Q3 2020 Central Pacific Financial Corp Earnings Call
Good afternoon, ladies and gentlemen, thank you for spending by blood culture, that's true.
Well.
Good quarter 2020 corporate school.
During todays presentation all parties.
[music] station the Congress will be open for questions.
This call is being recorded and own and you'd be able to weekly shortly after its completion on the Companys website at <unk>.
It doesn't need to be.
[music] I'd like to turn.
Oh over to Mr. David.
Executive Vice President Chief Financial Officer.
Got it so.
[music]. Thank you Craig.
You all for joining us as we review the financial results for the third quarter of 2024 Central Pacific Financial Corp.
With me this morning are <unk>, chairman and Chief Executive Officer.
No that's it.
Arnold Martinez Executive Vice President and Chief Banking Officer.
I don't <unk> executive Vice President and Chief Credit Officer.
We have prepared a slide presentation that we will refer to in our remarks today.
She is available in the Investor Relations section of our website at <unk> Dot.
During the course of today's call punishment, he make forward looking statements.
Well, we believe these statements are based on reasonable assumptions. They involve risks that may cause actual results to differ materially from those projected.
Like a big discussion of the risks related to our forward looking statements. Please refer to slide two of our presentation.
And now I'll turn the call over to Paul.
Thank you David and good morning, everyone as always we appreciate your interest in Central Pacific Financial Corp.
Sustainable why as well as our company continues to manage well through the COVID-19 pandemic well.
Well the state a wide experience an uptick in infections in the late summer, which led to a second government mandated shutdown.
Infection rate has recently dropped with the latest seven day average number of infections.
Positivity rate of 54 in 2.2%, respectively as of October 26.
After several delays initial targeted date the state why reopened audits state tourism on October 15th for visitors that provide evidence of a negative kobin Nike.
This is a key step in the profit from Hawaii economic recovery in the.
The first week after reopening we've been pleasantly surprised by the daily era arrival numbers, which have been in the five to 8000 range per day compared to less than 2000 per day since March and 30000 per day free pandemic.
Additionally on October 22nd while we made progress by moving to pure two of its recovery plan at the met the requirement of having the seven day average coal bit cases at less than 100, and positivity rate of less than 5%.
There are two allowed to walk through the further reopened certain parts of the economy.
At Central Pacific, We continue to push forward with our key right 2020 strategy well at the same time prudently managing through the pandemic.
In August we launched our new online and mobile banking platform, which includes many industry leading features and functionality.
The new digital platforms have been very well received by the market with an Apple mobile App rating of 4.8 out of five.
Additionally, we continue to replace our entire ATM network and full function machine.
And implemented this quarter and eight P. why I'm cut off for same day ATM deposit profit.
The latest cut off by all banks in the state so.
The revitalization of our building headquarters is progressing well and is on track for an opening date in January 2021.
Continue to thoroughly review regularly monitor our loan portfolio to appropriately manage the credit risk in the pandemic environment.
During the third quarter, our total balance of loans on payment deferral decreased by nearly 50%.
Significant portion resumed payment.
We ended the quarter, our longtime deferral was down to only 6% of total loans, excluding PPP alone.
Last week, we announced that we successfully completed a $55 million private placement subordinated note offering.
We believe this will also.
Usually we believe this will allow the bank to continue to support our customers and community, while also providing future capital flexibility.
I'd like to now turn the call over to Catherine to share more about our pandemic preparedness plan and the work of our CPB Foundation.
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Thank you Paul.
Our pandemic preparedness plan continues to be in place and we have not had any disruption in our business.
We currently have 28 branches opened to fully serve our customers.
Four branches remain temporarily closed due to the pending.
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During the third quarter, we consolidated three in supermarket branches into our lives.
Archer neighboring branches at the end market.
Branches were too small to allow adequate.
We are on track with consolidating the fourth previously disclosed.
Fair.
Much of our back office teams continue to work flexible remote schedule and all employees are required to complete a daily online questions.
Prior to starting each workday.
We believe the actions taken well continue to enable us to provide a safe environment for both our employees and customers.
CPB Foundation continues to be active in helping the community was relevant and timely program.
Third quarter, a foundation was one of the two presenting sponsor of the made in Hawaii possible featuring more than 200 <unk> small businesses.
All of them.
Double previously held at our local Honolulu Arena pivoted quickly become an online marketplace. This year and tracking over 100000 unique visitors over the three day launch weekend in contrast to the 60000 attendees.
Possible in person.
Ported in earlier years.
The online will enable struggling businesses to sell their products year round, so why they local national and international shoppers, bringing much needed revenue during the current challenging environment. It is a good step forward economic diversification exporting we are.
Glad that our foundation was able to provide support towards the successful initiative.
I'd like to turn the call over now the Arnold Martinez, our executive Vice President and Chief Banking Officer Arnold.
Thank you Catherine.
In the third quarter re able to grow our loan portfolio by 27 million despite the tough operating environment.
Well it was broad based including residential mortgage home equity commercial mortgage and construction loan.
Well in the loan categories, partially offset by declines in our consumer and <unk> <unk> point.
Driven by a record low interest rate environment.
Our residential lending team continued to outperform with record levels of production, resulting in 4.3 million in mortgage banking income for the quarter, which was more than double the income from the same quarter a year ago.
During Q3, our bankers continue to engage our business customers and we assisted through the paycheck protection program.
And most importantly, we continue to advocate for the broader business community in fact, it's like overnight.
We recently launched our PTP forgiveness portal and it'd be gone the profit of assisting our customers when applying for forgiveness from yes, yes.
As expected as businesses and their PPP funding, we saw a quarter over quarter decline in our core deposit balances of 109 million.
Like that.
Our core deposit balances remain up over 650 million year to date. This.
Additionally, our cost of total deposits declined by seven basis points.
13 basis points.
Providing best in class digital technology remains a key priority for us.
You three we launched our new consumer mobile platform and are nearly complete with the rollout of or do you see as Paul mentioned earlier.
We are seeing strong adoption and utilization of both digital channel.
Oh, Yeah, yeah, all the volume substantially increase from a year earlier due primarily to the enhanced deposit functionality and all available or ATM.
And deposit volume has also increased revenue and some are mobile platform I mean your early.
As we move into the fourth quarter, our bankers will continue to remain vigilant given the tough operating environment, but.
Laser focused to support our customers well, it's boring and engaging new opportunities.
And our customer base during this unprecedented fine.
Now I would like to turn the call over to Anup, who are.
You know vice President and Chief Credit Officer.
He told on our credit portfolio risk management activities.
No.
Thank you Arnold.
My first 30, the loan portfolio totaled $5.03 billion with 54% consumer and 46% commercial.
During the quarter, we continued monitoring the loan portfolio and provided support to our customers as they navigated through the uncertainty in the marketplace.
Yes. This is our customers and providing a second loan payment deferral if needed and we were pleased to see a significant number of borrowers resumed their monthly payment.
At quarter end, the total balance of loans on payment deferral declined to $291 million.
<unk>, 0.5% of our total loan portfolio.
The balances.
I read deferral rate was 31% and was primarily driven by consumer small business and residential loan fees.
These loans were initially granted a three month deferral, followed by a second three months deferral.
Well, a significant number of customers have returned to making those payments.
Expect some consumer customers will require a loan payment modifications due to the continued elevated unemployment rate.
In the commercial and commercial real estate loan portfolio, we provided most payment deferral for $133 million in total loan balances.
The two highest exposure by industry is real estate and rental and leasing totaling $47 million or 1% of the total loan portfolio, excluding PPP balances and foodservice totaling 46 million or 1% of the total loan portfolio excluding <unk>.
The majority of the loans and the real estate category are supported by those low loan to value ratios and in the foodservice category are supported by owner with good liquidity and access to capital.
We expect some of our bars will need a loan modification at the end of the second loan payment deferral, which will be evaluated on a case by case basis.
No one payment deferral for hybrid industries totaled $66 million or 1.5% of the total loan portfolio, excluding TPP balances at.
Additional details on our loan payment deferral can be found on slide 20 and 21.
During the quarter criticized loans increased by $34 million sequential quarter to $197 million or 4.4% of the total loan portfolio, excluding PPP balances.
Special mentioned loans increased by $33 million to $149 million or 3.3% of the total loan portfolio, excluding PPP balances and classified loans increased by 1.5 million to $48 million or 1.1% of the total.
Loan portfolio excluding.
Hello downgrade for the result of our continued assessment of our risk.
On the bars near term strategy and outlook management strain and actions they've taken overall financial condition and external funding.
Before.
Approximately 12% of special mention balances and 5% of classified balances also received TPP loans.
Additional details on those rated special mention and classified can be found on slide 22 and 23.
Overall, we continue to believe our proactive and disciplined approach to credit and our diversified loan portfolio will allow us to remain strong through these unprecedented times.
I'll now turn the call over to David Morimoto, Our executive Vice President and Chief Financial Officer, David.
Thank you Adam.
Net income for the third quarter of 2020 was 6.9 million or 24 cents per diluted share.
Return on average assets in the third quarter was 0.42% and return on average equity was 4.99%.
Our earnings continued to be impacted by higher provision for credit loss expense due to the current COVID-19 pandemic.
Importantly, the third quarter increase in our provision was largely driven by the economic forecasts and not an increase in actual loan losses.
Additionally, our pretax pre provision earnings for the third quarter was what 23.7 million, which increased slightly from the prior quarter.
Net interest income for the third quarter was 49.1 million, which remained relatively flat on a sequential quarter basis.
Net interest income included 3.4 million, if TPP net interest income and vessel.
The net interest margin decreased to 3.19% in the third quarter compared to 3.26 in the prior quarter.
The decrease was due to Lora, you already P.P.P. loans as well as the lower interest rate environment.
The net interest margin normalized for P. P. P was 3.26 in the third quarter compared to 3.31 in the prior quarter.
Third quarter other operating income totaled 11.6 million compared to 10.7 million in the prior quarter.
The increase was primarily due to higher mortgage banking income of zero point $8 billion.
Additionally, the current quarter, we reinstated certain service charges that were temporarily suspended due to the pandemic.
This resulted in an increase in service charges on deposit accounts and other service charges and fees.
Other operating expenses for the third quarter was 37.0 million.
Which was an increase of 0.5 billion compared to the prior quarter.
The increase was driven by increases in several.
Expense line items and also included branch consolidation cost 0.3 billion related to the Threed in store branch closure as previously noted.
That charge off in the third quarter totaled 1.3 million compared to net charge offs of 2.9 billion in the prior quarter.
The charge offs, primarily came from the consumer loan portfolio and the field I portfolio.
At September 30, our allowance for credit losses was 80.5 billion or 1.79% about sandy loans, excluding PPP loans.
This compares to 1.50% as of the prior quarter and.
The efficiency ratio remained relatively steady at 60.9% in the third quarter.
Parent to 60.8% in the prior quarter.
The effective tax rate increased to 24.3% in the third quarter due to lower tax exempt bank owned life insurance income.
Going forward, we expect the effective tax rate to continue to be in the 24% to 26% range.
Our liquidity and capital capital positions remain strong and we continue to perform robot stress testing.
The recently completed subordinated note offering strengthens our capital ratios, which further allows us to support our customers and the community during the pandemic and positions the company well for the future.
The subordinated subordinated notes are considered tier two capital and as and is anticipated to increase our Cps total risk based capital ratio by approximately 120 basis points.
Our board declared a quarterly cash dividend of 23 cents per share, which will be payable on December 15 to shareholders of record at the close of business on November Thirtyth.
Oh will return the call to call.
Thank you David in summary, Central Pacific continues to make positive forward progress on our strategies well at the same time manage well through the COVID-19 pandemic, we have a solid financial credit liquidity and capital position to enable us to weather the storm.
As the economic recovery gradually begins we remain committed to providing support to our employees customers and the community.
On behalf of our management team and employees. Thank you for your continued support and confidence in our organization. At this time, we will be happy to address any questions. You may have thank you.
We will now begin the question and answer session.
Question for me, Chris That's true then one on your telephone keypad sorry.
Or using speaker phone sales pick up your handset before pressing the keys.
So your question is Chris.
Three cents.
Our first question comes.
From Jackie Bohlen with KBW.
Hi, good morning, everyone.
Wanted to start off with balance sheet liquidity management, you know it against.
I guess the other trends that we've seen you did a really great job at managing your cash balances in the quarter and I just wanted to what's going forward and see if you think there's any more P.P. run off or other liquidity run off that you expect I really don't see that and you can start to have some.
I'm, sorry, a mismatch perhaps between loan and deposit growth I understand you got PPP running off what I liquidity management plans are for that.
Hey, Hey, Jackie it's David Yeah, you know I think right now though.
The outlook is that we hope to have the PPP loan forgiveness saw a process. So the reduction in PPP loan balances.
So hopefully a mirror.
The rundown on the PPP balances, you're not yet our deposit.
So that's the current outlook, especially with the recent announcement.
Announcement on accelerated forgiveness for small dollar a PPP loans.
Okay, and so I guess the way to the extent that you may have excess liquidity. If you know if that does happen I'm Neal are you booking I securities Reinvestments or would you look to keep that in cash.
Yeah right right now the plan a jockey is to keep the investment portfolio roughly at its current size so about 1.1.
Billion dollars yeah.
To the extent, we have excess liquidity as you know we are we are optimistic that we'll see some that loan growth.
As the economy starts to evolve so we are looking.
Oh, you know cautiously optimistic to see some stronger that loan growth.
Outside of P.P. fields and then.
Obviously to the extent that we do it and dealt with excess liquidity it could be put to work in the investment portfolio.
Okay.
Then how are you I'm understanding where you're coming from from a liquidity management position I'm. You know how are you thinking about the forward March and then I had just in terms of pressures you might have on on earning asset yields and I know that that yeah, there's maybe a little bit but not a ton of rents that continue to drop down deposit costs.
Yeah.
That's still young child and shop floor for the banking industry is a said that interest margin all north. So currently we're projecting a net interest margin range and the three tend to be 20 range for the next couple of quarters and not.
That incorporates the the sub debt.
Offering it assumes a conservative we had the best Smith of the sub debt proceeds. So that that's currently assumed to go into investments so to the extent that we do see some stronger loan growth.
That would help.
So it incorporates the sub debt offering and it also incorporates some continued core net interest margin pressure as a result of the rate environment, Oh, you referenced shockey.
Okay.
And then what.
Looking at the.
Okay.
Sorry.
Hopefully you can hear me.
[laughter] core loan yield versus where new generation, what coming on so I'm looking at the loan yield TPP and thank you for it that data to be able to calculate that I, where are you seeing new origination loan yields versus the portfolio.
Hi, Jackie and in the third quarter, a new loan origination yields were roughly 3%.
I will say that that that new loan origination yield is obviously very sensitive to the the loan mix. So it is it.
It's also for all the little depending on the mix of new loans in a particular quarter.
The third quarter was roughly 3%.
Decades. This is this is oh, we're gonna have to see how you know with the opening a tour as though you know what the implications will be to the economy.
And you know we're trying to be very cautiously optimistic and we're hoping that you know they'll be more investments in general more demand.
You know we're hopeful that.
That will show up in the net interest margin overtime.
Okay, great. Thank you both for all the the ATA detailed technical questions I appreciate it.
Sure. Thanks.
[laughter] comes from.
[laughter].
[laughter].
Oh, Hey, good afternoon everybody.
Hi, good morning, rather.
I'm just following up on the deposit question do you have an estimate for how much TPP deposits are still sitting in deposit accounts and haven't been there and then just how successful hadn't been thus far and migrating the new PPP quiet the bank and.
Just how deposits are trending and loan growth trending early in the fourth quarter, Hey, David before we respond to that can you know can you hear US okay. We're having some audio problems, but yes, yeah I can area. Okay. Good I'm going to have a arnaud Martinez RCB, all do respond to that Arnold.
Yeah, Hi, Good morning, David you know so you know as I mentioned earlier, a deposit balances decreased in the third quarter as businesses start to spend their PPP loan proceeds.
So he does to your question you know we we yeah. Our expectation is that we've got still have elevated deposits through the next few.
Few quarters as the as the businesses I'll spend the dollars Oh, but you know we had made really good progress in in being able to have engage and and convert many many of the customers that we assisted or on the DPP.
With you know to the bank would operating account its its really difficult at this point to really determine.
But the net amount is going to be just because we have inflows and and and outflows obviously, but at some point in the future, we probably will be able to provide provide a little bit more color on that Stephen.
David You know there were there were over well over 2000, new customers basically through the PPP process and Arnold and his team doing a great job.
Converting many of them to become a you know ongoing customers of the bank. So and we have some pretty good success is early on and we're still working on it.
Okay.
That's helpful. And then just kind of taking your your commentary about hoping for you know for some loan growth as the economy recovers I mean, we've got you know the reopening started things are trending a bit better than expected early on just curious how you how your what your thoughts are on the pulse of the local economy, how your pipeline is trending.
And just you know any updates on on on what you're hearing from clients in concert.
So we still see a fair amount of strength and then you know what I would call the non tourism sector, especially around construction you know I mean, we had such a vast shortage of housing even before cobot and there continues so.
So for many of the housing developments that are coming online I mean, it's a very robust market and we're quite pleased by the fact that we continue to be a lead or take out lender on a lot of these large housing project or at the same time the military sector continues to be very robust.
With a lot of new investments.
By the federal government and the department of Defense here in Hawaii. So so that that's all I'm going to you know clearly the you know the reservations and the concerns or you know are somewhat tacked onto the tourism sector and a you know with the opening on October 15th we don't you don't.
See a huge spread on coal bed and and you know we can continue to welcome more tourists then here by tourists meeting investors as well I think well you know we should be able to expect a gradual uptick you know on opportunities and that's tourism related as well.
And that that would fare very well for us.
Okay.
That's that's that's great color I appreciate that and then just the last one you guys have done a great job managing expenses in the face of these revenue headwinds just curious whether there's anything more one time in nature and there's a they kept it they kept it lower and whether this is a good expense run rate going forward and then you know whether they did the.
New digital platform I mean, that's a huge initiative for you all I know just whether there's any.
She sees or any potential cost savings coming from that as we go forward.
You know the digital platform you know David already is I think Arnold and David touched on you know, we're seeing dramatic change of consumer behavior. Today, you know a lot more mobile deposit has a lot more usage of the ATM.
The only people you know.
Having a quite an affinity to our new mobile platform and we expect that to continue.
We're gonna be following that closely as to you know what the implications on changing consumer behavior and the effectiveness of our digital platform for us to continue to look at our branch network.
You know as Katherine touched on we closed three you know in store branches and we're going to continue taking a hard look at and what else we could do while not in convenient thing our customers you know so well that that will probably be something out there, but we don't have anything.
On the table today, but we're going to take a hard look at it.
Okay.
Thanks, everybody.
Thank you.
The next question comes from Andrew Liesch with my personal there.
Hey, good morning, everyone.
And you don't just want to touch on credit here I'm sure a little bit of increase in criticized loan, but even that notwithstanding there's still very low as a percentage of the portfolio.
And you did have a little bit of an increase in the provision here. It seems like that's where we're going to do those couple commercial borrowers that you mentioned, but I mean, how are you looking at the allowance from here you certainly go up a reserve nicely this year dot c. So.
Just with some of the qualitative and quantitative overlays, but do you think there's more reserved building to be done or do you think this is kind of a a good level of portware occurred or kind of plateaued for a while as we move through when the economy rebounds.
Hey, Yeah, Andrew inside the U.S. you know.
We feel good we feel good about where where we feel we're appropriately reserved as of 930, although going forward is going to be a function of all the economies are the economic forecasts.
They'll be open do you know.
Tourism and the local economy.
And on that charge offs and loan migration you know that we are.
You know we were appropriately reserved bed at night 30, and then the extent to the extent that.
Things trend positively and there there so the reserve coverage level could come down.
Or vice versa. If you were to go pull the other ways, we would be directionally consistent with that so it's all that's it it's hard to give you a precise answer other than to say, it's going to be directionally consistent with what we see in the economy and the credit portfolio.
Okay understandable.
The under the Pearl slide in the presentation, just reference the commercial mortgage construction season, I loans that expect 25% to resume regular payments here. This quarter what are the other 75% telling you are they how do they feel about their situation do you think they may need to come back in.
We need more deferral time as we move into next year I'm just curious what the front end of those borrowers is right now.
No okay.
Hi, Andrew this is on a yeah. So you know I think in our residential our commercial real estate and RCN I book, we are.
Seeing very positive downward trend and customers moving basket team and we're really focused on is probably the consumer again, the unemployment rate in September with about 15%. So there are some there is some uncertainty around.
We continue to monitor.
To watch and then Josh actively work with our customers as well to provide assistance.
Okay. Thanks, and then.
Just on the on the balance of PBP loans that are remaining earlier, it's all of them. What's been the sense that you guys have gotten from the S.P.A. So the process is going pretty slowly but in speaking with their customers and how long do you think the loan that stick around on the balance sheet before their every pay them for you.
<unk>.
Yes, so Andrew this is a this is arnold.
I mentioned earlier, we are we opened our portal just recently.
And and I'll, just give you kind of a flavor.
It's all about October 26, we had a 76 loans are in our pipeline totaling 20 million.
Submitted to the SP for forgiveness.
And we've had thus far for loans 458000 are approved by the SB eight our expectation is that you know, we're probably going to see most of the forgiveness happen. In 2021, you know just given given what we're seeing as far as the turnaround time.
Just the activity that's coming through our our forgiveness portal.
Okay. Thank you that's good color I appreciate the.
The answers I'll step back thanks.
Once again, because I have a question. Please press star then one.
The next question comes from long term care, we compose point.
Hi, Thanks, good morning.
Just wanted to stay with what they had just a question on PPP can you just remind us as of September 30, what the net processing fees are remaining on your on your P.P.P. Buck.
If you already have taught David So I do see total.
That processing fees were roughly like 19 million and as of <unk> 30.
We still had roughly 15 million to to go to the art.
Perfect Okay.
Okay, great. Thanks, and then can you and David maybe this is a question for you or for you and I can you give us a little bit of color on the two commercial credits.
Type they were.
Hi, Laurie this is a topic are you talking about the commercial credits and nonperforming.
Yes, I'm sorry that the two now so really that's totaling 15 million that you know you. All had said you don't expect to see further lots could obviously be had movement. There just wondered what they were and then what that extra piece of 3 million unsecured collateral is.
Just any other color you can give us.
Yeah sure I'll start and then maybe I will provide more detail, but yeah. We did see that 7.6 million an increase in M.P.A.'s quarter over quarter and I'll share with you how of that now real estate secured actually was paid off.
Monday.
And then all right the other half the other piece is on a real estate secured alone on property here in downtown Honolulu, and the loan to value on that.
One is 32%.
And sorry, what type of real estate, it's a commercial building in downtown Honolulu.
Okay, So uh huh.
Okay.
Okay.
And then.
Oh, just maybe some comments if you have them. Your your hotel docs just looking at your tougher all.
You went from 3.3% to 10% to 28.8%, which is still remarkably low remarkably low red but relative to mainland remarkably low just even thinking about the fact that Hawaii El pen can you just help us think about that so you're at $59 million back and where you see that going.
What you're expecting in terms of as we look forward is that going to stay at this level and then also can you just remind us.
What your hotel, but looks like in terms of you know just very approximate properties flag.
Hi, The beach front, just any any color you can give us would be would be helpful.
Well I'll start and then and I can provide some detail so in our slide deck on slide 16, you see our accommodation Buck of 50.
$59 million and we haven't broken out between CST and I in theory see the come.
I just love a number of hotels with strong flag so international flags.
And then and then with strong backers.
Just to give you some color on how we feel about that portfolio.
Many of the hotels have reopened with the reopening of tourism on October 15, and anecdotally were hearing that.
The owners are pleasantly surprised on the return of tourists, but but I have to say and along the lines of what Paul mentioned earlier, yet the continued progress it will depend on that continued influx of tourists and then our ability to keep the infection rate down here in Hawaii.
And so so is that a six month deferral them that that you all granted is that how you're approaching that.
Yeah. This is Anna [laughter], it's pretty much still on a three month by three months.
He says okay.
Parts of the accommodation that 17 million, we actually feel really good about it some of those hotels delayed their opening.
So we're looking at in November one opening for the a couple of hotels that are in that category.
Okay, No I mean, it's it's low considering that the Hawaii hasn't been open okay, and just I mean, a along those lines. So if I'm looking at your your total commercial deferrals again.
Really good improvement here going from 19.5% down to 8%. So can you help us think about.
You know with your stock trading so just kinda talk about how you're approaching something like potentially a buyback, we're seeing more and more smid cap banks.
Announced buyback just what are your thoughts and certainly you obviously have the sub debt raise which was obviously could also be used to buy back stock. So maybe if you could help us think about any thoughts around that Paul.
Kathryn that'd be great.
David respond to that Laurie Laurie yeah.
Again, you know I think I think the Hawaiis economic recovery.
It is obviously trailing them, even slightly with us just reopening tourism. So you know where we're gonna be monitoring the recovery of the local economy as Paul mentioned earlier.
And also you know as we gain better visibility on the path forward.
Yeah, we could turn off offensive with our robust capital position.
And you know with the stock trading up 75% of tangible book value that that's that's a pretty good off.
Offering today.
Perfect. Thanks for taking my question. Thanks.
Thanks Laurie.
This concludes our question and answer session I would.
I'd like to turn the conference back over to me for any closing remarks.
Okay great.
Thank you very much for participating in our earnings call for the third quarter 2020, we look forward to future opportunities to update you on our progress. Thank you very much.
[noise] copper is now concluded. Thank you for attending today's presentation you may now disconnect.
<unk>.
[music].