Q3 2022 First Interstate BancSystem Inc Earnings Call
Good morning, and thank you for attending today's first Interstate Bank system, Inc. Third quarter earnings Conference call. My name is Bethany and I'll be your moderator for today's call all lines will be muted during the presentation portion of the call with an opportunity for <unk>.
<unk> in the answers at the end if you would like to ask a question. Please press star one on your telephone keypad I would now like to pass the conference over to our host Lisa Slyter Bray with first Interstate Bank system. Please go ahead.
Thanks <unk>. Good morning, Thank you for joining us for our third quarter earnings Conference call. As we begin. Please note that the information provided during this call will contain forward looking statements.
Actual results or outcomes may differ materially from those expressed by those statements I'd.
I'd like to direct all listeners to read the cautionary note regarding forward looking statements contained in our most recent annual report on Form 10-K filed with the SEC and in our earnings release as well as the risk factors identified in the annual report and our most recent periodic reports filed with the SEC relevant facts.
So that could cause actual results to differ materially from any forward looking statements are included in the earnings release and in our SEC filings.
The company does not undertake to update any of the forward looking statements made today.
A copy of our earnings release, which contains non-GAAP financial measures is available on our website at F. I B K Dot com information regarding our use of the non-GAAP financial measures may be found in the body of the earnings release and a reconciliation to their mostly.
Directly comparable GAAP financial measures is included at the end of the earnings release for your reference.
Joining us from management. This morning are Kevin Riley, our Chief Executive Officer, and Marcy Mutch, Our Chief Financial Officer, along with other members of our management team at this time I'll turn the call over to Kevin Riley Kevin.
Thanks, Lisa good morning, and thanks again to all of you for joining us on our call today.
Again this quarter along with our earnings release, we have published an updated investor presentation that has additional disclosures that we believe will be helpful.
The presentation can be accessed on our Investor Relations website.
Have not downloaded a copy yet I encourage you to do so.
I'm going to start off today by providing an overview of the major highlights of the quarter and then I'll turn the call over to Marci to provide more details on our financials.
During the quarter, we continued to see positive trends in loan growth margin expansion and asset quality all of which resulted in a meaningful improvement in our financial performance.
We generated net income of $85 7 million or <unk> 80 per diluted share in the third quarter, which included a $24 million loss on the sale of investment securities as part of some of the repositioning we did in the <unk> portfolio, which we will discuss later on the call.
Another $4 million of acquisition expenses, and a litigation related accrual.
Excluding these items the company had a $1 <unk> in earnings per share and generated a very strong return on total equity of 13, 3%.
Loan growth.
A significant driver of our increased profitability this quarter with our net contribution from across the footprint, resulting in an annualized growth rate of over 10%.
The higher levels of growth reflected our reflects our.
Our ability to capitalize on the healthy demand we are seeing in all of our markets and the funding of prior loan commitments with improved pricing structure across the portfolio.
We are pleased to see net growth coming out of our new markets earlier than we expected.
Even while working through credit related headwinds within our acquired portfolio.
However, we remain diligent and are keeping our eye on certain portfolios like residential multifamily and selected types of the consumer lending along with isolated pockets of our footprint that could be potentially overheating.
The back half of 'twenty to 'twenty, two is setting up to be the best banking environment I've seen since joining first interstate.
Our footprint has continued to experience healthy stable economic conditions, and our competitors have been less active allowing us to win deals with a pricing and structure, we required to capitalize on the strength of our balance sheet.
Against that backdrop, we saw new production production yields approaching 5% in the quarter.
On the deposit side during the quarter, we began selectively utilizing our ability to offer higher rates to add and retain profitable long term relationships without materially impacting our cost of funds.
Last quarter, we were willing to let go of high cost non relationship deposits, mainly concentrated in municipal Ms. <unk> <unk>.
That said deposits appearing to be stabilized had been stabilizing as attrition has slowed significantly in the month of September .
And to the sorry, the fourth quarter deposits in October are relatively flat.
The combination of active decisioning to position for higher rates through the back half of 2021, a strong acceleration in loan growth and the ability to have excess liquidity fund high cost deposit outflows has resulted in our adjusted net interest margin expanding another 46 basis points during the third quarter.
It is now up 101 basis points over the last three quarters.
Grounded in the strong loyal low cost base.
That serves as a foundation of our franchise and the continued positive repricing of our asset base.
We would anticipate further expansion of our adjusted net interest margin into the end of the year.
It's worth noting that a lot of the positive momentum we have right. Now is a result of the successful execution of the integration of great Western.
Which has worked out exceptionally well.
We're realizing the cost savings, we projected and resolving acquired problem loans at a faster pace with lower marks than expected, which is driving growth ahead of plan.
I want to give credit to our entire team who has worked hard to make this a smooth integration for both customers and employees, allowing us to begin to capitalizing on the synergies of a much larger institution.
While we continue to see healthy economic conditions in our markets and positive trends in asset quality as always we are being proactive in managing risk in our portfolio.
As a result, we took a charge off on a single Metro office property in the third quarter and moved to credit to held for sale it should be resolved shortly.
This is one of two Metro office properties of any size in our portfolio and at this time, we have no significant concerns with the second property.
Outside of these two properties the remainder of office CRE credits are in smaller markets with many occupants in risk recession resistant industries like medical.
These credits continue to perform well and.
And are not being impacted by the work from home trends that are creating a long term concern for the CRE office market.
Otherwise as evidenced by the significant decline in both nonperforming and criticized loans this quarter.
The portfolio is performing exceptionally well.
And we don't see any.
Signs of any systematic concern in our book and with that I'll turn the call over to Marcia to provide some additional <unk>.
Information on the results this quarter.
Thanks, Kevin and good morning, everyone.
As I walk through our financial results unless otherwise noted all of the prior period comparisons will be with the second quarter of 2022, and I'll begin with our income statement.
Net interest income increased by $27 $8 million, primarily due to our strong loan growth and net interest margin expansion.
Reported net interest margin increased 46 basis points from the prior quarter to $3 seven 1% <unk>.
Excluding purchase accounting accretion and PPP related income our adjusted net interest margin also increased 46 basis points from the prior quarter to $3 four 7%.
This was driven by a favorable shift in our earning asset mix and increased yields on loans investments and cash.
As we indicated on our last call, we began raising pricing on deposits during the third quarter, which increased our cost of total funds to 28 basis points, but this was more than offset by the 64 basis point increase on average interest earning assets.
With the continued redeployment of excess liquidity on an average basis loans increased to 61, 1% of earning assets in the third quarter up from 57, 9% in the prior quarter. We ended the quarter with a loan to deposit ratio of 68% up from 63, 9% in the prior quarter.
To help fund our strong loan growth in the third quarter, we added $650 million in overnight borrowings.
Borrowings, which we plan to use as a temporary funding source that can quickly be adjusted based on loan production and deposit flows.
Looking ahead, we believe we are well positioned to see continued expansion in our net interest margin due to a number of factors.
We anticipate a continued shift in the earning asset mix toward mountain in the fourth quarter.
New loan production is coming on the books at higher rates and it is currently at or above roll off yield too.
To the extent there are investment security purchases they would be accretive to current book yields in today's environment.
Otherwise investment yields will trend higher with a cash flowing off lower yielding securities into the loan portfolio.
Additionally, as you saw in the Investor deck, the run rate effect of the mid September reinvestment of the $500 million Treasury sale will be accretive to earnings and of course, the roughly $5 $6 billion of immediately variable rate loans securities and cash, which is 20% of earning assets at the end of the quarter will continue.
To benefit from recent and future fed rate increases.
All of this will more than offset some anticipated increases the funding costs, although based on trends. We've seen to date, we continue to expect our interest bearing deposit beta to be below 27% that we had in the prior rising interest rate cycle.
Our total noninterest income decreased $27 million quarter over quarter to $22 $9 million, primarily due to the loss on investment securities.
On September <unk>, we sold the 500 million dollar U S. Treasury note on which we had terminated the swap last quarter. The sale of the notes triggered the realization of the previously deferred gain which netted a loss on the note down to $24 $2 million. The proceeds from the sale were reinvested in mid September at an average yield of three.
Eight 9%, which will result in seven <unk> of annualized EPS accretion and a two five year earn back on the law.
Excluding investment securities losses, non interest income declined $2 $9 million from the prior quarter to $47 $1 million as an increase in our payment services and swap revenue was offset by further declines in mortgage banking and wealth management.
As expected service charges declined $600000 from the prior quarter driven by the run rate impact of our NSF and overdraft changes in the great western footprint.
Primarily due to the continuation of the unfavorable environment for mortgage wealth and swap fee income we have lowered our expectation for noninterest income to be $45 million to $46 million for the fourth quarter, excluding any impact from MSR valuation changes.
Moving to total noninterest expense exclusive of acquisition and litigation related expenses, our noninterest expense increased $4 $2 million from the prior quarter.
While salaries and wages declined in the quarter efficiencies realized from the great Western acquisition were partially offset by higher performance related compensation accruals.
Our performance also resulted in an increase of $1 million in our donation expense.
Increases in FDIC insurance fraud losses, and advertising expenses were responsible for the rest of the variance.
Looking ahead to the fourth quarter, we now expect noninterest expense to be in the range of $63 million to $65 million in the fourth quarter.
Approximately 80% of the increased expense outlook from the fourth prior quarter is directly tied to performance related adjustments to expenses for 2022.
Moving to the balance sheet.
Our loans held for investment increased $446 $9 million, excluding PPP loans from the end of the prior quarter with growth in all of our major portfolios with the exception of AG and commercial.
As of September 30, we had only $6 million in PPP loans remaining on our balance sheet.
Our investment portfolio decreased $602 million from the end of the prior quarter due to normal cash flow activity and a decline in fair market values.
At the end of the quarter the duration of the investment portfolio was three nine years.
During the third quarter, we terminated our $200 million forward, starting pay fixed swap, which resulted in an $8 $5 million gain that will be accreted into income on a straight line basis through July 2028.
On the liability side.
Our total deposits decreased $979 million due mostly to outflows related to municipal deposits and $99 million in deposits related to the great Western wealth management business that we moved off balance sheet as is customary with our current practice.
These outflows occurred mainly in July and August and over the remainder of the third quarter. Our deposit balances remained relatively stable as Kevin noted earlier total deposits. So far in October are relatively unchanged.
Moving to asset quality once again, we saw positive trends across our portfolio with declines in nonperforming assets of 19% and 26% reduction to criticized loans.
Decline in criticized loans was largely a result of the year to date charge offs, we've taken which allowed us to restructure and upgrade many of the rated loans added in the great Western acquisition.
We are pleased that the combined asset quality metrics at September 30th are already approaching pre great western levels.
Our net charge offs for the quarter were $12 million or 27 basis points of average loans.
The higher level of net charge offs. This quarter was primarily attributable to two credits one was related to the restructure of an acquired PCB loan that held a specific reserve against it and the other was related to the resolution of the Metro office property loan that Kevin discussed earlier, excluding these two credits we had net recoveries in the third quarter.
Strong loan growth and a more conservative economic forecast was partially offset by the improved credit performance, resulting in our provision for credit losses of $8 $4 million for the quarter as always we are taking a conservative approach with our allowance methodology and the input for our economic forecast reflects a more cautious outlook.
While our allowance represented as a percentage of loans held for investment declined a few basis points to 121% our coverage for nonperforming loans increased to 248% at September 30, compared to 201% at the end of the prior quarter.
And finally during the quarter, we repurchased three point.
3 million shares of our common stock at $50 and <unk> 49 per share, which completed our previously announced $5 million share repurchase authorization, even so our capital levels remained strong at the end of the quarter and continued to exceed our internal policy guidelines and with that I'll turn the call back to Kevin.
Thanks, Marci I just want to update some of the numbers of Marci Hitachi little bit misspoke on on our forecast for the fourth quarter of non interest expense, it's going to be in the range of $1 63 to $1 65.
So with that I'll wrap up with a few other comments.
We expect a continuation of positive trends seen in the third quarter loan growth to remain solid into year end, although likely at a seasonally slower pace than we saw this quarter.
The tailwind so our net interest margin remain a credit quality should continue to improve.
The strength of our balance sheet and continued expense control leaves us well positioned to continue generating positive operating leverage and strong financial returns for our shareholders, while remaining committed to our conservative through the cycle approach to risk management.
While we continue to deliver strong financial performance in the near term, we continue to make targeted investments that will further enhance our ability to generate profitable growth over the long term.
We recently added a chief specialty banking officer, who will oversee our indirect lending payment services and mortgage banking businesses, including the expansion of these businesses into our newer markets where significant opportunities remain.
The effort currently underway in these areas and across the company are building the foundation to help us realize revenue synergies for the great Western merger in 2023 and beyond.
While the current environment creates some near term economic uncertainty the strength of our balance sheet and our strong profitability profile leaves us feeling comfortable with our ability to manage through a potential period of economic stress should it emerge.
It was a strong execution, we are seeing from our teams across our footprint. We believe we have never been in a better position to build long term franchise value for our shareholder.
Against that backdrop and with confidence in our financial outlook. We are pleased to announce a <unk> <unk> increase in our quarterly dividend payment, bringing our yield to a robust four 5% on our current stock price and so with that I will open the call up for questions.
Thank you.
If you would like to ask a question. Please press star followed by one or your telephone keypad.
Any reason you would like to remove that question. Please press star followed by two <unk>.
Again to ask a question please press star one.
Reminder.
With your phone please remember to pick up your handset before asking your question. We will pause here briefly ask questions are registered.
Our first question is from the line.
Chris Mcgratty with <unk>. Please go ahead.
Great Good morning.
Good morning, Chris Marci, Hey, Kevin.
Marci, maybe a first question for you your margin core margin you referred to a $3 47.
Seven in the quarter.
And given the speed of rates kind of where that margin was in the month of September and also have you had kind of spot loan and interest bearing deposit yields.
So in the month of September the operating margin, so excluding accretion and PPP income and recoveries would be in the mid to high $3 50.
For September .
And then September average loan yields.
Around four 6% again operating basis.
And then interest bearing deposit costs at about 40 basis points.
Okay great.
Thank you for that and then I guess, assuming the forward tough question, but I'm assuming the forward curve is right. It would feel like there's a decent path to continued expansion into 'twenty 'twenty three.
So I guess, maybe maybe a remark on that if he could and and ultimately where you think margins could go in this environment.
Yes, yes.
Mark on where we think the margin might end up next year.
But we agree that assuming the forward curve is right. There is a decent path for expansion.
Yes.
Your math will be as good as ours, there Chris based on your assumptions.
Got it. Thank you. Thank you for that and I guess, it maybe more of a balance sheet mix question. I mean, you do have a large.
Investment portfolio and the color on the deck was helpful about what cash flows per month.
I presume youre going to be fairly selective in new purchases and just put money into into the loan book.
Yes.
Okay.
Okay, and then maybe last one if I could.
The jumping off point for expenses into next year, I guess relative to the guide you gave.
And I appreciate the color on the 80% tied to performance what's.
What's left on the cost saves that that's not in that number and then how do we think about just the cadence from early 'twenty three.
So if you look at the midpoint of that guidance.
Like $164 million, you can safely back up $2 million to $3 million part of that 80%.
And that are related to performance objectives, but for the most part.
$160 million to $161 million of kind of core.
Run rate expenses going into next year.
Okay. So that would be the full cost saves would be in that number.
Yes.
Okay, great. Thank you.
You bet.
Thank you.
Our next question comes from the line of Matthew Clark with Piper Sandler. Please go ahead.
Hey, good morning.
Good morning, Matt.
I'm just rounding up the margin discussion it looks like you did add about $625 million of borrowing.
Were those overnight if not what what was the term on those and costs and.
And what's your outlook for borrowings from here.
Yeah.
So they are overnight.
And we just know that those will go up and down based on deposit flows and what rolls off the investment portfolio and goes into loan growth. So again.
I don't expect them to go materially different from that quarter over quarter.
Okay.
Okay, and then with added late in the quarter.
I have to double check the average balance sheet.
Yeah.
Starting in July they started in July .
Okay got it. Thank you and then shifting to the <unk>.
Our loan growth outlook.
Sounds like seasonally slower, but probably stronger than it has historically been in the fourth quarter can you speak to the pipeline and what Youre seeing in <unk>.
And where it's coming from.
Both geography.
Geographic perspective, as well as a competitive perspective.
Loan growth is strong and we anticipate it to continue to pipeline looks great with regard to geography.
We're getting growth across the whole footprint.
Stronger in our legacy, but the great western footprint is picking up speed and so we're seeing good production there.
What was the last part of your question.
Just competitively is it is it is it mostly coming from existing customers, our larger borrowing for regional banks.
Well, it's new existing again its line usage is already out there, but I would tell you the competitive environment is like.
My remarks is that it's less competitive out there right now as we saw in the fourth quarter to third quarter last year banks, where we're pricing things had ridiculous low levels in the structures were not that good.
We didn't participate in that type of market I would say the market today is we're getting the price that we want and we're getting the structure that we want and it just seems like theres less competition out there.
Yeah.
Okay and then just last one for me on M&A I know you wanted to.
Make sure you prove to the market that GW deal GWB deal was a success.
So you can see it in the numbers what's your latest.
Appetite for M&A given the marks on.
Securities and credit these days.
So Matt actually be comfortable the market thinks that this was a good acquisition that's been well integrated.
Yes.
I don't know you tell me.
Okay.
As we said as we said.
We continue to need to invest in some areas of the company that we're focused on like I talked about on some of our different specialty lines, we're focused on making those better. So we can get the synergies out of the great Western footprint will continue to invest in technology to modernize we're going to invest in some new products and services.
We have we're going to continue to build.
Build the infrastructure for a larger institution when an acquisition comes about we wanted to have we want to be prepared I don't know when that's going to happen, but we'd be open probably like I said, a while ago in 2023, we're hoping that we're in a position to to look at something.
Got it thank you.
Thank you.
Our next question comes from the line of Jared Shaw.
With Wells Fargo. Please go ahead.
Hey, everybody good morning.
Good morning journey.
I guess.
Shifting over to the allowance ratio.
The allowance for loans came down this quarter as you know.
You mentioned the specific reserve with the the GWB mm charge offs, where you know as that portfolio seasons.
But then also with the broader economy economic deterioration, where should we be thinking about the allowance level of sort of settling out here.
Here is a ratio.
I think generally right around this level is what you should be considering.
Okay. So if we see any loan growth, we'll see that sort of backfill to us to keep this you know right around the 121 level.
Thats correct, yes.
Okay.
I'm sorry.
And then any kidney what's the expectation for accretion income in the fourth quarter.
You know Jared that's in the deck.
Yeah.
Oh, sorry.
Sure.
Page 12 page 12 of the deck you can kind of look at what we've done so far and then.
You know kind of back into that number.
Okay.
And then.
Yeah go ahead.
We are going to be.
Scheduled accretion.
Got it.
Okay.
And then you know as we look at deposits.
With the outflows on a muni and sort of some of the right sizing this quarter.
But should we.
Can we expect deposit growth I guess from here and how should we be thinking about that mix of DDA and interest bearing.
As we go forward.
So.
Mix should stay pretty much the same it's almost back to where it was in 2019, you know maybe a little bit more flying into cities, because we have a CD special out there, but I wouldn't expect deposit growth into the fourth quarter, hopefully they'll just stabilize usually we see run off.
You know, we could see a little bit of run off just seasonal norm normal runoff, but I wouldn't expect growth into the fourth quarter, and then going back to next year hopefully it will return to kind of normalized trends.
Okay, great. Thanks, very much that's all I had.
Thank you.
Our next question comes from the line of Jeff Lewis with D. A Davidson. Please go ahead.
Yes.
Thanks, Good morning.
Good morning, a question on the.
I guess, you would sort of.
Address the M&A side, but thinking about capital.
Finished up the buyback authorization.
You'd see that the.
The dividend.
Pick up any any thoughts on additional capital.
Capital deployment of kind of a priority if we kind of go forward from here.
You know, Jeff we always look at capital and we've.
We have as we always have talked about there's different levers to pull one we'd love to use our capital mostly an organic growth first and then we look at.
Opportunity investments and stuff, but you know the thing is with regards to share repurchases and dividends.
Ongoing basis, we always looked at it and kind of see where we're at.
And look at the forward strength of institution to decide what action that we wanted to take so it's an ongoing type, but I'd love to have all of our capital that we're generating we're going to generate a lot of it so.
Go into organic loan growth I don't think or maybe loan growth, we'll take all of that capital. So we're gonna have to have some decision point down the road.
Okay, if I read you right that the <unk>.
Please turn to that buyback doesn't necessarily mean that that tools on the sideline you may look at reauthorization, just staying flexible is that is that fair.
Yes, Thats a fair summary.
Gotcha.
Jumping over to the expenses I appreciate the kind of settling in point at 160 to $1 61 to kind of enter into 'twenty three.
Alright, I didn't get a clear view of how much cost saves from great. Western if that's completely complete and I guess related to that then just thinking about 'twenty three growth rate for expenses do you think you're tracking industry trends are a little bit of.
Tailwind on great Western debt maybe.
Yes.
23 could be more modest.
No I would I would say that the cost saves are great Western are done the way, we do acquisitions, we pretty much get rid of those right away. We don't have them linger on either that doesn't get any better over time so.
The cost saves that we saw with the acquisition great Western are behind US now looking forward.
You know.
The outlook ahead of inflation and where we have to go with wages and stuff is something that we're concerned about so I would say, we're probably track to industry norms with regard to that hopefully as we get inflation under control and we can keep our expenses from growing too much.
Okay, and one last one on.
Just curious as to the two credits that were charged off.
It was basically I think you said the majority of the net charge offs do you have the dollar amount on each and then a.
Kind of a follow on to that is there anything else in the portfolio that kind of chunkier credits that youre still looking at addressing I think Kevin you said that the other office real estate.
Loans in the Metro is.
He is in good shape.
Anything else to kind of clean up if you will that's on that side. Thanks.
At this point, we're not seeing any more chucky stuff that would come in.
There's nothing on our radar at all so that's kind of behind us, but with regards to the other submarkets you're going to answer the question. Yes. So again, that's on page 10 of the deck it lines that out Jeff, but it's $5 7 million for the PCB loan and six six for the Metro office property.
Got it thanks Scott.
That's all I had thank you.
Thanks, Jeff.
Thank you.
Our next question comes from the line of Andrew Shapiro with Stephens. Please go ahead.
Hey, good morning, Kevin Good morning Marci.
Good morning, Andrew.
Hey, most of mine have been asked and addressed already but maybe if I can just square.
Square out the deposits.
I guess, you've done a good job in running off some higher beta deposits over the past couple of quarters is there is there any more of that to go or do you feel like you're you're in a good spot as we move forward.
We feel like we're in a good spot and again most of these deposit runoff we didn't come out of the legacy Firstenergy portfolio. It came out a great question and I think they are.
Had some I guess larger chunkier deposits relationships then than we realized so we look at it right now most of that's behind us.
So if somebody goes out it's gonna be hopefully at a smaller chunk, but.
We think most of that's behind us.
<unk>.
Okay.
And then on the on the Securities portfolio.
I appreciate all the color there any any kind of further repositioning efforts that are that are possible.
And then mark.
A lot of movement in the bond book this quarter can you just help us out with what the yield on the securities portfolio was either spot or.
In the month of September .
So the yield coming off is about 2.2 going on it's right around three.
Sure.
Yes, let me, let me grab that as I noticed in the deck I just can't remember that number.
Hi, guys. Thank you very much.
Yes.
Okay.
Yeah.
Yes.
What was the rest of it is all about repositioning the investment portfolio. We continue to look at is there opportunities to do something right now.
We're just looking at what's going to happen with the <unk>.
Fed and everything else before we do any major reposition.
But you should expect maybe some small incremental.
Balance sheet.
Adjustments there.
Yeah, So Andrew Andrew It's John .
The average yield on the portfolio on an FTE basis in the month of September was in the mid $2 <unk>.
Perfect.
Very helpful. Okay. Thanks, taking the questions.
Thanks, Ed.
Thank you.
Our next question, it's our fault.
So up from the line of Chris Mcgratty with BW. Please go ahead.
Thanks, Thanks, that's all.
You see a lot of banks.
Steps this quarter too.
To take down rate sensitivity I appreciate what you did is there any.
Bigger steps with new swaps or floors or something derivative to to lock in some of the margin.
Yes.
We're looking at that as balance sheet measures as I said prior you know Chris is that.
We're in the process of trying to.
Kind of.
Redo, our balance sheet, a little bit from being as asset sensitive as well and taking some of that sensitivity out of the balance sheet. So that.
When rates do fall and we don't lose all the upside that we've already picked up here. So we are repositioning the balance sheet too.
Less asset sensitive.
Okay. Thanks.
Okay.
Thank you.
There are no additional questions waiting at this time.
To pass the conference back to Kevin Riley for any closing remarks.
Again, thank you for all your questions.
As always well.
<unk> calls from our investors and analysts please reach out to us if you have any follow up questions again, thanks for tuning in today Goodbye.
That concludes the first state Bank system, Inc. Third quarter earnings Conference call I Hope you all enjoy the rest of your day you may now disconnect your lines.
Okay.
Yeah.