Q2 2021 Sandy Spring Bancorp Inc Earnings Call
<unk> of significant uncertainties because of these uncertainties Sandy spring Bancorp actual future results may differ materially from those indicated in addition, the companys past results of operations do not necessarily indicate its future results.
Thank you Aaron and thank you all again for joining us today to discuss our second quarter financials.
We are pleased to reported another strong quarter and we're now 1 year beyond our acquisition of Revere Bank and the benefits that strategic partnership continued to contribute to our overall performance and.
And the same goes for our acquisition of Rembert Pendleton, Jackson or RP, Jay quarter after quarter, our results validate that adding our PGA to the Sandy Spring Bank family was the right move and across our entire wealth group, including our P. J West financial services in Sandy Spring Trust, we've seen impressive year over year growth.
Overall, our company is in a great position and let's start by breaking down some of the highlights from the press release, and then Phil and I will talk you through the supplemental information we also issued today.
Today, we reported net income of $57.3 million or of $1.19 per diluted share for the quarter ended June 32021.
This quarter's result compares to a net loss of $14.3 million or <unk> 31 per diluted share for the second quarter of 2020, and net income of $75.5 million of $1.58 per diluted share for the first quarter of 2021.
Core earnings were $55.1 million of $1.16 per diluted share compared to $51.9 million or $1.10 per diluted share for the quarter ended June 30 of last year and $56.9 million of $1.20 per diluted share for the quarter ended March 31 of 2021.
The provision for credit losses was a credit of $4.2 million compared to a credit of $34.7 million in the linked first quarter.
The current and prior quarters provision credits were primarily the result of an improved economic outlook, including a decline in the forecasted unemployment rate.
Phil will talk to you through the provision credit in more detail when we review of the supplemental materials.
Shifting to the balance sheet total assets declined 3% to $12.9 billion compared to $13.3 billion at June 32020. This decline.
It was primarily the result of the net reduction of $179.2 million on loans originated under the Paycheck protection program.
And the $251.5 million decline in the residential mortgage loan portfolio, given the robust refinance activity.
Excluding PPP total loan growth compared to the linked quarter was 1% with 2% organic growth growth within the commercial book.
Year over year, we saw non PPP commercial loan growth of 4% and commercial real estate loan growth was 6%.
We continue to operate in the season of lower commercial line utilization higher runoff in significant borrower liquidity.
At the same time, we have momentum as we look into the third and fourth quarter.
For instance quarter over quarter gross commercial production increased 300 million or 61% and funded production increased $214 million of 75% and our pipeline looks equally as strong heading into the third quarter.
It is important to note that the higher run off we experienced in the first and into the second quarter was driven primarily by success achieved by our clients as well as traditional refinancing into the life company market, but not the result of the loss of client relationships.
On the deposit side of things deposits increased 2% during the linked quarter driven by 6% growth in noninterest bearing deposits.
Deposit growth was 8% during the past 12 months as noninterest bearing deposits grew 16% and interest bearing deposits grew by 3%.
This growth was primarily driven by PPP and to a lesser extent growth in core deposit relationships.
CPP related deposit retention continues to be strong and we estimate that approximately $990 million or 62% of the combined round, 1 and round 2 PTP deposits are still on the balance sheet.
With 81% of these deposits still being retained and customer checking accounts.
Noninterest income increased 15% or $3.3 million compared to the prior year quarter as wealth management income grew 20% and service charges on deposit accounts increased 62%.
Bankcard fees grew 42% compared to the prior year given increased transaction volume.
Other noninterest income also grew significantly as a result of the full payoff of a purchased credit deteriorated loans as well as contractual vendor incentives.
Wealth management.
From an income increased $3.3 million year over year as a result of the first quarter of 2020 acquisition of our PGA and 8 out of $118 million growth in assets under management across our 3 wealth franchises.
We have exceptional professionals and industry experts and our P. J West financial services, and Sandy Spring Trust and they continue to attract new clients deepen existing relationships and deliver sophisticated service in this highly competitive market.
Well the mortgage banking income in the first 2 quarters increased $4.5 million compared to the same period last year mortgage banking income decreased from $10.2 million to $5.8 million compared to the linked quarter.
The overall level of mortgage banking income in the second quarter should hold up as we approach the second half of this year.
We are extremely pleased with our margin this quarter. The net interest margin was $3.63 for the second quarter of 2021 compared to $3.47 for the same quarter of 2020 and $3.56 for the first quarter of 2021.
Excluding the impact of the amortization of fair value marks derived from acquisitions. The current quarter's net interest margin would have been $3.60 compared to $3.19 for the second quarter of 2020 and $3.46 for the first quarter of 2021.
The strength of our margin continues to be driven by our ability to effectively manage our cost of funds as our core margin adjusted for PPP and fair value of impacts expanded on a linked quarter basis from $3.42 to $3.49.
This was supported by a payoff of all remaining <unk> advances during the quarter as well.
Noninterest expense decreased <unk>.
$22.5 million of 26% compared to the prior year quarter the.
The prior year's quarter included $22.5 million in M&A expense as well as $5.9 million of prepayment penalties from the liquidation of acquired <unk> borrowings. These.
These reductions from the prior year more than offset this quarter's $4.7 million increase in salary and benefit expenses, which was driven by staffing increases and annual Merit awards that occurred this quarter.
The non-GAAP efficiency ratio was $45.36 for the current quarter compared to $43.85 for the second quarter of 2020 and $42.65 for the first quarter of 2021.
This modest increase in the efficiency ratio from the second quarter of the prior year was the result of the 11% growth in non-GAAP expense outpacing the 8% growth in non-GAAP revenue.
Lower levels of gain on mortgage sales, coupled with strategic initiative based increases in personnel costs and technology related consulting fees drove the linked quarter increase in the efficiency ratio.
Looking ahead, we continue to manage this expense to revenue metric to of targeted range of 48% to 50% as PPP revenues eventually abates and we continued to make strategic investments in people and technology.
When we provide you a little more color on what's playing into these expenses were.
We are making strategic staffing and technology investments to build a platform for future growth facilitated an improved client experience and helped deepen client relationships.
Specifically of rebuilding an omnichannel digital platform with back base and implementing an enterprise wide integration layer with the company called <unk> soft.
Which enables the design and build of Apis to support the fact based project.
We're also creating a holistic data infrastructure and all of this is being done with Salesforce dot com, serving as our main hub for everything we do.
For all of this work, we will achieve a more seamless integration with new technologies and will have the flexibility to move to a new core system should we decided to make that type of move.
At this stage, we are ramping up on the staffing and consulting front to support this work and we will continue to update you in the future on our progress.
Shifting to credit quality nonperforming loans decreased from 94 basis points from the linked quarter to 93 basis points and increased from an increase from 77 basis points in the second quarter of the prior year.
Nonperforming loans totaled $94.3 million compared to $98.7 million for the first quarter of the year.
New loans placed on non accrual during the current quarter were 1 million of $5 compared to $27.3 million for the prior year quarter and 421000 for the first quarter of 2021.
Loans on non accrual status at quarter end included a few large borrowings within the hospitality sector with an aggregate balance of just under $41 million.
These large collateral dependent loans had individual reserves of $5.7 million at quarter end.
And we recorded net charge offs of $2.2 million for the second quarter of 2021 compared to net recoveries of 367000 for the second quarter of 2020, and net charge offs of 300000 for the first quarter of 2021.
The increase was primarily a result of the charge off of an income on acquired pre pandemic problem credit.
The allowance for credit losses was 124.
Millions or 1.3% of outstanding loans, and 131% of nonperforming loans compared to $130.4 million or 125% of outstanding loans and 132% of nonperforming loans at the linked quarter.
Excluding PPP the allowance for credit losses, as a percentage of total loans outstanding decreased to 134% compared to 143% at the linked quarter.
All in all credit quality has remained very solid and the team has done a terrific job managing through the last several quarters.
As a result of the accumulated earnings over the preceding 12 months tangible common equity increased to $1.2 billion of $9.2 8% of tangible assets at June 32021, compared to $983.4 million of 763% at June 30 of 2020.
Excluding the impact of the PPP program from tangible assets at June 30, the tangible common equity ratio would be $9, 98%.
Given the strength of our earnings and capital position, we are likely to be active under our share repurchase program in the coming months and we also continue to build relationships with both banks and non banks as part of our M&A strategy.
At June 30, the company had total risk based capital ratio of $15.8.
The common equity tier 1 risk based capital ratio of 12, 5% of tier 1 risk based capital ratio of 12, 5% of tier 1 leverage ratio of 9.5.
And we will now turn to the supplemental information. We also issued this morning.
Sure.
On slide 2 you can see that loans with payment accommodations as of June 30 totaled $216 million, resulting in 2% of our loan portfolio of receiving accommodations compared to 3% in the linked quarter.
As we noted in the press release, 93% of the loans that had been granted modifications or deferrals due to pandemic related financial stress and return to the original payment plans.
Moving to slide 3 we have detailed specific industry information, which we've updated and share the past 5 quarters outstanding balances for each segment and the loans and payment of accommodations are as of June 30.
On slides 4 and 5 we broken out where we stand on forgiveness for round, 1 and 2 of the program as of July 19, 86% of round, 1 loans have applied for forgiveness and 99, 6% of all forgiveness application submitted to the SBA have received full forgiveness.
On slide 5 you can see we're in the early stages of a round 2 forgiveness and we expect those efforts to continue throughout this calendar year.
Now I'm going to take a break and turn it over to Phil can talk you through seasonal and our capital position.
Thanks, Dan and good afternoon, everyone.
On a pick up on slide number 6 where we have our waterfall representation of the movements in our allowance for the second quarter of 2021, which is broken down into the day to have components of reflect the key drivers of the change during the quarter.
The change over the course of the current quarter was primarily driven by the reduction in the projected near term level of the unemployment rate, which as you know is the key economic factor in our seasonal methodology.
This element of reserve release was offset this quarter by an increase due to adjustments to certain qualitative factors.
And also an increase of $3.2 million in specific reserves.
On slide 7 is the comparison of our current and more recent economic forecast variables are seasonal methodology continues to use the Moody's baseline forecast that for the second quarter was the version that was released by Moody's on June 21.
This baseline forecast the integrates the effects of COVID-19, and portrays an unemployment rate for our local market that is essentially already peak.
And ultimately recover to a level of 312% in the second quarter of 2023.
Which is protected unemployment level that would continue to improve.
But at a slower pace than in previous quarters.
Additionally, the projected levels of year over year growth in business bankruptcies and the changes in the.
Home price index as presented contribute to the provision credit for the quarter.
Our key at Mac are key macroeconomic variables of further outlined on slide 8 and.
In determining our reasonable and supportable forecast period, we continue to use of 2 year time horizon to the.
Reflect less uncertainty in the long term outlook look outlook at this time.
Similar to the approach taken in previous quarters, we continue to not take into consideration any potential mitigating factors.
Just on what could be perceived as the positive outcome or impact of government programs, such as PPP et cetera.
We feel very comfortable that this continues to be the right conservative stance.
Conversely, we have chosen to continue to include an additional qualitative factor related to concentration of risks and we believe could exist in certain higher risk industry segments of our portfolio.
Slide 9 provides some additional granularity related to our reserve from a portfolio of you where you can see that all of our major categories of commercial loans with the exception of a D&C reflect the continuing trend of reserve release.
We should note that the 1.6% of reserve reflected here for commercial business loans includes PPP loans and the balance although there is no reserve required on those loans.
As illustrated in the footnote at the bottom of the slide when adjusting the balance to exclude PPP loans outstanding the reserve on our commercial business segment would be 2.2% to 6% and our total reserve would be 134% of our total loans.
Finally on slide 10 is the trend of our prudent capital ratios with some brief explanations regarding the treatment of certain items and their impact on the result did ratios included in those comments as an adjusted tangible equity to tangible assets.
To reflect the impact of PPP loans on the current measure.
We feel confident about our capital position as all of our metrics continue to improve as the result of the strength of our earnings this quarter.
We've also recently updated our capital stress test, we have constructed our baseline and severe forecast scenarios utilizing the same Moody's baseline forecast incorporated in our seasonal calculations and.
And the Covid based export economy in the severe case.
We view our overall capital position is strong which allows us to consider the various capital deployment strategies.
Some of which Dan mentioned in some of his earlier comments.
And back to you.
Thank you Phil.
Beyond our financials I just have a few other updates to share with you today last quarter I reported that we were beginning to welcome more employees and clients back to our branches and offices and those efforts are well underway.
On nearly 2 months ago, our branches fully open to our clients and no appointment as needed to access our more than 60 branch locations I should.
Note that our clients came to appreciate our enhanced drive through capabilities. During the pandemic. So those expanded options will continue to be available at all of our drive through locations.
Non branch personnel was also back on the office at least 50% of the time and we will expand in person operations. After the labor day weekend. However.
However, we will continue to offer our employees increased flexibility and remote work options.
Sandy Spring also continues to earn local and national recognitions for the third year in a row Forbes named Sandy Spring Bank, 1 of America's Best in state banks and the number 1 bank in Maryland, The Washington Post also named US top workplace for the third consecutive year.
These recognitions and our strong financial results are only made possible by our remarkable employees on.
The majority of whom are shareholders as well so on behalf of the executive leadership team. Thank you to all of our people for your tremendous contributions to the success of our company and our culture and we look forward to continuing to come together and finishing 2021 strong.
This concludes our general comments today, and we will now move to your questions.
So operator, we will take the question. If you can please identify your name and company affiliation as you come on the line that would be great.
We will now begin the question and answer session to ask a question you May Press Star then 1 on your telephone keypad.
You are using a speakerphone please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then 2.
At this time, we will pause momentarily to assemble our roster.
And our first question comes from Casey Whitman of Piper Sandler. Please go ahead.
Hey, good afternoon.
Good afternoon, Casey Casey Hi.
Hi.
So any update from just the range of the core margin over the back half of the year from the the 349 or so range that you had on this quarter.
Yes, I would.
I would probably.
Give you that.
Most of that core margins, most likely going to compress a bit here as we move through the.
Third remaining half of the year, probably $3.43.45 range is where I would put the true core.
We're getting to a point, where the fair value piece of things is only a basis point or 2 difference anyway. So we're going to be pretty close to the absence of PPP impacts from quarter to quarter will be pretty close to reporting that kind of of course, we move move forward anyway, but I would go $3.40 to $3.45.
Okay, and we saw a big.
Jump in the demand deposits non interest bearing deposit this quarter, but what are you sort of a year later part of your thoughts on how long those deposits.
With you or how are you thinking about liquidity on the back half of the year on how that plays into the margin commentary.
Yes, Casey I think that.
The first of all as day.
Dan mentioned in his comments, we're still carrying a significant amount of PPP related deposits.
And in our internal projections.
Well first of all we're at 61% of 62% of of what we think was the total to begin with today, our internal projections of always had that.
Finally, bottoming out at maybe 30% to 35% of the originally.
Original or or oriented.
Deposits from those originations and so you could see some of that just naturally if our projections on that area come down.
Could eat into the liquidity position.
We certainly know that we're sitting on a much larger kind of cash and the interest bearing <unk>.
<unk> predominantly with the fed here at the end of the quarter than we normally would I think it's probably about 600 million DAU of 4% of assets, which in comparison on a lot of other banks I believe is still fairly small relative to the size of our balance sheet.
But I think that our first deployment of that over time here through the end of the year would be through additional loan growth that I'm sure. We'll talk about here before we're done.
As well as we do we are sitting on about 7% of our total deposits and brokered of which about $300 million of that is brokered Cds and.
And about $250 million of that is scheduled to mature in the next 6 months. So we've got some different levers there too to look at is the.
How to absorb that of excess liquidity here for the rest of the year.
Got it do you have any idea of how much of that $250 million.
Pos.
Got it.
The average about 7 basis points.
Okay. So it's fairly inexpensive to begin with but nevertheless, the.
It's somewhere in the range is.
About 10 basis points for any 1 of those blocks.
Okay.
Understood.
Turn the conversation quickly before I hop off to the fees.
First of just wondering can you remind us the expected impact of Durbin on the bankcard fees of 1 that is going to occur for you guys.
Yes, it doesn't actually occur for us now until next year. This time.
And I think our estimation on that is.
3 of $5 million, if I'm not mistaken.
Okay.
Yes.
Yes.
Alright, Thank you I will let someone else hop on.
Alright, thanks, guys. Thanks Keith.
The next question comes from Catherine Mealor of K VW. Please go ahead.
Thanks, Good afternoon.
Hi, Katherine on CASM.
Phil you teed up the loan growth conversation, so I'll start there and just wanted to get your your.
On your thoughts on where you think loan growth can improve tier in the back half of the year.
Okay.
Yeah Casey this is Dan good afternoon the.
What we saw on the in the second quarter and focusing my comments predominantly on on the commercial book.
And as I said in my prepared remarks, we were on our production was about $300 million north of.
Of where we were in the first quarter and to put numbers on that taken it from about 490 to over $790 million and production and our pipeline going into the third quarter should point to a pretty consistent level of production.
So all of that to say is we still feel pretty good about that.
On mid single to a little north of that single digit growth in the commercial book just based on the contraction we saw on the first quarter.
The only other thing that would that could modify the overall loan growth picture is if.
Of course, along the lines of what we do with some of this excess liquidity, we could choose to hold some additional mortgages on balance sheet.
And that's probably something likely that we would do for the remainder of the year, which would wed like the we'd like to see our mortgage balances kind of get back to where they were.
Which would allow that the commercial growth to make a little bit of a greater impact force.
Okay.
Yeah.
On.
On my follow up question is just kind of wondering how youre thinking about the M&A landscape today, we've seen a number of acquisitions.
The smaller and the southeastern states.
How youre thinking about M&A potential for you all.
This environment.
Yes.
We are certainly thinking about it and as well as of.
Building on continuing to build relationships with.
With the with those that we think might be good matches for us so.
We're certainly not on the sidelines.
And we will look at transactions that we think will benefit the franchise and further our strategic goals.
I think our.
As we probably mentioned before I mean, our our kind of the circle geographically is.
Probably goes north in the southern down down through Richmond.
West into the Shenandoah Valley, and then all the way to the Atlantic and that's kind of the.
The immediate area that we're focused on on building relationships.
But M&A is going to be of part of what we do as it has been the last few years.
Great.
And that's all got very straightforward quarter. Thank you.
Thanks Catherine.
The next question comes from Brody Preston of Stephens, Inc. Please go ahead.
Hey, good afternoon, everyone.
The variety.
Hey, I was just hoping to touch on.
Just maybe utilization rates then you mentioned they remain sort of near historical low levels, just wanted to get a sense for what that utilization rate percentage is and where that stacks up relative to this time in 2019.
Sure.
We are.
Give you an idea of.
Where we are as I pull out my.
David here, because I don't want to misquote.
So on.
On the commercial side.
And of the end of 12.
<unk> hundred 31 of <unk>, we were at 26% utilization rate.
That dropped to 23% at the end of the first quarter and then just slightly under 23% as of 630 and.
And to give you some context.
The normal for us and that tends to range anywhere from the 35% to 40% range. So that's the.
The Big Delta is between kind of what's normal and it's and it's drifted down a bit here in the last couple of quarters.
Got it okay. Thank you for that.
And then I did want to ask.
Just on you mentioned some of the investments that you've made on the expense side and then so I guess.
Just you mentioned the <unk> partnership and so I wanted to just ask about the nature of that partnership or are they helping are they helping you build apis to allow you know other fintech or bass platforms.
Sort of connect to you or is it whereas of course meal soft of the vast provider with its own set of Apis, that's allowing you to partner with Fintech. So just kind of help me sort of understand a partnership.
Yes.
Great question, Neil soft is actually building.
What we refer to as the integration layer.
The net and net and then we will work with us to build the Apis.
To allow that connectivity to be much more effective than than what it is today, but theyre actually the integration layer.
The company for Us.
Okay got it.
And then.
I guess, just maybe on that so is this kind of $63 million or so in core expenses that the.
On the run rate from which we should build off of moving forward or will there be some ebbs and flows there Phil.
Yes, Brady I would I would say there'll be some ebbs and flows.
And I think we made of talked about this in the last quarter in terms of just looking.
Down the road.
Year over year.
Growth in expenses.
Taking the current quarter and Annualizing, it and looking for it to grow 4% to 5% from there it won't be even just because some of the spend will be in certain periods.
And some things will get capitalized on some things 1 but and on then reabsorbed into the run rate. So I would use that as a general.
View towards the towards the future here in terms of what that what that number will look like in total expenses.
And then it would probably continue to be growth in those areas.
Just reported as well related to both personnel.
Cost as well as.
Consulting professional type fees and things that are all I'll kick together in support of the visa. These.
These various initiatives.
Okay understood.
And then just on the on the loan portfolio could you remind us what percent of the loan portfolio is floating rate and then what percent of that floating rate portfolio is currently at 4 levels.
I think the answer to the first part of the question continues to be somewhere between 25 and 30% of the total.
Portfolio.
I don't I don't know that I can tell you exactly what percentage is currently.
Residing at the floor is I'd have to I'd have to research that for you to give you the appropriate answer Brody.
Okay understood.
And then just 1 last 1.
Maybe for Dan just 1 of the get a sense from you guys as to how youre thinking about permanently repositioning of the deposit base here. So last cycle. You know you had an above average deposit beta and a big chunk of that was due to due to the time deposits, which of which you've run down here similar to other bank.
But are you also kind of thinking about shifting away from money market exposure or how do you kind of get customers to maybe stay more in transaction oriented the accounts as opposed to money market because of the money markets can be pretty high beta as well.
Yes, I think that I think the money market piece of of the business will always be part of what we do given given our cash.
And of the demographics of this market.
In the us, particularly in the retail book, but I think the strategic answer to your question is our ability to continue to drive small business and commercial relationships.
And and that's where we've got a tremendous amount of emphasis today and we know that thats the.
The by far the most valuable piece of of what we can create from the deposit book.
And the teams the teams doing a solid job of that and but that's where we would be focusing our energy.
Great. Thank you all for taking my questions I appreciate it.
Thank you everybody.
Once again, if you would like to ask a question. Please press Star then 1.
And our next question will come from Erik Zwick of Boenning and Scattergood. Please go ahead.
Good afternoon guys.
Hi, Eric higher.
Firstly I just wanted to check and make sure I heard something right from the prepared comments did you indicate.
That you thought the second quarter run rate for the mortgage revenue was kind of a good base to use for the second half of the year.
You did hear that correctly, yes, okay, great. Thank you.
And then in terms of the PPP loans with regard to the round 1.
Do you have the dollar figure of the remaining fees on that portfolio I may have missed that I didn't see it on the slide.
Eric This is Phil I don't believe that that particular number was on there, but given the the term of those loans and how close we are working through that Theres probably.
Only a couple of million dollars left of the fees that are related to round.
Round, 1 PPP loans the majority of the fees that are still yet to be <unk>.
<unk> related to round, 2 and I think that numbers in our deferred account is around $19 million.
Okay. That's helpful. I appreciate it and then.
I'm just curious if that was looking on slide 6 at the at the waterfall.
Table and kind of curious about the $3.5 million for the change in in qualitative factors could you just provide any color to what changed within.
Those factors and then I think Tony you May have also said that you've added a new additional qualitative factor to the model and any color on that as well if I heard that correctly.
Yeah actually Eric we had added we had added or adjusted some of the qualitative factors of couple of quarters ago.
We're related to trying to recognize that the.
The additional potential risk in in predominantly the segments like the hotel industry or whatever where we felt there were higher risk levels of.
Of things relative to 2 though so we kind of beefed up those factors around certain industry segments.
Really did add that this quarter, we had out of that before so it might have sounded like we had here.
But that wasn't the case I think that the increase in the actual factors. This quarter were due to some some other concentration levels that hit us.
In a couple of places I think might've been a couple of credits the pop through on the <unk>.
Acquisition development construction portfolio, if I'm not mistaken.
The bumped up the bumped up the.
The basis points that we assigned into that area relative to the size of that portfolio to.
The overall overall portfolio into.
The way, we look at it relative to capital so that that was really the.
The Genesis of that additional piece of this quarter.
That's helpful. Thanks, John and then just last 1 from me kind of tying back with some of the earlier questioning on the on the loans.
And what the growth may look like in the back half of the year and I. Appreciate the color on the pipeline just curious if maybe you could add a little bit on the composition of the pipeline between kind of commercial and consumer from that perspective.
Yeah, everything I talked about with regard to 2.
Pipeline being level is of was all commercially related.
The the other the other kind of main consumer loan outside of mortgage that we generate are on the home equity side and as you might imagine given refinance activity that portfolio has been under pressure from a balance standpoint. So.
So the pipeline pipeline going into the third quarter is really level with what it was going into the second quarter give you so still good momentum.
That's helpful. Thanks for taking my questions. This afternoon.
Thanks, Eric Thanks.
This concludes our question and answer session I would like to turn the conference back over to Daniel Schneider for any closing remarks.
Great. Thank you and thanks, everyone for taking the time to participate this afternoon.
We love to get your feedback on these calls so you can E mail your comments to IR at Sandy Spring Bank Dot Com I Hope you all have a great afternoon.
The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.
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