Q4 2019 Earnings Call

Deposit Gathering abilities up in our Minnesota markets that so we should do a better job of that in in in twenty. And as I look at the pipeline today, we have robust activity again in all four markets things are things are perking very well with that. I'm going to turn it over to Harley and he's going to give us a little more insight as to asset quality.

Thanks.

Brad I'm going to talk a little bit about the watch lists and credit Trends and then just some information on our we are just completed regulatory exam but to start with our watch list is at a very low level even from our historical basis. I had a lower watch list for a number of years, but it might be in the best position that it's been that I can remember all credits within the watchlist wage are properly structured and performing on repayment. We have a very low level of nine accruals. We have zero credit loss potential with a grammatical category all are very well secured and performing

From an overall portfolio perspective. We have a very seasoned portfolio that is continued to perform and grow when we do our stress testing on Thursday week and see the total level of loan-to-value on the portfolio. It continues to decline on the commercial real estate side page new new credit that's being put within the portfolio is properly secured and backed up with strong individual guarantee off.

we just

Just add our regulatory exam with the FDIC and in that exam. We did not have any risk rating changes off within that exam that they have told us. So you can look at them along with our independent review of our loan files that we have continued to keep a very strong consistent and accurate counting of our credit and it's it's risk ratings you go on to look at specific markets are Eastern Iowa City Market this last month at a tremendous here and they increased their loan balances vary by almost 25% over the years.

it also had an

They've been doing this with current customers that have strong balance sheets and good good projects Raja. Our year-over-year was a fairly flat year due to a very large loan payoff. But since the day of by the end of the year, they came back to being at the level that they were at the beginning of the year and they have a strong pipeline going forward in our new Minnesotan locations. We started as Dave said with no Bank building no customers and not having to purchase the echo an existing business and try to improve upon it we started with very good bankers and the customers are coming in the loans and deposit balances are growing club.

We have a great pipeline going into this next year what we put on the books and our new Minnesota locations is almost entirely cni credit and older occupation real estate. I think we have less less than 10% of the new credit that was put on in the new Minnesota markets was nine owner occupied. So it's been a nice addition for our franchise be able to put that type of new business on the books and we look forward to having an exceptional exceptional year in all those markets and in addition to our existing Central Iowa Market with that. I took the turn it back over to Doug. Okay. I'll make a comment on a few items here. We did have a provision for loan loss and in the third or the fourth quarter of birth.

$300,000

So that ended up being a provision of $600,000 for the year and that was primarily due to to our loan growth. We did have a couple of charge offs during the year. But really the provision was related to the loan growth that we had, you know, just to comment on our margin we would expect that maintain where it's at currently going forward. There might be just a slight Improvement in the first quarter due to the fact that will have a full quarter benefit of the lower deposit costs as a result of fed Cuts during the fourth quarter and we'll be adding, you know more loan balances in the first quarter, but for the most part, I don't anticipate our margin changing much from from where it was in the fourth birth.

I will point out that we used additional FDIC credits on our insurance premium to wage of $227,000 in the fourth quarter and we have $73,000 remaining that we will carry over into the first quarter of 2018. And then lastly I'll give some of you may be interested in just some quarterly average numbers that aren't available because we haven't filed our life yet. And and we won't do we anticipate filing that on or around February 28th, but for the fourth quarter are average assets were 2670000000.

Average equity for the fourth quarter was 206505000 and average loans for the quarter worth 1875000000 with that. We will entertain any questions.

Now begin, the question-and-answer session ask a question may press * then 1 on your touchtone phone. You're using a speakerphone. Please pick up your handset before pressing the keys.

Let's draw your question, please press * then two.

This time we'll pause the momentarily assemble our roster.

And if you have a question, please press * then 1.

We don't have any questions at this time like to turn the conference back over to mr. Golden for any closing remarks. Okay. Well, I guess we covered everything. So that's all we have for today. We appreciate your interest in our company and we'll cover the first quarter towards the end of April . So thank you for joining us off.

France is now concluded they never knew stay on. Yes. Thank you for attending today's presentation. You may now disconnect.

Nick could you just read us the participants? Yes. Give me 1 second switch over that screen.

Nick we have a wager

One moment. Let me get to that.

Just getting Leslie wrong verify.

Okay, go ahead man and ladies. You wanted the all who called in. Yeah, it's just read off who called in please. All right, I'll just go down in the order that they're showing here. Okay, Doug Brown James Smith John Paul, Tony Jones.

Andrew Lee

Mark Murphy

ricotta

I'm half as Brad Peters Tiffany Cruz Rod Smith John David play El de la guitarra Nelson.

Matt Smith

Mike zinser Terry Vaughan Michael Young

Jose labosky

7:00 then Jim noise and kerrygold blue. Okay. Thanks Zach. All right folks. Thanks for the good conference. Will talk to you soon. Bye.