Loading...
01/10 05:51
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call shows strong financial performance, with NII and net interest margin exceeding guidance, and an increase in tangible book value per share. The Q&A section highlights management's confidence in handling potential risks, such as rent freezes and federal funding for green projects. Despite higher expenses, the outlook remains stable. The positive financial metrics and optimistic management responses suggest a positive stock price reaction.
Core earnings per share (EPS) $0.91 in Q3 2025, with a year-to-date core EPS of $2.66, reflecting about 3% growth year-over-year. The growth is attributed to strong performance in deposit franchise and accelerating loan growth.
Nonperforming assets Decreased by $12.2 million or 34.6% to $23 million, representing 0.26% of total assets. The improvement is due to the resolution of a $10.8 million syndicated commercial and industrial loan under stress.
Credit quality Improved by nearly $19 million to $79.2 million or 1.67% of total loans, marking the best ratio since the CEO's tenure. This improvement is linked to decisive actions on problem credits.
Loan growth Increased by $99 million across multifamily, CRE, and C&I portfolios, representing 3.3% growth, an acceleration from the 2.1% growth in Q2. This was supported by the addition of C&I experts to the origination team.
PACE portfolio Total assessments grew by $27.4 million, with over 8% growth in C-PACE, driven by a new originator partnership.
Deposit generation Increased by $415 million, with political deposits growing by $235 million (19%), Climate and Sustainability deposits by $86 million (21%), Not-for-profit deposits by $42 million, and Labor deposits by $26 million. The growth is attributed to strong market share gains.
Net income $26.8 million or $0.88 per diluted share in Q3 2025. Core net income was $27.6 million or $0.91 per diluted share. The growth was supported by higher net interest income and resolution of problem assets.
Net interest income Grew by 4.9% to $76.4 million, exceeding guidance. The increase was partly due to recapture of loan interest income from the payoff of legacy problem assets.
Net interest margin Increased by 5 basis points to 3.6%, despite a 5 basis point rise in cost of funds. The margin expansion was supported by deposit repricing after the Fed's rate cut.
Tangible book value per share Increased by $0.98 or 4% to $25.31, reflecting over 46% growth since September 2021. This growth aligns with management's equity incentives.
Core efficiency ratio 50.17%, placing the bank among the top performers in its peer group. The ratio reflects effective expense management and productivity improvements.
Net charge-offs 0.81% of total loans, including a $5.4 million charge-off from a resolved C&I credit and a $1.5 million charge-off from a legacy leveraged loan. The elevated number is offset by improved credit quality metrics.
Allowance for credit losses Decreased by $2.5 million to $56.5 million, with the ratio of allowance to total loans at 1.18%, down from 1.25% in the prior quarter. The decrease is due to reserve releases from resolved problem loans.
PACE portfolio: Total assessments grew $27.4 million, with over 8% growth in C-PACE due to a new originator partnership.
Deposit franchise: Deposits increased by $415 million, with significant growth in political ($235 million, 19%), Climate and Sustainability ($86 million, 21%), Not-for-profit ($42 million), and Labor ($26 million) segments.
Digital modernization program: Invested in a fully integrated digital platform to improve productivity, customer understanding, and revenue growth. The platform went live in Q3 and is already showing benefits.
Efficiency ratio: Achieved a core efficiency ratio of 50.17%, placing the company among the top performers in its size range.
Loan growth: Loans grew by $99 million (3.3%) across multifamily, CRE, and C&I portfolios, supported by new C&I experts added in Q2.
Geographic diversity: Highlighted as a factor to manage future loan growth targets effectively.
Credit Cycle Risks: The company acknowledges that the credit cycle is still in process and is aware of significant reserves and charge-offs taken by other banks, indicating potential future credit risks.
Loan Losses and Charge-offs: The company absorbed a $10.8 million loan loss in the previous quarter and $5.4 million in charge-offs this quarter, reflecting ongoing challenges in managing credit quality.
Nonperforming Loans: A $2.8 million multifamily loan went nonaccrual, and a nonperforming construction loan required additional reserves, highlighting risks in specific loan categories.
Interest Rate Sensitivity: The company estimates a $2.2 million decrease in annual net interest income for a 25 basis point decrease in interest rates, showing vulnerability to rate changes.
Technology Investment Costs: Increased technology spending of $0.5 million for digital transformation could pressure operating expenses if not offset by efficiency gains.
Regulatory and Policy Risks: The company is monitoring policy debates in New York City, particularly around rent stabilization, which could impact its exposure and operations.
Full Year 2025 Core Pretax Pre-Provision Earnings Guidance: Raised to $164 million to $165 million.
2025 Net Interest Income Guidance: Tightened to $295 million to $296 million, considering the forward rate curve of 2025.
Impact of Interest Rate Changes on Net Interest Income: Estimated $2.2 million decrease in annual net interest income for a parallel 25 basis point decrease in interest rates beyond the forward curve.
Fourth Quarter 2025 Average Balance Sheet Size: Targeted at approximately $8.65 billion.
Fourth Quarter 2025 Net Interest Income: Expected to range between $75 million and $76 million.
Fourth Quarter 2025 Net Interest Margin: Expected to stay near flat relative to Q3 mark, with loan yields dropping due to repricing and anticipated Fed rate cuts totaling 50 basis points in Q4.
Quarterly Dividend: $0.14 per share paid during the quarter.
Share Repurchase: Approximately $10.4 million in share repurchases during the quarter. The company plans to continue buybacks over the coming quarters until the share price reflects forward earnings projections.
The earnings call shows strong financial performance, with NII and net interest margin exceeding guidance, and an increase in tangible book value per share. The Q&A section highlights management's confidence in handling potential risks, such as rent freezes and federal funding for green projects. Despite higher expenses, the outlook remains stable. The positive financial metrics and optimistic management responses suggest a positive stock price reaction.
The earnings call reveals strong financial performance with EPS and NII growth, share repurchases, and solid deposit growth. The Q&A provides confidence in organic expansion and stable provisioning, despite vague answers on syndicated credit resolution. The balance of buybacks and dividends is positive, and the NIM outlook is stable. Overall, the financial health and strategic growth plans indicate a positive sentiment.
The earnings call presents mixed signals: strong earnings per share and a steady dividend suggest stability, but concerns about nonperforming assets and market uncertainties pose risks. While the share repurchase program is positive, the lack of clear guidance on political risks and operational cost increases tempers optimism. The Q&A reflects management's inability to fully address concerns, leading to a balanced outlook. Given the absence of a market cap, the reaction is likely neutral, with stock price movement expected within the -2% to 2% range.
The earnings call indicates a mix of positive and negative factors. The financial performance shows some declines in key metrics like EPS and net interest income, yet the guidance remains optimistic with growth targets. The Q&A reveals some concerns about non-accrual loans, but management is confident in resolution. The shareholder return plan is positive, with a new repurchase program and dividend. Overall, the balance of these factors suggests a neutral sentiment, with no strong catalysts for significant stock price movement, especially given the absence of market cap information.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
