Sign in

    Christopher O'Connell • KBW

    Christopher O'Connell's questions to Associated Banc-Corp (ASB) leadership

    Christopher O'Connell's questions to Associated Banc-Corp (ASB) leadership • Q2 2025

    Question

    Christopher O'Connell of Keefe, Bruyette & Woods (KBW) asked about the sustainability of positive operating leverage into 2026. He also inquired about the hiring pipeline for relationship managers, plans for future strategic investments, and the expected glide path toward the company's mid-teen Return on Tangible Common Equity (ROTCE) target.

    Answer

    President and CEO Andrew Harmening affirmed that continuing positive operating leverage is the goal for 2026, driven by momentum in RM hiring, commercial loan growth, and disciplined expense management. He noted that talent acquisition has improved, with significant potential from recently hired RMs whose non-competes are expiring. While not feeling pressure to add new initiatives, the team will evaluate them in H2 2025. He expressed confidence that the current strategy will position the bank to reach its mid-teen ROTCE target over the next 12 to 24 months.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Blue Foundry Bancorp (BLFY) leadership

    Christopher O'Connell's questions to Blue Foundry Bancorp (BLFY) leadership • Q1 2025

    Question

    Christopher O'Connell asked for clarification on the accounting for credit reserves on purchased consumer loans and their specific reserve levels. He also inquired about current CD offering rates, the rates and duration of recent brokered deposits, the drivers for the expense outlook, long-term margin potential, and the strategy and potential triggers for altering the pace of the share buyback program.

    Answer

    CFO Kelly Pecoraro explained that purchased loans are included in the CECL calculation and come with a 3% reserve level. She stated current promotional CD rates are 4.20% for 3 months and brokered deposits were secured around 3.75% for a 2-3 year duration. Both Pecoraro and CEO James Nesci attributed future expense growth to potential banker hires and variable compensation tied to performance. They identified early 2026 as a key period for margin expansion from loan repricing. Regarding buybacks, Nesci confirmed the program will continue due to its positive impact on tangible book value, but noted that significant loan growth opportunities or market volatility could change its pace.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Blue Foundry Bancorp (BLFY) leadership • Q4 2024

    Question

    Christopher O'Connell asked for details on the December spot margin, the potential for margin expansion in 2025, the expense outlook, variable compensation metrics, construction loan yields, and the pace of share repurchases.

    Answer

    CFO Kelly Pecoraro stated the December spot margin was around 1.90% to 1.92% and expects a similar pace of margin expansion to continue, contingent on loan growth and deposit repricing. She guided for quarterly operating expenses in the mid-to-high $13 million range for 2025 and noted that variable compensation is tied to loan growth, low-cost deposit growth, and net interest margin. CEO James Nesci and CFO Kelly Pecoraro added that the construction portfolio recycles constantly. Pecoraro also affirmed the company would remain active with share repurchases at current price levels.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Blue Foundry Bancorp (BLFY) leadership • Q3 2024

    Question

    Christopher O'Connell asked about the current loan pipeline strength and yields, the strategy for managing the high concentration of CDs in the deposit mix, and the outlook for the net interest margin (NIM), including deposit betas and the impact of potential Fed rate cuts.

    Answer

    CFO Kelly Pecoraro reported a stronger loan pipeline of over $60 million at approximately 8.7% yields and projected a Q4 NIM in the low 1.90% range. Executive James Nesci added that the bank is prepared for a cyclical shift from CDs to core savings products and is well-positioned to benefit from a normalizing rate environment. Pecoraro also noted that roughly $300 million in CDs are set to reprice in the fourth quarter.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to NBT Bancorp Inc (NBTB) leadership

    Christopher O'Connell's questions to NBT Bancorp Inc (NBTB) leadership • Q1 2025

    Question

    Christopher O'Connell of KBW followed up on the Evans deal, asking for the purchase accounting impact on the margin. He also inquired about loan repricing opportunities, the health of the consumer, balance sheet plans post-close, and the company's appetite for future M&A.

    Answer

    Executive Scott Kingsley clarified that the entire decline in the Evans EPS accretion estimate was related to purchase accounting marks. He detailed loan repricing opportunities, noting the most significant pickup is on the commercial side. CFO Annette Burns commented that consumer health remains strong. Kingsley explained that NBTB has been pre-investing in securities ahead of the deal and may churn some of Evans' portfolio. He stated that while the current focus is on integrating Evans, the bank continues to have M&A dialogues.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to NBT Bancorp Inc (NBTB) leadership • Q4 2024

    Question

    Christopher O'Connell from Keefe, Bruyette & Woods sought clarification on the 2025 expense outlook, the growth prospects for fee-based businesses, the timing of the Evans merger close, and potential post-merger balance sheet actions. He also asked for spot margin data and the long-term outlook for the residential solar loan runoff.

    Answer

    CFO Annette Burns confirmed the expense guidance includes merit increases. Executive Scott Kingsley expressed bullishness on fee businesses, targeting mid-single-digit growth, and affirmed the Q2 2025 merger closing date to ensure a smooth systems conversion. He noted the annual runoff rate for the solar portfolio is a good proxy for future periods.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to NBT Bancorp Inc (NBTB) leadership • Q3 2024

    Question

    On behalf of Christopher O'Connell, Angel Eiser asked for guidance on the expense run rate for Q4 and into 2025, given the elevated incentive accruals in the third quarter. She also inquired about the spot deposit cost for September, the near-term outlook for the net interest margin, and whether the company had provided a deposit beta assumption for the current rate-cutting cycle.

    Answer

    CFO Annette Burns clarified that Q3 expenses included about $0.03 per share in additional incentive compensation and that the run rate should normalize in Q4. For 2025, she guided to a 4-5% increase in expenses from that normalized base. Executive Scott Kingsley stated that September's spot rates were not materially different from the quarterly average. He noted that future margin performance depends heavily on the yield curve developing a slope, as the recent 50-basis point rate cut was larger than anticipated. He declined to provide a specific deposit beta assumption on the call.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Brookline Bancorp Inc (BRKL) leadership

    Christopher O'Connell's questions to Brookline Bancorp Inc (BRKL) leadership • Q1 2025

    Question

    Christopher O'Connell from Keefe, Bruyette & Woods asked about the outlook for commercial real estate runoff, the rationale for expense guidance, the timing of the post-merger system conversion, and the bank's exposure to the Cambridge and lab space markets.

    Answer

    CFO Carl Carlson noted the Q1 CRE runoff was accelerated but doesn't expect a similar magnitude going forward, and that the expense guide reflects the original budget, with current spending running well below plan. CEO Paul Perrault explained the system conversion is slightly delayed to February, which will shift some cost savings, but the net effect is not material. Management stated that lab space exposure is minimal at approximately $50 million and is not concentrated in Cambridge.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Brookline Bancorp Inc (BRKL) leadership • Q4 2024

    Question

    Christopher O'Connell from Keefe, Bruyette & Woods questioned why the quarterly margin expansion wasn't greater, the components behind the difference between core and total loan yields, and the yield on new originations. He also asked for updates on actions to manage pro forma CRE concentration post-merger and the impact of credit model weighting shifts on the reserve.

    Answer

    CFO Carl M. Carlson attributed the modest margin expansion to the timing of deposit rate changes and sub-debt repricing. He stated the Q4 loan origination yield was 734 basis points. Regarding the Berkshire merger, Mr. Carlson reiterated that it accelerates their existing CRE reduction plans but offered no new details. He also explained that shifts in reserve model weightings are a gradual management decision, though he estimated a hypothetical shift to neutral targets could impact the reserve by $6 million to $10 million.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Brookline Bancorp Inc (BRKL) leadership • Q3 2024

    Question

    Christopher O'Connell questioned the future charge-off outlook for the runoff specialty vehicle portfolio, the drivers behind the provision for unfunded commitments, the long-term outlook for the overall reserve ratio, details on CRE LTVs in the medical category, and the yields on maturing and newly originated CRE loans.

    Answer

    CEO Paul A. Perrault expressed hope that charge-offs in the specialty vehicle portfolio would improve as balances decline. CFO Carl M. Carlson explained the provision for unfunded commitments decreased due to updated models and a shift in economic scenario weightings. He suggested the general reserve of around 110 basis points (excluding specifics) could decline over time. He also stated that maturing CRE loans have yields around 6%, while new commercial real estate originations in the quarter were at a weighted average coupon of 7.22%.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Bankwell Financial Group Inc (BWFG) leadership

    Christopher O'Connell's questions to Bankwell Financial Group Inc (BWFG) leadership • Q1 2025

    Question

    Christopher O'Connell inquired about the strategic impact of new deposit teams, the 2025 loan growth outlook, and drivers of net interest margin expansion, including loan yields and deposit costs. He also sought details on SBA business performance, fee income guidance, expense trends, credit quality following recent NPA dispositions, and the company's share repurchase strategy.

    Answer

    President and Chief Banking Officer Matthew McNeill explained the new teams are deposit-focused and that loan growth was impacted by unexpected Q1 payoffs but the pipeline remains robust. CEO Christopher Gruseke affirmed the low single-digit loan growth outlook for 2025 and noted guidance assumes no Fed rate cuts. CFO Courtney Sacchetti detailed the drivers of margin expansion, providing a core loan portfolio yield of 6.40% and explaining that deposit cost improvements were partly offset by one-time fees on called brokered CDs. McNeill also discussed the strong start to the SBA business, while cautioning about potential regulatory changes. Regarding credit, he provided updates on remaining NPAs and clarified that the increase in special mention loans was related to performing healthcare credits backed by strong sponsors. Gruseke concluded on capital, stating the company will balance share repurchases with the goal of building its CET1 ratio.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Bankwell Financial Group Inc (BWFG) leadership • Q4 2024

    Question

    Christopher O'Connell of Keefe, Bruyette & Woods inquired about Bankwell's loan pipeline, origination yields, and growth outlook, particularly concerning the CRE concentration. He also asked about capital allocation priorities between building the CET1 ratio and share buybacks, the expected ramp-up of the SBA lending division and its impact on fee income, and the drivers behind the net interest margin (NIM) guidance. Further questions covered the cadence of expense growth, the timing and details of significant non-performing asset sales, the status of remaining non-performers, the risk profile of the maturing office loan portfolio, and the expected tax rate for 2025.

    Answer

    President and Chief Banking Officer Matthew McNeill stated that new loan originations are yielding around 7%. CEO Christopher Gruseke clarified that loan growth is moderated by the goal of increasing the CET1 ratio to 11%, not just by CRE concentration. Regarding capital, management explained that buybacks are weighed against growth profitability and have a modest impact on capital ratios. For the SBA division, they project $50 million in 2025 originations, with the majority in the second half, expecting to double non-interest income. CFO Courtney Sacchetti addressed the Q4 NIM, attributing the dip to lower loan fees and high cash balances, and projected a rebound from a normalized 2.70% base toward 2.90% for the full year 2025, driven by CD repricing. She also guided to a 24.5%-25% tax rate. Management confirmed the pending sales of two large non-performing assets should close soon, significantly reducing the NPA ratio, and provided updates on the remaining challenged credits.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Bankwell Financial Group Inc (BWFG) leadership • Q3 2024

    Question

    Christopher O'Connell of Keefe, Bruyette & Woods asked about Bankwell's balance sheet and margin outlook for 2025, the impact of new small business lending initiatives, long-term capital targets, and the expense run-rate. He also sought details on a specific nonperforming multifamily loan, the Bankwell Direct digital platform, and the go-forward tax rate.

    Answer

    CFO Courtney Sacchetti provided guidance on loan and deposit repricing, confirming a Q4 NIM estimate of 2.70% and a long-term tax rate of 24.5%. CEO Chris Gruseke and CBO Matt McNeill detailed the strategy for a stable balance sheet, emphasizing a mix shift towards C&I and SBA lending, with sales of guaranteed portions, and away from investor CRE. Gruseke outlined a CET1 capital target of over 11% by late 2026 and noted that investments for new initiatives are largely already in the expense run rate. CIO Ryan Hildebrand also discussed the flexibility of their tech-driven initiatives.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Berkshire Hills Bancorp Inc (BHLB) leadership

    Christopher O'Connell's questions to Berkshire Hills Bancorp Inc (BHLB) leadership • Q1 2025

    Question

    Christopher O'Connell of Keefe, Bruyette & Woods asked about the current state of loan demand, the expected trajectory of the expense base, and the normalized range for net charge-offs following the runoff of non-strategic portfolios.

    Answer

    CEO Nitin Mhatre indicated that loan demand is slowing but expects annualized growth to remain around 5%. CFO Brett Brbovic projected that the expense base will stay relatively stable. Nitin Mhatre added that the normalized net charge-off rate is anticipated to be around 20 basis points, given current economic uncertainties.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Berkshire Hills Bancorp Inc (BHLB) leadership • Q3 2024

    Question

    Christopher O'Connell of Keefe, Bruyette & Woods inquired about the validity of previous 2024 guidance, the rationale for expecting higher deposit betas in a falling rate environment, and requested spot rates for deposit costs and the net interest margin (NIM).

    Answer

    CFO Brett Brbovic confirmed the Q4 outlook, expecting NIM between 3.10% and 3.20%, flat to slightly down revenue, and modestly lower expenses. CEO Nitin Mhatre explained that significant CD maturities and swap rollovers provide tailwinds to manage deposit costs down. Brbovic provided the September spot deposit cost of 2.41% and a spot NIM of 3.10%.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Amalgamated Financial Corp (AMAL) leadership

    Christopher O'Connell's questions to Amalgamated Financial Corp (AMAL) leadership • Q1 2025

    Question

    Christopher O'Connell of KBW asked for an update on the political deposit pipeline, the source of strong early Q2 deposit growth, the strategy for using off-balance sheet deposits, the expected expense ramp-up, and whether any tangible impacts from the new political administration have been observed.

    Answer

    Chief Banking Officer Sam Brown confirmed that the 11% growth in political deposits was expected and that overall deposit growth was well-diversified. Executive Jason Darby explained that the off-balance sheet strategy is a secondary lever, used after on-balance sheet growth targets are met. He also reaffirmed the full-year expense guidance, attributing the expected ramp-up to digital transformation costs and deferred hiring. Priscilla Sims Brown and Sam Brown stated that while they are monitoring risks, they have not seen tangible negative impacts on customers, noting the not-for-profit loan portfolio has minimal exposure to federal grant funding.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Amalgamated Financial Corp (AMAL) leadership • Q4 2024

    Question

    Christopher O'Connell of KBW sought details on Amalgamated Bank's 2025 financial outlook, asking for specific expense guidance, the expected pace of PACE loan growth, and the assumptions for Fed rate cuts embedded in the NII forecast. He also inquired about the nature of recent deposit outflows, the expected timeline for their recovery, the outlook for consumer solar charge-offs, and the appropriate go-forward tax rate.

    Answer

    Executive Jason Darby provided a 2025 expense target of approximately $170 million, a 6% increase, to fund strategic investments. He also outlined a target of ~$150 million in net PACE loan growth for the year. Darby confirmed the NII guide assumes two Fed rate cuts and that Q1 NII may see slight compression as deposit balances rebuild slowly after seasonal and election-related outflows. President and CEO Priscilla Sims Brown and Chief Banking Officer Sam Brown characterized the outflows as predictable and cyclical. Regarding credit, Darby stated that consumer solar charge-offs are modeled to be similar to the prior year. Sam Brown provided a go-forward effective tax rate of approximately 26.85%.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Amalgamated Financial Corp (AMAL) leadership • Q3 2024

    Question

    Christopher O'Connell of Keefe, Bruyette & Woods asked about the loan pipeline's mix and yields, the net interest margin trajectory amid rate cuts, the Q4 outlook for the off-balance sheet strategy, and the timeline for reaching the new Tier 1 leverage target and its impact on share repurchases.

    Answer

    Chief Banking Officer Sam Brown noted a strong forward pipeline in real estate and C&I, with an expected 1-2% growth in Q4. Executive Jason Darby provided specific new origination yields, with CRE in the 6.25-6.5% range and C&I in the upper 7-8% range. Darby anticipates a stable Q4 margin, with potential for modest NII growth in 2025. He also projected lower off-balance sheet fee income in Q4 and stated that the pace of securities restructuring will slow. He expects to hit the 9% Tier 1 leverage target by Q1 or Q2 2025 and will provide a full-year capital return plan on the next call.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Independent Bank Corp (Massachusetts) (INDB) leadership

    Christopher O'Connell's questions to Independent Bank Corp (Massachusetts) (INDB) leadership • Q1 2025

    Question

    Christopher O'Connell sought confirmation on the net impact to the Q2 net interest margin from sub-debt and core expansion, plans for deploying cash from the debt raise, and capital deployment priorities post-acquisition.

    Answer

    CFO Mark Ruggiero confirmed the Q2 margin would see an approximate 11 basis point headwind from the sub-debt, partially offset by 3 to 4 basis points of core margin expansion. He stated the cash proceeds would be used to support loan growth, fund the cash portion of the Enterprise acquisition, and pay down acquired debt, indicating they would not rush deployment. Regarding capital, Ruggiero prioritized organic growth but noted that given the modest growth outlook and the bank's valuation, a share buyback 'makes sense'.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Independent Bank Corp (Massachusetts) (INDB) leadership • Q4 2024

    Question

    Christopher O'Connell inquired about the upcoming core system conversion, the timing of sub-debt issuance for the Enterprise deal, the regulatory tone on the acquisition, and sought clarity on the margin outlook for 2025.

    Answer

    Executive Jeffrey Tengel and CFO Mark Ruggiero detailed that the core conversion is a significant upgrade to a more efficient FIS platform, enhancing capabilities in cash management and branch operations. Ruggiero noted there is no specific timing yet for the sub-debt issuance. Tengel stated there has been no change in tone from regulators regarding the deal's approval timeline. Ruggiero clarified the guided 12-15 bps margin expansion is a one-year outlook and that CD repricing should provide a net lift in the first half of 2025.

    Ask Fintool Equity Research AI

    Christopher O'Connell's questions to Independent Bank Corp (Massachusetts) (INDB) leadership • Q3 2024

    Question

    Christopher O'Connell of Keefe, Bruyette & Woods asked for the total dollar amount of criticized and classified loans maturing in the second half of 2025. He also probed for the bank's long-term, normalized net interest margin (NIM) potential in a positive yield curve environment and the expected timing of a positive inflection point for the NIM.

    Answer

    CFO Mark Ruggiero estimated that $15 million to $18 million in criticized loans are set to mature in the latter half of 2025. Regarding the NIM, Ruggiero was hesitant to provide a specific target but described the bank's liability-sensitive position as favorable for future rate cuts. He suggested a NIM in the 3.85%-4.00% range was a 'fair potential' in a normalized environment. He projected the NIM would reach a positive inflection point around mid-2025, after the bulk of higher-cost CDs reprice in the coming quarters, allowing the benefits of rate cuts to materialize.

    Ask Fintool Equity Research AI