Q2 2020 Independent Bank Group Inc Earnings Call
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It is now my pleasure to introduce your host Paul like Dell Senior Vice President corporate development for Independent Bank group. Thank you you may begin.
Good morning, everyone I'm poll, Langdale, senior Vice President and director of corporate development for Independent Bank Group and I would like to welcome you to the independent Bank Group second quarter 2020 earnings call. We appreciate you joining us the related earnings press release in a slide presentation can be accessed on our website I B T X dotcom.
I would like to remind you that remarks made today may include forward looking statements. Those statements are subject to risks and uncertainties that could cause actual and expected results to differ we had 10 such statements to be covered by safe Harbor provisions for forward looking statements.
Please see page seven of the text in the release or page two of the slide presentation first Safe Harbor statement. All comments made during today's call are subject to that statement.
Please note that if we give guidance about future results that guidance is a statement of management's beliefs at the time to statements made we assume no obligation to publicly update guidance and this call. We will discuss a number of financial measures to be considered non GAPP under the Fccs rules reconciliations of these financial measures to the most directly comparable GAAP financial measures are included at all really.
I'm joined this morning by David Brooks, our chairman CEO, and President Damn Brooks, our Vice Chairman and Chief Risk Officer, and Michelle Hickox Executive Vice President and CFO at the end of their remarks, David will open the call the questions with that I'll turn it over to David.
Thanks, Paul Good morning, everyone and thank you for joining us on todays call.
Since the cobot 19 pandemic emerge in March our teams have worked tirelessly to mitigate risk and manage through unprecedented uncertainty.
While adapting our operations to the new normal.
I'm, especially proud of how teams from across our company came together during the quarter to process over 6200, pvp loans totaling over $823 million for our customers, providing a crucial lifeline to many small businesses aren't communities.
We took a very large loan loss provision this quarter to.
To prudently prepare for the economic volatility in the dates that lie ahead. Despite this outsized revision.
We were able to report adjusted earnings per share of a dollar and 14 cents.
It's a reflection adjusted return on an average assets of 1.2%.
And adjusted return on tangible equity of 14.86%.
This solid financial performance in the face of the unprecedented challenges in our local state national economies reflects our conservative credit culture and commitment to ongoing operational efficiency.
While we believe building our loan loss provision amid the current uncertainty is prudent we were pleased to see how well our loan portfolio held up during this quarter as Dan will discuss.
Asset quality metrics remain strong.
We also did you build capital with our key ratios showing increases from the previous quarter.
With that overview I'll turn the call over Michelle for more detail on the operating results for the quarter.
Thank you David Good morning, everyone. Please note that slide five of the presentation include selected financial data for the quarter.
Our second quarter adjusted net income was 49.1 million or $1.14 per diluted share compared with 52.9 million or $1.22 per diluted share for the second quarter last year, and 43.4 million or a dollar one per diluted share for the linked quarter.
Net interest income was 128.4 million in the second quarter down from 129.6 million in the second quarter last year and up from 100 in 23.2 million in the linked quarter.
Decrease in asset yields from the first quarter, primarily due to accretion lumpy P.P. yields and fed fund decreases was offset by significant drop in funding costs in Q2.
Year over year net interest income was impacted by 9.1 million dollar decrease in purchase accounting accretion, but this decrease was mostly offset by a reduction in funding costs.
The adjusted NIM, excluding all loan accretion was 3.32 per cent for the second quarter compared with 3.6 over set in the second quarter last year and 3.48% in the linked quarter.
The decrease in the adjusted NIM was driven by multiple factors, including low yields on P.P.P. loans and a substantial increase in the banks liquidity position during the second quarter.
We estimate that the increase liquidity negatively impacted the adjusted NIM by 20 basis points as compared to the first quarter 2020.
Total noninterest income increased 10.9 million from the linked quarter to 25.4 million in Q2.
The increase was driven primarily by 8 million dollar increase in mortgage banking revenues and the recovery of a three and a half million dollar reserve on an acquired Sta lung.
These increases were partially offset by decline in volume based service charge income due to the covert not seen pandemic and a decline in investment management income.
Total non interest expense totaled 83 million for the second quarter 2020, there were several nonrecurring items, including 15.6 million of acquisition costs for the terminated Texas capital Emily.
1.5 million of expenses due to the cobot not seen pandemic and a 738000 dollar old a worry impairment.
In addition, salaries and benefits of 34.4 million were lower than normal due to an increase in deferred cost of 9.4 million over Q1 related to P.P.P. loan origination in a significant increase in modifications.
This decrease was offset by 2.8 million of severance and accelerated our I say expense first strategic restructuring after the merger termination as well as nonrecurring salary and bonuses of 2.4 million related to PPP and cobot 19.
Slide 20 shows our deposit mix in cost.
Total deposits were 13.3 billion as of June 30, 2020, an increase of 1.4 billion EUR, 47.9% annualized from the linked quarter.
We estimate approximately 580 million of this increase is related to PPP borrowers that continued to hold the deposits in their commercial accounts as of June 30.
Total borrowings were 1.1 billion.
At June 30, 2020 and include 500 million of short term FHLB advances that have matured since June thirtyth as well as an additional 150 million of FHLB advances expected roll off prior to the end of the third quarter.
The short term advances were obtained early second quarter in anticipation of the P.P.P. fundings as well as to ensure adequate liquidity during the pandemic.
We will continue to monitor liquidity and can utilize the P.P.P.L.S., if we need additional funding in Q3.
Capital ratios are presented on slide 22, and reflect that we continue to build capital.
Common equity tier one capital ratio increased about 23 basis points to pinpoint 17% and the total capital total capital ratio increased by 39 basis points to 12.44% as of quarter in.
That concludes my comments. This morning, so I will turn it over to Dan to discuss the loan portfolio.
Thanks, Michelle overall loans held for investment not including mortgage warehouse purchase loans were 11.7 billion at June 32020, compared to 11.0 billion at March 31st 2020.
Loan growth of 669.4 million for the quarter includes PPP loans of 823.3 million.
Loans, excluding PPP loans were down 61 point sixmillion year to date due primarily to the economic dislocation, resulting from the ground virus pandemic.
Mortgage warehouse purchase loans averaged 665.8 million for the quarter up from 547.3 million from the quarter ended March 31st 2020.
Our mortgage warehouse continues to see sustained demand from the persistent low mortgage rate environment.
Slide nine shows the composition of our loan portfolio and slide 11 shows the composition of our commercial real estate portfolio.
As of June 30, 2020, commercial real estate makes up 45.9% of loans.
Our theory book as well diversified and types of collateral with the largest segments in retail and office, which includes office warehouse.
Across our entire theory portfolio, our average loan size is $1.2 million and our largest loan size is $20.9 million.
29.7% of our theory portfolio.
Its owner occupied.
Slide 12 further breaks down the retail see every portfolio by property type.
Our retail portfolio is an extremely granular booked with an average loan size at $1.7 million.
Before the <unk> 19 opinion began the weighted average debt service coverage ratio in our retail portfolio was 1.68 times.
And the weighted average loan to value was 54%.
Well this portfolio has seen a large number of deferral requests dating from the early days of the pandemic.
Subsequent developments have been favorable to landlords and our conversations with borrowers indicates that rent collections across our markets have been better than anticipated.
About a third of our retail book received a deferral and about a third of those loans have since returned to payment.
We anticipate more retail loans to return to full payment in the third quarter, we have a high degree of confidence that our conservative underwriting coupled with the overall granularity of the retail scenery portfolio places the bank in a favorable position to navigate any impacts to this asset class.
Additional detail regarding our hotel motel exposure can be found on slide 14.
The hotel book is largely secured by properties in our markets and is conservatively underwritten with a pre coded weighted average LTV of 57%.
Pre co bid weighted average DSC are 1.78 times.
Hotel motel asset class has been one or the most acutely impacted during the pandemic.
While occupancy rates have lifted from the low seen during March and April we expected. This segment will continue to lag behind other segments of the portfolio.
Slide 13 contain some additional detail on office theory.
The office theory product type is just as granular as or others theory lines.
The average loan size of $1.0 million.
Of note, 35% of office CRB loans are secured by office warehouse properties.
Slide 15 contained details regarding our energy book.
Given the recent rebound in commodity prices and the results of recent stress testing. We're confident that this book will continue to exhibit resilience.
Slide 16 provides detail on co good 19 loan modifications.
Consistent with our approach to relationship banking, we readily provided temporary payment related to our affected customers well actively gathering information and evaluating developments.
The vast majority of deferrals were granted for a period of 90 days and since March the cumulative total persons or loans that have received some sort of payment relief is 9% of the banks total loans.
We've been pleased that many borrowers who receive full payment deferrals began to voluntarily resume making payments as the economy reopened.
56% of the loans that have been granted deferrals have started to make payments again.
Note that deferrals sharply peaked in April.
As of early July approximately 6% of our loans remain in deferral or have not yet made a payment and we anticipate this number to decrease has payments resume following the expiration of the first deferral period.
Overall, our credit quality metrics continue to remain strong.
Total nonperforming assets decreasing to $28.4 million or 0.17% of total assets at June 32020.
Down three basis points from the linked quarter.
Net charge offs remained flat at <unk>, 0.05% annualized for the first quarter 2020.
As noted in our first quarter call, we elected to defer the adoption of Cecil has provided under the cares Act and our allowance and second quarter 2020 provision were calculated using our incurred loss model.
Provision for loan loss expense was $23.1 million for the second quarter, an increase of 14.7 million over the linked quarter.
This represents a qualitative factor to prudently recognize the economic environment and uncertainty related to the Coca 19 pandemic.
The provision expense also included a $1.1 million charge off on a commercial loan and a 4.1 million dollar increase to a specific reserve placed on an energy credit that had previously been placed on non accrual and discussed in prior quarters.
These are all my comments I have related to the loan portfolio. This morning, so with that I'll turn it back over to David.
Thanks, Dan.
Following the announcement of the termination of the Texas capital murder, We began a strategic realignment initiative with regard to our overall organizational design and infrastructure.
We intend to focus on this process over the remainder of the year to position the company for continued high performance at future growth.
Our company's footprint and compensate us for the country strongest markets across Colorado and Texas.
Consistently said that having great customers in great markets has helped us deliver strong returns to shareholders and I believe that are great markets will help us in pursuit of continued strong performance through this challenging period. In addition, our lenders are continued build relationships that will deliver even stronger results as the economy.
The improves.
I am grateful for their tremendous result, and dedication for everyone here at independent financial and I'm confident our teams will continue to serve as a great source of strength to our customers and our communities in the months in years ahead.
Thank you for taking the time to join us today.
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Our first question comes from the line of Brad Milsaps with Piper Sandler. Please proceed with your question.
Hey, good morning, guys.
Hey, good morning, Brett.
Hi, Thanks for taking my questions.
Maybe I'll start with.
On the expense side of things.
Michelle a lot of lot of moving parts. This quarter I don't know if I got you know all of them, but it seems like.
Maybe on a net basis your expenses were somewhere.
Around 70 to 71 million to kinda, depending upon what you wanted to include or exclude just kind of curious.
Kind of how you're thinking about the expense run rate.
In the back half of the year.
Opportunity that you may have seen you know as a result, the pandemic, where you can get some savings you know kind of against.
Additional areas, where you may have to do some investing.
Yeah, Thanks, Brad and your I think your numbers are exactly right I have that you know did we had we not had sort of the noise primarily related to deferred cost mostly on TPP Lonesome due to all the modifications that we did this quarter.
So our salary run rate would've been about little over a 39 million for the quarter had we not had that plus an additional one time expenses that offset that related to severance and then PPP bonuses and premium private pay that we had this quarter, which would put our noninterest expense run rate at a broader.
About 71 million for the quarter, if it was normalized and I I still think that 71. This 72 million run rate ongoing for now is a good number.
Great and I appreciate that and then just on PPP lending.
Do you happen to have the average about a PPP along as you had the quarter and then what do you come out but the level of interest income that you recognized in the second quarter as well.
I don't know the exact average I think was a little less than 700 million for the full quarter, Brad and the total income recognized was about four and a half million. If you include fees and interest.
Great and maybe just final question for for Dave or Dan You know as you kind of think about you know provisioning tie the things that that drove it this quarter.
I understand that you guys haven't adopted Cecil yet, but we have you know.
Economic stability. However, you wanted to find that from here continued to improve beat or would you expect that.
You would see incremental reserve building from here do you think you're getting close to a peak or do you expect a you know to dive kind of more significant building and as you kind of this through the back half.
Hi, Good morning, Brad This is Dan yeah in the second quarter, we added some Q factors primarily related to see Ari to recognize.
Current environment, we're in and to answer your question, specifically, if the current economic conditions hold or.
Slightly improve then we certainly would expected future reserves to be less than what we took in the second quarter.
Noting that second quarter was really the recognition of those additional.
Risks factors.
And as Weve.
Brad as we've noted previously our we expect or day, one seasonal adjustment when we do adopt to be about 80 million. If you put that in where we ended up X PPP a word about 147, 1.47%, which as you know as far higher than we've ever had.
Before and we think we're fully reserved at the moment as Dan said, given the circumstances and then obviously future economic data will determine quarter to quarter out goes but might also mentioned that in checking with Michelle and Dan and the committee that sets looks at the whole.
Provisioning at all so at the Cecil.
Model. This running also beside the the incurred loss model.
The at you at 630, we think that the.
The incurred loss model and the Cecil while year to date are.
Materially the same.
The other than an 80 million, we wouldn't expect the big adjustment when we adopt seesawing is another way to say that.
Great. Thank you guys I appreciate it.
Thanks, Brad.
Thank you. Our next question comes from Brady Gailey with KBW. Please proceed with your question.
Thanks, Good morning, guys.
Hey, good morning break.
So David can you just expand a little bit on this strategic realignment I think is what you call. It after the.
CCBI merger didn't happen.
That Don is ongoing and what what should we expect there I mean, sometimes you're here or something like that and you think that it's potentially some expense savings on the horizon, but maybe just expand a little bit on exactly what you're focused on there and what we've kind of spot.
Yes, Brady thanks to the as you know, we we have Michael Hobbs, who use our chief.
Chief Banking officer, and it's coming down from Colorado, where he was president guaranteed bank when we acquired it.
And.
And Mike why it's Michael take really hard look.
He was intricately involved is you know we announced in the merger he was going to be.
You, an executive officer, overseeing all the traditional community banking and several other aspects of the revenue along with John Survivor in the New go forward company well.
So he has been integrally involved in those discussions around all this integration and so he had movie how to look at what we were doing a deep dive at what.
Texas capital was doing and and.
And then obviously he's got his experience in Colorado that he brings with him as well in some successes they add up there as we've talked about before in both retail and in middle market see an eye, where they had a terrific amount of success really under under Michael's leadership.
Hiring teams putting teams together in those areas. So.
The the strategic realignment was our decision to exit the origination of equipment finance and equipment.
Loans, both leases and loans.
As it line of business and also to pull back a little bit on SP a.
As it regards.
Business development in SP as you know as a separate line of business. So we're still going to be very active in SBK, we feel good about.
And our experience in that is what allowed us to have very good early success in the BPP program. So we.
We think were very good and SB eight overall, but we are now doing it more as a support line to all of our community banking across Colorado, and Texas as opposed to a separate line of business generating that makes sense. So so that's kind of the realignment is.
To move away, a little bit or move away completely from equipment finance and a little bit from SB, a and then to move more directly as we've talked about before Brady into a retail strategy that's been very successful in Colorado.
Now that rolled out across Texas, we made two key strategic hires we'll be announcing here in the next week or so.
In that business to roll it out across Texas, and then also to implement the middle market see an odd business. So to your point, yes, we are.
Our down.
Call it $3 million or so in run rate.
Salaries on the revenue side, but we're going to turn around reinvest.
A chunk of that into the retail strategy and into the middle market strategy as well as as Michelle has spoken about our.
Infrastructure investments and initiatives as well so that's why she mentioned I think to Brad's question earlier about.
Our run rate expenses, even though yes were down a little bit right now we expect it to be.
Steady consistent that 70 172 million that that Michelle mentioned earlier.
Okay great.
Next I wanted to ask about longer if you look at it.
PPP and excluding mortgage warehouse, yet so it was down linked quarter.
Any thoughts on loan growth on the back half the year and into next year.
Yes, we second quarter was obviously, we think an anomaly.
To have a decline in our loans held for investment.
Really for the first time, we can remember.
That said the economy shut down and another thing we saw was.
Some investment groups and families exiting some assets, particularly real estate assets given the continued low cap rates and given the economic uncertainty. So we had a lot of headwind on payoffs in the quarter and given the economy shut down while we are continuing to have a lot of discussions and looking at opportunities. We just didnt get.
You know enough deals to the finish line in the second quarter to offset the Paydowns that we had so thats what happen as far as the go forward I think it's going to.
The pipeline is really strong right now we feel good about how things are developing here in the third quarter and looking at a lot a really nice opportunities. It seems like some investors are now coming off the sidelines and saying, okay I'm going to start looking for the opportunities now of any disruption or dislocation.
It's just hard to call exactly I guess, maybe two 3% growth is what we would expect in the back half of this year Brady and then obviously pending economic activity it should be.
Significantly stronger than that 21.
Assuming we get back to a more normal kind of environment.
Okay. All right. That's helpful. Then finally from me.
Maybe just an outlook on the margin cost of deposits came down pretty nice this quarter, but it feels like it could go a little lower and then I know liquidity has.
A big impact on them, but any thoughts on either spread income or are the NIM for the back half there.
Yeah, I still think you know the I estimate that liquidity impacted our NIM by 20 basis points, we just our balance sheet and those large we had a week, we're holding a lot of money in interest bearing deposits and the yield on those it's not that great as you know and we've already and our balance sheets already shrunk by about 500 million since.
At the end of the quarter, we've let a couple of FHLB advances go that we didn't need.
So I don't think that we will have maybe half of that liquidity that we had on our but this quarter just that the NIM will increase but if you just look at the underlying loan and deposit yields and cost we still have some opportunity on deposits were continuing to see those you know go down our treasurer is still working.
Really hard with our relationship managers to native exception rates down she's done a really good job at that as we've talked about before we still have some promotional CD products 13 months Cds that are maturing over the next three months that there's probably a 2% delta and what that is bar paying versus what they'll be renewing at.
So we'll still get some benefit I think the question is loan yields as you know at what point are we able to get better pricing on loans that I think it's pretty competitive right now that sort of given where we are I think our I see just look at underlying loans and deposits I think our NIM as I call for its still to remain stable through the rest of this year.
Okay, great. Thanks, guys.
It was actually Michel I believe we discussed.
The core NIM as we think about extra liquidity ex PPP was probably after four basis points. This quarter. That's so thats consistent with your previous.
Indication that we think it'll be flattish going forward I think that was supported in the second quarter set there that's right.
Thanks Barry.
Thank you. Our next question comes from Michael Rose with Raymond James. Please proceed with your question.
Hey, guys. Thanks for taking my questions.
Wanted to start on criticized and classified I'm trying to understand kind of the the reserve build this quarter. How much was was those Q factors and then maybe how much with some risk rating migration I think criticized classified was about 219 million last quarter any update there and then any update on the 39 past due bucket. Thanks.
Yeah, I think the.
Criticized classified you didnt see a material.
Change in those from the previous quarter, Michael I think it's still early as we look at that we're evaluating each credit as we're touching them. These days so determined a further grading as it is necessary.
And past dues as you can see materially better than than.
Well, we have seen there.
I think there are the portfolio continues to perform well so.
We would expect at this point that there will be some migration as I think everyone would expect as the.
Pandemic continues but we don't see that has been an outsize change at this point.
Okay. That's helpful. And then maybe just a clarification for Michelle I, just want to make sure that I understand expense commentary correctly, so that would exclude the 10.3 million roughly above of expenses that you deferred.
Related to PB piece of the way I understand it is you'll recognize those expenses as the as the fees.
I recognize when the laws of forgiven or are they coming from maturity in two years since that is that the way to think about it.
That's right that's right.
Okay. So then if we assume that hey.
I guess what is your assumption for at this point based on what you can see from the PPP laws in terms of forgiveness, and then I assume that youre you'd expect the larger proportion of the fees in the fourth quarter.
Yeah, I think at this point I had just given you know what's happening I don't believe that we're going to get a lot of forgiveness, maybe any this quarter I think that's going to get this to fourth quarter may be even first quarter now.
Uh Huh are our run rate on on fees that were recognizing on TPP is about 1.3 million a month, Michael if that's helpful.
Yeah, Let me know pay assuming a payoff.
Yeah that's.
That's very helpful. And then can we just get a little color I'm, sorry, I missed this on the deposit growth this quarter ex the the PPP impact it was really strong and it was there any sort of concentration there was a couple large borrowers. This just any color you might have to be helpful. Thanks.
Ah you know we looked at that there's there's really not as significant concentration you know we do have our title companies those tend to be lumpy.
And our noninterest bearing deposits grew significantly even ex PPP and it looking at our deposit base. It was just two to 5 million dollar chunk sort of across our commercial depositors.
And our specialty Treasury group did have I think about 100 million that came in but that's not really that unusual for them and so it was really just sort of across our deposit base is where our deposits came from our sensor that Michael was it the sentiment of our customer base was liquidity is important in times of uncertainty. So a lot of we just.
I felt like a lot of our customers were.
Keeping extraordinary amount of balances in their accounts given the uncertainty in the world and we don't know how to think about that although it was it was really extraordinary the growth rate of our noninterest bearing BD a in the quarter was greater than we've ever seen before so we'll we'll see how that holds up but we do we are encouraged.
About our continuous something we've talked at the last two years, our ability to generate core.
Low cost deposits across our branch network.
Continues to be a strength of the company.
But but also safe to assume that maybe some of that reverses assuming the environment.
You know gets less bad as we move forward.
Sure Yeah, I think that's fair.
Right. Okay, guys. Thanks for taking my questions.
Hey, Thanks, Mike.
Thank you. Our next question comes from Matt Olney Stephens. Please proceed with your question.
Hey, Thanks, Good morning, guys I want to start weight.
Thank you.
Retail theory, and Dan I believe you mentioned and prepared remarks that recent win collections have been better than expected can you add anymore any more color to the statement.
Yeah, I think we've talked about the sun in the past.
Matt.
Very strong performance pre co good and this book and going into it I think many of the deferrals as a measure of perhaps.
The way this portfolio is it would perform minnows deferrals will defensive it appears now.
When they came to US and asked for 90 day deferral, we looked at the and asks what was going on and based on that were readily granted those to the customers that needed them.
In retrospect as we've continued to gather.
A lot of detailed information from many of those borrowers the rent collections were much better than expected and I'd say they range, probably averaged 70% to 80% range, but we certainly had somewhat collected 100% of their rents and certainly some that would've been less but I think on average 70% to 80% would be a good number to think about.
Overall, I think that that book performed well and.
Better then perhaps our borrowers thought it would.
Okay. That's great I appreciate that and then I guess in that same book, Dan I think you disclose the.
Debt service coverage ratios and Ltvs and overall looks great looks like the overall.
Leverage levels are pretty low.
Have you looked at any updated appraisals in recent months.
Since the pandemic started and if so any any takeaways from the more recent appraisals.
I would say we've not.
Going in and a new appraisals on any of the existing book.
On new credits that we would evaluate and that we continued to be aware of those appraisals have not seen a material decline and last couple of months. So we've not seen a big shift and values, which is the question everyone wants to to know riders are we seeing a deterioration about.
We've not seen that at this point.
Great. That's a great news and then shifting over to must show Michel you mentioned some FHLB funding that's rolling off right now what was the average cost of that that rolled off and I assume you'll be replacing this with more retail deposits, what's the incremental deposit costs, you're seeing today, just trying to see.
With a trade off is gonna be.
The FHLB and the short term advances we were paying 35 basis points on those Matt.
And at today, our overall cost of funds is right at 50 basis point.
The 50 bed, that's the incremental cost for the new deposit.
No I mean, it depends it depends like our like I mentioned earlier, our promotional Cds that we have out there that that does it we're paying 250 those are renewing at 35 basis point.
We have many market index fund some that pay up to 75 or 85 basis points, depending on the customer most likely though you know will we can still utilize that TPPL last if we need funding for the PPP loans, you know until those pay off and that's it 35 bed I don't really at one right now.
We don't need the liquidity and I don't really anticipate and an additional incremental costs related to that.
Really the trade Michel if I'm thinking about it right would be.
We've got excess liquidity, we don't need so you're rolling out if you take a hypothetical 100 million you rollout a $100 million of re repay that that advance at 35, Bips and that will come out of the balances were holding at other financial institutions, which are yielding.
Depends 25 to 35 basis, yeah. So it's really should have no real impact on our spread at all.
Okay. That's helpful. Thank you guys.
Thank you Matt.
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Our next question comes from Michael Young with Suntrust. Please proceed with your question.
Michael Your line is why do you May proceed with your question.
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Please hold while we pull for any additional questions.
We have no additional questions at this time I'd like to pass the floor back up or the management for any additional closing comments.
Oh. Thank you very much appreciate a help today with the call. We appreciate your participation and thank you for your interest in independent Bank Group I Hope everyone has a great day bye.
Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation and you may disconnect your lines at this time.