The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Michael Perito - Keefe, Bruyette, & Woods, Inc., Research Division - Analyst
: I just have a few kind of clarification things I want to kind of talk to quickly here. So on the expense side, Michael, you said, I think, after some of
the backfill, $7 million to $8 million per year. So to take that kind of just a step further here, I mean, is that kind of to say that we're at $84.5 million
core in the third quarter here, that should step down to under $83 million early next year once all these actions are in the full run rate? Is that --
anything else that we should be thinking about? Or is that fair?
Question: Michael Perito - Keefe, Bruyette, & Woods, Inc., Research Division - Analyst
: Okay. And then I appreciate the commentary on the kind of the M&A outlook. But as we kind of take that to the next level, too, and think about
the share repurchases here, I mean, it seems like based on your prepared remarks that there's some appetite for that to continue. I guess, just trying
to kind of think of the magnitude of that. I mean is it fair to think that with more asset or bank-oriented M&A looking to be more challenging right
now that you guys probably have a little bit more appetite to use capital on share repurchases, as a lot of these trust assumptions that you guys
have made in the past haven't really had that big of an impact on your capital position?
Question: Michael Perito - Keefe, Bruyette, & Woods, Inc., Research Division - Analyst
: Okay. And then just lastly, I just -- not to get too dense here, but I just want to make sure I'm understanding the deferral trend correctly. So at the
end of the quarter, about 34% of the mortgages were still taking the deferral at the conclusion of the program, and then you guys reached out to
about 20% of the total customers. The vast majority have said that they're able to make the payments. So is the clarification there that the only
reason they haven't made the payment here is because the payment at that time hadn't come due yet and -- but you expected them to? And so
really, by the end of next quarter, that number should probably be less than 5% of mortgages that could potentially still be on deferral, is that
correct? Or am I missing something?
Question: Michael Perito - Keefe, Bruyette, & Woods, Inc., Research Division - Analyst
: Makes sense. And then on that point about the kind of exiting the high season here. Do you feel that the hotel operators on islands, for the most
part, have enough cash to get through the winter here and, hopefully, be positioned to open up for a better season next year? Or how are they
thinking about that?
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