Q1 2020 Earnings Call

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Thursday good morning, everyone and welcome to the bridge Bancorp first quarter 2020 earnings call all participants will be in a listen-only mode. Should you need assistance placing a conference specialist by pressing the star key followed by zero?

After today's presentation, there will be an opportunity to ask questions and please note today's event is also being recorded this time. I'd like to turn the conference call over to Kevin O'Connor, sir, please go ahead ma'am. Thank you. Good morning. And thank you for joining us this morning. I hope all are healthy and safe and I'm sure getting accustomed to Lifeline phones web exes and Zumiez. I'm Jonathan this callback John McCaffrey the discussion our quarterly performance as well as covid-19 current issues on initiatives of both the short and long-term. Well, of course, welcome to questions at the end.

before I jump into the

Also, I'd like to provide some context and background highlighting how our culture drove the priorities and actions of B&B to the past six weeks. Although six weeks certainly feels much more like six months.

I certainly can't begin without acknowledgement Healthcare professionals and First Responders who are saving lives while putting themselves In Harm's Way, unlike millions of Americans. They're not able to work from home or maintain social distance. They will have the entirety of the healthcare support network must be recognized and employed it to their bravery dedication heroism.

New York City and surrounding metropolitan area which includes our principal Market of long island has been particularly hard hit by covid-19 with over 200,000 reported cases and not too many deaths this provides the backdrop for being being Journey over this time. Our employees have distinguished themselves by displaying an incredible commitment to our clients and to all the local business office when you are Health if they struggle to navigate this unprecedented economic and Public Health crisis, we've highlighted on slide for many of the initiatives and efforts B&B has made and I won't go on by law the health and well-being of our employees is the core of every decision we made and in no time that it's been more critical in short order. We needed to mobilize and protect our employees while continuing to support our clients.

In a matter of weeks or teams moved from a centralized work environment to working remotely while juggling Family Care the global pandemic anxious clients who only there are helps more than ever month while he's not experienced anything like this in our lifetime. I'm incredibly proud of how smoothly the adjustments were made. There were no gaps. No mrs. No oversights wage. In fact employees came together an incredible way working twenty-four-seven to make sure our customers and our neighbors could receive the funding. They desperately needed in order to maintain their businesses and keep their own employees working. I'll cover that more in more detail with we have more we have also provided we leased to our customers in the way of fee waivers long moratoriums. And in many cases the shoulder to lean on them back to the central industry for many and many of our communities. Our offices are one of the few lights on and we understand we provided a sense of normalcy for at least several times.

As you can see, we recognize real support of the larger community of accelerated increased our commitment to supporting local Grassroots efforts helping to provide food shelter and support for health care services. In fact, it's our intention to utilize the force of the PPP fees to further these efforts.

I'd also like to share some of the high-level metrics for the first quarter that income for the quarter was 9.3 million dollars with an EPS of $0.47 with net income growing to $36 a million an increase of two point three million versus the first quarter of last year. There was no change to non-interest income which came in flat flat to the prior-year of 5.2. The quote is knitting Des Moines, June 26th, two systems consistent with a prior quarter.

declining

Income is largely due to the increase in loan loss reserves and a decrease in swap. These the reserve increase from $600,000 in the prior quarter to five million in Cold q1, John will cover in Greater detail as we decided to adopt Cecil.

We also believe that this covers the impact of covid-19 at this point, although the continuing closure or principal markets and the uncertainty regarding reopening require an ongoing assessment of this item is always been a disciplined lender and believe our portfolio metrics related to ltvs Debt Service and most importantly borrow character will be a differentiated going forward. We had a strong growth. In fact, it's reaching one 5.1 billion at the end of the quarter and eight being 8% increase over the end of the year the business also some material relevant loans $371 or 11% higher than q1 2019. Non-public not broken deposits grew as well up $141 by the end of the quarter a 5% increase again over here.

John will now take us through the deck discussing and some of the subsequent activity.

Thank you, Kevin Johnson. Just an overview of the first quarter somebody which Kevin touched on GPS is 47 cents. That's versus $0.71 for the prior quarter and 66 cents were last year first quarter and Kevin discuss some of the reasons for their Sailors on the net name held steady from 4:20 a.m. And actually was a little bit down from q1 2019 2019 as well. I will notice that are Marching In was 329. So it seems like we have some momentum coming out of the first quarter on a marching in to which will be also impacted by PPP. So I believe the quote x-rays will become something of a staple and press releases to divorce.

The provision which was which was up significantly due to our estimation of economic impact from the covid-19 crisis was also affected by the first quarter adoption of money. If you get it. Then we offer to steal Cecil because we didn't have an option to delay the impact of that but we didn't see any real outside for for going forward with not having Cecil. We took our one point six million dollar day Wednesday to adjust me to wear a c l and the 5 million dollar provision of which four million dollars related to the covid-19 crisis that had an impact of fifteen cents on the month.

The balance sheet highlights as we entered into the end of March we did see obviously this this crisis was beginning to ramp up and we decide to bolster liquidity from the U decided to both the liquid and later be in certain be coming around we went out and actually because of some anomalies in the in the industry markets. We were able to borrow a hundred million dollars at -30 basis points for first the first three months following we left lower yielding Investments continue to decline as we as we managed the quiddity and our requirements for posting collateral for municipal the profits.

first quarter

Significantly after we had a very serious heavy fourth-quarter IBT deposit that you are non-brokered non-public deposits were up 10% in an annualized basis wage is four sentences like you see deposits is holding steady at 46% during the quarter. We repurchased 180000 shares that across the four point six million dollars at the end of a quarter. We again at an abundance of caution to preserve Capital we decided to spend that on March 25th.

income statement highlights

So interesting for the quarter was up a million dollars quarter-over-quarter. And again, we mentioned the name stay at 3.26 and you know PTP is going to have a significant impact on those reports charging and Q2 and we'll assess that as we go through the second quarter past due numbers are quarter-over-quarter at the end of q1. We had Thirty million dollars and pasqualone's that's not to say that as of today four million of those thirteen million have been brought current an additional 2 million dollars million to one residential loan is slated to close and we taking out of that long sometime in the next week. So every charges were up quarter-over-quarter and year-over-year and the income line and then title fee's and swapping time were up here over a year off the drop and swap. He's from 4 to 1. We're certainly a function of a cube or commercial real estate active and yet we had which was quite significant.

Expenses down quarter-over-quarter, and we believe we have been concentrating a lot on cost controls again. I would say that this crisis we've been going through when the reaction to Iraq. They impact our interest expense as we try to manage through more laptops. We have to buy and and other other expenses were occurring in response to this Thursday coming down a little more on the allowance in the first quarter. It's kind of distraught will take us through where we ended last year the one point six million dollars to adoption day one that we spoke about and then during the quarter net charge-offs were just two hundred thousand dollars. We feel the first quarter impact. The first quarter generalized provision would have that million dollars and be increased by four million dollars based upon the response to the to the covid-19 prices.

The the Assumption in the in the model for a season model is that we're going to have recoveries in 2021. I don't know whether that's a u shape or a V shape or a flat V. But that's the correct assumption. We're making an obviously will continue to assess that as we move forward. We're not saying that this is the one in done. But again at the at the time when we were doing our Seafood calculations off the first time ever we thought this was the most prudent and predictable, um work at that we had the time so, you know, we do feel we're adequately preserved. Um, additionally, I guess taken from the most regard additional Capital raised and we expect you would get about 30 million dollars in those fees at some point, but we would report on that as those speeds coming as we had received any of them yet.

Next slide were showing the industry identified as being particularly susceptible to damage in our area and probably will have lingering effects going for life. You certainly would have enhanced monitoring of all these

The customers and we continue to look for additional areas of concern as the current shipped out on goals and and additional businesses come to us and ask for some kind of relief or we just see some regions supposed to look at the whole areas of our loan portfolio any signs of weakness and certainly in the press and just you know, generally what we see being reported.

Continue to work with our bar with the last resistance for each one of those cars be assisted Financial positions and crafts customer strategies to help them get through this crisis to make sure that we are partnering with them on what the what the workout plans are today. We've granted 275 one more taureans which total 371 million dollars and and balances which is 9.9% of our total loan balances and exposure so you can see here the breakdown by the broad categories of where we been asked and have granted some of these more torque and we will continue to report on these if we go forward generally, these were all three months moratoriums or four appearances and their various whether it's principal interest or principal and interest off depending upon the individual situation as discussed.

Ramping up and before the PCP program became something that was existing. We didn't fall 479 loans of kind of an emergency backup beeper land to some of our customers who need it immediately quiddity. These are small loans. We would carry customers through a period of time where they needed to have some kind of support So Seventeen dollars in loans, totaling 4.2 million dollars with an average size of $53,000.

We just been to this program as soon as the payroll Protection Program became existing and speaking of payment Protection Program. I'll hand it back to Kevin to discuss our efforts and that and to wrap up the call and ask questions. Thank you John. I think I just the last slice that I think tells it all for us from the standpoint of the paycheck to paycheck protection program program. This is obviously something that we took very personally we recognized this was certainly a way for us to help our communities and our customers or employees embraced it and and you know full of our employees are probably engaged in this at some point in time over the last again, seems like three months but was really three weeks we were able to do almost seven hundred million dollars and round one and that's important lie and I think it's it's a testing again to our people that's don't a million dollars was probably funded within two or three days of getting approved. We again jumped back in we've been able to tell

Vantage quite honestly of other people in our markets. It may have not been as successful and were able to do another two hundred and two hundred million plus in round two. We're still continuing wage. I think the bulk of that is done for us. I think it's important to note that how much of these loans are quite honestly very small off. But yeah, that's we see here. The the average loan was a little less than 250,000 off. The median is is less than a hundred there across all Industries and what has been nice for us that you know from a standpoint. It's honestly provide an opportunity for employees feel like they're making a contribution back to the communities in which they live and serve and it's also provided us a great opportunity. And I know we're not alone as a community bank that we stood out in the course of the first page out through the month of April we both close to 2000 new accounts. Some of those are new accounts for existing customers if they want to sort of segregate this money, but is dead.

we can get this between 12 and 1500 that are

New account from customers that either bank with us a banking with us as part of being PPP program or from the publicity we've got for the success of that have come over so long, you know, I think that this has been a great opportunity for our Constitution and our industry to demonstrate that we can rise up when necessary I think the criticism of the truck out there, but I think in the it'll look in hindsight if they'd probably done a reasonable job dealing with a incredible undertaking so we were happy to participate I think our employees while tired, um are grateful to have been part of a solution instead of being part of a problem and you know, obviously I think John is highlighted those fees and when we ultimately get the first check will figure out what we'll do with it. We had not yet received any money but we recognize that this is something that along with you know, other Revenue that we make will help us. Yep.

Continue to navigate these difficult times. So with that probably will turn it over to questions cuz I'm sure there were some people chopping into place they ask us what's going on.

Ladies and gentlemen with that will begin today's question-and-answer session to ask a question. You may press star and then one to withdraw yourself from the question to you. You may press star into wage. If you are using a speakerphone we do ask you, please pick up the handset before pressing the numbers to ensure the best sound quality. Once again, that is star and then one and our first question today comes from Alex Portal from Piper Sandler, please go ahead with your question.

Hey, good morning, guys.

It just for a minute. I want to stay on this p p p which is obviously pretty large relative to the size of your balance sheet cetera. Can you just talk a little bit, you know and you kind of alluded touch on a little bit the end Kevin but you suck the percentage that was existing customers, you know versus some new opportunities and you know, how you kind of frame that you know, the opportunity that could potentially could come from potentially helping out some customers where they weren't, you know weren't getting any love from from their existing banking institution. I think in the first round it was probably over 15% were not existing customers and I'll maybe understand that a little bit of world trying to gather the information in the second round. I think it's closer to thirty five or 40% wear non-customers, you know, as I said we bought and you know thousand plus new accounts and as I understand we've already done remotely 300 installations of Treasury management products for these newer customers, so

You know always very sensitive to you know, you know, you know value created in these difficult times, but I think people are recognizing the value of knowing a banker know I think you know, we we're at The Sweet Spot of size. We were large enough to have the resources to throw it out and and throw in that case at this program now without sort of belaboring the point across the first round of is there was no ability to use technology to any great degree and that's what the larger banks at a big disadvantage because when you're processing hundreds of thousands of applications, you have to adopt technology if you're a smaller bag don't have the you don't have the resources to throw out of we kind of called it. We used to brute force method. We had, you know, ten people with sign-ons working, you know, twenty-four-seven and get this dog which and and we've gotten some nice publicity. I will say that it was a we got a television interview that followed on a customer who was with a larger bank and the pig

Yes in the first round. We were able to reach out to him afterwards and he became a customer in around 2 for us. So I think that this and I know I'm not alone in my with my College's Community Bank view this post and this is a

Point time when you need a bank or not a bank

Yeah, it's great. You know thinking about overall loan balances, you know get heading into the second quarter. Probably going to have to move in Parts here with you know, just the business activity slowed substantially in your Market, if we exclude the PPP loans, how should we think about different buckets of loans going into the second quarter and you know throughout the rest of the year. So there's there's still activity. I'm getting close. I would say that you know, there is still some level of commercial real estate activity happening and we close and runs over the past couple of weeks. You know, I would say, you know, I would hope they had to come out of this initial, you know phase where people can kind of get their bearings and see what's going on and give a pic. Like, I'm not sure that in the near-term the second quarter next. We're going to see the level of activity. We've seen through the past, you know, 2/4 certainly, you know, we're kind of in our models. I think it rent down the overall wage.

In call volume growth to something like 6%

And realized I mean, I think somebody has we have to get back to what is the new normal. I think they're still they just I think there's a shock part right here. And you know, you know you live in the same market place we do and and we recognize that you know, we we went from opening, you know, April 30th to May 15th to who knows when for certain aspects and so, you know, I think that you know, I know there's been a lot of talk about these calls about widening spread and maybe wiping Springs on smaller volumes quite honestly, so, you know, I I think the the getting through an opening understanding what opening is going back to work if what's what that means to I think these are the second half of the years. You really have to see how this tracks.

Yeah, I understood and then just you know on the Cecil piece of the of the of the reserve the provision. Can you give us some color on what assumption you're using? Um for that four million dollar additional Reserve?

So the assumptions are basically were you know a severe downturn in twenty-twenty with recovery in 2021, assuming that whatever the threats doing and pent-up demand will bring us back. You know that that is you know in in the system model that was the economic assumption that we selected and that drove the provision down by the additional four million dollars. We don't necessarily have statistics that link, you know unemployment and those kinds of things to our diesel model cuz if I truthfully in our historical evaluation as we implemented Cecil, there was no correlation in our historical charge box to the unemployment rate. So, you know, it was more of a broad economic assumption about you know, that's directed on you know, kind of not in the low level of severe economic downturn in the near-term it is I think the Cecil projection goes out two years so that we had a severe economic downturn.

And for the next six to nine months in the recovery in 2021.

Did you use forecast for that stuff? Pardon me? Did you use the Moody's forecasts that a lot of other Banks use for that?

Yes, we could be incorporated that into how we have we selected what the scenario that we had was.

Okay, that's okay.

Okay. Thanks for taking my questions.

Our next question comes from Eric's away from Bennigan's scattered, please go ahead with your question. Good morning guys. Hope you're all well their own Banks first. I just wanted to say thanks for all the additional information you provided in the the supplement today. That was very helpful. And then if I can start on the net interest margin with the you know said Faith happening later in the first quarter and Libor continuing to come down here and two q and I know he mentioned in that in the press release and in the comments John, I think you mentioned that you know, the more ended the quarter inch Gap at 3:29. Can you just walk us through your expectations for the the margin and and two Q kind of including the driver's but excluding the impact of PPP. I think you kind of made some walk-ins to it in the comments, but wondering if you could just kind of you know quantify that a little bit more for us sure I can I can tell you the driver's I'm not sure I I know you have the drivers are going to pan out but so dead.

Like last year, you know when when will certainly when in the beginning of the year before the FED even caught we had begun to revisit, you know additional deposit rate drops with some of our customers as we had been in the environment for a while. We felt lower deposit rates a little bit more and then certainly when the said stepped in in March, we would jump back in as a more aggressive way cuts and I think it was you know, I was pretty I don't think we got enough pushed back this time everyone kind of knew what was going on and why it was happening. So that was part of the list we got especially in the month of March and it wasn't even the full month on Thursday. It's you know, what we're hearing and what we're experiencing is that you know, stressing really wiping out on loan pricing, you know, where whereas in the past you would be looking at, you know, six seventy-five spread just swaps or you know, some such thing really was getting tight there into the end of the year now, I think all of our local competitors are kind of holding at you know, mid-to-high freeze on Multi Pham.

And then we've also got extra liquidity went out and bought a little bit of money to basically be prepared. So the noise in the second quarter on the margin, I think, you know, we'll we'll take a lot of explanation. I think I'm John hit on the corkboard. I think we did a nice job lowering deposit rates. We think loan spreads widening. We think the additional draws customers have made on their lines of credit. Um, it's also end up in their checking account. They're just looking for the credit. I mean one of the interesting things is, you know in this environment too and it's not it's not totaled remain to your question is, you know, overdrafts are actually lower than they should you know, I I think there's been the people are holding their cash. They were not paying their bills and so they're not over drawing their account. So this second quarter is going to have so many moving parts that the challenge for any of us back to you know, I think we understand it to explain it in a way that can be modeled will be a challenge.

For you guys, that's all helpful. I understand. I understand the challenges. They're in kind of hitting on one of the comments. You mentioned there Kevin just about the wage increase drawers and see and I kind of those utilization rates curious how much of the seventy nine million increase in violence this quarter. Would you characterize as as organic kind of new business versus just increased line utilization for eight people wanting to hold more cash.

I think it was probably less than between twenty and thirty percent was probably draws online that happened more in the month of April, you know, we have a couple on, you know, I can name two big ones off one was a person for quite honestly, they took it to basically have that liquidity and they took it in and sitting there checking account and then we have one customer who was unique in a visual you company and he went from making high-tech things for the MTA to making ventilators and he drew on his line to actually finance that conversion of his life. So that's a great story and but you know, it's I think obviously as we get into April, there are more people drawing on it. I I think utilization numbers went from 48 to 52% that we can aggregate wage. So

Got it, and then, you know kind of maybe another fault then you mentioned, you know fewer overdraft as you look at 2 and we'll pretend to get a full quarter impact of lower business activity. Do you see kind of additional headwinds to to non-interest income? And and and if so, you know, how are you thinking about expenses and and potentially, you know opportunities to manage expenses with with a lower rep outlooks. I think you will see some probably drop in service and overdraft fees. I think that I can't speak to the timing business. I don't think we've been you know, I don't know what's going on if you need the end, although I think if you would argue that there's a lot of people that made make a decision. They've rented everything you can potentially rent rent to The Hamptons and there are people trying to buy something now and there was an article I guess in in some of the times or something today, but people deciding I may never go back to New York City and what I rented in the Hamptons or rented Upstate I may not want to home so that could drive title business on the expense. Yep.

But I think John alluded to it, obviously we probably have not hired anyone in the last two months, you know, we you know, there was normal attrition. If you will, you know, we have probably you know, one of the things I really love work from home, but I think it's greatly basically maintain everything. I'm not sure do new ideas happen in that home a new projects get started so long. I think it's going to be sort of a, you know pulled in place on expenses if you want.

Got it. Thanks. And one last me one last question for me. And then I'll drop out have you noticed that the pace of kind of forbearance request is that dropped off since the initial Surge and I guess how would you expect that to Trend? Once the second round Choice TVP as exhausted? I think it's been holding steady. I think the ones that came in early and come in early and and not seen that I can kind of potentially happen after the wrong person. I throw the greatest story that we've heard about people who've gotten some of them come with some sad stories around it. So again, that's why I think we you know, what what is yet to happen is what we have to say.

Great. Thank you so much for taking my questions.

Once again, if you would like to ask a question, please press star and one our next question comes from David Bishop from d a Davidson, please go ahead with your question.

Yeah, good morning. Gentlemen, how are you?

Hey guys, quick question in in in terms of the the multifamily market. They were hearing, you know, some of the the rent rules and collections or sort of Under Pressure here, you know, given the the stress on the environment here. I am curious what you're seeing in terms of rent collection efforts this point through the cycle. It's funny. It's obviously I know this came up yesterday because it was some different differentiation on some of the calls, you know, the best that we can get. You know, April April saw the you know, the the mid-eighties and higher and then they'll Long Island's a hundred percent. So, you know, what happens in May is certainly the big question. I think in that speech think more than just the the moratoriums, you know, people have some more Authority even though they probably still getting paid. So one of the things we've done is probably more time. I want your monthly rentals Thursday, we're going to enforce that. We're going to look at that and at the end of three months if you really gotten paid something, you know, and it may be slowing. I still like some of that money now, so that's going to be the dialogue and that gets back to you know, working with customer.

Of character as you know, I know that sometimes that gets lost and mixed up with ltd's and get service but you know relationship banking is just that and so you know, our goal is to make sure I'm doing dialogues and making sure that you know while they're, you know, we should all get a piece of whatever you collect when you collect it in a certain point times will continue to work with you the LTS will provide job opportunity and some incentive to make sure that you keep the buildings and do all that you should do but no I think all of us in this business are worried about what what's made you in on collections off and certainly, you know, it depends where your buildings are what part of the borough's what part of you know get Long Island the rental Community out here is made up a lot of you know professionals and people like that so they said right now it's 100%

Got a good color and then in terms of you know, notice that the strong and positive seasonality in in terms of some of the deposit inflows remaining in the first quarter wage. Usually the first quarter is deaf. You know, we're we're fighting the tide usually if you think about, you know, certainly in a legacy markets, it's went all the the business customer and their liquidity to pay to keep the lights on and the rents gate and it starts to build in the second quarter and you know peaks in the in the middle of the third quarter. So, you know that we fight that time every year we have this conversation with with analysts and investors in enable the time half of deposits are lower than they were the end of the year now some of that may be offset a little bit because they have to pay some of their taxes although corporate tax Thursday May 15th. It was April 15th have been so I take that back but you know cuz there is a seasonality to our deposits and and I think what we've discovered too during the seasonality even yep.

Western markets where you don't think it should be but I think there's

Still is sort of the people, you know, there's a lot of activity business-wise as you get to the end of the year and the colder months. It seems to slow down and we do have some construction businesses to further west. But that has an impact on it. So the only answer yes, they're still seasonality apologize Additionally the overall deposit number we get if we get ramped up some brokerage to an extent and and public funds is up. I think we've added to the relationship things are kind of lag because we talked about this in the year you're in Paul and that in Suffolk County tax receiver's bills went out late. So we're we have more of a dead cert to 12/31 kind of led into the first couple weeks of January and then add the tax receiver's send the money to the taxing authorities, whether it's school districts or fire department Library, you know, that money is stuck around a little more. We have a few more customers as well. So I don't I'm not really sure what the dynamic it there. But you know it is it is another reason like the profits are up a quarter of birth.

Got it. And then Kevin maybe you know, maybe a too early big picture question here. But you know given, you know, given the pandemic and the you know, the state is disruption in terms of you know, the the operating, you know, day-to-day operating strategy to do you step back at all and see many, you know, as as we come out postcode any sense that this could change maybe the way you can get Branch or just operate from a from a foot prospective and you see any sort of you know see change or or any opportunity to to get more efficient coming out of the back end of this. I think you have to think that's what I mean. Obviously it's nice, you know, you know a branch of you know over 40 branches. We've only had the clothes three of them at different times. I think they're all open today. They want obviously volume of activities down, but that's been a an ongoing Trend we continue to try to figure out how to assess that model and and you know, Jesus basically space footprint and sometimes it's hard to control it except birth.

Market cuz everybody wants to drive through and they usually come with bigger buildings, but we'll continue to see what we can shrink down. We continue to look at, you know, creating greater efficiencies there, you know is dead and I you know want to be careful here, you know, I know that over time the branch traffic and and volume of transactions will go down to need to have a spot that Community with maybe a little bit more solidified today based upon what we're seeing. So I'm going to balance those two things. I know that I've seen people leaders of golden Footprints about how you going to lay it out and involved in this because of the spacing of things but so we're going to make them smaller, but we're going to have people sitting further apart. I think that's that's actually physically impossible. But you know, certainly I make the the the model will continue evolved West Branch activity and more sort of remote and that kind of stuff so

then went just one final question John just curious 1-month Libor exposure what percent of portfolio sort of close to

I want to say it's three to four hundred million.

Maybe probably still have to recalibrate that after the fourth quarter. We had a lot of activity there, but it's probably like around a quarter million dollars one more month Libor exposure, and I'm sure it'll get you that answer by the top. The time of the hours top appreciate the color guys. Thank you.

Yeah, once again, if you would like to ask a question, please press star and one to enjoy yourself from the question to you. You may press star into.

And at this time it's showing no additional questions. I'd like to turn the conference call back over to management for any closing remarks. Thank you. Listen. I think it's an overstatement an unprecedented times. And I think you know for all of us are think we understand what the future is going to look like. I think we're kidding ourselves. I think it's I look at our institution and the track record. We've had the discipline underwriting the you know that I mean at least take comfort and as we move forward and understand how this Market reopens and what it means for our customers and our in our neighborhoods and communities we serve I think the opportunity of the PPP program to down that Lifeline to customers and great. Um, I appreciate it. I can't thank him enough. I have no I have no a number of our employees on the phone for the efforts they put in and and the the people that should be congratulated. They really stepped up and you know, creating a process. We became a factory for the last month if you will in in getting things through from it people who age

Basically delivered, you know, three hundred plus laptops in a matter of a week and 1/2. This has been an old hands approach to both serving our customers delivering view our shareholders wage and and basically feeling like they did make a difference in in a crazy world. So I believe that this is the the institution has weathered many storms were a hundred and ten years old. We've lived through a number of financial practices. I think the the team that's in place and how they viewed it and the customers that we've chosen to associate with will hopefully serve as well as we try to figure out how to balance it 2020 looks off. But again, I thank you. This has been our longest call and I apologize for sort of rambling on here a little bit. But again, I thank you. There's any further follow up with John John will be around. I'll be off today. But thank you for your time and your patience with us.

Ladies and gentlemen with that will conclude today's conference call. We do. Thank you for joining today's presentation. You may now disconnect your lines.