Oct 28, 2026 earnings call — Integration results after Flushing acquisition
Core earnings per share were $0.48, up 54% from the prior quarter.
Revenue $0.2B (est $0.2B) · EPS $0.48 (est $0.40)
Key quotes
"We completed our acquisition of Flushing Financial Corporation on June 1. And on September 21, completed the operational integration and rebranding of Flushing's 30 branches across New York City and Long Island."
"Total deposits grew $319 million, or 1.8% during the quarter to $18.1 billion Excluding brokered CDs, deposits grew $156 million, led by interest bearing checking and money market balances."
"This week, our board also approved the quarterly cash dividend of $0.20 per common and common equivalent shares marking the company's 119th consecutive quarterly cash dividend."
Analyst Q&A 7
margin outlook and deposit costs
Q (Daniel Tamayo · Raymond James): Analyst asked how margins will trend with the Flushing integration, deposit beta expectations, and an early sense of next year. He also asked about expense guidance beyond Q1.
A: Management said they expect relative stability in margin with a modest tailwind from floating-rate assets and repricing of fixed assets. They expect about a 10 basis point increase in deposit cost next quarter and into Q1. On expenses, they plan to hold around the $105 million level and use automation to offset new producer hires, aiming for stability or modest improvement.
"we are expecting about a 10 basis point increase in cost of deposits next quarter and into Q1" — Patrick S. Barrett (CFO)
loan competition and Premier deposits
Q (Timothy Switzer · KBW): Analyst asked whether loan competition and lending spreads have changed over the last six months. He also asked if the Premier Bank deposit target of $2–3 billion by end of 2027 has changed and about expected deposit cost for that program.
A: Management said competition varies by product and timing, with some compression for the best credits but overall realistic pricing and stable rates around the 7% area. They remain focused on reaching the Premier deposit target, though timing could slip a quarter or two; they were pleased this quarter to grow deposits while lowering deposit cost and are actively recruiting to continue growth.
"We were pretty pleased with this quarter is being able to grow and reduce the cost of the deposits at the same time." — Christopher D. Maher (CEO)
NIM baseline and CRE impact
Q (Peter Winter · D.A. Davidson): Analyst asked whether the stability guidance refers to reported NIM (3.18%) or core NIM (3.08%). He also asked if higher rates are impacting commercial real estate and whether any Flushing loan portfolios will be deemphasized or have positive surprises.
A: Management said the baseline is closer to 3.08% (the core), noting the reported 3.18% will come down toward that level. They said higher rates do affect CRE borrowers who will face higher repricing, but demand has not been materially hurt; and they plan to de-emphasize rent-stabilized multifamily while highlighting strong multilingual branch staff and a $1.4 billion Asian banking deposit base as positives.
"So The 3.18% is going to come down to, say, the 3.08%-ish. Somewhere around there." — Patrick S. Barrett (CFO)
deposit mix and cost-saving sources
Q (David Bishop · Hovde Group): Analyst asked if management has targets for the commercial vs. consumer deposit mix by end of next year or 2028. He also asked which line items will provide the expected cost savings next quarter.
A: Management said it is too early for precise mix targets but they expect stability in the split with some opportunity to replace brokered deposits with consumer deposits as the New York franchise grows; early advertising gathered about $60 million of accounts at a blended promotional rate. For cost savings, they expect most savings from staff/compensation and from renegotiating vendor and data processing contracts, and they identified roughly a $5 million per quarter gap they need to close.
"And I think we continue to attack all of our vendors, not just from a flushing cost save perspective, but renegotiating all of our data processing contracts" — Patrick S. Barrett (CFO)
funding cost outlook and hiring plans
Q (Christopher Marinac · Brean Capital): Analyst asked where relative funding cost might go over 18–24 months versus competitors and asked for milestones. He also asked whether the planned number of hires will accelerate.
A: Management said they will not give precise long-term forecasts but expect to make progress versus peers by reshaping the Flushing deposit base to look more like OceanFirst and by rotating funding from wholesale to client relationships. They expect a modest NIM tailwind of a couple basis points per quarter and said hiring is seasonal with spring recruiting; they will hire high-quality bankers even if slightly above budget and expect to largely self-fund hiring.
"I think over time, we will probably bring the flushing deposit base to look more like the OceanFirst deposit base." — Christopher D. Maher (CEO)
Premier hire, deposit sources, revenue upside
Q (Piper Sandler): Analyst asked what Eric Howell joining Premier will do for long-term deposit targets and the hiring pipeline and whether strategy or geography will shift. He also asked where this quarter's deposit growth came from and what revenue upside wildcards exist next year. He asked for the repricing details of fixed loans.
A: Management said Eric joins as an operating officer to accelerate recruiting and client relationships, and they view Premier as a long-term part of the portfolio that can grow even at 2.5% funding; brand unification and Eric's hire should help attract talent and clients. They said this quarter's deposit growth was all commercial (Premier, C&I, CRE) while the retail base was stable. For revenue upside, loan repricing is the key wildcard; Patrick said about $1 billion reprices next quarter coming off the high fives and fixed loans are around the 4.80 area with adjustments into Q1 in the 4.60s.
"it was really the deposit growth was all commercial." — Christopher D. Maher (CEO)
floating-rate mix, securities plan, deposits
Q (Matthew Breese · Stephens): Analyst asked what percent of loans and securities are floating-rate (SOFR or Prime), the strategy for the securities book, the composition of deposits (DDA share and cost), differences with other banks' Signature hires, and whether long-term targets remain.
A: Management said the loan portfolio is about a third floating (32%) and 45% fixed, with roughly $100 million quarterly adjustable repricing; securities are about 80% fixed with less than 4-year duration and producing ~$75 million of cash flow per month, and they expect to reduce the securities book by about $1 billion over the next year to year and a half. Deposits are about 21% non-interest and nearly 75% are checking in some form; funding cost around 2.5% is sustainable for growth. They said differences with others reflect scale and later brand entry, and their long-term targets (including a 1% ROA goal for 2027) remain in place and they have daily focus on maximizing shareholder value.
"So the loan portfolio is about a third floating. So 32% and 45% fixed." — Patrick S. Barrett (CFO)