Q3 2019 Earnings Call
Turning everyone and welcome to the Tristate Capital Holdings Conference call to discuss financial results for the three months ended September Thirtyth 2019.
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Tristate capital has no duty to and does not intend to update or revise forward looking statements. After the date on which they are made.
To the extent non-GAAP financial measures are discussed in this call comparable GAAP measures and reconciliations can be found them tristate capital's, earning release, which is available on its website I Tristate capital Bank Dot com.
Presenting tristate capital today is Jim gets chairman, President and Chief Executive Officer, He will be joined by David do you mind.
Chief Financial Officer for the question answer session.
At this time I would like to turn the conference over to Mr. guests.
Good morning.
And for joining us we're delighted to share our latest quarterly results with you. This morning, not only because the milestones achieved a record setting metrics libert, but more importantly, because we believe tristate capital's performance is indicative of the company's commitment to execution.
Long term growth potential and the confidence we haven't 2020 and beyond.
Our third quarter results clearly demonstrate the robust earnings power because they were built one that's designed to deliver growth and value in a variety of economic and rate environments.
You need organic loan growth propelled us over our 7 billion dollar as a target, which you might recall was one of them the.
Financial performance goals, we set for 2019.
Total surpassed 6 billion dollar threshold for the first time.
26% for one year prior.
In group was fully funded by 28% deposit growth compared to one year ago total deposits also crossed the 6 billion dollar Mark.
I want to deposit ratio was under 100%.
The second consecutive quarter.
Net interest income reached a record level for the quarter supported by double digit organic growth in both private banking and middle market commercial banking loans, which are up 28% and 24% respectively over the past 12 months.
At the same time, our income statement, it's not solely dependent on spread income and it's capable of producing strong earnings growth even in the current low live work and short term interest rate environment.
Non interest income continues to represent 30% of total revenue with fees, reaching new record levels for the quarter and first started much of the year.
We're very pleased with how our private banking commercial banking in investment management businesses are working together to deliver strong top and bottom line results third quarter revenue totaled a record $47 million a poor that 11% from one of your prior.
Through the first nine months of the year total revenue grew to a record 133 million up more than 10% from the prior year.
We continue to invest in our business with operating expenses in line with our stated single digit annual growth rate cool for full year 2019 at the same time scale, but what are you. The business is evident in the banks improving efficiency ratio, which is also in line with our low fiftys scope for this year.
Revenues portion pre tax income to new record highs for both the quarter on the first time much of the year on pace with our 15% to 25% pre tax income growth target for full year 2019.
Our strong topline results flow through the bottom line earnings per share up 50 cents grew more than 6% from the 47 cents. The company reported in the link second quarter, that's an annualized 25% increase in earnings.
Financial performance is the result of three businesses working in concert to drive differentiated and profitable growth.
Illustrating the flexibility and resilience of our unique model.
Our private banking business delivered one of its best all around quarters today, as we fortified tristate capital bank its position as the nation's premier provider of marketable securities backed plans through financial advisors through.
Through private banking, we provide products experienced and solutions to high net worth individuals trust and businesses nationwide access through a network of financial intermediary firms, which we have spent years cultivating.
And now numbers some 207.
Year to date, we have closed Snoop private banking loans with over 1000 individual advisors, who we had not worked with before 2019.
Private banking loan balances totaled nearly 3.4 billion at quarter end, representing 56% total loans and reflecting growth of 28% during the past 12 months.
And the number of third quarter private banking loan applications, we received increased over 26% for the same period in 2018.
About half of these applications are coming through our digital World class four and this continues to increase every quarter.
We built this digital lending platforms, the investment Advisors Trust officers and other intermediaries, we work with Delta more effectively and easily surpass the high network clients, we expect to attract even more applications through this platform in future periods.
Our middle market commercial banking business continues to have exceptional growth would total commercial loan balances a periodic period and growing to $2.7 billion, an increase of 24% from September Thirtyth 2018.
Commercial and industrial loans grew by nearly 29% or in the past 12 months approaching $1 billion see an eye originations remain strong totaling approximately 104 million in the third quarter I've seen our growth reflects the addition of high quality relationship managers to our team.
And enhancements to our capabilities, including more agile products like equipment finance.
Commercial real estate loans totaled $1.7 billion growing 22% from one year prior and comprising about 28% of total loans.
C. R E loan origination activity remains strong as well totaling $121 million in the third quarter.
Credit quality metrics remain pristine and in fact improved even further during the third quarter strong asset quality has become a hallmark of our performance and reflects the high touch nature of the relationship we've developed with our clients as well as the disciplined underwriting standards are art art.
Team employees.
Well, it's for our middle market commercial lending business continued to be robust and we expect continued strong loan growth and the fourth quarter.
Loan growth remains fully funded by our deposit franchise, including our sophisticated liquidity and Treasury management offering we now have more than 500, Treasury management clients, including deposit only and payments processing relationships with an essential need for tries to.
Capitals offering.
Treasury deposit.
Treasury management deposit account balances surpassed 1 billion dollar threshold, though and the third quarter year to date, we've grown treasury management deposits by approximately $450 million I look forward to achieving our goals about a 500 billion and treasury management deposits during 2019.
We continue to maintain flexibility in pricing deposits lesson, 30% of our deposits arbitration nature with a seven months duration just over half orbit institutional nature and reprice with the federal reserve rates or other indices, the remainder approximately 20% or are there.
Aggression, our total cost of funds for all deposits and interest bearing liabilities improved during the third quarter averaging 2.27%.
We're very pleased with our ability to lower our cost of funds by a full 15 basis points compared to 2.42% and the linked second quarter as we continue to focus on gathering lower cost deposits.
As you abate I've noted our third quarter news release fees from interest rate swaps exceeded $4 million during the third quarter. We believe borrower swap fee income will remain healthy and the two and a half million to three and a half million range for the fourth quarter.
Well borrower swap activity is largely driven by the rate environment, our relationship managers work, but basically to maximize this fee income opportunity. A Prime example is our success in building demand beyond our traditional commercial real estate borrowers within our large and growing private banking client base.
In the third quarter alone more than 20% growth swap fees were generated from private banking relationships.
The majority of our noninterest income is generated by Chartwell investment partners subsidiary.
Which grew assets under management by 1.4% to $9.6 billion during the third quarter.
Investment management fees for the third quarter totaled 8.9 million down approximately 9% year over year, while we no longer expect to achieve our full year 2019 organic growth goal for Chartwell revenues, we believe our unique products strong investment performance and outstanding distribution.
Ladies continue to gather positive momentum.
Chartwells active investment strategies continue to deliver superior performance through the end of the third quarter.
71% its products outperformed their respective benchmarks the year to date period, 57% of its products were ahead for one of your performance, 85%. We're ahead for three year performance and 75%. We're ahead for five year performance.
This level of performance has been the key to our ability to attract new business through the third quarter 2019, Chartwell has attracted about $200 million of institutional new business. This compares to a hard and 69 million of institutional do business during all 2018.
Overall, we're seeing a better environment on the institutional side business and one of which we are in a strong position to take advantage of impart because of the refinements, we've made to distribution and the experienced team we have assembled.
Today Chartwells institution on new business pipeline is strong as it's ever been we believe investors are increasingly searching for proven actively managed products to generate returns in this low rate environment.
Chartwell its track record and strategies that are difficult to replicate passively are capturing their attention.
Products like our short duration double B rated high yield that our midcap value strategy shine through here.
We believe we have good opportunities within the search activity.
At September Thirtyth, we had more than $80 million of institutional commitments that are anticipated to fund in the fourth quarter of 2019. In addition, we have considerably more new business in the pipeline that we're actively pursuing today and we aim to win more than our fair.
Sure in the months ahead.
We're also getting on the retail side of our investment management business, expanding our relationships with financial and registered investment advisors, who are increasingly attracted to the unique and high performing products we offer.
We have generated approximately $351 million in gross retail sales through September thirtyth of 2019.
[noise] as with regards to show business, our retail pipeline is strong as it has ever been.
As most of you know, we're actively evaluating opportunities to put our capital to work to grow investment management through its strategic acquisition that would help us take assets under management about $15 billion. Those efforts continue unabated as always we only pursue deals that will be.
Immediately accretive to Tristate capital shareholders are as strong cultural fit and provide complimentary products offerings.
[noise] Tristate Capital's leadership is invested in its success and remains focused on building long term value for shareholders. During the first nine months of 2019 about a dozen senior executives and board members each face significant acquisitions of Tristate capital common stock.
Totaling in excess of $8 million.
Strong earnings we reported in third quarter and year to date reflect the effective execution of our engaged and invested management team.
Our capital position is strong and enables us to be ready to act on an appropriate acquisition opportunity that may arise asset quality remains pristine and continues to differentiate us from peers and the industry, we have a diversified sophisticated and multi faceted funding mechanism in place.
In summary, we're well positioned for continued success in the fourth quarter and then on to the future.
That concludes my prepared remarks, this morning on as well as David damage. The joining me for QNX operator, Please open the lines.
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Our first question today comes from Russell Gunther with D.A. Davidson. Please go ahead.
Hey, good morning, guys part of this morning.
I wanted to start on the continued see an ice strength you guys have put up would be helpful to get a sense for what the equipment finance a vertical contributed this quarter, perhaps some color on sort of pockets of geographic strength.
And any other thing you'd like to add in terms of how you're able to sustain such such strong growth.
In see an eye.
As well as related asset quality outlook for that a loan bucket going forward.
Right.
Let's let's talk about the equipment finance.
First we want launch that business in January and Im seeing good growth there. So far this year at September 32019.
Had approximately 40 million in that portfolio, but typically that business has its biggest activity in the fourth quarter Russell as companies think about equipment needs for the new year. So we'd expect those balances to continue to grow nicely through the.
Through the remainder of the year.
On the Cfive front, a week see that continuing to.
Grow pretty handily up for us over the next couple of years.
We had laid the groundwork for this.
So a great extent during the during the recession when other banks were looking at inwardly, we had a and had their own legacy issues, we had capital and we had funding. So we laid the foundation for this and we're beginning to.
Right many that benefits by the up by the growth that we've been experiencing we're seeing this growth and see an eye across all our regions.
Some of it is particularly a predominant what we see developing like in the Philadelphia area, where there's been some disruption in the yet in the.
Banking arena, there with BP into your acquiring acquiring Susquehanna and.
And that and we've been able to acquire talent and.
And assets as a result of that but I I would say all four of our regions are actively participating here, we now have.
A group of people that up to the most part have been with US on average over 10 years other pretty well established and we expect this continued to grow.
Pretty nicely for us.
We have some capital call facilities that we have been picking up a as well and.
That businesses grow it's been growing pretty nicely and we have about $75 million outstanding there right now and we expected to go up about another 25 million as we go into the new year.
Great. Thanks, Jim I appreciate that and then just your.
Your view on.
The asset quality outlook within see an i. I understand that favorable dynamics and do a loss content within private banking that would just be helpful to get your guys sense.
Your view and perhaps normalized losses, we couldn't they're saying she and I bought into the next couple of years.
Well I'm surprised you Doug consider our current loss situation normalized.
I'm, assuming we're the only back you will speak to today that has a a zero percent in nonperforming loans.
So it's almost certain that is.
It's a $185 million to $5 million $184 million nonperforming loans, we fully anticipate the quality of this portfolio to continue as you're well aware over the years, we've invested a considerable.
Now to money in a top notch.
Credit analytical staff that we have a in place today and by considerable I mean millions of dollars or we have about 23 of them.
In place now their career.
On a analyst and they do very detailed.
Scrutiny on the individual credits they create what I would characterize is positive friction with the relationship managers.
In the field and they've really provided us with some strength that we.
We valued just like you do in the asset management industry.
It was security analysts the in place and it differentiates us from many of the other banks in the sense that that they look at their credit staff as a.
Intermediary step to becoming a relationship manager and these are clearly.
Career career people I think you probably met Tom growing them in our Chief credit Officer, I consider to end to be.
One of the best in the country you can mention any of our commercial credits to him and he is quite articulate on every single one of them and.
That's going through his staff. So we would say that I don't think our nonperforming loans are going to get any lower than the $184000 up with the 6 billion dollar portfolio, but I expect us to be in a in a very good situation going into new year that.
You are not that you're not going to see a lot of negative a activity there.
Thank you. The next question today comes from Michael pre deal with KBW. Please go ahead.
Hey, good morning, guys. Thanks for taking my question.
I wanted to start on kind of a.
Kinda combined Chartwell capital question here I mean, you guys.
With the low risk balance sheet, you have obviously have some room to whatever capital below kind of what we would expect to see <unk> peer banks with more traditional portfolios, but.
As we look at the Chartwell performance over the last five or six quarters, you know I think they have.
Struggled a little bit in the environment I think the net growth you guys have shown has had been solid but revenues have had kind of a Dow works Hilton and margins haven't really improve so I guess.
Question is is is what with how well the rest of your business is doing currently does does it make more sense to be allocating capital to the rope opportunities. There well you guys try to internally and pretty chartwell performance, a little bit or what do you think that that kind of allocating capital to chartwell could help accelerate their improvement by adding scale.
Overtime.
Okay.
Let me.
Give you give you a a clear a clear perspective on that on an as there. If you look at this from the standpoint, what their contribution is for the first nine months the year, it's around 19%.
Okay. So we consider that a a meaningful or type a type of contract contribution if you look at it holistically.
And if you look at it for this quarter I think it's about 10, 10% at this.
Okay.
But you have to ask yourself why are you in this business and you're in the asset management business because theres recurring fee income add provides this company with a lot of cash flow. Okay. So it really does strengthen the company and provide us with a much.
Higher level of.
A kid considerably higher level of up less risk profile for the where the company. So we consider it into a good part of the company from a performance standpoint.
The investment performance really couldn't get much better.
Okay. So you and I are talking about the that the financial metric contribution when we bought this company in a March of 2014 first year up the previous year that it had thrown off $25 million revenue. This.
Last year, the revenues going it's even more in line with 38% $38 million.
We expect.
The next quarter, because some of the opportunities we see on sales and a bit the flows are gonna look better.
So it's been in the past two quarters that we've had negative a negative flows here. So we feel really very positive about the business, we're comfortable with the leadership team and the investment team that that's in place here.
You have to realize that.
Things are not instant gratification if you.
Take a look back and I take you back to 2014 2015 2016 their contribution was in excess of 25%. Okay, 17, 18, and 19, it hasn't been up to a up to that that particular level, but either has the industry.
Okay that they find themselves in the pricing that we're finding in the marketplace is is quite quite attractive and.
We clearly a I would suggest to you if you dissect that their business you might want to look at the discipline. That's put in place around expense management there to match the revenue and retain the growth outlook based on performance and distribution. So you really have to dissect this a bit.
And you have to understand that this is a this is a business that has a lot of.
Runway with regard to growth into the future. So we feel to take it to additional critical mass is not the wrong thing to do.
And the way you can find the that marketplace today it's.
Becoming more of a sellers market.
A more of a buyers market I mean, then a sellers market, who previously was a.
<unk> was a a a sellers market. So we're pretty comfortable with the commitments strategically the we've made and we're very comfortable with the 30% of noninterest income that between chartwell and swap fees are generated here for the consolidated franchise.
Got it and then.
A separate question just you know the common paired remarks about the swap fees I think it was expected to be about two and a half the three and a half million in the fourth quarter I'm just trying to think about that while more broadly I mean, if we are.
Do you guys feel that that given the kind of the the expansion that you've done in offering that product beyond the commercial real estate customer base that now it's a it's a decent offset for you guys. If we kind of remain in an environment where rates continue to decline and which obviously will have some drag on your margin that.
That balance can remain a bit elevated in that type of environment and be a little bit more than offset for for the lower margin that you guys have had historically is that fair way to think about it.
The way the way that I would look at it I think I think it's a fair way, but let me give you a fair way to look at it.
Huh.
This is a this is a business that does absolutely prosper more in a declining rate environment, but when you've reached that that decline and that plateaus for a while people will continue to have an interest in this because they want to secure.
The secure the rate for the future. So we would expect to have a fairly robust business here.
Going into the new year with the commercial real estate business complemented by the by the private banking that business, which you saw the private banking business was about 20% of the a of the revenue there and we're just beginning to penetrate that.
That marketed at this time and we also have opportunities there with a various loans that were putting on sometimes there are some size secured by market bowls and the people want to lock in a rate so its a.
Not unusual like.
There the other day, we put a loan through and the seat was like $113000 on it. So it's a I wouldn't say classified as recurring fee income business like asset asset management is but it's going to be pretty consistent and a decline.
Okay and stable low interest rate environment.
The next question today comes from Matt Olney Stephens. Please go ahead.
Hey, Thanks, again, everybody or not.
Jim I wanted to start on the private banking business a bit seen some impressive growth in recent years I think you've noticed.
Part of that growth is from very little competition, but I'm curious what your take is on the discount brokers that are now racing towards Zero Commission.
Thank you did the private banking business the Tri State does.
Some decent size business with somebody discount brokers. So it seems like their model is changing right now and I'm curious how you believe these changes in their model could affect that the competition for your private banking channel.
Well were a threat from from our state standpoint, I think it's a I think it's a very positive situation because of the the because of the fact that maybe more people put securities with them because they can trade there securities for zero.
So.
It would be helpful to our clause if you want to look at that at that way to be quite candid I'm delighted we're not in that business at all we are for profit we're gonna organization here and.
That's gonna be more challenging for them, but at the end to you're probably aware the way. These broker dealers make a lot of their businesses. The free cash flow that goes through the company in the spreads they're able to make by putting it back into the back into the market some of them like a any trade have there.
Captive back to Schwab has their own captive back and there are able to deploy a lot of that cash and that manner.
So I I would say, we would we would say it as a long term positive situation as long as those folks can can continue to find.
Alternative.
Means of offsetting the level of trading income that they've been experiencing over the past couple of years, but as you're well aware that that level of income has been coming down throughout the broker dealer.
Marketplace <unk>.
Okay, I don't see it I've been at much of a major impact on our business of all.
And then Jim what about the impact of a Cecil.
Within your loan portfolio is very unique with Cecil reserve methodology, starting next year I'm curious what the impact will be on your future provisioning.
Hey, Matt It's David Good morning, good morning.
Tuned on C.. So we are preparing to provide a lot more detail and its potential impact on in our Form 10-Q , which we filed in early November .
Okay, great. Thanks, and I can take one more in David the tax rate volatile. So far this year, what's the outlook on the tax rate for the fourth quarter and looking to next year.
So Matt as you know we routinely evaluate a number of tax planning strategies historic tax credits as well as alternative energy and as always out effective tax rate in any given quarter is that is is the impact of both the timing of that as well as a proportion of consolidated earnings attributable to the bank versus investment management.
The change this quarter was driven by an unexpected outlook.
In terms of a tax credit that may not close now this year, which shot which caught us by surprise and it was also driven by really strong pre tax net income growth. So we see the effective tax rate being somewhere around 15% for the remainder of the year.
Again, if you have your question. Please press Star then one our next question today comes from Steve Moss with B. Riley FBR. Please go ahead.
Good morning, ordering Steve I apologize for jumped on late so if if my questions have been asked I apologize for that just do most started on a expenses any update or allergy and give on there and in particular, just the drivers in the compensation line.
If that sticky.
Steve Good morning, Thanks for joining the call. We we've had a focus on operating leverage for a number of years growing revenue to meaningfully higher rate than expenses and we've been able to do this some to put it into context two years to grow we're growing expenses at 17% last year were growing at <unk>.
In the 12 this year, our stated goals to grow that under 10, and we're accomplishing that goal so far and we're going to work hard to continue to grow that are to to grow expenses, a little less than double digits pace.
This is an organization that is highly motivated by incentive compensation virtually every employee is on some sort of incentive comp program and so its pretax net income rises and you see the production levels that we're seeing and swap income across the loan book et cetera.
Compensation increases and so that that increases proportionately.
In accordance with the growth so that's really what the driver is.
For the company increased this quarter as Steve. This is Jim if you look at the.
Financial metrics or that we really pay a lot of attention to you'll see a if you compare the first nine months of 18. The first nine months of EUR 19, you'll see that our revenue was up 18% and our expenses and we'd indicated to folks.
In January we expected to have our expenses and this single digit number for this year in expenses were up 8% and we we really pay an awful lot of attention to pretax net income because we feel that's the.
Core of the company and you can analyze the cord look looking at that and that's up a year to date for the first nine months over 20, 820% and EPS is up about 11% so that as a and that pre tax is what drives the metrics.
And a lot of our compensation programs here to be candid with you.
Right.
That's helpful and then.
My second question just wondering given the current version we saw higher in the quarter and and the challenges of being a corner.
If you could quantify that impact to the margin for the quarter any help on that would be would be great.
Well I'll, let David work to quantify but let me let me let me talk to you a little bit about our perspective on a net interest margin okay.
For the business that we're building we're building a business where relationships are paramount and we continue to be gathering relationship deposits to fund a very high quality borrowers credit needs. We're also building a business that's much leaner like you're probably aware that not net in net interest income doesn't include.
ER or any type of a expenses and so our noninterest.
Expenses are about 25% to 30% less than other.
Organizations our size if you take a look at the risk profile, that's not not there and the net interest margin.
Our earning assets are dramatically different than other institutions, and we would argue lower risk and that case inhibit our back and others does not reflect the competitive advantage, we enjoy from having a branchless operation. We're also generating about 30% of our revenue from noninterest income.
That isn't there either and if you look at our.
Marketable securities backed loans, particularly the large dollar <unk> dollar righty, while they're lower and spread it contributes to our ongoing reductions in our efficiency ratio. That's now for the back around 50 or 50%. So.
We also believe we've been a leader in deposit pricing and while competitors catch up we expect our funding cost the moderates for the second half of a 19, assuming the fed funds target rate ranges maintain or incrementally lowered in the back half of the year.
Do you want to comment yes, Steve as Jim is.
So well described it's a it's a business model that he formulated no more than 10 years ago that.
It's very agile and demonstrate good growth and good results in a variety of environments.
About 95% of our loan book is variable rate about 75% of our deposit book [noise].
Variable rate and so as you heard Jim talk about as we've seen the cost of funds come down measurably a in the quarter.
There are times when effective fed funds and Libra, those two relationships get a little bit out of whack when LIBOR is anticipating.
But cut which occurred in the quarter.
I don't have an exact number but I would estimate that impact to be somewhere between six and $800000 of impact for the third quarter.
Alright, Thank you very much.
Your next question today is a follow up from Russell Gunther of D.A. Davidson. Please go ahead.
Hey, Thanks, guys, just a bit of it Ticky tacky question, David I carry.
On the recommit mid to high single digit expense growth for this year, maybe just a little color for modeling purposes on the dynamic going forward within.
The.
The state capital share stacks. Please.
Sure. So we had the benefit of a one time.
Item this quarter that we worked very carefully with external advisor as it was a strategy that we identified we talk to stay to Pennsylvania about it and where we were able to prevail on that.
I don't expect it to continuing so I'd expect that we would we will get back to more historic norms in terms of the shares tax expense.
Great. Thanks, so much.
Your next question today comes from Michael Perito with KBW. Please go ahead.
Hey, Thanks, guys for taking the follow up questions I'm just first on the follow up on the margin David I'm, just looking through the average balance sheet and the cash balances looked a little elevated do you have any insight as to how does that normalize since you on a period and basis and how would that you know presumably.
He had a little two or three basis points to the NIM those rather more normalized level in the quarter.
They have normalized like and as we've I think shared with you on a path I think you had a question on this quarter or two ago, given where the rate environment is at the moment and we've been staying liquid in short.
And been holding cash and cash equivalents versus putting money to work in the investment portfolio right now so liquidity strong it will remain strong.
And we really like the balance sheet position at the mall.
Got it and then I was wondering Dave can you provide it said I don't know if there's something you have handy, but like you know what the incremental assets and liabilities that you're adding to the balance sheet can you maybe share what the spread or the margin looks like on that relative to two kind of the legacy balance sheet.
I guess, you know what I'm trying to get out is trying to get a sense of where you know that 75% variable deposits, 95% bearable loans as you guys grow, though I imagine the incremental funding costs will come down I'm, just trying to get a better sense of that dynamic if you have any figures around that.
Give you some facts and hopefully it gives you enough color. Let me start on deposits are CD book is about a seven month duration right now and the yield on that is about to 50 at the moment were new cities are being issued somewhere around 180 to 185, and so good pricing opportunities there that very short.
D portfolio matures and Reprices on the loan side, we're putting new cnine loans on somewhere between 215, and 250 over LIBOR or commercial real estate is going on somewhere between 225 in 250 to 60 over LIBOR and then private banking is going on at about 150 to two.
250 over LIBOR and so that's where pricing stands at the moment you know we we continue to feel that we've got a really good agile business model and can respond to a variety of interest rate scenarios.
Helpful. Thank you I appreciate it.
Well.
This concludes our question and answer session I would like to turn the conference back over to Jim gets for any closing remarks.
Thank you very much for your continued interest in Tristate capital on your participation today, we look forward updating you on our fourth quarter and full year 2019 results in January I have a great day and happy new year.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.