Q4 2020 CapStar Financial Holdings Inc Earnings Call
Yes.
Good morning, ladies and gentlemen, and welcome to kept for a financial holdings fourth quarter of two dozen earnings conference call.
The call today from cats for our Tim schools, President and Chief Executive Officer, Dennis <unk>, Chief Financial Officer and keep the.
Chief Credit Officer.
Thanks, no debt that each call is being recorded and will be made available for replay I'm cats for its website.
Please note the tough start earnings release, the presentation, but the reality that will be referred to in this call and the form 8-K. The cats are filed with the S. E. T are available on the S. E T for website at Ww diet.
That girl.
The Investor Relations speech of cap Star that's fine at Ww died I or the tax for bank dotcom.
Also during the presentation catches on me make starting comments, that's the secret to the forward looking statements within the meaning of the federal Securities laws.
Forward looking statements reflect the got started strength with respect to among other things future events and financial performance.
Forward looking statements are not historical facts and that would be used to fund caps for his expectations estimates and predictions as of today.
Accordingly forward looking statements are not guarantees of future performance and are subject to risks assumptions and uncertainties.
Many of the niche or did he calls for D N beyond cash starts to control.
Actual results may prove to be boundary of the brand for their thoughts expressed or implied like a forward looking statement you're.
You are cautioned that the teeth I'm the reliance on forward looking statements, which speak only as of today.
Except as otherwise required by law have started to screen any obligation to update or revise any forward looking statements contained in this presentation, whether you actually saw the new information future events or other wise.
In addition, this presentation may include certain non-GAAP financial measures.
The base assumptions and uncertainties impacting forward looking statements and the presentation of non-GAAP financial measures and the.
And the reconciliation of non-GAAP measures for the most directly comparable GAAP measures are included in the make their earnings release and the presentation that the reality referred to in the skull.
Finally, cash sorry, it's not responsible for and does not edit nor guarantee the accuracy of its earnings teleconference transcripts provided by third parties.
The only authorized fly and I tried webcast and transcripts are located on <unk> website.
With that I'm now going to start the presentation over to Tim schools, <unk>, President and Chief Executive Officer. Please go ahead.
Okay. Thank you <unk>.
Good morning, and thank you for participating on our call. We're pleased with our fourth quarter and 2020 results and we appreciate the opportunity to review them with you.
Each of our lives involves the participation in groups and teams starting in school carrying through sports and other activities in line there.
There is no team I participated in that I'm most proud of.
And the 2020 cash certainty.
Looking back as we enter 2020, we were still integrating for large merger.
Many of the industry anticipated a modest decline in our net interest margin.
The increase in provision expense, having had little to no losses in the prior year.
In short we thought it would be somewhat challenging.
A year and we're focused on strategies and initiatives that could overcome this.
Little did we know in 'twenty and 'twenty, one all of US were hit and had been impacted by a horrible pandemic. It has been a challenge on each of US as we try to balance our health family friends and work.
On top of this not many converted and integrated the two additional banks and performed at the level we did.
Our team is providing exemplary service to our customers been a leader in our communities with PPP and deferrals.
While at the same time producing record results in our mortgage Tri net and SBA divisions.
The world's resiliency has been tested and cap star had a resilient twenty-twenty I'm. So proud of our team and it inspires me as to what we can achieve as a group.
The fourth quarter ends a remarkable year and one we hope will not repeat in our lifetime.
We reported operating earnings per share of 51 cents pretax pre provision the assets of 193%.
And return on average tangible common equity of 15.38% on a very strong capital base, whereby our total risk based capital ratio now exceeds 16%.
In addition to our strong profitability, our 2020 focus was sound risk management.
At year end, our allowance for loan losses, excluding P. P P loans and accounting for fair value marks was 1.57%.
'twenty 'twenty was challenging, but we enter 'twenty 'twenty, one inspired and has a stronger bank enhancing our strengths, we expanded and diverse end up excuse me and diversified.
Adding to outstanding community banks.
And entering Knoxville.
Our relatively new SBA division began to see great success.
And we engage Darling and associates to assist in strengthening our net interest margin.
Lastly, I want to recognize christy's his team and our bankers for their leadership and outstanding portfolio management cap Star is comprised of strong risk managers.
The price this year.
The each work with customers to provide as much flexibility as possible while at the same time protecting the bank.
With that I'll turn it over to Dennis to cover our financial performance for the quarter.
Thank you Tim and good morning, everyone on slide seven of our earnings presentation.
You'll see our net interest income of $22 3 million for the quarter reflects the continued increase over the past three quarters. The net interest margin was 3.12% for the quarter and was relatively stable at 313 point for 1% on an adjusted basis. The adjusted NIM include.
The impact of excess deposits on our balance sheet.
Which adversely impacted the margin by 37 basis points PPP loans contributed eight basis points favorably to the margin in the fourth quarter.
Also of driving an improvement.
What's the shift of earning assets from cash into investments totaling about $178 million in the fourth quarter.
On slide eight deposits decreased 35 million at 12, 31, 'twenty from the third quarter, largely driven by a decrease in our correspondent balances.
Our core deposits are core markets the <unk>.
Posits are continuing to hold large levels of deposits consistent with the prior two quarters deposit costs declined nine basis points in the quarter as compared to the adjusted third quarter deposit rates rate, which excluded the amortization of the swap expense, we continue to lower deposit rates.
In the fourth quarter, which further decreased deposit cost and will be fully realized into 'twenty and 'twenty one.
Our excess deposit balances are being strategically addressed through continued pricing opportunities focusing on loan growth purchases within the investment portfolio and the continued run off of higher price deposits.
On slide nine our average loans were relatively flat for the quarter at $2 1 billion.
Excluding our P. P. P loans average loans decreased by $4 million as we saw line Utilizations declined to 46, 2%.
On an end of period basis loan growth excluding P. P. P increased $19 6 million for four 6% annualized over the prior quarter as we continued to build out the Knoxville market and strengthen and grow our loan pipelines total.
Total PPP loans were $182 million at the end of the quarter down $20 million from the third quarter. The loan yield was four point for 8% for the quarter relatively stable with the prior quarter.
On slide 10.
As Tim mentioned, our noninterest income continued to be very strong for the quarter with record levels of revenue in our SBA business at $916000 in strong fees and Tri net.
Mortgage fees, while down from a record third quarter continued to remain very strong.
On slide 11, we provide additional information regarding the continued strength and strong quarter in our mortgage business.
Decreased volumes in mortgage did drive a decrease in revenue for the quarter from our record third quarter.
Slide 12 shows our operating noninterest expenses were $19 4 million for the quarter, which resulted in a <unk>.
Operating efficiency ratio of $56 eight 5%.
Driven largely by cost savings from FCB continued expense discipline and the strong fee business.
With that I'll turn it over to Chris Tietz, who will discuss our credit position.
Thank you Dennis turning to page 14, let me start by saying again, we are encouraged by the resiliency, we have observed in our communities our customers and our cap star team as we of all confronted the effects of the pandemic, we have fared well through the course of 2020 as this pandemic has evolved to think of the uncertainty that we face less for the year of.
And to compare it to the focus we are gaining a while looking to the future is heartening in many ways through this period.
We have maintained consistent commitment to enhancing our strategic orientation as a community bank focused on in market organic growth. This is evident with continued reductions in our shared national credit exposures to less than seven per cent of our portfolio and continued focus on relationship development within our geographic markets. We can.
To maintain the level of end market transactions exceeding 95 per cent.
These changes not only fit our strategy, but also enhance our ability to manage risk successfully and deliver consistent results over time.
From an asset quality perspective, we remain committed to robust monthly reviews of borrowers experiencing continued pandemic impact and borrowers that are criticized or classified we evaluate each against for criteria for.
We make a forward looking assessment of the direction of risk in their operating performance.
We evaluate the adequacy of sustainability of their cash flow third the quality and coverage provided.
Provided by pledged collateral and liquidity is evaluated and finally, we look at the capacity and willingness of their owners and guarantors to support the borrower.
Consistent with observations, we shared last quarter, we are generally seeing stability or improvement in the direction of risk in the vast majority of reviewed credits and believe that those with lingering lingering impact from the pandemic are generally well secured adequately capitalized and in many cases have access to.
External capital if needed.
This is reflected in stable criticized and classified loan levels from quarter to quarter and a reduction in payment deferrals to about three 7% of loans involving a relatively small number of borrowers operating in the predictable sectors, including hotels tourism and entertainment.
Since there was a lot of attention on hotels, let me give you a little additional insight.
First hotels account for just under half of the three 7% in borrower balances with payment deferrals hotel balances on deferral account for less than one third of our 96 million dollar of hotel portfolio. So two thirds of our hotel exposure is continuing to pay on or has returned to original <unk>.
Payment terms at 12 31, 87% of our hotels are rated pass.
We have also stress tested each of the transactions in our hotel portfolio against pre pandemic valuations and in the event of default both the individual loans in the aggregate portfolio easily with stay on value stresses in excess of 30 per cent or more.
I referenced 30% as a benchmark simply because this is higher than the general consensus we hear discussed in various forums in which we participate where short term value impacts for hotels are discussed.
In aggregate, while the future remains uncertain, we are hopeful that with the vaccines rollout activity activity will return to affected sectors in coming months in the meantime, our belief is that affected borrowers have ample staying power to bridge the gap in time, and we continue to reassess this regulars.
<unk>.
Turning to the next page classified assets remain low and our overall losses continue to remain at low levels.
We note the delinquencies are elevated from prior periods. It is important to note that approximately 40% of these delinquencies are directly related to transactions the were matured and pending renewal at 12 31.
Finally, we are continuing to assess and bring focus of the lingering effects of the pandemic.
We maintain a conservative posture in our assessment of the allowance for loan losses, while we remain hopeful in our current assessment. We believe it is appropriate to maintain a conservative posture as lingering uncertainties resolve themselves and come in coming months.
As in the past we continued to present a couple of different views of the allowance adjusting for purchase money marks and or are we moving P. P. P loans, whether on a GAAP or an adjusted basis. We see the range is conservatively biased regardless of one how chooses to assess that.
For viewing with that I'll turn it back to Tim for closing comments.
Okay. Thank you Chris operator, we're now happy to answer questions.
Ladies and gentlemen, if you have questions at this time. Please press the Star then the number one key on your Touchtone telephone.
For your question has been answered part of the scary little guys sounds kind of of the queue. Please press the pound key one moment. Please for our first question.
Yeah.
Yes.
And our first question comes from the line of rehab day from peak.
Piper Sandler sorry.
Your line is open.
Hey, guys good morning.
Good morning Graham.
I guess just to start on credit can you talk about what drove the increase in loans 90 days past due I think it's for just over 4 million. Now was this just matured loans that were pending renewal kind of like you mentioned in the deck or was there any actual credit migration of note here.
Yeah generally it goes it falls in the category that had to do with the maturing loans pending renewal.
Yeah.
Okay great.
And then looking at D. A.
There are obviously a great contributor to fee income again this quarter of about 400000, I know, there's dividend still pretty new but can you give me an idea of kind of what's driving growth here and where you might think the run rate might shake out in 2021.
You think it might be closer to that <unk> level of about 500000.
Sure, we actually think it's closer to the fourth quarter level and can do even more the challenge is.
This isn't really a challenge because we're glad to help is it the PPP three so that team is now fully focused on executing P. P. P.
Which takes their game off of their normal SBA business, but if you think long term. It's a very talented team that came over maybe two years ago and it you know it takes some time to get set up their processes. There. There are centers of influence referrals and was really proud of we put a business plan together.
Actually entering last year with the goal of doing about $1 million of quarter end.
You know first quarter was spent sort of getting going and then second quarter. They just dominated all of their time on P. P. P. So.
The second half of the year of proved out their business plan that they can get up to about 1 million of quarter. So we're very optimistic about that I think we just have to wait and see this year, how much pandemic, we still have because they're distracted right now in first quarter, but we're real excited about their prospects.
Yes.
That's great color and then.
I know you guys took a lot of excess cash this quarter and put into the securities book. It looks like you still have fair amount of liquidity on balance sheet.
There could be any incremental additions to the investment portfolio and how are you thinking about balancing that with.
The future loan growth opportunities that might be a little further down the road.
Well, obviously, everybody would love to put it on with loans right and we don't want to be imprudent and put on bad loans and so it's a really balanced approach and I'll, let Dennis add to that that we're looking at five or six different things and certainly we could go buy a ton of securities like anybody today and you may <unk>.
Earned 50, 70 basis points, and we don't want to hurt our interest rate risk and so we're really trying to look at the return on capital of investments and we've done some securities. We've actually tried to run some deposits off that were non core and Dennis do you want to add other strategies I would just say, Tim but you know we're we're monitoring it.
We're.
Doing a net.
A number of things we've bought a lot of sub debt of lot of investment securities in the in the fourth quarter, we may be able to do some more we obviously.
Other things that we're looking at in the and of course.
We we are monitoring our capital position as well and so we have a lot of things on the on the puck in the pipeline the liquidity ratio was close to.
23%, so plenty of la Quinta liquidity.
A lot of excess deposits and.
We'll continue to be aggressive in pricing.
Those deposits are downward.
As we move into the 'twenty 'twenty one.
Okay. Thanks for that that's all for me guys. Congrats on a good quarter. Thank.
Thank you very much Graham.
Thank you. Our next question comes from the line of Jennifer Dunbar for them to Securities. Your line is open.
Thank you good morning.
One of your peers.
Hello.
The hotel loans this quarter wondering if debt.
Would be willing to consider if the pricing was favorable in net.
General forgot your question broke up could you repeat it please.
Sure one of your southeast peers. So some hotel loans during the fourth quarter. Just wondering if that's something cap starwood consider if the pricing was favorable in there.
Well for as we mentioned earlier, a 87% of our hotels are pass rated we have got we would we would typically look at something like that as a in offensive step to avoid Ah losses right now we think that our our assessment of all.
The transaction by transaction basis of those borrowers as favorable their capital structure and liquidity is good and all of our pre pandemic valuations are strong because we still adhere to our high cash equity underwriting model on the you're on the front end side.
I would say, we would consider anything but favorable for us what would have to be you know par, but they're good customers to us.
Okay.
The revenue growth of environment's going to still continue to be pretty.
And the sheer.
At what kind of the expense growth just kept star envision this year.
I don't think we want to give any guidance you know, we're still coming out of the FCB, which added expense and we're taking our R. R.
The.
Estimated cost saves out so we're getting to a normalized base I would say we're focused on disciplined management I don't see a lot of of capital investments or or sort of I would think it would be.
The way pretty close to the fourth quarter run rate and you know.
You're right revenue.
The economy is uncertain, so revenue and loan growth is tepid, we're certainly looking for strong loan growth and we're looking for additional bankers to hire.
And then I'm hopeful is as Dennis that our margin is near stabilizing and.
So I think there's going to be a year. We're still excited about our fee businesses were going to try and get the balance sheet growing again.
And I'm trying to be very disciplined on the expense side.
Hi, Jennifer this is Dennis I think that Oh, I think that you know we're finished with pretty much pretty well finished with the conversions in the AR and the integration of our acquisitions. So we will have a.
We will have.
You know some.
Savings that'll be coming in from that'll be fully fully realized.
Going into 'twenty and 'twenty, one we also see with darlings of assistance some upside opportunity in our.
And our net interest income and our net interest margin of especially if the the yield curve continues to steepen, a little better as the economy begins to open up.
And then we've got really a you know of tight focus on our on our regular ongoing.
General operating expenses, so I'm really optimistic that the you know we've got a pretty stable.
The situation from a revenue and an expense.
The standpoint.
Yes.
Do we still have you.
Okay.
Yes. Thank you.
Okay. Thank you Jennifer Thanks, Jennifer.
And our next question comes from the line of Kathryn Miller from K VW. Your line is open.
Thanks, Good morning.
Hey, Catherine.
Hey.
I know, we've talked about capital management, a lot and just for any of your updated thoughts on a buyback and what signs in the economy.
Looking for it to where you think you'd be comfortable starting to buy back stock.
Yeah. Good question and I'll, just you know for the.
Let's go back a little bit I'll say, when I joined 18 months ago one of the.
The pieces of feedback and you get feedback from everybody right everybody has thoughts when you try and digest it all but one of the feedbacks I got maybe in the summer of 19 was the cap star had run on excess capital and.
Buyback opportunity or increasing the dividend.
People, even talked about of one time dividend.
So I think we took.
Took that input and we've talked about it a lot and we actually.
Jos to do the FCB deal if you remember part stock part cash too because obviously you'd like to find profitable investments to use that cash is priority one and if you can't find the loan growth of an acquisition then do something so.
We changed that to that mix.
And we're going to use our internal cash, which would have lowered some of our ratios and put it to use.
And then Covid hit and just one of the things I think that's quite about cap star is we're very focused on risk management and so on.
The rightly or wrongly we wanted to be conservative this time last year and elected to raise sub debt.
And so we just never wanted the situation not knowing how deep it would get that we would ever be in a position that we had bought back stock at 15, and then the use of the issue at lower later, because it was just a horrible event.
In hindsight it looks like things are not going to be as bad as maybe we all thought it could have been last last second quarter. So Monday morning quarterback maybe there were some periods of your like shocks. We could have bought some stock. So we've studied it since August and we've run of burn down analysis between my.
Shelf, and Dennis and Christina and steep Graham and Mike Fowler and we've probably met three of four times to monitor what we think the maximum loss could be what do we think our earnings potential would be what price, we would buy it and.
It got discussion this week at our board meeting so I would say it's under discussion we really just wanted to make sure. It was clear and that our shareholders are protected.
And I can't say much more than that but we do think our stock price is an attractive price.
But we don't want to jeopardize the bank of our capital base.
Because of the city.
You look at it do you feel like it's more likely that you'll see reserve relief.
Before you buy back stock or do you kind of look at the I guess, the Q kind of ways of capital management or the kind of indication that you're comfortable with the credit.
Maybe in that sense, how do you think about.
How how early we kept the reserve release coming out I think Mr next year.
I'm not going to really comment on that I mean that that really I think all banks, we all comply with GAAP, we want to and we all are required to I think this past year. The qualitative measures became much more important and you know there's still a lot of uncertainty with you know stimulus.
Coming out and is that prompting the economy up you know second waves of the virus third waves of the virus.
So we're gonna, let the model tell us based on our credit.
But you know we do have a healthy reserve based on what we felt the potential risk of B and so we're monitoring to ensure the appropriate levels there, but at the same time, we've got great profitability in our capitals building up so have you them together and I don't view of them together and I would just say that.
You know what our capital levels, we do feel we have more capital than we really need to run the bank long term, we agree on that but we just would never doing it wanted to do anything to jeopardize the shareholder so I view them, a little different Catherine I think debt.
We will be looking at you know share buybacks when the appropriate time and the appropriate pricing this spring.
Great.
The telephone maybe just one follow up on credit for you Chris do you have all of the about the very minor, but you said the minor increase in Npls and what does the credit score.
Well first of all in terms of Npls. There was an increase of came through the mergers that occurred in the.
In general and but it was not outsized by our view and then again the the other point I'd note is that the over 90 day delinquent credits would include some of the impact of the pending maturities that were or pending but the.
Maturities pending renewal of at year end.
Okay. So are the.
The linked quarter increase in non performing loans was that could you be that of pandemic related here for more.
On the acquisition related.
Oh, no that was the in terms of the specifically to non accruals all of that was acquisition related.
And what type of credit.
Oh, well, it's it's a general pool are they have a large base of consumer credits all of them there and we manage those under the retail consumer credit reporting rules and so on and so we put those all into doubtful categories pending the resolution of.
With all of them with with their delinquencies and so on so that there's no. There's no one credit that's all driving that if that's what your concern yes, largely what we experienced Kathryn as you know these were two privately held banks and very well run very good.
Ratings and.
But they were private and so they didn't have I think the same discipline at quarter end of getting all loans matured loans renewed.
Did the conversions on these in October and November.
To push them out Interestingly you know we announced the steel last January we thought it would be more conservative to push it out thinking COVID-19 would be really bad in the summer and then it would get better.
And so what happened is that happened actually is COVID-19 was increasing.
So just a lapse of lapse internally of getting them to our public company quarterly discipline, but it was not it was just sort of an array of of.
The of loans that matured across those banks.
Got it that makes sense great. Thank you.
Sure.
And our next question comes from the line of bear the gasoline from Titan Capital. Your line is open.
Thank you Oh my questions are around the mortgage business. What do you view is of a normal level of origination activity and.
I'm thinking in terms of the gain on sale.
That's hard to answer I don't know that debt.
Our mortgage even if we had our mortgage person here I'm not sure that's such a cyclical industry number one number two Nashville, such a hot market. It is unbelievable how many people you meet here that are moving here from California, Chicago, and New York I mean, it's just it's phenomenal and so.
So I want to give you an answer but I don't want to give you a wrong answer I guess, what I would say and I wish our mortgage person was here I might be off a little debt bill.
But I think for us of normal year would be I don't know four of $500 million of annual production.
And you know this year I don't have the exact number in front of me, but I think we were up land, maybe seven or $800 million and production and so just a phenomenal year, but.
Does that get you in the right direction.
It it does that's a that's quite helpful. And then I'd like to take this a step further and another I guess, some semi unanswerable sort of question.
What level of interest rate do you think that you'll see the mortgage at one mortgage refi slowdown and and two the purchase activity where it actually starts the starts to hurt to.
Our current real buyers.
That may be better for us and I hate for everyone to not get the answer but that may be better for us to do a follow up one on one because I don't want to speculate and it would really would be better for us to get that information from our mortgage had heart weatherford, but.
Certainly all of us across the country are benefiting on this refi boom and you know you hear this in every cycle. Even a couple of years ago. You heard gosh every loan is kind of been refi, so theres not going to be any refi opportunity.
Think people move and change houses so much I'm finding that theres always an opportunity.
But certainly you would think though it's going to run out one of the things that I think is great about cap star.
If you look at this page we have up right here.
I don't know when are they seeing the same page. The page 11 page 11, Bill in your I, Didnt know and you're learning our day.
Gives you a little bit, but more about the trend and the.
The trend in the revenues and how you know the third quarter was was a record quarter.
Yeah, So what what what I was going to say that the the refi for us. The refi is is 60% roughly in these quarters, but historically for cap star.
The beauty of cap stars mortgage shop is it's been a purchase money shop.
Absent this last 12 months.
I'd say, the $4 million to $500 million range with probably 80% purchase money.
And with the with the size of Nashville, and the growth of Nashville, I think theres, a very good core mortgage business here.
Benefiting by the excess right now.
Great. Thank you and I do want to pick up on your point that you have people moving from Nashville from a it sounds like around the country is that different in some way or is it simply a continuation.
The other trend no acceleration, it's just it's that's just normal Nashville.
I'd say, it's an acceleration so what's the difference.
Is for instance, I moved here say 18 months ago, and I'm going to forget.
I think it was mitsubishi's two that come to mind, well three three of that come to mind and I know other cities are experiencing this but this is one of the five or so cities that are really experiencing it.
Right. After I came I think it was Mitsubishi that's moving their north American headquarters from California to here.
Was way pre Covid Barnes there was alliance Bernstein and then there was Amazon, let's build the big building downtown. So there are several of that that already was occurring pre COVID-19. What's happening now is I'll give you a couple of examples just quickly.
It's it's it's non company related there are people that are quitting their jobs and just packing up and moving so we unfortunately lost an outstanding banker as happens at the beginning of the year and we hated to see that person leave and we've already replaced them with somebody that's going to start.
Monday with the same background.
Sort of National health care of lending, it's the person's background and they just moved here from California, and they've been here two weeks and when you ask them why they came here their daughter's in school at Indiana University, which is just right up the road and just all of that's going on in California. So that had nothing to do with the company that person just wanted to change.
<unk> had launched this week with a gentleman that grew up at Goldman Sachs started his own fund and advisory business and moved here last summer due to Covid no taxes in Tennessee, you know Manhattan is tough right now and brought three girls and his wife here.
Has 14 employees managers $400 million and took an office space right next doors and went to lunch with them and so.
I went to the dentist recently and they told me some of the off a little bit I said are you all back to full staffing they said absolutely full for reservations and everything they said that this is one dentist office. They said theyre getting five new calls of months of people, saying are you taking new patients and.
They said that they are all coming from California, Chicago, and New York. So I would say the change Bill has gone from the companies, saying, while we want to lower cost place that our climate better place to live for employees to where there's individuals that are just saying you know Unfortunately, it's time to leave of larger city and I want of new play.
And I'm sure. There's other places like Charlotte, our Austin, Texas, but Nashville is getting their share and I think it's the climate. The excitement I think it's the no state income tax of lot of reasons.
Great. Thanks for all of the perspective.
Sure.
And we have a follow up question from Liam Burke from Piper Sandler Your line is open.
Hey, guys just a quick housekeeping thing here I was wondering if you could share with me the level of P. P. P fee income this quarter.
Yes would you know.
No.
You mean, the PPP accretion.
Yes, we don't have to look that up.
Let's follow up on that I don't know that we have that number of exactly right here on the sheet, but Graham we could fall off the 69 basis point, if anybody else wants that but certainly there is P. P. P accretion coming in kind of create the alone granted accreted granted accreted, a nine or eight cents.
The of P. P P accretion into the margin. So if you if you want to do that eight basis points basis points I'm, sorry, eight basis points into the margin. So if you want to do that math you can do it for I'll be happy to.
I'll be happy to get that for you.
Later, okay, okay great.
The types of eight basis points on the margin would give you the amount of PPP accretion that came in in the quarter and then alright. That's great. We can we can follow up after the call on I guess other PPP details about 20 about 20 million I think of P. P. P loans that were forgiven and then.
<unk>.
Or reduced or whatever and so.
We have still remaining at the end of the year of 182 million of PPP loans that will ultimately here very soon be.
Being forgiven or paid or whatnot now you're also gonna have you know we're in the middle of the next round of PPP. So we're going to have some more of this coming in so.
Okay, Great. That's helpful Day, I'd answer it okay, great. Thanks Yep.
And I'm showing no further questions at this time I will now turn the call over to Tim schools, President and CEO for any closing remarks.
Okay, well I just want to thank everybody from calling in and I want to thank our employees you know cap star had a wonderful year and we've had a lot going on for a while you know the.
Unfortunately, we had our chief operating officer passed away at the end of 18, CEO transition and Athens was acquired and so to accomplish all we did last year, it's just phenomenal and I think it speaks highly to what we can continue to do so we just appreciate you all following US you know it's going to be another interesting year.
<unk>, we're going to continue to work hard for our employees and our communities and our shareholders and we look forward to updating you after first quarter.
So everybody stay healthy and we'll talk to you at that time. Thank.
Thank you.
And ladies and gentlemen. This concludes today's conference call. Thank you for participating you may now disconnect have a wonderful day.
[music].