Apr 19, 2018 • 08:00 am ET

Previous

Share
Close

Loading Event

Loading Transcript

Q & A
Operator
Operator

(Operator Instructions) And our first question comes from Jared Shaw from Wells Fargo Securities. Your line is open.

Analyst
Jared Shaw

Hi. Good morning.

Executive
John P. Barnes

Good morning, Jared.

Analyst
Jared Shaw

Just on the -- if we could start on the multi-family portfolio, what is the current balance there? And do you think that are you still that that's the faster pace of pay downs as we've come into the second quarter, do you think that you could be out of that portfolio maybe faster than you had originally expected?

Executive
David Rosato

No -- Jared, it's David. No the -- those loans were scheduled to pay off in the third quarter this year and they paid off late in March. So, our original guidance that we gave back in January of payoffs of $250 million to $300 million is still our current expectations.

Analyst
Jared Shaw

Yes. (inaudible)

Executive
John P. Barnes

There is $1.250 billion is the outstanding balance now.

Analyst
Jared Shaw

Okay. And then as we look at the capital levels here, understanding the benefit you got from the tax reform of 11 basis points, do you feel comfortable with sort of GCE ratio just below the 8%, the regulatory capital ratio is here, and would you feel comfortable doing another deal with the capital here sort of keeping in mind that we're probably still waiting for regulatory reform first?

Executive
David Rosato

Well, we had a nice capital build in the quarter, part of it we talked to the 11 basis points I just mentioned. Capital levels were a little higher than we expected just because the size of the balance sheet was a little smaller than expected. Our expectation would be that if we do have the opportunity to acquire in the banking space, it would most likely be a 100% stock deal. So, in no way would we think that our capital levels would be an issue around any type of acquisition.

Analyst
Jared Shaw

Great. And then, just finally, I guess, on M&A. Have you heard an increase at all on the level of interest on the part of potential sellers or people waiting for us to see what happens in Washington?

Executive
John P. Barnes

This is Jack, Jared, I think -- I think there is certainly some of that -- there is as always I guess, in my mind a mix of opportunities and challenges for the people that we have relationships with and that we talk to. And rates are coming up, people are hopeful about the economy and that makes them optimistic about progress. But, on the other hands, there is a lot of challenges around growing deposits, spending money on technologies that weigh on people. So, I think we are very anxious waiting on Washington. Given our size and the benefits of the Crapo bill, those that are smaller, it's less of an urgent issue. There is obviously some potential progress and relief in the proposal. So, I would say, it feels pretty normal right now.

Analyst
Jared Shaw

Okay, great. Thank you.

Executive
John P. Barnes

Thank you.

Operator
Operator

Thank you. And our next question comes from Mark Fitzgibbon from Sandler O'Neill. Your line is