Q3 2020 CVB Financial Corp Earnings Call
Do you really said it.
Citizens business Bank earnings Conference call. My name is Kate and I'll be your operator today at this time all participants are in listen only mode. Later, we will conduct a question and answer period. Please note. This call is being recorded I would now like to turn the presentation over.
To your host for todays call Christina Carrabino you May proceed.
Thank you Kate and good morning, everyone. Thank you.
Thank you for joining us today to review our financial results for the third quarter of 2020. Joining me. This morning are Dave Prager, Chief Executive Officer, and Allen Nicholson Executive Vice President and Chief Financial Officer.
Our comments today will refer to the financial information that was included in the earnings announcement released yesterday to obtain a copy. Please visit our website at www Dot CB bank Dot com and click on the investors tab.
Before we get started let me remind you that today's conference call will include some forward looking statements. These forward looking statements relate to among other things current plans expectations events and industry trends that may affect the company's future operating results and financial position such statements involve risks and uncertainties and future active.
Ladies and results may differ materially from these expectations among.
Among other risks the ongoing COVID-19 pandemic may significantly affect the banking industry and the company's business prospects the ultimate impact on our business and financial results will depend on future developments, which are highly uncertain cannot be predicted including the scope and duration of the pandemic the impact on the economy, our customers and our best.
As partners and actions taken by governmental authorities in response to the pandemic. The speakers on this call claim the protection of the Safe Harbor provisions contained in the private Securities Litigation Reform Act of 1995 for a more complete discussion of the risks and uncertainties that may cause actual results to differ materially from our forward.
Looking statements. Please see the company's annual report on form 10-K for the year ended December 31st 2019, and in particular, the information set forth in item one a risk factors therein.
Now I will turn the call over to day Prager Dave.
Thank you Christina and good morning, everyone and thank you for joining US again this quarter, we reported net earnings of $47.5 million for the third quarter up 2020, or 35 cents per share.
Represented our 174th consecutive quarter of profitability. We also declared an 18 cents per share dividend for the third quarter of 2020.
This represented a 124th consecutive quarter of paying a cash dividend to our shareholders.
Our net earnings of $47.5 million compared with $41.6 million for the second quarter of 2020 and $50.4 million for the year ago quarter earnings per share of 35 cents for the third quarter compared with 31 cents for the second quarter and 36 cents for the year ago quarter.
Through the first nine months of 2020, we earned $127.1 million compared to $156.5 million for the first nine months of 2019.
Diluted earnings per share were 93 cents for the nine month period ended September 32020, compared with $1.12 cents for the same period in 2019.
Our pretax pre provision income was $66.9 million for the third quarter, which was $3.4 million lower than the prior quarter and $5.6 million lower than the third quarter of 2019.
Did not have a provision for credit losses in the third quarter as our board forecast of macro economic variables at quarter end was generally consistent with the prior quarter and the asset quality of our loan portfolio did not materially change from the second quarter, we will discuss our allowance and our economic forecast in more detail later in this call.
Okay.
Now I'd like to discuss our deposits and loans.
Loans at September 32020, our noninterest bearing deposits totaled $6.92 billion compared with $6.9 billion for the prior quarter and $5.39 billion for the year ago quarter non interest bearing deposits were 62% of total deposits at the end of our third quarter.
Compared with 63% for the prior quarter and 61% for the year ago quarter.
Timber 32020, our total deposits and customer repurchase agreements were $11.7 billion compared with $11.5 billion at June Thirtyth, 2020, and $9.2 billion for the same period a year ago.
Average non interest bearing deposits were $6.7 billion for the third quarter of 2020, compared with $6.2 billion for the prior quarter and $5.2 billion for the year ago quarter.
Our average total deposits and customer repurchase agreements of $11.4 billion for the third quarter grew by $930 million or 8.9% from the second quarter now moving on to loans.
Total loans increased by $5.3 million from the end of the second quarter SP, a paycheck protection program loans grew by $4 million and excluding PPP loans loans increased by $1.3 million as a $63 million increase in commercial real estate loans was offset by a $24 million.
The decrease in construction loans, a $12 million a decrease in single family residential loans, a 12 million dollar decline in municipal financing loans and a $24 million decline in sea Eni loans. The cnine loan balances were impacted by a reduction in line utilization from the end of the second quarter the bank's total.
Unused loan commitments increased by approximately $72 million from June Thirtyth to September Thirtyth and the overall line utilization rate declined from approximately 48% at June 32020% to 46% at September Thirtyth 2020.
As of September Thirtyth, 2019, total loans were $913 million higher but when the PPP loans are excluded total loans declined by $188 million or 2.5% over the prior year. This decrease in loans was generally across all loan segments with the exception of it.
53 million dollar increase in commercial real estate loans.
Average loans for the third quarter increased by $335 million compared with the second quarter of 2020 and increased by $887 million compared with the year ago quarter.
During the third quarter of 2020, PPP loans had an average balance of $1.1 billion.
Bear compared to $670 million for the second quarter.
The more than 4000 PPP loans, we originated 387 of our borrowers representing $439 million in loans have made submissions to the bank in order to request forgiveness approach.
Approximately half of those loans requesting forgiveness are between $150000 and $350000 in loan size with the remaining 50% comprised of loans that are greater than $350000 to date, we have not processed forgiveness request on any of the 1360 loans.
Originated under 100.
100, 150000 dollar level.
Of the 387 forgiveness applications, only 26 loans, representing $17 million have been submitted to the FDA for review.
Net interest income before provision for credit losses was $103.3 million for the third quarter compared with $104.6 million for the second quarter and $108.2 million from the year ago quarter. The one piece.
The $1.2 million decrease in net interest income from the second quarter was due to the $1.2 million decrease in loan interest income before.
The $4.8 million a decrease in net interest income from the prior year was primarily due to a $4.6 million decline in loan interest income.
Our tax equivalent net interest margin was 3.34% for the third quarter of 2020, compared with 3.7% for the second quarter and 4.34% for the third quarter of 2019, when the impact of Pp PD Lones discount accretion on acquired loans and nonaccrual interest paid is excluded.
The adjusted tax equivalent net interest margin was 3.18% for the third quarter down from 3.42% from the prior quarter and 4.02% for the year ago quarter.
Our net interest margin was negatively impacted during the third quarter due to the excess liquidity that resulted in approximately $1.5 billion on average on deposit at the Federal reserve, earning just 10 basis points. The net interest margin in the third quarter would have been about 45 basis points higher without the one point.
$5 billion on deposit at the Federal Reserve.
Loan yields were 4.47% for the third quarter of 2020, compared with 4.77% for the second quarter of 2020, and 5.23% for the year ago quarter. This decline was primarily due to the impact of the federal reserve's rate decreases and the decline in discount accretion income from acquired.
Total interest and fee income from PPP loans was $9.5 million in the third quarter compared to $8.5 million in the second quarter, excluding the impact of PPP loans interest income related to purchase discount accretion and nonaccrual interest paid loan yields were 4.37.
Per cent for the third quarter seven basis points lower than the second quarter of 2020, and 44 basis points lower than the third quarter of 2019.
Our cost of deposits and customer repurchase agreements for the third quarter were 11 basis points and our total cost of funds was also 11 basis points, our cost of funds declined by two basis points from the prior quarter and by 12 basis points from the third quarter of last year.
Now moving on to non interest income.
Noninterest income was $13.2 million for the third quarter 2020, compared with $12.2 million for the prior quarter and $11.9 million for the year ago quarter. The third quarter of 2020 included a 1.7 million dollar gain from the sale of a bank owned building related to a banking center that we closed and consolidated during.
In September we.
We generated $1.6 million in fees from interest rate swaps during the third quarter, which was our second highest quarter in history, the highest quarter in history was a $2.2 million of fees in the second quarter of this year.
Deposit service charges grew modestly from the prior quarter by $161000, but were down by $863000 from the prior year due to the higher earnings credits generated by the significant increase in our customers' noninterest bearing checking account balances.
Now to expenses.
Noninterest expense for the third quarter was $49.6 million compared to $46.4 million for the second quarter of 2020 and $47.5 million for the year ago quarter.
Noninterest expense for the third quarter of 2020 included a $1.1 million.
One included $1.1 million for a special Thank you award and paid in the third quarter to qualifying associates for their commitment and effort. During these unprecedented times salary and benefit expense also increased over the prior quarter by an additional $900000 due to the lower net deferred loan costs related to loan originations that were.
Elevated in the second quarter from the origination of ERP loans the court.
The quarter also included a $700000 write down in value for one Oreo property assessed.
Assessment expense increased by approximately $800000 compared to both the prior quarter and the third quarter of 2019.
As the bank fully utilized it's FDIC assessment credits from the third quarter of 2019 through the second quarter of 2020.
Noninterest expense totaled 1.44% of average assets for the third quarter compared with 1.48% for the second quarter and 1.68% for the third quarter of 2019, our efficiency ratio was 42.57% for the third quarter of 2020 compared with 39.75%.
For the prior quarter and 39.6% for the third quarter of 2019.
Now turning to our asset quality metrics at quarter end nonperforming assets defined as nonaccrual loans plus other real estate owned were $16 million compared to $11.7 million for the prior quarter and $16.1 million at September 32019.
As of September 32020, we had Oreo of $4.2 million.
At September 32020, we had loans delinquent 30 to 89 days of $3.8 million compared with $2.6 million at June 32020.
Classified loans for the third quarter were $72.7 million, a $13.6 million decrease from the prior quarter.
We will have more detailed information on classified loans available in our third quarter form 10-Q.
Through October nine 2020, we have granted temporary payment deferments, primarily of principal and interest for loans in the amount of $69 million for 33 borrowers. These deferments were primarily for 90 days with 89% of these loans being pass rated.
27 of these loans have received the second deferment and the remaining six loans. Our first deferments at September Thirtyth June 2020, commercial real estate loans on retail properties totaled $771 million or 9% of total loans, 1% of these loans are under firm and only $7 million of these loans.
Our classified ads.
At origination the loans on retail properties were underwritten with loan to values, averaging approximately 53% is important to note that 53% of these loans were also originated prior to 2017.
We also have $67 million of commercial real estate loans for hospitality properties, which is less than 1% of total loans. None of these loans are classified but 16% of these long drawn deferment commercial and Sta loans to.
The customers in the hotel restaurant Entertainment retail trade or recreation industries represented approximately $96 million in loans at September Thirtyth, 2020, or approximately 1% of total loans $1.6 million of these loans are classified and only $1.4 million or on deferment.
I will now turn the call over to Allen Nicholson to discuss our effective tax rate, our allowance for credit losses capital levels and liquidity Alan.
Thanks, Dan Good morning, everyone.
Our effective tax rate was 29% for the third quarter and for the year to date.
Our allowance for credit losses decreased by $114000 in the third quarter as a result, the net loan charge offs, our economic forecast as it relates to the key macroeconomic variables that we model for our allowance remain mostly stable from the end of the prior quarter our.
Our ending allowance for credit losses was $94 million or 1.28% of total loans when excluding.
Including the $1.1 billion in PPP, though.
This $94 million reserve represents approximately 130% of our classified loans or 68% of our total net classified and deferred loans.
In addition to the allowance for credit losses, we have $35 million in remaining fair value discounts from acquisitions.
As a result, the decline in economic activity due to the pandemic, we recorded $23.5 million in provision for credit losses. During the first two quarters of 2020.
Our economic forecast continues to be a blend of multiple forecast produced by Moodys with.
With California slowly reopening the economy, and having an unemployment rate greater than 11%. Our forecast includes a partial waiting on the downside economic forecast scenarios communities. However.
However, the baseline forecast continues to represent more than 50% weighting in our multi weighted forecast scenario.
The U.S. baseline forecast assumes GDP will increase by 27% in the third quarter, 2.9% in the fourth quarter, and then grow by 3.5% in 2021 and 5% in 2022.
The unemployment rate is forecasted to be 8.9% in the third quarter than stay at an elevated level over 8% through 2021 before declining to 6.4% in 2022.
Now turning to our capital position for the first nine months shareholders' equity decreased by $12 million to $1.98 billion.
The decrease was primarily due to a $92 million dollars stock repurchases during the first quarter.
$73.3 million in cash dividends.
Offset by net earnings of $127.1 million and a $23.5 million increase in other comprehensive income from the tax effected impact of the increase in market value of available for sale Securities.
Our overall capital position continues to be very strong our tangible common equity ratio was 9.8% at the end of the third quarter and.
And our regulatory capital ratios are well above regulatory requirements to be considered well capitalized.
September Thirtyth, our common equity tier one capital ratio was 14.6% and our total risk based capital ratio was 16.1%.
We are well positioned with a base balance sheet that is highly liquid funded almost entirely with core deposits and the availability of significant off balance sheet sources of liquidity.
At September Thirtyth 2020, we.
We had $1.34 billion on deposit at the Federal reserve during the third quarter, we started to deploy some of the excess funds into security purchases, which totaled $721 million. These mortgage backed securities are expected to yield approximately 1.2%.
In the current low rate environment with the federal reserve purchasing a significant amount of mortgage backed securities. We will continue to limit how much of the excess liquidity, we invest in such low yielding securities.
At September Thirtyth 2020, our combined available for sale and held to maturity investment securities totaled $2.78 billion, a $494 million increase from the second quarter and a $509 million increase from the September 32019.
At quarter end investment securities available for sale totaled $2.2 billion.
Folio had a pretax unrealized gain of $55.3 million at September Thirtyth 2020. This.
This portfolio of securities comprised primarily of highly liquid government agency mortgage backed securities.
At quarter end, we had $25.8 million in sub debt and $10 million in zero interest advances from the FHLB.
The bank has available lines of credit exceeding $4 billion, most of which is secured by plates loans.
I will now turn the call back to Dave for some closing remarks. Thanks.
Thanks, Allen our bank remains strong and financially sound and has been a consistent and stable business partner over a variety of economic cycles. During the past 46 years as previously discussed we have been supporting our employees communities and customers during the pandemic through various methods, including providing thank you award to our associates.
The funding of over $1.1 billion in paycheck protection loans participating in and closing our first main street lending program loans and contributing financially to our most impacted communities through charitable donations.
During these difficult times, we continue to prioritize the health and safety of our associates customers and other business relationships as well as being a good partner and solid source of strength to our customers and communities as.
As a result of the pandemic and in order to further protect the health and safety of our associates. We have made the decision to cancel our annual wars celebration in holiday Party. This party about a longstanding tradition of our bank and it was a difficult decision thankfully the board agreed to reallocate a portion of the anticipated cost of the event to support our communities we have identified.
Multiple food banks within our geographic territories and made the decision to donate the money to those that needed the most.
While some of our geographic markets remain under Lockdowns, there have been positive signs with California is reopening for the co. The 19 guidelines established by our Governor.
The Governor's framework for reopening.
Sort of each of the California is 58 counties into a tier which determines the extent to which business activity in each county can resume.
The system is based largely largely on new daily COVID-19 case numbers per 100000 residents as well as positivity rates. It has been challenging to monitor and track and many of the businesses have had to open and reopen more than once we will continue to assist our customers navigate through this uncertainty and provide appropriate.
Systems as we have done historically through challenging times on the positive side, while the future. Obviously remains uncertain. We've been pleased to see that our customers and credit portfolio have generally speaking continue to perform favorably, which as we've discussed and which.
Which as we've discussed this appropriately reflected in relevant overall third quarter asset quality metrics and our stable allowance for credit losses in closing as we finish out the year, we remain focused on managing our business and assisting our customers through the pandemic, while maintaining our strong capital levels consistent earnings solid credit.
Excellent liquidity, our strategy remains focused on continuing to grow the bank in a disciplined and balanced manner, and we will continue to evaluate potential acquisitions and other expansion opportunities.
As they arise please.
Please stay healthy and safe that concludes today's presentation now and I will be happy to take any questions that you might have thank you. We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone if youre using a speakerphone. Please pick up your handset before pressing Nick.
Key to <unk>.
John Your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.
Our first question is from David Feaster from Raymond James Go ahead.
Hey, good morning, everybody good morning.
Good morning, David.
I just I wanted to start off on the on the loan growth front I mean, that's obviously the best opportunity to deploy this excess liquidity just huh.
Hi.
Where are you seeing attractive new opportunities, however, originations trended and what are you seeing on the payoffs and pay downs right.
Yes, it's a good question, David and I and Youre right I mean, it is obviously, our best opportunity and.
Actually our loan production in the first nine months of 2020 versus the first nine months of 2019 is up 11%.
So we're actually seeing a lot of opportunities and actually closing.
A significant number of them.
That's the opportunity side on the back on the back end of that you know there continues to be enormous rate pressure. When you look at the net interest margins of some of our larger competitors and and see that their floating below 2%.
We're competing for the best customers were competing for the best relationships and they generally require the best pricing and so we've had to be.
To be very careful with that and try and get the best way, we can get but from a production standpoint, it's been a pretty positive so.
Im optimistic that we can continue that trend our pipelines for the fourth quarter look good.
We did grow loans, albeit by $1.3 million, excluding PPP loans.
But we were happy with that and.
End of <unk>.
Third quarter looks looks relatively good.
And David better headwind related to the decline in utilization and we start to see that be bound that could help.
Okay. That's helpful and then kind of along those same lines, how our new loan yields trending in the quarter.
Yes, I have it kind of depends on the.
It kind of depends on the type alone, but I'd say in general its north a little bit of 3.5%.
Somewhere in the three and a half to 375 range on average.
Obviously, if we can get something that has a four in front of it we're excited about that but we kind of are drawing a line at that kind of that 3.5% on any.
Loan that has any term to it.
Okay. That's helpful.
Thats helpful. You guys have done a tremendous job on the deferral I mean, the the decreases in staggering.
Im just curious and I know, it's still early but what are you hearing from your clients now that the agency is no longer paying.
Yes, I mean that and as I mentioned previously I mean, that's one of my one of my larger or concerns as far as the credit quality is how that's going to play out. What we did is we created a team. We basically took about 10 associates from our sales group and created a team to really evaluate the SB seven eight loans.
That are on our books and so they have been doing some enhanced due diligence on those relationships and just trying to get a feel for that it is too early to tell.
September was last month at a payment was made on behalf of them by the government. So October so far has been good but I still believe there is going to be similar.
Some more problems there.
Okay and then.
The last one for me you guys already operate incredibly we'd institution extremely efficient and just in light of the revenue headwinds I know you guys have already worked on the branches somewhat but.
How do you think about opportunity to potentially reduce expenses going forward or at least essentially offset inflationary pressures and and on the toddler side. I mean are there any other investments that you need to make to you continued to be successful in this environment.
Yes, I mean, we consistently invest in the bank I think thats pretty pretty.
Pretty stable through our expense run rate.
This quarter was impacted a little bit by a couple of things as you saw the increase in the in the loan originations the thank you or.
We had a write down I mean, there are some things that impacted our expenses, but we're constantly looking at that I mean, that's something we want to operate as efficiently as possible. The consolidation of the one office, while it's not going to have a material impact overall I mean, it's just something that is part of our process and what we do we're constantly evaluating our.
What we call our center network, the branch network and looking at opportunities to operate as efficiently as possible. So.
I think that.
Without giving guidance per se I think that it was a little a bit elevated this quarter I think it'll it'll run a little bit lower I don't know Alan if you have anything to add to that no of course, David you saw the FDIC assessment expense went up which.
Now we are back to a normal run rate for that.
Okay.
Thats helpful. Thanks, everybody.
Thanks, David.
Our next question is from Jackie Boland from KBW go ahead.
Hi, good morning.
Wanted to touch on the rather challenging topic of that balance sheet size and liquidity I saw that you have the security purchase that you talked about happening towards the end of the quarter. So just thinking I guess first off starting with what deposit flows that looks like in October to the extent, you're able to comment on that.
How you're thinking about balance sheet side over the next several months.
Yes ill start and then Alan can jump in if he has anything to add but obviously the balance sheet size has been inflated for a variety of reasons that end monetary policy our customers that have you know.
Maybe maintained a much more liquid position maintaining cash.
I think in the beginning of this everybody thought that the PPP money was used that the balance sheets and your balances would start to decline we haven't really seen that.
The balances even through here. The first 22 days of the month to remain relatively stable.
No there hasn't been a big move either way I do think that.
That you know at some point.
That money will start to go away, but I think it's here for a little bit longer than we anticipated so our goal.
Our goal is to grow the 67% of earning assets that we have in loans to a higher percentage of our total earning assets and thats really what we need to focus on.
We will be investing sort of in securities and and just kind of replenishing probably our securities that are maturing, but but I think overall the goal is to grow our loans as a higher percentage of our total earning assets. So it's it's very challenging but as you know in some.
In some respects, it's a good problem to have because our customers are strong and that bodes well and the credit quality front, but a challenging from the investment side. So we're going to look at all the tools in our toolbox to.
Manage it the best we can.
Jack you will will be balanced in our approach obviously, we really just don't want to move a ton of others liquidity and two extra.
Extremely low yielding securities.
We might not like what that looks like in a couple of years. So we really have to balance the impact on short term earnings versus.
Preferably our focus is really on long term.
Okay and do you do you have an interest in any shorter duration securities or is the yield pickup maybe not worth the effort at this point.
There is very little yield anywhere.
[laughter].
Okay.
Okay. So.
The excess liquidity weighing on the balance sheet and then you mentioned, if I heard correctly loan yields averaging around 350 to 75.
I guess my interpretation of that is if it's just a really challenging that interest margin environment until we see higher rates is that fair.
Yes, I think it is challenging I mean again, we have some ability to offset that just by changing the mix and that's really what our goal is but it is a challenging environment that's very fair.
Okay.
Okay. Thank you.
Again, if you have a question. Please press Star then one.
Our next question is from Matthew Clark from Piper Sandler go ahead.
Hi, Good morning, guys good morning.
Just maybe starting on PPP related income I think last quarter. You mentioned you were assuming a 15 month life.
Yeah. It doesn't sound like you've had much in the way of forgiveness to date, but it looks like you're accruing more.
The base rate.
I guess, how should we think about that PPP related income.
Coming into.
The net interest income.
Is it should we assume kind of similar pace over the next three quarters, you think we're going to get some acceleration here.
Have you we will now start to.
Start to get some acceleration there were still assuming about the 16 month average life.
But we would expect by the end of year will have.
Some forgiveness actually if you look at the data we provided some of those will start coming through and we expect it will probably accelerate in early next year.
Okay.
And then.
On the.
The pipeline and when you think about.
The opportunity for.
For loan growth, if you exclude dairy and exclude the PPP.
I assume you should be able to grow a kind of a low single digit rate, but I don't know if that's at a liner.
Or whether that's more in line with your expectations.
Yes, I mean, we're we're working towards growing excluding those things the dairy season also in the fourth quarter, we're going to see some growth in the dairy and livestock as Alan mentioned and I mentioned in my comments, our utilization rate is down significantly from the end of the year and previous years. So.
That's the wildcard if people continue to sit on all this cash and not have to borrow from the C. and I loans Thats, an impact I do feel confident that we can grow loans organically.
What rate is still something that is to be determined. The one thing I Didnt say that I will say is there's been a lot of disruption.
Specifically in some of the larger banks and that's created some opportunities for us on the relationship side to go after some some large decent.
Reddit quality, good credit quality, but decent relationships that are out there and we've been getting our fair share of those now some of those are seeing our relationships, where we're booking commitments, but not necessarily seeing the outstandings on those loans, but I do think that we're still open for business. We have been opened for business we have been.
As I mentioned, we have grown our loan production by about 11% year over year I foresee that can.
Continuing through the fourth quarter, So we'll see how it all plays out but the wildcard is line utilization.
On the new loans and our existing loans and then what we're doing as far as you know more permanent loans like real estate loans.
Okay.
And then on the.
The margin 45 basis point drag from the billion side that said.
You've spoken to the remix opportunity it sounds like it will take a while maybe two three years to get all that 45 basis points back but.
Would assume you'd be able to get some of it over the next six 912 months to help that 318 core NIM.
Is that fair.
Yes, I mean, I think it's fair I mean, a lot of it obviously depends on the fed's policy as far as rates and what long term rates are doing.
Yes that everything is low and flat right now and so the steeper yield curve the better it is for for most banks and.
We are in that same boat, but I am hoping that we can continue to do the rebound is on the on the asset side of the balance sheet.
And help protect and drive that NIM.
Okay, and then just last one from me on the the reserve.
Should we assume that your reserves have peaked at this stage, assuming we don't get a material change in the model and the underlying assumptions that you've used you'll just match charge offs and when might we start to see some reserve release.
You know I think as we've talked about in prior quarters. The reserve build up in the first half of the year.
Is really a reflection of the downturn in the economy.
And so.
Our credit metrics, obviously have been very stable, maybe even improving.
So if that continues to hold up I think will once again.
Future future increases or even releases are going to be probably more dependent on the economic outlook than anything.
In terms of actual losses, we might be really looking at.
Those things to be well into next year before we really see the impact of any of that but right now.
As you can tell from what Weve presented our our metrics look very strong.
Yes, great. Thank you.
You're welcome.
Again, if you have a question. Please press Star then one.
At this time there are no more questions. So I would like to turn the call back over to Mr. Greg.
Great. Thank you I want to thank everybody for joining us this quarter. We appreciate your interest and look forward to speaking with you in January for our fourth quarter and year end 2020 earnings call. Please let Alan and I know if you have any questions have a great day, Thank you for listening and stay safe and healthy.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Okay.