Flushing Financial (FFIC) 31 Jan 182017 Q4 Earnings call transcript

Welcome to Flushing Financial Corporation's 2017 Fourth Quarter Earnings Conference Call. Hosting the call today are John Buran, President and Chief Executive Officer, and Susan Cullen, Senior Executive Vice President, Treasurer and Chief Financial Officer. Today's call is being recorded. [Operator Instructions] A copy of the fourth quarter earnings release and slide presentation that the company will be referencing today are available on its Investor Relations website at www.flushingbank.com.

Before beginning, the Company would like to remind you that discussions during this call contains forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. to results and those to such subject may factors contained are statements. actual cause differ statements risks, other uncertainties that in Such materially from and filings are the in factors our Such US included Securities Exchange Commission. with Financial update forward-looking to applicable statements any under any required does undertake as Flushing Corporation law. obligation not except

in references non-GAAP non-GAAP and considered financial call, GAAP. performance, will or financial operating to assess are isolation be as intended supplemental this with substitute financial During These a measures, to several made. measures not presented US review for measures prepared information as to in be the accordance and

any For and Officer, strategy who earnings these the release. reconciliation and I'd overview and will now results. provide Chief to Executive an introduce measures of President GAAP information like the please Buran, to about measures, refer to non-GAAP John

to And quarter Good welcome call. you. our Thank fourth morning. earnings

transparency to into As increase to part engagement, financial competitive sustainable strategy, additional insight investor our with advantages. hope continuing of our power, and you and we earnings business effort provide

initiative record as our result a of at will shareholder income in the loan questions the overview as detail. opposed remarks a company preeminent for CFO, by review to strategic that performance brief service time of will attention the on a quality interest create your prepared net followed we're greater quarter the focusing customers fourth be and I'll experience through a attract of as consistent vision bank start and volume. that permits. and same our the yield our a superior in value to our successfully market. community is deliver recognized multicultural to delivering I as and strategies and our execute executing new we personalized to profitable continue We value. as We end Then, Cullen, remains long-term and create Susan with executing Susan of Today, financial highlights, growth. and by Our address year XXXX

was rate yesterday’s reduced Additionally, reform, assets. Starting quarter was press recognized the improved diluted to during a we in the scalability share EPS the quarter, on interest charge and branch we expenses. as future core risk, Federal of diluted Page announced million X, release, fourth or reduced risk GAAP XXXX and a tax future Due of U.S. $X.XX. net credit related our revaluation the EPS tax deferred $X.X $X.XX $X.XX of to network

taxi provision remaining losses we the conservative $X.X auctions book During was as fourth the a we value resulting successive by $X.XX million over status. and observing current XX% a After medallion placed of on million non-accrual sales, we taxi concluded sub-$XXX,XXX to after-tax recorded reduced also two $X.X medallion our in of for loan this EPS valuation. all portfolio by quarter, reducing loans

just those were XX.X% total loans result on OREO loans year believe assets. no medallion a we any basis of York XX, market exposure and the assets we XX credit is have of XXXX, medallion our Non-performing strong. concerns our of December remains XX end, remaining At Credit portfolio City bottomed As on per New us. $XXX,XXX average putting the taxi out auctions, loans taxi At behind medallion. has quality of points were points basis non-performing gross properties.

related low not expenses. do non-performing the an XX%, the foresee Given associated we LTV just of loans with in increase

caused Our rely higher us deposits the to XXXX. third government quarter cost points patterns, to short-term borrowings. to normal the projected Contrary versus amount in funds the which on increased not historical replenished basis costing of did two

the XX, interest We approximately recent contracts to forward We million as XXXX. returned improve $XXX swap of have that totaling deposits seen future steps million our into we reverse trend government as position during January rate $XXX entered quarter. took through

of strategy yield focusing to We loans. continued our on year-over-year received to in effort efforts X.XX%. point a new our benefits on basis improvement higher This the XX yielding origination reap loans provided the of

to did the the XXXX quarter fourth XX the experienced compared in we yield XX third, a by Although decline of the the fourth points. new loans did basis exceed in on quarter quarter fourth points of basis received

loan This points growth is of solid period. greater also quarterly the total average our than net Expansion loan six loan for the yield us. focus a remains basis quarterly yield same for portfolio with of yields

standards. $XXX loan our expectation grew remains while X% strong million to and solid The portfolio total underwriting XXXX, of loan of Our on holding in in XXXX. strong supports pipeline growth

the quarter, two we we marketplace. in to In our lifestyle launched brand. community initiatives our mentioned space the during brand healthier online as internet-based BankPurely, During the implemented and enhance year, third the eco-friendly

the focused enabling market million Banker in us than into model, the community more as which fourth initiative new well together high relocation has branches of included market. offices Flushing Universal during the $XX acceptance the on second the our Customer Flushing Our Asian service modernized two in of deposits quarter. banking been unique in video three our as

by a In We of cutting-edge conversions service XX% are branches. our Banker the end efficiency December, We on Universal Banker remain Universal all the anticipate cost branches, in experience. technology were of Banker higher which our with over powered to completed and the continue improving quality scalability compensation transactions XX% XXXX savings provides customer by and the ATMs. state-of-the-art model, complete to our including at track for Universal the using high branches of model seeing at to branch customers converting ATMs and

link you Video days via gives which AM As ATM X recall, access video PM, face-to-face week terminals. seven Banker, piloting been XX our from may customers at we’ve a to

rollout as been will feature achieve in with EPS for had the has $X.XX These record resulting controlling our the goal impact or net income XX% the including highlights low in from loan medallion plan among the year-over-year this taxi to our year this ratio an maintaining a provides portfolio. customers, X.X% year. remained efficiency efforts XXXX XXXX. long-term expenses execute we fourth to We’ve of X up by Slide losses dedicated in of contributed core others, of we in to mid-XXs. received similar and positively ratio further efficiency to interest continue an quarter to enhancement this in As

For summary story, of those customer expectations areas remain earnings strengthening X focus commercial maintaining bank exceeding which a our enhancing key management risk sheet our our new power, a to with provides strong consistent Slide balance and philosophy.

metro branch customers most Our competitive country. a of our include the sustainable ethnically one York having to the diverse area, advantages serve regions than XX the more that languages staff City in New in speaks

more where a Additionally, at cost we have a of than have we than million in deposits. our total funds cost strong basis the points. Asian funds deposits community have XX of $XXX on lower focus These

As branches many the Asian of business attractive you markets the Flushing already dynamics. very know, surrounding have

of deposits and small owners. saving number degree is First business a a of available significant high

continuing transform relationships. deeper, real be are remodeled our lender and competitive on Combining this real and commercial a remain nimble environment We loans of industry with capitalizing focused commercial to while lender Universal customers the long-term shifts. a estate transactional-based enabled to and recent our us mortgage, strength new Banker We branches. preeminent business November on full into the relationship-oriented business in has and responsive modernized formerly banking to estate of openings as commercial customer multifamily focus origination

one-to-four proven use cycle. multifamily quarter The commercial XXX%. was philosophy mixed and originations debt remains throughout loan-to-value Our a credit XX% well is of service the constant risk on estate real family all with coverage and of current management of loans to phases

the averages reserves Our will over underwriting and low remain conservative and loan industry charge-offs loss that net give below delinquencies LTVs long-term. standards, minimal us confidence

Our cyber income long-term value. as to strong balance Increased increased on deposits sheet, our to strategic liquidity, scalability shareholder ability managed technology our scenarios. to maximize stress execute which grow leveraging shareholders on risk remain core as and security, pricing well as and funding are very improve capital well-capitalized well continue investments to credit all enhance and improving X. opportunities, management these our Slide the to and test continue deposits, philosophy, core objectives value interest profitable earnings growth We’ll innovation, we and growth all to profitable levels, objectives core position achieve by efficiency, loan talent, deliver in to to by focus and mix, under strategic continued risk net company

know, our year the per full-time recent up since and dividend the tax quarter received announced and a by our that quarter result XXXX have dividend from of respectively. Each provide in each the to a quarter We a paid in and may Board $XXX employees a as a grossed of non-executive dividend of reform. As every already non-executive approved XXXX first of derived one-time benefits Directors bonus raised $XXXX you employee consistently plan all have part-time recently the and $X.XX for since we bonus September XXXX. increase

invest the to savings for to opportunities company evaluate growth. We future continue to the business tax into position additional

and from benefit At this tax in We detail. to further it discuss expect economic is reform results Susan I’ll believe catalyst greater activity financial the growth. and to turn over quarter’s to it the point, for

business X% Thank on were X% from full-banking with X. real origination commercial to you, and loans continue start the up we relationships. John. quarter-over-quarter as I’ll commercial Slide XX, billion, of Total $X.X up and on December loans estate XXXX multifamily focus

from on totaled continue year X.XX% quarter-end loan XX% modest XX, X.XX% strong diversify but loan-to-value quarter, last at quarter-over-quarter. ago. the linked slide At versus were ratio average estate interest X% a The which originations X% pipeline quarter but portfolio in deposits real quarter. XX%. declined rate of from the of existing is loans. to of originations portfolio million, increased gross our a the On $XXX for was rate We down XX% from to loan year-over-year for totaling the our real total an the X, and estate increased C&I the loans up of as The remains December portfolio on pipeline our

did increase loans-to-deposit resulting expected John quarter fourth government As in quickly deposits as an during as ratio. not replenish noted, the we in

deposits accounts. However, is we’ve already in savings non-interest base XXXX, XX, bearing $XXX January seen growth primarily Year-over-year million. government by and increase deposit market money driven the through

core increased by non-interest-bearing $XXX X% of deposits, million deposits. an emphasis growth, of We on represent XX% Non-interest-bearing year-over-year. which the represented year-over-year as total deposits with continued to increase deposits,

December XX, while totaled Our also iGObanking.com has initiative of using over gathered exceed deposits through customers is December the been development Funding the at million, deposits business were from balances internal million $XXX gather XXXX. $XX At million. XX, loan to deposits $XXX its BankPurely channel. as business successful officers

cost funds pressure see We the during has increased basis for to two the points competition quarter. increased are deposits, beginning with rate average of

remain to We while funding of remaining continue our deposit of in mix. disciplined market. composition our the pricing, within X depicts Slide terms competitive

decreased. As the to has grow, funding has CDs percentage related and to continued borrowings

much for the longer ladder months. out does to the tie-up can we advantages access longer want when funding XX to for need However, than consumer the liabilities there where as money wholesale are arises markets, terms not

Turning to quarter-over-quarter. decreased points Slide the up year-over-year, XX, net for at but was basis XXXX flat flat year-over-year, quarter was The net of million, interest quarter-over-quarter. $XX X% fourth X.XX% interest income and margin X

Excluding the penalty accelerated prepayment the and of the net at linked interest flat quarter XXX. income, loans, from was for interest margin non-accrual accretion recovered discount

was basis government deposits and for increase basis funds the rates of points driven paid in and increase cost year-over-year of overall short-term the an borrowings. Our X points quarter X.XX%, by CDs, XX an quarter-over-quarter, on

portfolio interest net increasing and pricing pressured, margin will on the continue remain the income to mix. by will interest leveraging net While we loan focus likely opportunities

For the the on the quarterly portfolio. exceeded the of loan loan since on fourth originations yield the XXXX, quarterly quarter second consecutive time yield

rising to liabilities. transactions of in quarter, begin XXXX our million swap the XXXX in XXXX forward executed During points and reduce in the swaps rates various interest-bearing respectively. XXXX effects we expire and $XXX and These interest of on

XX% loans, quarter other third service and similar fourth and compared XXXX. to to bank-owned On million, was enter and Slide non-interest income the fee the we to core quarter will insurance million. income; strategy if the evaluate reported We of prudent. transactions believe continue was of it’s by in on increase non-interest compared fourth XX% of growth sale Core income $X.X life we The quarter increased non-interest $X.X XXXX year-over-year driven of that income XX, banking XXXX income. largely for gain but of this

in of foreclosures and the to the Moving X.X% and foreclosure Lower the expense. with fourth non-interest benefits, Overall, in continued quarter in FDIC to XXXX. XXXX should efficiency of XX% expenses XX% quarter insurance XXXX quarter in quality reduction of FDIC lower The asset third the year-over-year. expense sustainable. to the was fourth million, of and XX, improvement for be fourth associated ratio insurance quarter compared the and the improving improvement XXXX, XX% a in salaries quarter-over-quarter was due year-over-year $XX slightly decreased expense driven slide and the was by

As John previously to to ratio mentioned, low in our long-term maintain an efficiency is mid-XXs. goal the

on operations in continuous new and focused our improvement efficiency for opportunities are gains. We

approximately XXXX of tax as anticipate the to Regarding of a XX% be effective the result XX%. rate Federal rate taxes, we tax new for

have As will XXXX see expense we first of a a our expenses. we and reminder, in non-interest increase seasonality large in the our quarter

Now, metrics Slide taxi million were for charge-offs credit XX, primarily remain of strong quarter. due value in turning totaling on the $X.X book Net remaining our $XX.X to medallion loans credit quality $XX.X to quarter, million. this million resulting

charge-offs Importantly, we continue process. earlier to the record in delinquency

approximately date XX the Slide loan just which a As strong The quarter-over-quarter. basis a non-performing despite upon due loans methodology origination losses. underlying highlights adjust loans value The loans a employed. net do the of appraised totaled it’s based of seller Non-performing of XX-day quarter-over-quarter minimal are upon our maturity their delinquencies the XX% and increase values increasing carried reminder, points at to comprised real non-performing not loan-to-value primarily for year. are underwriting is York taxi for we totals of is that and history year-over-year the should of million, conservative total average as New allocated our our past be with of continued based of portfolio loans the to The $XX payments. discipline scheduled make increases. estate XX% historical City percentage medallions by we The primarily loans down collateral loan-to-value XX loan originated credits. $XXX,XXX balance the of of medallion the effects at

after for can there see, run four XX are which vintage you an loans greater impressive eight years than days delinquent only XXXX, last for is As the years.

increasing has our quality to improving slide due been our Moving building. reserve to XX, coverage credit is and ratio XXX% at year-over-year and

with basis XX, at maintain points adequate from growth, loan most totaled XX fair for the of As December proportionate expected value on provision loan $X.X points XX/XX/XXXX, recent medallions growth John million future XX sales in were that loans data. XXXX. basis of based losses recorded recording to an anticipate York as down of allowance provision highlighted, City taxi With quarters we’ve losses as for for lower ratio. we New The estimated loan gross

to As closing turn ensure we have that, always, to monitor continue With back for appropriate some closely thoughts. we credit I'll John that reserve. loss it quality loan an to

strong years services continues We significant and remain customer To market by we to XX summary growth. company leadership to team is drive in continued The for conclusion, banking In seasoned our a provides growth. reiterate, clear our you touch financial City preeminent a been multicultural superior and us. market over our value. for well-positioned we of a and track our a have opportunity shareholder focused Thank relationships. exceeding held with maximizing last Wrapping you, Slide XXX%. providing experience point Susan. York represent a has expectations customers profitable consistent of Those up, every foundation and be and strong shareholder a on who leveraging the have stock return vision record, at for why for believe to community our five we a strategy total proven our the strategic New continued a profitable commitment remain know

will you. take questions now Operator, it time We turn as to over I'll permits.

The go Instructions] KBW. Please from Gilbert first Collyn [Operator ahead. question comes with

good Thanks, everyone. morning

Good morning.

morning. Good

and slides lot have know covered the I slides apologize, unfortunately you a I the in the guys didn’t for I call.

you increase that But I I on things that you the already that is apologize. the about offset going to had just you’ve outlook there, expect are and start of of as out loan am obviously continued growth? repeating I mix and what’s as for declines. I your there loan the am then and assuming you of the moving loan compression. NIM, I kind likely hopefully Can if So, NII. with indicated laid But, of well dynamics yield could for also the sort kind impacting NIM kind in if But talk just just outlook the know

Right.

decline about board up points. coming were in of in did the the So the we basis of yield. we XX in course new a loans But – quarter-over-quarter on year, have over terms

So, off. curve that like continue see lower we It yielding to we will the a I that trend as more think looks because benefit little actually may sloping bit type of seems trend to roll be the to see little start will be that loans upward a yield bit.

So loan you is which or have so that working natural dynamic off. a XX% the rolling portfolio of

up set to Some rates in which begin move to is of with. contractually up

of number that are backed up that’s a by have around… we Secondly, swaps loans and somewhere

XXX

of place, just have in and million put this forward-looking $XXX that we hedges liability hedges. addition, $XXX million recently we in

are us that positive the the dynamics quarters starting do working is as that in the that’s give short-end news continue in continued to in our loans loan increase of little Federal actions. one particularly and favor. will see more the at world. better our Reserve yield expect into are I certainly by and the But, that on last portfolio not the we C&I tending curve come of couple trend the the the those So, a the it Obviously, I work favor in the as has portfolio new on than a have bit put year, to

– specifically just, you do And to be you helpful. anticipate what that cost to NIM for That’s those? that added, okay. impact of for $XXX the on – the swaps for the those funding million Okay,

rates. depend I positive money going in So, the they It’s We movement this time. is. know in NIM. to on at providing small already already point what impact – amount are as are obviously, the the dollar a in recall that upon that’s there can’t

said, are to they have entered impact and going in of given latter the into meaningful in money them but NIM our some the we forward. to size expect John on as the Because part and December, we middle

interest and experienced. – liability say NIM that the may three on pressure that that the asset terms you the we of had of think the stable we million let’s if help side have we side $XXX us about of million, roughly the we sheet will think So, of have, protection some $XXX on balance sheet balance in

then, And kind the as okay. progresses? are and outlook for Okay, loans the loan what you growth of expecting year maybe of mix

guidance similar about low talked last I year. high-single-digits this to – our clearly think we to We a double-digits. we’ve year; came in on high-single-digits

dependent We is think pulling on I one going upon another that some in the a to that be where know that possibly do the range jumping in market. activity competitor be to appears bit multifamily competitor we of is upon depend to the going fall little in. back somewhat will that be market,

So, a business little unknown robust or estate a have business commercial do have category. banking we do pipeline our But space, bit we non-commercial in space. in that real – space banking

okay. now $XXX rolling government deposits differential cost the out had That’s impact coming government helpful. you borrowings? pay the fourth to the you in then And then to they the had Okay, you those, of of between what million on of deposits curious on, so just the back or borrowings versus quarter, and are utilize said just roughly

points. XX basis around Somewhere

basis Okay, pick-up when got – the a point so they you borrowings? XX deposits on the versus

Correct.

Okay, okay.

Correct.

That’s specific the All here? then, reserve think you tied allowances, about so reserves, trending a we from in because right. obviously, the reserve the this resolution should should kind taxi levels of presume that the quarter, on I how had drop how helpful. but to just taxi, And of the

upwards our The reserve levels as goes. growth trend should

the be have as some. So, change growth in methodology loan portfolio. our undersea soon what the anytime don’t commensurate remarks, anticipate the we allowance We should I until the in in said

constant portfolio but to So growth. would relatively growing expect it we loan the for remain

it. Got

I’ll there. All helpful. leave you. that’s it Okay, right. Thank

you. Thank

Collyn. Thank you,

comes with Steven ahead. question The Gabelli. Please next Comery from go

third origination more touched so my and coming Collyn in pricing the I this, on taking actually the of that board? question. wondering decline was was across know just for down shift? brought points, but mix on kind – the quarter you of or was thanks quarter to fourth I basis yields Hey, versus XX in the due the guys multifamily

up yield a commercial And we was there little been and has estate we shift little of than real over C&I. think in the quarter, market had bit this I kind But or year. particular the mix multifamily of in course and just the multifamily down a the of there. had a bit No, more

yield. look So, commercial of given XX% the where portfolio I for between opportunities the to the But, and overall of important tune is The swinging portfolio. will place repricing course to XX% going some differential think as that’s think to the changing year. to portfolio, there of I result or back forth loans of is and the those we trend as and thing contractual to you more grow either recognize XX% XX% of of forward real a any see the – the multifamily an opportunities pickup estate over the of repricing taking

think trend in that be is that best the That’s lesser or to way upon greater the any for we based will of yields is So, there the net and be mix. loan positive going that probably putting baseline a it. either given quarter

guys on Okay. Thanks, what’s mean, quarter, borrowers? I C&I conditions And on going better really Are quarter you as approaching far growth, the good Are getting then, there? that’s just the the and there that. fourth there? you growing pretty good Or quarter improving quarter, guys a as had and helpful.

of result for new and continued are we lenders. always just area, our a natural it’s in this focus the I outlook think on

takes come it seasoned, So, to those let’s get over. to as customers board, while them their a lenders get, little on new say sometimes moved

you’ve progression last takes place seen quarters think And So, that this time or very in that with there point as this state is pipeline of are in and the of we at well. I so. couple pleased that the

So we are shape for in growth in C&I. good very continued

good. Okay, for very me. one then, And more

is? amount Universal what you the what that Banker kind give are that idea dollar costs of comp as of cost, some that far idea the maybe can of XX% an as you guys you total in savings If mentioned comp magnitude? or us branches, a is, have XX% On in the the what conversion of

have branch might typical the say let’s So,

eight. Six,

say, FTE. might average might The $XX,XXX typical be branch around drop of let’s $XX,XXX, plus two We might salaries those there FTE. eight fringe. FTE, have Eight

basically FTE reconfigure and a I whatever that in positive the impact do math terms garner on So, head. two well. of terms it’s top then my as smaller of can’t But, in garner can that whatever in real has those estate footprint we we can of we as

Okay.

like point good starting a anyway. sounds it well So,

Okay, thanks guys.

Brody The next comes question Instructions] go from Preston Piper Please with [Operator Jaffray. ahead.

guys. morning you? are Good How

Good morning.

Good morning.

I just – to the swaps. as – paying let’s rate on get wanted I fixed those just an get those? the so with have floating just start I and are wanted to to idea must to to been you as that what an is idea

You are fix. based. are floating right. to They are They LIBOR

So estimate move. to We they on going about forward. share the per cost be $X.XX

what? estimate You

share. About $X.XX per

Of pickups?

they them Well, where with $X.XX. on time, were the being interest the estimated will we be the at cost put rates

rates mentioned, move and of a pickup a we’ve on John put little as on However, those we’ve since seen those. bit

those, for I to your okay. guess on volumes you. I multifamily basis you your Okay, have just prepay loan yields, pickup are on I are all? touching ex so Yes, current for seeing got those multifamily of sort – eight any at the feeling about And on points. you, the in wanted mortgage transaction got declining I core and thank what, then, yields what market, get sort if of loan a sense by you. I just

The on stable. in yields market. have volumes transaction relatively been what’s on the that portfolio going vary think on I

so. X.XX into fours. or market can smaller be is it the about at products, So, are the getting what the the That’s for multifamily, probably – for largest we

okay. that’s Okay,

efforts. two have we So,

efforts have – in area. on two that We

on larger of group So, have then multifamily directly smaller one focus against is we a focused the that sales people and separate multifamily.

Those even – within five are or by way the resets. risk So, four a multifamily, dynamic. is mix the there a year numbers

then, in CRE/multifamily at And potentially earlier a remarks the just prepared yields. guess, higher differential it. – I XX% Got you to and said your to the mentioned I average. what X.XX okay. off was sense of replaced being between, yield wanted for on get for about rolling X multifamily the yes, Yes, you portfolio

from roll the a XX% yield guess there offs? So what I pickup

So, contractually, Bank Federal reprice – Bank scheduled - Federal Loan are borrowing over they to points they XXX reprice contractually Loan maturity. basis Home the maturity Home

customer they level, want contractually generally pay or decision do the over that through an move to Federal expense XXX want whether the which to Home Loan occurs, makes to that, at what So, lender to is oriented. go in additional a is part time, Bank the they the point basis another of points additional

So, right are XXX. five-year FHLB now rates

about negotiation talking XXX going are is of there a contractually, bit sometimes we So, little on.

we not may XXX, back us. So, the borrowers generally get the but to come

are and to prepay they guys? Okay, allowed with you refi

that at they we clearly Yes, point our time. Usually, market are. above have some at least rate. additional is part There requires on that leverage also in

you Okay, that’s the the low-double-digits, first government are good said some a to to trend know that given far? going inflows in the deposits. with high-single quarter deposit government I growth I Or had color. ratio And, XXX%, I you of loan guess, inflows all? guide at you is guess, that back loan-to-deposit becoming down constraining from to factor the on expecting so growth at

I am sorry.

could question? Just, the you repeat

the that inflows the bit growth first to two-parter, moving where government that factor of given it a at do I far guess, And is a quarter? I at on a all? you number down expect it now is loan-to-deposit Yes, was in ratio One, you’ve constraining the given XXX% seen forward from trend deposits guess. so

So, – a it’s do on constraint our let’s see not growth. say, we

it I some in out to out into has to liabilities think case, willingness enabled a ladder the our of matter ability us to our some degree. fact, go our As wholesale markets and

that think we it to help to advantage influx said, level of as loan-to-deposit look bring and at So, That concerned level. should the – of that about kind will additional an are the ratio government not we being we this down. deposits at

question question little a the Universal me. that over now with about Okay. you the said you compensation to costs conversion And $XXX,XXX on to looks saves just earlier, for like that you you based outlined. Banker just are then, I the one in that cuts going last continue given know FTE

into XXXX? outlook you that hear guess, expect just did it be forward for you for expenses I moving I to say moving So forward, the flat

give it yes, the we first expenses will seasonality, will the in in But Year-over-year, G&A quarter. remember, an which have be increase us flat.

overall, for the for But year?

will it flat. relatively Overall, be

very you Thank great. Okay, much guys.

Great, thank you.

you. Thank

Showing will this questions back I for the remarks. question-and-answer our no turn like in conference to would the more any session. conclude queue, closing John to Buran

with fourth Well, us XXXX on of call. and for for questions. your We we today to forward and everybody support you appreciate we look attention next again Flushing Corporation. thank And your your to earnings want thank Financial you quarter talking our quarter joining

Thank you.

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

disconnect. now may You