Oct 28, 2026 earnings call — Growth and profitability from wealth-led strategy
Core pre-tax pre-provision revenue reached $32.3 million, up 76% year-over-year, and net income available to common shareholders was $18.5 million.
Revenue $0.1B (est $0.1B) · EPS $0.99 (est $0.93)
Key quotes
"During the quarter, loans grew $403 million, deposits grew $301 million."
"Wealth management remains a foundational aspect of our company, who we are and how we act as a private bank."
"Our New York rent-regulated multifamily portfolio is down 12% year-over-year and now represents 11% of total loans versus 18% at September 30, 2024."
Analyst Q&A 5
deposit pricing and mix changes
Q (Christopher Marinac · Brean Capital,): He asked where deposit pricing is headed and whether deposit mix will shift more.
A: Management said they have seen some pressure on deposit pricing but it has not gotten out of hand. They aimed to gate growth at $200 million and saw spreads north of 4% on new core loans; they expect upward pressure on deposit costs and plan to manage beta at 50% to 60%. They guided NIM impact of 6 to 9 basis points for the year and expect 2 to 3 basis point NIM improvement each quarter into 2027.
"But I think to answer your question, we do expect to see upward pricing pressure on the cost of deposits." — Frank Cavallaro (CFO)
multifamily collateral values and reserves
Q (Lisa Chalkan): He asked whether the question was about collateral values and whether additional reserves or write-downs are needed.
A: They said they only update appraisals for loans that become substandard or are nonperforming, so updated appraisals happen in those cases. Management is seeing a mix: some properties show softening while others hold up or improve, so they do not see a systemic decline; any one-offs are handled in the normal provision run rate and they are not seeing a landslide of deals.
multifamily repricing and loan originations
Q (Stephen Moss · Raymond James): He asked how multifamily paydowns and repricings will play out over the next several quarters and what refinancing terms borrowers might get. He also asked about new loan yields, the fixed-versus-variable share, drivers of consumer loan growth, and expense plans into 2027.
A: They said about $500 million of rent-regulated multifamily will reprice through the end of next year and normal amortization on that portfolio is about $5 million to $6 million per quarter. Modifications vary case by case — paydowns, collateral accounts, guarantees, 1-year interest-only, or rate/amortization resets up to 5 years; new loan yields were about 6.4% this quarter, the loan book is roughly 75% fixed and 25% variable, consumer growth came from residential originations, professional lines for attorneys/accountants, purchased loans, investment credit lines and a few yacht loans, and expense plans favor technology investment with mid- to upper-single-digit operating expense growth expected into next year.
"The mix -- I mean, overall, the mix of the variable rate is about 2/3 fixed, 1/3 -- 25% -- I'm sorry, 75% fixed, 25% variable is probably the answer to the question on the mix." — Frank Cavallaro (CFO)
pipeline, back-book repricing, fees
Q (Manuel Navas · Piper Sandler): He asked for more detail on the pipeline versus the $200 million/$200 million targets and how long the strong pace can continue. He also asked how much the back book will reprice, the timing, impact of recent hikes, and recent fee initiatives.
A: They called the pipelines very strong with clear fourth-quarter visibility and enough strength to see into the first quarter of next year, but they expect Q3 was unusually strong and growth will likely step back closer to the 2-2-2 plan. Over the next 2 years they said about 20% of the book, or about $1.4 billion in fixed-rate assets, will reprice with a weighted average coupon around [ 3 90 ] and they expect to pick up 150 to 200 bps on repricings; the reprice timing is a bit lumpy around Q2 and Q3 of next year. On fees they said quarterly fee revenue ran about $22 million normally, dipped to $20 million this quarter due to two one-time items and exiting the SBA gain business, and they think a run rate near $21 million is reasonable going forward.
"If we step back and look at the whole portfolio, over the next 2 years, about 20% of our book or about $1.4 billion in fixed-rate assets will reprice." — Frank Cavallaro (CFO)
ROA targets and timing
Q (David Konrad · KBW): He asked for updated thoughts on ROA at the end of next year given current progress.
A: They said current guidance is around 90 bps and they may get to 1% early next year; their longer-term target for the fourth quarter a year ahead in the investor deck is closer to 1.25%. Management added they aim to grow annualized core earnings from about $130 million to about $180 million and that the 2-2-2 plan, if modeled with discussed margins, lands them in the expected range.
"I think what we've kind of guided to 90 bps now, maybe getting to 1% early next year is what we're targeting." — Frank Cavallaro (CFO)