Q1 2025 TrustCo Bank Corp NY Earnings Call
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Robert McCormick: Our people are focused on building and maintaining strong customer relationships and offering top-tier products to permit effective management of the cost of funds. increases in deposits are especially good for us because we lend those funds right back out. Our lending is funded organically by deposits gathered through our own network, not borrowed funds or brokered CDs. Significantly, commercial lending is up 8%. with the total now topping $300 million. On the residential side, home equity products are leading the way. Total loans are up over $100 million from the first quarter of last year. Success in these areas have resulted in meaningful margin improvement of more than 8% year over year.
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Speaker Change: Today's presentation there'll be an opportunity whilst questions to ask a question you May press Star and then one skip Joe. Your question You Press Star then two.
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Speaker Change: For proceeding we would like to mention that this presentation may contain forward looking information about Trustco Bank Corp. New York that is intended to be covered by the safe Harbor for forward looking statements provided by the private Securities Litigation Reform Act 1995.
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Speaker Change: Actual results performance or achievements could differ materially from those expressed or implied by such statements due to various risks uncertainties and other factors.
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Speaker Change: Detailed information about these risks and other factors can be found in our press release that preceded this call and the risk and forward looking statements section of our annual report Form 10-K, and as updated by our quarterly reports Form 10-Q. The forward looking statements made in this call a valid only as of the date hereof and the company disclaims any obligations to update the information to reflect the.
Operator: Have a great day. And we'll... earnings call and webcast. All participants will be in a listen-only mode. Should you need assistance, please hit the conference specialist by pressing star key followed by zero.
Speaker Change: Good day, and welcome to Trustco Bank Corp earnings call and webcast.
Participants will be in a listen only mode.
Michael Ozimek: The interest margin now sits at 2.64%. All return metrics are up significantly with earnings per share, return on average assets, and return on average equity all up 27%, coming in at $0.75 per share, 0.93%, and 8.49% respectively. Consolidated equity to assets remains exemplary at 10.85%, up 3% year over year. Shareholders' equity is also strong, up 6% year over year.
Speaker Change: Distance piece, a little conference specialist by pressing Star key followed by zero on your telephone keypad.
Operator: presentation, there will be an opportunity to ask questions. If you have a question, you may press star and then one. To view your question, you may press star.
Speaker Change: Today's presentation, there will be an opportunity whilst questions. So I'll ask a question you May press Star and then one script Yoga question you Press Star and then two.
Speaker Change: Fence or developments after the date of this call except as may be required by applicable law during.
Operator: proceeding, we would like to mention that this presentation may Information about www.trustco.co.uk More detailed information about these risks and other factors can be found on our website at TrustCorp.com forward looking statements section of our annual report form 10-K and it's updated by our and Stevens Maidens Corp are valid only as of the date hereof. This claims any obligations up. Accept defence or developments after the date of this call except as may be required by a During today's call, we will discuss certain financial measures derived from our financial statements that are not determined in the financial statement.
Speaker Change: Before proceeding we would like to mentioned that this presentation may contain forward looking information about Trustco Bank Corp. New York that is intended to be covered by the safe Harbor for forward looking statements provided by the private Securities Litigation Reform Act 1995, actual results performance or achievements could differ materially from those expressed or implied by such statements.
Speaker Change: During today's call, we will discuss certain financial measures derived from our factual statements that are not determined in accordance with U S. GAAP reconciliations of such non-GAAP financial measures to the most comparable GAAP figures are included in our earnings press release, which is available under the Investor Relations tab on our website at Trustco Bank Dotcom.
Robert McCormick: This excellent capital position will support our authorized million share repurchase and allow us to operate from a position of strength and afforded flexibility in a dynamic environment. All of this success was accomplished while maintaining our exceptional asset quality. Non-performing loans, total loans remained flat at a negligible 0.37 percent and we realized a net recovery during the quarter. The results announced today illustrate the success that can be had through staying consistent with our mission. and meeting our customers where they are. Be that holding on to great mortgage rate they got two years ago, trying to anticipate where CD rates may go in the next year, or seeking enhanced digital experience.
Speaker Change: Also note todays event is being recorded a replay of the Coupe made available for 30 days and an audio webcast. We've made available for one year as described in our earnings press release at this time I'd like to turn the conference call over to Mr broke with J Mccormick Chairman President and CEO. Please go ahead.
Speaker Change: Various risks uncertainties and other factors.
Speaker Change: More detailed information about these risks and other factors can be found in our press release that preceded this call and the risks and forward looking statements section of our annual report Form 10-K, and as updated by our quarterly reports Form 10-Q.
Speaker Change: Forward looking statements made in this core valid only as of the date hereof and the company disclaims any obligations to update the information to reflect events or developments. After the date of this call except as may be required by applicable law.
Good morning, everyone and thank you for joining the call I'm, Rob Mccormick President of addressable Bank.
Speaker Change: I'm joined today as usual by Kevin Curley, who will be talking about lending Michael's America, our CFO, who will go through the numbers.
Speaker Change: During today's call, we will discuss certain financial measures derived from our factual statements that are not determined in accordance with U S. GAAP reconciliations of such non-GAAP financial measures to the most comparable GAAP figures are included in our earnings press release, which is available under the Investor Relations tab on our website at Trustco Bank Dot com.
Speaker Change: We're very pleased to report that 2025 is off to a strong start.
Operator: The reconciliations of such non-GAAP financial measures to the most comparable GAAP figures are included in our earnings press release, which is available on our website. site at TrustCorp.com.
Michael's America: Every category of deposits is up with low cost corn business accounts, including cannabis accounts, making significant contributions.
Robert McCormick: We did this by offering them great home equity products.
Michael's America: Time deposits are also up year over year, we are realizing the impact of a renewed focus on digital channels for our town opening.
Robert McCormick: Flexible and competitive CD options and better online and mobile bank I look forward to seeing how our team elevates the relationships we have with our customers in order to navigate the remainder of 2025 and beyond.
Operator: Please also note that today's event is being recorded. A replay of the call will be made available for 30 days and an audio webcast will be made available for one year. In all... time I was...
Speaker Change: Also note todays event is being recorded a replay of the call will be made available for 30 days and an audio webcast. We made available for one year as described in our earnings press release at this time I'd like to turn the conference call over to Mr. Appropriate J Mccormick Chairman President and CEO. Please go ahead.
Michael's America: These improvements are a result of hard work over the long haul.
Michael's America: Our people are focused on building and maintaining strong customer relationships.
Robert McCormick: Now, Mike will give us detail on the numbers, and Kevin will give color on the loan portfolio. Mike? Thank you, Rob, and good morning, everyone.
Michael's America: Offering top tier products affirmative effective management of our cost of funds.
Michael's America: Increases in deposits are especially good for us because we lend those bonds right back out.
Robert McCormick: Morning, everyone, and thank you for joining the call. I'm Rob McCormick, president of TrustCo Bank.
Speaker Change: Good morning, everyone and thank you for joining the call I'm, Rob Mccormick President of Trustco Bank.
Michael Ozimek: I will now review TrustCo's financial results for the first quarter of 2025. As we noted in the press release, the company saw a robust start to 2025, marked by growth in both the loan and deposit portfolios of TrustCo Bank during the first quarter of 2025 compared to the first quarter of 2020. This performance underscores the bank's commitment to serving its community through increased residential and commercial lending and adapting effectively to the evolving financial landscape. This resulted in the first quarter net income of $14.3 million, an increase of 17.7% over the prior year quarter, which yielded a return on average assets and average equity of 0.93% and 8.49% respect.
Kevin Curley: I'm joined today, as usual, by Kevin Curley, who will be talking about lending.
Our lending is funded organically by deposits gathered through our own network not borrowed funds or brokerage Cds significantly commercial lending is up 8%.
Speaker Change: I'm joined today as usual by Kevin Curley who'll be talking about lending Michaels and Mac, our CFO, who will go through the numbers.
Robert McCormick: I'm Michael Ozimek, our CFO, who will go through the numbers. We are very pleased to report that 2025 is off to a strong start. Every category of deposits is up with low-cost core and business accounts, including cannabis accounts, making significant contributions. Time deposits are also up year over year. We are realizing the impact of a renewed focus on digital channels for account opening. These improvements are a result of hard work over the long haul. Our people are focused on building and maintaining strong customer relationships and offering top-tier products to permit effective management of the cost of funds.
Speaker Change: We're very pleased to report that 2025 is off to a strong start.
Michael's America: With the total now topping $300 million on the residential side home equity products are leading the way total loans are up over $100 million from the first quarter of last year.
Mac: Every category of deposits is up with low cost corn business accounts, including cannabis accounts, making significant contributions.
Mac: Time deposits are also up year over year, we are realizing the impact of a renewed focus on digital channels for account opening.
Michael's America: Success in these areas have resulted in meaningful margin improvement of more than 8% year over year.
Michael's America: Net interest margin now sits at 264%.
Mac: These improvements are a result of hard work over the long haul.
Michael's America: Ill return metrics were up significantly with earnings per share return on average assets and return on average equity all up 27% coming in at 75 cents per share <unk>, 93% and 849% respectively.
Mac: Our people are focused on building and maintaining strong customer relationships.
Mac: And offering top tier products from it effective management of our cost of funds.
Michael Ozimek: Capital remains strong. Consolidated equity to assets ratio was 10.85% for the first quarter of 2025, compared to 10.51% for the first quarter of 2024. Book value per share at March 31st, 2025 was $36.16, up 6% compared to $34.12 a year earlier.
Robert McCormick: increases in deposits are especially good for us because we lend those funds right back out. Our lending is funded organically by deposits gathered through our own network, not borrowed funds or brokered CDs. Significantly, commercial lending is up 8% with the total now topping $300 million. On the residential side, home equity products are leading the way. Total loans are up over $100 million from the first quarter of last year. Success in these areas have resulted in meaningful margin improvement of more than 8% year over year. Net interest margin now sits at 2.64%. All return metrics are up significantly with earnings per share, return on average assets, and return on average equity all up 27%, coming in at $0.75 per share, 0.93%, and 8.49% respectively.
Mac: Increases in deposits are especially good for us because we love those bonds right back out.
Michael's America: Consolidated equity to assets remains exemplary at 10, 8% up 3% year over year.
Mac: Our lending is funded organically by deposits gathered through our own network not borrowed funds or brokerage Cds significantly commercial lending is up 8%.
Michael's America: Shareholders' equity was also strong up 6% year over year.
Mac: The total now topping $300 million on the residential side home equity products are leading the way total loans are up over $100 million from the first quarter of last year.
Michael's America: Excellent capital position will support our authorized 1 million share repurchase and allow us to operate from a position of strength and affords the flexibility in a dynamic environment.
Michael Ozimek: During the first quarter of 2025, TrustCo also announced a stock repurchase program of up to 1 million shares, or approximately 5% of TrustCo's current outstanding shares of common stock. This repurchase initiative is part of the bank's broader capital management strategy, and it is intended to enhance shareholder value while maintaining flexibility to support future. Average loans for the first quarter of 2025 grew 2.1%, or $104.7 million to $5.1 billion for the first quarter of 2024, an all-time high. Consequently, overall loan growth has continued to increase, leading the charts with the home equity lines of credit portfolio, which increased by $61 billion, or 17.3% in the first quarter of 2025, over the same period in 2024.
Mac: Success in these areas have resulted in meaningful margin improvement more than 8% year over year.
Michael's America: All of this success was accomplished while maintaining our exceptional asset quality.
Michael's America: Nonperforming loans total loans remained flat at a negligible three 7% and we realized a net recovery during the quarter.
Mac: Net interest margin now sits at 264%.
Mac: I'll return metrics are up significantly with earnings per share return on average assets and return on average equity all up 27% coming in at 75 cents per share <unk>, 93% and 849% respectively.
Michael's America: The results announced today illustrate the success that can be had through staying consistent with our mission.
Michael's America: Army and meeting our customers, where they are do that holding onto great mortgage rate they've got two years ago trying to anticipate where CD rates may go into next year, we're seeking enhanced digital experience. We did this by offering them great home equity products.
Robert McCormick: Consolidated equity to assets remains exemplary at 10.85%, up 3% year-over-year. Shareholders' equity is also strong, up 6% year-over-year. This excellent capital position will support our authorized million share repurchase and allow us to operate from a position of strength and afforded flexibility in a dynamic environment. All of this success was accomplished while maintaining our exceptional asset quality. Non-performing loans, total loans remained flat at a negligible 0.37% and we realized a net recovery during the quarter. The results announced today illustrate the success that can be had through staying consistent with our mission. and meeting our customers where they are.
Mac: Consolidated equity to assets remains exemplary, 10.85% up 3% year over year.
Mac: Shareholders' equity was also strong up 6% year over year.
Michael's America: Flexible and competitive CD options and better online and mobile banking.
Mac: Excellent capital position will support our authorized 1 million share repurchase and allow us to operate from a position of strength and affords the flexibility in a dynamic environment.
Michael Ozimek: The residential real estate portfolio increased $26.2 million, and an average commercial loans increased $20.7 million, or 7.5% over the same period in 2024. This uptick continues to reflect a strong local economy and increased demand for credit.
Michael's America: I look forward to seeing how our team elevates the relationships, we have with our customers in order to navigate the remainder of 2025 and beyond.
Mac: All of this success was accomplished while maintaining our exceptional asset quality nonperforming loans total loans remained flat at a negligible, 0.37% and we realized a net recovery during the quarter.
Michael's America: Now, Mike will give us detail on the numbers and Kevin will give color on the loan portfolio, Mike. Thank you, Rob and good morning, everyone. I will now review trust those financial results for the first quarter of 2025.
Michael Ozimek: For the first quarter of 2025, the provision for credit losses was $300,000. Retaining deposits has been a key focus as we move into 2025. Pulled deposits ended the quarter at $5.5 billion. It was up $142 million compared to the prior year quarter. We believe the increase in these time deposits compared to the same period in 2024 continues to indicate strong customer confidence in the bank's competitive deposit offerings.
Mac: The results announced today illustrate the success that can be had through staying consistent with our mission.
Michael's America: As we noted in the press release the company saw a robust start to 2025 marked by growth in both the loan and deposit portfolios of Trustco bank. During the first quarter of 2025 compared to the first quarter of 2024.
Mac: Army and meeting our customers, where they are do that holding onto great mortgage rate they've got two years ago trying to anticipate where CD rates may go into next year or so.
Robert McCormick: Be that holding on to great mortgage rate they got two years ago, trying to anticipate where CD rates may go in the next year, or seeking enhanced digital experience. We did this by offering them great home equity products. flexible and competitive CD options, and better online and mobile banking.
Michael's America: This performance underscores the bank's commitment to serving its community through increased residential and commercial lending and adapting effectively to the evolving financial landscape.
Mac: Seeking enhanced digital experience, we did this by offering them great home equity products.
Mac: Flexible and competitive CD options and better online and mobile banking.
Michael's America: This resulted in the first quarter net income of $14 3 million, an increase of 17, 7% over the prior year quarter, which yielded a return on average assets and average equity of 93% 849% respectively.
Michael Ozimek: As we move forward, despite a complex economic environment, we believe that our strategic focus on relationship banking and solid financial practices has positioned us for continued success. That interest income was $40.4 million from the first quarter of 2025, an increase of $3.8 million or 10.4% compared to the prior year quarter. manager's margin for the first quarter of 2025 was 2.64 percent, up 20 basis points from the prior quarter. During the same time period, the yield on interest earning assets increased to 4.13%, up 14 basis points, and the cost of interest bearing liabilities decreased to 1.92% for the first quarter of 2025 from 1.99%.
Robert McCormick: I look forward to seeing how our team elevates the relationships we have with our customers in order to navigate the remainder of 2025 and beyond.
Mac: I look forward to seeing how our team elevates the relationships, we have with our customers.
Mac: In order to navigate the remainder of 2025 and beyond.
Robert McCormick: Now, Mike will give us detail on the numbers, and Kevin will give color on the loan portfolio. Mike?
Mac: Now, Mike will give us detail on the numbers and Kevin will give color on the loan portfolio, Mike. Thank you, Rob and good morning, everyone. I will now review trucks with financial results for the first quarter of 2025.
Michael's America: Capital remained strong.
Michael Ozimek: Thank you, Rob, and good morning, everyone. I will now review TrustCo's financial results for the first quarter of 2025. As we noted in the press release, the company saw a robust start to 2025, marked by growth in both the loan and deposit portfolios of TrustCo Bank during the first quarter of 2025 compared to the first quarter of 2020. This performance underscores the bank's commitment to serving its community through increased residential and commercial lending and adapting effectively to the evolving financial landscape. This resulted in the first quarter net income of $14.3 million, an increase of 17.7% over the prior year quarter, which yielded a return on average assets and average equity of 0.93% and 8.49% respect.
Michael's America: Holiday and an equity to assets ratio was $10 eight 5% for the first quarter of 2025 compared to $10 five 1% for the first quarter of 2024.
Mac: As we noted in the press release the company saw a robust start to 2025 marked by growth in both the loan and deposit portfolios of Trustco bank. During the first quarter of 2025 compared to the first quarter of 2024.
Michael's America: Book value per share at March 31, 2025 was $36 16 up 6% compared to $34 12, a year earlier during.
Kevin Curley: This performance underscores the bank's commitment to serving its community through increased residential and commercial lending and adapting effectively to the evolving financial landscape.
Michael's America: During the first quarter of 2025, Trustco also announce a stock repurchase program of up to 1 million shares or approximately 5% of trustco current outstanding shares of common stock.
Kevin Curley: This resulted in the first quarter net income of $14 3 million, an increase of 17, 7% over the prior year quarter, which yielded a return on average assets and average equity of 93% and 849% respectively.
Michael Ozimek: As the Federal Reserve signals potential interest rate reductions in 2025, the Bank is proactively preparing to navigate the evolving rate environment. In this context, the bank anticipates that a lower interest rate environment will provide opportunities to manage deposit costs more effectively. thereby supporting The bank remains committed to maintaining competitive deposit offerings while ensuring financial stability and continued support for our community's banking needs.
Michael's America: This repurchase initiatives as part of the bank's broader capital management strategy is and it is intended to enhance shareholder value, while maintaining flexibility to support future growth.
Michael's America: Average loans for the first quarter of 2025 grew two 1% or $104 7 million to $5 1 billion for the first quarter of 2024, an all time high.
Michael Ozimek: Capital remains strong. Consolidated equity to assets ratio was 10.85% for the first quarter of 2025, compared to 10.51% for the first quarter of 2024. book value per share at March 31st 2025 was $36.16 up 6% compared to $34.12 a year earlier.
Kevin Curley: Capital remained strong consolidated equity to assets ratio was $10 eight 5% for the first quarter of 2025 compared to $10 five 1% for the first quarter of 2024.
Michael's America: Consequently, overall loan growth has continued to increase leading the charge was a home equity lines of credit portfolio, which increased by $61 million or 17, 3% at first quarter of 2025 over the same period in 2024.
Kevin Curley: Book value per share at March 31, 2025 was $36 16 up 6% compared to $34.12 a year earlier.
Michael Ozimek: Our Wealth Management Division continues to be a significant recurring source of non-interest income.
Michael Ozimek: They had approximately $1.1 billion of assets under management as of March 31, 2025. non-interest income attributable to wealth management and financial services. increased by 16.7% or $2.1 million driven by strong client demand and higher assets under management. These revenues now represent 42.6% of non-recurring income. The majority of this fee income is recurring and supported by long-term advisory relationships and a growing base of managed assets.
Michael Ozimek: During the first quarter of 2025, TrustCo also announced a stock repurchase program of up to 1 million shares, or approximately 5% of TrustCo's current outstanding shares of common stock. This repurchase initiative is part of the bank's broader capital management strategy, and it is intended to enhance shareholder value while maintaining flexibility to support future. Average loans for the first quarter of 2025 grew 2.1%, or $104.7 million to $5.1 billion for the first quarter of 2024, an all-time high. Consequently, overall loan growth has continued to increase, leading the chart to its own equity lines of credit portfolio, which increased by $61 million, or 17.3% in the first quarter of 2025, over the same period in 2024.
During the first quarter of 2025, Trustco also announce a stock repurchase program of up to 1 million shares or approximately 5% of trustco current outstanding shares of common stock.
Michael's America: The residential real estate portfolio increased $26 2 million and an average commercial loans increased $20 7 million or seven 5% over the same period in 2024.
Kevin Curley: This repurchase initiatives as part of the bank's broader capital management strategy is and it is intended to enhance shareholder value, while maintaining flexibility to support future growth.
Michael's America: This uptick continues to reflect a strong local economy and increased demand for credit.
Michael's America: For the first quarter of 2025, the provision for credit losses was $300000.
Kevin Curley: Average loans for the first quarter of 2025 grew two 1% or $104 7 billion to $5 1 billion for the first quarter of 2024, an all time high.
Michael's America: Retaining deposits has been a key focus as we move into 2025 pull deposits ended the quarter at $5 5 billion and was up $142 million compared to the prior year quarter. We.
Michael Ozimek: Now on to non-interest expense. Total non-interest expense, net of already expense came in at $26.3 million, up $1.4 million from the prior year quarter. The increase is primarily the result of higher costs and salary in employee benefits, equipment expense, professional services, outsourced services, and some other expenses. ORE expense net came in at an expense of $28,000 for the quarter. It's $74,000 in the prior year quarter.
Kevin Curley: Consequently, overall loan growth has continued to increase leading the charge was the home equity lines of credit portfolio, which increased by $61 billion or 17, 3%. The first quarter of 2025 over the same period in 2024.
Michael's America: We believe the increase in these time deposits compared to the same period in 2024 continues to indicate strong customer confidence in the bank's competitive deposit offerings as we move forward. Despite a complex economic environment, we believe that our strategic focus on relationship banking and solid financial practices has positioned us for continued success.
Michael Ozimek: The residential real estate portfolio increased $26.2 million, and an average commercial loans increased $20.7 million, or 7.5% over the same period in 2024. This uptick continues to reflect a strong local economy and increased demand for credit. For the first quarter of 2025, the provision for credit losses was $300,000. Retaining deposits has been a key focus as we move into 2025. Whole deposits ended the quarter at $5.5 billion. It was up $142 million compared to the prior year quarter. We believe the increase in these time deposits compared to the same period in 2024 continues to indicate strong customer confidence in the bank's competitive deposit offerings.
Kevin Curley: The residential real estate portfolio increased $26 2 million and an average commercial loans increased $20 7 million or seven 5% over the same period in 2020 for this uptick continues to reflect a strong local economy and increased demand for credit.
Michael Ozimek: We're going to continue to hold the anticipated level of expense not to exceed $250,000 per quarter. All of the other categories of non-interest expense were in line with our expectations for the first quarter.
Michael's America: Yes.
Michael's America: Net interest income was $40 4 million for the first quarter of 2025, an increase of $3 8 million or 10, 4% compared to the prior year quarter.
Michael Ozimek: And we would expect 2025 total recurring non-interest expense, net of ORE expense.
Kevin Curley: For the first quarter of 2025, the provision for credit losses was $300000.
Michael's America: Net interest margin for the first quarter of 2025 was 264% up 20 basis points from the prior quarter.
Michael Ozimek: Probably yours, guys.
Kevin Curley: Yeah.
Kevin Curley: Now Kevin will review the loan portfolio and non-performing loans. Thanks, Mike. And good morning to everyone. Our loans grew by 104.7 million or 2.1% year over year. The growth was centered on residential mortgages, which increased by 26.2 million over last year and our home equity loans increased by 61 million or 17.3%. In addition, our commercial loans grew by 20.7 million or 7.5% over last year. For the first quarter, actual loans increased by $18.1 million. As total residential loans grew by $2.8 million and commercial loans were also higher in the quarter, increasing by $15.9 million. Overall, residential activity trends remain similar to those discussed in recent quarters.
Kevin Curley: Retaining deposits has been a key focus as we move into 2025 total deposits ended the quarter at $5 5 billion and was up $142 million compared to the prior year quarter.
Michael's America: During the same time period, the yield on interest, earning assets increased to 413% up 14 basis points and the cost of interest bearing liabilities decreased to 192% for the first quarter of 2000 2025 from 199%.
Kevin Curley: We believe the increase in these time deposits compared to the same period in 2024 continues to indicate strong customer confidence in the bank's competitive deposit offerings as we move forward. Despite a complex economic environment, we believe that our strategic focus on relationship banking and solid financial practices has positioned us for continued success.
Michael's America: As the federal reserve signals potential interest rate reductions in 2025, the bank has proactively preparing to navigate the evolving rate environment.
Michael Ozimek: As we move forward, despite a complex economic environment, we believe that our strategic focus on relationship banking and solid financial practices has positioned us for continued success. Net interest income was $40.4 million for the first quarter of 2025, an increase of $3.8 million or 10.4% compared to the prior year quarter. and Interest Margin for the first quarter of 2025 was 2.64% of 20 basis points from the prior quarter. During the same time period, the yield on interest earning assets increased to 4.13%, up 14 basis points, and the cost of interest-bearing liabilities decreased to 1.92% for the first quarter of 2025 from 1.99%.
Michael's America: In this context, the bank anticipates, a lower interest rate environment will provide opportunities to manage deposit costs more effectively.
Kevin Curley: Yes.
Kevin Curley: Net interest income was $40 4 million for the first quarter of 2025, an increase of $3 8 million or 10, 4% compared to the prior year quarter.
Michael's America: Thereby supporting net interest margin.
Michael's America: Bank remains committed to maintaining competitive deposit offerings, while ensuring financial stability and continued support for our community banking needs.
Kevin Curley: Net interest margin for the first quarter of 2025 was 264% up 20 basis points from the prior quarter.
Kevin Curley: Our home equity products continue to see steady demand and to remain attractive to borrowers that have low-rate mortgages but may want to use their home's equity for various projects or large purchases. For purchase activity, we are well positioned in the market and look to capitalize as this mortgage segment picks up. Also, as a portfolio lender, we have the flexibility to use our control on pricing and the ability to offer various promotions to increase application volume. Rates in the market have been moving at a 50 basis point range, and our current rate is 6.5% for our base 30 year fixed rate loan.
Michael's America: Our wealth management Division continues to be a significant recurring source of noninterest income.
Kevin Curley: During the same time period, the yield on interest, earning assets increased to $4, one 3% up 14 basis points and the cost of interest bearing liabilities decreased to 192% for the first quarter of 2000 2025 from $1 99%.
Michael's America: At approximately $1 $1 billion of assets under management as of March 31, 2025.
Michael's America: Non interest income attributable to wealth management and financial services fees increased by 16, 7% or $2 $1 million driven by strong client demand and higher assets under management. These.
Michael Ozimek: As the Federal Reserve signals potential interest rate reductions in 2025, the Bank is proactively preparing to navigate the evolving rate environment. In this context, the bank anticipates that a lower interest rate environment will provide opportunities to manage deposit costs more effectively. thereby supporting them. The bank remains committed to maintaining competitive deposit offerings while ensuring financial stability and continued support for our community's banking needs.
Kevin Curley: As the federal Reserve's Eagle's potential interest rate reductions in 2025, the bank has proactively preparing to navigate the evolving rate environment.
Michael's America: These revenues now represent 42, 6% of nonrecurring income.
Michael's America: The majority of this fee income is recurring and supported by long term advisory relationships and a growing base of managed assets.
Kevin Curley: In this context, the bank anticipate a lower interest rate environment will provide opportunities to manage deposit costs more effectively thereby supporting net interest margin.
Kevin Curley: We have been keeping our rates very competitive with the goal of increasing market share.
Michael's America: Now onto noninterest expense total noninterest expense net of already expense came in at $26 3 million up $1 $4 million from the prior year quarter the.
Kevin Curley: The bank remains committed to maintaining competitive deposit offerings, while ensuring financial stability and continued support for our community banking needs.
Kevin Curley: Overall, we are positive about our loan growth in the quarter and remain focused on driving stronger results moving forward.
Michael Ozimek: Our Wealth Management Division continues to be a significant recurring source of non-interesting They had approximately $1.1 billion of assets under management as of March 31, 2025. non-interest income attributable to wealth management and financial services. increased by 16.7% or $2.1 million driven by strong client demand and higher assets under management. These revenues now represent 42.6% of non-recurring income. The majority of this fee income is recurring and supported by long-term advisory relationships and a growing base of managed assets.
Michael's America: The increase is primarily the result of higher costs and salary and employee benefits equipment expense professional services outsource services and some other expense.
Kevin Curley: Our wealth management Division continues to be a significant recurring source of noninterest income.
Kevin Curley: Moving to Asset Quality. Asset quality at the bank remains very strong. Non-performing loans were $18.76 million at this quarter end, $18.8 million last quarter, and $18.28 million a year ago. Non-performing loans to total loans remain very low at 0.37% at this quarter end compared to 0.37% last quarter and also 0.37% a year ago. nonperforming assets totaled $20.9 million at quarter end versus $21 million last quarter and $20.6 million a year ago.
Kevin Curley: We had approximately $1 $1 billion of assets under management as of March 31, 2025.
Michael's America: Oreo expense net came in at an expense of 28000 for the quarter as compared to 74000 in the prior year quarter.
Kevin Curley: Non interest income attributable to wealth management and financial services fees increased by 16, 7% or $2 $1 million driven by strong client demand and higher assets under management.
Michael's America: We're going to continue to hold the anticipated level of expense not to exceed $250000 per quarter.
Michael's America: All of the other categories of noninterest expense were in line with our expectations for the first quarter.
Kevin Curley: These revenues now represent 42, 6% of nonrecurring income.
Kevin Curley: The majority of this fee income is recurring and supported by long term advisory relationships and a growing base of managed assets.
Michael's America: And we would expect 2025 total recurring noninterest expense net of ore expense to be consistent with prior years guidance.
Kevin Curley: Our early-stage liquefies also continue to be steady. And charge-offs for the quarter amount to a net recovery of $258,000. compared to the fourth quarter's $102,000 chart. At quarter end, our allowance for credit losses remains solid at $50.6 million with a coverage ratio of 270%. compared to $50.2 million with a coverage ratio of 267% at year-end and $49.2 million with a coverage ratio of 269% a year ago.
Michael Ozimek: Now on to non-interest expense. Total non-interest expense, net of already expense came in at $26.3 million, up $1.4 million from the prior year quarter. The increase is primarily the result of higher costs in salary and employee benefits, equipment expense, professional services, outsourced services, and some other expenses. ORE expense net came in at an expense of $28,000 for the quarter, $74,000 in the prior year quarter. We're going to continue to hold the anticipated level expense not to exceed $250,000 per quarter. All of the other categories of non-interest expense were in line with our expectations for the first quarter and we would expect 2025 total recurring non-interest expense net of ORE expense .
Now Kevin will review the loan portfolio and nonperforming loans, Thanks, Mike and good morning to everyone. Our loans grew by $104 7 million or two 1% year over year.
Kevin Curley: Now onto noninterest expense total noninterest expense net of already expense came in at $26 3 billion up $1 $4 million from the prior year quarter.
Kevin Curley: The increase is primarily the result of higher costs and salary and employee benefits equipment expense professional services outsourced services and some other expenses.
Michael's America: The growth was centered on residential mortgages, which increased by $26 2 million over last year.
Michael's America: Home equity loans increased by $61 million or 17, 3%. In addition, our commercial loans grew by $27 million or seven 5% over last year.
Kevin Curley: Oreo expense net came in at an expense of 28000 for the quarter as compared to 74000 in the prior year quarter.
Kevin Curley: We're going to continue to hold the anticipated level of expense not to exceed $250000 per quarter.
Michael's America: For the first quarter actual loans increased by $18 1 million at.
Kevin Curley: We're happy to answer any questions you might have. Thank you very much.
Michael's America: As total residential loans grew by $2 8 million in commercial loans were also higher in the quarter decreasing by $15 9 million.
Kevin Curley: All the other categories of noninterest expense were in line with our expectations for the first quarter.
Operator: We'd now like to open the lines for Q&A. If you'd like to ask a question, please press star followed by 1 on your telephone keypad now. To remove yourself from the line of questioning, press star followed by 2.
Kevin Curley: And we would expect 2025 total recurring noninterest expense net of already experience to be consistent with prior years guidance.
Michael's America: Overall residential activity trends remained similar to those discussed in recent quarters.
Operator: 5-Year Sky.
Kevin Curley: Now Kevin will review the loan portfolio and non-performing loans. Thanks, Mike. And good morning to everyone. Our loans grew by $104.7 million or 2.1% year over year. The growth was centered on residential mortgages, which increased by $26.2 million over last year and our home equity loans increased by $61 million or 17.3%. In addition, our commercial loans grew by $20.7 million or 7.5% over last year. For the first quarter, actual loans increased by $18.1 million. as total residential loans grew by $2.8 million and commercial loans were also higher in the quarter, decreasing by $15.9 million. Overall, residential activity trends remain similar to those discussed in recent quarters.
Michael's America: Our home equity products continued to see steady demand and to remain attractive to borrowers that have low rate mortgages may want to use their homes equity for various projects for large purchases.
Kevin Curley: Now Kevin will review the loan portfolio and nonperforming loans.
Operator: Just a reminder to raise a question or be staffed for Lobo 1.
Speaker Change: And good morning to everyone.
Iain Lapey: First question comes from Iain Lapey of Gaberi Funds. Iain, your line is now open. Hi, good morning. Congratulations. The Open Network Conference. The press release references a strong local economy. I'm just curious, is that the capital region? Or is that all of your markets? I would say, yeah, I would, I would say we're located in, we're very stable and strong markets. In the Capital District, you know, we don't have the highs and lows that a lot of other economies and a lot of other markets have because of the employment base here and the service-based economy.
Speaker Change: Loans grew by $104 7 million or two 1% year over year.
Michael's America: For purchase activity, we are well positioned in the market and look to capitalize as this mortgage segment picks up.
Speaker Change: The growth was centered on residential mortgages, which increased by $26 2 million over last year.
Speaker Change: Our home equity loans increased by $61 million or 17, 3%. In addition, our commercial loans grew by $20 7 million or seven 5% over last year.
Michael's America: Also as a portfolio lender, we have the flexibility to use a control on pricing and the ability to offer various promotions to increase application volume.
Michael's America: Rates in the market have been moving in a 50 basis point range and our current rate is six 5% for our base 30 year fixed rate loan.
Speaker Change: For the first quarter actual loans increased by $18 1 million.
Speaker Change: As total residential loans grew by $2 $8 million in commercial loans were also higher in the quarter decreasing by $15 9 million.
Michael's America: They've been keeping our rates are very competitive with the goal of increasing market share.
Michael's America: Overall, we are positive about our loan growth in the quarter and remain focused on driving stronger results moving forward.
Speaker Change: Overall residential activity trends remained similar to those discussed in recent quarters.
Kevin Curley: Our home equity products continue to see steady demand and to remain attractive to borrowers that have low rate mortgages but may want to use their home's equity for various projects or large purchases. For purchase activity, we are well positioned in the market and look to capitalize as this mortgage segment picks up. Also, as a portfolio lender, we have the flexibility to use our control on pricing and the ability to offer various promotions to increase application volume. Rates in the market have been moving in a 50 basis point range, and our current rate is 6.5% for our base 30-year fixed rate loan.
Speaker Change: Our home equity products continued to see steady demand as it remain attractive to borrowers that have low rate mortgages may want to use their homes equity for various projects are large purchases.
Michael's America: Moving to asset quality.
Michael's America: Asset quality at the bank remains very strong non performing loans were $18 $76 million at this quarter and $18 8 million last quarter and $18, two 8 million a year ago.
Iain Lapey: But even the locations where we are in Florida, we're not really in South Florida, the Naples area and Bonita Springs and some of the places we've heard other difficulties. We're more concentrated in the Central Florida area and that still remains pretty strong. Good.
Speaker Change: For purchase activity, we are well positioned in the market and look to capitalize as this mortgage segment picks up.
Michael's America: Nonperforming loans to total loans remained very low at three 7% at this quarter and compared to three 7% last quarter and also 37% a year ago.
<unk> is a portfolio lender, we have the flexibility to use a control on pricing and the ability to offer various promotions to increase application volume.
Speaker Change: Rates in the market have been moving in a 50 basis point range and our current rate is six 5% for our base 30 year fixed rate loan.
Nonperforming assets totaled $20 9 million at quarter end.
Iain Lapey: And what are you seeing as sort of a follow on in terms of residential home price? Are they stable? over the years. most of your mark. stable and not increased. You're not seeing values drop, but the expectation of 10 and 15% annual returns on real estate are not happening.
Michael's America: $21 million last quarter, and $20 6 million a year ago.
Kevin Curley: We have been keeping our rates very competitive with the goal of increasing market share.
Michael's America: Our early stage delinquencies also continues to be steady.
Speaker Change: I've been keeping our rates are very competitive with the goal of increasing market share.
Kevin Curley: Overall, we are positive about our loan growth in the quarter and remain focused on driving stronger results moving forward.
Michael's America: And charge offs for the quarter amount to a net recovery of 258000.
Speaker Change: Overall, we are positive about our loan growth in the quarter and remain focused on driving stronger results moving forward.
Michael's America: Compared to the fourth quarter is $102000 charge.
Kevin Curley: Moving past the quality. Asset quality at the bank remains very strong. Non-performing loans were $18.76 million at this quarter end, $18.8 million last quarter, and $18.28 million a year ago. Non-performing loans to total loans remain very low at 0.37% at this quarter end compared to 0.37% last quarter and also 0.37% a year ago. nonperforming assets totaled $20.9 million at quarter end versus $21 million last quarter and $20.6 million a year ago. Our early stage relinquencies also continue to be steady. And charge-offs for the quarter amount to a net recovery of $258,000. compared to the fourth quarter's $102,000 chart.
Speaker Change: Moving to asset quality.
Michael's America: At quarter end, our allowance for credit losses remained solid at 56 million with a coverage ratio of 270%.
Speaker Change: Asset quality at the bank remains very strong non performing loans were $18 seven 6 million at this quarter and $18 8 million last quarter and $18, two 8 million a year ago.
Michael's America: Compared to $50 2 million with a coverage ratio of 267% at year end and $49 2 million and a coverage ratio of 269% a year ago Rob.
Iain Lapey: And then my other topic is the share repurchase. Just curious, a couple At around the same time a year ago, you announced a plan... for about one. re-purchase any shares. Now you're doing up to five. significantly bigger...
Speaker Change: Nonperforming loans to total loans remained very low at three 7% at this quarter end compared to 23, 7% last quarter and also 0.37% a year ago.
Michael's America: Happy to answer any questions you might have.
Michael's America: Yeah.
Michael's America: Thank you very much but not so much the lines to Q&A.
Speaker Change: Nonperforming assets totaled $20 9 million at quarter end, our $21 million last quarter, and $20 6 million a year ago.
Michael's America: I should let supposed a question. Please press star one on your telephone keypad now.
Speaker Change: So maybe a separate line of questioning stuff.
Speaker Change: Our early stage delinquencies also continued to be steady.
Iain Lapey: What changed in terms of the size? have more of an intent. Yeah, I think the 5% kind of contemplated the fact that we didn't execute on the 1%. And I think the tone and tenor toward share repurchases is more favorable this year and now than it was in prior periods. So our intent would be to fully execute on the 5% this year. Okay.
Philip: Philip I too.
Philip: That's a minus to raise a question don't be stuff slip Oakland.
Speaker Change: And charge offs for the quarter amount to a net recovery of 250000.
First question comes from Ian Lucky of Gabelli funds. Your line is not what I said.
Speaker Change: <unk> to the fourth quarter was $102000 charge.
Ian Lucky: Hi, good morning, congratulations on a good start to the year.
Kevin Curley: At quarter end, our allowance for credit losses remains solid at $15.6 million with a coverage ratio of 270%. compared to $50.2 million with a coverage ratio of 267% at year-end, and $49.2 million with a coverage ratio of 269% a year ago.
Speaker Change: At quarter end, our allowance for credit losses remained solid at $56 million with a coverage ratio of 270%.
Ian Lucky: [noise] couple thanks, Ian good morning.
Ian Lucky: Thank you.
Speaker Change: Compared to $50 2 million with a coverage ratio of 267% at year end and $49 2 million and a coverage ratio of 269% a year ago Rob.
Ian Lucky: The press release references a strong local economy.
Ian Lucky: I'm just curious is that the.
Ian Lucky: The capital region or is that all of your markets. Maybe you can just expand a little bit on that.
Kevin Curley: We're happy to answer any questions you might have. Thank you very much.
Iain Lapey: And then maybe as a follow-up, in terms of capital, obviously very strong. 10.842. Even if you did all the 5%.
Speaker Change: We are happy to answer any questions you might have.
You know the market's telling us.
Speaker Change: Yeah.
Ian Lucky: And that was so strong I would say yeah, I would I would say, where we're located in were very stable and strong markets.
Operator: We'd now like to open the lines for Q&A. If you'd like to ask a question, please press star followed by one on your telephone keypad now. So move yourself and the line of questioning will be star followed by two. Just a reminder to raise a question or be staffed for above one.
Speaker Change: Thank you very much but not so much the lines to Q&A if.
Speaker Change: If you'd like to ask a question. Please press star one on your telephone keypad now Cemig assessment line of questioning stuff slipped by two.
Ian Lucky: The capital District, you know, we don't have the highs and lows that.
Iain Lapey: right away, that would still only drop to about What sort of target capital ratio are you contemplating? I don't know if we want to tell the target capital ratio that we have, but we would certainly have room to make another repurchase and still maintain a very strong capital position. comfortably. That's a good way of answering that, Ian. Okay, great.
Ian Lucky: A lot of other economies and a lot of other markets.
Speaker Change: As a reminder, the surveys the question won't be stuff flip Oakland.
Ian Lapey: first question comes from Ian Lapey of Cabernet Funds. Ian, your line is now open. Hi, good morning. Congratulations. Good start to the year. Couple questions. Good morning, viewers. Thank you. The press release references a strong local economy. I'm just curious, is that the capital region or is that all of your markets? thanks for telling us.
Ian <unk>: Our first question comes from Ian <unk> of Gabelli funds. Your line is not open.
Ian Lucky: Because of the employment base here.
Ian Lucky: And the service based economy, but even the locations where we are in Florida, we're not really in South Florida, The Naples area in Bonita Springs, and some of the places we've heard other difficulties.
Ian <unk>: Hi, good morning, congratulations on a good start to the year.
Ian <unk>: A couple of thanks, Ian good morning.
Ian <unk>: Thank you.
Ian Lucky: We're more concentrated in central Florida area and that still remains pretty strong.
Ian <unk>: The press release referenced as a strong local economy.
Ian <unk>: I'm just curious is that.
Ian Lucky: Okay. Good.
Speaker Change: And what are you seeing.
Ian <unk>: The capital region or is that all of your markets. Maybe you can just expand a little bit on that.
Speaker Change: It's sort of a follow on in terms of home residential home price trends are they stable or if they've been increasing over the year.
Iain Lapey: Congratulations. Thank you. Thank you very much.
Ian <unk>: You know the market's telling us.
Operator: As a reminder, if you would like to raise a question, please press star followed by one on your telephone keypad.
Robert McCormick: I would say, yeah, I would, I would say we're located in, we're very stable in strong markets. In the Capital District, you know, we don't have the highs and lows that a lot of other economies and a lot of other markets have because of the employment base here and the service-based economy. But even the locations where we are in Florida, we're not really in South Florida, the Naples area and Bonita Springs and some of the places we've heard other difficulties. We're more concentrated in the Central Florida area, and that still remains pretty strong. Good. And what are you seeing as sort of a follow on in terms of residential home price?
Ian <unk>: So stronger Tom Yeah, I would say, yeah, I would I would say, where we're located in were very stable and strong markets.
Speaker Change: And are most of your markets.
Speaker Change: Stable and not increasing.
Operator: Until next time, we have no further questions.
Ian <unk>: The capital District, you know, we don't have the highs and lows that.
Robert McCormick: I'd like to hand back to Rob McCormick for any closing remarks. It was nice seeing Troy Heidenberg on the call roster. And I can't believe I'm seeing Eric Schreck as a private investor instead of a coworker. I hope you all guys all have a nice day. And thank you for your interest in our company.
Speaker Change: You're not seeing Chris.
Ian <unk>: A lot of other economies and a lot of other markets.
Values drop but.
Speaker Change: The expectation of 10, and 15% annual returns on real estate or are not happening.
Because of the employment base here.
Ian <unk>: And the service based economy, but even the locations where we are in Florida, we're not really in South, Florida, Naples area in Bonita Springs, and some of the places we've heard other difficulties.
Speaker Change: Right Okay.
Speaker Change: And then.
Speaker Change: My other topic is the share repurchase announcement, just curious a couple of things.
Operator: As we conclude today's call, we'd like to thank everyone for joining. You may now disconnect your line.
Ian <unk>: We're more concentrated in central Florida area and that still remains pretty strong.
Speaker Change: At around the same time, a year ago, you announced a plan for about 1%.
Ian <unk>: Okay. Good.
Speaker Change: But didn't repurchase any shares now youre doing up to 5% so significantly bigger.
Speaker Change: What are you seeing.
Speaker Change: It's sort of a follow on in terms of home residential home price trends are they stable or if they've been increasing over the year.
Robert McCormick: Are they stable? over the years. almost here, Mark. stable and not increased.
Speaker Change: Maybe what changed in terms of the size and do you have more of an intention to execute as compared to a year ago.
Speaker Change: And are most of your markets.
Speaker Change: Stable and not increasing.
Robert McCormick: You're not seeing values drop, but the expectation of 10% and 15% annual returns on real estate are not happening.
Speaker Change: Yes.
Speaker Change: You're not seeing increase.
Speaker Change: The 5% kind of contemplated the fact that we didn't execute on the 1% and I think the tone and tenor toward share repurchases is more favorable this year and now than it was in prior periods. So our intent would be to fully execute on the 5%.
Speaker Change: Values drop but.
Speaker Change: The expectation of 10, and 15% annual returns on real estate or are not happening.
Speaker Change: Right Okay.
Ian Lapey: And then my other topic is the share repurchase. Just curious, a couple At around the same time a year ago, you announced a plan for about one didn't repurchase any sh Now you're doing up to five. What changed in terms of the size? have more of an in Yeah, I think the 5% kind of contemplated the fact that we didn't execute on the 1%. And I think the tone and tenor toward share repurchases is more favorable this year and now than it was in prior periods. So our intent would be to fully execute on the 5% this year.
Speaker Change: And then.
Speaker Change: My other topic is the share repurchase announcement, just curious a couple of things.
Speaker Change: This year.
Speaker Change: Okay, and then maybe as a follow up in terms of capital obviously very strong.
Speaker Change: At around the same time, a year ago, you announced a plan for about 1%.
Speaker Change: But didn't repurchase any shares now youre doing up to 5% so significantly bigger.
Speaker Change: 10.8 for TCE.
Speaker Change: Even if you did all the 5% right away that would still only dropped to about 10 point for what what sort of target capital ratio was at.
Speaker Change: Maybe what changed in terms of the size and do you have more of an intention to execute as compared to a year ago.
Speaker Change: Or are you contemplating.
Speaker Change: Contemplating.
Speaker Change: Yes.
Speaker Change: Well.
Speaker Change: The 5% kind of contemplated the fact that we didn't execute on the 1% and I think the tone and tenor toward share repurchases is more favorable this year and now than it was in prior periods. So our intent would be to fully execute on the 5%.
Speaker Change: I read them, if we wanted to tell the targeted capital ratio that we have but we would certainly have room to make another repurchase and still maintain a very strong capital position.
Speaker Change: Comfortably that's a good way of answering I am.
Speaker Change: This year.
Speaker Change: Okay, great congratulations.
Ian Lapey: Okay.
Robert McCormick: And then maybe as a follow-up, in terms of capital, obviously very strong. 10-point-8-4-2. Even if you did all the 5% right away, that would still only drop about 10.4%. What sort of target capital ratio are you contemplating? I don't know if we want to tell the target capital ratio that we have, but we would certainly have room to make another repurchase and still maintain a very strong capital position. Comfortably. That's a good way of answering that, Ian.
Speaker Change: Okay, and then maybe as a follow up.
Speaker Change: Thank you.
Speaker Change: In terms of capital, obviously very strong.
Speaker Change: Thank you very much as a reminder, if you would like to raise a question. Please press star followed by one telephone keypad now.
Speaker Change: 10.8 for TCE.
Speaker Change: Even if you did all of the 5%.
Speaker Change: At this time, we have no further questions I'd like to hand back to Rob Mccormick for any closing remarks.
Speaker Change: Right away that would still only dropped to about 10 point for what what.
Speaker Change: So as I see in Troy heightened Berg on the call roster and I can't believe I'm, saying, Eric Schreck is a private investor instead of <unk>.
Speaker Change: Sort of target capital ratio was at <unk>.
Speaker Change: Are you contemplating.
Speaker Change: Contemplating.
Speaker Change: Well.
Speaker Change: <unk> I hope you guys all have a nice day.
Speaker Change: I don't know if we want to tell the targeted capital ratio that we have but we would certainly have room to make another repurchase and still maintain a very strong capital position.
Speaker Change: Thank you for your interest in our company.
Speaker Change: As we conclude today's call we'd like to thank everyone for joining you may disconnect your lines.
Speaker Change: Comfortably that's a good way of answering that in.
Speaker Change: Yeah.
Ian Lapey: Okay, great.
Ian Lapey: Congratulations. Thank you. Thank you very much.
Speaker Change: Okay, great congratulations.
Speaker Change: Thank you.
Operator: As a reminder, if you would like to raise a question, please press star followed by one on your telephone keypad. At this time, we have no further questions.
Speaker Change: Thank you very much as a reminder, if you would like to raise a question. Please press star followed by one telephone keypad now.
At this time, we have no further questions I'd like to hand back to Seabrook Mccormick for any closing remarks.
Robert McCormick: I'd like to hand back to Rob McCormick for any closing remarks. It was nice seeing Troy Heidenberg on the call roster. And I can't believe I'm seeing Eric Schreck as a private investor instead of a coworker. I hope you all guys all have a nice day. And thank you for your interest in our company.
Speaker Change: So it was nice seeing Troy heightened Berg on the call roster and I can't believe I'm seeing Eric Schreck is a private investor instead of a co work I Hope you guys all have a nice day.
Speaker Change: Thank you for your interest in our company.
Operator: As we conclude today's call, we'd like to thank everyone for joining. You may now disconnect your lines.
Speaker Change: As we conclude today's call we'd like to thank everyone for joining you may disconnect your lines.
Speaker Change: Yeah.
Speaker Change: [music].