a income Mike. total in Keep of had as taking is

And commitment shouldn't probably starting revenue we of new to we're that. lost percent it as already so stronger on because the it's either income fee do adding businesses, the in a -- get than basis our in space, what just definitely to of looks what a doing. But equation of that's which part

that. the represent in One of that is that revenue. percentage fourth our strategic fees think years increase And municipal of that quarter commitment business I we priorities our started over shows do to the made coming I regarding the and the to demonstrates comment total

Frank Schiraldi

Okay, all Great. right. Thank you.


Thank you.

from question JPMorgan. Alexopoulos next from Steve is Our line of

Steve Alexopoulos

everybody. morning good Hi,

Ira Robbins

Good Steve. morning,

Steve Alexopoulos

to start first wanted efficiency on ratio. I the

well-below So the XX% target you're for XXXX.

target you're XXXX? what's Now And general? that well-below that moving more for the forward

Ira Robbins

we given move We we're where to going as really target a organization. the haven't to specific think

leverage. we on that you've the I We think seen significant operating technology levers throughout Steve organization. improvements entire we how positive still outline in can think pull based there's

continue the efficiency the there's lever to We as the to important grow we entire looking at organization. Getting and be of across organization. of a continue we a and platform within ratio, branch we path efficiencies think down opportunities is think to stronger the lot going

on there's mentioned really think what within interest we good environment. on of opportunity definite we do rate have a mitigate headwinds efficiency to And those As Mike we some the coming headwinds the side. based

Mike Hagedorn

success one number something our differentiator what's a continue – as actually is giving to look in enjoy to we really that's you of that we industry. things is be And produce. strategic for That the believe ratio expect the peers. going is today us at efficiency without our on a vis-à-vis to forward we we look as And future our that important

Steve Alexopoulos


another at look we way. if So,

call have it the we PPP X pretax So, look you program back out impact. to slide which on we'd if pre-provision the at ROA,

So give that, we let's we think which you do say the us. numbers could I do with

So, XXXX about headwinds trending you're Ira? talking apples-to-apples think how the given that should about we through

Ira Robbins

Look, to when coming be strong think some you as We I obviously, going we for there's still think PPP identified. half you headwinds look income off the XXXX. think about that the first of that's

potentially the volume we we a we think the well based I a growth. on on see rate down going mortgage lot, environment. think about within could organic interest when But as go organization, where lot have

footprint. lending As Tom Florida mentioned, we're the in staff our expanding XX%

with manage base a going are well expense not we initiatives. of significant to think We the see And to really increase can as Philadelphia, that down we effort. more strategic a these result concerted as

efficiency ratio So we the we to really think think on the growth capacity function a revenue really throughout that think side what footprint. revenue will positive And there's and the organization how within to we a move lot the we have of a expenses. based impact as of largely forward, to opportunity on leverage we about we think the the as drive to have operating we're not increase have doing entire

Steve Alexopoulos

Yeah. it. Got

Mike Hagedorn

I'll If you just look real quickly. at the to add that –

lending If would your attention slide side, to direct you the look I just X. at

reductions most an that, continued we liability side be liability to opportunity lower sources going run the seeing the only one where three of that's when book less at least on quarter in are I and ongoing up portfolio but said, billion it balance our that When now sheet, bps. come the help went in would we're on on the coming new that's us $X nine. the down mature. were saying fact would not it's than higher. of net encouraging necessarily you total with going And to things the originations our loan of originations quarters at have rate flip I loans as remarkable to as is expect over points now. the all of those least right One encouraged they they're things the sits definitely right that XX not the our re-price that, half the by next is we're off considerably at roughly improvement PTPP three and for I'm basis to the

Steve Alexopoulos

Okay. helpful. That's

question. picture wanted you So ask a question big final my for Ira, I to

is Are the had So fairly franchise when but sense a you Can part a you transformation initiative the guys took was Are investing the company culture? and it role. we now right us Thanks. transformation? bold Valley? in of working new CEO franchise? where to was the client in you still LIFT, a from this of announced be Are the you over intended you really give satisfaction view? change are you heavily the Where to you where need still

Ira Robbins

Thank you.

think I The to I within up that from technology without seen were headed. bringing has where overall you've organization. think we been investment made significant the in in we significant. we're investment And the progress, technology expenses where

has is culture So really leverage what I what a left something a in that and think, is. of managing many done my years think seen is that investment. we amount XX the opportunity of think enviable I've tremendous The still outsiders. organization the job technology we've There I within good to never when is positive about operating and investment before here,

has destination that to without change. we come looking to consistency are as has really is and empowerment to continue an is banking for We to going going forward. about think moving change that continue how to agility a and Technology question to drives bankers to that organization

individual said, end we with everyone corporate like. looking new okay, we the we customers. need office to about the going the saying, new about point and to relevant of not front think years and in wait, workspace what today looks an all to we transformation talk the physical but buildings when sat Two even a be began and now need we environment about to everyone's to and infrastructure. had from we is thinking ago, it looked about and at infrastructure And way wow, COVID three at or rethink treasury, that, said have technology here technology. as type then, there was core, I the need technology environment think our you're And And we a sold a to begin Not infrastructure started interact enable change. technology us our to we and what half a agility, at and that comes to to about we just invest our think we front-end started to that technology changes. to plug-and-play years really and ago, what enabled physical

there delivery customer five we've were Over years, need XX didn't with the first behavior adapt changing, us get vision. begin laid And to was change. be I be This the changing. environment is performance. Street building understanding years I changing. where closed these deliver channels well to that we're to will surpassed will going pleased, agile we to these COVID headed think environment, them. them, our continue think, what within we outsized branches I of our thought And I right? and we to workforce with understanding mean, was continue was the remember when would We that to over the and sat it's last that an This an to and and performance. to one efficiency the no happening outsized targets, out three that tell of many ago And was we we changes deliver and think we're that

Steve Alexopoulos

for all Okay. Terrific. Thanks color. the

Ira Robbins

Thank you.


Instructions] Thank Stephens. question of the Our from Breese line comes you. [Operator next Matthew from

begin. may You

Matthew Breese

Hey, morning. good

way But discussion. seen what expenses? done the from of the we at or lot expense the the bring level following I've receive down actual from expect to speaking, least Is Clearly, Just stabilize is mostly dividends. at paying and there's of up should to to about added technology expenses absolute it, revenues think a been here room without there on philosophically is cost. work philosophically least that

Mike Hagedorn

-- -- I more low-hanging part said done of our or to the or expenses. think efficient think my as I done. in get said as we're it fruit in ability prepared is we our remarks, down There's in I bring never

trying will be we do that. to So always to places find

However, the to bankers. growing to we've said, admit as be we We're business. to teams new that going we're going do adding have be of

quarter showed the of that extent that necessarily positive produce they done and the think historically we to got to offsets show continues leverage shown the X.Xx but side. have we it operating both I to this expense eyes leverage. sides operating on we're so keep revenue And don't that our and the on it, We

Matthew Breese

it Okay. you And I in balance then help whether new opportunity your the overall implementing mentioned that it business? currently a sheet the other already? the The frame as for businesses deposits service couldn't me ask, cannabis fees? is, What's stands industry. for XX-Q, us market loans on one and it's Can deposit you better in for the

Ira Robbins

that an address place, I'll my perspective, a who come is heads into infrastructure market right From to to place, in to And processes and be approach the sure really this in and make we we're sand brought to going how make to strategy had impact us. letting burying from what we to had seconds, opposed right with pick the as we that the checks dictate We've better that our think let had Tom to isn't balances handle partner with we define couple perspective really it in we over the want wanted is. think and an ability this of we AML sure well happening. we last could year grow on point. if partner but here. to I was the partners to this. to at in it's take out continue an moving as it this than grow. as addressing this garnering our couple wanted to of When really We but Tom, I will sizable something to wanted you there approach my and at to this It's proactive is to they are banking better want it in how at not entire And not think it's pay anything we think that reputable as of a picked I we to point. going be something type much people And with begin add? the reactive. more we this being mind, shortcuts dividends, some And think, to becomes business. look deal industry, in it's the how the needle widespread in legal to throughout

Tom Iadanza

a do states slowly it's to going it's Matt within deposit-focused legalized. us. for the we business We're onboard Yes. opportunity where

begun doing a more we've go that ultimately BSA we we're work and add and Florida. get we'll along. to in as year, the and kind move slow we're it's onboarding needle as not company multi-state one sure this New continue making other we the We'll of impactful. it comfortable verifying be But entities have going right all pace in go Ira AML, little to said, We could Jersey both a but as

Ira Robbins

think reflects think, where I headed. in Matt I I thing my organization would just And one the add, mind is

environment, react. we look to organizations not to many too think this need COVID, look say, look that well, and to I to environment

have a very make general. very And we well we own industry banking proactive to COVID, how place. on right headed we We the somebody sure be need damn to in that belief a not the in infrastructure address us just we without telling and that put that, better strong in agility as strong our and have but understanding, this where is

Matthew Breese

the one or stands you Understood. M&A of clearly, to you Ira, for priority do enough lot it? on from to need rest think me. a Last Is where M&A there's of the internally you here, Can internally. where you a do and without for you prioritize you energy us? have can team get management what be

Ira Robbins

to leverage. perspective. consistent there's where organization. opportunities Tom have people continue looking that may We've different into we to and about amazing from we're And stream, this deposit expanded get initiatives earlier. as an need There's make the be couldn't diversify be to them that organic was more operating perspective. in That Look, amazing we're understanding positive tremendous most strategic about at excited how create clear loan revenue need at to a looking geographies headed. But a from businesses and as growth strategies and hired well we within beginning to talking that I sure the we're we as look we at new

there's from don't makes absolutely we of if happen if doesn't us resources So perspective opportunities it that That any comfortable. definitely don't sense a tremendous that amount reallocate said, something it's that entertain. we're distract would

be. understanding thing to we and important most we're is of are, who the think I want where we what headed a we clear have

allocation diligence an And of We things understanding it if to clear resources perspective also there accelerate shareholders sense we our it makes of then have a owe to And perspective. it could from potentially go that it's that. on. that to are not at we're down path our to with something going it has focus doesn't it initiatives. looking strategic said, align That a from the if

Matthew Breese

it. Got

questions. you appreciate my you. Well Thank Okay. taking

Ira Robbins

Matt. Thanks,

Tom Iadanza

Thanks, Matt.


you. Thank

be will from O'Connell line from Chris of question KBW. last Our the

may begin You

Chris O'Connell

Hi. morning. Good

Ira Robbins

morning. Good

Chris O'Connell

-- So the towards in I want strategic resources strength allocating Florida additional franchise you with to just those and start-off guys efforts. some mentioned the

gathering side? If assuming there the and kind side having could upon primarily you're expand as on mortgage like the I'm efforts residential you the well as of deposit it's that just

Tom Iadanza

the No. side. on No, primarily it's C&I

you business As is estate our know, Florida strong. very in real

and We'll have way Jacksonville across an We business. our Orlando, be Naples. markets C&I all to expanding C&I Miami for up going over all the and active lenders to in of major down Tampa

And I C&I a emphasis York. in we're in Florida. also say, just in New it's want we as So many to New York don't doing similar need

already expanding strong We to business that vibrant in up complement C&I and business. that New Jersey have we'll real estate a and here York be New

focus we'll them. and So C&I lenders we in and markets fill estate there here need the real a in it's

Ira Robbins

obviously, obviously, We our a see the Florida shift. as mortgage strong very demographic Chris, program you market, a have throughout growing footprint. residential is entire massively

look we in purchase. was at XX-XX you average what refinance quarter about was the If what home this footprint,

growth If here up New loan of are you taking the other of opposite market and growth lot that of ourselves though was exact resources was Most down that's see home to Florida. There originations allocating based in in some differentiate there us perspective, about a on Florida. in Jersey It's up to opportunity the on from organic is growing that business economy the real focus was purchases. also A growth a think put the by we definitely Florida. real XX% look in from down And continue additional we banks. happening the relationship there's a from of a There's refinance. but there.

Tom Iadanza

time it's on New side, a And up a here billion. very the is period business what market get pointed York, And of in out, to when importantly side we've short said Just XX%. Alabama built years almost to Ira more couple of in New XX% consumer the between Jersey. $X.X you on a is Florida Florida, consumer purchase flip expand as and the Ira refinance

also Florida there. prime not lot again at conforming. just consumer And coming growing look of business portfolio. the contribution XX% you a it's and of commercial that's It's of the lot and at It's a super of direct a when So business. prime the out auto it's

Chris O'Connell

Would with as great well? a gone Got have down And there in Thanks. but color. obviously it. That's you thinking Florida, or broader down in consider been it's you strategic the mean, M&A while. you're, kind acquisitions, area as that longer-term of, past perspective I guys at

Ira Robbins

going around in would back think down to has foothold from the It some there's book a make continue initiatives our we and XXXX what to it's have in pretty it's Florida growth value, me something value is. revolves complementary strategic significant do to allocate of attuned it So marketplace. M&A we to talk a initiatives, to really, are. absolutely if that tangible how to And don't amount we clear, I've constraint a diluted But and right? If as then can the grow book and want doesn't of let and to of perspective, let what make short very sort from And our not think right? did. also something sense. other I we me the very, it's definitely those growth dilute And a certainly We tangible just think that want can that are, we something perspective we we significant to to be to one If in going an be constraints our consider not in marketplace. really we what think we're further don't book value that doing But our sense good degree organic do about to has value that there. We been resources. not it's dilutive, about shareholders down tangible be are we franchise deals earn-back to leverage. it that shareholders it. we strategic

that We again. are not doing

Chris O'Connell

And couple you. items. Thank Understood. of just a then, clean-up

banking, the mean XXXX do year. that forward? you For obviously going line I gain mean the particularly how I coming demand see strong mortgage into

Tom Iadanza

the same demand far to expect XXXX. also. The from up probably this up up is holding The year in -- -- market production doing strong don't for is was into refinance pace. the purchase purchase us, XX% it The the year very quarter. so at well It's the the has migration hold strong. market this We full for suburbs Yes. the market is and held

business. mean to I focused So on are say. we conforming hard it's really

the don't while and portfolio, that manage we'll growth in expect I I So, the of but do expect continue take it's market here. advantage to refinance

Chris O'Connell

Great. I all That’s have. Thank you.

Tom Iadanza

Thanks, Chris. Thanks.


remarks. no like in Thank I'd And the to to closing you. queue. Robbins questions call further Ira for back over the have turn I any

Ira Robbins

taking as We you just interest Thank generating results for join we thank Thank today. for you want into look to to forward us significant forward move positive to time to and continue your in the XXXX. we operating you. Valley,


you Ladies conference and this participating. concludes today's gentlemen, call. for Thank

You may now disconnect.