Q1 2023 Peoples Bancorp Inc. Earnings Call
Good morning, and welcome to the Peoples Bancorp, Inc. Conference call. My name is Kate and I will be your conference facilitator today's call will cover a discussion of the results of operations for the quarterly period ended March 31st 2023.
Please be advised that all lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there will be a question and answer period. If you would like to ask a question. During this time simply press star one on your telephone keypad and questions will be taken in the order. They are received if you would like to withdraw your question Press Star then two.
This call is also being recorded if you object to the recording please disconnect at this time.
Please be advised that the commentary in this call will contain projections or other forward looking statements regarding peoples' future financial performance or future events. These statements are based on management's current expectations.
Statements in this call, which are not historical facts are forward looking statements and involve a number of risks and uncertainties detailed in Peoples' Securities and exchange Commission filings manner.
Management believes the forward looking statements made during this call are based on reasonable assumptions within the bounds of their knowledge of peoples business and operations. However, it is possible actual results may differ materially from these forward looking statements.
Peoples disclaims any responsibility to update these forward looking statements. After this call except as may be required by applicable legal requirements People's first quarter 2023 earnings release was issued this morning and is available at peoples Bancorp under invest dot com under Investor Relations.
A reconciliation of the non generally accepted accounting principles or GAAP financial measures discussed during this call to the most directly comparable GAAP financial measures is included at the end of the earnings release.
This call will be will include about 25 to 30 minutes of prepared commentary followed by a question and answer period, which I will facilitate an archived webcast of this call will be available on peoples Bancorp Dot com in the Investor Relations section for one year participants in todays call will be Chuck So the rescue.
President and Chief Executive Officer, and Katie Bailey, Chief Financial Officer, and Treasurer, and each will be available for questions. Following opening statements. Mr. Sella Rusty you may begin your conference. Thank you Kate good morning, and thank you for joining our call today based on our diversified business model and strong core deposit.
The franchise, we are pleased to report strong quarterly earnings in our earnings release earlier. This morning, we inadvertently under reported a weighted average diluted shares by 618965 shares.
As a result, our diluted earnings per share was <unk> 94 cents, which was two cents lower than we reported in our earnings release up 96 cents. We will issue an 8-K and 8-K with a new release today Katie will review our excellent results a little later in the call in light of the current events in the banking industry.
We will start our discussion with deposits liquidity credit and capital.
The base is a key strength of peoples at quarter end, only 32% of our deposit balances exceeded FDIC insurance limits.
This is down from 33% at year end.
We were keenly pledge investments securities against certain governmental deposit accounts, which covered nearly $700 million of uninsured deposit balances at quarter end.
Excluding our uninsured deposits that are covered by pledged investment securities are uninsured deposits were only 19% of total deposits at quarter end.
Our liquidity position more than covers the remaining uninsured deposits.
Positive comprised of 75% retail deposits, which includes consumers and small businesses and 25% commercial balances.
Average customer deposit relationship with $30000 at quarter end.
At the same time, our median retail customer balance it was a little over $3000, while our median commercial customer balance was approximately $65000.
We effectively controlled our cost of deposits, which was 40 basis points for the quarter compared to 19 basis points for the linked quarter.
At the same time, our cost of funds was 72 basis points compared to 36 basis points for the linked quarter.
Excluding brokered Cds, which we use for funding our deposit costs for the quarter were 29 basis points compared to 16 basis points for the linked quarter.
We estimate approximately 85% of our deposits are from rural markets, well only 15% come from urban markets. During the recent turmoil in other markets. Our clients have remained calm and we have seen little unusual deposit movement.
Our team has been proactive in educating our clients on FDIC insurance limits and the available options.
We have also been reassuring our clients about banks financial stability, which has been well received in the communities we service.
Our total deposits, excluding brokered Cds declined $76 million or 1% compared to year end.
We had we have had inflated deposits related to COVID-19. So some of that decline was expected over time.
We had outflows of savings and money market balances, but those were nearly offset with an increase in our retail Cds as we offered more attractive pricing.
We did experience a decline in our non interest bearing deposits. However, some of the decline was tempered by an increase in governmental deposits that are seasonal in nature.
Our demand deposits comprised 46% of total deposits at year end compared to 48% at year end and 47% a year ago.
Moving to our liquidity position, we continually monitor our liquidity position and have excellent balance sheet liquidity with quick access to funds our loan to deposit ratio stood at 82% at March 31st which was unchanged from year end a quarter.
Quarter end, we had look with viable assets of around 570 million, including cash and Unpledged investment securities.
We had nearly 3 million of contingent sources of liquidity, which include potential borrowings the value of other investments securities that had not been pledged and available theaters and Ics funding.
Of the 3 billion nearly 800 million of the available funding some lines available from the S. H L B and the FRB, assuming we have all available potential collateral pledge.
We have not utilized the federal reserve Bank term funding program since its inception, as we have not needed additional funding and there is uncertainty around the market's viewing it negatively.
We estimate that using this line as of March 31st in lieu of other funding from the U S. H L B and the F O B would have saved us around $740000 annually inexpensive.
This funding source also allows us to pledge investment securities at par as collateral instead of at market value.
We see the benefit of utilizing this line due to the lower cost compared to other funding sources and believes the projected savings is justified. Therefore, we may utilize this funding source in the future.
From a credit quality perspective, we had stable metrics compared to year end, our allowance for credit losses was 1.12% of total loans, which was flat compared to year end, while we increased reserves for pooled loans during the quarter much of this increase was offset by payoffs of individually.
Analyze loans, which resulted in a provision for credit losses that was mostly driven by charge offs during the quarter.
Nonperforming assets improved $2 4 million and declined 2.58% of total assets compared to six 3% at year end.
This decrease in nonperforming assets was driven by pay offs and pay downs on multiple relationships since year end, coupled with loans that would no longer past due the portion of our loan portfolio considered parent at quarter end was 98, 8% an improvement from 98, 6%.
At year end.
While the current rate environment has put pressure on commercial customers, we have not seen a meaningful uptick in delinquencies.
Quarterly annualized net charge off rate was 13 basis points for the quarter, an improvement from 18 basis points for the fourth quarter. This decline was driven by lower lease net charge offs, while consumer indirect loan charge offs have grown in recent periods and was seven basis points of net charge offs.
For the quarter compared to six basis points for the linked quarter and three basis points for the prior year quarter.
During the first quarter, a number of our indirect charge offs declined. However, the average size of charge offs through resulting in higher annualized net charge off rate due to used car pricing the indirect loan charge offs all within a range, we would expect and we're comfortable with that.
Our classified loans experienced a slight increase of $4 million compared to the linked quarter and this was driven by the downgrade of one commercial and industrial relationship.
At the same time, our criticized loans were up 4%. This increase was largely due to three commercial and industrial relationships the.
The increase in criticized loans was partially offset by pay downs of $16 million in upgrades of $2 million during the quarter with regards to commercial office space.
This remains a very small portion of our loan portfolio.
Total exposure was 107 million at quarter end and represented one 9% of our total loan portfolio.
The top 10 borrowers represent 55% of the commercial office space loan portfolio and have average liquidity of 15 million.
These borrowers averaged $6 million in commitments and $5 5 million in outstanding balances.
We only have one 7 million of commercial office space balances maturing in 'twenty two 'twenty three.
As for our multifamily real estate loan portfolio, our total exposure with 426 million at quarter end.
The outstanding balances of this portfolio with 235 million at quarter end and the majority of our exposure was it is within the construction phase.
And the majority of our exposure is within the construction phase with top tier developers.
This portfolio is concentrated in central Ohio, and our top 10 exposures account for 50% of the portfolio. The average liquidity of these top 10 borrowers is $21 million, we see no major problems without projects, while there has been the occasional permitting or construction delay.
Projects have largely been leasing up at the desired speeds with most of them at rents higher than projected.
We remain focused on growing and maintaining a diversified loan portfolio at quarter end, our commercial real estate loans comprised 31% of total loans, while commercial and industrial loans were 19%.
Structured loans of 5%.
Specialty finance loans totaled 10% and all consumer loans, what 35%.
Of all commercial real estate loans, 37% is owner occupied which we view more like commercial and industrial loans. We generally only do these transactions, where we banked the operating company.
Compared to year end all of the loan portfolio grew 4% on an annualized basis. This includes 16% annualized growth in commercial real estate loans, and 11% annualized growth in both leases and consumer indirect loan balances.
At quarter end, the percentage of fixed rate loans to total loans was 45% well our floating rate loans were 55% we have confidence in our ability to grow our overall loan portfolio organically with credit quality at the forefront of our process from a capital perspective.
Our capital ratios continued to be strong and grew at quarter end, we are meaningfully above well capitalized levels at March 31st even if we included our accumulated other comprehensive loss and held to maturity investment security losses, we would still be above well capitalized levels.
It's for all our capital ratios I will now turn the call over to Katy for additional details around our earnings and financial performance.
Chuck always feels the earnings discussion and I am delighted to report the following good news.
Earnings improved compared to the linked quarter and were highlighted by diluted EPS totaling 94 cents per share, which was negatively impacted by two cents for acquisition related expenses versus consensus estimates of 91 cent.
Continued improvement in our net interest income, which was up 3% and net interest margin expansion of nine basis points.
Fee based income growth of 9%, which was primarily due to the annual performance based insurance income we receive in the first quarter of each year.
Our pretax pre provision return on average assets grew five basis point to 2.11%.
We also had 4% annualized total loan growth compared to year end.
Our deposit costs, excluding brokered Cds remains low and only 13 basis points compared to the linked quarter.
Our tangible equity to tangible assets ratio improved to seven 1% and was up 41 basis points compared to year end.
At the same time, our tangible book value per share improved $1.14 compared to year end and was $17.37.
For the quarter, our net income was impacted by expected additional expenses, we typically recognized in the first quarter of each year.
As a result, our total noninterest expense for the in core for the quarter included employer contributions to health savings accounts and $591000 and stock based compensation expense for certain employees.
$1.1 million.
Combined these additional expenses reduced our diluted EPS by five cent.
We also incurred $551000 in acquisition related expenses for the quarter, which negatively impacted our diluted EPS by two cents.
Our net interest income grew compared to the prior period.
The higher market interest rates benefited our net our interest income outpacing the increase in our funding costs.
Compared to the linked quarter net interest margin grew nine basis points.
Accretion income declined over $220000 and added 13 basis points of margin compared to 14 basis points for the linked quarter.
During the first quarter, we sold nearly $100 million of available for sale investment Securities.
Recognize a loss of <unk>.
One $9 million.
We expect to recover this lost within the calendar year.
The purpose of the sales was to make our investment portfolio and overall balance sheet more efficient and improve net interest income.
Compared to the linked quarter, our investment yields improved 41 basis points.
Our total loan yields improved to six 1% from five 6% for the linked quarter and four 5% for the prior year quarter.
Our fee based income improved 9% compared to the linked quarter, primarily due to the annual performance based insurance commissions, we receive in the first quarter of each year.
Our total noninterest expense grew compared to the linked quarter.
As I mentioned earlier, we were impacted by additional costs, we typically recognized during the first quarter of each year.
We also had higher franchise tax and electronic banking expense compared to the linked quarter.
Our reported efficiency ratio was 57, 8% for the quarter compared to 56, 7% for the linked quarter.
When adjusted for Noncore expenses, our efficiency ratio was 57, 2% compared to 55, 9% for the linked quarter.
From a balance sheet perspective, we grew our investment securities portfolio to 24, 6% of total assets compared to 24, 2% at year end.
We have been selectively choosing certain securities to enhance our portfolio prior to the closing of the limestone merger as we manage towards our future outlook for the balance sheet.
We still anticipate that investment securities as a percent of total assets will decline in future periods as.
As we manage our liquidity position and bring on limestone.
We will continue to actively manage the investment securities portfolio and may be opportunistic as it relates to future sales as we were in the first quarter, where there is a benefit from an interest rate an earn back perspective.
From a liquidity viewpoint, we do not anticipate the need to liquidate our investments to ensure future liquidity.
As it relates to our interest rate sensitivity, we continue to manage to a relatively neutral balance sheet position.
We remain slightly asset sensitive.
We have taken actions over the last couple of quarters to reduce our exposure to lower interest rates, primarily through the investment security purchases we have made.
We anticipate that the limestone merger, while having minimal impact on our interest rate sensitivity position.
We believe they may reduce our asset sensitivity slightly but will not meaningfully change our interest rate profile.
We continue to have a strong capital position, which further agree with this quarter and exceeds well capitalized limit.
At quarter end, our common equity tier one capital ratio improved 30 basis points compared to year end.
While our total risk based capital grew 29 basis points, and our leverage ratio, including 10 basis points.
And reaction to the recent bank failures, we have taken additional steps to analyze our capital levels.
Although we exclude our accumulated other comprehensive loss from the calculation of our regulatory capital ratios.
As permitted by regulators, we completed an analysis, where we included that loss as well as losses on our held to maturity investment securities portfolio in our regulatory capital ratios.
Even including these unrealized losses, which totaled $165 million after tax are.
Our regulatory capital ratios have all been considered would have all been considered above well capitalized levels at March 31st 2023.
For example at quarter end, our common equity tier one capital ratio capital was $624 million or 12, 2% of risk weighted assets.
If you reduce our common equity tier one capital by our accumulated other comprehensive loss of $111 million that ratio, it's 10% of risk weighted assets.
If you further reduce our common equity tier one capital by our after tax unrealized loss on our held to maturity investment securities.
Which was 54 million. It is it resulted in a ratio of eight 7% of risk weighted assets.
These calculations are above the six 5% well capitalized level set by regulators for this particular ratio.
Our tangible equity to tangible asset ratio improved to seven 1% from six 7% at the linked quarter end.
As earnings net of dividends increased our capital coupled with a slight recovery in our accumulated other comprehensive loss.
We grew our book value per share and tangible book value per share by 15% and 28% respectively on an annualized basis compared to year end.
Earlier this morning, we announced a once that increased our quarterly dividend.
We remain focused on providing a quality return for our shareholders and have increased our dividend for eight consecutive years.
I will now turn the call back to Chuck for additional comments.
Thank you Katie we had another strong quarter and continue to look forward to our future at the same time, we are working to assess our readiness to cross the $10 billion asset threshold.
We're in no hurry to cross the threshold. However, we want to be prepared as soon as possible. So that we do not restrict ourselves from seizing opportunities that could be beneficial for our future success with this in mind, we have engaged a third party accounting and consulting firm to assist with our analysis and preparation.
Process as far as our merger with limestone, we are on track as far as timing and we expect to hit our internal metrics on projected cost savings. We have received regulatory approval in the plan to close the merger as of the close of business on April 30th.
We have a separate conversion date in the third quarter, where our core process.
Coordinating our processes and those of limestone between the close and conversion dates with our operations teams for months, we have been engaging with the clients and communities served by limestone.
We're actively ensuring all full suite of products will be available in the limestone markets, including indirect lending mortgage yellow floor plans insurance trust and specialty finance opportunities. We are optimistic about our combined future and were excited about the talent we are picking up in the merger.
We want to finish up.
With our guidance for the remainder of 2023. These projections include the impact of the pending limestone merger, but exclude acquisition related expenses. During the rest of 2023, we expect our net interest income to continue to grow due to the impact of the limestone merger as well as the full year.
Bits of higher market interest rates as our loans re priced to the newest rate as we noted during our last call. We expect net interest margin expansion to slow throughout the year as we continue to increase our funding costs with those items in mind, we believe that net interest margin for 2023 will be.
Duane will be between four 4% and four 6%, which assumes relatively flat market interest rates for 2020 three.
Compared to year end 2022 however, the second quarter might come in below this range given the merger closing and a related purchase accounting adjustments, but we expect the full year margin will be within this range, we anticipate loan growth of between 25, and 30%, including the new law.
Stone balances, while we believe our annual organic growth without the acquired loans will be between five and 7%.
We expect fee based income percentage growth to be in the low double digits compared to 2022 which includes the impact of the pending limestone merger.
We are anticipating a 21% increase in our total noninterest expenses for 2023, excluding acquisition related expenses compared to the full year of 2022, assuming we achieve our anticipated cost savings for the merger.
So I'll close and conversion dates are separate limestone merger. We believe we will incur acquisition related expenses during the second quarter of between nine and $10 million with another $4 million to $5 million during the third quarter.
We will also record a provision for credit losses during the second quarter to establish the allowance for credit losses for the acquired non purchased credit deteriorated loans from limestone, we estimate that the provision for credit losses, We will we will record will be between 11 and 13.
Million. However, there are many moving pieces in this number is subject to change.
Our efficiency ratio, excluding one time expenses to be between 55% and 57% for the full year, including the impact of the addition of limestone. We believe we will have an increase of about five basis points and our net charge off rate during 2023 compared to 2022.
As far as bank performance, we understand that the analysts are cutting earnings projections for institutions across the board, but we do not believe this to be an accurate indicator for investors. The peoples, we recommend that analysts look at each bank individually and inform the market based on their analysis specifically of course the.
Board moves short can't shortchange, the quality of our deposit book and the strength of our margin we remain comfortable with our original 2023 estimates.
All perspective, we believe our deposit loan growth earnings trajectory and the impact of limestone merger make it likely that we will grow earnings between 18 and 19% in 2023.
Concludes our commentary and we will open the call for questions. Once again. This is Chuck seller Rusty and journey joining me for the Q&A session is Katie Bailey, our Chief Financial Officer, I will now turn the call back into the hands of our call facilitator Kate Thank you.
We will now begin the question and answer session.
A question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys to withdraw from the question queue. Please press Star then two.
Our first question is from Brendan Nosal of Piper Sandler. Please go ahead.
Hey, good morning, folks hope, you're doing well hi, Brendan Brennan.
Maybe just to start off on funding costs here I mean, they remained remarkably benign for you folks over the course of this tightening cycle I'm.
I was just curious if given all of the changes for the banks space over the past few months is there a point at which there's a larger catch up.
Just kind of given where the yield curve is versus your current funding costs and then also the need to maybe more actively maintained deposit balances.
Nothing crazy nothing more than what you've seen already I think you know the difference between this quarter and last quarter. You know I think might expect that are you know going forward, but nothing that nothing more severe than that and again I think it's a testament to the markets that we serve you know where.
And a lot of places that you know a lot of people have left.
The large competitors.
Yep Yep Okay.
Perhaps one more for me.
You folks mentioned getting prepared internally for for 10 billion in assets and I was just kind of wondering what that process looks like in terms of your your.
Tight for M&A in the near term under that kind of pushes out a desire to do deals as you get ready internally.
Well the process review to answer the first part of the question what that process looks like it's a comprehensive review of all of our processes as it relates to the <unk>.
Compliance credit accounting operations systems et cetera.
As far as our appetite.
For M&A in the short term, we'd like to get limestone closed this week and converted in August and make sure that's up in failing.
You know we're in as I said, no hurry to cross $10 billion, but we don't want to leave.
We don't want to be left not able to take advantage of a situation.
Should something that we view as strategically important come along so if we could pick it up.
No we've crossed $10 billion.
Couple of years out, but we may not have that ability to pick it.
Yeah understood.
Thank you for taking the questions. Thank you in front of them.
The next question is from Daniel Tamayo of Raymond James. Please go ahead.
Hey, good afternoon, everyone.
Maybe first just following up on the funding discussion I'm, just curious kind of how you're thinking about the interim.
Play between when you are using the wholesale funding if its brokerage Cds if it's if it's FH there'll be how you're thinking about that and then how far out you're going in terms of.
No maturities with with the with those fundings.
Sure So as you.
You saw in the results for the first quarter relative to the fourth quarter. We did access the brokered CD market on that is that pricing was advantageous compared to what our primary source historically and continues to be the F. H LP for overnight funding needs. So.
We didn't use the brokered.
And they're generally going were going out three to six months.
On the brokerage side, so not real long given our current expectations on the rates.
Understood that makes sense.
And then my follow up is around the limestone I saw they're released this morning.
We're.
Office exposure, which was just curious if you have a sense for how much limestone would add to the 107 million you mentioned in terms of overall office and if that's mostly Louisville.
Yeah. They are they have a little bit more heavy weighting in office than we are than we do.
Give me a minute or two what to come up with a number.
For you, yes on the geography.
It's more.
Okay.
So they have a 51 million extra in in office and we have more in central Kentucky, Louisville Lexington focused.
Got it okay.
Alright, that's helpful. Yeah. That's a that's all I had thank you great. Thank you.
The next question is from Terry Mcevoy Stephens. Please go ahead.
Hi, This is Brandon Ruden on for Jerry Hi, Brendan.
First question here, just kind of talk about your thoughts on the noninterest noninterest bearing deposit flow and where those could bottom as a percent of total deposits.
I think the trend that we've seen in terms of a percent or so deterioration a quarter not quite at the same if you look at since the beginning of the rate rises.
You know I think that that you know continuing for a little bit.
As you know is likely but I don't think you're going to see massive.
Massive changes in AR and the ratio between the interest bearing in the noninterest bearing DDA it was.
Is it pretty stable long term AR.
Long term customers.
Okay, perfect and when I think in your NIM Guide you said 440 to $4 60 for the year.
Two Q coming in lower than that I I get there's some movement with the with the merger, but do you think on a core basis or on a stand alone People's basis. The margin has peaked or is there further room for expansion there.
I think it's about where it's going to going to get you know get to if you take the noise out with the acquisition.
Okay.
Just one on credit quick the criticized loan increase I think in the release it says CNI.
Did you have any specifics on which which in in in industries. Those credits were in.
It was the.
And dealer floor plan.
Okay.
And sorry, just one last one so that the decision to restructure the securities portfolio what point in the quarter was that was there or was it in mid mid Barts excuse me. It was mid March the catalyst for that or is that prior to all the events. Yeah. That's prior to all of that actually there was a piece of it done and mid to late February and then a piece.
It was done very early in March.
Perfect.
Those are the questions I had thank you.
Thank you.
Again, if you have a question. Please press Star then one the next question comes from them well Novack of D. A Davidson. Please go ahead.
Hey, good morning, Marty how should we how should we think about kind of our deposit growth was on a core basis for the year.
What kind of some of the puts and takes there.
I think there's some seasonality in our deposits some flows with public yeah.
I think at 82% loan to deposit ratio I think that we have.
Fair amount of room.
We don't need to.
Price more aggressively than where pricing so I expect minimal deposit growth outside of the a limestone.
<unk> acquisition.
And I think that's a you know.
That'll help us from a margin perspective.
Yeah, and I would say there will likely continue to be a mix shift within the portfolio as you've seen in the last few quarters out as kind of the lower cost deposits into more of the C. DS and I when I say C. DS I'm thinking retail kind of C. DS customer Cds will continue to look at the brokered market as a funding source.
And I know that rolls up into deposits, but that's viewed more as fundings than kind of customer deposits per se.
I appreciate that.
Kind of a bigger picture what kind of shifts in your thinking if a recession hit like a second half of the year in terms of some of your guidance isn't and.
That's a piece of that.
Where are some of the opportunities where your guidance could be almost conservative.
Yeah.
[laughter], so which knife do you want us to split off throat with okay. The I don't see a recession, we don't have a great deal of optimism on the economy baked into those numbers you know we're in markets that don't grow our proposition is very simple the only way we can grow with to take business away from the competition.
And that doesn't change in good times or bad times. So in some ways. It's a little you know recession.
It's independent of any recession.
What I would say is that the leasing businesses that we have no may do a little better in harder and harder times than the core business. So that will help offset any you know any flows but we don't have a lot of great growth in there in terms of based off of the economy.
Yeah.
Does that help you.
Yeah.
So I feel like I think we've kind of covered most other things. So I really appreciate the color.
Thank you. Thank you.
The next question is a follow up from Brendan Nosal of.
Piper Sandler. Please go ahead.
Just one more from me.
Thank you for the commentary on the margin just in terms of kind of where the <unk> lands versus the full year guide.
I guess looking beyond that does the margin move back up in this third quarter, given the <unk> pressures on kind of purchase accounting noise or is that just a reset lower that kind of carries through the rest of the year no. It resets higher and what that what we're just giving a heads up to in the second quarter is as you're well aware we go through day one valuation.
And there'll be preliminary at 630 that were using to record off of and there'll be likely true ups that happened in the third quarter. So there'll be some noise in mostly the accretion income that is recorded in each of those periods. So that's why we're there's a potential that Q2 might be slightly lower than the guidance and then it'll bounce back in that.
Range in the third and fourth quarter.
Got it but it sounds like all of that noise will be purchase accounting and not the core margin correct, correct and well disclose it absolutely always do.
Perfect. Thank you for taking the follow up.
At this time there are no further questions. Sir do you have any closing remarks, yes.
Yes, I'd like to thank everyone for joining our call. This morning. Please remember that our earnings release and a webcast of this call will be archived at peoples Bank Corp, Dot com under the Investor Relations section. Thank you for your time and have a great day.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.