Q1 2020 Earnings Call
Good morning, everyone and welcome to the National Bank Holdings Corporation Twentytwenty first quarter earnings call. My name is Sheryl will likely be your conference operator for today.
At this time, all participants are really listen only mode. We will conduct be questionnaire dancers fashion following the proper paired with mark.
As a reminder, this conference is being recorded for replay purposes, I would like to remind you got this conference call will contain forward looking statements, including but.
Not limited to statements regarding the company's strategy loans deposits capital. That's interest income noninterest income margins allowances taxes and on the interest expense actual results could differ materially for goes discussed today.
These forward looking statements are subject.
The risks uncertainties and other factors, which are just schools in more detail in the company's most recent filings with Securities Exchange Commission.
These statements speak only because it's good to eat up this call and National Bank Holdings Corporation undertakes no obligation to update all devices.
C.
He is now my pleasure to turn the call over and be introduced National Bank Holdings Corporation's Chairman, President and CEO, Oh Mr. Kim.
Thank you Sheryl good morning, and thank you for 20 National Bank Holdings first quarter 2020 earnings.
I have with me, our Chief Financial Officer oldest Burkins and Rick Newfield, our chief risk management all for sure.
Well the emergence of the code at 19 pandemic, we quickly shifted our priorities to one protect the health of our associates on clients too.
And sure the safety and soundness of our bank and three to prudently support our clients and communities.
We moved quickly to implement remote working arrangements as well as appointment only services in our lobbies, while maintaining drive through services. We also acts.
Banded associate health care provisions for coated related illness.
With respect to safety and soundness of the bank our teams moved quickly to assess and manage the emerging risk.
Further our internal and third party stress testing indicate that the diversity.
And granularity of our loan portfolio supports the ability to maintain strong capital through well a severe economic downturn.
Rick will address stress testing another critical credit related details in just a moment.
I'm also pleased to report that our operational contingency.
Plans were activated and proved to be Holly effective.
It's also important to note that we continue to hold high levels of excess liquidity and the bank maintain tier one common equity of 12.9% at quarter end.
With respect to supporting our clients and.
Entities I'm proud of our teams tireless work with the S.P.A. to approve over $332 million in Paycheck protection program launch supporting close to 1500 of our small and midsize business clients and helping save an estimated 32000 jobs.
In the communities, where we do business on that note I'll turn the call over to Rick Newfield.
Thank you Tim and good morning, everyone I'll cover three areas in my comments first I'll briefly summarize our first quarter credit metrics in performance second I'll discuss the actions we've taken.
To mitigate potential rest emerging in our loan portfolio due to the covert 19 pandemic.
And third I'll provide information our exposure to sectors at a higher risk due to the pandemic.
With respect to our credit metrics trends were positive in the first quarter with reductions in criticized classified and non.
On accrual loans.
Or criticized loan ratio improved from 2.90%.
At December 31, 2019% to 2.35% at March 31, 2020, or classified loan ratio, improving 0.96% to 0.86% and our non accrual.
The improved from 0.49% to 0.47%.
Total nonperforming asset ratio improving from 0.66% to 0.63%.
Net charge offs for the quarter, rolling $352000 or three basis points annualized.
Positive.
Trends and strength of our loan portfolio leaves us well positioned to deal with the challenges presented by the endemic.
Given the impact of the Coven 19 pandemic, Tim myself and our banking teams have intensified our portfolio management diving deep into our loan portfolio with particular focus.
On higher impacted industries and commercial property types.
Consistent with our change in corporate objectives, given the pandemic. Our teams are working intensely with our clients to monitor impacts and ensure the safety and soundness of her back.
In March we implemented additional approval requirements for.
I want to credit draws and we experienced no unusual activity in the quarter.
The company 19 pandemic has reinforced the importance of our discipline is here to our concentration limits answer prudent underwriting standards inclined selectivity.
I'll point out the no industry called out by the street as being.
Probably impacted by over 19 represents more than 5% of our total loans.
With that said I'll cover a number of highly impacted industries in more detail.
Our energy loans, we're now down to $30.6 million or just 0.7% of loans.
Three midstream.
Leaders and one natural gas royalties client, all stable and well capitalized make up 97% of that exposure.
Senior living is only $21.5 million less than 0.5% of our total loans.
Our restaurant exposure is $223.1 billion.
And 5% of loans importantly, 77% or QSR franchise clients and thus able to operate would drive through carry out capabilities during the current restrictions.
Multifamily loans totaled $77.3 million, just 1.5% of loans.
The average loan to value on our exposure is 65% with average 2019 debt service coverage of 1.35 times.
Our hotel exposure is $181.4 million and 4% a total loans.
97% of our exposure as flags with the major brand family such.
Just Marriott and Hilton.
The average loan to value is 56% in the average debt service coverage in 2019 was 1.67 times.
Our hospital and medical exposure is $202 million or 4.5% of total loans 116 million of that.
Exposure is to very well capitalized municipal critical access hospitals, which have strong liquidity as well.
$40 million of our exposure is to doctors and Dennis with an average loan of just $357000.
We have $120.8 million of exposure.
Retailers, which is 2.7% of loans, 52% of this exposure is to retailers classified as essential and who remain open selling groceries gas and staples.
We also have $55.5 million of non owner occupied real it retail commercial real estate.
Our only 1.2% of loans.
The average loan to values, 66% and the average debt service coverage in 2019 was 1.33 times.
Our transportation exposure is $139.7 million and 3% of total loans.
This is granular nature.
Secured by tractors and trailers with an average exposure per client of $1 billion.
Credit exposures to industries.
[noise], such as transportation restaurant hotel, and multifamily or managed by specialty banking teams, including dedicated specialized underwriters.
Finally, it's noteworthy where we have no direct exposure aviation cruise lines malls energy services casinos in gaming convention centers and hedge funds.
We have no dealer floor plan indirect auto car leasing and no consumer credit card exposure.
We remain in frequent contact with our business clients I do believe also that maintaining a diverse granular loan portfolios the strain.
We've conducted twice a year stress test on our commercial loan book.
Those results demonstrate that ended economic scenario more severe than the great recession, we would remain very well capitalize.
Just above 8% tier one leverage.
Non owner occupied commercial real estate is only 14% of our total loan portfolio and only 95% of our company's risk based capital.
We are well diversified across industry sectors with most industry concentrations at 5% or less total loans.
And all concentration levels remain well below our self imposed limits.
I believe our bank isn't a strong position to manage through the challenges presented by the Kogan 19 pandemic.
That concludes includes my comments I'll turn the call over to all this.
Thank you Rick and good morning.
My remarks level.
This quarter's financial results as well as give an update on our Cecil implementation.
The life of the uncertainty caused by the cold in 19 pandemic. Our prior 2020 guidance is no longer applicable, but I will provide limited forward looking guidance as of today.
As we reported yesterday, our first quarters net income was 15.8.
In dollars or 50 cents per diluted share.
This quarter's pre provision net revenue of $26.5 million reflected on an increase of 9.7% annualized on a linked quarter basis, and an increase of 5.7% from the prior years first quarter.
This quarter's financial results.
Are driven by solid net interest income that's about a strong residential mortgage banking results.
The quarterly results also reflect the impact of this Cecil model, which incorporates a recessionary environment into early 2021.
During the quarter, we originated $292.9 million the new laws.
Which resulted in that total loan growth of $90.3 million for 8.2% annualized.
This quarter's loan originations once again were led by commercial loans with 163.6 million dollar senior loan fundings.
Our new loan originations continue to be granular in size, where the average commercial.
Lot of $1 million.
The quarters long originations were well balanced across various asset classes geographies and industry sectors.
We also continue to maintain our disciplined when it comes to new loan rates.
Interest rates decreasing throughout the quarter, our focus remained not just on the loan.
The LIBOR, but the absolute trade levels.
The result, this quarter salvage nations came on at the weighted average rate of 4.2%.
The fully taxable equivalent net interest income totaled $51.6 million, which resulted in our net interest margin widening 10 basis points on a linked quarter basis.
Interest income benefited from $1.2 million and accelerate accelerated landmark accretion income water and an equivalent of a nine basis point benefit to earning asset yields.
The accelerated accretion income combined with a seven basis point decrease in auto loans total cost of funds resulted in a strong.
Net interest income for the first quarter.
On Gulf War basis, we expect a full margin impact from the federal reserve emergency rate cuts to be in the 40 to 45 basis point the range.
Rick provided an overview on credit, but in light of the Cecil adoption I do want to provide more color on the provision expense and the allowance for credit losses.
[music].
We finished the quarter than allowance for credit losses of $51 million, what an increase of 30% from the prior quarter end.
Well the total loans was 1.13% at quarter end, that's compared to 0.8% other that prior yearend.
During the quarter to quarter to $6.2 million.
Provision expense of which approximately $5 million is the result of Cecil day to impact from the deteriorating macroeconomic conditions.
The rest of this quarter's provision expense covers new long growth as well as the quarterly net charge offs I would just $353000.
Our seasonal model uses macroeconomic forecaster.
Ladies and this quarter.
And this quarter it reflects.
Recessionary economic outlook continuing into early 2021.
In addition to the first quarters provision expense. We also recorded a 5.8 million dollar increase to the credit loss allowance related to the Cecil day, one adjustment.
As we.
Discussed in our prior prior earnings calls approximately half of this allowance increase is driven by the acquired loan book.
Our investment Securities portfolio consists of U.S. agency mortgage backed securities and it requires no day, one or day to see sold related adjustments.
As of March 31, 2020, we also.
Hello, $17.4 million dollars in loan marks against the acquired loan portfolio.
Which not only continues to be accretive to the net interest margin, but also provides additional protection from credit loss.
The first quarters non interest income of $23.5 million was $3.3 million higher.
Higher than the fourth quarter 2019.
The linked quarter increase is primarily driven by the gains on sale of our residential mortgage loan originations.
We saw very strong residential mortgage rate lock activity this quarter for the quarter be closed $366.2 million in new loan in new mortgage loans.
Water and 85.2% increase from the same quarter last year.
55.8% of this activity was driven by the refi market.
Regarding expenses, our first quarters non interest expense totaled $48.7 million, an increased $2.6 million from the prior quarter.
The linked quarter increase.
It was entirely driven.
By the higher mortgage banking production compensation expense.
We also received and FDIC small bank as a assessment credit that lower all lowered our FDIC insurance expense by half a million dollars. This was the last quarter for the FDIC credit.
As it relates to capital we finished the quarter by the strong 11.1% tier one leverage capital ratio and 12.5% common equity tier one ratio.
During the quarter of either purchase $19.5 million of our stock.
The quarter progressed have ever we suspended the repurchase activity in order.
In order to focus on supporting our clients in communities through programs such as the Paycheck protection program.
The tangible book value per share during the quarter increased 38 cents to 21 dollar Sun 27 cents.
Our quarterly earnings exceeded the got the combination of the quarterly dividend payout.
Diesel adoption Empaque and this quarter stock buyback impact.
Timber this I will turn it back to you.
Thank you all this is all the shared with you we were operating under a range of assumptions that suggest a protracted level of economic stress running into 2021.
We believe that our prudent approach to credit and capital management leave us well position to address the severe consequences of the code that 19 driven crisis.
Further we've tested our ability to deliver our dividend in a range of stress scenarios and we believe our.
Ready to do so with solid.
Sure alone in my prepared comments on that point and ask you to open up the call for questions.
Thank you if you would like to ask a question. Please press star.
Well the onboard telephone handset.
Our first question comes from Jeff Rulis from D.A. Davidson.
Go ahead, Sir your line is open.
Good morning, Jeff.
Hey, good morning.
Question on a let's see maybe I'll take that the margin first.
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[noise] oldest what was the accretion benefit last quarter.
Last quarter, if you recall, we actually talked at our accretion benefit was lighter than typical port prior quarters. In 2019. So I'd say was there will be didn't have a whole lot of accretion.
Benefit last quarter outside of the normal amortization of the Mark.
Got you all doesn't go ahead and speak to speak speak a little more to the accretion this quarter relative to average quarters.
Yeah, So I mean, the way to look at it as is.
If you look at a.
The acquired loans are yielding.
Approximately 8% to 9% with a long Mako accretion as it typically appetizers and this quarter, we realize 10.4% acquired loan yield and that's really that 14 basis points.
Right that's at 1.4% pickup.
Driven by the this 1.2 million dollar accretion marked at the highlighted this quarter.
Okay. So.
With a nine basis point accretion benefit this quarter.
At a 10 basis point.
Reported a lot of though.
Was pretty stable core margin is that how you put it for the quarter I'd say it was pretty stable core margin as the the LIBOR and prime rate decreases then take place until March and late in March for that matter, so not much of the.
Okay, great cut.
Impact has worked its way through our loan book, yet we did see nice drop in cost of funds as as I pointed out seven basis points, but the full impact of the March rate cuts Volvo will start taking place here in April and second quarter.
Okay and that I think he said.
40 to 45 basis point impact is that what's the timeline for that Jeff I mean generally speaking is it.
I I want I thought that to be in our and out of balance sheet already here in second quarter.
I'll caveat that 40 45.
You know it does depend on.
The PPP loans.
Because those are the in a day lower yielding loans and that that could have put additional pressure on that margin now. It also depends whether what time, they're being four given and the early amortization of what early realization of that.
At the fee income so there was going to be some volatility in the margin for forthcoming quarters because of that.
Okay.
Appreciate the color.
Next question just on maybe for Tim I think.
In some ways interested in your view of.
Indeed, see maybe better.
Quick to address sort of remote operation or.
Branches being consolidated or or operations sort of moved from coded pressures due to kind of the banks.
Pre existing or branch consolidation efforts over the last few years based and if you think about.
Communication customer impact things that you've been dealing with you know there's sort of ramps yet, but just kind of thinking about that the preparation your bank versus peers. If you. If you think your any any better suited in that environment.
It's a very good question Jeff.
Yeah.
Been focused on the move the move of clients from traditional brick and mortar to digital channels for some time now having said that what's remarkable is that we realized a 75% increase in new mobile activation during.
The first quarter of 2020 versus the first quarter of 2019 more specifically we realized in the month of March along year over year mobile sign up an increase of 103% I do think co that 19 and.
Working remotely sheltering in place has been a catalyst for driving even some of our more reluctant clients to in gauge digitally and that does put us in a position at the right time to continue to assess our banking center channel.
And related optimization.
I think equally important we've we've demonstrated a pretty solid track record over the years of constantly focusing on improving our operating efficiency and realizing opportunities to reduce.
<unk> expense and.
2020.
Certainly should not be any different than prior years, if it's anything given the circumstances.
It will be an increased focus.
Gotcha and that was the last question I had kind of bleeding into the expense.
Obviously, you had a pretty good mortgage banking quarter that led to that uptick all this detailed the credit that you received but if we think about maybe tackling two things at once you know how to how do you see mortgage banking revenue playing out this year and then maybe just the.
Touch on the expense run rate from here. Thanks.
Sure you, but just as it relates to residential banking <unk>, it's been remarkable what we've we've witnessed moving into the second quarter, while as you would expect a first mortgage purchase.
He has as certainly dropped off the radar screen, we've actually continued to see refinance activity move move along quite well in fact I would describe it is as strong I think perhaps again with folks staying at home, having a bit more time to focus.
So on their own financials, they're recognizing an opportunity to reduce their their own expense through the refinance process now having said that we're very cautious with respect to refinancing activity Rick can speak to this in detail but.
Our coming on refinance activity and again.
Rick can speak to what we keep on our balance sheet versus what we sell to investors, but nevertheless.
Very strong FICO scores multiple layers of of verification of employment, which we.
I think is increasingly important in this environment and even as we look to our existing but very attractive loan to value.
On on that mortgage business.
And then just more broadly.
We've.
All this working with our head of.
Residential banking and that team they've done a great job of correlating.
Compensation expense to production, we still believe we operated at a time, where should that business really see a precipitous decline, which again, we haven't seen to date.
We'll see expense.
Decline accordingly.
And we believe we've built to model, where we should never expect expect to have losses coming out of that business on an operating basis.
And again as I said before as it relates to any other operating expenses. It's always been a focus it'll continue to be a focus and we do think we have levers to pull here and.
2020.
Rick do you want to add anything any additional color on residential banking.
I mean to maybe just a couple other comments.
[music].
To amplify some of what you said I mean, specifically on the.
Employment verification, we're conducting several but.
One must be conducted within 48 hours of closing just given the increase in the number of folks that are unemployed. Currently we've also have looked at our refinanced with any cash out and we're examining not just loan to value.
But we're looking at the loan to cost what do the homeowner pay.
Okay, and that's just as important as the current valuation so I could go on but we're taking the right steps with what we're currently originating and you did point out in Oh, we have an additional disclosures we have a very very solid existing portfolio of residential loans.
Jeff did you have other.
Questions.
No you guys did a great job I appreciate the color.
Alright, thank you.
Thank you and our next question comes from Gordon Maguire from Stephens. Your line is open.
Hello, Gordon Hello, Hello, Good morning, good morning.
All.
Yes, I just wanted to clarify or follow on to the NIM NIM guidance like you said the 40 to 45 basis points would probably already be in the numbers at this point outside of any PPP impacts.
How much do deposit cost repricing factor into those numbers or is there opportunity.
In the longer run to get some of that back I guess, how should we be thinking about the deposit cost relief.
Yeah, that's I would call that doesn't that impact the to the margin that that I'm guiding to study in it takes an account the actions we've taken a deposit costs.
Say that in deposit costs, though do expect that to continue coming down.
And for US we've talked about time deposit first quarter of this year being the first Oh are being the peak.
On the different scenario or different operating environment being the peak quarter in cost of that book, that's going to can be coming down here in second quarter, but also on transaction deposits now to be back to zero rate environment.
Thank.
If you.
If you look where we were priced out we have priced our deposits last time you are there our rates.
Moving rebar targeted to get back to get back down there.
I would add Gordon.
I would add that the government programs and the stimulus related checks.
Going out the individuals is certainly contributing to a lower cost basis in our our deposit book, we've we've seen that as we've moved here into the second quarter and frankly, it does balances have been higher than we would have expected.
Okay appreciate that maybe.
Maybe moving on something Rick and helping with help me with Rick could you.
Provide a little color on any loan deferrals or modifications that you've implemented so far.
Yes, certainly Gordon that's a terrific question.
Look our relationship banking model has allowed us to work individually with each client versus of programmatic approach.
Our business banking in our commercial banking clients, where obtaining cash flow forecasts, we're working with the owners and guarantors where applicable on their support.
And we're leaning toward 90 day interest only.
Structures, so deferment of principle, the noninterest where appropriate I'll also point out we've never used a black box underwriting for our small business clients. We have dedicated underwriting teams responsible for conducting full credit analysis before we consider any business loan in our bank now in terms of where we are through mid April.
All our pipeline of modifications not all of these are in place totaled $110 million of loans at commercial and specialty banking.
$24 million of loans in business banking.
And we'll let me touch on our residential banking portfolio and again I'll refer to the pipeline what we've received as opposed to.
It is completed because with consumer residential banking clients as well, we take that relationship approach and spend time with the client that's not a specific program through mid April we've got approximately $40 million of requests or about 7% of a residential mortgage loans for what we hold and portfolio.
Leo.
$21 million or approximately also 7% of request for loans that we service, but are not on our books.
Gordon has got a couple of your question.
That does and I'm wondering in the.
Commercial in the specialty how much of that is related to these that right at risk portfolios that you provided updates on.
Yes, Gordon I would say the majority of it is within those portfolios still relatively modest percentage, but for areas like.
Hotels certain restaurant clients not all.
That's where we're seeing more significant penetration of those modification requests.
Got it appreciate that.
I guess, Rick could you could you provide an update you mentioned the.
So model.
Incorporating a a recessionary environment through early 2021 is there anyway, you can quantify what what unemployment figures you guys are looking at.
Yeah. This is all the felt that told us yep Yep.
So.
Like I mentioned in the in my remarks, we use Moody's quarter.
For the scenario modeling and the scenario, we have been contemplated to their scenarios and ended up at a combination of the to the the primary drivers for our model.
On his unemployment rate GDP housing price index.
And the ended up with a model that has.
As a negative GDP quarterly GDP is going into first quarter of 2021.
A double digit unemployment here in second quarter, and then high single digits for rest of the year and into 2021.
[noise].
Okay I'll step back. Thank you guys, Yeah, alright, Thank you Gordon.
Thank you. Our next question comes from me, Andrew Liesch from Piper Sandler you rely these open.
Good morning, Andrew and good morning, I want to just a question on the loan growth you're pretty solid.
In the first quarter was there anything specific driving that draws on operating lines are working hard to capital what was what would make driver. There I know you said you I couldn't be tighten some of the a requirement to do something just curious what was behind that right you have to be clear and again I'll turn this back to Rick but to be clear we had no unusual.
Draws on lines of credit in the quarter, we were prepared port prepared to work.
Frankly, scrutinize any additional or unusual drawl requests and just simply didn't see it happened with our client base as as it relates to the production in the.
After a lot of it was just good solid carryover from marketing activity in development coming out of 19. So no. One usual last minute activity I will say just as we approach the ended the quarter, we did apply additional scrutiny to.
Any new relationships, where we were we were uprooting credit exposure and what came on the books is business that we felt good about had to feel very good about it in fact, Rick out anything you would add.
Yeah, Tim just maybe additional comment on the line drawdowns as it relates.
To the total originations and growth for the quarter for lines that were in place coming into the year in other words those that were on the books as of December 31, 2019 that drawdowns were only $14 million. So it was not significant driver and as I said no unusual line activity was noted in the quarter.
Great that's very helpful.
And then just shifting back over towards mortgage banking it sounds like purchase activities.
Right up from now is just based on what your where your pipeline is.
Because we did they expect maybe an uptick of rifai with Merck capacity to do that.
That here in the in the summer.
Some of them.
Yeah.
Well first of all I'll say that mortgage activity for the first quarter just to give a data point.
It was up on the seasonal quarter basis, 11%. So you know the mortgage business that would be acquired from people for a few years ago.
Built on on.
Backing purchase or on a purchase model. So we by any stretch on not abandoning that and that is that as the fall back to be looking to two always refer to but in terms of what's going to happen here in second quarter I think the beef I as Tim mentioned.
He is surprisingly strong I do think there people even that.
But having financial trouble was.
The short haul shelter at home type of things there are ways that people are finding to.
To refinance to support them.
Okay.
You have been covered all my other questions I'll come back now thanks.
Thank you had died next question comes from Chris Mcgratty from KBW.
Please go ahead your line is open.
Great where everybody.
[music].
So maybe a question how little question most of the granular ones or have an app you got the.
But banks like you have two ppt sees coming through a which is certainly you know well earned a and well deserved revenues in this environment. We're part of using this as an opportunity to.
To provide a little bit more cushion in the reserve given just the high level of uncertainty not anything specific to your books, it's pretty granular, but just conceptually. Thanks look you know we recognize that as an industry. It was going to be pretty much a kitchen sink kind of quarter.
Well, we struggled with is.
Again, if you think about it the Cecil models are built with a lot of scrutiny. Our auditors are KPMG. They earned substantial fee income over the course of the last six months building working with us as we build our seasonal model. We our credit portfolio is what it is we input.
Our credit portfolio information, we've outlined the assumptions, we've made using moody data, which calls for a recessionary period running into 2021, and then we get our outputs and our outputs included again Cecil day, one and.
Cecil date to and you know.
My bias is always going to be for larger allowance for credit losses, but I've got to do it within the confines of of what can be validated by these these models.
Do I think.
We got the capacity to build more provision heck, yes, with tier one leverage of 11.1% and tier one common equity of of 12.9%, we've got more than enough capacity to build greater allowance and and.
I will do so if the model dictates and I would suspect.
Given the recent climb and and unemployment with 22 million Americans out out of work that we're going to see the industry on the whole, making additional allowance adjustments but.
Our date day, one and day to build on the basis of the credit portfolio and economic metrics, we shared and.
To a large degree there was little else, we could do to justify more allowance build at this point.
Thanks, that's great color thanks to.
You bet.
I do want to come back and be clear on.
On.
All this is response to.
Andrew as it relates to residential mortgage banking activity in refinance while there may be folks at home.
As that.
Capital more time to devote to things like refinance.
If if were refinancing them, it's not because they're not working it's a it's because they're working remotely again, we're going through multiple layers of of job verification employment verification income verification and.
Oh.
Our our level of.
Scrutiny on that front is.
Very high and we believe we're being very careful as you would expect us to be as a prudent in bank.
Thanks, or clarify that time.
That's right now.
Thank you I'm sure we have no further.
Did that this time.
Now turning the call back to Mr., leaving for his closing remarks.
Thank you very much I do want to thing.
Thank you for your questions. This morning, very good range of questions I as I said in my opening.
Our priorities of rapidly.
We shifted the first ensuring the health and safety of our associates and clients to we're very focused on the safety and soundness of our bank can prepare to work through any stress scenario that that the country in the industry may face down the road.
Good and finally, a will continue to work to support our clients and the communities, where we do business and we actually believe that this kind of downturn in challenge will represent unique opportunities to grow new relationships with with clients.
Perhaps than ignored by larger institutions in this difficult time and to again support our communities and come out.
With them stronger on the other side. So thank you for your time this morning, and I wish you all good health good day.
This concludes today's conference call if he would like to listen to the telephone replay of this call. It will be available beginning at approximately two hours and will run through the fifth twentytwenty by dialing 8558592, 056 or 404 or five three.
Seven 346, and referencing the conference I'd.
3.4443.
The earnings release, and then on wanted replay of this call will also be available on the company's website on the Investor Relations page. Thank you very much you may now be.
Disconnect.
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