Q4 2019 Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the Legions Bancshares incorporated fourth quarter 2019 earnings Conference call.
This time, all participants I know listen only mode. After the speaker presentation, there will be a question and answer session.
Ask a question during the session you'll need to press star one on your telephone please be advised that today's conference is being recorded.
If you acquire any further assistance. Please press star Zero I would now like to hand, the conference your speaker today, Courtney Terrile Executive Vice President and Chief Accounting Officer allegiance Bank. Please go ahead ma'am.
Thank you operator, and thank you to all have joined our call today.
Morning earnings call will be led by Steve writes off yet with the company Rayva to lead President of the company Npls lesions Bank <unk> Executive Vice President and CFO . Upon a again executive Vice President and Chief Risk Officer, and the company and President of allegiance Bank and Shannon.
Second a vice President and General Counsel.
Before we begin I need to remind everyone that some of the remarks made today may constitute forward looking statements as defined in the private Securities Litigation Reform Act 1995 as amended.
We intend all such statements to be covered by the Safe Harbor provisions for forward looking statements contained for me.
Also note that if we give guidance about future results that guidance is only a reflection of management's belief at the time to statement has made.
Management's beliefs relating to predictions are subject to change I mean do not publicly update guidance.
Please see the last page of the text and this morning's earnings release for additional information about the risk factors associated with forward looking statement.
If needed a copy of the earnings releases are available on our website at allegiance things out or Backhauling, Heather Robert Actuate, 1517, 42, and she will email you a copy.
We've also provided an investor presentation on our website, although it is not being used as a guide for todays comments is available for review at this time.
At the conclusion of my remarks, well open the line and allow time for question.
I now turn the call ever to our CEO , Steve Russell.
But Gordon and we welcome all due to our fourth quarter earnings call.
As was previously it now I accept the election by the Board service CEO The company as George Martinez retired from the CEO position as of January for.
We are extremely grateful for Georgia tremendous carton contribution and visionary leadership as he has been instrumental in shaping the company success.
George is also highly regarded to the industry in a respect Brent maybe.
We look forward to continuing to work work with them daily in the Chairmans role as he is an incredible asset and we'll continue to provide ongoing strategic guidance.
A review of our accomplishments during 2019 reflects another successful year for early.
We finished the year with strong operating results, including record diluted earnings per share for the quarter and year that resulted from both our strategy and the continued hard work and dedication of our team.
In early 2019, we acquired the Lowery bank branches sugar land, consisting of approximately $45 million in loans and approximately $16 million into Bob. We also successfully completed the technology conversion and integration of post Doug and its employees leadership of each of these back offices have become a cohesive.
This became particularly apparent as we were recognized as one of Houston is top workplaces for the 10th consecutive year, an award which over 2300 companies were nominated but only 150 made the final cat. We're honored to be one of only 10 companies that have been on the list of Houston is top workplaces 10 consecutive years.
In addition to lead this was recognized as one of 2020 best companies to work for in Texas and Awards program grid as a project to Texas monthly and several other organizations. These awards are impactful to us as we continue to focus our recruiting efforts on strategic hires who we believe are the best in our market.
We had 14, new bankers and internally promoted to others, along with several professionals, including a chief information Officer, Chief Human Resource Officer training and development officer, and bolstered our team the Treasury management profession.
At the same time, although some bankers exited the bank through productivity gains many did not need to be replaced.
We believe our and our people who continue to provide outstanding service to our customers every day. This high energy team sets us apart from our competition as the Premier community Bank in the Houston region.
As an approach allows us to anticipate continued growth and returns for our shareholders by winning business without sacrificing our standards.
We were pleased to end the year with positive trends in asset quality as we experienced solid improvement in our nonperforming classified net charge off and coverage ratios. We view our strong credit culture as an important ingredient for a long term success.
We once again had strong loan originations for both a year and quarter a higher than expected level of paid off loans did however impact net loan growth that said, we reiterate our small commercial market sector and maintain our underwriting standards as previously announced we made the strategic decision to exit the mortgage warehouse business line, which allowed us to.
Cigarette operational resources to other areas.
Due to increasing increased trading volumes of our Soc in 2019, we were included in the S&P small cap 600.
Finally, we successfully completed a $60 million subordinated debt offering which serves to better optimize our capital position without sacrificing our future growth.
These results allowed us to return capital to our shareholders as we repurchased 1.7 million shares for approximately $59 million during the year and have now crossed a milestone as we have announced plans for our first quarterly cash dividends to be paid in 2020.
In the year ahead, we remain focused on growing relationships continuing investments in technology initiatives, such as our new loan origination platform and our infrastructure as we look forward to opening of our new branch office on the inside of downtown Houston.
Next Ray will describe our loan and deposit production results followed by Paul who will cover our financial results. We'll then open the call for questions.
Thanks, Steve.
First I will review our loan production metrics for the fourth quarter.
Total core loans, which excludes mortgage warehouse lines ended the fourth quarter at 3.91 billion, an increase of 57.6 million during the quarter or an annualized growth rate of 5.9%.
This compares to the total core loan growth rate of 4% for the third quarter.
Year to date core loan growth was 247 million or 6.7%.
During the fourth fourth quarter, our staff and lending team once again, but a very strong 299 million of new loans that funded to a level of 189 million by December 31.
This compares to the third quarter with 315 million of new loans were generated which funded to a level of 210 million by the end of the third quarter.
Paid off loans continued to be elevated at 182 million in the fourth quarter compared to 188 million in the third quarter and 175 million in the second.
To give you a picture of the increased level of Paydowns over the prior year paid off loans for the year ago quarter were 109 million.
The paydowns in the fourth quarter 16 million were attributable to the planned reduction in the mortgage warehouse portfolio.
For the year, we're very pleased with our level of new loans, but which totaled 1.2 billion.
The average size of the new organic core loans generated during the fourth quarter was 393000.
With an average funded balance of 246000, which once again reflects our continued focus on building a diverse and granular loan portfolio.
The average size of all funded loans ended the quarter at 337000.
Regarding interest rates on loans based on total loan amount the weighted average interest rate charged on our new fourth quarter core loans was 5.39%.
Which is below the third quarter weighted average rate of 5.5%.
The 166 million of paid all core loans during the quarter had a weighted average rate of 5.50%.
Gary cord loans experience advances of 124 million at a weighted average rate of 5.56% and pay downs of 94 million, which were at a weighted average rate of 5.43%.
All in the overall period end weighted average rate charged on our funded core loans decreased three basis points ending the quarter at 5.42%, which is close to where the year began at 5.47% as of January one 2019.
The mix of new loan production based on fourth quarter funded levels, which represented by the following for commercial categories.
Owner occupied commercial real estate, 22.5%.
Non owner occupied commercial real estate, 13.8%.
Commercial term loans, 17.1%.
And commercial working capital 4.2%.
These four commercial categories represented 57.5% of the new funded production compared to 59.2% for the third quarter and 48% for the second quarter of 2019, indicating our ongoing commercial concentration.
The overall loan mix was little changed on a linked quarter basis.
Slide deck posted on our website provides added color regarding our overall mix of loans.
Asset quality at quarter end remained in a manageable position.
The level of net charge offs experienced during the quarter was 1.3 million for an annualized rate of 13 basis points.
Full year 2019, net charge offs amounted to seven basis points as compared to six basis points for 2018.
We were pleased to report the nonperforming assets, including both nonaccrual loans and Oh, sorry ended the quarter down from the third quarter decreasing from 88 to 74 basis points of total assets.
Nonaccrual loans decreased a net of 6.2 million during the quarter from 34.6 million to 28.4 million, primarily due to the upgrade of a 7.2 million dollar loan.
Payoffs of approximately 2.6 million.
Payments applied the principle of 607000.
Foreclosures of 214000, which are now Ari and charge offs of 1.1 million.
This decrease was partially offset by increases to nonaccrual loans totaling 5.4 million as a result of downgrades from 13 relationships three of which totaled more than half for 3.3 million.
Additional 2.1 million of downgrades was from 10 smaller relationships.
Our already consists of seven properties totaling 8.3 million. The largest is a 5.7 million dollar industrial commercial real estate property, which has a recent appraised value of 6.5 million and is being marketed.
The second largest at 1.2 million as a lot located in the well established upscale River Oaks neighborhood. The third largest is a 576000 home dollar home and a popular gated community.
The remainder our three smaller properties located west of Houston and one in Belmont.
Generally we believe our nonperforming assets are well collateralized.
In terms of our broader watch list are classified loans as a percentage of total loans increased slightly to 2.21% of total loans as of December 31 from 2.18% at September 30 criticized loans decreased slightly to 2.85% at December 31, compared to 2.87% at September .
30.
The specific reserves for the impaired loans ended the quarter at 14.5% from 18.2% at September 30.
On the deposit front, we're pleased by the changes in our deposit mix in the quarter.
Total deposits increased in the fourth quarter by 107, 70.6 million, representing 17.5% annualized growth rate in the quarter.
As a result of a very strong back half of the quarter. Although we do expect a portion of this late quarter growth to be temporary in nature.
For the year total deposits increased 405.6 million or 11.1%.
Non interest bearing deposits increased 24.4 million for an annualized growth rate of 7.9% during the fourth quarter.
And increased 42.9 million for the year for 3.6%.
With that our noninterest bearing deposits to total deposits ratio was 30.8% at December 31, compared to 31.5% at September 30.
We seek to continue our track record keeping this ratio at or above 30%.
The most notable change in our deposit mix was our ability to decrease our wholesale funding position by 62.8 million, which included the prepayment of certain FHLB borrowings and letting brokered deposits roll off the balance sheet.
Obviously, we are pleased with the recent mix change and continue to focus the entirely can steam on our core deposit growth initiatives from both borrowing and non borrowing customers.
With that I'll now turn it over to our CFO Paul.
Thanks Ryan.
Third quarter net income was $14 million or 67 cents per diluted share as compared to third quarter earnings of $12 million or 57 cents per diluted share.
Fourth quarter performance benefited from certain onetime items, including a $443000 small bank assessment credit from the FDIC a $146000.
Gain in FDIC income and $613000 related to the gain on sale Securities. This was partially offset by $572000 in FHLB prepayment penalty.
Netting to additional pretax income of approximately $630000 in the quarter.
You will recall that third quarter performance was impacted by certain onetime items as well, most notably $1.4 million a severance costs, partially offset by $676000 small bank assessment credit from the FDIC netting to additional expense of about $755000 in the quarter.
Adjusting for these onetime items net income would have been $13.4 million or 64 cents per diluted share for the fourth quarter of 2019 versus an adjusted $12.6 million or 59 cents per diluted share in the third quarter.
Fourth quarter net interest income was $44.5 million down from $44.8 million that third quarter, primarily due to changes in market interest rates acquisition accounting accretion as well as changes in the volume and relative mix of the underlying assets and liabilities versus the third quarter, most notably fourth quarter net interest income roughly.
The first full quarter impact of the $60 million sub debt issuance closed in late September .
Within the fourth quarter acquisition accounting accretion increase bone income by $1.7 million introduced CD expense by $118000 for a total positive effect on net interest income of $1.9 million.
A decrease of $185000 compared to third quarter.
This quarter's accretion leaves $5.5 million than landmark and $576000 in the CD Mark.
During full year 2019 acquisition accounting accretion increase net interest income by a total of over $9.6 million.
In 2020 doubt, we expect acquisition accretion to increase net interest income by less than $2.5 million.
Yield on loans in the fourth quarter was 5.65% versus 5.72% for third quarter and 5.81% for the year ago quarter.
Adjusting for the acquisition accretion recorded during the fourth quarter yield on loans would have been 5.47% versus 5.53% in the third quarter and 5.51% in a year ago quarter.
Total yield on interest, earning assets was 5.35% for the fourth quarter, 5.43% for the third quarter and 5.44% for the year ago quarter.
Adjusting for the acquisition accretion total yield on earning assets would have been 5.19% compared to an adjusted total yield on earning assets a 5.26% in the third quarter and 5.18%.
The year ago quarter.
The total cost of interest bearing liabilities was 185 basis points for the fourth quarter compared to 188 basis points to the third quarter and 153 basis points for the year ago quarter.
Overall cost of funds for the fourth quarter was 130 basis points versus 133 basis points in the third quarter and 106 basis point in the year ago quarter.
Excluding acquisition accounting adjustments in the fourth quarter. The total cost of interest bearing liabilities would've been 186 basis point and the overall cost of funds would have been hundred 31 basis point.
We're particularly pleased the improvement in our cost of funds notwithstanding the first full quarter impact of the sub debt offering we closed late in the third quarter.
Going forward, we feel well positioned to show incremental improvement in our cost of funds as we work to reprice our deposits in todays relatively lower interest rate environment.
Tax equivalent net interest margin for the fourth quarter was 4.11% compared to 4.16% in the third quarter.
Adjusting for the acquisition accounting accretion net interest margin would have been 3.94% for the fourth quarter compared to 3.97% for the third quarter.
Non interest income increased to $3.4 million for the fourth quarter from $2.9 million for the third quarter, primarily due to the fourth quarter being bolstered by certain non accrued occurring revenue items, including $613000 of gain on sales securities and $146000 have lumpy FDIC and.
Okay.
Total non interest expense for the fourth quarter was $29.4 million compared to $30 million in the third quarter.
Onetime items to consider during the fourth quarter that affected non interest expense included the $443000 small bank assessing credit from the FDIC offset by 572000 dollar expense related to the early redemption, a $50 million of FHLB borrowings.
Third quarter non existing noninterest expenses were also impacted by onetime items, including $1.4 million, a severance expenses, partially offset by the $676000 small bank assessment credit recognize from the FDIC.
Separately I should note that bonus accrual for the fourth quarter of 2019 with down nearly $900000 relative to the average accrual during the prior quarters in 2019.
The efficiency ratio for the fourth quarter was 62.2% compared to 62.88% posted in the third quarter and 60.3% for the prior year quarter.
The provision for loan losses, $933000 for the fourth quarter and the ending allowance at $29.4 million is 75 basis points to total loans. If you're to include the $5.5 billion than landmark remaining on acquired loans, the ending allowance plus loan Mark to total loans is 89 based.
Points.
Bottom line, our fourth quarter 2019 produced a return on average assets of 1.13% and return on average tangible equity of 11.96%.
For the full year, we produce and our way of 1.1% and a return on average tangible equity of 11, 11.5%.
We remain pleased with our strong capital position, which has allowed us to introduce a quarterly dividend and to continue to be active in repurchasing shares under our share repurchase authorization.
In the fourth quarter, we bought approximately 325000 shares at a weighted average price of 35.4 $4 per share and as Steve noted earlier for the full year 2019, we repurchased almost 1.7 million shares at a weighted average price of 34.7 $9 per share last.
We'd like to highlight that year end tangible book value per share of 22.62 increased 9.5% over the prior year end.
I'll now turn the call back over to Steve.
Well as we conclude I would note that we entered 2020 with good momentum and a clear focus of the priorities of our customers. We are well positioned for a strong 20 point as we believe our competitive advantage will allow us to reached new highs and capitalize on opportunities. We will continue to execute on our strategic plan and achieve the goals is set for ourselves.
Throughout 2020 and beyond.
That I will now turn the call over to the operator to open the lines for questions.
Thank you.
Hi, Andrew to ask a question you'll need to press star one on your telephone to withdraw your question pressed upon.
Please standby will be compiled a candidate roster.
First question comes from Brady Gailey with KBW. Your line is now open.
Yes. Thank you good morning, guys.
Okay, Great Britain.
Well I wanted to start with loan growth as we looked at 2020.
How are we thinking about loan growth it looks like in 2018.
You out outside of a little noises you grew loans until about mid to high single digit level does that feel like.
The rate outlook for 2020 as well.
That's probably safe.
The.
For 19, we probably the elevated pay downs were probably maybe about 150 more.
Over the entire year than what we expected and.
We did see a little bit of relief in the fourth quarter on pay downs, but it was still elevated compared to what we expected, but I think thats fair.
Yes.
The last year was also a.
Integration year, as well and we're kind of got really good start going into 2020. So maybe you could have a habit of a decent year.
All right and then how how should we think about growth in the expense base and 2020 relative to 2018.
I'll take that.
Seasonally in the first quarter, we tend to have a little bit higher growth higher expense level. If you look back the path for five quarters, you'll see our March quarter tend to have little seasonal adjustment that's when we do.
Salary adjustments on an annual basis as well as there is higher payroll taxes.
That hit predominately in the first quarter, but the overall run rate of of our expenses.
We do expect it to have some growth, although we don't think it's going to be too as meaningful because were.
Very focused on getting operating leverage, but we will acknowledge that that that first quarter will increase if you're trying to build a bridge from the fourth quarter two that first quarter I'd acknowledged.
Really that $900000 differential, but other than the other onetime items.
The differential and our bonus accrual going into the back into the fourth quarter. The year was relatively significant in the fourth quarter and gave an expense relief that if were hit now on all cylinders in a normalized quarter, you're not going to see that.
Alright Thats helpful. Then.
Any color on seasonal and impact that will have next quarter fall.
Definitely so.
When you think about our loan loss reserve adds the existing.
Loss reserve on the prior standard plus.
The double counting of that discount on acquired loans, you'll get to about where Cecil it's going to be.
Granted there's some volatility there as it relates to.
We expect some quarterly provision volatility in the future.
As a byproduct of.
The pace of quarterly loan growth changes in unfunded balances and changes in macro economic forecasts and other assumptions.
Which is one of the reasons, we're not doing back puts about Cecil.
But the overall.
Effect is not that significant on us when you adjust really add back that.
What's the existing credit mark on loans to our existing reserve level.
Alright, great. Thanks, guys.
Thank you.
Our next question comes from Matt Olney Stephens. Your line is now open.
Hi, Thanks, Good morning, guys.
And Matt.
Want to start what that chorus call it the adjusted margin.
We saw some good stability in the fourth quarter.
What's the outlook for the margin profile in 2020 from the fourth quarter levels and specifically how much more opportunity do you see to move down deposit cost from here. Thanks.
Certainly.
We're expecting.
Stability, but working hard to create expansion it shifts in this market.
Where were really.
Fighting.
The good flight competitively on both the asset and liability side, it's hard to.
To pencil in.
Anything other than stability, but as we execute.
We do think that areas.
Central to it's as much as Rick for contraction.
If the execution falls off but there is potential when you look at the cost of interest bearing liabilities and I think the.
I'll note that the potential is greater on the funding side.
And getting back to levels that we are at call it five quarters ago.
The the rate at which cost of funds really increased in that first half the year.
Was.
Phenomenal and we're working really hard to ratchet that down without upsetting the proverbial app applecart with existing clients and position ourselves to do better. We are finding that the competitive dynamics are supporting our ability to walk down rates and exercise more discipline.
But at the same time.
We are focused on continuing to be able to fund loan growth, which we hope to get back on track in 2020.
Okay, great. Thank you Paul and then on the credit front I believe in his prepared remarks, you mentioned there was an upgrade ever credit.
Helped drive.
Lower non accruals I think the upgrade you said was over a 7 million dollar credit.
Any more color on on that upgrade and then on the other side charge offs were a little bit elevating the fourth quarter any more color on what drove the higher charge off thanks.
Well, Matt on the on the upgrade the and that was just the case of other pre.
Identified credit that we had been watching closely and performance.
Performance of the credit over a significant period of time warranted the upgrade.
As well as the collateral position on the charge offs the.
It was elevated compared to prior quarters.
But nothing that's we're really in the.
Significant concern factor. It was a majority was three three customers and we continue to work with.
Recovery as far as.
Collateral and liquidation of collateral for those credits.
Okay got it thanks guys.
Thanks.
Thank you. Our next question comes from David Feaster with Raymond James Your line is now open.
Hey, good morning, guys.
But.
So we've historically talked about that kind of wanted a half billion origination level and we're we're trending a little bit.
Below that just given the competitive landscape, but looking forward I guess given hiring initiatives in.
Just again.
During the competition in the play to do you think thats still a reasonable target for 2020.
Hi, David the.
Well I would say we.
I would say we were really targeting about 1.2 to 1.3 on the originations.
And yes, we do feel that's still a good number going forward.
We did have a.
14, producer hires and 19 that will be gaining traction and 20 with also to internal promotions through our.
After development program. So there is capacity there.
That will that will help towards those origination numbers, but that kind of 300 300 million a quarter is still a number that we feel is achievable number.
Okay.
And then I was great to see the core deposit growth could you just talk about what your strategy is to continue driving this is it the treasury management. That's just started hit stride is it the commercial commercial growth.
Opened there just just some more.
Color into your strategy there.
Yes, you hit it there David it's more of the same.
We definitely are feeling really good about our what we called leading indicator of new accounts open and.
Noninterest bearing and then across all count types and then also are we do track our onboarding of new Treasury, whether it's brand new.
Treasury customer, there's never been here before or an existing customer that's never had treasury services and so those those numbers are heading in the right direction and.
That was definitely a function or those that resulted in the growth that we enjoyed 19.
Okay. That's helpful last one from me just any updates on the warehouse and the run off there and are there any expected expense savings from that.
So the.
The exit is going on on track where.
We're down to really just a handful of customers it's been very.
Orderly and at work.
As we had hoped.
I will be some reallocation. It was very small department there'll be some reallocation of some of that staff.
As we.
As we were not going to.
Probably have that executed until we actually fully exit we do still have customers on right now.
Okay.
Thanks, guys.
Thank you as a reminder to ask a question you wanted to press star one on your telephone.
Next question comes from Brad Milsaps with Piper your.
Your line is now open.
Hey, good morning, guys.
No Brad.
Ray Steve I joined a few minutes late so I apologize if you addressed this but rages mentioned 14, new producers and 19, plus two promotions I was going to see if you guys had handy the stats as you sort of grade each class of new lenders, you know 2017, 18, 19 and kind of what there.
Capacity is at this point in terms of what they are able to take on to get into that sort of 30 ish million dollar loan book goal that you typically have.
Yes, that's.
Brad the that population of 16, Im sorry, 17, 18, and 19 is around 30.
30 producers.
And there's probably capacity there of of another we actually if you look at the.
The population that that's not 17 18 and 19.
All of our legacy lenders that's around 41 million is that average so the there's definitely embedded capacity with the 17 18 and 19, probably something like 250 million is probably just from those from those 30.
It will not necessarily happen in 2020, but thats the that would be where we're headed with that where they stand today and once they get to let's say the average of the of the others at 41.
In rates still kind of you're targeting kind of one new producer a month.
Yeah, that's our 19 shaked out I think that.
Will there will be some and 20.
But also feel we'll have some.
Home grown and 20 as well supplement that growth through our ups development program, where we had two this year or 19, we may have.
Four or so in 2020, so I think you'll see something close I'm not sure if it will be.
The fourth the 14 or 16 that was a 19, but.
We're also excited about opening that branch on the study the Houston.
Pretty soon so.
Will help us.
Let's get some geography there.
For 20.
Got it and.
Paul just on the federal Haemobank advance that you prepaid did that happen towards you ended the quarter.
See some pickup and one Q or did that kind of happened towards the beginning to quarter, where most of the benefit from that and the already in the run rate.
I happened about a third of the way through the quarter and.
Yes.
We got to quote two month of benefit from it Okay. What was the rate on that advance.
It was.
50 million.
That was costing on 280.
Okay, great. Thank you guys.
Thanks.
Thank you.
Next question comes from Matt on the with Stephens. Your line is now open.
Yes, thanks for taking a follow up just wanted to circle back on the.
The dividend announcement first ever dividend 10 cents per share.
Loved here just more about.
The decision to Institute a dividend.
Just a general view on current capital level. Thanks.
Yeah, Matt Thanks, a lot the yeah, we're we're just managing capital and it obviously, we've got capital accretion through our earnings and.
Growth expectations balanced out throughout the year now we'll take a this is a kind of modest entry level.
Dividend that we would like to enter into it and hold too, but we also will look at other capital strategies, such as buybacks as appropriate to manage our.
Our capital level so.
Yeah with your creativeness that we've got on on capital today, It's just seems like the right thing to do and it's a good balance for us.
I might add that are just really represent the diversification of our capital management effort.
On a steady dividend.
Isn't that much in the Grand scheme of things, but it does allow us to kind of diversify how we.
Pursue returning capital to shareholders.
We will continue.
Good.
Pursue share repurchases when it makes sense to buy back stock, but this is it's a good step for us.
Okay and Paul do you have in front of you on the share repurchase plan, what the current authorization stands at right now.
The so we are second authorization per million shares we have about 230000 shares.
Remaining on that authorization to that.
And when does that expire.
I don't think it expired for another.
Hi month or something along the denominator.
But.
If we run to the end of it will.
The board approval for.
Additional authorization.
Okay perfect. Thank you guys.
Okay.
Thank you.
I'm showing any further questions at this time I would now like to turn the call back over to Steve that's off for any closing remarks.
No no real remarks, just thanks again for your time and interest in allegiance Bank. We look forward to speak into you again in the future. So thanks, a lot for participating.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.