Q2 2020 First Western Financial Inc Earnings Call
Ladies and gentlemen, and welcome to the first let's turn to financial Q2, 2020, <unk> earnings Conference call.
At this time all participants are in listen only mode. Later, we will conduct a question answer session and instructions will follow what dot time.
If anyone should require assistance during the conference. Please press Star Zero honor Touchtone telephone.
As a reminder gets conference call is being recorded.
I would love to turn the conference over to your host Mr., Tony Rossi financial profile.
Thank you Katrina good morning, everyone and thank you for joining us today for first Western financial second quarter 2020 earnings call.
Joining us from first Western's management team or Scott, Wiley, Chairman, and Chief Executive Officer, and Julie core Camp Chief Financial Officer.
Well, we use a slide presentation as part of our discussion this morning.
If you've not don'ts already please visit the events and presentations page first Western's Investor relations website to download a copy of the presentation.
Before we begin I'd like to remind you that this conference call contains forward looking statements with respect to the future performance and financial condition of first western financial that involve risks and uncertainties, including the impact of the cobot 19 pandemic various factors could cause actual results to be materially different from any future results expressed or implied by such forward looking statements.
These factors are discussed in the company's FCC filings, which are available on the company's website.
I would also direct you to read the disclaimers in our earnings release, an investor presentation.
The company disclaims any obligation to update any forward looking statements made during the call.
Additionally, management may refer to non-GAAP measures, which are intended to supplement but no substitute for the most directly comparable GAAP measures. The press release available on the website contains the financial and other quantitative information to be discussed today. There's also a reconciliation of the GAAP to non-GAAP measures with that I'd like to turn the call over to Scott Scott.
Alright, Thanks, Tony and good morning, everybody.
Before we get into a discussion of our second quarter results I'd like to take a moment to think all our colleagues at first western further extraordinary efforts during this challenging time.
Throughout this crisis, we've been able to maintain exceptional customer service levels and continued the strong momentum, we haven't or business development efforts.
It's a testament to the culture that we built here first western and I'm extremely proud of the way our team consistently find ways to overcome obstacles and deliver for all our stakeholders.
Now turning to our results.
In our IPO two years ago, we said that we thought we were at an earnings inflection point, where the operating leverage built into our business model could produce strong earnings gains, which played out in 2019 and has accelerated year to date and 2020.
In the second quarter, we generated net income of 8.7 million or $1.10 in earnings per share.
Which represents a record level of profits for the company.
It was an exceptional quarter.
And one that reflects the inherent advantages that we have in managing through the impact of cold with 19 pandemic.
From a defensive standpoint, unlike a lot of banks our size, we don't do much small business lending where it appears the pandemic is having the greatest impact.
And we have minimal exposure to more stressed industries, such as hotels and restaurants. We also underwriter loans with conservative criteria that requires low LTV high debt service coverage ratios and personal guarantees in many cases.
Our client base consists of a lot of knowledge based companies and workers, meaning they have been able to shift to a work at home environment without much disruption to their business.
Accordingly, we continue to see.
Relatively normal levels of loan deposit and investment management activity from our clients.
As a result, we've seen generally stable asset quality during the pandemic.
And our projected losses remain relatively low.
From an offensive standpoint, the investments we made in expanding our residential mortgage platform over the past few years have enabled us to capitalize on the strong demand for refinancings.
As a result, we had a record quarter mortgage originations.
And net gain on sale of mortgage loans.
This helped drive a 57% increase in our gross revenue compared to last quarter.
And substantial increase in earnings.
One of our key priorities and gaining scale to enhance our operating efficiencies and improve our earning powers and we had exceptional balance sheet growth in the second quarter due to a combination of factors.
We've been exceptionally productive with the P.P.P. program, which has allowed us.
To support our existing clients as well that many new attractive clients.
Given the nature of our clientele, we're seeing many stronger borrowers wanting to capitalize on investment opportunities that they're seeing in the current environment.
Helped us to generate approximately $70 million in organic loan growth outside of PPP loans.
The final contributor was the branch purchase an assumption agreement we completed in May.
By completing the transaction ahead of the scheduled timeline, we were able to reduce the deposit premium that we paid by a full 1%, making the transaction even more attractive from a financial standpoint.
Even with the accelerated timeline, we're able to complete an updated review of the loans associate with the branches, we added to determine the impact they had experienced from the pandemic.
As a result was result of that review, we excluded the other adversely graded loans for the final transaction.
The integration has gone very smoothly and loan and deposit balances have remained very stable since the closing.
We're on track to complete the plan branch consolidations in August at which point, we'll be able to realize more of the projected expense synergies from this transaction.
Moving to slide four will provide additional detail on our earnings this quarter.
We had approximately 325000 and acquisition related expenses this quarter related to the branch acquisitions.
When these expenses are excluded our net income was 8.9 million or $1.13 earnings per share.
Turning to slide five we want to provide a couple of data points regarding the economic trends, we're seeing in our Colorado markets.
This information comes from the opportunity insights economic tracker by way of their website tracked the recovery Dot com.
Relative to January before the pandemic started to hit the United States consumer spending in Colorado was down about 37% through mid April but subsequently recovered to just 10% 11% down at the beginning of July.
Similarly, small business revenue in Colorado was down 39% at the beginning of April but rebounded to a decrease of 19% at the beginning of July.
So we're seeing generally improving trends in our markets, it's business as adjusts to the new normal.
Which should continue to improve is more businesses and investors adjust.
Turning to slide six looked at the trends in our loan portfolio.
Our total loans held for investment increased 382 million or 36.6% from the end of the prior quarter.
192 of <unk> million of the increase was attributable to P.P.P. loans, well, we added 124 million through the branch acquisition.
The remaining 66 million was attributable to organic loan growth outside of P.P.P. loans.
We had loan production.
311 million in the quarter.
With 192 million coming from PPP.
In the remaining $19 million coming from new business development outside of this program.
This was partially offset by 72 million and payoffs and Paydowns.
The Pvp loans in the loans added through the branch acquisition of meet our portfolio more diversified and lowered our concentration one to four family residential mortgage loans.
One to four family loans declined from 29.4% of total loans held for investment at June Thirtyth from 39.6% total loans at the end of the prior quarter.
Moving to slide seven will take a closer look at our deposit trends.
Our total deposits increased 228 million or 19.4% from the end of the prior quarter.
The branch acquisition contributed 65 million to total deposits well PPP related balances contributed about 62 million to our quarter end balances.
Almost all the growth we had deposits this quarter came in our lower cost noninterest bearing.
In money market categories.
As a result, we continue to see significant improvement in our deposit mix.
Over the past year non maturity deposits have increased from 89.
Increased to 89.1% from 82.4% of our total deposits.
Turning to trust and investment management on slide eight or total assets under management increased 116 million from the end of the prior quarter, primarily due to improved market conditions.
Now I'll turn the call over to Julie for further discussion or financial results Julie.
Thank you Beth.
Slide nine you summarize our participation in the PDP program and included its impact on various line items and metrics in the second quarter.
We originated 191.7 million a blend and added 281, new relationships through this process.
We have earned a total of 5.7 million MTV from the SDK and are amortizing, both the loan fees and the loan origination expense over the 24 men I said light that these loan.
Should these lumpy forgiven at an earlier time than we will accelerate the recognition of the associated fees and expense.
In addition to the impact on our loan balances we estimate that at June Thirtyth, We had 62.4 million can keep he related deposit balances.
We also had 204.3 million and borrowings from the TTP liquidity Society that were used to fund the TPG alone.
These lines contributed approximately 600000 of net interest income this quarter.
Backing out the impact of the interest income and interest expense associated with the PBP program. Our net interest margin would have improved to 3.22% and the second quarter.
We had 2.9 million of deferred loan origination expense related to PPP around which served to reduce our salaries and benefits expense this quarter.
As I mentioned earlier this expense will be recognized over the 24 month expected life is alone or on an accelerated basis at the lens I forget them.
The net income remaining to be recognized its 2.4 million related to PPPC.
Yes, the a less origination expense.
Turning over to slide 10, well, let that our gross revenue.
As Scott mentioned, we had an exceptional quarter of revenue growth, but increases coming in both net interest income and non interest income.
Turning to slide 11, well look at details behind that revenue growth and look at the trends and the net interest income and margin.
Our net interest income increased 1.9 million or 20.9% from the prior quarter.
Approximately 700000 of the increase is due to the contribution of the branch acquisition.
Another 600000 was due to the P.P.T. land and the remainder was due to higher average loan balances, resulting from our organic loan growth.
Our net interest margin declined four basis points to 3.10%, primarily due to a decline in earning asset yield.
This is partially offset by 48 basis point decline in our cost of deposits.
We believe we continue to have some opportunities to bring deposit costs down well repricing and our loan portfolio has largely occurred which should help benefit our margin going forward.
We also saw a nice pick up in Martin towards the end of the second quarter.
Excluding the impact of TPP, our net interest margin in the month of June was 3.27%, which is up from 3.16% in the month of me.
So the trend points. This unexpected expansion in our margin excluding the impact of the PPP program.
Turning now to slide 12, our noninterest income increased 98.6% from the prior quarter.
The increase is primarily due to the record quarter of net gain on mortgage loans sold that we had.
Aside from that impact we had an increase in risk management insurance fees that offset a slight decline and I trust and investment management fees.
On slide 13.
Well show you that we had provides some additional detail on the mortgage operation.
We had record level of production in the quarter with approximate approximately 344 million of origination most of which was originated for sale.
This is largely driven by demand for refinancing, which accounted for 73% of originations in the second quarter.
With the increased volume and improved market mortgage sale margin, we saw a significant spike in the profitability of our mortgage operation.
We generated 8.3 million and net income on revenue of 10.2 million in the second core.
Turning to slide 14 in our expenses, our net non interest expense decreased 13.7% from the prior quarter. The decrease was attributed to the deferred loan origination expense that I mentioned earlier.
Our second quarter results also include approximately 325000 and acquisition expenses related to the branch acquisition.
Hi, this strong growth we had in revenue we saw an acceleration in our improvement and efficiency ratio, which was 48.1% in the quarter.
Matt mentioned, we're on track for the branch consolidation in August.
Following those consolidations, we expect our quarterly run rate for non interest expense to be in the range of 15.3 million to 15.7 million.
Turning to slide 15, well look at our asset quality.
Our nonperforming assets increased by 1 million, but declined as a percentage of total assets to 67 basis points from 82 basis points at the end up last quarter.
Once again, we continue to see very low level of losses in the portfolio and had minimal charge off this quarter.
We recorded a 1.1 million mark on the land attitude of branch acquisition as we took larger credit marks against the modified bonds that we acquired.
Turning to slide 16.
He we recorded 2.1 million in provision expense in the second quarter, which primarily reflects a downgrade any economic forecasts, we use our allowance methodology as well as additional reserves for modified loans to reflect the ongoing impact of echo that 19 pandemic.
This increase our allowance to adjusted total loans, 2.93% when TP loan PPP land and acquired phones are excluded.
Turning to slide 17, we've provided a summary of our loan modifications.
As of June Thirtyth, we had 98 modified loans, representing total loan balances of 177 million 31 million of which was added to the branch acquisition.
The pace of deferral requests has slowed considerably with each passing month and as at the end of June we are only providing modifications on a very limited exception basis.
The modifications are an extra of adjustments with the largest component being loans, where we have extended the maturity date and provided a payment deferral.
Many of the modifications that we made where for 180 days, while the modified loans. We acquired were primarily for 90 days.
Turning to slide 18, we have some additional information on our loan modifications.
76% of our loan modifications are commercial loan, but the other 24% being consumer land.
In terms of C and I loans, our largest concentrations of modified loans are in real estate and rents on leasing sector and restaurants and bars.
In terms of theory learned our largest concentrations are in office retail and strip center properties.
The average size of the modified loan is 1.8 million and where loans to that loan to value is applicable they have an average LTV at 48% and an average seasoning of 2.5 years.
Since the crisis accelerated we implemented a plan to increase monitoring and oversight of our borrowers.
Peculiarity those with modified loans. This has helped us to identify any emerging issues as early as possible. We're now collecting current financial data and cash so forecast to inform our decision and providing extensions to modification, but it's too early at this point to make any projections as to how many of the bars full required an extension.
Before I conclude I would like to mention that we have updated the data for a number the slides I'll be included in our earnings back last quarter, but given that the information hasn't changed a great deal we have put them in the appendix this quarter.
Now I will turn the call back to you Scott.
Alright, Thanks Julie.
Turning to slide 19, I wanted to provide some comments about our near term outlook.
Well the ongoing pandemic creates a great deal uncertainty, we believe we're well positioned to see a continuation of our strong performance in the second half of the year.
Our asset quality remains strong.
We have a healthy loan pipeline should continue to drive organic loan growth in the next couple of quarters.
Works demand were being strong which should lead to another good.
Quarter of mortgage production gain on sale income in the third quarter.
As Julie mentioned, we expect to see some expansion in our net interest margin.
And our U.M. is trending higher as the market recovers from the depth the pandemic.
So we should see positive trends in trust and investment management income as well.
We are on track to start realizing the final synergies from the branch acquisition and the combination of all these factors should result in a strong level of earnings for the second half of the year further increases in our tangible book value per share in additional value being created for our shareholders.
With that we're happy to take your questions Katrina can you open up the call. Please.
Absolutely, Sir ladies and gentlemen, if you have a question that define please press the star and then the number one key on your Touchtone telephone. If your question has been answered all your wish or move yourself from the Q. Please press the pound.
We do have a question for Tom Brady Gailey.
Of KBW. Your line is now open.
Hey, Thanks, good morning, guys.
Britain.
So when you look at loan growth even excluding.
The sevens deal.
Still big number for you guys 66 million, but maybe just expand a little bit on where that came from and maybe there's a little more color on how you're thinking about kind of core loan growth for the balance of the year and then into next year.
Yeah, you know, it's it's interesting Brady and the great recession.
10, or 12 years ago, it really felt like our clients when hit under a rock for two or three years and and we really saw very cautious.
Roads to getting through the recession.
Here, we're seeing something really different where people just.
Shifted their location, where they're doing their work and they continue to do things a lot of them feel like this is a time of opportunity from that last long recovery.
And and they feel like they.
Can and should keep going and doing things. So so we've seen continued demand in fact, I would say we've seen accelerated demand.
Which has led to these good balance sheet growth numbers that we saw a I think your comment is right on in terms of you don't get to understand this financial performance you need the breakout the organic growth and the impact of of PPP and.
And and the Sevens branch acquisition, you have the interesting thing about.
Organic and the seventh pieces will of course continue on the PPP, maybe that 200 million all goes away. It forgiveness in the second half of the year, but we've seen all these new client opportunities and new new clients that have come in through PPP that I think are going to continue to create organic growth opportunities for us in this.
Second half of the here.
Okay.
Great.
Next I'd like to ask about the provision it ticked up here in the second quarter, though the reserves now on an adjusted basis 93 basis points up how do you think about how the provision will trend up from here I mean I know.
As or not.
Hey, Cecil adopted.
Thats different than most but.
Should we expect the provision due to continued to remain elevated in the back half year similar to what we saw onto Q.
Well, it's really let me take a stab at that and then you could provide some more color. Please you know we haven't seen really any signs of credit deterioration.
Both when you look across the portfolio or at the micro level and in this is in spite of increased monitoring and.
Tighter.
Interaction with up between the lenders and our clients. So you know we haven't had a reason to put more it into the reserve other than.
Our general concern that Julie mentioned in her comments about the deteriorating economic condition. So we increase for that and then that we put in a significant reserve related to the cobot modifications again, not because we see a concern but just to be conservative on that I would think that we're going to look to country.
You need to build the reserve I'm in the second half of the year, but we really have to wait and see how the credit trends the economic trends of the cobot deferral trends unfold.
Got it other color you would add to that truly.
And I think you covered us today, you know where to very closely monitoring economic trends and all of our major markets, where do you when deep dive.
Scott mentioned in his remarks on the credit portfolio and and specifics I called that might have to end or the higher.
Impact areas from covered 19.
So that's all going to be driving our future allowance level, and well well well kind of stuff that has has things change and or as we get more information in that area.
Right.
The next question is on capital you know with all the growth we saw.
Yes on the acquisition of from.
Your Tc ratio was a little.
At 6.3% it said.
Any thoughts just on your capital base is regime.
Some form of non common capital something you guys would consider at this point.
She would you want to speak to this one Julie sure. So you know with the the branch acquisition, we had anticipated that capital levels would reduce I'm you know we added additional assets.
Corresponding with that closure as well as just that growth that you and noting and Brady and <unk> and the balance sheet. So.
We also expect that the additional earnings coming from that acquisition along with the strength in the earnings at the bank will be building our capital levels in the second half a year. We've completed that said that raised in the first quarter of $8 million than we injected capital into the bank relating to that and the branch acquisition.
Think we've consistently said that we thought we had enough capital.
Adequate capital to get through 2020, and if we content continue to see growth in the balance sheet at the current levels, depending on the impact of the recession and all the other I know on Tonight I think that we believe this is still trail.
<unk>.
And well I think also when we look at the capital ratios were backing out the PPP loans.
Because we're not required to help whole capital for them, we funded 100% of them through the.
So.
Well the PB.
<unk>.
Yeah, I wasn't sure how many piece where that well [laughter], yeah, and yes, and so that for balance sheet purposes. That's.
Not additional levers we have to cover.
And then filing for me you know I saw the FCC settlement.
200 Grand anything.
To be concerned about there or any other.
Impact.
One of the financial impact.
We don't think so this was an issue that we discovered in 2017, we assess the plane impacted determined there wasn't.
Any net playing impact on the count.
Yeah, not and then subsequent to that we've.
Replaced the leadership and the compliance team that was.
Are there at the time.
The FCC did a routine.
Examination in late 2019.
And so all that and.
Raised that is 'cause it issue and it was concluded with the settlement here a couple of weeks ago.
Alright, great sexual this August.
Thank you.
Again, ladies and gentlemen, if you have a question at this time. Please press the star and then the number one key on your Touchtone telephone.
Next question you have Gorgon Maguire from Stephens. Your line is open.
Hi, good morning.
On a gordon.
Congratulations on the core.
Oh.
I may have missed your comment Mr. Comment did you give spot deposit rates for end of June.
Hi did not get spot deposit me, but I can.
And that the spot the other day was 30 basis points.
Or 32 basis points, excluding PPP deposits.
And so if you're trying to compare that to what our March spot deposit rate was at that 0.48 40 basis points.
It can you can you help us think about the cadence of the deposit costs I guess beyond the third quarter or how far do you think you can bring them lower.
Well I think from a and current balance sheet perspective again, excluding PPP deposits that are June spot rate is a pretty good indicator, but that was still trending down as you can see from the number. They just gave you from the beginning of the quarter. So I think we should still.
See a slight decline and our cost of deposits.
In the third quarter doesn't staff levels out quarter over quarter.
Okay.
And do you have what yield you acquired loan portfolio came over I'm curious are.
Sure. So if there's any kind of benefit or are your debt yield differential that I need to think about for the next quarter.
Sure so and when we look at our kind of core excluding purchase.
Let o'neil I'm in the second core does for about 3.38%.
The acquisition acquired land had an average rate of 4.09%, so a little bit higher than our our core Buck.
And then excluding TPP land there at for 45, so no I think it will give us a little but now that they and on that the path, but the yield on land.
And then did I get it right 15.3 million to 15.7 million expenses post consolidation.
I guess.
What does that assume for mortgage and commission levels.
And well our mortgage commissions or what held within our revenue line of net gain on mortgage health. It comes out of there.
Okay.
And it does have a little bit of growth in the mortgage.
Area for you know operations salaried individual but not significant okay.
I appreciate it thank you.
Next question, we have Ross haberman from although Leach investments your line is open.
Good morning, Scott Scott how are you.
All told me this morning could you talk.
On the sale of.
What do you see there any trends is coming down.
Compared to say three or six month through six months ago.
Sure. So this is a a great question you know we talked.
In the Q1 release.
About the disconnect that happened from mid March until early April between the mortgage.
Barkat secondary markets <unk> sales.
Pricing.
And the asset that the mortgage back.
Mark is that we use for hedging so our long position in the mortgages that we had in March on the books.
Disconnected from the hedge position that we were short or that was as we talked about then caused by the.
Hundred 50.
Emergency recalled that the fed did in mid March and then than the significant purchases at the fed need.
And so we had a 4 million dollar loss in Q1 that it just mortgages.
We think we recovered about 2 million to that it's complicated between the different pricing, but I think we recovered about 2 million of that 4 million in Q2.
So it's interesting if you looked at our earnings story and if that disconnect had not happened at the end of March.
And you know we'd have 4 million more in pre tax earnings in Q1.
Perhaps 2 million lesson in pre tax earnings in Q2.
Having said that we have seen.
Margins recovered at normal levels and in fact, a improved we've been able to improve our margins in Q2 and the mortgages. So.
Oh.
Yes.
Are you keeping any of those loans or.
Or are you still owe them basically.
We've been consistently.
Working to keep mortgages that are a good fit for us from a client standpoint, and then we'll sell or the the great majority of them you have the data Julian Kim in core Q, we originated for sale 344 million and 37 million I'm going to portfolio.
And just.
Final question.
At West Coast money management business that you were going to sell a quarter or two ago, what's the status of that.
Today and going.
Going forward.
Yes, that's the of fixed income portion of first Western capital management, and we have not completed that transaction. Yet we are looking to find a better home for them and I will continue to work on them.
Thanks, guys. They stay healthy Oh, probably takes you to us.
Next question, we have Kevin Swanson from Hovde Group Your line is open.
Hi, guys.
Hi, good morning, Kevin.
Within the acquired portfolio do you anticipate any any run off their de risking of that portfolio.
So from May 15th to June Thirtyth.
We actually saw some growth in both the loan and deposit side of that acquisition.
So you know initial run off hasn't really been a problem. So far you know the next challenge will be when we close.
Two of the three branches.
We have been able to retain Vicki.
Client service people from the legacy Simmons team in fact, you don't put them into positions, where we think they're going to be really productive for first western so I would say on the loan side.
We expect to have really good retention and in fact, you know good growth from that team going forward.
The deposit side, I think there's likely to be some run off of small deposits.
Good because it seems you know they had more of a retail.
Deposit.
Oh composition them, what first western has and I think you know just moving the locations there'll be some break is there, but I don't expect it to be material in terms of overall numbers or profitability.
Great. Thanks, and then you know across the industry.
Seems like mortgage had performed quite well, but.
The results this quarter for you guys is something something else entirely a is there anything you know maybe broadly or even specifically you can kind of point to.
That was so successful this quarter or just wants it can become combination of a bunch of moving parts. Just curious on how you're going to think that business performed and what you think the strengths where.
Well when we bought that two and a half years ago now a we thought that there was an opportunity to strengthen their infrastructure and and make it so that they could be a handle more volume and we talked about at the time, making some considerable.
Efforts in that area with obviously paid off a big time in the first half of this here as I said a minute ago I think it's a little misleading because of this has disconnected I mean, the first quarter was very strong for US just didn't show up because we had a 4 million dollar loss embedded in the games in the in the first quarter it.
And the second quarter's a little bit overstated in the same way because it's a $2 million recovery that we wouldn't expect to get in a normal environment and at the time they talked about this in the Q1.
Earnings call to that.
Our mortgage team was saying is a once in a lifetime disruption in the market that they've never seen anything like it and so I.
I think that we're going to see a more normal performance going forward here you know we think that.
But the volumes are likely to continue at strong levels, perhaps not at the current level because of the refinancing portion of it but we have very strong.
Teams now we continue to add strong.
Mm close so I think that you know the the core production for.
[music] Bonnie purchases is going to continue to be a strong business fourth I was talking to our Jackson hole team. This morning for a periodic review I do with them and you know there talking in these resort markets about all the folks moving to town out of the bigger urban markets and we see that in each of our reserve.
Sure Mark as we see it here in Denver, and we see it in a in a rather front range in Arizona markets. In you know all that feeds into the mortgage.
Business as well as supporting the underlying organic growth at the company.
Okay. Thanks, guys.
This concludes our question and ancillary fashion I would now like to turn the call back to management for any closing remarks.
Okay well.
Thank you everybody for dialing in as I said at the beginning of the call. Today. We had you know our initial public offering said that we thought there was a real.
Earnings inflection coming and it's great to see that playing out here into 2020, you know we've made a number of investments over the past 12 month, we just talked about the mortgage one a you know the P. P cross sales opportunities going to be very strong in the second half of the year we've added a.
Several new offices that are expenses for us that are just maturing now into being contributors.
That includes the new Brookfield office, the new loan Free Office Vale, Yes, then.
No it now or do Rhino River, North the Denver office.
I think that with all that we continue to see opportunity to upgrade our products and services in the skills of our team we're watching a big first western way sales training next week to retrain all of our people in a in a specific sales methodology that we use here we just got.
Earlier this week I knew net promoter score from our clients, which continues to be in the mid Eightys, which is an extraordinary score for a financial institution and Weve wants a new trust where are you bank campaign, highlighting the difference between a community oriented bank like first western and similar to any competitors that we compete.
With the other day out so we're optimistic that we can.
Continue with strong results like we posted.
This quarter and year to date I'm sure appreciate the interest in support of all of you. Thanks and have agreed to.
Ladies and gentlemen. This concludes today's conference. Thank you for your participation and have a wonderful day you may all disconnect.
[music].