Q4 2021 Northeast Bank Earnings Call
[music].
Thank you for holding your conference call will begin momentarily. Thank you for whole day Your conference call will begin momentarily.
Charlie Thank you for your patience.
Yeah.
Yeah.
Okay.
Yeah.
Yeah.
[music].
Yeah.
Okay.
[music].
Yeah.
Yeah.
[music].
Yeah.
[music].
Okay.
Good day, everyone and welcome to the northeast Bank financial year, 2021 fourth quarter earnings results Conference call.
All of.
This call is being recorded with US today from the Bank is Rick Wayne President and Chief Executive Officer, JP, Lapointe, Chief Financial Officer, and Pat Dignan, Executive Vice President and Chief Credit Officer.
Last night in the Investor presentation was uploaded to the bank's website, which.
The reference in this morning's call the.
And can be accessed at the Investor Relations section of northeast make dot com under events and presentations you may find it helpful to download the investor presentation and follow along during the call.
Also this call will be available for.
We will for our test on the website for future use.
The question and answer session for this call will be conducted electronically following the presentation.
Please note that this presentation contains forward looking statements about northeast bank.
Forward looking statements are based upon the current expectations of north.
For every Spanx management and are subject to risk and uncertainties actual results may differ materially from those discussed in the forward looking statements northeast Bank does not undertake any obligation to update any forward looking statements. At this time I would like to turn the call over to Rick Wayne. Please go ahead Sir.
Good morning.
Thank you all for joining us today.
With me are JP Lapointe, our chief Financial Officer.
Pat Dignan, our Chief Credit Officer, and Executive Vice President.
After my comments.
And J P S.
The key Pat and I would be happy to answer any of your questions.
We turned out to.
The slide.
Page 3 titled Financial highlights.
I wanted to discuss a little details some of the items.
And here.
First let me leave with the headline.
For the quarter.
We had $21.4 million of net income and cash.
For the year.
$71.5 million.
For the quarter EPS was.
Dollars and 54 cents.
For the year $8.55.
For the quarter, we had return on equity.
Of the 37, 97% of state under 38.
For the year of 37 point.
2 the 4.4%.
And return on assets for the quarter of.
For 5.5%.
And just about the same at 4.53% for the year, obviously incredibly strong numbers that we're very proud of.
How do we get there.
For the cause of for the let me talk first about the quarter and then I'll talk about the a year for the.
The quarter.
We grew the total loan volume this is bank wide of 700 and <unk>.
$10 million.
I'll do a little rounding for this conversation that includes triple.
Hey.
For the quarter.
Originated $114 million of loans in our national lending business.
1 of <unk>.
The old net growth of $50 million or an increase.
10 of the half percent over the.
Ripple linked quarter.
On the purchase side, we purchased the reinvestment of $34 million.
And the at a price of 95% and with pay downs that was more or less flat.
For the quarter, our average deposits.
We're.
For 41 basis points.
Down from 74 basis or excuse.
Isn't that down from that.
As comparison of 74 basis points for the entire year.
It's been the little time talking about NIM.
Because with the.
They have done of Triple play it gets a little confusing.
The confusing the calculation.
So if you look at the highlights page now I'm talking about for the quarter.
The NIM under GAAP was $3.99, a shade under for cause.
This was highly influenced by holding Triple P loans.
On our balance.
Sheep for some time.
So we provide a second a number of for NIM of $4.55.
I would point out this is not GAAP, but its information really helpful. We believe in this calculation we removed.
The amount of interest income from Triple T.
While the held them on to our balance sheet, because we only get 1%.
And then of course, we removed.
For the 30, the cost of funding those which were generally 35.
The points.
From the fed.
Window.
And of course of the average triple play of loan balances. So when you look at that we get $4.55, but there's 1 other component again, non-GAAP, but information really helpful.
Tax debt, we have a lot of cash there.
Runs through our bank because all.
All of the loans that are forgiven the loans source has.
The payments are locked box and they get.
So we have and they go to a bank and therefore.
Sure.
Checking accounts the part of our deposit account balances are quite high.
If you remove those.
And also the 10 basis points that we earn while we have that cash the NIM.
Jim would be $5.56, again not GAAP.
But this is much more representative of what our NIM would typically be without triple pay not that we wish that earns a lot of money.
Money on Triple play obviously.
And I won't go in as much detail.
On the year other than to say.
With Triple T.
And with our national lending business and some other lending we did we did a total of $3.32 billion.
In our national lending business for the year.
Wayne purchases and originations.
We did a total of $478 million.
Which is a net growth in our national lending business year over year of 11 in the half percent.
Finally.
Finally, I want to make the point. This is not listed as the data point, it's in our earnings release.
During the quarter, we repurchased 194000 shares of stock.
At an average price of $29 and 56.
If we turn to page for this.
This provides a lot of detail on our correspondent fee income.
The first I'd like to do is bring your attention to the bottom table the firm.
First column.
The fifth row.
You can.
In the fourth quarter.
Loans source purchased for $371 billion of.
Loans.
Which is obviously a big number.
And kudos to them most of this was purchase.
At the end of the fourth.
Porter.
And and visit this is from the the loans that they purchase.
We get a half of the share of the income from that and so you can see cumulatively they purchased the 11 point.
$2 billion, 2 of the program, which and uhm.
On the 31st of July.
I want to point out that.
The I'm sorry, the slide is moving around a little bit here instead of the right number.
At the end of the.
As of June 30th they ahead of about 8.3 or $4 billion that they were still servicing that compares with an average of about 6 point.
$9 billion for the quarter. So that's.
Sign of more servicing income.
And the future of while the triple pay of loans are outstanding.
Finally on this page I would draw your attention to.
To the.
Now I'm looking at the top table from loans that they purchased the before we.
Uhm amortize the blood of danger of a million and a D.
From part of the Correspondency that we differed 972000 from the.
Mm amortization of purchase accrued interest and finally.
$4.6 million.
Which was our share of the servicing income.
The triple P portfolio that loans source had.
The quarter.
The go to the next page.
H 5.
This is a summary.
Of our loan portfolio at June 30th I, just wanted to talk about a few items here you can see that our total loan balance.
At the end of the quarter.
What was.
$1 billion and 41 million.
That was 20.161 loans and most impressively with the weighted average along to the value.
Of 49 per cent.
Let me see.
See I'm gonna Skip 2 of Pew slides and moving to slide number 8.
This is a slide the provide some detail on our national lending for slowly L.
You can see at the <unk>.
Hi chart on the right.
We are of national lender, where in 44.
Thanks [noise].
For the day, the largest concentration in New York at 36%.
At California at 18%.
The next one's Florida, and you can see that we have spread out.
Home of the other 41 states.
1 of the things as you've heard me say many times, we liked the you know manage the the risk by being really careful on the collateral I mentioned earlier the weighted average L. T V was 49%.
But another thing that we focus on his investment size.
For a long you can see that only.
10% of our portfolio for Ah.
Loans greater than $9 million.
Which provides a lot of protection.
And you can see below.
The pie as it has the collateral types.
That we have.
For a number of them you know kind of the hallmark is we're generally looking at loans that are of secured by cash flowing collateral not making construction loans of land loans or.
Kind of development et cetera.
Let me see where we will go to the next.
Mm mm slide.
5.9.
Has some metrics on assets quality and.
And we really have a.
Terrific quarter.
From an asset quality perspective, thanks to our great asset management team.
This is the are delinquencies for.
We're down to 11.3 million at June 30th compared to $16.7 million of March 31 the.
As in the earnings released kind of on the slide 9 that.
The only to talk about in a minute, but it's a good reference points and nonperforming assets.
For 20 million.
$20 for a million at June 30th down from 25 million at March 31.
The the tables on this slide the 1 in the upper left shows the N.
M P. A N T H the total assets in N P. L. The total assets and you can see in the last for.
The M T A's are down to 90 for basis points over total assets.
An M P L or down the 1.8.
Over total loans.
Yeah the charts make the same.
<unk>.
And you can see the classified loans either our loans that we right 8 for higher are down from 15 million for 10.8 million very very very solid.
Improvement slides 10, and 11 provide the detail on are the for.
<unk> program as of June 30th we're down of $1.9 million and you can see in the last 3 columns. The aggregate total of those are uhm $900000 delinquent out of the total of the 125 million originally the for that we still have on a balance sheet some of those orders of defeat.
That's been paid off and on the slide of 11, I Should've mentioned the slide 9 I'm 1 of those where we gave of forbearance principal and interest.
Uhm slight of 11.
Where they were only interest only it's down of $5 million and the only $100000 of that is the like the.
I'm on page 12.
There's a slide that shows the turn it over and our nonperforming assets and I'll just bring your attention 2 of the third column that says it March 31.
We had 25.8 million I mention that earlier of that.
Non-performing during the quarter.
We added 1.5 million around it a little bit.
But we had 6.9 million that will resolve bringing the number of that of 20.4 million great progress uhm.
Make 1 comment on the.
<unk> and I think J P. Maybe talking about it a little bit more uhm, we did have a negative provision this quarter.
The.
The the the biggest component of that you may recall was the end of June 30th 2020 in the middle of of Covid around the yes. We were had a high level of that's overstating. We have some concerns about R. S. The a portfolio that may require a bigger allowance uhm. When we took added again this.
Here when we looked at the performance.
We determined that we didn't need all of that Emily Uhm.
Uhm released the portion of that.
There are a bunch of slides uhm that we provide every quarter on collateral types of weighted average L. T V's.
The the purchase portfolio.
When they were originated and what is the outstanding balance relative to that.
And how much we have an interest reserves.
But I don't think I need to go over all of that with you would say of per year.
Mm mm mm the ability of take a look at it when you want if you're interested.
But there's a lot of detail there and with that I will turn it over to J P.
I believe will start on the slide number 20.
Thank you Rick and good morning, everyone is.
The drink indicated I'll pick up on slide 20, which shows the quarterly interest cost of our deposit portfolio, which is decrease the cause of the over the past 5 quarters for 1.51 for sending the comparable proud of your quarter to 41 basis points for the current quarter.
And stood at 30 basis points at the end of the quarter, we've of <unk> of cheese of significant interest from savings for the combination of our efforts to ship the make up all of our deposit portfolio from time.
Deposits transaction accounts of long.
With the low interest rate environment true.
July 21, the slide shows the changing of the composition of our deposit portfolio year over year the.
The whole back accounts include the loans or is this question account, which was $860 million debt June 30th 2021.
Excluding hold back accounts are community banking deposits as of per cent of deposits of increase from 49 per cent of our total deposits portfolio a year ago to 69 per cent at the end of the current quarter, while able banking the Bulletin Board C. D's have declined to 31 per cent combined.
As the bottom of cable shows the majority of the change in our product composition was the checking accounts, which includes demand deposits, which increased from 18 per cent of our deposit portfolio. The comparable for all of your quarter. The 37 per cent in the current quarter of you.
You will see in more detail. The the next slides a significant portion of the deposit balance is attributable to the P. P. P collection account the balance of which we expect to remain elevated over the next several quarters.
Elevated P. P. P question of activity continues. Additionally, we had interest rate savings and all types of most significant savings were seen in the money market. If you see the portfolios and which of the weighted average rates decreased by 62 basis points and 80 for basis points, respectively over the 1 year period.
Turning to slide 22, the slide shows the change of her deposit portfolio at annualized interest expense monthly over the past year, well also displaying the ratio significant impact of the P. P. P collection accounts, which impacts are short term investment and deposit balances and the subject of significant fluctuation.
Besides the also excludes the impact of $400 million of short term broken C. DS. They were taken out of January 2021 to help fund P. P. P loan activity immature prior to the end of the Lynch quarter.
3 on the Burger continues was 15 basis points and this funding source of that expect it to be recurring which is why it has been excluded from the slides or.
For the past year, we've generated approximately $7.1 million in annual interest expense of savings and our deposit portfolio.
Decreasing the from $12.6 million in July of 2020 to just $5.5 million in June 2021.
Moving ahead, the slide 20 for this.
Slide provides detail out of potential additional future interest expense savings on our C. D portfolio of which 80 per cent for $223 billion is scheduled to mature in the next 12 months.
Instead of the current weighted average interest rate of 1.36 per cent. This talk for about $2.3 million in annual interest expense savings.
July 25 shows or quarterly revenues over the past 5 quarters, which have decreased by $23 billion from the Lynch quarter and increased by $10.6 million from the comparable proud of your quarter.
The revenues excluding P. P. P games have increased $100000 from the like Twitter and $7.700 from the comparable proud of your quarter of.
Additionally are not non interest expense decreased $209000 for moving to order from $741000 from the cover of comparable proud of your quarter, which demonstrates or continue the ability.
To increase revenues, while maintaining flat or slightly lower expenses.
The primary driver for the decrease the non interest expense of of comparable prior year quarter with the decrease in salaries expenditure of $1.7 million, primarily due to a decrease of $1.4 million in both of the 6 beds, along with an increase of $733000 in deferred salaries country experience related to the P. P. P originations.
Attributable to the higher up to the high level of P. P P activity.
Setting the decrease was $522000 of additional expense during the current quarter associated with the P. P. P corresponding relationship primarily related to marketing and advertising caused that we share with them.
This concludes our prepared remarks at this time, we would like to open up the line to Cuba debt.
Mmm.
Thank you we will now begin the question and answer session. If you would like to ask the question you get yourself a pressing star then 1 on your Touchtone phone.
Once again, please press Star then 1 on your Touchtone phone. We will proceed in the order that you signal loss leave all at take as many questions as time permits.
Our first question comes from Alex True Doll from Piper Sandler Your line is that often.
Hey, good morning, guys.
<unk>.
Good morning I.
The first I've wanted to the drilling a little bit more on the the national originated portfolio that showed some fairly nice growth this quarter in the last quarter of you talk for wreck about some of the new strategies.
To try to retain.
A portion of the portfolio of that was rolling at a pretty fast clip is that what's driving the the growth is is not just originations cost of retaining more of what's rolling for was rolling off or is there something else, we should be thinking of that I.
I I think the yeah, the the growth that the do it mostly with the.
The the volume that we originated in the quarter you know the run off.
Was roughly the.
Roughly the same as it's been in the in the past the slight improvement.
Yeah that that's the process as I indicated in the other call trying to retain those loans, but it's not something that was gonna happen.
No and then 1 month or 1 quarter, it's gonna take awhile to.
Improve that but it was really had to do with the <unk> with the volume was <unk> was a lot of by a lot of loans will be closed and that businesses.
Instead of the growing.
True a lot of <unk> you know as we're done.
He's done a fair amount of marketing and branding and we have great business development folks and.
Calls coming inbound from existing customers growing I'm, bringing of new customers and I will I will say, we will also the starting in with an August we have a new <unk> senior business development person starting in in the.
The in Miami area.
Who will be responsible for helping us grow alone book in the Florida Southeast area Uhm and some nationally and then we have another person's senior business development officer, starting in mm mm in August as well as the Sun.
In California, and so we are open the expectation is that we'll be able to grow origination book even more.
You'll recall them sharpen the slide we went over.
We have.
Some meaningful portfolio in California, and I'm in Florida, and we hope that more so that's exciting for us as well as continuing growing organically as we have.
Is is that Rick of the first time that you're gonna have actual boots on the ground permanently in Florida and California.
Yeah, and that's hockey excluding the you know are are for a into you know 7.8 hotel lending, which.
We're not doing but uhm, yeah for our national lending will be the it'll be the first time.
And are there additional markets beyond knows that you're looking to kind of get boots on the ground, obviously, it sounds of tremendous growth and it seems like it's got a really nice runway ahead of it still.
Alright, great Mark the winner.
I'm, sorry, I didn't mean to talk over you, it's a little bit hard on the cloth say that I'm, sorry, I was gone.
No that I, you would probably gonna I I'd, probably and that's enough for the question already.
Oh, so I didn't interrupt of you at the stuff, that's all red and I left the into the high for.
Feel better and the.
Yeah. There are other markets, we would be interest in Texas is of great market.
You know.
Would be for US and you know, we'll see we have a lot of capital now.
1 of the things the it'd be worth pointing out though on the capital of 1 of our our new directors Bill Mayer, who I don't know if you know Alex but he was head of banking of good 1 factor, which is a great. There are lawyers and they represent a lot of banks and he's been sitting in the meetings and it was making the point. It's so nice for them to say of bank like ours with a lot of.
Capital of being careful.
Oh, So we Wanna, we Wanna, we Wanna grow our balance sheet of what would Wanna grow with carefully.
Meaning not losing principle.
But there are other markets, you know where well as I say, Texas of would be 1 the 1 of the lessons that we learned to everyone learned during the pandemic.
You know you say you can operate uhm with people that are working outside of the the headquarters we sold without of course all of the credit decisions you know the the asset management.
I'm Gonna say credit all and all of that encompasses and and loans asset management of taking place here, but for originations you know if we can get more people on the ground. We think it's the way to grow that business, which was the liked it though.
Yeah, that's great and then just switching gears for the purchased market, which has been sort of I don't know if it gets an average quarter. That's the most recent quarter and you know maybe it didn't pan out exactly as we thought it might have a year ago not necessarily a bad thing you know all things considered in the world but.
You know 1 thing that has certainly been of major theme of 2021 has been some giant bank mergers at least relative to I was in the past now could you maybe talk a little bit about you know.
When you think about the pipeline for loans purchases you know it seems to me that you know amongst merger activity, there's generally concentrations of needs to be reduced and you know as these portfolios get marked et cetera. It do you see in the opportunity for additional loan purchases coming from merger activity or anything else.
Well, there's certainly historically as you know as as you pointed out of no.
You know of mergers historically created the.
The opportunity for purchases of loans the by them because of the combined densities.
The frequently wanted to get rid of some of the loans for for various reasons.
So there is that opportunity.
You know I'm I'm reluctant to.
Make a suggestion or a projection I was so wrong on what I thought it was gonna happen when the pandemic started I really thought there was going to be huge opportunities to buy of loans, which didn't pan out.
Like let's say this though we look at a lot we looked at a lot you know this quarter and this year, we were less successful in buying loans more competitive.
The then I would have I would've guessed.
And so we still look at that you know everything that comes out that's.
Within our wheelhouse as they say, meaning the.
Loans secured by cash flowing collateral in the United States.
You know in the size of that week.
You know, we'll too and now with more capital. We can look at you know of larger individual purchases. We we look at a lot of it seems quite busy and while we did 170 million. This year. That's a good number just to kind of put it in perspective.
It's.
Does that solid I as as I thought maybe we would do the 300 of 400 million of we could of cause we had once of more pools of we have been on but no..1 7 is a pretty good number so I'm reluctant to say you know.
Well.
Comment other than we look at a lot that comes out and I'd, rather just report I know this doesn't make your job easier.
But which I apologize for but I'm reluctant to put out of the number other than to say I could say this with comfort you know over the last 5 years or so you know it was done between 150 and 200 million a year, so I'm comfortable and subject of the court. The forward looking statements that was red.
Initially, saying that I think is the kind of a reasonable target could it be a lot more than that it could be.
You know I don't really think it's gonna be out of the <unk> you know of I don't think it would be out of the low side of that range, but you never know we look we we look at big pools of maybe 1 of these days, we'll buy a big 1.
Right.
Another question just from the buyback you guys get to buy the access quarter.
You know sort of makes a lot of sense below tangible of book value of Bob tangible. The book value you know still makes sense of the kind of your capital levels, but you know based on the fact that you guys have been growing tangible book.
Okay. So so quickly and there's still a lot of unrealized gains from the P. P. P program, suggesting that book value you should continue to go pretty rapidly.
You know how pay of thinking about the buyback today I mean, you've got lots of capital of it seems like it's still makes a lot of sense, but you know how how are you thinking about it.
Well, we do have a lot of of capital.
I think there are 2 schools of thought on.
<unk> from it backed up before the 2 schools of thought so the absolute best thing, we can do with their capital as leverage it and draw alone book you know that math is compelling we have room as of June 30th we have enough capital before we make another penny in the quarter were in the double the size of our loan book.
And so obviously, if you get out of $1 billion of loans.
Uhm, earning a 6 per cent spreads.
You know relatively small increases in operational expenses. That's the most profitable thing you can do.
Yeah, you off with competing also as you go through reported and make more money.
Simulating more capital.
The state that is the 1 thing so I wanted to get consider is what is your opportunity to grow your loan book.
Well, let's assume for a second that we have.
Capital of.
In terms of how you think about what.
What level of would you buy.
No I think there are a couple of competing not.
Not competing couple of schools of thought is what I was gonna say 1 of his you know if you pay up to the tangible book or where do you think it might be on tangible book you know in some.
Measure of time for it.
Where you say what is the intrinsic value of our company you know were trading at 31 Bucks, what do we think of tourism and over time. If you bought it up you know of higher number.
It would probably be happy with that.
Yeah. That's so that's kind of the thinking I'm not the obviously.
You know, it's not appropriate for me to see what the number would be but that was the kind of the way you think about it I'm gonna need the capital.
Where do you think you'll need of the capital is the quote 1 of our other the.
Directors of the set you know we're really in a good position, we all like capital of and I'm really.
Oh, that's talking about myself no I don't want the arrogant really smart team [laughter] and so it's Ah what's the what's a really good opportunity in front of us, but you know we need to be careful and.
About how we you know go on alone book.
Continuing you know with the high quality assets as we had fun.
Okay and then you know the last question for me out of the originated out of his past. It's earlier the originated national portfolio, what are the new loan yields at today.
I think the in terms of pricing.
Yeah, the price and just what it would be like the the the the yield on on the new production.
Auction.
J P. Do you have the number for what we what was the.
Yeah, I'm not the meal.
I'm slide 3 the originated loans for the court of $114 million was that of weighted average rate of 636.
Great that has that thanks for like polio or is that the is that the new originations that was the new originations that we could put on during the quarter.
Great. Thanks for taking my questions.
Thank you Alex.
Thank you.
Thank you as a reminder of if you have a question. Please try started then 1 on your Touchtone phone.
[noise] [noise] and our next question comes from David Minkoff from D. C. M asset management of your mind is now open.
The morning of chance congratulations on another great quarter on many fronts.
Cause of that is the 1 of my back of.
Alex touched on it.
In late April you increase the.
Or the rise my back from 600000 shares to a million shares.
Of which of what slightly under 200000, but I noticed the the buyback expired on July 21, 3 months. After you increase the I think in the past when you add the buy back for the last 3 year. What made you why did you give yourself such a show of window away.
We didn't uhm, let me clarify that would.
In July we in ink.
Kris the.
By back from I Wanna say 600 to a million and it was also extended until July of 2022.
Okay, I think the release Red July 2021.
Then we need to correct that okay. So that's the spirit July of 2022.
I guess, okay. So this was the first time and you kind of explained it under Alex's question for the first time I saw you buy shares back.
Out of premium to a book value and that's I don't take that as a a very strong vote of confidence going forward I don't see any of the way you can take it what what are you able to.
You bought on and I thought it was on 94000 shares of 29, 50, roughly where you're able to buy any more shares of.
After June 30th up until now let's say.
You know, we haven't said anything about that so I think what we will have to wait until the <unk>.
So we have another call again and.
October the winter unannounced, we don't that announce activity you know in between quarters on the buyback okay. The that's fair enough nearly the other question I had was the the great quarter of.
A lot of it had to do with the P. P. P. Obviously, so thanks for the question, how many more quarters D C.
The the earnings being affected by this I think the P. P. P is winding down basically right.
Well the P P. Yeah, the <unk> the triple.
The Triple P. A has.
Essentially done it was completed for loans to be made the substantially as of June 30th there could be up to the.
Maybe it was May 31 is even made 31 June 30th I'm getting confused now, but a few loans could trickling, but it's essentially done on the.
I would not expect any meaningful originations for Muslim is let me just say that.
The you know 2 or 3 or 4.5 million. The trickle in that are kind of in process and then.
The window for.
Financing those closest to the fed on July 31, so.
So I wouldn't expect any.
And any really more purchases from loans source, then we have indicated and.
Discussion of this morning, which is 11.2 or 3 of.
The billion in terms of the impact of the income we have about $13 million the amortizement the income.
I don't know roughly over the next year or how how long J P of roughly the 13 million kind of Amathi joint income.
We did some of it over 2 years and some of it the little longer so probably over the next year and a half or so on an average of <unk>.
And then.
We are in <unk>.
The the let me say of differently.
1 source has about 8.9 billion.
Of Triple P loans in its portfolio.
That the income from that is the spread of the 65 basis points minus servicing costs have we get half of that.
And you know, we'll bring that in <unk> in the income as long as it sounds.
Go down and you know I would say you know you know most of that income. We assume you know, we'll we'll be part of the income through you know of June 32022, a little bit more will.
We imagine will trickle in the after that.
I don't think it would be wrong that now that we just depends on.
How long it takes for those loans to be forgiven, but I think that's the.
And I've just described I think that's a reason for that sort of assumption, but the subject to it's not within our control how long the loans are outstanding.
Okay.
And finally, how many branches do we have open at the present time.
We currently have 9 branches and we have filed.
With the superintendent of the bank in Maine, the clothes are very small branch.
That we have in Harrison, Maine.
Uhm, which we.
We will will be approved so we will have 8 branches.
Sometimes starting in the fall right now and I was going to ask whether you plan to open any additional branches share so I guess.
Although I could still be a valid question I guess, you just close the small when it wasn't that significant do you have any plans to open the another branch of too you know.
Where's the word mm mm.
Actively trying to develop.
And increase the valve is not the right word increase.
Of course deposits and the main community.
Both through you know of our our branch that like the ones the bleed closed.
The over the last.
You're a year of Napoli close to branches, 1 we had in Lewiston, Maine, when we moved the corporate offices.
And we combined the Lewis and 1 with all burned it right next to each other for those that are not familiar with Maine.
And then the hair of someone was tiny but we have branches in some markets and of relative to the size that Ah you know reasonable.
Size and we're trying to grow the passage there we've reorganize that whole group.
Group, we now have we have a higher.
The former.
Deputy Treasurer of Maine to help us get deposits in the municipalities and still a really great job.
We have replace the the person who was responsible for getting deposits out of our national blending customers from tend to have some of them a fair amount of.
Deposits.
We've hired a a person to the in charge of trying to get deposits from the <unk>.
Customers business customers in Maine.
That have borrowing needs, but not of high.
I'm Glenda needs think homeowners association or.
Lawyers et cetera.
We have a fairly active campaign now to bring in retail deposits, we've increased our marketing kind of.
And the person to be in charge of of our branch network.
So yeah, so and the ZIP there.
And the slides and the J PS discussion how much improvement there has been over the last year and repositioning.
Our liabilities from higher it's instead of.
See the money.
Enable them Bulletin board.
[noise] much less expensive accounts, and we want to continue and grow on that.
I know the answer your question, which was the long window. The answer what we will do it you know through more branches in the markets that are good for more online presence in the T. P D.
But we're trying to grow that business.
The that makes sense and I appreciate the answer and.
Thanks, very much keep up the good work of great job for you and your team.
Save it was the lethal talking to you think of and.
For having a good summer.
Yeah I'm the same to you okay. Thank you.
Thank you.
No further questions at this time now I'd like to turn the call of her to reclaim for closing comments.
Mm. Thank you well I wish everybody, what I wish day, but as of as of late summer wherever you're located I also the weather I'm from Israeli miserable and Boston area, but again. Thank you for your support for your interest.
This is not the only venue we can talk and if you have questions or you want to you'll have ideas or ways. We can provide more information and a side deck that you think would be helpful.
We're interested in and having those conversations and so feel free to contact the pattern for J P or myself and anything of where legally permitted to talk to you about we would be happy to.
And with that I wish you a good day and seemed to be a good weekend. Thank you.
Thank you ladies and gentlemen. This concludes today's conference. Thank you for participating you may now disconnect.
[music].
[music].
Yeah.
[music].
[music].
Yeah.
[music].
Yeah.
[music].