Q1 2021 Atlantic Capital Bancshares Inc Earnings Call
Good day and welcome to the Atlantic Capital Bank first quarter 2021 earnings conference call.
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I would now like to turn the conference over to Gray Fleming Chief Risk Officer. Please go ahead.
Thank you Andrew and thank you all for joining us for our first quarter 2021 earnings call with me today to discuss our results are Doug Williams, Chief Executive Officer, and Patrick Oakes, Chief Financial Officer, as a reminder of the Atlantic Capital earnings release, and Investor presentation are available in the Investor Relations section of our website.
We wish to caution you that we will be making forward looking statements. During this call and that actual results may differ materially. We encourage you to review the disclaimer in the earnings release dealing with forward looking information. This disclaimer applies equally to statements made on this call. In addition, some discussions may include references to non-GAAP financial measures the information.
About those measures, including reconciliations of GAAP measures may be found in our SEC filings and in our earnings release.
And with that I will turn the call over to the CEO of Atlantic Capital Doug Williams.
Thank you, Greg and good afternoon.
This afternoon, we will discuss our first quarter results using the first quarter investor presentation posted on our website and filed on form 8-K.
As is our practice I'll discuss the highlights of the quarter, Pat Oakes will review the financials in greater detail and Gray Fleming will give you an update on credit.
First I'd like to thank my Atlantic capital teammates all of whom of shareholders for their work in producing another terrific quarter of results.
Atlantic Capital reported Atlanta.
Atlantic Capital reported another quarter of strong revenue growth, despite lower interest rates and soft loan demand as.
As the economic recovery continues to gain strength, our borrowers performance has improved which has resulted in a reduction in the allowance for credit losses.
We anticipate these trends in revenue growth and improvement in credit quality will continue over the balance of the year.
I'd like to begin our discussion about turning the page three of our investor presentation.
Yeah.
As you know over the last night, we reported net income of $13 $4 million or <unk> 65 cents per diluted share.
Taxable equivalent revenue increased 19, 5% annualized from the fourth quarter of 2020, and 15, 4% year over year.
Loans were up nine 9% annualized on the linked quarter basis, and up 19% year over year.
Quarterly average deposits increased 39% annualized from the fourth quarter and 40% year over year.
Notably the cost of deposits decreased 12 basis points compared to 16 basis points in the fourth quarter of 2020.
Credit quality improved remark markedly the provision for credit losses was a negative for $5 million reflecting.
Positive credit migration and an improved economic outlook.
Classified loans decreased 34 per cent for the fourth quarter of 2020.
Annualized net charge offs were four basis points of average loans and nonperforming assets decreased to six basis points of total assets.
Continuing on to page four.
Pre provision net revenue was up 13% year over year on the essentially flat from the fourth quarter.
With.
A shorter day count with seasonal expenses.
And goodbye.
Good momentum in revenue.
As I mentioned loans, we had nice growth in loans and deposits non.
Non interest bearing deposits were up 60% annualized from the fourth quarter of last year and 59% year over year.
We continue to build tangible book value on our capital ratios remain robust and indicative of a fortress balance sheet.
Turning to page five.
We are of commercial lender and we continue to see robust growth in loans for.
For the last 21 quarters of loans have grown 10% on the compound average annual basis, and commercial loans, those being commercial and industrial loans owner occupied and owner occupied real estate loans, which are about 60% of our total loan mix.
That's grown over those 21 quarters out of 12% compound average rate of growth.
Yeah.
First on page six we have a strong core deposit franchise.
On a strong growth in core deposits total deposits have increased 20.
1% on a compound average basis for the last 21 quarters and demand deposits of increased 28% over that same periods of time.
The growth in deposits is growth in treasury management and payment processing relationships and that's showing up particularly in strong deposit growth over the last year of more.
Moving on to page.
Seven we are Atlanta hometown business Bank, we focus on commercial clients and the individual's the value high touch relationships and expertise our three lines of business from the Atlanta market or commercial and industrial banking commercial real estate for the ups and private banking.
Commercial loans.
Or about 60% of on the total here as well.
And we continue to see solid growth in loans and deposits in our Atlanta franchise.
Turning to page eight we have a rapidly growing fintech and payments business.
We do business with Fintech.
Companies and paint and high volume payments companies across the United States and as you see from the graphs here, we have a rapidly growing recurring income stream from these businesses.
We are of top 40 originator of automated clearinghouse transactions. The last rankings from the automated Clearinghouse Association ranked us as 37 among banks in the United States for origination of ACTH transactions.
This is a diversified platform, we have of high volume Hgh business.
We are forming.
Partnerships with the number of financial technology companies were entering the card issuer business focus on debit and prepaid cards.
We recorded our first transaction this week and we expect that business to grow rapidly over the second half of the year.
We also have of private capital solutions team that focuses on providing treasury management and credit services for private equity funds, many of whom are involved in the financial technology space, but other industry sectors as well.
On this page you see the average deposits from these businesses have grown at a 42% CAGR over the last 21 quarters service charge income has grown at a 39% CAGR over that period of time and the growth has been particularly strong over the last year at 66%.
The loan balance as you see on the bottom right hand corner of the page here.
Include about $200 million of loans.
In the South lender credit builder program be sort of consumer installment loans secured by C. D and use the Atlantic capital for the balance of these loans or.
The capital call lines to private equity firms and some supply chain finance.
Oh patent books the.
Through the financials in more detail.
Thanks, Doug So I'm on slide nine and let me provide some additional detail on our income for the quarter.
Our strong results in the first quarter was driven by a $4 $5 million negative loan loss provision.
Revenue growth of Doug mentioned offset by some higher expenses. So there's revenue growth included 13% annualized growth of net interest income as we grew loans $52 million and investments of $78 million.
And an increase in non interest income from our continued strong growth in service charge income driven by as Doug mentioned, our payments and Fintech businesses.
Along with strong quarter for our SBA business.
The higher expenses were primarily driven.
Well, probably due to an increase of our personnel costs and I'll provide more detail on that the minutes.
So moving on to slide 10 balance sheet liquidity.
Our strong deposit growth has driven our loan deposit ratio to the low seventy's and has resulted in significant ex excess funds on the deferred that you can see that on the right hand side.
The average balance of deferred in the first quarter was around $560 million compared to a typical average of closer to $140 million.
In the first quarter, we did see a decrease of our transitory deposits, but these funds are replaced by additional growth in core deposits.
Atlantic capital similar to other banks has benefited from the extra reserves in deposits in the banking system, which has driven some of the deposit growth.
We've also built the franchise focused on growing low cost core commercial deposits. So I expect a good portion of the deposits to remain.
Our goal over the long term is to replace these excess funds with core loan growth, but that will obviously take some time, especially with the impact from reduction of PPP loans.
So in the short term, we intend we intend to continue adding to our core investment portfolio.
Along with investing a portion of the fed balances and other short term invest investments to enhance net interest income.
Moving on the slide 11 net interest margin.
The NIM in the first quarter was 881, the decrease of 10 basis points from the fourth quarter.
As the.
On the excess funds, we could continue to put pressure on on NIM. If you adjusted NIM for normalized excess cash the margin was closer to a $3 17.
This adjusted margin was relatively unchanged for the fourth quarter as long yield excluding PPP loans were down three basis points.
While we were able to reduce on deposit costs by four basis points.
As we continue investing the excess liquidity, we should see the NIM expand and more importantly, enhance our growth in net interest income.
Moving on the slide 12 with expenses.
The increase in expenses in the first quarter was primarily driven by as you can see the $2 million increase in personnel expense of about half of this increase whereas all the typical higher first quarter benefit expense and round two PPP loan processing related expenses, both of which will not be repeated in the second quarter.
The remainder of the increase was tied to higher incentive accruals along with the partial impact of eight new hires and merit increases.
The hiring in the first quarter was focused on adding staff to help support the strong growth we are seeing across multiple lines of business and we expect further heart in the second quarter, both additional support staff and bankers.
Overall, I anticipate expenses to be below $15 million for the second quarter and low double digit percentage of overall growth for 2021 compared to 2020.
Moving to slide 13 capital.
Our capital ratios remained strong even with the impact from the increase in deposits on the size of the balance sheet.
During the first quarter, we remained active with our share repurchase program, we repurchased 222000 shares at an average price of 18, 87, and we have $3 $1 million of our $25 million program remaining.
Now I'll turn it over to Greg.
Thanks, Pat I'll start on page 14 of the debt we.
We had a very good credit quarter.
With continued low charge offs and NPA.
As Doug mentioned that also like the highlight the bottom right chart on classified loans, which reflects some good upgrade activity on loans that were previously downgraded due to COVID-19 concerns.
Lots of five loan balance came down 34% from year end.
And the totals are now around pre pandemic levels as a percentage of total loans.
We're also continuing to talk more about upgrades and downgrades, which is always a good time.
We do I still expect to see some stress and some losses on the SBA portfolio as the stimulus programs roll off but as you know those losses tend to be smaller data line sizes and the SBA guaranteed.
Turning to page 15, as Doug also mentioned our allowance for credit losses declined in the first quarter due to a combination of positive credit migration and improved economic forecast. We do think that the reserves remained robust at 1.4 of 5% of loans, excluding triple P, which.
<unk> two one point of six on day, one under single.
This quarter, we discontinued the COVID-19 sensitive slide that we've used the last few quarters as we just arent seeing changes or stresses in those broad categories of what we've done instead is.
Included updates on our hotel and restaurant portfolios.
They're still discussed a good bet amongst banks on page 16, you can see the hotel summary of <unk>.
Certainly of portfolio, we continue to watch closely but at the hall of these properties have performed better than expected through the winter months and they are now feeling pretty good about trends going into the summer.
We've also had some upgrade activity in this book in the first quarter and we now have only about $1 million of classified balances in our hotel book.
The restaurants summary is on page 17, Thats just continues to be a story of <unk> that are performing very well the quick service restaurants.
The small level of full service exposure that we have is held up nicely as well.
Now actively looking at some new opportunities on a select the basis in the franchise space with brands that have proven their model works and this kind of environment.
Finally on page 18, I will touch on Triple pay you can see the balances quarter by quarter. There in the first quarter of this year, we funded about $73 million of round two triple P loans for our customers. We've also been ramping up forgiveness efforts and we had about $47 million of round one loans forgiven in the quarter.
<unk>.
We do expect a good bit of additional forgiveness activity in the second quarter.
But we also known as the desk will extend into 2022 for the round two loans.
With that I'll turn it back over to Doug for some closing comments.
Andrew will be pleased to take any questions now.
We will now begin the question and answer session.
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At this time, we will pause momentarily to assemble our roster.
The first question comes from Michael Rose with Raymond James. Please go ahead.
Hey, good afternoon, how are you.
Hi, Michael.
Good so I wanted to start with the.
The fintech and payments business. It seems like you guys have continued momentum there can you.
I know, it's still kind of in the earlier days, but can you help us just kind of size. What you think is kind of the the nearer term and then maybe the longer term revenue on.
Opportunity I assume that Wouldnt include growing the client base and maybe expanding geographically but.
Would just love any thoughts that you have thanks.
Yes, I would say generally.
Michael that the.
These trends that you see on page eight.
Our sustainable in terms of growth and I think the if.
We also have the possibility.
These trends will accelerate a bit as we move into the second half of the year on the 2022.
Some of these pinch of Fintech partnerships really come on line and we start to see of a lot of activity.
From from those relationships on the water loss of income from those relationships. So we're.
Really on the front end of of some significant.
Developments there.
Some of which are related to our card programs, which we were just beginning the launch.
So.
I think I think in terms of the growth here you see both in.
In deposits and in service charge income the.
These trends are.
Appear sustainable over the near to intermediate term.
And then is there a greater opportunity to maybe add for the products that you know you mentioned you are just getting started on the card side are there any other ancillary products or.
The initiatives that you guys can the rollout.
Well, we're always looking at things on a meal.
On the card program is the is a big step forward in terms of additional capabilities for this this market segment.
We're investing in and that we've.
We've really got a ramp up to take advantage of these opportunities that are available to us in the near line.
Intermediate term there.
On the private equity solutions team that we have that focuses on.
The private equity funds many of which are active in the financial technology space is another adjunct of synergistic adjunct two.
To that activity and there's an ecosystem there that feeds on itself in terms of referrals from that sort of thing so.
This is all part of the the broader fintech and payments business and the seems to be.
Providing a lot of fuel to to continue to grow the business.
Great that's very helpful.
Just wanted to move out the loan growth for it.
You guys said low double digits. It does seem like it's a little stronger than maybe what you talked about last quarter, but can.
Can you just give us some greater color on.
On the kind of where you expect the growth to come from thanks.
Yes, I think over the balance of the year, Michael we'll see stronger growth in the C&I and owner occupied real estate categories.
We saw pretty strong growth there in the fourth quarter, we saw a lot of activity of the first quarter the.
The pipelines in those.
Aspects of our business or as strong as they have ever been.
And of.
A lot of activity and the pipelines that range from sort of preliminary discussions the mandated transactions are very strong.
And we expect a lot of closing the activity in the second quarter and beyond.
These portfolios.
Do have a lot of churn of them.
Our commercial real estate business has a lot of churn traditionally and that seems to be have been the case from the first quarter. We know it's going to be the case in the second quarter as well.
So we're back.
Balances in the in the next quarter is hard to forecast at this point in time, but we continue to expect.
Low double digit.
The loan growth, excluding triple P loans for this year. So if you take the 12 31 'twenty balance you exclude triple P loans, and then compare that to the loan balance excluding the loans at the end of of.
2021, we think that will be in the low low single low double digits.
Okay, and then maybe just as the one last follow up to that with that ramp and growth in the in the buyback kind of nearing an end.
Would you guys expect.
Can maybe look to do more of that or.
These capital levels, which are being a little bit artificially depressed by the PPP loans I mean, how should we think about the potential for future share buybacks.
Perhaps you want to take that.
Yes, yes, so obviously well.
The pace of repurchases slowed down with the $25 million program, what you know.
Depending on what the stock price does we've attended five one plan in place, we will probably get through that this quarter.
And the commitment after that we've got as part of the board about what next steps are with excess capital on how we approach that.
I think the general of you as we'd like to stay in the market with buybacks, but you know what's the size of that going forward.
Anywhere near as large as we've had in the past, but I mean, the board of left to decide that the.
Next few months.
Along with other capital alternatives.
Alright that does it for me thanks for taking my questions. Thanks.
Thanks, Michael.
Yeah.
The next question comes from Jennifer Denver with Truest. Please go ahead.
MS. <unk>. Your line is open up I think maybe we're able to on mute. Please go ahead.
Yeah. Thank you Chris.
Pat you mentioned.
Your expense growth guidance could you repeat that I don't I don't think I understood. It right.
Alright, I couldn't hear it too well.
Sure sure.
So I gave some guidance around second quarter debt, we expect expenses to be back below $15 million.
And then for the year.
Looking at double digit percent overall growth for 'twenty one versus 'twenty.
Okay.
Great.
Yes.
Yes.
You guys of our student debt.
On to your loan growth right now.
What are your clients, telling you in terms of zone.
Overall demand celebrating the second half of the year, that's what the interesting things to be waiting on what.
What are you hearing directly from the clients.
Yeah, our clients performance continues to improve as evidenced by the credit quality metrics from shared with you and we also hear that our clients are making investments.
Anticipating the curtailment of the spread of the virus sort of the dissipation of the spread of the virus and the.
Sure seed through the pandemic and seen good investment opportunities and they're willing to pay.
Invest in those opportunities and borrow money accordingly so.
A lot of a lot of discussion of a lot of activity.
Again, the second half of the year it looks like it will be particularly strong.
If this if the strength of the economic recovery sustained and.
At this point, we have growing confidence that it will be so we're going for.
Quite optimistic view of the second half of the year.
In terms of the economy in terms of the health for our borrowers and in terms of loan activity.
Okay last one on.
Thank you.
You saw some hotel loans.
Great and the court.
Give us a little more detail there.
Okay.
Yes, Jennifer this is great. So we had a few properties that we downgraded because they were last year because they were impacted from an occupancy standpoint, maybe more than others.
A couple of those have for various reasons based on the nuances of their location or some of the.
Work they've done the better market the property you have.
Held up very well and beat their own expectations.
Even through the winter months and so.
And a couple of those cases, we have upgraded maybe from classified two special special mentioned.
And you know of even looking at kind of potential next steps there. So it's better than expected performance and in some cases.
Back to pretty solid cash flow levels.
Thanks, so much.
Thank you Jennifer.
The next question comes from Stephen Scouten of Piper Sandler. Please go ahead.
Hey, good afternoon, everyone.
Good afternoon.
I'm curious maybe this would be more for Pat I guess do you expect to see any sort of near term outflows on the deposit side.
I know traditionally you've said there is not really seasonality, but sometimes the kind of feels that way in the first quarter and some of the ACTH deposits and so forth move out of D. Do you expect to see any of that or is this a good base. The group continue to grow deposits from.
We did see some of that in the first quarter, but it was replaced by core growth. So yes, I think you could see some of that but it depends on the level of growth with our core deposits were continuing to see pretty strong growth. So.
I guess the best guess you could say this is probably a pretty good base for us longer term, we will see how much excess deposits are built on banks' balance sheets, but I don't think that's kind of leave anytime soon the leased this year. So.
This is probably a good a basis of any at this point, we are looking at some wholesale broker deposits that will be running off throughout the rest of the year, but.
Theres just not of lot of wholesale deposits for us to move off so.
Got it got it okay helpful and I just wanted to confirm that the.
The total of the I think it was 455000 PPP related expenses will not be repeated is that right.
Well so there's two pieces to that one is on contract labor expenses that flowed through personnel expenses that will not be repeated we also had some professional fees.
We continue to use some third parties to help with forgiveness. So I don't think it'll be as big as the 200000, we saw in the first quarter, but there will be continued to be a little bit of that probably for the next few quarters.
Okay got it and then just maybe last one for me.
Obviously the stock has been.
On a great run and you guys have put up great results for the year I think maybe you know one of the top performing bank stocks in the industry. This year.
Does that change your view any on capital planning or the idea of potential M&A as an acquirer. Obviously, we just saw two bank deals kind of in and around the Atlanta market here today I'm just curious if that changes your view or you continue.
Continue to better opportunities for organic growth.
Good question Steven.
I would say first of all with respect to capital management alternatives.
Obviously as the share price continues to rise and we think we still have some more room to go given our performance and given our outlook.
The buying back the stock and having it.
Advantageous from a tangible book value per.
Specter of diminishes.
We said that we think of supported the remainder of the market with the program of some size and so I would anticipate that as we exhaust this program that will be back to our board with authorization for another.
We also continue to consider other capital management.
Alternative to include the possibility of for regular dividend.
You mentioned the acquisitions, obviously the currency has gained some strength.
But we really don't see at this point any desirable or complementary.
Acquisition opportunities.
And.
Given the the rate of organic growth that we're experiencing and building and anticipate.
We think really the best opportunities to create value or to continue this pace of organic growth and that's one of the reasons for telling you of the expenses a little bit higher than we thought they would be because we're seeing these opportunities and we need to invest in.
In pursuing those opportunities with.
Bankers with the support people with technology and compliance support and the like so.
We're spending more money, because we see more opportunity and we anticipate sustained revenue growth.
Higher trajectory than we've seen in the past.
That's very helpful. Doug. Thank you guys for the time congrats on a great. Thank.
Thank you.
The next question comes from Steve Conry with G Research. Please go ahead.
Hey, good afternoon.
Good afternoon.
Wanted to start with the the big the big increase in non interest DDA looks like it was attributable at least partially to the fintech and payments business just kind of wondering what drove the the big acceleration this quarter versus prior quarters was there anything sort of specifically.
Coming on board.
I don't think there was anything specifically on board that I can identify in the first quarter of your list.
Really the continuation of the development of new business.
And the fact that our existing clients have become more liquid.
So that's really driven the core deposit growth overall, but particularly the DDA growth we have a week.
We gather deposits the.
Treasury management services and <unk>.
One of the areas that we provide the treasury management services and those high volume payments Arena and the spin Tech Arena. These are very complex relationships or larger relationships.
But they are fundamentally treasury management relationships like we have with our Atlanta based clients and so forth. So.
We just we've been very fortunate to be able to grow the business even through the pandemic.
Our people are really.
Chomping at the bit to get on the airplanes and staying in hotels and the.
Develop more business.
Youll see that as we move forward.
Okay very good actually wanted to ask you about that next so and the expense commentary on the press release. There is talk about eight new hires just kind of curious as to like where are the expansions that are coming in at kind of in what in what business signs of areas. Yeah, those are predominantly and support.
Functions to support the payments and Fintech business.
Again, we're ramping up hard programs, we're seeing a lot of growth opportunities there.
We're spending money to support that growth and sustain that growth.
Okay very good.
And then maybe finally, so consumers not really a big area of focus for you guys. Although it does continue to grow fairly nicely, including in this quarter, maybe any any sort of commentary on the composition of that book.
Yeah, it's about $200 million and it is this the self lender credit build of program. These are consumer installment loans.
For targeted toward individuals who have damaged credit you want to build of credit record.
And these are loans that are secured by Cds bigger payback over over on an installment period.
But these deposit balances in the Cds.
And the deposit balances I think are doing.
250 $270 million or so.
Compared to the loan balance of about $200 million right now.
Okay, Okay very good thanks.
Again, if you have a question. Please press Star then one.
The next question comes from Christopher Merrimack with Janney Montgomery Scott. Please go ahead.
Hey, Thanks for taking the call this afternoon.
Wanted to ask dog of whomever can the answered just the thought about your concentration in real estate and construction.
Historically, it's been low in capital still really strong you know is there more tolerance to do more here and is that another source of loan growth beyond what we've just seen.
Yes, it's a good question, Chris and it's certainly an opportunity for us I think.
Great you can validate these numbers or the specific about these numbers, but I think are on.
Our concentration of these will be the 300% guideline or limit is about 180%.
And on construction the 100%.
Limit were about 36% I believe so we do have a lot of capacity and.
And we think we've got a very good commercial real estate finance business.
The staff really world class commercial real estate finance professionals, we have a very attractive client base. There they are very active.
And we generate a lot of activity we've grown the construction commitments in particular.
At a very fast pace, the last two or three quarters here and we expect those balances the funding up over time.
But theres a lot of churn in that portfolio as well these are institutional caliber projects and developers.
Still a deep pool of of permanent capital out there of these assets are sold or the refinancing of the permanent market.
So we anticipate the debt refinancing churn will continue.
But we'd like to do more we have capacity of LIBOR and we'd like to do more of its very competitive business, we're seeing some.
Pressure on credit standards on pricing there.
But.
We are for.
Currently.
And diligently looking for more opportunities, we'd like to like to grow that business at a faster pace.
Great do you have out there.
Okay I'm.
I'm sorry.
No. That's okay and then my follow up I, just had to do on the Fintech business and I. Just wanted your color about kind of the barrier to entry that you see today compare to where it would have been six to eight quarters ago.
Uh Huh that's of Great question.
We think the barrier to entry of client satisfaction.
And we've we're learning and we're seeing that we have very satisfied clients. They continue to do more business to us and they can and we continue to grow our business really by referrals as much as anything else. So we've developed a very good reputation as a reliable processor on that business with.
You know strong of competitive Treasury management capabilities go on with that.
So I think the you know the biggest barriers of entry there is customer satisfaction and reputation and we're fortunate to have built a good reputation and have loved for satisfied clients.
Okay, and then last one for Greg just has to do with the hotel business and would it surprise you if hotel of pay off start to happen just because of other competitors that are out there that will lend higher terms is that possible.
I think of it is possible Chris.
We've we've heard or seen some funds that are out there looking to make opportunistic acquisitions.
And so there's definitely kind of circling.
Going on around there I think right now.
A lot of our operators and the reason that they have kind of been buying through this as they had cushion in terms of access to capital and access to liquidity and so they have been in the position. Unfortunately to kind of ride this out without feeling pressure to consider of sale.
And so I think that theyre not going to be interested in and you know fire sale type prices.
But I.
I definitely could see there.
Moving to be some interest and acquisitions in that space, particularly for ownership groups that are of.
A little less patient.
Thanks for the interesting thing on hotels, I think is going to be as we get into the summer.
And the the.
The challenges for a lot of hotels, which is also on the case with <unk>.
Probably full service restaurants more than <unk> is.
As demand comes potentially roaring back in some markets are that kind of be able to staff appropriately to meet to meet that demand.
I think from our perspective, all of our perspective, that's a good problem to have but I have heard a number of folks on both hotel and restaurant Industries Express concern about me.
Being able to properly staff at the right time to meet what could be some surges in demand.
Got it thanks, Greg appreciate it thank you Doug.
Thank you Chris.
This concludes our question and answer session I would like to turn the conference back over to Douglas All Williams, President and Chief Executive Officer for any closing remarks.
Thank you Andrew and thank you all for joining US. This afternoon, we had another terrific quarter strong revenue growth on a strong improvement in credit quality and.
And we see these trends as sustainable over the balance of this year and into 2022.
So look for more good news from Atlantic capital. Thank.
Thank you again for dialing in and please let US know if you have any questions, we'll be glad to entertain the thank you.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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