Q4 2024 First Bank Earnings Call
The following discussion may contain forward looking statements concerning the financial condition results of operations and business of first bank. We caution that such statements are subject to a number of uncertainties and actual results could differ materially and therefore, you should not place undue reliance on any forward looking statements we make.
We may not update any forward looking statements, we make today for future events or developments information about risks and uncertainties are described under item one a risk factors in our annual report on Form 10-K for the year ended December 31, 2023 filed with the FDIC.
Back to you.
Andrew: Thank you Andrew.
Speaker Change: I'd like to start my comments with a look back on the full year I think I think the fourth quarter was very good finish to what turned out to be an excellent year.
Speaker Change: I think by focusing on the 90 day window of time.
Speaker Change: Annualized those results, we sometimes get a little too focused on the short term and so I think I look back on the full year's worthwhile.
Speaker Change: 'twenty 'twenty four we earned $42 $2 million or $1.67 per diluted share that's a 13% annualized increase in core EPS over the past 10 years.
Speaker Change: Tangible book value is more than doubled over the same time period, which is a seven 5% annualized growth rate and it shows the model is working.
Speaker Change: Well, there always seems to be one time nonrecurring items that impact earnings in a given year and 2020 for the one time gains were basically offset by one time expenses.
Speaker Change: Reported GAAP net income was pretty close to a core number.
Speaker Change: Roy a for the year was 1.15% and return on average tangible common equity was 12, 5% strong results in both areas given the continued challenging interest rate environment.
Speaker Change: Furthermore, the strong results came at the same time, the bank was investing and working to add and scale up new lines of business.
Speaker Change: As we get to a level of profitability and operating efficiency in those areas, we should see our financial performance continued to improve.
Speaker Change: Collectively our newer businesses, our private equity sponsor banking business, our asset based lending business and our small business loan portfolio as all are all up over $250 million. Since we started those ventures. We expect each of these developing units continue to scale with minimal additional.
Speaker Change: Expenses driving bottom line improvement.
Speaker Change: On the C&I expansion initiatives, our banking as a service banking unit is ready to commence.
Speaker Change: Our first Fintech partnership in the first quarter and we expect to be active during the first half of 2025, while we are taking a crawl walk run approach in this area, we see plenty of opportunity to increase fee income and low cost deposits.
Speaker Change: So what does all this mean it means first bank is a unique and compelling franchise that has both a proven and profitable community bank.
Speaker Change: This core as well as optionality on future growth and development into a true middle market commercial bank.
Speaker Change: Not only does the future look bright, but we don't need outside capital or balance sheet restructurings to achieve our goals are mark to market loss position as modest thanks to prudent balance sheet manage management and a short duration loan portfolio. Our credit profile is clean thanks to conservative underwriting and strong credit standards.
Speaker Change: Strong earnings power and modest dividend payout ratio provides flexibility for stock buybacks <unk> special dividends.
Speaker Change: In summary.
Speaker Change: Very excited about the upside potential of the franchise as we move into 2025.
Speaker Change: Before turning things over to the team to get into more specifics on the fourth quarter. There are a few additional areas I'd like to highlight.
Speaker Change: During the year, our ratio of Investor commercial real estate to total loans came down from 55, 6% at the start of the year to 53, 2% at the end of the year or two.
Speaker Change: Two four percentage point reduction, which is not insignificant given the size of our balance sheet.
Speaker Change: Our allowance for credit losses in our credit marks to total loans ended the year at 1.43%.
Speaker Change: Our allowance for credit loss to total loans.
Speaker Change: Stands at 323% coverage ratio for our nonperforming loans.
Speaker Change: This is the highest coverage ratio and our local peer Bank survey approx.
Speaker Change: Approximately 40% of the bank's business comes from outside of New Jersey, and our net interest margin grew six basis points in the fourth quarter and we could see further expansion if the yield curve continues to steepen.
Speaker Change: At this point I'd like to turn it over to Andrew Hibshman to discuss the fourth quarter results in more detail Andrew.
Speaker Change: Yeah.
Andrew Hibshman: Thanks, Pat for the three months ended December 31, 2024, we recorded net income of $10 5 million or <unk> 41 per diluted share and a 110% return on average assets. These measures improved significantly from prior periods with our return on average assets improving from 0.88% in the third.
Andrew Hibshman: Quarter of 2024, and zero point, 93% for the fourth quarter of 2023, we had another strong quarter for growth in our loan portfolio loans were up over 7% annualized from the third quarter. We saw a nice some nice pickup in activity in the back half of 2024 after a slower first half on a year over.
Year basis loans grew $123 million or 4% and I'd remind you that that reflects organic growth and the offsetting loan sale totaling approximately $24 million that occurred in the second quarter of 2024 as part of our balance sheet optimization efforts.
Andrew Hibshman: Annual loan growth was driven by commercial and industrial and owner occupied commercial real estate loans. This growth was offset somewhat by a small decline in our investor real estate loans during the year, which includes our CRE investor construction and development and multifamily loans, we recorded at $234000 credit loss expense during the.
Andrew Hibshman: Quarter, despite strong loan growth our credit expense was muted due to net recoveries during the fourth quarter and low levels of problem loans.
Andrew Hibshman: On the deposit side balances showed a modest $5 8 million increase during the quarter as we continue to focus on profitable relationships and allowed some higher cost non core relationship funds to leave the bank during the fourth quarter.
Andrew Hibshman: Net interest income increased $1 5 million compared to the third quarter, primarily related to the benefit of higher average loan volume, which reflects growth during the fourth quarter as well as the late quarter growth from the third quarter. Our net interest income was also supported by margin expansion, which was due to lower average rates on.
Andrew Hibshman: Deposits and borrowings, which outpaced the reduction in average rates on earning assets.
Andrew Hibshman: Our net interest margin increased to 354% in the fourth quarter compared to $3 four 8% in the prior quarter interest bearing deposit cost declined falling 20 basis points from Q3, we're pleased with our success in moving rates lower on a significant portion of our deposit base, while still retaining balances.
Andrew Hibshman: All other cost declines outpaced the decline in average loan yields which fell by 11 basis points. The decline was primarily due to the fed rate cuts impact on our variable rate loans. The margin is also impacted by acquisition accounting accretion, which totaled $3 1 million in Q4 of 2024 compared to $3 4 million.
Andrew Hibshman: In the third quarter of 2024 looking.
Andrew Hibshman: Looking ahead, we continue to manage a well balanced asset liability position, which should result in continued strong net interest income generation with little variability regardless of the fed's actions on rates, we're happy to see the yield curve has improved in a more friendly yield curve should lead to some further expansion of our margin.
Andrew Hibshman: Asset quality continues to be strong NPA to total assets declined to 0.46% compared to 0.47% at September 32024, and 0.69% at the end of 2023, our allowance for credit losses to loans declined just slightly to $1 two zero percent at <unk>.
December 31 compared to September 30th.
Andrew Hibshman: Noninterest income totaled $2 2 million in Q4 of 2024 compared to $2 5 million in Q3 of 2024.
Andrew Hibshman: We expect as market conditions improve we will be able to realize additional income from gains on sale of SBA and mortgage loans. However, we do not expect a significant increase in noninterest income as we begin 2025.
Andrew Hibshman: Noninterest expenses were $19 1 million in the fourth quarter compared to $18 6 million in Q3 2024.
Andrew Hibshman: Increase primarily reflects an increase in salaries and benefits expense, primarily due to a larger employee base.
Andrew Hibshman: Also occupancy and equipment expenses were elevated primarily due to branch opening and relocation activity that happened. During Q4. We were also investing in technology and our sales culture, which you see bumping up professional fees and other expense. We continue to prioritize expense manage at MIT and expect that the core expense base to increase.
Andrew Hibshman: Slightly over the next several quarters as I mentioned earlier, our tax rate was affected by the bully restructuring completed in the third and fourth quarters, we anticipate that our effective tax rate going forward will be in the range of 25% to 26% increase compared to the more recent 23% to 24% run rate is primarily due to the ongoing <unk>.
Andrew Hibshman: Pact of the two 5% New Jersey corporate transit fee, which was added in June of 2024.
Andrew Hibshman: We are pleased with the very positive performance and momentum this quarter, our efficiency ratio remained strong improving slightly to 57% and remained below 60% for the 20 <unk> consecutive quarter. We also expanded our tangible book value per share by 10% annualized from Q3 2024.
Andrew Hibshman: Finally, we're happy to drive shareholder value through our successful initiation of our buyback program during the quarter, along with a stable cash dividend.
We believe our strong financial results in 2024, coupled with our investments for growth position us to perform well in 2025 and beyond at this time I'll turn it over to Darlene Gillespie, our chief retail banking officer for her remarks Darling go ahead.
Thanks, Andrew and good morning, everyone.
Andrew Hibshman: Andrew had mentioned deposit levels were stable during the fourth quarter of this year.
Andrew Hibshman: Slowing a robust third quarter, we attribute our ability to grow and retain our core deposit funding to our team's outstanding ability to build and maintain deep customer relationships.
Andrew Hibshman: Also the favorable outcome of our proactive efforts to manage deposit pricing.
Andrew Hibshman: Anticipation of the fed beginning its rate reductions in September.
Andrew Hibshman: The additional 50 basis points of cuts we saw in November and December.
Andrew Hibshman: Aided our efforts to be more aggressive with managing our costs down.
Andrew Hibshman: Our total deposits were up a modest $5 8 million from the third quarter of 2024, and then grew $88 3 million or 3% from the end of 2023.
Andrew Hibshman: This growth was driven by our success in attracting new deposit relationships and maintaining existing balances.
Andrew Hibshman: Heightened rate environment with great pricing competition.
Andrew Hibshman: Our customers are sticking with us and that is a testament to our fantastic team.
Andrew Hibshman: During the quarter, we saw a run off related to fluctuations in some larger commercial customer balances.
Andrew Hibshman: This reflected business activity and these customers remain active the positives of our bank.
Andrew Hibshman: For this exact reason, we take a longer term view on deposit.
Andrew Hibshman: Average balances and looking at average balances gives us a good deal of that for example average interest bearing deposits increased over 11% annualized from the third to the fourth quarter of 2024.
Andrew Hibshman: We are pleased with the mix shift during the quarter noninterest bearing demand deposits remained stable while interest bearing demand continued to show outstanding growth in a very dynamic rate environment.
Andrew Hibshman: Deposits grew by $11 9 million, while money market and savings declined $37 6 million or 12% annualized from the third quarter.
Andrew Hibshman: Majority of the growth we experienced was in our commercial portfolio.
Andrew Hibshman: Ken is a testament to our blended sales teams onboarding new clients.
Andrew Hibshman: Benzene existing relationships.
Andrew Hibshman: Given the ongoing interest in high yielding products as previously mentioned, we were happy to see our overall deposit costs decreased meaningfully during the quarter and throughout 2024, and we continue to adjust our pricing and less costly of funds leave the bank we've talked about.
Andrew Hibshman: This on previous calls in which we started to make changes or eliminate promotional products and exception pricing.
Andrew Hibshman: In anticipation of the cuts.
Andrew Hibshman: We continue to effectively manage our funding costs to support lowering this metric.
Andrew Hibshman: Maintaining a stable net interest margin.
Andrew Hibshman: As I've mentioned in recent quarters. Our branch strategy is aimed at supporting engagement in our current markets and opportunistic expansion into adjacent markets.
Andrew Hibshman: In Q4, we completed the relocation of our Glen Mills, Pennsylvania location.
Andrew Hibshman: Media, Pennsylvania.
Andrew Hibshman: And just this week, we officially opened the doors to our de Novo branch in Trenton, New Jersey.
Andrew Hibshman: We also completed the consolidation of our two Fleming's in New Jersey locations and to one <unk>.
Andrew Hibshman: There is no change in the number of locations just an expanded and more convenient network for our customers and greater deposit and overall opportunities for first bank.
Andrew Hibshman: We're excited to continue pursuing further opportunities to optimize our franchise for growth.
Andrew Hibshman: Working closely with our marketing team has created some opportunities to enhance our brand awareness in 2025 and throughout our footprint as we look to launch some very targeted marketing.
Andrew Hibshman: And deposit campaigns.
Q1 and beyond.
Andrew Hibshman: So overall, we continue to focus on our existing and prospective customer relationships, which are our priority and we aim to attract and retain profitable relationships through excellent service.
Andrew Hibshman: Their pricing and with the distribution network and products that that offer elevated convenience and sophistication.
Andrew Hibshman: We are very confident that our continued focus in these areas will support deposit growth into 2025 and beyond.
Peter Cahill: At this time I will turn it over to Peter Cahill, our chief lending officer for his remarks tier.
Andrew Hibshman: Yeah.
Peter Cahill: Thanks Sterling.
Speaker Change: And as Andrew described a few minutes ago. After basically flat results for the first six months of 2024.
Speaker Change: Ending areas had another good quarter and a strong finish to the year.
Speaker Change: Loans grew $56 8 million in the quarter, an annualized growth rate of seven 3%. This is a good follow up to Q3, where we grew almost $90 million.
Speaker Change: Our plan to focus on more C&I lending, which is where most banks find deposits. Another relationship business continues to take shape.
Speaker Change: New C&I and owner occupied real estate loans in 2024 made up 64% of all new loans closed and funded.
Speaker Change: Investor Real estate loans by comparison made up only 29% of new loans booked and funded last year.
Speaker Change: In comparison two years ago in 2022, Investor Real estate loans totaled 55, I'm, sorry, it's 3% of new loans.
Speaker Change: We're certainly not turning away good loans, we expect to continue to have investor real estate.
Speaker Change: And part of what we do but it needs to bring with it deposits another relationship business.
Speaker Change: We had good contributions from a number of areas during the year and I'm pleased with the diversification we have among the lending units.
Speaker Change: Our regional commercial banking team in New Jersey led the way for us until the 'twenty four having a very good year in terms of C&I growth and contributing significantly to overall deposit growth.
Speaker Change: Pat mentioned that our newer business units private equity fund banking asset based lending and small business banking, which includes SBA are all developing their businesses and showed a very solid results in 2025.
At our Investor Real estate area increased management has resulted in a decline in the ratio of Investor real estate loans to total loans from 55, 6% at 12 31 23 to <unk> 53, 2% at 12, 31, 25 as well as a decline in the ratio.
Speaker Change: Real estate loans, the total capital from 418% to 397%.
Speaker Change: The schedules in the earnings release breakdown.
Speaker Change: One portfolio into their various segments and show the changes from quarter to quarter when compared to a year ago. One can see both the growth in C&I loans as well as the decrease in investor real estate loans.
Speaker Change: I'll comment now on our loan pipeline our pipeline at the end of the fourth quarter stood at $245 million.
Speaker Change: Of probable fundings down 11% from the level at September 30th.
Speaker Change: It wasn't unexpected.
Speaker Change: After a good another good quarter of loan closings when loans close that come off the pipeline.
Speaker Change: We need to close a lot of loans to offset payoffs and normal term loan amortization in Q4. For example, we closed and funded new loans totaling $129 million.
Speaker Change: End up with the $56 8 million in loan growth for that period.
Speaker Change: If one breaks down the components of the pipeline at quarter end, C&I and owner occupied loans made up 66% of the overall pipeline.
Speaker Change: Regarding asset quality, the earnings release, and patent Andrew's comments summarized it as well.
Speaker Change: Portfolio continues to look good nonperforming loans at the end of the year were less than half of what they were a year ago, and we had net recoveries of bad debt in Q4.
Speaker Change: Also importantly, delinquent loans of 12 31 were again very very small.
Speaker Change: The supplement to the earnings release provide some detail around the loan portfolio loan concentrations demographics et cetera, They really don't change much from quarter to quarter.
Speaker Change: Obviously, they can shift over time, we continue to have very modest exposure in office and hotel segments and while we have continues to perform very well.
Speaker Change: In summary, we are proud of the culture, we've created around asset quality were good quality relationships take precedence over growth rates and returns and we believe we could have all three.
Speaker Change: Looking at how all of this might impact the quarter in the coming year, our level of projected loan funding for the first quarter of 2025 is solid and in line with historic quarterly growth projections.
Speaker Change: Where can we continue to see good activity in all lending areas.
Speaker Change: Looked at potential growth areas, whether business lines or new markets.
Speaker Change: At present, there's nothing major in terms of new business lines, we're looking at.
Speaker Change: Our lean Mensch Darby you mentioned I'm, sorry, we have some retail branch expansion plans.
Speaker Change: And lending through our regional presidents is very involved in that undertaking.
Speaker Change: We're spending time and resources to manage growth, we continue to tweak our credit administration area in order to service our lending businesses that we're in the middle of adding.
Speaker Change: <unk> Forest based customer relationship management tool that we think will really help manage new business efforts and create better coordination between our business units.
Speaker Change: And importantly, we were always on the look out and ready to add staff that we think can help us reach and exceed our goals as a result of all of this we anticipate achieved.
Speaker Change: Achieving growth loan growth rates of 2025 approximate the growth rate experienced this past quarter.
Pat: That concludes my remarks about lending so ill turn things back now to Pat for some final comments.
Pat: Yeah.
Pat: Thank you Peter and thanks, Andrew and Darlene. So at this point, we'd like to open it up for the Q&A portion of the call.
Pat: And now opening the floor for a question and answer session.
Pat: I'd like to ask a question. Please press star followed by one on your telephone keypad.
Pat: Star followed by one on your telephone keypad.
Speaker Change: Our first question comes from Justin Crowley from Piper Sandler Your line is now.
Pat: Hey, good morning, everyone.
Speaker Change: Yes.
Speaker Change: I wanted to start on the margin and get a sense for how youre thinking about.
Speaker Change: Cause cost progression over the course of the year I think last time, we spoke now maybe more flattish numbers alluded to given maybe one at a time or maybe some unknowns on the funding side and how that would play out.
Speaker Change: As we look back on the fourth quarter is it fair to say that you had a little bit more success in lowering rates and how would you as we sit here today I expect that to unfold in the event. We're only looking at one maybe two more rate cuts over the course of the next year.
Yes, it's a great question, Justin obviously, we wish we had perfect visibility into that I would say the biggest variable as we think about the margin moving forward is the shape of the yield curve.
We did see some steepening during the fourth quarter, which was certainly welcome and.
Speaker Change: I think if that continues throughout 'twenty five.
Speaker Change: For that.
Speaker Change: Steepening curve will help drive some margin expansion and we continue to have lower yielding loans that hit their.
Speaker Change: Maturity or reprice, which obviously helps.
Speaker Change: And.
Speaker Change: We're doing everything we can to make sure that.
Speaker Change: We're keeping our deposit costs low so I think.
Speaker Change: Flat to improving is probably the best guidance, we can give.
Speaker Change: A lot of it will be tied to not only the pace of rate cuts, but more importantly, what's.
Speaker Change: What's the relationship between the short and in the long end, so we'll be keeping a close eye on that but we're optimistic that some added steepening could be a benefit to us.
Okay got it I appreciate that and then just a quick follow up there Andrew.
Speaker Change: Andrew I'm not sure do you do you have what is expected in terms of the level of purchase accounting all.
Speaker Change: How that trends going forward.
Speaker Change: Yes, I think we've mentioned, it's going to continue to kind of trickle down from where to where it was it dropped a little bit more I think there is a little bit of elevated pay off on some of those loans in the fourth quarter. So a continued kind of trickle down of that number over the next about year and a half or so and then.
Speaker Change: As we've mentioned before after that kind of three year Mark.
Speaker Change: Like July of 2026 is when it really kind of drops more more significantly.
Speaker Change: Okay. That's helpful. And then just in terms of loan growth the strong year for the two areas you're focused on C&I and owner occupied Cree base.
Speaker Change: Based on the pipeline that Peter laid out maybe it sounds like maybe it sounds like it but are you expecting that to remain the case over the near or intermediate term as you look to continue lowering pre concentration.
Speaker Change: If I could jump over there we've got and we've.
Speaker Change: Been focus.
Speaker Change: Yes, sorry.
Focused on lowering creek concentrations for a while now rates, it's tough to do we have relationships, we want to maintain good relationships.
Speaker Change: We want to bring in new relationships with the ones that are truly relationship driven so it's kind of a slow process by design, but I think the pipeline will build from where it is not not decline overall.
Speaker Change: I just think it's a $2 45 at year end its down from.
Speaker Change: Couple of quarters of closing a lot of loans.
Speaker Change: So I'm bullish on where we're headed as far as a loan.
Speaker Change: On the volume as it hits the pipeline and then it gets funded.
Pat: Pat I don't know if you wanted to add anything or.
Pat: No I think Thats right I mean overall, we're seeing good activities in all of our segments and as we've mentioned before Justin we're not.
Pat: We're not believers that the commercial real estate lending game is a bad business. We think it's a very good business that being said there are reasons why in any good business you got to keep an eye on your concentration levels and I think we've taken the right steps to add quality C&I business to help.
Pat: Totally bring down the overall level of CRE, but certainly not.
Pat: And exiting of the business by any sense.
Pat: Okay got you and then maybe just one last one I was wondering we spend a little more time drilling down further into the banking as a service initiative I know you've taken a slow to start off but just.
Pat: One investment into that business in terms of talent and resources has entailed and then I'm not sure if you're able to give us any color on the types of Fintech partners may be targeting to start off yet so.
Pat: It's something we've been working on behind the scenes for a while.
Pat: A lot of.
Pat: Investment on the Tech side, the nice part about the tech investments as the things we needed to do to be a.
Pat: <unk> to pursue some fintech partnerships had added benefits for us outside of Das in terms of just added flexibility going forward and.
Pat: The opportunities to sort of decoupled from the core and really utilize best in class providers. So we're excited about those tech investments not just because of the bass capability, but just the overall improvement in the architecture and the flexibility.
Pat: But that was a big area of investment and then we've also.
Pat: Given all the press out there about banks that kind of rushed into bass and.
Pat: And jumped into the deep end quickly and then ended up on the wrong side of the regulatory view.
Pat: We've just been going slow engaging consultants working on risk assessments and policies and procedures and compliance.
Pat: AML and all of that so there's been some added investment.
Pat: Both in terms of bulking up our.
Pat: DSA group, but also engaging consultants to help us make sure we got all of our I's dotted and T's crossed before we went live so I think a lot of those investments have been made and now it's time to start generating some revenue in <unk>.
Pat: As I indicated in the comments, we're going to start slow with a couple of programs were focused on lower risk programs right out of the gate things that are more.
Pat: Finite in terms of duration as well as use of proceeds things like.
Pat: A pre funded card to pay for certain things is.
Pat: We view.
Pat: Kind of a lower risk way to to get started so.
Pat: We're excited to see some revenue deposits come enduring 25, we're going to watch it closely and.
Speaker Change: You guys have indicated this is not a make or break initiative for the bank.
Speaker Change: If we can find a way to do it profitably and successfully in managing the risk I think we will continue to invest and grow that segment.
Speaker Change: But we're going to see how it goes over the next 12 months to 18 months and then reevaluate in terms of future growth plans.
Speaker Change: Great I'll leave it there thanks, everyone.
Joseph: Thank you Joseph.
Speaker Change: Next question comes from David Bishop from Hovde Group. Your line is now open.
John: Hey, guys. This is John on for Dave This morning, Congrats on the quarter. Thanks.
Speaker Change: Thanks, Chad how are you.
John: Not too bad not too bad thank you.
Speaker Change: I was hoping to maybe just follow up quickly on Justin's question on the margin.
Speaker Change: Hoping you can maybe provide a little bit of specificity around year CD maturities throughout 2025, and then maybe also how youre thinking about managing the duration of those renewals from a rate perspective, just looking to see.
Speaker Change: Get a better sense of really how much of an opportunity you have to work pricing down on deposits throughout the year.
Speaker Change: Yeah. Good question, we obviously look at the CD maturity.
Speaker Change: Regularly we do have.
Speaker Change: Bucket coming due within the first quarter and it looks like.
Speaker Change: If the rate environment stays the way. It is today, we can probably get about a 50 basis point reduction in terms of the average cost of the portfolio that is renewing in and being conservative in assuming it kind of re prices that are higher rates at our highest rates today, we should see about 50 basis points, Andrew I don't remember the exact dollar amount.
Speaker Change: And I think it might have been 100 or $150 million in the next quarter here.
Speaker Change: Yes, I'm pulling up the data, but yes, that's about right I think it's even a little bit more than that I think it's about 130 $140 million of Cds that will reprice in the first quarter and then we have a pretty big chunk in the second quarter.
Speaker Change: We basically have no Cds that are longer term that in about 12 months, so everything's pretty much repricing within the next 12 months with a handful of Cds that are extended a little longer than that but I know, we have about $140 million maturing just in the first quarter alone and I think youre right Pat about the around that 50 <unk>.
Speaker Change: <unk> points.
Speaker Change: That's a wonderful color. Thank you.
Speaker Change: And maybe just one last quick one I know you were active on the repurchase this quarter can you just.
Speaker Change: Find me how many shares you have left on your current authorization.
Speaker Change: Yes.
Speaker Change: We had a plan approved for about 1 million shares and.
Speaker Change: Thank you.
Speaker Change: We may be.
Speaker Change: Little less than 100000, we bought during the quarter Andrew is that right correct, yes exactly right.
We purchased right up to about 100000 during the fourth quarter, which gives us about 900000 shares left in our currently approved plan.
Speaker Change: Great Great color. Thank you guys I'll leave it there and congrats on the quarter again alright.
Speaker Change: Alright, Thank you Jess.
Speaker Change: If you'd like to ask a question. Please press star followed by one on your telephone keypad, we will pause for a brief moment to wait for questions to come in.
Speaker Change: As of right now we don't have any pending questions I'd now like to hand, the call over to Patrick Ryan for final remarks.
Patrick Ryan: Okay. Thank you I think that will wrap the call. We appreciate everybody taking the time to join in and we'll look forward to getting back with everybody.
Speaker Change: After the end of the first quarter results. Thanks, everyone.
Speaker Change: Thank you. Thank you for attending today's call you may now disconnect have a wonderful day.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Yes.
Yes.