Q4 2019 Earnings Call
In addition in December the company entered into a purchase and sale agreement with Blue Harbor group and repurchased 27.3 million shares of common stock at a price of $12.29 for a total cost of $335 million.
As part of this transaction director Peter call and stepped down as a director effective with the completion of the transaction.
We would like to thank Peter for his hard work and advice during his tenure with us and would also like to mention the CEO of Blue Harbor Cliff Robbins was also involved in many times whose input and advice was always appreciated. We wished the two of them and blue Harbour the best in the future investment activities.
are the Redux as a result of a reduction in funding caused our net interest margin improved for the quarter by 8 basis points from 2.53% 2.61 with a margin has improved 16 basis points from the second quarter, which is primarily due to reduction in interest expense on that interest Revenue increased 2.8 million for the quarter or 1.7% and non-interest revenue increased 5.7 million to 2 a gain an equipment Finance business cash management and deposit fees and interest rate swaps are reported in the.
overall
Tax income of 80.9 million is an 11% increase from the third quarter of 2019.
On another note our pre tax provision for loan losses income for the quarter was 82.4 Million which reflects the Seventeen percent increase from the third quarter off overall. It was a good finish to the year where we executed on the things that we had to do with respect to operating expenses investment in Technologies such as Salesforce and Encino home and improvement in our digital and treasury cash management products.
Yesterday and two separate meetings. I met with our new business development team where where we have hired twenty nine business development office has the focus on driving low cost deposits into the bank off during the quarter of deposits grew $188 million of which $39 million was non interest earned this team spent the day with other leaders from the from the Retail Finance advisory advisory and lending to coordinate our plans for 2020, but more importantly to execute on those plans. It was good energy in the room and the one topic I'd like to highlight was the discussion that we had in detail over our partnership with o d x a small business loan origination context where we are partnering with to originate small business loan to help generate business deposits.
to date we
Have originated a small number of loans during the testing phase but have reduced the approval time to originate and book the loan from 2 hours to 40 minutes. So in theory using an iPad walking into our Branch, you can get a small business loan on the books ready to be drawn on in 40 minutes. This this tool will help our retail team to focus on a small business segment and provide a key product that the business owners can use to meet their cash management needs. I also had yesterday with our financial Advisory Group.
Which had a very good year in 2019 and continues to work with our retail teams under the leadership of Rich call who recently assume responsibility for this group in 2019 revenues increased from 7.4 million in nineteen. I mean in eighteen to 8.3 million this year with our commercial lending is doing a good job providing products such as interest rate swaps and cash Management Services are non interests Revenue increase to 20.5 million for the quarter ended December .
The competition put deposits continues to be fierce in our markets, but we continue to evolve and improve our products and people to meet this challenge at times. We are impatient with the results. But 2020 is a new decade and we are optimistic that we can drive deposits into the bank to fund our growth in business Lending.
During the quarter are seeing my loans increased two hundred seventy billion or 10% to 3 billion dollars and our c r e loans increased $59 million or 1.2% wage CRV portfolio was impacted by a large payoff in the quarter of approximately fifty million. And this was a participation that totaled a hundred and twenty million total outstanding the loan activity continues to follow up plan of allocating proceeds from the residential portfolio and the multifamily portfolio into higher-yielding assets in the cre and Commercial Business origination, and this will reduce the pressure on our cost of funding with respect to deposits and borrowing from the federal Home Loan Bank at the Quality remain stable for the quarter restore an increase in the 30-day bucket in the multi-family loans to 45.6 million.
All but one loan.
233000 has made payments reducing its delinquency status of the state. There was one lone for $37 million that the borrower is looking to sell the property that we that has been a habitual 8 pea and we are monitoring this situation but don't expect any significant loss are reserved the total loans remain flat at 1.05% which compares favorably to age peers. When you take new account the 13 and 1/2 billion of our portfolio was 62% is in residential multi-family and Consumer loans, which is historically have a lower credit loss history and other types of lending during the quarter. We had charge of some 1.4 million versus Chargers of one and half million in the third quarter and our provision for the quarter was one point five million versus a provisional credit of two and half million in the third quarter.
This is the last quarter of fast be five or the calculation of the allowance for loan losses on the generally accepted accounting principles as we move into the implementation of Cecil effective January 1 month. We are, you know, we are confident and and we are far along in our transition to this new accounting principle, and we don't expect a material adjustment at this time off while Gold Coast acquisition. We are waiting for regulatory approval and expected to come any day. We spend a day last week with our with their retail business teams preparing the teams for client and customer transition. The acquisition we're looking forward to closing is a shortly and it will enhance our markets in Nassau and Suffolk County.
overall
The last half of 2019 was a very busy and productive time here at investors bank. We have made significant progress in improving our products. We have made progress in expense control.
And and continuing our investment in technology and our transition of our assets next to a more profitable growth at the margin we feel we're well positioned to have a great 2012. And now I'd like to turn the call over to Sean Burke or CFO . Thank you. Kevin net interest margin was 2.61% an increase of 8 basis points from the prior quarter on both of reported and Decor basis interest-bearing deposit cost decreased 18 basis points from the prior quarter, which drove the net interest margin Improvement.
Non-interest income totaled twenty point five million for the quarter an increase of 5.7 million from the prior quarter. Our customers swap program continues to exceed expectations with it was a bright spot this year generating approximately 7.5 million in fees.
9
Interest expenses total 106.8 million for the quarter a decrease of 1.9 million from the prior quarter.
Encore basis expenses were up slightly from the third quarter due to an overdraft loss and expenses related to our customers swap program. Our tax rate was elevated in the quarter to the edge of 7.8 million due to a tax law clarification made by the state of New Jersey on how to treat Investment Company and read income income on a combined basis off while the change will serve to lower our tax rate going forward. It caused the value of our deferred tax asset to decline in the fourth quarter.
Finally, I'd like to share some high-level guidance for 20 20 20 inclusive of our pending acquisition of Gold Coast Bank.
We are targeting low single-digit loan growth. But expect the continued remix of our portfolio out of single-family residential and multi-family into higher-yielding commercial industrial loans.
deposit
Start targeted to grow by low to mid-single digits with emphasis on on and low interest-bearing checking products.
Net interest margin net interest margin guidance is in the 2.65% area for the full year twenty-twenty. Assuming no rate Cuts or hikes.
Non-interest income is estimated in the sixty million range and expenses in the $435 million range. We expect our effective tax rate to be in the 27.5% area now. I'd like to turn it back over to Kevin for concluding remarks. Thanks Sean last year this time, you know, we had just gone through nine rate hikes from the fed them. Although we are a little bit troubled by the recent rally in the 10-year bond and the inversion of the yield curve. We are in a much better spot today than a year ago. We are discipline in our deposit pricing with discipline in our loan pricing and we all focus on improving our fee income and business lending to diversify our revenue streams.
We are.
Working hard to drive profitable business into the bank at the margin. We are focused on improving our return on Equity that Blue Harbor transaction will certainly help us in that regard and we look forward to 2020s the activities among our retail lending and advisory groups are strong. They live in our core values, and we're getting, you know, great cooperation and teamwork, and this will pay dividends in the year to come. We have good momentum going into 2020 and want to thank all our teams for all their hard work and dedication to the success of the bank. We thank you or shareholders for your support and now I'd like to open the call for questions. Thank you very much.
We will now begin the question-and-answer session to ask a question. You may press * then 1 on your touchtone phone. If you're using a speaker phone, please pick up your handset before pressing keys to withdraw your question, please press * then two at this time. We will pause momentarily to assemble our roster.
Our first question will come from Mark Fitzgibbon with Sandler O'Neill & partners.
Please go ahead.
Good afternoon. First questions related to Capital. I wondered if you could share with us what your target Capital ratio is now that it's it's sort of getting down closer to a more leverage position and also wage whether it's likely that we'll see some additional buyback activity in 20 point.
We target a tangible, intangible asset ratio in the 8 and 1/2 to 9% area Mark and we aren't anticipating or budgeting any share repurchases in Iraq this year as the repurchase of Blue Harbor really accelerated our plans for 2020 on the repurchase front Okay, and then you guys obviously had good growth this quarter. Could you could you perhaps size for us the commercial loan pipeline today and what the average rate looks like?
Good morning. It's the pipeline for C. And I specifically is about $700 million and on the CRV front. It's about six hundred million.
And what's the rates Dahmer those?
On the $700 million we have a whack of about 470 and on the cre. It's about three hundred ninety.
Okay, and then lastly I wondered if you could sort of share with us any updated thoughts on you know, the m&a environment and I'm curious you seeing you know more books or or less books these days more active out there on the horizon.
Yeah, I mean there's certainly a pickup in activity Mark. We are seeing a number of books. Of course, you know, we in an effort to ensure that we are protecting table book and not introducing too much solution into our stock price and we are, you know, very careful about who we look at and what transactions we get involved it, you know as a, you know, we trade at a level that's below 120 of tangible book. So really doesn't give us a strong currency to use in in this environment, but, you know, certainly we're always looking. Thank you.
Our next question comes from Tom Gilbert with KBW, please go ahead.
Hi, this is Chris O'Connell calling in for calling.
I just wanted to circle circle back real quick on Mark's question regarding the buyback activity understand, you know, you guys obviously that's a big chunk here with the Blue Harbor transaction in the fourth quarter, but with t see, you know above your Target today and and with you know, the outlook for you know, low single-digit loan growth and and you know admittedly, you know, you guys mentioned, you know, the not a strong currency is some gears. I guess. What's the thought process on not, you know planning to utilize it at all during the next year?
You know, I don't you know, I'm just going back to you know, some of the things showing said, I mean, obviously we accelerated the BuyBacks that we had planned for the year with the purchase of Blue Harbor shares, but you know, there were a couple of things obviously, you know, you have a cycle that is in pending in you know, so we want to be a little concerned we want to be, you know judicious about the way we we managed Capital, you know, you know, I'll Never Never Say Never on the BuyBacks obviously will always be there to support the stock in the event that there's significant price decline but no clearly taking it three hundred million dollars of capital out of the balance sheet in one full swoop.
You know, it's got to be a concern for for anyone and you know, as as we managed environment, you know, we just want to make sure that we continue to remain well capitalized and be able to absorb any you know, potential impact from you know, commercial real estate declines or economic declines in the market, but, you know clearly we want to change, you know, continue to provide value to shareholders by efficiently managing capital.
We deal with a lot of constituents, you know Regulators being one of them too. And you know, I think it was it was a big transaction and would digesting it and then moving forward and we will continue to evaluate our options, you know, increasing dividends stock BuyBacks, you know, reasonable Acquisitions and and organic growth, you know again, you know, we'd still want to grow the bank, you know, but we want to do it profitably and and we're trying to do things prudently here using all the levels that are available to us and we believe all four levels are available to us off. We're not going to do anything. That doesn't enhance you hold the value.
Got it. Thank you. And then just just looking into deposit rates. Can you go through what some of your current offering rates are versus maybe boots on the Block and and you know where you have the most room to drive improvement over the course of the year are we know we're offering a short-term CD product at 180. I believe. It's m c d we do have an offering online also at either $175 or $1.80 but the real benefit I think will come from wholesale program we have in the first quarter about a billion dollars that is coming through and we expect to see a pick-up of we're about a consistent basis between 30 to 40 basis points. We also have about 350 million dollars in CD's that are coming due and you know, they
Are we expect to pick up?
Of somewhere between fifty to sixty basis points. So, you know this clearly some room to improve funding costs and you know, and that translate to a better nym for the first quarter of 2020 , you know, I don't think we'll have the pace at which the cost of funds got better off between third and fourth quarter, but clearly we still have some room to continue to improve Nim on funding costs, you know, and then obviously offsetting that is as Kevin mentioned wage rallying into 10-year treasury has really put a damper on loan rates. And so this inversion in the yield curve, you know could offset some of that benefit.
Great. Thank you. And then just finishing up if you could discuss maybe the Dynamics between the multi-family book and wage what is sort of the yields that are coming off the balance sheet through the re mixing and to the extent that you're you know refinancing or you know, or or you know, some multi-family as well what those rates are that you're you know onboarding. Yeah, I mean if I look at the month of December , you know, we funded refunded multifamily be like around the three and half in 2 3 and 1/2 frames. And if I look at what the average yield is on the multi-family book, it's about three hundred eighty. So, you know, there's a dog a little bit of a decline there. Um,
on the commercial real
Facebook, you know, the average yield is about 405 something like that and you know, it's coming on at about three seventy-five cents. So, you know a little bit of pressure there. Also, the bright spot really is seeing I you know, we continue to get good see and I grow you know, what we funded in December came on and this they have something to do with structure in the deals we did but came on in about 4 and 3/4 and you know, the average yield on the portfolio is about 450.
So, you know, so, you know have a little bit of diversion there in terms of higher yields coming on in the cni space versus what the average yield is in the portfolio page.
Great. That's all I thank you.
Our next question comes from Stephen Wong with RBC Capital markets, please go ahead. Hey, good morning guys. So just going back on the loan yields. They held up pretty well this quarter. I'm assuming it's because of the cni that just mentioned in the re mixing and so is it safe to assume that that's not going to continue for the remainder of the year.
No, you know we intend to you know to continue to.
To remix the balance sheet such that, you know, resy and multi-family portfolio, you know should Decline and we'll make up the difference with cre team. And I you know, and the the multi-family book and the resi book are a little bit bigger. So somebody amortization that comes off that portfolio of could script the new production that we put on but for the most part, you know, we're trying to as I think Sean said earlier keep the balance sheet off at 2 plus single-digit growth there.
They should be continued re mixing in the balance sheet. Yep. Got it. And then I noticed you're you're interested in checking cost. Have a good drop this quarter. Could you just get some color in that?
We have a government portfolio here. We have about four and half billion dollars in government deposits that are tied to Fed funds so long, you know the reduction in rates in the fourth quarter of lead to immediate declines in the cost of funds related to commercial to to checking out cuz most of those accounts have been checking products. Got it. Okay, and then just just to reiterate you don't as of right now you don't expect a material impact from see so on day one and that I assume similarly on Monday to as well.
We don't. Okay. Great. Appreciate it. Thank you guys.
Our next question comes from Lori hunsaker with compass point, please. Go ahead. Yeah. Hi. Thanks. Good morning. Just going back to your your immunity deposits 4 and 1/2 million have a customer for the quarter.
About 1 and 1/2 1 and 1/2. Okay, that's helpful. And then also within the non-interest income line. Do you have the actual dollar amount of what was swap income and maybe if you have it versus last quarter as well for the fourth quarter Laurie was 3.8 million * 3.8 3.8 and then the second quarter was 2.4 2.4 year. We had seven point five million and then I'm just going back to see so how should we be thinking about your day to your ongoing loss provisioning?
I think the previous caller, you know, ask the question Laurie and I think Dominic summarized it, you know quite quite nicely, you know, we're really not expecting a you know, a meaningful life on day one or day two. We we have looked at the street consensus for the year and on the provision front that's out there and that appears reasonable to us story about. Okay. I mean the street consensus is pretty wide on loan loss provisioning. I don't I don't know if you could help us think about it a little bit further, you know as we look on a walk-in basis. Obviously your credit is very very pristine, but there's a big Delta between you know, obviously what you did this year more specifically referring to that consensus mean or median estimate, which I believe is around fourteen million or 2020 and I was referencing that that appears reasonable. Okay, that's super hot dog.
and then I just
Also wanted to go back on by back and I love seeing obviously what you did in the fourth quarter, but can you just update Us in terms of how much money is currently sitting at the holding company available for BuyBacks and dividends and then just also what is your current authorization as it stands today?
You know at the holding company level we target to hold cash anywhere from a hundred and fifty to two hundred million Laurie and that's where we are and you know and and you know money up there is you know, obviously for share repurchase but also to fund our dividend as well in terms of share repurchase authorization of 15 million month 15 million is authorized and would be available to for us to purchase. Okay? Okay, and then great last question Kevin is we've seen a lot of a lot of em. Oh, he's in the last year. How do you how do you approach that?
as you think about
You know forward-looking. How do you how do you approach the idea of animal? How do you think about that?
I think you know carefully, you know, when you look at what color there's been a around the other transactions that were done specifically, you know, when reading about the center State South State transaction, you know, that deal was two years in the making and you know, it took you know and understanding of the cultures of the institution and you know the management teams and you know, a lot of things had to fall in the right place.
Fall into the right place in order for that transaction to be successful, you know as we think about it. It's certainly, you know, a compelling theory for us. Also, you know, we think about you know, if anything to enhance shareholder value is a good thing and obviously, you know looking at potential Emily's is a lot easier said than done right? I mean a lot of things that you have to take into consideration, but we you know clearly we have an open mind as to the benefits that those transactions have even versus not going out and buying, you know, another bank and you can look at you can look at the stock price performance of the acquiring institution with when they buy smaller Banks and it's you know, I'm not good these Mo he's their share the stock price reaction has been somewhat better. So, you know, yes, we have an open mind and you know, it's something we would consider dead.
But it's easier said than done.
Yep, you know Laurie and the recent conversation with a with a banker, you know, we looked at different things different strategic options. And you know, of course they're in here all the time, you know speaking with us and you know, you look at it and I'm always you know, the different, you know, execution risk and things of that nature you look at it and acquisition, you know of us, you know, buying a smaller Bank, you know the size and then and then even you know, staying along and and just driving, you know, the performance of the company through organic growth and and and you know managing the cost line and all those good things and basically, you know evaluate then how do we change the volume and the question I have what gets me to $15 a year, you know over the over the next, you know, 24 months 33 36 months and and executing on on those three options. And that's the type of thing that constantly looking at and I think we'll do what we feel is the safest way to get to that goal and have driving shareholder value.
Great. Thank you.
our next Quest
Trent comes from Brody Preston with Stevens and please go ahead. Good morning everyone. How are you? Just wanted to quickly touch base on the expenses. I said if I missed it all but just wanted to see if there were any potential opportunities, you know, excluding the gold Coast's cost savings too. Maybe extract some incremental operating leverage. Take some Costco from here.
We're always evaluating opportunities to take out cost. I think you know the guidance we gave for the year, you know was it's important to note. You know, if you take out the Costco Gold Coast that you know, we're relatively flat and we're projecting relatively flat expense growth, you know for us as a stand-alone organization here over a year and you know, welcome to look for opportunities, whether that's you know, the branch Network the efficiency of our processes that we have internally here. We're also very focused as you can see in in in some of the results that we had on the income line, you know, there are a lot of efforts that were involved for that my name to that and you know, it wasn't just one line item. I know the swap program was a big part of that but you know, we're off in Ewing to look for ways to enhance value both on the feed line in on the expense line.
Okay, great. And then on some of those fee income items, you know particularly on the
In finance portion again there. Do you expect that to be recurring or a portion of that to be recurring just trying to get a sense for for fee income? It's hard to predict that because it is Lumpy, you know when it when it comes in. We did have a small game last year. It was around a million. This year is around two point six million, you know, I would have a hard time budgeting that in quite honestly, um, you know, I do consider it operating earnings, but you know, the timing of it is is hard to predict. It was a lumpy gain when I look at the gains in the portfolio over the last six months. This one was clearly much bigger than the prior six month.
Okay, and then early stage bucket the increase in multi-family you noted that I guess maybe the bar was a bit of a bitch relate pair.
Is there there's there's nothing else I guess within the portfolio that's happened. And I guess is impacting the rest of the portfolio from a change in the regulations.
No, I think we talked about that pretty I didn't want to rehash what we talked about in the third quarter, you know, so if you look at the third quarter, Terry, I think we you know, beat it up pretty good and we haven't seen anything else at this point in time. So I kind of didn't want to repeat, you know, the information. I was provided the third quarter. In fact, I think you know our exposure we were talking about maybe, you know, it was around a billion dollars. It's probably around eight hundred million for the stabilized the apartment.
It was a billion last quarter now at eight hundred million. I think that was an estimate is that time and even with the we continue to monitor it and watch it and then, you know, in fact further analysis, it's slower than we had really disclosed earlier in the year.
Okay. All right. And the last one for me, I guess, you know sort of stepping back a little bit. You know, I think last quarter you talked about getting to a 10% RTC by the year twenty Twenty-One just sort of ordering. Yeah fourth quarter just considering you know, the I guess maybe slightly higher wage Capital that I had originally had originally expected just with no BuyBacks budgeted for 2020. Can you sort of just have to completely higher Capital? Yeah without any BuyBacks or we have the Blue Harbor transaction now, yeah. Yeah. I mean that was an r model and I'm saying it's ripping out sort of the BuyBacks that you know, maybe we had expected for a 2020 Capital be slightly higher. So just sort of thinking about some of the puts and takes in getting to that 10% ROTC. Can you help us sort of think about birth?
What it takes to to get to?
That level well, I I think you know, first of all when you when you put the Blue Harbor transaction in, you know, we can show r o e getting you know closer to 8.7% 8.6 8.7% but I think what would be the catalyst is the continued re mixing of the loan portfolio off and bringing in more high-yielding see an island any help from the FED. I mean we sat with the treasurer outrage or the other day who talked about that this starting to be some noise about you know, perhaps another fed cut in the middle of the Year about 50% probability so long, you know continuing to manage the portfolio in a way that as used Kevin's term to do more profitable business, you know, not growth to the sake of gross.
We think will help.
Get us to that 10% level in the latter part of 2020 twenty-three and then then if I could just real quick the the margin guidance, is that on a headline basis that Corps headlines reported basis? Okay. Thank you very much everyone. I appreciate it. Thank you.
Our next question comes from Jared Shaw with Wells Fargo Securities, please go ahead. Good morning. This is filling in for Jared off a guy's just want to ask the the income question a different way. I guess if you look at fourth quarter and you annualize that and then dropping that down to your sixty million full year guidance, I guess what's the expectation of the line items that you're expecting to see a reduction in in 2020?
Number one the the item on the equipment Finance portfolio that sold two point six million. Now, I'm not necessarily budging that in when we provided the guidance office is we're not expecting that also, you know, we had some gains on loan sales, you know, that could be repeated next year but you know being cautious about, you know, projecting that to happen. So, you know, it was really the combination of those couple of items there.
It kind of that though, you know the account of that we are seeing some you know, some strong change in in in the focus of our mortgage company where the mix of Fannie Mae versus what we take it to put polio. We've been doing a better job in a second half of the year and hopefully that will continue in 2025. I'll give it takes on both sides here as we move forward but we're being conservative or not, you know counting are are eggs before they hatch the last the last point I would make an in terms of the fee income, you know is we do have a couple of items that are in fee income now that are a little bit more difficult to predict quarter-to-quarter. So I have more comfort in the in the back that number that we provided for a full year of $60 million and we could see some variation from quarter-to-quarter there and you're seeing some of that in the fourth quarter. So, you know we are dead.
self admitting, you know to the fact
That we we are not going to have a twenty million dollar fee income run rate, you know every quarter going into 2020.
Okay understood, but the momentum you're you've achieved in the back end of the year for customer swaps that's expected to continue and grow.
Yes, but you know swaps also are a little lumpier, you know in nature. And so we do expect overall income to grow from that program year-over-year. But, you know, even this year we saw some some lumpiness to when it comes in, you know, quarter-to-quarter.
Okay, that's helpful. And it's certainly a focus of our business lending teams becoming very proficient in in cross selling different products both on the cash managing my side. It's an emphasis of the company to drive non-interest income into the bank.
That's awful and just looking at again at that $37 credit that crept into the 3259 date bucket. How long has that borrower been trying to sell the property?
I'm not sure but it's certainly come up probably in the last six weeks.
Drive quota deposits into the into the bank the real goal is to you know, be more relationship focused and multi-family is transactional. It's served us well wage board folio. It is served as very well in our church transition, you know, when we started here, you know, we didn't have a commercial real estate group, you know back in 2004/2005 and that multi-family group and and and the team that has endorphins and his team have done a great job in in our transition. You can't keep doing the things that you did to get to where you are today. And and in the future you have to continue to evolve and and and diversify the revenue streams and and become less liability sensitive.
Prediction, uh, Kansas City by six points go Andy Reid. All right, everyone. Have a good weekend. Enjoy the Super Bowl.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Believe the process of being sold and as a pretty substantial valuation with the to our loan amount.
Okay, and then just lastly for me looking at the 10% return on tangible guide relative to the balance sheet re mixing is the implication that the bath and she re mixing should be largely complete by the end of 21 or is that a longer-term? It's a little bit Yeah, the balance sheet. I'm seeing is longer-term. We have eight billion dollars of multifamily assets on the balance sheet and 3 billion of c and I
Thanks guys name is quarter. Thank you.
This concludes our question-and-answer session. I would like to turn the conference back over to Kevin Cummings for any closing remarks. Thank you as we wrap up 2019. Um, I am very very satisfied, you know with the last two quarters have good momentum going into 2020. We expect 2022 be a good year. We have a company with strong capital a strong culture and an overall, you know, great culture of observing, you know, our customers and more importantly with all the discussion on you know with the Business Roundtable and steak house, you know, we do an excellent job in our communities where out there, you know being leaders who served and and really making a difference in the communities that we serve and creating a great comeback to hear our employees come to work every day with a with a passion for what they do and I want to thank them for their efforts and I thank all of you on this call for your time today one thing. I'd like to tell everyone to enjoy the Super Bowl.
So it's a longer-term proposition. So as as that further continues the month return on equity.
and
and give you my