Q2 2021 Enterprise Financial Services Corp Earnings Call
Good day and welcome to day U S earnings.
And now I'd like to turn the call over to President and CEO and Mr. Jim Lally. Please go ahead.
Thank you Victoria and good morning, and welcome to our second quarter earnings call.
I appreciate all of you taking time to listen and and joining me this morning.
[music] Turner, our company's Chief Financial Officer, and Chief operating Officer, and Scott Goodman, President of Enterprise Bank and Trust.
Before we begin I would like to remind everyone on the call that a copy of the release and accompanying presentation can be found on our website and were furnished on SEC form 8-K yesterday.
Your day, please refer to slide 2 of the presentation titled forward looking statements and our most recent 10-K and 10-Q for reasons why actual results may vary from any forward looking statements that we make this morning.
Please turn to slide 3 for the financial highlights of the second quarter.
Second quarter was an outstanding.
And in quarter, 4 our company reflected and our record earnings of $1.23 per diluted share this compared favorably to 96 cents and 56 cents for the linked and prior year's quarter.
Respectively. This level of earnings produced a return on average tangible common equity of 18, 4%.
During the quarter, we experienced solid organic loan and deposit growth.
Loans net of P. P. P. Paydowns grew 278 million or 17% on an annualized basis from the linked quarter more importantly, though this growth came from several different markets and specialized businesses.
Scott will provide much more details around this but I wanted to comment that our focus will be to continue to invest and our higher growth markets in the southwest and southern California and <unk>.
Ample this is the recent team lift out to open a commercial banking office and Las Vegas, Nevada. This will be complemented by growth from our more mature Midwestern.
Stern regions, and it's slightly higher and local GDP and the consistent high performance of our sponsor finance tax credit and L. I P. F teams.
I'd be remiss, if I did not and mentioned the continued stellar performance of our SBA team, who have performed at a very high level since we announced the seacoast transaction just about.
So.
Focus execution and matching the needs of the markets with the features of the 7 day program have led to this success.
Deposits to saw a nice increase compared to the linked quarter, increasing by 124 million, mainly driven by a continued activity and our specialty deposits.
Out of yours.
Not only are we pleased to resume growth a growth posture during the second quarter, but we continued to maintain both price and credit discipline amid the growth on that note. Our credit statistics remained stellar compared to a year ago, we saw improvement and just about every asset quality category.
These improvements are reflective of a modest allowance release during the second quarter.
And we'll provide much more detail around this and his comments.
The strength of these operating fundamentals supported an increase of our dividend by approximately 6% and the repurchase of $12 million of stock.
During the quarter.
In addition to all of this I'm happy to report that we closed on the acquisition of first choice Bank Corp last week less than 3 months after our announcement.
As we discussed during our first quarter call. We are extremely excited about this expansion and the southern California market and we will discuss our progress there.
Free calls.
Turning to slide 4 you will see that the systems and cultural integration of first choice is a key area of focus for us for the remainder of the year.
Our focus also includes loan and deposit growth the leveraging of our P. P P opportunities and executing on the work force opportunities.
<unk> to further improve our business.
I would now like to turn the call over to Scott Goodman, who will provide much more detail on our growth and the performance within our markets and specialized businesses Scott.
Thank you Jim and good morning, everybody.
If you turn to slide number 5.
And as you heard from Jim we posted solid organic loan growth of $278 million and a quarter or 17% annualized net of the activity on triple P.
Overall this reflects successful execution of our growing pipeline that had been building steadily this fiscal year across numerous different.
Our business units and specialty channel.
This detail and is further broken out on slide number 6 and 7.
But overall our business owner clients are generally optimistic and actively positioning their companies for growth.
And while some headwinds still exist and fully translating this activity.
And as loan growth and all areas. Our business model is now, allowing us to lean into geographies and specialty lines that are benefiting from improved economic activity.
Following a prolonged period of successive quarterly declines and balances on lines of credit.
Average usage on these lines have leveled out.
And Q2.
With Triple P forgiveness, well underway and the COVID-19 related obstacles diminishing.
And this is our more actively utilizing their buildup of cash reserves for working capital and investment purposes, and this behavior should eventually move us closer to a more normalized loan demand and the.
<unk> 2 C&I book.
Our specialty business lines of SBA lending and sponsor finance, both performed exceedingly well and the quarters.
And the SBA business continued the momentum and had carried through from last year up $70 million and the quarter and on an annualized growth pace of over 25% year to date.
General and favorable programs and increased awareness of the benefits of SBA loans are creating more activity from referral sources and better opportunities with business owners.
Sponsor finance activity is extremely robust with deal flow already outpacing that of the full year of 2020.
Capital inflows to the private equity markets elevated purchase multiples and a growing number of willing sellers are creating higher volumes of senior loan requests from our sponsor and network.
Consistent relationship based approach with our sponsor base has positioned us well to be the bank of choice for many of these deals and.
And resulting.
So it's tax credit lending and life insurance premium finance also continued to post steady growth and performance.
These businesses have proven to be somewhat immune to the COVID-19 and economically induced obstacles that impact some of the other areas.
Affordable housing programs in particular continue to be well received across both sides of the political aisle.
And are either being expanded or implemented and many states.
Yes.
From a geographic standpoint.
Our Midwestern markets, St. Louis and Kansas City have the largest general C and.
Basis and.
And have been the most impacted by the aforementioned headwinds.
And both markets, we continued to retain high valued clients growing net new relationships and seeing increased CRE activity.
Both markets also showed improved trajectories in the quarter and.
And I call positioned to grow near term revenue.
We continue to successfully repositioned and new Mexico loan portfolio through selective retention and.
And growth of profitable commercial real estate relationships, while also nurturing a highly valued base of low cost deposits there.
And our what we're beginning to phase in our proven and C&I brand to better target, the small and midsized private operating businesses and the new Mexico Submarkets.
Turning to Arizona.
Arizona posted another quarter of strong loan activity in Q2 and is now grown over 25% year over.
We are all new business includes a mix of C&I and CRE acquisition refi and development.
Some examples include.
Multifamily.
Neighborhood retail and.
And self storage on the commercial real estate side, as well as relationships with and architectural service company and a local franchise.
Operator.
We believe that strong regional economies, such as Phoenix, Las Vegas, and Southern California, and provide long term solid and consistent opportunities for organic loan growth.
Moving to the funding side total deposits were up 124 million for the quarter.
The increase is attributable to steady net new relationship development, we're consistently opening more accounts and we are closing.
As well as growth and the deposits specialty segments, which are outlined on slide number 8.
As a reminder, these specialties were mostly acquired through the seacoast merger and.
And you to perform at a high level since integration.
These businesses, which include community and homeowners associations and commercial property management and third party escrow also have a higher component of noninterest bearing accounts, which have helped push our mix and this category to 36% of the total deposit base.
And it can take now I'd like to hand, the call over to Keene Turner for his comments.
Thanks, Scott and good morning, My comments begin on slide 9 and and shows our earnings per share trend for the quarter.
We reported second quarter, net income of $38 million compared to $30 million and the first quarter.
And we increased earnings from 96 cents.
And diluted share to $1.23, and the second quarter, which is a record level for the company.
The increased earnings per share were driven by higher net operating revenue, which represented 18 per cent per share predominantly through big and increase in revenue as well as contributed.
Pretty moderately lower credit costs.
I am extremely pleased that our second quarter performance reflects the efforts to accelerate our performance to pre pandemic levels.
Our organic loan growth and accelerated and we continue to see the benefit from the seacoast acquisition.
The recently announced the acquisition of first choice brings.
The additional opportunity to accelerate both earnings and balance sheet growth.
Turning to slide 10.
Net interest income was $81.7 million compared to $79.1 million and the first quarter.
Net interest income accelerated from loan growth and the deployment of additional liquidity into.
Listen and disciplined portfolio.
While we continue to benefit from loan fee income on PPP forgiveness.
Mt and recognized has decreased and each of the last 2 quarters.
Did that and loan yield excluding PPP trended modestly upward and the current quarter to $4.3 zero percent.
Overall.
The and valleys with net interest income and margin performance, which have both been as expected slide 11, and provide some clarity on the moving pieces for the quarter, which includes continued liquidity build once again.
Most importantly, the fundamentals of net interest margin and principally for US loan yield has continued to perform as expected.
And remains stable and the linked quarter, both inclusive and exclusive of PPP loan.
We don't see any near term changes in either of the trends and liquidity or component of net interest income.
Encouraged the 17% sequential loan growth and a robust start to essentially replacing the $8 million.
And we run rate of net interest income from PPP.
Though our ability to consistently achieve this level of growth and the third and fourth quarter remains uncertain. We are increasingly optimistic that we'll be able to continue to grow the portfolio of loans and net interest income and a more acceptable rate overtime.
Slide 12 depicts our.
Credit quality position as of June 30, which is continuing to be stable as we move further away from the start of the pandemic.
We haven't experienced a relatively low level of charge offs outside of a slight increase last quarter.
Net charge offs were under $1 million or 5 basis points annualized and the level of nonperforming assets was 44 basis points.
As at June 30 day.
The continued improvement and the macroeconomic forecast and the stable credit performance of our portfolio.
<unk> and a negative provision of $2.7 million and the second quarter.
The provision combined with loan growth also caused a slight decrease and our allowance coverage ratio.
Slide 13 reflects the moving pieces.
The allowance for credit losses, which totaled $128 million or $1, 77% and total alone.
At the end of June compared to 1.8% at the end of March However.
However, excluding guaranteed loans the allowance to loan ratio was 2.09%.
Excuse me.
We continue to believe that maintaining a strong allowances prudent due to the combined continued risk posed by COVID-19, and the potential impact of small businesses when government support programs like PPP come through and M. <unk>.
Moving forward the allowance and provisioning levels will continue to be impacted by forecasted economic metrics. In addition to our credit performance.
Pieces and on Slide 14 fee based income was strong across all categories, as we reported $16.2 million and the second quarter compared to $11.3 million in the first quarter led by tax credit income that rebounded from the first quarter level.
Elevated activity levels and service charges and card services also contributed to the quarter.
<unk> over quarter strength, while our private equity distributions and a gain on the sale of other real estate also bolstered the quarter.
Turning to slide 15, and excluding merger charges core operating expenses were higher in the second quarter at $55 million compared to $49.8 million and the first quarter.
Most of this increase is reflective of the improving level of income and our fee based businesses specifically the increase in cash management and card services expenses and a period.
This was partially offset by lower compensation due to seasonally higher payroll taxes and the first quarter.
Or is it related costs declined to $2 million on first choice.
Compared to $3 million and the first quarter over quarter, which was related to COVID-19.
However, with the closing of first choice merger costs will increase over the next few periods as we worked through integration.
Our capital metrics are shown on slide 16, we grew tangible book value per share, 14% on an annualized basis.
And the $26.85 per share through a return on average tangible common equity and excess of 18%.
The strength of our balance sheet and our earnings profile supported our decision to repurchase shares through our recently announced share repurchase plan.
During the quarter, we repurchased over 250000 shares and an average price of $47.
And we continue to Opportunistically manage our capital position through share repurchases.
We also announced the <unk> <unk> per share increase and our dividend and the third quarter all.
All of these actions reflect our strong balance sheet position and increasing optimism and our ability to continue to sustain and expand our earnings.
And with all that said.
Our capital retention rate is high and affords us the opportunity to continue to be nimble and flexible as we move forward.
We have successfully executed on our business model as well as a robust M&A strategy and the results are reflected in our financial performance. This quarter, we generated a pre provision net revenue of $47 million.
Or 1.9% on average assets.
Which is an increase of nearly $7 million from the first quarter looking.
Looking forward. The first choice merger is the largest and our company's history and following closely on Cecos commerce. It further fueled our growth capability, while strategically providing the ability to scale the balance sheet and grow EPS.
We have worked hard to create sustainable foundation for the company with differentiated lending strategies.
Fee income sources.
Stable and low cost deposit base and an efficient operating structure, we will be working in the coming periods on the integration of first choice and expect it to further expand on our strong second quarter performance.
Thanks for joining the call today, and we're now going to open the line for analyst questions.
Thank you if you would like to ask a question. Please signal by pressing star 1 on your telephone keypad.
Using a speaker phone please make sure your mute.
Mute function is turned off to allow your signal to reach our equipment again press star 1 to ask a question, we'll pause for just.
Hello, everyone and opportunity for questions.
Our first question comes from Jeff <unk> with D. A Davidson.
Good morning, My name is Clark and I'm filling in for Jeff.
And I was just wondering if you could provide some more color on what where the loan yields were on new production versus the existing.
Thomas and portfolio and how this how this is gonna look like for the total for the because it looks like you know yields are flat with new production and it but it is holding up well.
Yeah. This is keene and I appreciate the question, but the new loan yields are actually helping us to maintain.
Maintain a stable yield.
And just where they are actually slightly above now all cash.
Caveat that by saying when you look at the categories and which we had growth in the second quarter, namely SBA and <unk>.
Sponsor finance those are typically higher yielding segments. So at least as it relates to the current quarter and if we continue.
And so the production heavily weighted that way I would expect that will continue to be able to modestly expand loan yield moving forward.
With those categories. The caveat would be if we start to see additional production proportionately.
Proportionately and life insurance and other areas that have a slightly lower loan yield back and bounce around a little.
We are also seeing a modest benefit and continued improvement and the cost of deposits as we shift more heavily to DDA with growth and the specialty so I don't expect anything trending.
Either way, but some of that ability to defend the loan yield does depend on what category that Tim.
Got.
Bit you and then just for clarification what is it typical yield for the SBA portfolio currently.
Sorry, I was I was muted I was actually looking for that and we'll have.
And to circle back with you on that and I'm going to say, it's over 4% at this point.
Got it thank you very much.
Rate quarter.
Thank you. Our next question comes from Damon Delmonte with CBW.
Hey, Good morning, guys hope everybody is doing well today.
Good morning Day. My first question. Good morning, So my first question.
And it just given that the first.
The first choice deal closed.
And my model earlier than I had expected I thought it would be later in the third quarter.
Can you give a little perspective keen on and what we should look for for a quarterly expense rate.
Yeah. Good question Damian so.
The forecast for first choice expenses.
And is around $13 million in 2021, and then it's about $14 million and 2022 pre cost savings, so youre going to get almost a full quarter of that 13 million, obviously here in the third quarter and fourth quarter.
With that said and we will start taking costs out so.
First quarter 'twenty 2 run rate is just going to be over a little bit over $10 million.
And and some of that phasing and so I don't have exact color on how much cost savings, we will get this quarter versus next.
But I expect that it will be enough to offset.
Normal growth rate, you would expect and the underlying.
Enterprise and 50 million dollar expenses.
Got it Okay, and then just kind of a technical question. I think you had mentioned that there was like a p/e distribution that was recorded this quarter was that in and other non interest income and if so how much was that.
That's correct.
And I think that was around a million and a half dollars.
We typically have some of that that was a little bit larger 1.
And at 1 point in time, but that's something that over the course of a year, we would expect that level to occur and 1 or more quarters.
So.
Consumer.
The strong fee.
Income for the second quarter here, along with a rebound and the tax credit revenue.
Got it okay.
And that's all that I had for now I'll step back. Thank you.
Thanks Damon.
Our next question comes from David Long with Raymond James.
Good morning, everyone.
Contributed and thanks for taking my question.
And I wanted to talk a little bit more just about your traditional commercial and industrial line, there and and can you talk about the competitive dynamics and you see them in.
And that are you are you.
Seeing increasing pricing pressures.
And there's a lot of banks are struggling too.
And grow loans, right now and and how are you reacting to that.
And this is Scott I can take that 1.
And I think it's been competitive and the C&I sector and so I don't know that I would say, it's more competitive but it is extremely competitive.
St Louis and Kansas City, and particular deep markets.
TNI.
Growth is typically moving relationships when there's an event and I.
I think we've seen.
Some opportunities there we've grown net new relationships pretty consistently I think triple P and particular helped introduce us to some other operating.
That's for services that.
And now that forgiveness is behind a good number of those clients.
Some of those opportunities I think are more in front of us.
Thank you.
Your question was more on pricing and.
And I think we're seeing pricing is about as low as.
And I've seen it I don't know that.
Theres much lower to go we take a relationship based approach, though so.
And we'll provide the working capital lines and the term debt, but we're also going to get the fee business and the long term deposit business that overtime, we can produce a profitable and sticky relationships. So.
And I'm not sure if that's exactly answered your question, but that's kind of what we're seeing.
No Thats, what I was looking for just to get some additional color there on that card. So okay, and then I wanted to shift gears and talk about M&A for just a second but the first choice deal now closed and integration ahead of you.
And how soon can you be back in the.
The M&A market and.
Maybe talk about what would be the ideal.
Ideal acquisition candidate now and maybe even by geography, where would you and where do you feel like you'd like to add to that critical mass.
Yeah, David This is Jim.
And like I said certainly are.
Our focus near term is really getting.
First choice integrated well and we've done a good job with seacoast. This year, we're seeing the benefits of doing something well so that will be our focus that being said.
There are a select few companies that we would certainly.
Take keen interest to the extent that there was an opportunity.
And as I've said in previous calls we approach it.
Like we approach our sales and sales process, which is a process is building relationships and understanding timing and things of that nature and there are a select few that we would say okay. Let's.
Let's stop and take a closer look.
As it relates to geography, I think when we said as you know.
So our current markets always makes sense.
And so to the extent and we can build out from there certainly we would look at.
And but really it's finding the best fit to continue growing.
The businesses and the culture that we've started so we've shown that we can go to a new market. If we if we need to.
And that certainly makes sense to build on what we have.
Great. Thank you for that commentary guys appreciate it.
Thank you.
We'll take our next question from Brian Martin with Janney Montgomery.
Hey, good morning, guys.
Brian.
And maybe Jim and I don't.
And you could talk a little bit about just the lift out of the Las Vegas team and he talked about if you could give a little bit of Colorado, and maybe can't whomever Scott you know what day.
And that's Scott Scott handle that 1 Scott if you would.
Yeah, sure Hi, Brian.
Yeah. This is a team that we reached out to be a a connection hum.
Seacoast.
And to their market leader and you know I think as Jim mentioned, we hired a team of 3 pretty seasoned commercial bankers.
From a regional competitor you know someone that we overlap with and our southwestern markets.
Their focus is very similar to ours and private business local commercial real estate.
You know experience range of between 10 and 20 years for all 3.
And they were really just you know they liked our model and watched what we did with seacoast and first choice and it was it was very attractive.
Active to hook up with us and grow and when the profile of Vegas, and what we see there we think.
It's a really good growth market for both C&I and CRE. So we're excited about it.
Got you, Okay and then.
Maybe 1 more Scott just you mentioned I think and the utilization that it kind of it sounds like it's stabilized here I guess is your expectation that it that can pick up a bit and the second half it sounds like that's the case ready and you see much.
And the change there and the near term.
Yeah, Brian and I guess I just looked at it as a positive signal you know after so many successive quarters of declines on the lines of credit at pretty much leveled out and I think you combine that with again forgiveness.
And Triple P and I think we're seeing.
Especially larger companies you start to use their cash balances.
So that tells me eventually you know.
Liquidity is going to run through the system and should result in continued loan demand I think there certainly optimism there from business owners and.
About the economy I think the headwinds are.
<unk> labor and supply chain, which should be shorter terms. So you know it was just a signal to me that.
C&I will be headed the right direction.
Got you. Okay. That's helpful. And then maybe just 1 or 2 for Keane and <unk>, just the core margin and the quarter I think he said things were pretty much as expected. This quarter. Just how are you thinking about that.
Over the next couple of quarters with with the transaction closing and just kind of your commentary about loan yields.
And hopefully holding up and.
On that front.
Yes, I think.
And the underlying part of my comment there was absent any growth margin would theoretically drift lower a couple of basis points a quarter.
I think theres certainly optimism that we're going to continue to get some some core growth and there were S.
And and other specialties look like they will continue to be strong so.
And that bodes well for stable underlying core NIM and then first choice when we announced.
And we still believe.
The pro forma impact on margin is 10% to 15 basis points sequentially.
High level given when its clothing here early in the third quarter. When it's closed early in the third quarter.
It's probably 10 basis points, you'll see sequentially and then it probably.
Really won't be a notable difference from <unk> to <unk> when you've got the full quarter. So that would generally be and my expectation on margin and I do expect that we will continue to be have solid defense of net interest margin.
Despite whatever happens with with overall excess.
Cash moving forward just simply because of the loan yield has been holding up and we're really not seeing any pressure on the deposit side.
Okay, and then the core loan yield that you build off of I guess, just when you frame up the core loan yield.
What level are you considering core today that gets added with seacoast.
Yes, the loan.
Loan yield ex PPP is around 4.3%.
And so that that's got 5 or so a bit Senate from.
And from PPP.
Gotcha, Okay. Okay.
Okay. That's helpful and just the last 1 for me Kim was just on the fee income can you just I.
I know you talked about the private equity distribution, but there's some other moving parts and there with mortgage and I know you've got the Cte and then you've got swap fees, but just could you frame up kind of whats a realistic level to think about with all the moving parts just in general can you give any color on.
And how we should think about that as it may be a little seasonality and <unk> at the taxes, but.
What do you consider this.
Reasonable level or is it and elevated level this quarter given.
You do expect some continuing private equity distributions and some of the other Cds and stuff.
Yeah, I think the 16 at least as it relates to what I'll call the middle quarter.
Pretty strong.
I.
I would say, it's probably a couple of million dollars excuse me a couple of million dollars heavy.
And with particularly the private equity distributions and that's in there I think that that's the way I would think about it in and kind of 3 Q and then <unk>, we would expect another strong performance from seasonal tax.
Credit activity driving it a little.
Up from that level. So that's generally the way I'm thinking about it certainly we're happy with the performance of the businesses that you mentioned that we're starting to see increased activity and and then some of the other businesses are a little bit.
Episodic so to speak during.
Okay.
Gotcha, Okay, and I appreciate the color and thanks for taking the questions.
Thanks, Brian.
We'll take our next question from Andrew Leisch with Piper Sandler.
Hey, good morning, everyone.
1 of the things that I was encouraged about.
During the year the deposit growth this quarter, especially on the specialty side and.
And so you can point to specifically that drove that and and.
And how does that pipeline and look for more funding coming in.
Andrew This is Scott and I can I can take that 1.
Think we're really encouraged by what we've seen really since we.
Since we integrated that business its been steady.
And if you look at what I'll call. The 3 main business lines there HOA.
Commercial property management, and third party escrow, which were seeing growth pretty consistently and equally from all those channels. So.
And you know, there's obviously still a lot of cash and the system.
And we have really good relationships with some of the larger.
HOA companies, so we're continuing to get our fair share there.
And third party escrow that was a fairly new business with seacoast really brand new when we brought them on board and they've really been able to execute.
<unk> their business plan. There was a couple of folks that have done that on other bank platforms that we're able to convert their relationships and bring in that business. The way we plan. So.
To me there is optimism there theres no reason why that can't continue the pipeline shows that steady and.
Fairly low cost of funds.
And I think we feel good about that long term.
Got you is there any seasonality and any of these businesses.
I would say Theres minor seasonality and the HOA property management and I would say, it's just more related to summer just.
Sensitivity.
But nothing major in terms of of swings.
Okay. So I guess its growth can continue here if I look at the rest of the funding base is there are there is there like any non relationship funding that this could have been so we replace and either low yielding accounts and can improve the deposit mix over time like.
How are you looking at.
Holistic approach of funding here.
Yes, Hi, Andrew and he can comment Okay. Go ahead, sorry go ahead.
I would just say certainly.
Reliance on wholesale funding has become a lot lower there is third broker and sources that we're working on weaning ourselves off.
Some of that was contractual certainly brokered Cds things like that so I think our view is that this can help stabilize.
And it will allow us to be much more disciplined.
And and less aggressive with increasing deposit rates as rates increase so whereas.
And because they might have been more sensitive on the deposit pricing side because of a high loan to deposit I think this gives us more confidence and a broader base as we move forward and also more confidence and our ability just to generate and.
Yeah.
And enough deposit growth to keep up with what we expect to be.
Whereas we have robust loan growth as the economy improves.
Got it.
That's really helpful. Thanks for taking the questions.
Thanks, Andrew.
We'll take our next question from Jeff <unk> with D. A Davidson.
Hi, there Clark and I appreciate it.
And I was just wondering if you brought in more detail and nonperforming alone increases that happened this quarter looks like there was 6 million and Moody's pandemic related.
Yeah Clarke this is Doug Bauer Chief Credit Officer.
I would tell you that a portion of the increase and nonperforming.
Loans was related to a $2 million loan.
That road 90 days past due and was included in the nonperforming bucket that loan subsequently has been paid off and full and closed out here and in early July.
Lies there were just really are.
Particular.
And for me related credit that we saw go into nonperforming status and beyond that there really wasn't much activity.
Awesome, Great to hear and then just my other thing that is hard for you guys was and terms. This is a dollar amount on the the other real estate gain is that and miscellaneous income and do you have that.
Aggregate offhand.
Yeah, it's it's less and $1 million I believe so you know it might be a penny.
Got it.
Thank you very much appreciate it.
Thanks for your questions.
Thank you that concludes today's question and answer session I'll turn this back over.
Figure out your demand and you forget Schneider for closing remarks.
Thank you Victoria and thank you all for joining US today and your continued support of our company and look forward to talking to all of you again at the end of the third quarter have a great day.
Good day, thank for your participation.
You may now disconnect.