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    Chris O'Connell

    Vice President and Equity Research Analyst at KBW

    Christopher O'Connell is a Vice President and Equity Research Analyst at KBW, specializing in northeast SMID-cap banks. He covers a portfolio of 21 financial institutions, including notable firms such as Metropolitan Bank Holding Corp. and Bankwell. O'Connell joined KBW in 2014 and has established an exceptional track record, ranking in the top 4% of Wall Street analysts with an 82% success rate and an average return of 31.6% per rating over a one-year time frame. He holds a BS in Finance from Boston College and is a CFA charterholder, reflecting his strong academic and professional credentials.

    Chris O'Connell's questions to FLIC leadership

    Chris O'Connell's questions to FLIC leadership • Q2 2024

    Question

    Inquired about the volume of CRE repricing in H1 2024, the remaining upward repricing on CDs, the cautious margin outlook before rate cuts, loan growth guidance, the future of the residential loan runoff strategy, the size of the stressed multifamily customer segment, and the potential for future stock buybacks.

    Answer

    H1 2024 CRE repricing was similar to H2. CDs are mostly at market rates. Margin caution is due to ongoing rate adjustments on money market accounts. Low single-digit loan growth guidance is maintained. The residential runoff strategy will continue to re-mix the portfolio. Only 6 loans show potential stress for the rest of 2024. Buybacks will be considered quarterly.

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    Chris O'Connell's questions to FLIC leadership • Q1 2024

    Question

    Inquired about the strength of the debt service coverage ratio for the 2025 free market multifamily loans, the yield on the current loan pipeline, details on loan and security repricing volumes, the outlook for the net interest margin in the second half of the year, the potential for future share buybacks, and the expected go-forward tax rate.

    Answer

    The high DSCR for 2025 free market loans is not unusual given their conservative underwriting. The current loan pipeline yield is approximately 7%. While specific repricing volumes weren't provided, they noted $80-90 million in quarterly cash flows. The NIM outlook is conservatively stated as flat but has upside potential as liability costs stabilize and assets reprice higher. Share buybacks are considered quarterly. The go-forward tax rate is expected to be between 6.25% and the initial 12% guidance as REIT tax benefits are maximized.

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    Chris O'Connell's questions to FLIC leadership • Q3 2023

    Question

    Inquired about the monthly net interest margin trend, the expected trough for the margin, the tax rate outlook for 2024, details on delayed IT upgrades, and the bank's view on credit quality.

    Answer

    The monthly margin fluctuated, with September being lower due to specific factors. The bank expects the margin to bottom out in the next 1-2 quarters, potentially declining another 5-10 basis points, but the outlook is uncertain. The 2024 tax rate is preliminarily budgeted at 13-14%. Delayed IT upgrades include a core conversion and other system enhancements expected in early 2024 to improve efficiency. Credit quality remains strong with no major concerns.

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    Chris O'Connell's questions to EVBN leadership

    Chris O'Connell's questions to EVBN leadership • Q4 2023

    Question

    Focused on the 2024 expense outlook, particularly the Q1 starting point for compensation. Also questioned the nature of Q4 deposit outflows, the timing of the NIM bottom, and the amount of assets expected to reprice in 2024.

    Answer

    Q1 salary expense is guided to be around $7.3 million, with 2024 incentive accruals lower than 2023. Q4 deposit outflows were almost entirely seasonal municipal funds, which are expected to return in Q1. The NIM may face pressure into Q2 before stabilizing or expanding later in the year, helped by about $300 million of assets repricing in 2024.

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    Chris O'Connell's questions to EVBN leadership • Q3 2023

    Question

    Asked for the spot Net Interest Margin (NIM) for September, inquired about the possibility of an insurance business sale combined with a balance sheet restructuring, and asked for the outlook on net loan growth and new loan yields.

    Answer

    The September spot NIM was not readily available. Management confirmed they consider all strategic options to create shareholder value, including potential transactions like an insurance sale, by evaluating long-term shareholder return and capital impact. Net loan growth is projected in the low single digits (2-3%), with new loan yields at 7.5% or higher.

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