67 WALL STREET, New York - January 7, 2014 - The Wall Street Transcript has just published its Northeast and Mid-Atlantic Banks Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Interest Rates and Loan-Growth Strategies - Regulatory Outlook Gains Clarity - Regulatory Obstacles and Fee Income Replacement - Rise of Commercial and Industrial Lending - Pockets of Growth in Northeastern Banking - Annualized Loan Growth Acceleration - Prolonged Interest Rate Environment Challenges - Midcap Market Share Gains
Companies include: Oritani Financial Corp. (ORIT) and many more.
In the following excerpt from the Northeast and Mid-Atlantic Banks Report, the President and CEO of Oritani Financial Corp. (ORIT) discusses company strategy and the outlook for this vital industry:
TWST: Have you seen any blowback at the community banking level against executive compensation?
Mr. Lynch: Not at Oritani. We have had overwhelming shareholder approvals of our compensation package, including our annual bonus and equity incentive plans, and more recently shareholder "say on pay" advisory votes. We have paid a bonus every year since we went public, strictly tied to profitability. The bank was a mutual until January of 2007, when we sold 30% of bank to the public in what's called a mutual holding company transaction, where the other 70% remained mutual. That was right at the beginning of the financial crisis.
We have been profitable every year since I became CEO, although we did have some individual loan losses starting around the time of the financial crisis. In fact, it was probably the first losses I'd ever seen here in my tenure. In my prior career, I was very familiar with losses because of the nature of that business. Our annual bonus is heavily driven by incentives, starting with a net income "gate," and then financial metrics requiring us to equal or exceed peer group financial performance.
TWST: What new regulations concern you and the bank?
Mr. Lynch: The biggest regulatory concern to Oritani, and most banks, is the new regulations being issued by the CFPB. The new mortgage regulations scheduled to go into effect in January 2014 will impact consumer mortgage originations and servicing. Clarifications and modifications are still being issued by the CFPB, and compliance by January will be challenging.
Another regulation deals with commercial real estate lending and requires banks to adhere to certain underwriting practices if their commercial loan portfolio exceeds 300% of their capital. We have always adhered to strict underwriting criteria, and we comply with all the regulatory requirements. BSA requirements are always a high priority at Oritani. Our staff is diligent in these matters, but it is frustrating to see the amount of time, effort and paperwork involved in compliance.
I am concerned that...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.