Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| The expense savings just outlined should offset pressure to maintain competitive salaries and benefits, upgrade technology to meet customer expectations and protect against cybersecurity threats |
| I am confident in my ability to also develop strong and mutually respectful relationships, outside the bank with the analysts and the investor community |
| Under his guidance, the bank improved organic growth in our small and midsized business relationships resulting in an improved loan product mix and funding position |
| On the positive side, we have a strong executive bench and will move forward without missing a step |
| Jay McConie has been an excellent Chief Financial Officer for the company over the past four years |
| Our capital position remains strong with a leverage ratio of 10%, compared to 10.1% on June 30, 2003 |
| Bank continues to have ample liquidity |
| While the Board of Directors and I had all the confidence in the world in Jay, when we named him to the position in January of 2020, he still exceeded our expectations, especially as we have navigated through one of the most difficult banking environments in over 40 years |
| This partnership is a timely response to industry changes in demand, while still providing our one end clients with best-in-class solutions to meet their mortgage needs |
| As a seasoned banker and our in-house counsel, he is well prepared for this opportunity and excited to take on the additional responsibilities |
| It's been hard, as you know, Chris, throughout the cycle to try to give very good guidance on the margin |
| I just want to add the same sentiment - it's been great working with you, Jay, and wish you all welcome your next steps and look forward to working with you, Janet |
| I'm pleased to report that third quarter net income of $6.8 million and earnings per share of $0.30 were consistent with the prior quarter |
| First off, Jay, it's been a pleasure working with your last couple of years, wish you the best in the next chapter for you |
| Jay and I will work together closely these upcoming weeks, and he leaves me with a strong team to further support the transition |
| Chris Hilton is a key leader in our transformation to make the bank more commercially focused |
| Bank's efficiency ratio was 65.3% for the 9 months ended September 30, 2023, up from 49.7% in the prior year period |
| Great |
| Great |
| We see those starting to be able to offset the liability pricing, and that's why we kind of see the margin bottoming out over the next two quarters |
| And along with that, in the back office, our item processing is - would be outsourced, so the combination of all those things, we believe, certainly in the back office with the item processing brings back about some staffing efficiencies |
| And then on the credit side, I mean, everything on your individual metrics looks fantastic |
| The 4 basis point decline was a significant improvement from margin declines of 40 basis points and 17 basis points in the first and second quarters of 2023, respectively |
| Our planned technology upgrades for this quarter have been postponed until 2024, but when implemented, will bring additional back office efficiencies |
| As a Senior Executive Vice President and our next Chief Financial Officer, she will continue to build on Jay's advancements and move the company forward |
| If you're able to bring in new relationship deposits that have a good blended yield low enough, it certainly makes sense to grow |
| However, management believes that digital entity expense from liability of pricing will largely be offset as interest income from assets we price lead to margin stabilization |
| We think NIM has stabilized |
| I mean is the goal over time to become more neutral? And I know you did a little balance sheet restructuring, which I think looking back was a pretty good move |
| In total, we have approximately $1.6 billion of available liquidity at the end of the quarter, which is well in excess of our uninsured and uncollaterized deposits |
| Statement |
|---|
| Returning to the CFO role now will be another challenge, especially in the current environment |
| The yield cut has been inverted for over 15 months, making it difficult for the bank to utilize its excess capital to increase net interest income by adding leverage to our balance sheet |
| The slowdown in margin compression also resulted in a much smaller decline in net interest income of $409,000 or 1.9% when compared to the linked quarter |
| While our banking teams have been able to replace funding that has moved out of deposit accounts with new relationship-based deposits, net growth remains challenging in the current environment |
| When Chris contacted me about moving into the Chief Risk Officer position at First of Long Island, it was both an opportunity and a challenge |
| The decline in net interest income continues to be fueled by the Federal Reserve Bank's aggressive monetary policy, which has increased short-term rates by over 550 basis points |
| Unfortunately, that environment, along with other personal reasons, have caused Jay to rethink his desire to continue in his role as our Chief Financial Officer |
| As this funding matures in coming quarters, it could result in some additional upward cost pressure in each of these categories |
| Especially relative to the industry, which has seen a couple of issues pop up this quarter |
| Quarterly net income of $6.8 million was down slightly from the second quarter of 2023, as a credit provision for credit losses of $171,000, a decline in noninterest income expense of $350,000 and lower income tax expense, partially offset lower net interest income and noninterest income |
| I was just - can you just talk about your appetite to grow assets and loans particularly over the next couple of quarters? I know the funding is obviously a challenge |
| And it's difficult with some of those movements to grow |
| Most importantly, our net interest margin only decreased 4 basis points from the previous quarter after averaging declines of 27 basis points over the prior three quarters |
| The increase is mostly attributable to a decline in net interest income |
| So you lose some money there |
| $202 is a little obviously lower than you want to see, but we did have some prepayments on some of the SBA flow orders we have in the investment portfolio, which caused that yield to be kind of considerably lower that month, which put on pressure in that 30-day month |
| These averages all decreased during the second quarter of 2023 after the shock of some large regional bank failures |
| And I think you've seen that there's been a lot of misses on that throughout the year for many banks |
| I know it's a difficult thing to discern at this point |
| On the flip side, you're starting to see demand really kind of come down as you get into the 7 handles as obviously, there's no refinancing activity going on |
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