Gregory Szin

Gregory Szin first asked for a breakdown of wealth assets under management (AUM) growth between market appreciation and net flows. He then sought more details on non-performing credits, including their location and whether they were in downtown Boston, and finally inquired about the conditions under which the company would consider a larger-sized loan sale for non-performing or criticized portfolios.

Answer

CFO David Rosato reported approximately $200 million in net flows for the fourth quarter, indicating strong momentum in wealth management. Regarding non-performing loans (NPLs), he clarified that they are not located in downtown Boston, are entirely from HarborOne, primarily commercial real estate (CRE) with one C&I loan, and were thoroughly assessed during the merger. CEO Denis Sheahan and CFO David Rosato expressed confidence in resolving these loans quickly through individual action plans, stating that a blanket portfolio sale is not deemed necessary.

Gregory Szin asked for a breakdown of AUM growth between market appreciation and net flows. He also sought more details on the non-performing credits, specifically if they were located in downtown Boston, and whether the company would consider a larger-sized loan sale for non-performing or criticized portfolios.

Answer

CFO David Rosato reported approximately $200 million of net flows in Q4, indicating strong momentum from business integration and referrals. Executive Chair Bob Rivers clarified that the NPLs were not in downtown Boston, were entirely from HarborOne, mostly CRE with one C&I loan, and were thoroughly assessed with resolution plans in place. CEO Denis Sheahan and David Rosato stated that a blanket portfolio sale was not necessary, as they are confident in resolving these loans relatively quickly, similar to past experiences.