Sandy Spring Bancorp - Q2 2021

Transcript

Speaker 0

Good afternoon, and welcome to the Sandy Spring Bancorp Earnings Conference Call and Webcast for the Q2 of 2021. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the conference Over to Daniel Schrider, President and CEO. Please go ahead.

Speaker 1

Thank you, and good afternoon, everyone. We appreciate you joining us today for conference call to discuss Sandy Spring Bancorp's performance for the Q2 of 2021. Today, we will also bring you up to date on our response to and Regarding the impact from the COVID-nineteen pandemic. This is Dan Schrider speaking, and I'm joined here today by my colleagues, Phil Mantua, Chief Financial Officer And Aaron Kaslow, General Counsel for Sandy Spring Bancorp. Today's call is open to all investors, analysts and the media.

There's a live webcast of today's call and a replay will be available on our website later today. Before we get

Speaker 2

Thank you, Dan. Good afternoon, everyone. Sandy Spring Bancorp will make forward looking statements in this webcast that are subject to risks and uncertainties. These forward looking statements include statements of goals, intentions, earnings and other expectations, estimates of risks and future costs and benefits, assessments of expected credit losses, Assessments of market risk and statements of the ability to achieve financial and other goals. These forward looking statements are subject to significant uncertainties because they are based on or affected by management's estimates and projections of future interest rates, market behavior, other economic conditions, Future laws and regulations and a variety of other matters, including the impact of the COVID-nineteen pandemic, which by their very nature are subject to significant uncertainties.

Because of these uncertainties, Sandy Spring Bancorp's actual future results may differ materially from those indicated. In addition, the company's past results of operations do not necessarily indicate its future results.

Speaker 1

Thank you, Aaron, and thank you all again for joining us today to discuss our Q2 financials. We are pleased to report another strong And we are now 1 year beyond our acquisition of Revere Bank and the benefits that strategic partnership continue to contribute to our overall performance. And the same goes for our acquisition of Renberg Pendleton Jackson or RPG. Quarter after quarter, our results validate that adding RPG to the Sandy Spring Bank family And across our entire wealth group, including RPJ, West Financial Services and Sandy Spring Trust, we've seen impressive year over year growth. Overall, our company is in a great position.

And let's start by breaking down some of the highlights from the press release, and then Phil and I talk you through the supplemental information we also issued today. Today, we reported net income of 57 point $3,000,000 or $1.19 per diluted share for the quarter ended June 30, 2021. This quarter's result Net income of $75,500,000 or $1.58 per diluted share for the Q1 of 2021. Core earnings were $55,100,000 or $1.16 per diluted share compared to $51,900,000 or 1 point share for the quarter ended June 30 last year $56,900,000 or $1.20 per diluted share for the quarter ended March 31, 2021. The provision for credit losses was a credit of $4,200,000 compared to a credit of $34,700,000 in the linked first quarter.

The current and prior quarter's provision credits were primarily the result of an improved economic outlook, including a decline in the forecasted unemployment rate. Phil will talk you through the provision credit in more detail when we review the supplemental materials. Shifting to the balance sheet. Total assets declined 3% to $12,900,000,000 compared to $13,300,000,000 at June 30, 2020. This decline was primarily the result The net reduction of $179,200,000 in loans originated under the Paycheck Protection Program and the $251,500,000 decline Total loan growth compared to the linked quarter was 1% with 2% organic growth within the commercial book.

Year over year, we saw non PPP commercial loan growth of 4% and commercial real estate loan growth was 6%. We continue to operate in the season of lower commercial line utilization, higher runoff and significant borrower liquidity. At the same time, we have momentum as we look into the 3rd Q4. For instance, quarter over quarter, gross commercial production increased 300,000,000 or 61% and funded production increased $214,000,000 or 75 percent and our pipeline looks equally as strong heading into the Q3. It's important to note that the higher runoff we experienced in the first and into the second quarter was driven primarily by success achieved by our clients as well as traditional refinancing into life company market, but not the result of the loss of client relationships.

On the deposit side of things, deposits increased 2% during the linked quarter, driven by 6% growth in noninterest bearing deposits. Deposit growth was 8% during the past 12 months as non interest bearing deposits grew 16% and interest bearing deposits grew by 3%. This growth was primarily driven by PPP and to a lesser extent growth in core deposit relationships. PPP related deposit retention continues to be strong and we estimate that approximately $990,000,000 62% of the combined round 1 and round 2 PPP deposits are still on the balance sheet with 81% of these deposits Still being retained in customer checking accounts. Noninterest income increased 15% or $3,300,000 compared to the prior year quarter As wealth management income grew 20% and service charges on deposit accounts increased 62%.

Bank card fees grew 42% compared to the prior year given increased transaction volume. Other noninterest Wealth management income increased $3,300,000 year over year as a result of the Q1 of 2020 acquisition of RPJ and $818,000,000 growth in assets under management across our 3 wealth franchises. We have exceptional professionals and industry experts in RPJ, West Financial Services and Sandy Spring Trust, and they continue to attract new clients, Mortgage banking income in the 1st two quarters increased $4,500,000 compared to the same period last year. Mortgage banking income decreased from $10,200,000 $5,800,000 compared to the linked quarter. The overall level of mortgage banking income in the 2nd quarter Should hold up as we approach the second half of this year.

We are extremely pleased with our margin this quarter. The net interest margin was 3.63 for the Q2 of 2021 compared to 3.47 for the same quarter of 2020 The current quarter's net interest margin would have been 3.60% compared to 3.19% for the Q2 of 2020 and $346,000,000 for the Q1 of 2021. The strength of our margin continues to be driven by our ability to effectively manage our cost of funds as our core margin adjusted for PPP and fair value impacts expanded on a linked quarter basis from $342,000,000 to $349,000,000 This was supported by our payoff of all remaining FHLB advances during the quarter as well. Non interest expense decreased $22,500,000 or 26% compared to the prior year quarter. The prior year's quarter included $22,500,000 M and A expense as well as $5,900,000 in prepayment penalties from the liquidation of acquired FHLB borrowings.

These reductions from the prior year more than This quarter's $4,700,000 increase in salary and benefit expenses, which was driven by staffing increases and annual merit awards that occurred this quarter. The non GAAP efficiency ratio was 40five-thirty 6 for the current quarter compared to 40three-eighty 5 for the Q2 of $2,062.65 for the Q1 of 2021. This modest increase in the efficiency ratio from the Q2 of the prior year was a result of the 11% growth in non GAAP expense outpacing the 8% growth in non GAAP revenue. Lower levels of gain on mortgage sales coupled with strategic initiative based increases in personnel costs and technology related consulting fees drove the linked quarter increase in the efficiency ratio. Looking ahead, we continue to manage this expense to revenue metric to a targeted range of 48 50% as PPP revenues eventually abate and we continue to make strategic investments in people and technology.

Speaker 3

I I want to provide you

Speaker 1

a little more color on what's playing into these expenses. We are making strategic staffing and technology investments to build a platform for future growth, facilitate and improve client experience and help deepen client relationships. Specifically, we are building an omnichannel digital platform with Backbase and implementing an enterprise wide integration layer with a company called MuleSoft, which enables the design and build of APIs to support the bank based project. We're also creating a holistic data infrastructure, and all of this is being done with salesforce.com serving as our main hub for everything we do. Through all this work, we will achieve a more seamless integration with new technologies and we'll have the flexibility to move to a new core system should we decide to make that type of move.

At this stage, we are ramping up on the staffing and consulting front to support this work, and we'll continue to update you in the future on our progress. Shifting to credit quality, nonperforming loans decreased from 94 basis points in the linked quarter to 93 basis points, an increase from 70 7 basis points in the Q2 of the prior year. Non performing loans totaled 94 $3,000,000 compared to $98,700,000 for the Q1 of the year. New loans placed on non accrual during the current quarter were $1,500,000 compared to $27,300,000 for the prior year quarter and $421,000 for the Q1 of 2021. Loans in non accrual status at quarter end included a few large borrowings within the hospitality sector with an aggregate balance of just under $41,000,000 These large collateral dependent loans had individual reserves of $5,700,000 atquarterend And we recorded net charge offs of $2,200,000 for the Q2 of 2021 compared to net recoveries of $367,000 for the 2nd Quarter of 2020 and net charge offs of $300,000 for the Q1 of 2021.

The increase was primarily The allowance for credit losses was 124 $1,000,000 or 1.23 percent of outstanding loans and 131 percent of non performing loans compared to $130,400,000 or 1.25 percent of outstanding loans and 132 percent of non performing loans at the linked quarter. Excluding PPP, the allowance for credit losses as a percentage of total loans outstanding decreased to 1.34% compared to 1.43 percent at the linked quarter. All in all, credit quality has remained very solid, The team has done a terrific job managing through the last several quarters. As a result of the accumulated earnings over the preceding 12 months, tangible common equity increased $1,200,000,000 or 9.28 percent of tangible assets at June 30, 2021 compared to $983,400,000 or 7.63 At June 30, 2020. Excluding the impact of the PPP program from tangible assets at June 30, the tangible common equity ratio would be 9, 8%.

Given the strength of our earnings and capital position, we are likely to be active under our share repurchase program in the coming months, And we also continue to build relationships with both banks and non banks as part of our M and A strategy. At June 30, the We will now turn to the supplemental information we also issued this morning. On Slide 2, you can see that loans with payment accommodations as of June 30 Total $216,000,000 resulting in 2% of our loan portfolio receiving accommodations compared to 3% in the linked quarter. As we noted in the press release, 93% of the loans that have been granted modifications or deferrals due to pandemic related financial stress have returned to original payment plans. Moving to Slide 3, we have detailed specific industry information, which we've updated and shared the past 5 quarters.

Outstanding balances for each segment and the loan and payment accommodations are as of June 30. On Slides 45, we've broken out where we stand on forgiveness for rounds 12 of the program. As of July 9, 86% of Round 1 loans have applied for forgiveness and 99.6% of all forgiveness applications submitted to the SBA have received full forgiveness. On Slide 5, you can see we're in the early stages of our round 2 forgiveness, and we expect those efforts to continue throughout this calendar year. Now, I'm going to take a break and turn it over to Phil, who can talk you through CECL and our capital position.

Speaker 4

Thanks, Van. Good afternoon, everyone. I'm going to pick up on Slide number 6, where we have our waterfall representation of the movement in our allowance for the Q2 of 2021, which is broken down into the components that reflect the key drivers of the change during the quarter. The change over the course of the current quarter was primarily driven by reduction in the projected near term level of the unemployment rate, which as you know is a key economic factor in our CECL methodology. This element of reserve release was offset this quarter by an increase due to adjustments to certain qualitative factors and also an increase of $3,200,000 in specific reserves.

On Slide 7 is a comparison of our current and more recent economic forecast Our CECL methodology continues to use the Moody's baseline forecast that for the Q2 was a version that was released By Moody's on June 21st. This baseline forecast integrates the effect of COVID-nineteen and portrays an unemployment rate for our local market That has essentially already peaked and ultimately recovers to a level of 3.12% in the Q2 of 2023, which is projected on employment level that would continue to improve, but at a slower pace than in previous quarters. Additionally, the projected levels of year over year growth in business bankruptcies and the changes in the home price index as presented contribute to the provision credit for the quarter. Our key macroeconomic variables are further outlined on Slide 8. In determining our reasonable and supportable forecast period, we continue to use a 2 year time horizon to reflect less uncertainty in the long term outlook at this time.

Similar

Speaker 2

to the

Speaker 4

approach taken in previous quarters, we continue to not take into consideration any potential mitigating factors based on what could be perceived as the positive outcome or impact of government programs such as PPP, etcetera. We feel very comfortable that this continues to be the right conservative stance. Conversely, we have chosen to continue to include an additional qualitative factor related to Slide 9 provides some additional granularity related to our reserve from a portfolio view, where you can see that all of our major categories of commercial loans With the exception of A, B and C, reflect a continuing trend of reserve release. We should note that the 1.26% of reserve reflected for commercial business loans includes PPP loans in the balance, although there is no reserve required on those loans. As illustrated in the footnote at the bottom of the slide, when adjusting the balance to exclude PPP loans outstanding, the reserve on our commercial business segment would be 2.26 percent and our total reserve would be 1.34 percent of our total loans.

Finally, on Slide 10 is a trend of our pertinent capital ratios with some brief explanations regarding the treatment of certain items and their impact on the resultant ratios. Included in those comments is an adjusted tangible equity to tangible assets to reflect the impact of PPP loans on the current measure. We feel confident about our capital position as all of our metrics continue to improve as a result of the strength of our earnings This quarter. We've also recently updated our capital stress test where we have constructed our baseline and severe forecast scenarios, We view our overall capital position as strong, which allows us to consider the various capital deployment strategies, some of which Dan mentioned in some of his earlier comments. Dan, back to you.

Speaker 1

Thank you, Phil. Beyond our financials, I just have a few other updates to share with you today. Last quarter, I reported that we were beginning to welcome more employees and to access our more than 60 branch locations. I should note that our clients came to appreciate our enhanced drive thru capabilities during the pandemic, So those expanded options will continue to be available at all of our drive through locations. Non branch personnel is also back in the office at at least 50% of the time, and we will expand in person operations after the Labor Day weekend.

However, we will continue to offer our employees Increased flexibility and remote work options. Sandy Spring also continues to earn local and national recognitions. For the 3rd year in a row, Ford's named Sandy Spring Bank 1 of America's Best in State Banks and the number one bank in Maryland. The Washington Post also named us Top Workplace for the 3rd consecutive year. These recognitions And our strong financial results are only made possible by our remarkable employees, the majority of whom are shareholders as well.

So on behalf of the executive leadership team, thank you to all of our people for your tremendous contributions to the success of our And we look forward to continuing to come together and finishing 2021 strong. This concludes our general comments And we'll now move to your questions. So operator, we'll take the question. If you can please identify your name and company affiliation as you come on the line, that would be great.

Speaker 0

And our first question comes from Casey Whitman of Piper Sandler. Please go ahead. Hey, good afternoon.

Speaker 5

Phil, any update for just the range of the core margin over maybe the back half The year from the 3.49 or so range that you had this quarter?

Speaker 4

Yes, I would probably Give you that core margin is most likely going to compress a bit here as we move through the Remaining half of the year, probably 3.40%, 3.45% range is where I would put the true core. And we're getting to a point where the fair Quarter to quarter, we'll be pretty close to reporting that kind of a core as we move forward anyway. But I would go 3.40 to 3.45.

Speaker 5

Okay. And we saw a big jump in the demand deposit, non interest bearing deposits this quarter, but what are sort of your Your thoughts on how long those deposits stay with you or how are you thinking about liquidity on the back half of the year and how that plays into the margin commentary?

Speaker 4

Yes, Casey, I think that, first of all, as Dan mentioned in his comments, we're still carrying a significant amount of PPP related deposits. And in our internal projections, well, first of all, we're at 61% or 2% of what we think was the total to begin with today. Our internal projections have always had that finally bottoming out at maybe 30% to 35% of the original oriented deposits from those originations. And so You could see some of that just naturally if our projections in that area come down, could eat into the liquidity position. I mean, we certainly know that We're sitting on a much larger kind of cash and interest bearing balance predominantly with the Fed here at the end of the quarter than we normally would.

I think it's probably about 6 $100,000,000 now 4% of assets, which in comparison to a lot of other banks, I believe, is still fairly small relative The size of our balance sheet. But I think that our first deployment of that over time here through the end of the year would be through additional loan growth that I'm Sure. We'll talk about here before we're done. As well as we do we are sitting on about 7% of our total deposits in brokered, Of which about $300,000,000 of that is brokered CDs and about $250,000,000 of that is scheduled to mature in the next 6 months. So we've got some different levers there to look at as to how to absorb that excess liquidity here for the rest of the year.

Speaker 5

Got it. Do you have any idea how much that $250,000,000 costs offhand?

Speaker 4

That average is about 7 basis points. Okay. It's fairly inexpensive to begin with, but nevertheless, it's somewhere it ranges Up to about 10 basis points for any one of those blocks.

Speaker 5

Okay. Understood. I'll just Turn the conversation quickly before I hop off to the fees. First, I was just wondering, can you remind us the expected impact of Durbin on the bank

Speaker 4

Yes, it doesn't actually occur for us now until next year this time. And I think our estimation on that is $3,500,000 if I'm not mistaken, Roughly.

Speaker 5

Okay. All right. Thank you. I'll let someone else hop on.

Speaker 1

Thanks, Casey. Thanks, Casey.

Speaker 0

The next question comes from Catherine Mealor of KBW. Please go ahead.

Speaker 6

Thanks. Good afternoon.

Speaker 4

Hi, Catherine. Hi, Catherine.

Speaker 6

Phil, you teed up the wound growth conversation. So I'll start there and just wanted to get your thoughts on where you think loan growth can improve to in the back half of the year.

Speaker 1

Yes. Casey, this is Dan. Good afternoon. What we saw in the second quarter and I'm Focusing my comments predominantly on the commercial book was and as I said in my prepared remarks, we were Our production was about $300,000,000 north of where we were in the Q1 and put numbers on that, taking it $490,000,000 to over $790,000,000 in production. And our pipeline going into the Q3 should point to Pretty consistent level of production.

So all of that to say is we still feel pretty good about that Mid single to a little north of that single digit growth in the commercial book just based on The contraction we saw in the Q1. The only other thing that would that could modify the overall loan growth picture is if Along the lines of what we do with some of this excess liquidity, we could choose to hold some additional mortgages on And that's probably something likely that we would do for the remainder of the year, which We'd like to see our mortgage balances kind of get back to where they were, which would allow that commercial growth to make a little bit of a greater impact for

Speaker 6

And My follow-up question is just kind of how you're thinking about the M and A landscape today. We've seen a number of acquisitions kind of Smaller in the southeastern space, and just how you're thinking about M and A potential for you all in this environment?

Speaker 1

Yes. No, we're certainly thinking about it and as well as building and continuing to build relationships with those that we think might be good matches for us. So we're certainly not on the sidelines, And we'll look at transactions that we think will benefit the franchise and further our strategic goals. I think our Yes. As we probably mentioned before, I mean, our kind of circle geographically is it probably goes North into Southern PA, down through Richmond, west into the Shenandoah Valley and then all the way to the Atlantic.

And that's kind of the immediate area that we're focused on building relationships. But M and A is going to be a part of what we do as it has been the last few years.

Speaker 6

Great. That's all I got. Very straightforward quarter. Thank you.

Speaker 4

Thanks, Catherine. Thank you.

Speaker 0

The next question comes from Brody Preston of Stephens Inc. Please go ahead.

Speaker 3

Hey, Good afternoon, everyone. Hi, Brady. Hey, Brady. Hey, I was just hoping to touch on just maybe utilization rates, Dan, you mentioned they remain sort of near historical low levels. Just wanted to get a sense for what that utilization rate percentage is and where that stacks up relative to this time in 2019?

Sure. To this time in 2019?

Speaker 1

Sure. We are Give you an idea of where we are as I pull out my date of the year because I don't want to misquote. So on the commercial side, end of twelvethirty one 'twenty, we were at a 26% utilization rate that dropped to 23% at the end of the first quarter And then just slightly under 23% as of sixthirty. And to give you some context, Normal for us and that tends to range anywhere from the 35% to 40% range. So that's The big delta is between kind of what's normal and it's drifted down a bit here the last couple of quarters.

Speaker 3

Got it. Okay. Thank you for that. And then I did want to ask just on you mentioned some of the investments that You've made on the expense side. And so I guess, you mentioned the MuleSoft partnership.

And so I wanted to just ask about the Nature of that partnership, are they helping you build APIs to allow other Fintechs or BaaS platforms to sort of Connect to you or is it or is like or is MuleSoft a BaaS provider with its own set of APIs that's allowing you to partner with Fintech? Just Help me sort of understand the partnership.

Speaker 1

Yes. Great question. MuleSoft is actually building What we refer to as the integration layer, which and then we'll work with us to build the APIs To allow that connectivity to be much more effective than what it is today. But they're actually the integration layer Company for us.

Speaker 3

Okay, got it. And then I guess just maybe on that, so is this kind of $63,000,000 or so in core expenses that the run rate which we should build off of moving forward or will there be some ebbs and flows there, Phil?

Speaker 4

Yes, Bertie, I would say there'll be some ebbs and flows. And I think we might have talked about this in the last quarter in terms of just looking down the road and Kind of year over year growth in expenses, taking the current quarter and annualizing it and looking For it to grow 4% to 5% from there, it won't be even. It's just because some of the spends will be in certain periods And some things will get capitalized and some things won't, but then reabsorbed into the run rate. So I We'd use that as a general view towards the future here in terms of what that number will look like In total expenses. And it will probably continue to be growth in those areas we Just reported as well related to both personnel costs as well as consulting professional type fees and things that are All kicked together in support of these varying initiatives.

Speaker 3

Okay, understood. And then just on the loan portfolio, could you remind us what percent of the loan portfolio is floating rate? And then what percent of that Floating rate portfolio is currently at floor levels.

Speaker 4

I think the answer to the first part of the question Continues to be somewhere between 25% 30% of the total portfolio. I don't know that I can tell you exactly What percentage is currently residing at the floors? I'd have to research that for you to give you the appropriate answer, Brody.

Speaker 3

Okay, Understood. And then just one last one, maybe for Dan. Just wanted to Get a sense from you guys as to how you're thinking about permanently repositioning the deposit base here. So Last cycle, you had an above average deposit beta and a big chunk of that was due to the time deposits, which you've run down here, similar to other Thanks. But are you also kind of thinking about shifting away from money market exposure?

Or how do you kind of get customers to maybe Stay more in transaction oriented accounts as opposed to money markets because the money markets can be pretty high beta as well.

Speaker 1

Yes. I think that I think the money market piece of the business will always be part of what we do given our Kind of the demographics of this market, particularly in the retail book. But I think the strategic answer to your question It's our ability to continue to drive small business and commercial relationships. And that's where We've got a tremendous amount of emphasis today and we know that that's by far the most valuable piece of what we can Create from a deposit book and the team is doing a solid job of that and but that's where we would be focusing our energy.

Speaker 3

Great. Thank you all for taking my questions. I appreciate

Speaker 1

it. Thank you, Rudy.

Speaker 0

And our next question will come from Eric Zwick of Boenning and Scattergood. Please go ahead.

Speaker 7

Good afternoon, guys.

Speaker 4

Hi, Eric. Hi, Eric.

Speaker 7

First, I just want to Check and make sure I heard something right from the prepared comments. Did you indicate that you thought that second quarter run rate for Mortgage revenue was kind of a good base to use for the second half of the year?

Speaker 1

You did hear that correctly. Yes.

Speaker 7

Okay, great. Thank you. And then in terms of the PPP loans with regard to the round 1, do you have the dollar figure of the remaining fees on that I may have missed that. I didn't see it on the slide.

Speaker 4

Eric, this is Phil. I don't believe that that particular number was on there. But Given the term of those loans and how close we are to working through that, there's probably Only a couple of $1,000,000 left of the fees that are related to round 1 PPP loans. The majority of the fees that are still yet to be Recognized or related to round 2, and I think that number is in our deferred account is around $19,000,000

Speaker 7

Okay. That's helpful. I appreciate it. And then, just curious as I was looking on Slide 6 at the waterfall table and kind of curious about the $3,500,000 build for the change in qualitative factors. Could you just provide any color to what changed within Those factors and then I think Phil you may have also said that you've added a new additional qualitative factor to the model and any color on that as well if I heard that correctly?

Speaker 4

Yes. Actually, Eric, we had added or adjusted some of those qualitative factors a couple of quarters ago That were related to trying to recognize the additional potential risk in predominantly the segments like the around certain industry segments, but we really didn't add that this quarter. We had added that before. So it might have sounded like we had here, But that wasn't the case. I think that the increase in the actual factors this quarter were due to some other concentration levels that hit us In a couple of places, I think might have been a couple of credits that popped through in the acquisition development construction portfolio, if I'm not mistaken, That bumped up the basis points that we assigned into that area relative to the size of that portfolio To the overall portfolio and to the way we look at it relative to capital.

So that That was really the genesis of that additional piece this quarter.

Speaker 7

That's helpful. Thanks, Phil. And then just last one for me, kind of Tying back with some of the earlier questioning on the loans and what growth may look like in the back half of the year and appreciate the color on the pipeline. Just curious if maybe you could add a little bit on the composition of the pipeline between kind of commercial and consumer from that perspective?

Speaker 1

Yes. Everything I talked about with regard to pipeline being level is all was all commercially related. The other kind of main consumer loan outside of mortgage that we generate are on the home equity side. And as you might imagine, given refinance Activity that portfolio has been under pressure from a balance standpoint.

Speaker 3

So

Speaker 1

the Pipeline going into the 3rd quarter is really level with what it was going into the 2nd quarter, give you and so still good momentum.

Speaker 7

That's helpful. Thanks for taking my questions this afternoon.

Speaker 1

Thanks, Eric. Thanks, Jared.

Speaker 0

This concludes our question and answer session. I would like to turn the conference back over to Daniel Schrider for any closing remarks.

Speaker 1

Great. Thank you. And thanks, everyone, for taking the time to participate this afternoon. We love to get your feedback On these calls, you can e mail your comments to irsandyspringbank.com. I hope you all have a great afternoon.

Speaker 0

The conference is now concluded. Thank you for attending today's presentation and you may now disconnect.