Q2 2024 Washington Trust Bancorp Inc Earnings Call
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Unknown Executive: Thank you for timing, Bob.
Operator: Good morning and welcome to Washington Trust Bancorp Inc.'s conference call.
Lydia: Good morning and welcome to Washington Trust Bancorp Inc's conference call. My name is Lydia and I'll be your operator today.
Operator: My name is Lydia, and I'll be your operator today. If participants need assistance during the call at any time, please press Start there.
Lydia: If participants need assistance during the call at any time, please press star 0. Participants interested in asking a question at the end of the call should press star 1 to get in the queue. As a reminder, today's call is being recorded.
Operator: How to spend interested in asking a question at the end of the call should press star 1 to get in the queue?
Operator: As a reminder, today's call is being recorded.
Unknown Executive: If participants need assistance during the call at any time, please press star zero. Participants interested in asking a question at the end of the call should press star 1 to get in the queue. As a reminder, today's call is being recorded. I'd now like to turn the call over to Elizabeth Eckel, Executive Vice President, Chief Marketing and Corporate Communications Officer. Please go ahead.
Elizabeth Eckel: I'd now like to turn the call over to you, Elizabeth Eckel. Executive Vice President, Chief Marketing and Corporate Communications Officer.
Lydia: I'd now like to turn the call over to Elizabeth Eckel, Executive Vice President, Chief Marketing and Corporate Communications Officer. Please go ahead.
Edward Handy: Please go ahead. Thank you, Lydia.
Elizabeth Boyle Eckel: Thank you, Lydia. Good morning, and welcome to Washington Trust Bancorp Inc.'s conference call for the second quarter of 2024. Joining us this morning are members of Washington Trust's executive team, Ned Handy, Chairman and Chief Executive Officer, Mary Noons, President and Chief Operating Officer, Ron Ohsberg, Senior Executive Vice President, Chief Financial Officer, and Treasurer, and Bill Wray, Senior Executive Vice President and Chief Risk Officer. Please note that today's presentation may contain forward-looking statements, and our actual results could differ materially from what is discussed on today's call.
Edward Handy: Good morning and welcome to Washington Trust Bancorp Inc's conference call for the second quarter of 2024. Joining us this morning are members of Washington Trust's executive team: Ned Handy, Chairman and Chief Executive Officer; Mary Noons, President and Chief Operating Officer; Ron Osberg, Senior Executive Vice President, Chief Financial Officer, and Treasurer; and Bill Wray, Senior Executive Vice President and Chief Risk Officer. Please note that today's presentation may contain forward-looking statements, and our actual results could differ materially from what is discussed on today's call. Our complete safe harbor statement is contained in our earnings release, which was issued yesterday, as well as other documents that are filed with the SEC.
Elizabeth Boyle Eckel: Thank you, Lydia. Good morning and welcome to Washington Trust Bancorp Inc.'s conference call for the second quarter of 2024. Joining us this morning are members of Washington Trust's executive team, Ned Handy, Chairman and Chief Executive Officer, Mary Noons, President and Chief Operating Officer,
Elizabeth Boyle Eckel: Ron Ohsberg, Senior Executive Vice President, Chief Financial Officer and Treasurer, and Bill Wray, Senior Executive Vice President and Chief Risk Officer.
Speaker Change: Please note that today's presentation may contain forward-looking statements.
Speaker Change: and our actual results could differ materially from what is discussed on today's call. Our complete Safe Harbor Statement is contained in our earnings release.
Speaker Change: which was issued yesterday, as well as other documents that are filed with the SEC. All of these materials and other public filings are available on our Investor Relations website at irwashtrust.com.
Unknown Executive: All of these materials and other public filings are available on our Investor Relations website at IRWashTrust.com. Washington Trust trades on NASDAQ under the symbol Wash.
Elizabeth Boyle Eckel: Our complete safe harbor statement is contained in our earnings release, which was issued yesterday, as well as other documents that are filed with the SEC. All of these materials and other public filings are available on our investor relations website at irwashtrust.com. Washington Trust trades on NASDAQ under the symbol WASH. I'm now pleased to introduce today's host, Washington Trust Chairman and Chief Executive Officer, Ned Handy.
Edward Handy: I'm now pleased to introduce today's host, Washington Trust Chairman and Chief Executive Officer, Ned Handy. Thank you, Beth. Good morning, and thank you for joining our second quarter conference call. We appreciate your time and interest in Washington Trust. I'll provide brief comments, and then Ron Osberg will offer more detail regarding our second quarter performance.
Edward Otis Handy: Washington Trust trades on NASDAQ under the symbol WASH. I'm now pleased to introduce today's host, Washington Trust Chairman and Chief Executive Officer Ned Handy. Ned?
Edward Otis Handy: Thank you, Beth. Good morning, and thank you for joining our second quarter conference call. We appreciate your time and interest in Washington Trust. I'll provide brief comments, and then Ron Ohsberg will offer more detail regarding our second quarter performance. After our prepared remarks, Mary Noons and Bill Wray will join us for the Q&A session.
Edward Otis Handy: Thank you, Beth. Good morning and thank you for joining our second quarter conference call. We appreciate your time and interest in Washington Trust. I'll provide brief comments and then Ron Ohsberg will offer more detail regarding our second quarter performance. After our prepared remarks, Mary Noons and Bill Wray will join us for the Q&A session.
Edward Handy: After our prepared remarks, Mary Noons and Bill Wray will join us for the Q&A session. We continue to prioritize building balance sheet strength, managing credit, controlling expenses, and positioning to be opportunistic for earnings growth as the economy and interest rates allow. Capital ratios improve somewhat in the quarter as we deemphasize asset growth and stabilize earnings in the quarter. Credit remains strong and expenses are down quarter over quarter. We've introduced new deposit growth oriented tools to enhance our customers' experience, and online accounting, banks switching, and to reward our customers for referrals. We look forward to opening a new branch in the Onlyville section of Providence next month.
Edward Otis Handy: We continue to prioritize building balance sheet strength, managing credit, controlling expenses, and positioning to be opportunistic for earnings growth as the economy and interest rates allow. Capital ratios improved somewhat in the quarter as we de-emphasized asset growth and stabilized earnings. Credit remains strong, and expenses are down quarter over quarter. We've introduced new deposit growth-oriented tools to enhance our customers' experience in online account opening, bank switching, and to reward our customers for referrals.
Ronald Stephen Ohsberg: We continue to prioritize building balance sheet strength, managing credit, controlling expenses, and positioning to be opportunistic for earnings growth as the economy and interest rates allow.
Ronald Stephen Ohsberg: Capital ratios improved somewhat in the quarter as we de-emphasized asset growth and stabilized earnings in the quarter.
Speaker Change: Credit remains strong and expenses are down quarter over quarter. We've introduced new deposit growth-oriented tools to enhance our customers' experience in online account opening, bank switching, and to reward our customers for referrals.
Edward Otis Handy: We look forward to opening a new branch in the Oneyville section of Providence next month. Other than this branch, we have no other planned branch expansion at this time. In recent years, we shifted much of our operations to the cloud, allowing us to make a strategic decision to sell our operations center and consolidate team members into existing offices. We continue to review every owned or leased space for optimization of our occupancy efficiency.
Speaker Change: We look forward to opening a new branch in the Oneyville section of Providence next month. Other than this branch, we have no other planned branch expansion at this time.
Edward Handy: Other than this branch, we have no other planned branch expansion at this time.
Edward Handy: In recent years, we shifted much of our operations to the cloud, allowing us to make a strategic decision to sell our operations center and consolidate team members into existing offices. We continue to review every own or least space for optimization of our occupancy efficiency. With continued pressure in the margin, our fee-based businesses, wealth and mortgage performed well and generated higher revenues in the quarter. Again, continued expense discipline and our diversified revenue-based contributed nicely to this quarter's results.
Speaker Change: In recent years, we shifted much of our operations to the cloud, allowing us to make a strategic decision to sell our operations center and consolidate team members into existing offices. We continue to review every owned or leased space for optimization of our occupancy efficiency.
Edward Otis Handy: With continued pressure on the margin, our fee-based businesses, Wealth and Mortgage, performed well and generated higher revenues in the quarter. Again, continued expense discipline and our diversified revenue base contributed nicely to this quarter's results. I'll now turn the call over to Ron for some more detail on the quarter, and then we'll be glad to address any questions. Thanks, Ned, and good night.
Speaker Change: With continued pressure on the margin, our fee-based businesses, Wealth & Mortgage, performed well and generated higher revenues in the quarter. Again, continued expense discipline and our diversified revenue base contributed nicely to this quarter's results.
Ronald Osberg: Now turn the call over to Ron for some more detail on the quarter, and then we'll be glad to address any questions. Thanks, net, and good morning, everyone. Second quarter, net income was 10.8 million of 63 cents per share. Net interest income was 31.6 million in the margin was 183. Aberdearning assets increased by 7 million in had a yield of 4.97, up by 4 basis points. On the funding side, average and market interest varying deposits increased by 36 million. And average wholesale funding decreased by 25 million. The rate on interest bearing liabilities increased by 5 basis points to 368.
Speaker Change: I'll now turn the call over to Ron for some more detail on the quarter, and then we'll be glad to address any questions, Ron? Yeah, thanks, Ned, and good morning everyone.
Ronald Stephen Ohsberg: Thanks, Ned, and good morning, everyone. Second quarter net income was $10.8 million, or $0.63 per share. Net interest income was $31.6 million, and the margin was $183. Average earning assets increased by $7 million and had a yield of $4.97, up by 4 basis points. On the funding side, average in-market interest-bearing deposits increased by $36 million, and average wholesale funding decreased by $25 million. The rate on interest-bearing liabilities increased by five basis points to $368.
Ron: Second quarter net income was $10.8 million or $0.63 per share. Net interest income was $31.6 million and the margin was $183.
Speaker Change: Average earning assets increased by $7 million and had a yield of $4.97, up by 4 basis points.
Ron: On the funding side, average in-market interest-bearing deposits increased by $36 million, and average wholesale funding decreased by $25 million. The rate on interest-bearing liabilities increased by five basis points to $368.
Ronald Stephen Ohsberg: Prepayment fee income was $46,000 in the second quarter and $20,000 in the first quarter, neither with any impact on the margin. Non-interest income comprised 35% of revenue and amounted to $16.7 million, down by 503,003% from Q1. In the second quarter, we recorded a $988,000 gain on the sale of our Operations Center, while the first quarter included $2.1 million in settlement income. Excluding these items, non-interest income was up by 609,000, or 4%.
Ronald Osberg: Pre-payment fee income was 46,000 in the second quarter and 20,000 in the first quarter, neither within the impact to the margin. 9 interest income comprised 35% of revenue in a amount of to 16.7 million, down by 533,000 of 3% from Q1. Included in the second quarter was a 988,000 dollar gain on the sale of our operations center, while the first quarter included 2.1 million in settlement income. Excluding these items, 9 interest income was off by 609,000, or 4%. Welcome management revenues were 9.7 million, up by 340,000 or 4%. This included an increase of 190,000 in seasonal transaction base revenues, largely tax servicing, as well as an increase of 150,000 in asset base revenues, which correlated to an increase of 1% in average AOA balances.
Ron: Prepayment fee income was $46,000 in the second quarter and $20,000 in the first quarter, neither with any impact to the margin.
Ron: Non-interest income comprised 35% of revenue and amounted to $16.7 million down by $503,000 or 3% from Q1.
Ron: Included in the second quarter was a $988,000 gain on the sale of our operations center, while the first quarter included $2.1 million in settlement income. Excluding these items, non-interest income was up by $609,000 or 4%.
Ronald Stephen Ohsberg: Wealth management revenues were $9.7 million, up by $340,000, or 4%. This included an increase of $190,000 in seasonal transaction-based revenues, largely tax servicing, as well as an increase of $150,000 in asset-based revenues, which correlated to an increase of 1% in average AUA balance. Mortgage banking revenues totaled $2.8 million, up by $255,000 or 10%. Realized gains were $2.2 million, up by 39%.
Ron: Wealth management revenues were $9.7 million, up by $340,000 or 4%.
Ron: This included an increase of $190,000 in seasonal transaction-based revenues, largely tax servicing, as well as an increase of $150,000 in asset-based revenues, which correlated to an increase of 1% in average AUA balances.
Ronald Osberg: Mortgage banking revenues total 2.8 million, up by 255,000 or 10%. Realized gains were 2.2 million, up by 39%. Turning to expenses, 9 interest expenses were down 450,000 or 1% from Q1. Salary's expense decreased by 500 and 15,000 or 2%, reflecting lower staffing levels in payroll tax expense, partially offset by higher mortgage commissions. In the second quarter, the affected tax rate was 21.8%. We estimate our full year 2024 effective tax rate will be 21.2%.
Ron: Mortgage banking revenues totaled $2.8 million, up by 255,000 or 10%. Realized gains were $2.2 million, up by 39%.
Ronald Stephen Ohsberg: Turning to expenses, non-interest expenses were down 453,000 or 1% from Q1. Salaries expense decreased by 515,000 or 2%, reflecting lower staffing levels and payroll tax expense, partially offset by higher mortgage commissions. In the second quarter, the effective tax rate was 21.8%. We estimate our full year 2024 effective tax rate will be 21.2%.
Ron: According to expenses, non-interest expenses were down 453,000 or 1% from Q1. Salaries expense decreased by 515,000 or 2%, reflecting lower staffing levels and payroll tax expense, partially offset by higher mortgage commissions.
Speaker Change: In the second quarter, the effective tax rate was 21.8%. We estimate our full year 2024 effective tax rate will be 21.2%.
Ronald Osberg: Center. Turning to the balance sheet, total loans were down by 56 million, or 1%, from March 31st. In the second quarter, total commercial loans decreased by 22 million, or 1%. In residential loans decreased by 27 million, also 1%. In market deposits, which exclude wholesale broker time deposits, which were seen only down by 37 million from March 31st. Wholesale broker deposits were down by 355 million. In federal home loan bank borrowings were up by 310 million from March 31st, reflecting a shift in wholesale funding mixed based on pricing. A loan to deposit ratio increased in the quarter due to the reduction in broker deposits.
Ronald Stephen Ohsberg: Turning to the balance sheet, total loans were down by $56 million, or 1%, for March 31. In the second quarter, total commercial loans decreased by $22 million, or 1%, and residential loans decreased by $27 million, also 1%. In-market deposits, which exclude wholesale broker time deposits, were seasonally down by $37 million from March 31. Wholesale broker deposits were down by $355 million, and federal home loan bank borrowings were up by $310 million from March 31st, reflecting a shift in the wholesale funding mix based on pricing. A loan-to-deposit ratio increased in the quarter due to the reduction in broker deposits. We have since replenished broker deposits in the third quarter, and are turning to asset quality. These metrics remain solid.
Speaker Change: Turning to the balance sheet, total loans were down by $56 million, or 1% from March 31st. In the second quarter, total commercial loans decreased by $22 million, or 1%.
Speaker Change: And residential loans decreased by $27 million, also 1%.
Speaker Change: In-market deposits, which exclude wholesale broker time deposits, were seasonally down by 37 million from March 31st.
Speaker Change: Wholesale broker deposits were down by $355 million and federal home loan bank borrowings were up by $310 million from March 31st, reflecting a shift in wholesale funding mix based on pricing.
Speaker Change: A loan-to-deposit ratio increased in the quarter due to the reduction in broker deposits. We have since replenished broker deposits in the third quarter.
Ronald Osberg: We have since replenished broker deposits in the third quarter. All right, and turning to asset quality, these metrics remain solid; not occurring loans were 54 basis points. And past two loans were 21 basis points as a percentage of total loans. The allowance total, 42.4 million or 75 basis points of total loans, and provided NGL coverage of 139%. We had net charge drops of 27,000 in the second quarter, in 79,000 year to day.
Ronald Stephen Ohsberg: Non-accruing loans were 54 basis points, and past due loans were 21 basis points as a percentage of total loans. The allowance totaled 42.4 million or 75 basis points of total loans and provided NPL coverage of 139%. We had net charge-offs of $27,000 in the second quarter and $79,000 year-to-date. And at this point, I will turn the call back to Nick.
Speaker Change: Turning to asset quality, these metrics remain solid.
Speaker Change: Non-accruing loans were 54 basis points.
Speaker Change: and past due loans were 21 basis points as a percentage of total loans. The allowance totaled 42.4 million or 75 basis points of total loans and provided NPL coverage of 139 percent.
Speaker Change: We had net charge roughs of $27,000 in the second quarter and $79,000 year-to-date. And at this point, I will turn the call back to Nick.
Edward Handy: And at this point, we'll turn the call back to Net.
Edward Handy: Thank you, Ryan. I know you're all busy this morning, so we will go right ahead and turn it to questions.
Nick: Thank you, Ron. I know you're all busy this morning, so we will go right ahead and turn it to questions. So Lydia, if you'd open the lines.
Operator: So, Lydia, open the lines. Thank you. Please press staff all above the number one. If you'd like to ask a question and ensure your devices are needed locally, when it's your time to speak.
Unknown Executive: Please press star followed by the number 1 if you'd like to ask a question and ensure your device is unmuted locally when it's your turn to speak. Our first question today comes from Mark Fitzgibbon with Piper Sandler. Please go ahead; your line is open.
Speaker Change: Thank you.
Lydia: Please press star followed by the number one if you'd like to ask a question and ensure your device is unmuted locally when it's your turn to speak.
Mark Fitzgibbon: Our first question today comes from Mark Fitzgibbon, was by the handler. Please go ahead. Your line is open.
Lydia: Our first question today comes from Mark Fitzgibbon with Piper Sandler. Please go ahead, your line is open.
Mark Thomas Fitzgibbon: Hey guys, good morning. It looked like you replaced 300 million or so of broker deposits with FHLB advances, and I know, Ron, you had said that you replaced those subsequently, but what was the rough difference in rate between the broker deposits and the FHLB advances?
Mark Fitzgibbon: Hey, guys. Good morning. Good morning, Ned.
Mark Thomas Fitzgibbon: Hey guys, good morning.
Ronald Osberg: It looked like you replaced 300 million or so of broker deposits with FHLB advances. And I know Ron, you had said that you replaced those subsequently, but what was the rough difference in rate between the broker deposits and the FHLB advances?
Speaker Change: Good morning, Mark.
Ned: Good morning, Ned. It looked like you replaced 300 million or so of broker deposits with FHLB advances, and I know, Ron, you had said that you replaced those subsequently, but what was the rough difference in rate between the broker deposits and the FHLB advances?
Ronald Osberg: Yeah, I'm Mark. It could be, you know, 1,015 basis points. I mean, we look at those pretty much interchangeable sources of funding. So, whichever is cheaper is where we tend to go. The loan to deposit ratio, because of that moving, is starting to creep up a little bit. I think it was 113%. How high are you willing to let that go? Yeah, it's back down to 177 right now after we added those deposits back. So, it was, we don't want that ratio to be any higher than it is now, to be honest. I mean, we're trying to bring deposits in, just like everyone else.
Ronald Stephen Ohsberg: Yeah, Mark, it could be, you know, 10, 15 basis points. I mean, we look at those as pretty much interchangeable sources of funding. So whichever is cheaper is where we tend to go.
Ron: Yeah, Mark, it could be, you know, 10-15 basis points. I mean, we look at those as pretty much interchangeable sources of funding.
Ron: So, whichever is cheaper is where we tend to go.
Ronald Stephen Ohsberg: The loan to deposit ratio, because of that movement, is starting to creep up a little bit. I think it was 113%. How high are you willing to let that go?
Speaker Change: The loan to deposit ratio, because of that movement, is starting to creep up a little bit. I think it was 113%. How high are you willing to let that go?
Edward Otis Handy: Yeah, it's back down to 107 right now after we added those deposits back. So we don't want the ratio to be any higher than it is now, to be honest. I mean, we're trying to bring deposits in just like everyone else.
Mark Thomas Fitzgibbon: Yeah, it's back down to 107 right now after we added those deposits back.
Speaker Change: So, listen, we don't want that ratio to be any higher than it is now, to be honest. I mean, we're trying to bring deposits in just like everyone else.
Edward Otis Handy: And we emphasize asset growth, Mark. I think you saw loans down in the quarter. We're, we're, we'd love to be at 100% or below. But, but that's the challenge as it is for a lot of folks.
Ronald Osberg: And we'd be able to size asset growth mark. I think you saw loans down in the quarter. We're, we are, we'd love to be at 100% or below, but that's the challenge, as it is for a lot of folks. And, you know, deposit growth continues to be our number one priority. And we're focused on that both in our cash management area. And obviously in the retail side of the bank. So, I think where we are now is we're comfortable with it, but we'd like to maintain or reduce. Yes.
Ron: And we've de-emphasized asset growth, Mark. I think you saw loans down in the quarter.
Mark Thomas Fitzgibbon: We'd love to be at 100% or below, but that's a challenge as it is for a lot of folks, and deposit growth continues to be our number one priority.
Edward Otis Handy: And, you know, deposit growth continues to be our number one priority. And we're focused on that, both in our cash management area and, obviously, in the retail side of the bank. So I think where we are now is that we're comfortable with it, but we'd like to maintain or reduce it.
Ron: And we're focused on that both in our cash management area and obviously in the retail side of the bank. So I think where we are now is we're comfortable with it, but we'd like to maintain or reduce.
Mark Thomas Fitzgibbon: Okay. And then you had, again, a bit of an outflow in the wealth management business. I think it was 163 million. Any more, you know, departures of relationship people in the wealth management business recently?
Mark Fitzgibbon: Okay. And then you had again a bit of an outflow in the wealth management business. I think it was 163 million.
Speaker Change: Okay, and then you had again a bit of an outflow in the wealth management business I think was 163 million. Any more you know departures of relationship people in the wealth management business recently?
Mary Noons: Any more, you know, departures of relationship people in the wealth management business recently?
Mary Noons: Hi, Mark.
Mary E. Noons: Hi Mark, this is Mary Noons, and I'll take that question. We did have departures of two advisors, and we had an unfortunate, unexpected, uh..., death of one of our advisors. The departures were unrelated. One was in the first quarter, and one was in the second quarter.
Mary Noons: This is Mary Noons. And now I'll take that question. We did have, we did have departures of two advisors, and we had an unfortunate, unexpected death of one of our advisors. The departures were unrelated. One was in the first quarter. One was in the second quarter. So there's no trend on that. This was in the Rhode Island offices where there are team-based approach. So we've had a minimal outflow attributed to that. We really just had. We've looked very deeply into the outflow composition, and we're not seeing any trends on this. It just was some client deaths that resulted in the estates being closed out and some other client offenses at higher levels than we've seen.
Speaker Change: Hi Mark, this is Mary Noons and I'll take that question. We did have
Mary E. Noons: We did have departures of two advisors and we had an unfortunate, unexpected death of one of our advisors. The departures were unrelated, one was in the first quarter, one was in the second quarter.
Mary E. Noons: So there's no trend on that. This was in the Rhode Island offices, where there is a team-based approach. So we've had minimal outflow attributed to that. We really just had, we've looked very deeply into the outflow composition, and we're not seeing any trends on this. It just was some client deaths that resulted in the estate being closed out and some other client expenses at higher levels than we've seen, but we're keeping a very close eye on that.
Speaker Change: So there's no trend on that. This was in the Rhode Island offices where there are team-based approach. So we've had minimal outflow attributed to that.
Speaker Change: We really just had, we've looked very deeply into the outflow composition and we're not seeing any trends on this. It just was some client deaths that resulted in...
Speaker Change: the estates being closed out and some other client expenses at higher levels than we've seen. But we're keeping a very close eye on that.
Mary Noons: But we're keeping a very close eye on that. Okay.
Ronald Stephen Ohsberg: Okay. And then, Ron, I wondered if you could share with us some thoughts on sort of the outlook for NIM, assuming maybe one Fed cut in September and also the outlook for expenses in the third quarter.
Ronald Osberg: And then Ron, I wondered if you could share with us some thoughts on sort of the outlook for the NIM, assuming maybe one Fed cut in September and also outlook for expenses in the third quarter. Yeah. So, you know, I'm only going to go out one quarter on the NIM, and we think NIM in Q3, we pretty much align with Q2.
Ron: Okay. And then Ron, I wondered if you could share with us some some thoughts on sort of the outlook for the NIM, assuming maybe one Fed cut in September and and also outlook for expenses in the third quarter?
Ronald Stephen Ohsberg: So, you know, I'm only going to go out for one quarter on the NIMM, and we think NIMM and Q3 will be pretty much in line with Q2. But, you know, I don't think at this point anyone really knows what the Fed is going to do and when they will start to reduce rates. As you know, we have a large commercial loan book of one month so far. So out of the gate, you know, we'll probably see that interest income come down a little bit as we, you know, we let our funding start to reprice.
Ron: Yeah, so you know I'm only going to go out one quarter on the NIM and we think NIM and Q3 would be pretty much in line with Q2.
Ronald Osberg: You know, I don't think at this point anyone really knows what the Fed is going to do. And when they do start to reduce rates, as you know, we have a large commercial loan book of one month so far. So, out of the gate, you know, we'll probably see, you know, that interesting come down a little bit as we let our funding start to reprice. So, you know, I think it could be a little choppy for a couple of quarters, depending on how many rate cuts come through and the timing of those. Overall, lower rates are beneficial to us.
Speaker Change: You know I don't think at this point anyone really knows what the Fed is going to do and when they do start to reduce rates.
Speaker Change: As you know, we have a large commercial loan
Speaker Change: book of one month so far.
Speaker Change: So, out of the gate, you know, we'll probably see, you know, that interest income come down a little bit as
Speaker Change: We, you know, as we let our, our funding start to reprice, so.
Ronald Stephen Ohsberg: So, you know, I think it could be a little choppy for a couple of quarters, depending on how many rate cuts come through and the timing of those. Overall, lower rates are beneficial to us. Most of our funding is short term. Most of that maturities funding is short term, and we have a lot of money markets that can be repriced down as well. So we are not giving any fourth quarter guidance yet, but we think Q3 will be in line with Q2.
Speaker Change: You know, I think it could be a little choppy for a couple of quarters, depending on how many rate cuts come through and the timing of those. Overall, lower rates are beneficial to us. Most of our funding is short-term.
Ronald Osberg: Most of our funding is short term, most that maturity funding is short term, and we have a lot of money markets that can be reprice down as well. So not giving any fourth quarter guidance yet, but we think Q3 will be aligned with Q2. Okay, great.
Speaker Change: Most of that maturity funding is short-term and we have a lot of money markets that can be repriced down as well. So not giving any fourth quarter guidance yet, but we think Q3 will be in line with Q2.
Ronald Stephen Ohsberg: And then lastly, and I know you build capital a little bit this quarter, but what are your thoughts on sort of the current capital position? Would you contemplate raising some capital, you know, given the more challenging environment? Do you have a target for the CET-1 or, you know, some other capital ratio?
Mark Fitzgibbon: And then lastly, and I know you build capital a little bit this quarter, but what are your thoughts on sort of the current capital position?
Speaker Change: Okay, great. And then lastly, and I know you build capital a little bit this quarter, but
Ronald Osberg: Would you contemplate raising some capital, you know, given the more challenging environment? Do you have a target for the CET1 or, you know, some other capital ratio? Yeah, I mean, we're, if you look back, you know, we've had sequential improvements on our regulatory capital ratios now for three or four quarters. We've slowed down the asset growth, as Ned mentioned. And we're going to continue on that trajectory, expecting to improve capital on a link quarter base. is from this point forward.
Speaker Change: What are your thoughts on sort of the current capital position? Would you contemplate raising some capital, you know, given the more challenging environment? Do you have a target for the CET1 or, you know, some other capital ratio?
Ronald Stephen Ohsberg: Yeah, I mean, if you look back, you know, we've had sequential improvements in our regulatory capital ratios now for three or four quarters. We've slowed down the asset growth, as Ned mentioned. We're going to continue on that trajectory, expecting to improve capital on a quarterly basis. I would personally like to see us get our total risk-based capital up to about 12%. It's going to take a little bit of time to get there. Thank you. Mark, you asked about expenses, so... We're expecting Q3 to be about $35 million. Mortgage commissions will be a little higher, and advertising will be a little higher. www.bancorp.com
Ronald Stephen Ohsberg: Yeah, I mean, we're
Speaker Change: Yeah, I mean, if you look back, you know, we've had sequential improvements in our regulatory capital ratios now for three or four quarters.
Speaker Change: We've slowed down the asset growth, as Ned mentioned. We're going to continue on that trajectory, expecting to improve capital on a one-quarter basis.
Ronald Osberg: Yeah, we'd like to see. I mean, I would personally like to see us get our total risk-based capital up to about 12%. You know, it's going to take a little bit of time to get there.
Speaker Change: I would personally like to see us get our total risk-based capital up to about 12%. It's going to take a little bit of time to get there.
Mark Fitzgibbon: Thank you.
Ronald Osberg: Mark, you asked about expenses, so we're expecting we'll be a little higher in the quarter, and then we expect expenses to come down a bit in the fourth quarter. Thank you.
Speaker Change: Thank you.
Speaker Change: Mark, you asked about expenses so
Mark Thomas Fitzgibbon: We're expecting Q3 to be about $35 million. Mortgage commissions will be a little higher, advertising will be a little higher in the quarter, and then we expect expenses to come down a bit in the fourth quarter.
Damon Delmonte: Our next question is from Damon DelMonte with KBW.
Unknown Executive: Our next question is from Damon DelMonte with KPW. Please go ahead; your line is open.
Mark Thomas Fitzgibbon: Thank you.
Damon Delmonte: Please go ahead; your line is open. Hey, good morning, everyone. Hope everybody's doing well, and thanks for taking my questions here.
Speaker Change: Our next question is from Damon DelMonte with KPW. Please go ahead, your line is open.
Damon Paul DelMonte: Hey, good morning everyone. I hope everybody's doing well and thanks for taking my questions here. Just to follow up on the expenses, you mentioned earlier that we saw this quarter with a realized gain on the sale of the operations center. Are you expecting any material cost savings related to that, and how does that figure into the outlook?
Speaker Change: Hey, good morning everyone. Hope everybody's doing well and thanks for taking my questions here. Just to follow up on the expenses
Ronald Osberg: Just to follow up on the expenses, you mentioned earlier that you went and we saw this quarter with the realized gain on the sale of the operation center.
Speaker Change: You mentioned earlier that you saw this quarter with the realized gain on the sale of the operation center. Are you expecting any material cost savings related to that and how does that figure into the outlook?
Ronald Osberg: Are you expecting any material cost savings related to that, and how does that figure into the outlook? Yeah, that's already incorporated, and I'm thinking off the top of my head. I think it's about to the 300,000 of expenses annually, but that's already baked in. Okay. Got it.
Ronald Stephen Ohsberg: Yeah, that's already incorporated, and now I'm thinking off the top of my head. I think it's about two to three hundred thousand dollars in expenses annually. But that's already baked in.
Speaker Change: Yeah, that's already incorporated and now I'm thinking off the top of my head. I think it's about two to three hundred thousand of expenses annually.
William K. Wray: Got it. Okay. And then, with regard to your outlook for credit, I mean, things continue to trend pretty favorably there, low charge-offs, and obviously the provision remains on the lower side given the slower loan growth. Are there any areas of the portfolio where you're seeing some signs of stress, particularly on the commercial real estate side?
Damon Delmonte: Okay. And then, with regards to your outlook for credit, I mean, things continue to trend pretty favorably there: low charge-offs, and obviously the provision remains on the lower side given the slower loan growth.
Speaker Change: But that's already baked in.
Speaker Change: Okay.
Speaker Change: Got it. Okay, and then
Speaker Change: Well, with regards to your outlook for credit, I mean, things continue to trend pretty favorably there. Low charge-offs and obviously the provision remains on the lower side given the slower loan growth. Are there any areas of the portfolio where you're seeing some signs of stress?
William Wray: Are there any areas of the portfolio where you're seeing some signs of stress, particularly in the commercial real estate side?
William Wray: Yeah, Bill, you want to say, "sure." I think the one everyone pays attention to is Office. We pay attention to office a lot. We essentially, in the next couple of years, have about a dozen maturities, each of which we know we don't even think of them as on a portfolio basis, but we're not seeing any trends anywhere else in the portfolio. And even with an office, we're kind of handling them one at a time. And, you know, a couple of them are going to limp their way forward, but we think we understand the issues. We understand the assets and the borrowers, and we don't see any particular adverse trends that are already reflected in our accounting.
Ronald Stephen Ohsberg: Yeah, Bill, you want to say sure? I think the one everyone pays attention to is the office. We pay attention to the office a lot. We essentially, in the next couple of years, have about a dozen maturities, each of which we know we don't even think of them as on a portfolio basis. But we're not seeing any trends anywhere else in the portfolio, and even within the office, we're kind of handling them one at a time.
Speaker Change: Particularly in the commercial real estate side.
Speaker Change: Yeah, Bill, you want to, you want to say? Sure.
William K. Wray: I think the one everyone pays attention to is office. We pay attention to office a lot. We essentially, in the next couple years, have about a dozen maturities.
William K. Wray: Each of which we know, we don't even think of them as on a portfolio basis, but we're not seeing any Trends anywhere else in the portfolio and even with an office. We're kind of handling them one at a time
Ronald Stephen Ohsberg: And, you know, a couple of them are going to limp their way forward. But we think we understand the issues. We understand the assets and the borrowers, and we don't see any particular adverse trends that aren't already reflected in our accounting.
William K. Wray: And, you know, a couple of them are going to limp their way forward, but we think we understand the issues, we understand the assets and the borrowers, and we don't see any particular adverse trends that aren't already reflected in our accounting.
Damon Delmonte: Got it. Okay. That's helpful.
Ronald Stephen Ohsberg: I think, Ron, you alluded to a little bit higher comp related to mortgage banking here in the third quarter. I guess, how are you thinking about overall fee income in the back half of the year? Do you feel that the impact from the lost AUM and the wealth management has kind of been reflected in the fees, or should we expect some bit of a decline there?
Damon Delmonte: Thank you.
Damon Delmonte: And then I'm seeing income, I guess. I think Ron, you alluded to a little bit higher, related to mortgage banking here in the third quarter.
William K. Wray: Got it, okay.
Speaker Change: That's helpful. Thank you. And then, just on fee income, I guess, I think...
Ron: Ron, you alluded to a little bit higher related to mortgage banking here in the third quarter. I guess, how are you thinking about overall fee income in the back half of the year? Do you feel, has the impact from the lost AUM and the wealth management kind of been reflected in the fees?
Ronald Osberg: I guess, how are you thinking about overall fee income in the back after the year? Do you feel that has the impact from the lost AUM and the wealth management kind of been reflected in the fees, or do we expect some bit of a decline there? Yeah. You know, our wealth income largely depends on markets. You know, I, you know, out of the data, I would expect you three, oh, it's somewhat similar to Q2 in terms of wealth revenue. We expect mortgage to be up maybe five, more revenue may up maybe five to 10 percent just on higher volume in the third quarter.
Ron: or should we expect some some bit of a decline there?
Ronald Stephen Ohsberg: Yeah, um, you know, our wealth income largely depends on the markets. You know, out of the gate, I would expect Q3 to look somewhat similar to Q2 in terms of wealth revenue. We expect mortgage revenue to be up maybe 5% to 10% just on higher volume in the third quarter.
Speaker Change: Yeah, our wealth income largely depends on markets.
Speaker Change: You know, I, you know, out of the gate, I would expect Q3 to look somewhat similar to Q2 in terms of wealth revenue. We expect mortgage to be up maybe five, mortgage revenue to be up maybe five to ten percent, just on higher volume in the third quarter.
Mary E. Noons: And we did, Damon, this is Mary. We did implement a fee increase that should start to be reflected in the numbers for the third and fourth quarter on the wealth side.
Mary Noons: and we did, Damon, this is Mary. We did implement a fee increase that should start to be reflecting in the numbers for third and fourth quarter. On the well side. On the well side, got it. Okay, yeah.
Speaker Change: And we did, Damon this is Mary, we did implement a fee increase.
Mary E. Noons: That should start to be reflecting in the numbers for 3rd and 4th quarter. On the wealth side.
Damon Paul DelMonte: on the wealth side. Got it. Okay. Yeah. Well, great. That's all that I had.
Damon Delmonte: Oh great, that's all that that's all that I had. Thank you very much.
Damon: On the well side, got it. Okay, well great, that's all that I had. Thank you very much.
Unknown Executive: Thanks, Damon.
Laura Hunsicker: And our next question today comes from Laurie Hunsicker with Seaport Research. Your line is open.
Unknown Executive: And our next question today comes from Laurie Hunsicker with Seaport Research. Your line is open. Hi, good morning. I'm hoping we can just go back to wealth management. The two advisors that departed, how much did they actually manage?
Speaker Change: Thanks, Damon.
Speaker Change: And our next question today comes from Laurie Hunsicker with Seaport Research. Your line is open.
Laura Hunsicker: Yeah, hi, good morning. I'm hoping we can just go back to the well management. The two advisors that departed, how much did they actually manage? Well, I manage as a team, so there are sizes as part of a trust-offs firm portfolio manager and associate team. I don't have the numbers relevant to their portfolios, but I will say that the runoff has been minimal, and it's because of that approach. It's not; it's very unlike the departures that had happened in our Wellesley area. So we're confident that that's not going to be a big contributor on any runoff.
Laura Katherine Havener Hunsicker: Hi, good morning. I'm hoping we can just go back to wealth management. The two advisors that departed, how much did they actually manage?
Laura Katherine Havener Hunsicker: I manage as a team, so there are advisors as part of a trust officer, portfolio manager, and associate team. I don't have the numbers relevant to their portfolios, but I will say that the runoff has been minimal, and it's because of that approach. It's very unlike the departures that happened in our Wellesley area. We're confident that that's not going to be a big contributor.
Speaker Change: Well, I manage as a team. So there are advisors as part of a trust officer and portfolio manager and associate team. I don't have the numbers.
Speaker Change: relevant to their portfolios. But I will say that the runoff has been minimal. And it's because of that approach, it's not, it's very unlike the departures that had happened in our Wellesley area. So
Speaker Change: We're confident that that's not going to be a big contributor on any runoff.
Mary Noons: Got it.
Mary E. Noons: And Laurie, we've actually... met Mary and talked about the two departures and the one unexpected death. We have actually added two investment advisors in the course of the first two quarters as well.
Mary Noons: And Laurie, Mary talked about the two departures and the one unexpected death. We have actually added two investment advisors in the course of the first two quarters as well, so we're kind of net down one. And then just Mary, just a frame, the 163 million of client outflows and QQ, how much was related to those two advisors? I mean, I know you said minimal, but it was just one and a larger quarter to see if I'm just trying to understand that. Yeah, so Laurie, that number's really net of three things, right? And we don't usually get into this level of detail, but you know, you get new business, you got lost business, and you've got routine flows where clients are living their lives and spending their money.
Speaker Change: Got it. And then, Laurie, we've actually...
Mary E. Noons: Mary talked about the two departures and the one unexpected death. We have actually added two investment advisors in the course of the first two quarters as well, so we're kind of net down one.
Mary E. Noons: So we're kind of net net down one. Gotcha. And then Mary, just to frame it, the $163 million of client outflows in 2Q, how much was related to those two advisors? I mean, I know you said minimal, but it was just one of the larger quarters we've seen, so I'm just trying to understand that. Yeah, so yeah, so Laurie, that number is really net of three things, right? And we don't usually get into this level of detail.
Speaker Change: And then just Mary, just to frame it, the $163 million of client outflows in 2Q, how much was related to those two advisors?
Speaker Change: I know you said minimal, but it was just one of the larger quarters we've seen, so I'm just trying to understand that. Yeah, so Laurie, that number is really a net of three things, right? And we don't usually get into this level of detail, but you know, you get new business, you get lost business.
Mary E. Noons: But, you know, you get new business, you get lost business, and you've got routine flows where clients are living their lives and spending their money. So in the second quarter, I will just say that that new business and lost business was a net zero. Okay, okay, so none of those. Yeah, everything's kind of ordinary.
Speaker Change: and you've got routine flows where clients are living their lives and spending their money. So, in the second quarter, I will just say that new business and lost business was a net zero.
Mary Noons: So, in the second quarter, I will just say that that new business in lost business was a net zero.
Mary Noons: Okay. Yeah, everything was kind of ordinary.
Laura Katherine Havener Hunsicker: Okay, that's helpful. So none of those, yeah, everything's kind of ordinary.
Mary Noons: That's it.
Laura Katherine Havener Hunsicker: And then just going back to non-interest income, kind of along the lines of Damon's question, but maybe just thinking more top-level, because I know obviously, June has the tax prep in it for stripping out, you know, some of the noise, the sale of facilities, etc. How do you think about where that overall number is looking like for 3Q, netting everything out? Is $15.5 million a good number, or how should we be thinking about that?
Laura Hunsicker: Okay. And then just going back to non-interesting, kind of along the lines of, you know, Damon's question, but maybe just thinking more top level, because I know obviously the June has attacked us in it. You know, we're stripping out, you know, some of the noise, the failup facilities, etc. How do you think about where that overall number is looking like for three Q? Netting everything out is 15 and a half million, a good number, or how should we be thinking about that? For total non-interesting come? For total non-interesting come, yeah. Yeah, like I said, I think we'll track in Q3 close to Q2, and we expect mortgage to be up about 5 to 10 percent.
Speaker Change: And then just going back to non-interest income, kind of along the lines of, you know, Damon's question, but maybe just thinking more top level, because I know, obviously, the June has the tax prep in it, you know, for stripping out, you know, some of the noise, the sale of facilities, etc.
Speaker Change: How do you think about where that overall number is looking like for 3Q, netting everything out? Is $15.5 million a good number, or how should we be thinking about that?
Laura Katherine Havener Hunsicker: for total non-interest income
Ronald Stephen Ohsberg: That's the total non-interest income, yeah.
Speaker Change: for total non-interest income.
Ronald Stephen Ohsberg: Yeah, like I said, we'll track in Q3 close to Q2, and we expect mortgages to be up about 5 to 10%. We're not doing much of anything on the swap side because we're not originating those types of loans right now.
Speaker Change: That's total non-interest income, yeah.
Walt: Yeah, like I said, I think Walt will track
Speaker Change: In Q3 close to Q2 and we expect mortgage to be up about 5 to 10 percent
Ronald Osberg: Okay. We're not doing much of anything on, we're not doing much of anything on the swap side, because we're not, we're not, um, originating those types of forms right now.
Speaker Change: We're not doing much of anything on the swap side because we're not originating those types of loans right now.
Ronald Osberg: So got it.
Laura Katherine Havener Hunsicker: Got it. Okay, so that'll be close to this level. Okay, got it. That's super helpful.
Ronald Osberg: Okay. So that'll be close to this level.
Ronald Osberg: Okay.
Laura Hunsicker: Got it.
Ronald Osberg: That's super helpful. And then, in terms of sale of other facilities, can you help us think about that a little bit? What else is there potentially in the cell? Are you expecting more gains as we look toward the back after this year?
Speaker Change: Got it. Okay, so that'll be close to this level. Okay, got it. That's super helpful. And then in terms of sale of other facilities, can you help us think about that a little bit?
Laura Katherine Havener Hunsicker: And then, in terms of the sale of other facilities, can you help us think about that a little bit? What else is there potentially to sell? Are you expecting more gains as we look toward the back half of this year?
Speaker Change: What else is there potentially to sell? Are you expecting more gains as we look toward the back half of this year?
Ronald Osberg: Yeah. No, I mean, we are we have considered from time to time. Doing some sale these back. So, so we could implement that. We have no specific plan to do that at the moment, but that could generate some gains for us at some point. There are no other kind of excess facilities that we have right now that we're intending to dispose of.
Ronald Stephen Ohsberg: Yeah, no, I mean, we're
Ronald Stephen Ohsberg: We have considered from time to time doing some sale-lease backs, so we could implement that. We have no specific plan to do that at the moment, but that could generate some gains for us at some point. There are no other kinds of excess facilities that we have right now that we're intending to dispose of.
Speaker Change: Yeah, no, I mean, we're
Speaker Change: We have considered from time to time doing some sale lease back so so we could implement that. We have no specific plan to do that at the moment but that could generate some gains for us at some point. There are no other kind of excess facilities that we have right now that we're intending to dispose of.
Ronald Osberg: Got it.
Laura Katherine Havener Hunsicker: Okay, and then just last question on office. Can you, and I realize you may not be able to provide all this detail, and I certainly appreciate all the color that you put in the release, but the 18.4 million that currently is on non-accrual class C. Can you just give us a refresh on that? vacant, you know, any movement, what you're thinking about there.
Laura Hunsicker: Okay.
William Wray: And then just last question on office. Can you and I realize you may not be able to provide all this detail. And I certainly appreciate all the color that you put in the release. But the 18.4 million that currently is on not a cool policy. Can you just give us a refresh on that? They can see any movement. What you're thinking about there? Sure. I'll take that, Laurie. This is Bill. That's two properties. One of which is 50% vacant. The other, which is only tentative with street front retail right now. The latter property there looks like there's some resolution potential.
Speaker Change: Got it. Got it. Okay. And then, just last question on Office. Can you, and I realize you may not be able to provide all this detail, and I certainly appreciate all the color that you put in the release, but the $18.4 million that currently is on non-accrual Class C.
Speaker Change: Can you just give us a refresh on that in terms of vacancy and...
Speaker Change: you know, any movement, what you're thinking about there.
William K. Wray: Sure, I'll take that, Laurie. This is Bill.
Speaker Change: Sure, I'll take that Laurie, this is Bill. That's two properties, one of which is 50% vacant, the other which is only tenanted with street front retail right now.
William K. Wray: That's two properties, one of which is 50% vacant, the other which is only tenanted with street-front retail right now. The latter property, there looks like there's resolution potential, but again, we never want to count it until it's over. So there's some movement on that. We feel good about both properties, not the fact that they're not accruing, but that they're stable to improving. That's where they stand.
Speaker Change: The ladder property, there looks like there's some resolution potential, but again, we never want to count it until it's over. So there's some movement on that. We feel
William Wray: But again, we never want to count it till it's over. So there's some movement on that we feel good about both properties. Not the fact that they're not a cruel, but that they're stable to improving.
Speaker Change: Good about both properties, not the fact that they're not accrual, but that they're stable to improving, so that's where they stand.
William Wray: So that's where they stand.
William Wray: Okay. And those are those are both the office buildings are located suburban Connecticut. Is that correct?
Laura Katherine Havener Hunsicker: Okay, and those are those are both office buildings located in suburban Connecticut. Is that correct?
Speaker Change: Okay, and those are those are both the office buildings are located suburban Connecticut. Is that correct?
William K. Wray: No, one is suburban Connecticut and the other is Boston, Boston Metro. And I do want to point out they're all, we have no delinquencies, so even these properties that are on non-accrual continue to perform. So they're performing non-performers, to use the old phrase, yeah.
William Wray: No. One is suburban Connecticut. And the other is Boston, Boston metro. And I do want to point out they're all we have no delinquencies. So even these properties that are on not a cruel continue to perform. So they're performing non performers to use the old phrase. Yeah.
Speaker Change: No, one is suburban Connecticut and the other is Boston, Boston Metro. And I do want to point out they're all, we have no delinquencies, so even these properties that are on non-accrual continue to perform.
Speaker Change: so they're performing non-performers to use the old old phrase yep
William Wray: Got it.
Laura Katherine Havener Hunsicker: Got it. Got it. Okay. And then I know 32% of your book is coming during the next two years, but how does that look if we look at the next sort of one, two, three quarters? Where are we with maturity around that?
William Wray: Okay. And then 32% of your book is coming to you in the next two years. But how does that look if we look the next sort of one, two, three quarters? Where are we with maturity around that? Actually, that's they're mostly the properties we just talked about, the couple of non-accruals. So there's not much in the next couple of quarters, and it's those. But let me talk about maturities for me. Frankly, we view office properties as essentially a life sentence. There's no magic exit market out there. So we look at each one of them, assuming we're going to be with it to maturity and beyond.
Speaker Change: Got it. Got it. Okay. And then...
Speaker Change: I know 32% of your book is coming due in the next two years, but how does that look if we look the next sort of one, two, three quarters? Where are we with maturity around that?
William K. Wray: Actually, that's mostly the properties we just talked about, the couple of non-accruals. So there's not much in the next couple quarters, and it's those. But let me talk about maturities for a minute. Frankly, we view office properties as essentially a life sentence. There's no magic exit market out there. So we look at each one of them Assuming we're going to be with them to maturity and beyond, and so that's kind of how we manage the credit and work with the sponsor. If rates go down, and there appears to be a refinance market out there at some point, That would be great. But our assumption is we have
Speaker Change: Actually, that's...
Speaker Change: They're mostly the properties we just talked about, the couple of non-accruals.
Speaker Change: So, there's not much in the next couple quarters and it's those...
Speaker Change: But let me talk about maturities for a minute. Frankly, we view office properties as essentially a life sentence. There's no magic exit market out there. So we look at each one of them, assuming we're going to be with it.
William Wray: And so that's kind of how we manage the credit and work with the sponsor. If rates go down and there appears to be a refinance market out there at some point, that would be great. But our assumption is we have to stay the course with the sponsors on these.
Speaker Change: to maturity and beyond and so that's kind of how we manage the credit and work with the sponsor. If rates go down and there appears to be a refinance market out there at some point that would be great but our assumption is we have to stay the course with the sponsors on these.
William Wray: Got it.
Laura Katherine Havener Hunsicker: Got it. Okay, got it. That's helpful. Thank you very much.
William Wray: Okay.
William Wray: Got it.
William Wray: That's my book.
Unknown Executive: Thank you very much.
Speaker Change: Got it, okay, got it. That's helpful, thank you very much.
Unknown Executive: Thanks, Lauren.
Unknown Executive: Thank you.
Unknown Executive: Thank you. We have no further questions in the queue, so I'll turn the call back over to Ned Handy for any closing comments.
Lori: Thanks, Laurie.
Unknown Executive: We have no further questions in the queue, so I'll turn the call back over to Ned Hamley for any closing comments. Well, thank you all for joining us today. We certainly appreciate your time and your interest in Washington Trust, and we look forward to speaking to you all again soon. Have a great day, everybody.
Speaker Change: Thank you. We have no further questions in the queue, so I'll turn the call back over to Ned Handy for any closing comments.
Edward Otis Handy: Thank you all for joining us today. We certainly appreciate your time and your interest in Washington Trust, and we look forward to speaking to you all again soon. Have a great day, everybody.
Edward Otis Handy: Well thank you all for joining us today. We certainly appreciate your time and your interest in Washington Trust and we look forward to speaking to you all again soon. So have a great day everybody.
Unknown Executive: This concludes today's call. Thank you for joining us. You may now disconnect your line.
Operator: Distinguished, today's call; thank you for joining. You may now disconnect your line.
Speaker Change: This concludes today's call. Thank you for joining. You may now disconnect your line.