Q2 2020 Independent Bank Corp (Michigan) Earnings Call
Two independent Bank Corp. second quarter 2020 earnings conference call.
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Oh wait to turn the conference over to Mr., Brett casual President and CEO. Please go ahead.
Good morning.
Thank you for joining independent Bank Corporation's conference call and webcast to discuss the Companys 2022nd quarter results I am Brad Kessel, President and Chief Executive Officer, joining me is Rob Shuster.
Well, we joined independent Bank Corp. as Chief Financial Officer last month.
We are very appreciative to have Rob rejoin our team as we work to permanently fill the position vacated with the resignation Steve Ericsson.
Also joining us today is Jim back Executive Vice President and head of commercial banking for company.
Before we begin today's call is my responsibility to direct you to the important information on page two for the cautionary note.
Regarding forward looking statements.
If anyone does not already had a copy of the press release issued by independent today, you can access it at the company's website.
Kinda back Dot com.
The agenda for today's call will include prepared remarks, followed by question and answer session and then closing remarks.
Before we begin reviewing our financial results I'd like to take a moment to pause and recognize the very difficult period of time. This past quarter has done for our country or communities.
Yes, yes.
Too many lives have been lost or negatively impacted by the krona virus actually have too many lives that lost or negatively impacted by racism and social and equity.
This trade of crisis does hold opportunity for positive change.
We're thankful to our customers employees and our board of directors.
Patience and perseverance that all of you as the independent Bank Corp. community has demonstrated its simply amazing.
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Well all of them and to you our investors and analysts I hope that you and your families are and remains safe and healthy during these difficult times.
Our efforts to keep our customers and employees safe in this environment began in March 3rd 2020, when we enacted a business continuity plan to help prevent the spread of the quota virus.
On March 10th 2020, the Michigan Department of Health and Human services identified the first two positive cases of cold at night gene in Michigan.
Such that as of July 27, U.S.C.D.C. reports, Michigan.
21000, a 19 cases and 6151, that's due to the Corona virus.
Oh reports 84073 positive cases.
And 3307 bats.
Oh for page four of our slide presentation, where some of the actions that have you have taken since the start of covert 19.
To protect our employees clients vendors and the communities we serve.
Turning to the financial highlights on page six.
Hi, I'm extremely pleased to report a very strong financial performance in the second quarter 2020. Despite the many challenges brought on by the Cold 19 pandemic.
My opinion, our associates did an amazing job during this quarter.
We closed nearly one half a billion dollars of mortgage loans, helping our customers to buy new homes or refinance existing mortgage loans.
We closed over 250 million of P.P.P. loans, helping our customers to keep their employees on the payroll and their businesses operating.
We actively administered over 1700 forbearance plans to help our business and retail customers weapon adversely impacted by the cold at 19 pandemic.
We continue to effectively operator business continuity plan to safely serve our customers and protect our employees.
Finally, we maintained solid asset quality metrics during the second quarter 2020, and in fact continued to build loan loss reserves.
Excluding P.P.P. laws and the remaining traverse city State Bank acquired loan balances the allowance for loan losses was equal to 1.38% of portfolio loans at June Thirtyth 2020.
Net income was one was $14.8 million or 67 cents per diluted share in the second quarter of 2020 versus $10.7 million or 46 cents per diluted share, but do you ever go quarter.
Six months ended June Thirtyth 2020 of the company earned.
$19.6 million or 88.
So <unk> per diluted share compared to net income of $20.1 million or 85 cents per diluted share in the prior year period.
On the balance sheet side total assets grew to $4.04 billion at June Thirtyth.
An increase of $478.6 million.
From December 31, 29 team.
Second quarter 2020, our loan portfolio increased by $148.5 billion, well our securities available for sale increased by $262 million.
Total deposits grew $401.6 million drunken quarter 20 twond.
Excluding brokered Cds this deposit growth increases to $424.8 million.
Also important for us during the second quarter was our issuance a 40 million of subordinated notes qualifying tier two capital with a 10 year maturity, a five year call option and an initial coupon interest rate of 5.95%.
The purpose of this issuance was for general corporate purposes and provides additional liquidity at the bank holding company level.
[noise] slide seven provides a view of our Michigan markets.
Despite the unexpected challenges brought on by the pandemic, we continue to execute on our longer term strategic objectives, including ongoing branch optimization and a digital transformation.
As it pertains to branch optimization, we closed two branch locations on June 26, 2020, and an additional six locations are closing.
July 31.
During the second quarter and for the six months of.
Thousand 20, we recognized branch closure costs of $417000, primarily due to the write down of fixed assets and lease assets.
As a result of these eight branch closures, we anticipate annual pretax savings of approximately $1.3 million Perspectively.
This brings our total branch count to anybody even 60 locations.
Turning to page eight we display several key economic statistics, reflecting the literal shutdown of the Michigan economy during the second quarter of 2020.
The Governor of Michigan issued her first stay home stay safe Executive order effective March 24.
In general that order in subsequent modifications required individuals, Michigan to stay at home or the place a regiments, except for certain specified activities that were deemed necessary to sustain or protect life.
That original executive order was amended several times in a sense Penrith send it and replaced entirely by a series of safer at home executive orders, which generally extended certain social distancing restrictions lifted requirement the individuals remain in their homes.
Under the current or order certain retail operations restaurants, and bars and other businesses are committed to resume in person operations subject to capacity limitations and other workplace safety requirements.
In addition for both the state of Michigan, and the state of Ohio protective masks are required to be worn in public facilities and for larger gatherings outside.
The degree to which business maybe resumed operations varies based on the region of the state in which they are located pursuant to the governors, Michigan safe start playing.
Arguably michigan's shutdown was broader and longer and many other states.
As a result, michigans unemployment rate is currently reported much higher than the U.S. unemployment rate.
At this time it is unclear as to how long michigans unemployment rate will be elevated as well as the pandemics overall impact on the Michigan economy.
On page 19, we provide a couple of charts, reflecting the composition of our deposit base as was the continued growth in this portfolio well working to effectively manage our overall cost of funds.
Since December 31, 2019, our deposits excluding brokered Cds have increased by $506.6 million with 425 million at this time increase taking place during the second quarter.
The largest category increasing on a linked quarter basis was our noninterest bearing the business deposits.
All the by savings in interest bearing.
Checking within the retail portfolio.
Some of the second quarter increase it's related to the deposit of PPP related funds. However, it is very difficult to determine how much of the over all deposit increase well stay in the bank and for how long.
Accordingly, we have invested these balances and very liquid relatively short duration assets generating high levels of cash payments.
Total cost of deposits decreased by 33 basis points on a linked quarter basis, and that's down 53 basis points when comparing to the same quarter one year ago.
On page 10, we provide an update on our loan portfolio.
Total loans increased by $148.5 million for the quarter no aggregate to $2.87 billion at June Thirtyth 2020.
This excludes loans held for sale of $84 million.
The increase was entirely related to PPP loans within our commercial portfolio offset by declines in our mortgage and installment portfolios.
Commercial portfolio grew by $181.4 million during the quarter again. This increase was primarily PPP related that was offset by significant paydowns and payoffs.
Hey reduction in line utilization.
Back line utilization decreased to 30.9% at June Thirtyth from 40.2% the prior quarter end.
Total mortgage originations for the quarter for $470.6 million compared to 241.4 million in the second quarter 2019.
Reflecting the impact of lower rates have head on the refinancing market.
Well for portfolio mortgage loans decreased by 28.3 million for the quarter due to portfolio Paydowns and a higher salable mix for new loan origination volume.
On page 11, we have an update on our modification and forbearance activities and our participation in the paycheck protection program.
We take pride in being supportive of our customers and communities are actively assisting those experiencing financial difficulty.
At June Thirtyth 2020, we have payment deferrals.
It's a 259 commercial customers and 210.5 million in loans or 15.4% of our portfolio.
Commercial forbearances are generally for principal payment only with interest payments continuing to be made.
On the retail side, we have forbearance agreements with 388 portfolio mortgage loan customers with 81.
Point 2 million imbalances or 7.8% of the mortgage loan portfolio and 280 installment loan customers with 7.4 million imbalances or 1.6% of the installment loan portfolio.
We tell a forbearance plans are primarily for both principal and interest payments for up to 90 days.
Fading these metrics for the retail side as of this week, we now are down to 506 portfolio Forbearances aggregating.
To a little under $69 million.
With regard to the Paycheck protection program, we built an effective process to manage the high volume of applications for loans as well as the applications for loan forgiveness as of June Thirtyth, We had 2012 PPP loans for 259 million outstanding.
And there was approximately 7.7 million of remaining Unaccreted net fees related to ppm P. loans, we expect these fees to be accretive into interest income over the next 20 months.
On page 12, we are displaying the concentrations the makeup of our entire commercial loan portfolio.
Hold on the left segmented by industry category reflects our see an eye portfolio, including owner occupied commercial real estate loans.
The chart on the right segmented by collateral type reflects our investor real estate loans.
The percentage should percentage as shown on both of these charts aggregate to 100% of the entire 1.36 billion commercial portfolio.
The portfolio, it's very granular nature with the largest concentrations and see an ivy manufacturing at 11% construction at 9% and retail at 7%.
Within the CRD portfolio, the largest concentration as retail at 6%.
We believe this portfolio is holding up very well, including loans and those industry sectors, whose business has been more negatively impacted by the covert 19 and then.
Page 13 provides an overview of our investments at June 32020, and activity within the portfolio during the quarter.
That's been securities available for sale increased $262 million during the quarter.
The portfolio is.
A very high quality with 85% of the portfolio rated doubling or better.
Additionally, the portfolios generally shorter term in nature.
With an estimated average duration at 2.47 years in a weighted average yield yield of 2.32%.
In terms of capital management, our capital levels continue to be strong with tangible common equity the tangible assets.
8.03% at June Thirtyth 20 Twond.
This is a bit below.
The bottom of our targeted range of 8.5% to 9.5% primarily as a result of larger than previously planned growth and total assets during the first half a 20 twond.
We do anticipate moving back into our targeted QC E range by the end of 2020.
The decrease in total assets in part because of anticipated PPP loan payoffs as was an increase in overall tangible capital through earnings.
We paid a quarterly cash dividend of 20 cents per share may 15th 2020.
Recently declared a 27 dividend on July 21st payable on August 14.
As we believed that our capital levels currently support the continuation of our dividend program.
During the first quarter of 2020, we repurchased 678929 shares.
March 16th before suspending the buyback in response to certain uncertain economic.
Environment.
At this time I would like to turn the presentation over the Rodney sure you comments on our financials are the quality Cecil and our outlook for the second half for 2020.
Thanks, Brad and good morning, everyone I am starting at page 15 of our presentation.
Red discussed the year over year slight decrease at our net interest income during his remarks, so I will focus on our net interest margin.
Our tax equivalent net interest margin was 3.36%.
During the second quarter of 2020, which is down 51 basis points from a year ago period.
27 basis points from the first quarter or 2020.
I will have some more detailed comments on this topic in a moment.
Average interest, earning assets were $3.66 billion in the second quarter of 20 Twond.
Appeared to $3.19 billion on a year ago order.
$3.35 billion in the first quarter of 20 Twond.
Page 16 contains a more detailed analysis.
The linked quarter increase.
Net interest income in the decline in the net interest margin.
Like many other banks, our second quarter 2020, net interest margin.
Is it mostly impacted primarily by three factors.
Significant decrease in market interest rates.
A surge in deposits and liquidity.
And low relative yields on the PPP loan portfolio.
We will comment more specifically on our outlook for net interest income.
And the net interest margin for the balance of 2020 later in the presentation.
Moving on to page 17, noninterest income totaled $20.4 million in the second quarter of 2020, as compared to $9.9 million and a year ago quarter.
And $11 million in the first quarter of 2020.
Of course, the story here is our exceptionally strong mortgage banking revenues.
To Q 20, net gains on mortgage loans increased to $17.6 million compared to $4.3 million into Q 19.
The increase in these gains was due to increases in mortgage loan sales volume.
And in the mortgage loan pipeline as well as stronger loan sale profit margins.
Mortgage loan application volume was very strong in Twoq, you 20 and continues to be strong at the start of the third quarter as we have both a solid purchase market in Michigan, and Ohio, and refinance volumes have been exceptionally strong.
Due to lower interest rates.
Partially offsetting these strong gains on mortgage loans was a 3 million dollar loss on mortgage loan servicing due primarily to a 2.9 million dollar or 10 cents per diluted share after tax.
Decrease as a fair value due to price of capitalized mortgage loan servicing rights into Q 20.
As detailed on page 18, our non interest expenses totaled $27.3 million in the second quarter of 2020.
Compared to $26.6 million in the year ago quarter in $28.7 million in the first quarter of 2020.
The second quarter of 20 Twond included.
About $420000 of branch closure costs.
About $350000 of conversion related expenses.
We will have more comments on our outlook for non interest expenses later in the presentation.
Page 19 provides data our nonperforming loans other real estate nonperforming assets in early stage delinquencies.
Total nonperforming assets were $13.9 million or 0.34% of total assets at June 32020.
Nonperforming loans decreased by $4.4 million during the second quarter of 2020, due primarily to a 4 million dollar charge off on one commercial credit that then got a remaining balance after this charge off of 2.9 million.
In dollars at June 32020.
We received a 2.6 million dollar paydown on this credit on July 21 2020.
The last $300000 on this credit.
It's fully reserved at June Thirtyth, what we are optimistic of collecting this remaining amount prior to the end of year.
Page 20 provides some additional asset quality data.
Including information on new loan defaults and on classified assets.
Page 21 provides information on our TDR portfolio that totaled $55.8 million at June 30, 2020.
This portfolio continues to perform very well with 94.2% of these loans or performing.
And nearly 93% of these loans being current at June 32020.
Moving on to page 22, we recorded a provision for loan losses expense of $5.2 million in the second quarter of 2020 compared to $652000, a year ago quarter and $6.7 million in the first quarter of.
20.
The single most significant factor driving the higher year to date provision for loan losses. In 2020 was an 8.7 million dollar or 98.2% increase in the qualitative subjective portion of the allowance for loan losses. This increase.
It's fully reflects the unique challenges in economic uncertainty resulted from the coal with 19 pandemic and the potential impact on our loan portfolio.
The allowance for loan losses was $34.5 million or 1.2% total portfolio loans at June 32020, and as Brad mentioned this ratio increases to 1.3 person three 8% when excluding PPP loans.
In the remaining traverse city State Bank acquired loans.
Page 23 provides an analysis of our allowance for loan losses under the incurred loss methodology and the seasonal methodology at June 32020.
Our calculated as if cease all allowance at June 32020 was approximately $43.2 million.
This indicates that given the midpoint of our as if they won Cecil impact of $9 million that the provision for loan losses in the first six months of 2020 under Cecil would've been similar to what we have recorded under the incurred loss methodology.
Page 24 provides an update on our implementation of the Cecil accounting standard as we stated last quarter, we will implement Cecil earlier of 12 31 2020.
Or the end of the coal grid related national emergency.
Page 25 is our update for the remainder of 2020 as well as a comparison of our actual performance.
During the year to the original outlook that we provided back in January 2020.
As you can appreciate many of the factors that shape, our original outlook have changed dramatically given the economic upheaval from the coal that 19 pandemic.
We now expect total portfolio loans declined by approximately 1% to 2% for all of 2020.
This was due primarily to pay downs, including forgiveness that we anticipate the PPP loan portfolio over the last half of 2020.
And more muted commercial loan demand as well as continued low overall commute commercial line of credit usage.
Despite the after a mentioned overall decline in portfolio loans, we expect the net interest margin to be steady to slightly higher over the last half of Twentytwenty due primarily to the following factors.
An increase in the overall average yield of the PPP loan portfolio due to pay downs, resulting in an acceleration in the accretion of net fees.
The third and fourth quarters.
The deployment of excess liquidity from the deposit surge into securities available for sale, which largely took place during the last month of the second quarter.
And finally, we expect relatively steady interest rates in the last half of 2020.
As compared to the second quarter of 2020.
The provision for loan losses is very difficult to forecast given the economic uncertainty that we are facing.
However, as Brad mentioned, we have seen a decline in the level of forbearance agreements in our mortgage and installment loan portfolios during July.
In addition asset quality metrics President we remain solid.
We are currently modeling the provision for loan losses of about 0.55%, 0.60% annualized a portfolio loans for the last six months of Twentytwenty.
This equates to about eight to eight half million dollars in total for the last half of Twentytwenty.
We expect noninterest income to average a bit above the high end of the original forecasted range in the last two quarters, excluding any volatility associated with changes to the price in the fair values of SMS ours.
Mortgage loan origination activity an application volumes have remained very strong in July.
But we do anticipate a seasonal slowdown and purchase activity in some cooling of the refinance activity as we move towards the end of the year.
We expect non interest expenses to generally be within our forecasted range in the last half of 2020.
Our effective income tax rate was 19.3% the second quarter of 20, which was generally in line with our forecast and thus we reaffirm our guidance were approximately a 20% effective income tax rate.
Finally, we anticipate share repurchases to remain on hold until there is more certainty with respect to the economic fallout from the coded 19 pandemic.
That concludes my prepared remarks, I would now like to turn the call back over to Brad.
Thanks, Rob.
The first half of 2020 has been an extraordinary period of time for all of US. Our team continues to execute on the initiatives reflected on slide 26 of our presentation. In addition to new initiatives as a result of depend then.
We will continue to move forward. Both these planned and unplanned initiatives, while continuing to protect the health and wellbeing of our employees our customers and our community.
At this point, we would now like to open up the call for questions.
I'll begin the question answer session.
That's good question I May Press Star then one on your Touchtone phone.
For use of Speakerphone, please pick up your handset before pressing the keys.
Withdraw your question. Please press Star then too.
At this time I'll pause momentarily to assemble roster.
First question comes from Brendan those out Piper Sandler. Please go ahead.
Hey, good morning, guys how are you.
Brendan.
Oh, just want to start off here on the net interest margin. So your guidance calls for flat to up modestly for the rest of the year and it's something that include some acceleration at PPP you.
As as longer for given.
Can you just get a sense of what you expect the NIM to do for the remainder of the year outside of those accelerated seats.
Hi, yes.
Yes, I think outside of that.
It would be relatively flat from the.
Third or from the second quarter and I think.
The other two factors.
That are influencing that I mentioned was one.
We did.
Deploy a much of that deposit surge in the month of June so were getting.
Full impact from having done that were ads during the second quarter all that.
Period of time was just an overnight funds at the fed learning.
Very little so I think that.
We will be a boost.
We'll tend.
Offset some of.
Our compression from some shrinking the loan portfolio that we anticipate.
Taking a side the PPP loans so.
So where we see the boost is really from the acceleration.
In.
The accretion of those fees.
And then the other comment that I made is we anticipate.
That rates will be relatively flat short term rates really can't come down much anymore, unless we get the negative territory in long we've seen good.
Well sort of be at.
A steady point, so we feel like much of the impact of the dramatic decline in rates occurred during the second quarter and it's not going out.
Continue to.
Have a negative impact in fact, I say I think we do have a little more room on the funding side as we move through the last two quarters, not a lot but a bit.
Well, if you wanted to add anything that's good.
Alright, perfect Thats very helpful.
And then one more for me just on the charge off this quarter you recall correctly that was the loan that moved from watch list to nonaccrual last quarter.
And just in relation to that just as you look at the broader portfolio are there any other credits whether they are on deferral right now or non accrual.
Having no issues because of Colgate that you think could move to a loss position over the next three to six months.
Hello.
I guess I will take first shot at that man.
Jim jump in there. So you did see an increase in the TV ours.
For the quarter of about $5 million that was a.
Commercial real estate.
Relationship.
And.
Well it bumped up teen yards.
You have.
Right.
Borrower has a purchase agreement.
For the sale of that property.
And so I guess kind of.
That was probably.
On that would have been on my radar as and on I'm, a little concerned about and we still.
I want to see that come to fruition eventual sale, but.
Beyond that Jim.
Really.
Bob spinoff.
Outside of the one that's where no one large ones that I see on defense health that and the one that did that Joe go sideways. There was in the movie theater business. So that was an asset category that we just decided to.
To me side as opposed to hold on.
And we don't have anymore, we do we do not have any more in that industry.
In the other thing I'd add is we've taken a pretty in depth look at our top 50 credits within the commercial loan portfolio. So we've really tried to evaluate.
All of those credits in relation to the.
Hi, good economic climate, we're dealing with and we really find that debt.
Group of loans is still doing quite well.
Alright fantastic. Thank you for taking the questions.
Our next question comes from John Roads with Janney. Please go ahead.
Morning, guys.
John.
Rob Welcome back Hey, Thanks to the back good to hear your voice, it's been a long time.
No not really but a lot has changed but up guys. Thanks for all the detail and I guess, Rob for Brad wondering what have you just your comments about the loan outlook.
Looking for loans to be down I think you said, 1% to 2% year over year can what are you sort of assuming though for the PPP loans the level of forgiveness and then how much in the second half of this year versus next year.
So much you take for show them.
Now with all the changes that were going on with the PPP forgiveness piece, so far which we're waiting for that to fully be finalized, but with the 24 week timeframe now.
We look to have a much higher percent forgiven.
Then I initially thought so I think it will be up and the 90% to 95% range for the forgiveness piece.
Modeled out about two thirds of the forgiveness process to be collected by the end of this year.
Okay. Thank you guys John I'm looking at it going from about 250 million down to a bit over 100 million I think by the end of the year.
Yes.
Okay that will that assumes that everything is moving along with SPD and processing forgiveness applications or other into big delays there. So.
And obviously rod that would be more heavily weighted in the fourth quarter versus the third quarter just.
Yes, I mean, we're assuming that we get a bit of a chunk in September once the portal opens up so there is a chunk and.
September as well, but the bigger.
Paydown is in the fourth quarter two.
Okay and then just one other question on the securities portfolio. So, it's roughly 21% of assets today and.
Given you still have some excess liquidity and so forth and then I guess, depending on what happens on the deposit side.
How high would you take that I guess in the current environment as a percent of assets from the current 21%.
I don't really think there's a ratio there I think.
Well look.
One is it's going to be driven by what's going on and the deposit portfolio and then.
Kind of the way to pay down in the PPP portfolio I don't think we're going to see big changes and Lee installment loan portfolio or the mortgage portfolio of mortgage portfolio may drift down a little bit because of refinancing activity, but I don't think thats going to change, but I think outside of PPP come.
Commercial loans will be.
Reasonably steady.
Ill.
So given that.
I think a lot of it is just going to depend on the deposit surge and we do have potentially another wave of.
Money's going to.
Consumers with the federal government aid package that is being discussed so.
Well, it's hard to tell the length of time that those deposits will remain here and as a result, we've sort of taken in approach to.
Investing.
In really either relatively short duration.
Assets that roll off a lot of cash.
Or.
Investments that could easily be liquidated or variable rate, so sort of a combination of those three things, but I think you know if it moves up.
Relative to total assets, it's largely going to be because of what's going on with the deposit base.
Ill.
Again, I don't think we're going to set some kind of limit there.
Okay that makes sense, Rob thank you.
Again, if you have a question. Please press Star then one.
Our next question comes from Russell Gunther Da Davidson. Please go ahead.
Good morning, guys.
Good morning Russell.
I appreciate the commentary on deferral activity, especially within the migration retail is there any incremental color you could provide on the commercial deferrals roughly 15% I know you mentioned.
Thanks for heading lower in July, but just kind of up a point to point update there just it at all possible.
Sure. This is Jim Mac.
So as shown in the presentation, we had 259 loans and 210 million of deferrals that we've done.
Right now were go we're getting close to the end of that timeframe a lot of those were done in mid to late April some even in May So August won't be the first.
Period, where those payments will resume to the normal schedule also keep in mind that over 90% of what we did we're simply principal deferrals interest payments continued on the bulk of that portfolio.
And that we've seen very few for second round additional reclass third urban five so far to asked us for another three months.
And that remains to be seen how many more it's been low activity at the moment.
Okay, and then so what's your expectation might be for the originals as they roll off.
Overwhelming majority it sounds like would.
When we speak next quarter.
We would not be talking about much in the weighted to for us.
That's the expectation, but again it remains to be seen.
Understood.
Okay. Appreciate the clarification there.
And then another minor one in terms of the provision guidance.
The what are the 55 to 60 basis points of average total loans does that include PPP loans on the balance sheet or should we adjust for that.
I just took the total average loans, so I didn't really adjust for that and coming up with that number Thats why kind gave you a dollar amount to of eight to eight they half million in total for the last six months, so that just sort of.
Clarifies what what bet.
Ratio range means.
Perfect I appreciate the clarification there.
And then.
Bigger picture this maybe a few quarters out but.
In terms of.
Ppps off the books as you think about what 21 might hold from a budgeting perspective around organic loan growth.
Obviously, a lot can change from now to then but do you have a view as to as to where independent might shakeout.
Organic loan growth perspective into 21.
Russell you know Thats correct question, So you're asking me to see 12 months when I'm, having a hard times in three months.
I would say this.
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We continue to position the company.
To be.
Competitive within our our markets and we're still.
Knocking on doors, where we're recruiting we're adding talented staff can you even this past quarter.
As there continues to be.
Remnant disruption from past announced.
I am always.
And so.
You know we will.
Our.
Loan activity in 2021 will be very much driven by.
What's happening with the overall economy, but we will feel the team that will be very very competitive in our markets.
Sorry that is your thoughts sorry that doesn't give you a percentage further for in a model.
Yeah.
I would think there's a lot of market share for grad. So I appreciate your your thoughts there.
Thanks for taking my question.
Welcome.
This concludes our question answer session.
I'd like to turn the conference back over to Mr., Brad Kessel. Please go ahead.
We'd like to thank each of you for your interest in independent Bank Corp. and for joining us on todays call I wish everyone great. Okay. Thank you.
Conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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