Citizens Republic Bancorp, Inc. Q4 2009 Earnings Call Transcript

| About: Citizens Republic (CRBC)

Citizens Republic Bancorp, Inc. (NASDAQ:CRBC)

Q4 2009 Earnings Call Transcript

January 29, 2010 10:00 am ET

Executives

Kristine Brenner -- Director, IR

Cathy Nash -- President and CEO

Charlie Christy -- EVP and CFO

Mark Widawski -- EVP and Chief Credit Officer

Brian Boike -- SVP and Treasurer

Analysts

Scott Siefers -- Sandler O’Neill

Terry McEvoy -- Oppenheimer & Co.

Eileen Rooney -- Keefe Bruyette & Woods Inc.

Operator

Good day everyone, and welcome to the Citizens Republic Bank Corp fourth quarter conference call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. (Operator instructions). It’s now my pleasure to turn the call over to Ms. Kristine Brenner. Please go ahead.

Kristine Brenner

Thank you and good morning. We apologize for the delay. Welcome to the Citizens Republic Bank Corp fourth quarter conference call. This call is being recorded and a telephone replay will be available through February 5. This call is also being simulcast live on our Web site www.citizensbanking.com where it will be archived for 90 days.

I have with me Cathy Nash, President and Chief Executive Officer; Charlie Christy, Chief Financial Officer; and Mark Widawski, Chief Credit Officer who all have comments to share with you this morning. Brian Boike, our Treasurer is also here to answer questions. After management concludes their prepared remarks, we will open the line up for questions from research analysts.

During this conference call statements may be made that are not historical facts such as those regarding Citizens future financial and operating results, plans, objectives, expectations and intentions. Such forward-looking statements are subject to risks and uncertainties, which include but are not limited to those discussed in Citizens’ annual and quarterly reports filed with the SEC.

Forward-looking statements are not guarantees of future performance, and actual results could differ materially. These forward looking statements reflect management’s judgment as of today and we expressly disclaim any obligation to update or revise information contained in these statements in the future.

Now, I’ll turn the call over to our President and Chief Executive Officer, Cathy Nash. Cathy?

Cathy Nash

Thank you, Kristine, and I also apologize for the delay. I appreciate those of you who have joined us today on the call. I will make some opening remarks, and then Charlie will take us through the performance details and Mark will cover the credit performance.

As noted, we ended the quarter with a loss of $64.7 million. This loss was well within our expectations as we continue to work through the cycle in the upper Midwest. Let me cover some key points for you. Our pre-tax pre-provision earnings were up $4 million over the third quarter to $34.5 million. This was despite a shrinking loan portfolio. In fact our loan portfolio declined by $1.2 billion in 2009 even though we approved $2.9 billion of new and renewing loans during the year. With our focus on small business, including our ranking as the number one SBA vendor in Michigan, that $2.9 billion reflects our continued commitment to lend to creditworthy borrowers.

Our net interest margin improved for the third quarter in a row to 313 basis points. Total direct expenses were flat from the third quarter, but salaries and benefits were down by $7.5 million as a result of the rollout of our strategic plan and corporate operating results. Our delinquencies are down. Our loans, 30 days to 89 days past due are at their lowest level in almost 3 years at less than 2%. Our watch lists has declined for the first time in eight quarters.

On the deposit side, we’ve had good growth during 2009. Our core deposits are up 13% over last year. In total, we've added 32,000 new clients. We have some of the best retention rates in the industry. I think this reflects our success in making sure we’ve stayed focused on our customers, despite the economic challenges. And although it's being an incredibly challenging year for banks we have a much stronger balance sheet on December 31, ‘09 than we did on December 31, ’08. Our allowance for loan losses as a percent of portfolio loans is 4.33% compared to 2.8% last year.

Our tier 1 capital ratio stands at 12.49% compared to 12.22% at the end of last year. And our tangible common equity ratio increased to 6.16% from 5.75%. We did announce that we are suspending our TARP preferred and trust preferred dividend. Charlie will cover the details of that and I'm sure we will touch on it in our Q&A session.

Let me now turn the call over to Charlie Christy who will take us through the details of our results.

Charlie Christy

Thanks, Cathy. The key financial highlights for the quarter and include a 13.1% increase in pre-tax pre-provision earnings and interest income was up 3.8%, net interest margin expanded 16 basis points after increasing 24 basis points last quarter, non-interest income was up, non-interest expenses were down slightly from last quarter, improved credit metrics include total delinquent loans were down, total non-performing assets were down, and non-performing loans were down.

From a balance sheet perspective, total loans were down $311 million from the third quarter, total commercial loans, commercial real-estate and C&I, were down by $196 million; while total consumer loans, mortgage, direct and indirect, were down by $115 million. Total average earning assets were down by $175 million primarily due to decreases in the loan portfolio and on a lesser extent decreases in the investment portfolio.

We continue to hold short-term liquid assets of over $700 million reflecting our focus on liquidity and maintaining a strong cash cushion. It should also be noted that this cash balance is sold to the Fed on a daily basis at only 25 basis points. During normal times this cash will be deployed in the loans earning a much higher yield.

The key driver behind the loan portfolio decrease is that we continue to see less demand from creditworthy borrowers. Despite the slower loan demand throughout 2009, we approved $738 million of new commercial loans, we renewed approximately $1.5 billion of commercial loans and we approved $683 million of consumer loans, so as Cathy noted that’s a total $2.9 billion for the year.

Total deposits were up $117 million from the third quarter, core deposits were down $70 million or 1.4% from last quarter or up $580 million or 13% from last year. The decrease during the quarter was due to fluctuations in seasonal public funds deposits. Excluding the public funds, our core retail and commercial deposits grew quarter over quarter. Time deposits were up $188 million. As we mentioned last quarter, we expected to have higher levels of CD maturities this quarter, which were repriced lower by approximately 200 basis points. We have good retention rates on these maturities and we also have extremely low non-maturing deposit attrition rates. Decrease in retail time deposits was offset by an increase in brokered CDs as we replaced CDs that were called in the third quarter.

Moving on to our pre-tax pre-provisions core operating earnings table included in our release, for the fourth quarter 2009 our pre-tax pre-provision earnings were at $34.5 million up $4 million or 13% from the previous quarter. The key driver for the increase was higher net interest income due to debt management, less non-accrual interest referrals [ph], CD repricing and continued improvement in loan pricing spreads.

Let’s review the key components of the income statement. Net interest income as already noted was up $3.1 million from the third quarter. Our net interest margin percentage came in very strong at 3.13%, up 16 basis points.

Total net charge-offs were $81.5, while our provision for loan loss was $84.2 million. Total net charge-offs were up from the third quarter by $10 million. We transferred $56 million of non-performing commercial real estate loans to held for sale and recorded $20 million charge on those assets. Excluding this action, our net charge-offs would have been down $10 million from the third quarter.

Total watch list loans were down for the first time in two years by $100 million from the last quarter. Total delinquencies were down $30.8 million or 16% from the third quarter and were less than 2% of total loans. This is our lowest level of delinquency since the first quarter of 2007. You should also note that total delinquencies from a year ago are down $135 million or 47%. That clearly illustrates a huge improvement in the key metric of future potential risk.

Total non-performing loans were down by $26 million from the third quarter. The MPL balance included $25.3 million of loans proactively moved to non-performing status prior to them becoming 90 days past due.

Non-interest income for the quarter was up $3.5 million from the previous quarter to $15.4 million; however, the third quarter included the net loss of $15.9 million from our debt exchanges. Adjusted for that net loss, non-interest income was down $0.4 million [ph] due to $7.9 million more in losses on loans held for sale and $3.5 million decrease in other income.

Non-interest expense for the quarter was down slightly to $83.2 million. We maintained lower operating expense levels to offset the elevated level of other real estate costs we are experiencing in this economy. As Cathy mentioned, our largest expense salaries and employee benefits was down $7.6 million or 20% from the third quarter. That included some adjustments for annual incentives as we align them with our overall operating results. In the first quarter 2010, this line item will increase. That leaves us to our capital adequacy and liquidity. Our tier 1 capitals were the highest amongst our peers at 12.49%; it’s $554 million above well capitalized minimums.

Our total risk-based capital at the end of the quarter was 13.89%, while our tangible common equity was 6.16% and our tier 1 common ratio was 8.44.

We continue to maintain a strong liquidity position and stable funding base due to our on-balance sheet liquidity sources which include $869 million of cash resources and significant untapped secured borrowing capacity.

I would like to take a minute to comment on the dividend suspension we announced in the release. We decided to suspend dividends on our trust preferred securities and TARP preferred stock. Dividends on these securities will continue to accrue in accordance with the respective terms. Although, we believe we have sufficient cash and liquidity to pay the scheduled dividend, in consultation with our regulators we have taken these actions to support and preserve our parent cash position in light of the current economic conditions. Deferral of these payments is expected to preserve $4.9 million of cash each quarter. The parent company had $150 million of cash resources at December 31. We will continue to reevaluate the deferral of the payments in consultation with our regulators and will consider reinstating the payment as soon as we can.

So just to summarize our capital liquidity position, we have plenty of cash and liquidity and our capital ratios remain very strong. We believe that we have enough capital to work through this current credit cycle and a good base to grow in the future. That said, we will continue to aggressively pursue any type of capital enhancing opportunities that are non-dilutive to our common shareholders.

I will turn over to Mark now for more insight on our credit quality. Mark?

Mark Widawski

Thank you, Charlie and good morning. Throughout 2009, our past watch and special loans credit review processes, as all of the results of our commercial real estate or re-sales confirmed that our highest degree of loss severity occurs in our land development and construction asset classes. As a result, and to better facilitate potential future asset dispositions, we moved the portfolio of $56 million non-performing land development and construction loans to held-for-sale. Based on recent disposition value appraisals, these loans were charged down 20 million. The market value of existing held-for-sale loans was also reduced $8 million.

We ended the year with non-performing held-for-sale loans of $65 million down from $75 million at year-end 2008. This treatment is consistent with our actions in 2006 and 2008 of moving assets with elevated loss severity and class disposition potential to the held-for-sale category. This action also aligned with our desire to reduce our overall exposure to investment commercial real estate.

During 2009, we reduced land development and construction loans by $119 million, a 27% reduction. Including income producing assets, our investment commercial real estate loans at the end of the fourth quarter totaled $1.8 billion, representing 147% of risk-based capital well below regulatory guidance.

Fourth quarter investment commercial real estate near-term delinquency of 2.6% compares favorably to 3.69% in the third quarter and 5.66% at year-end 2008. Total commercial real estate watch list loans declined both in dollars $64 million and as a percent of the portfolio in the fourth quarter. Non-performing CRE loans fell in both categories as well. These movements were primarily related to the movement of the loans to held-for-sale. Fourth quarter CRE net charge-offs of $41 million included the $20 million in adjustments on the loans moved to held-for-sale.

The C&I portfolio saw fourth quarter reductions in delinquencies watch, totals and non-performers. C&I delinquencies totaled $17 million at year end down from $57 million in December of 2008. Our enhanced credit delivery process in partnership with the efforts of our market teams drove our improvement in C&I delinquencies. Our C&I watch list was also down $35 million during the quarter as a result of performance upgrades to several automotive related credits.

As you will recall, we proactively reviewed our auto-related portfolio in Q1, 2009. That review resulted in downgrades based on the uncertainty facing the industry at that time. Our fourth quarter reviews confirmed our borrower’s 2009 performance and 2010 forecast based on current release schedules warranting the upgrades. Our C&I net charge-offs of $23 million in the fourth quarter, up from $20 million in the third quarter. This total includes five charge-offs which accounted for 70% of our $23 million in total charges. These credits had all been previously reserved and the losses were not industry-specific and reflect declines in asset values expected at this stage of the credit cycle. Throughout 2009, we have focused our special loans and asset-based lending groups, and in the fourth quarter our newly formed CRE special assets team on reduction in criticized assets.

During the year, we reached successful resolution on over $200 million of watch list credits. Our special loans ORE team moved over 90 properties during the year, representing $18 million in book balances with a total net loss of $360,000, which related to one ORE property sale. These results confirmed that we are marking our assets properly, and on a discreet basis are able to liquidate our positions without significant additional negative capital hits.

From a velocity perspective, at the end of 2008, we had zero commercial ORE properties under contract versus 16 under contract at the end of 2009. This year-over-year increase in the pipeline reflects an improvement in market interest on the commercial side of our portfolio. Our consumer portfolios fourth quarter percentage decline in delinquencies is an atypical seasonal pattern but in line with the direction being broadly reported for these asset classes. Our roles to delinquent status slackened at the trough to peak rise in 2009 delinquencies was 29 basis points less in 2009 than in 2008.

The consumer-related results are encouraging at this stage of the credit cycle given the challenging Michigan employment environment. Our December consumer delinquencies were 10 basis points lower than September and 25 basis points lower than December 2008. The residential mortgage portfolio exhibited the greatest improvement in delinquencies. We refreshed FICO scores on the portfolio in November with no material deterioration in the results.

The direct consumer portfolio, primarily home equity loans, fourth quarter delinquency rate of 2.14% was up from 1.87% in September. The home equity portfolio continues to reflect our conservative underwriting standards and absence of brokered originations. Residential non-performing loans increased $19 million in the fourth quarter as a result of the time lag six to nine months in workout active created by our participation in the spring moratorium on residential foreclosures.

Direct and indirect NPLs were flat quarter over quarter. Total consumer loan net charge-offs were down $1 million in the fourth quarter, with the increased indirect loan charge-offs reflecting typical seasonal increases associated with the sale of the units we normally see in the fourth and first quarters.

As Kathy and Charlie indicated, we added to the reserve this quarter, and the allowance for loan losses increased our coverage of NPLs to 72% from 68% at the end of third quarter. The allowance represents 143% of net loans charged off in 2009, our highest year of charge-offs ever. The allowance for loan loss coverage for loans not specifically reserved represents 169% of remaining NPLs.

Cathy, back to you.

Cathy Nash

Thank you, Mark. As Mark noted, we continue to execute on our strategy of actively managing our credits and assessing risks based on a forward-looking view of the economic environment facing our clients. We plan and successfully execute prudent workout strategies and seek to sell assets where it does not dilute our capital. We conduct detailed analysis of our portfolios performance with an eye on national and Midwest trends and the unique factors facing Michigan, including employment levels. Our focus on portfolio management combined with our clients’ improving performance have resulted in lower delinquencies, a reduction in criticized credit and reduced NPLs.

We started 2010 with our percentage of delinquent loans 47% lower than at the beginning of 2009. Our diligent credit underwriting, monitoring, risk rating and loan workout practices will continue as priorities as we manage through the next stage of the credit cycle.

I continue to be pleased with the progress the bank has made. Our deposits have grown. Our expenses have been tightly managed. Our margin has improved. We continue to lend to creditworthy borrowers. We remain focused on our approach to credit. We are steadfast in our push to profitability. We believe and have demonstrated the strength of our liquidity position despite the decision to stop paying dividends and we look forward to being able to pay them again as soon as possible.

Well there are some who might not believe that this progress is possible from the Michigan based bank in this economic cycle, we believe our continued demonstration of strong credit management will get us through 2010 and help position us for a profitable future. It is an unfortunate situation with our dividend announcement. We recognize what that means to our common and preferred shareholders. My number one goal is to continue to focus on our fundamentals and to pay those dividends as soon as possible.

This concludes our prepared remarks, and now I would like to open up the line for questions.

Question-and-Answer Session

Operator

(Operator instructions) We will take our first question from Mr. Scott Siefers from Sandler O’Neill. Please go ahead.

Scott Siefers -- Sandler O’Neill

Good morning everybody.

Cathy Nash

Hi, Scott.

Scott Siefers -- Sandler O’Neill

I just got a few questions, and I guess by all accounts in your guys prepared remarks and in the press release, the numbers suggest that there would not have been any issues in your ability to pay on those instruments. So it certainly seems that the decision came from the regulators as opposed to you guys. Are there any assurances that you guys can give to us that the regulators or you are not seeing something that we don’t outwardly from the numbers?

Cathy Nash

Scott, this Cathy and I think we have demonstrated, and gosh, by the 22 pages of our press release. We put an awful lot of information out there. We tried to be very transparent with our numbers. As we look at 2010, certainly from a credit perspective, we don’t see a lot of total improvement over 2009, but for different reasons we have been pretty vocal about the level of delinquencies we are seeing, a significant decline over where we started 2009 and we have continued that trend. So what we see in 2010 is we just got to work through what is still there. We still will see some stress within certain sectors of our portfolio as we would have expected, and I think Mark alluded to those. From a liquidity perspective, and certainly Charlie or Brian can jump in here, we believe when we’ve continued to demonstrate that we are good shape. So I think with the transparency of our numbers in our results that kind of speak for themselves and Charlie or Brian, would you want to add anything?

Charlie Christy

I think that’s clear. I think our credit statistics, as we said before, we feel we are in a plateau range in the non-performing and we expect to have charge-offs equal to or higher than 2009, and we are working through the latter part of the credit cycle, and we have ton of parent cash, and we have a lot of liquidity on balance sheet and access to other borrowing sources. And so you see the same fundamentals that our regulators see, and so I don’t think there is any think underneath those.

Scott Siefers -- Sandler O’Neill

Okay. And then I guess just to follow up on that one. I'm not sure how much you'll be able to see, but since it does outwardly appear it was driven more by regulators than anything else. In your conversations with your regulators give any sense for whether they understand that by preventing you from paying they might inadvertently be sending a message to other stakeholders that there is a capital and liquidity concern when in fact none exist based on the empirical data.

Cathy Nash

Scott, I would never presume to speak for what our regulators believe. We certainly have reviewed all the information with them, and in consultation as required. They needed to make the right decision that they believe that was important for our bank and I think apparently for the state of Michigan. Whether we personally agree with that or not, or we could demonstrate other the decision was made and we will obviously support that and make that happen.

Scott Siefers -- Sandler O’Neill

Okay. And then I guess just if I can move to the capital side for just a second; so some other institutions have engaged in -- like a swap that moves the TARP preferred to trust preferred status, and they can get the accounting gain along with that movement. Is that something you guys would potentially consider and then does the payment suspension, would that impact your abilities to do something like that?

Charlie Christy

I don’t think the payment suspension impacts it at all. We are in active dialogue with the US Treasury.

Scott Siefers -- Sandler O’Neill

Okay, all right. How about -- does the payment suspension -- that would have no bearing on your ability to do, like FDIC deals or pursue other transactions or anything like that?

Charlie Christy

That’s fair question. As I have always said before that has and always will up to our primary regulators whether or not we are able to bid on that.

Scott Siefers -- Sandler O’Neill

Okay. What’s the interest level at this point in doing like FDIC assisted transactions?

Cathy Nash

Well, Scott, I think we need to make sure that, as I mentioned, our number one focus is to focus on our fundamentals and get them stronger, even though I think they are fairly strong to begin with. We look our problems pretty squarely in the face and talk about them pretty openly. But I think our number one focus as a company is got to make sure we are continuing on a quarter-by-quarter basis to prove ourselves out of this to all the constituencies that matter including our shareholders but also including our regulators.

Scott Siefers -- Sandler O’Neill

Then moving I guess I wanted to ask another thing on the liquidity. So the parent company cash of $115 million that you guys alluded to in the press release and your comments, that’s the same as holding company cash, is that correct?

Charlie Christy

Yes.

Scott Siefers -- Sandler O’Neill

What are the quarterly expenses or costs at the holding company level?

Charlie Christy

Let’s see. Well, it was – of the 4.9 over [ph] dividend, it is about 22 or 23 a year, but we probably better call them another $3 million or $4 million. It is another $5 million. So we have normal expenses about $5 million a quarter.

Scott Siefers -- Sandler O’Neill

Okay, all right. And then finally I guess on the -- actually I think that should do it. Okay, thanks a lot.

Cathy Nash

Thank you, Scott.

Operator

We will take our next question from the line of Terry McEvoy from Oppenheimer. Please go ahead.

Terry McEvoy -- Oppenheimer & Co.

Thanks, good morning.

Cathy Nash

Hi, Terry McEvoy.

Terry McEvoy -- Oppenheimer & Co.

Hi. Just a hypothetical situation; if I looked out into, say, the first quarter of 2011 and just assume credit costs look like they did in 2007, get rid of a fair amount of these credit related non-interest expenses, the company then, again in this hypothetical situation, would be making money. So if that was the case, let’s say you had four payment, four quarters where you have not been paying the dividend if the liquidity position was where it is today would you simply be able to then not have to go to the Fed because you were profitable, simply repay those dividends and then this whole issue of missing the dividend payment would then be a non-event.

Cathy Nash

Terry, I would tell you directionally I agree with everything you’ve said. I don’t think it is technically quite that easy because of SRO 9-4 [ph] we have to meet with our regulators and determine that dividend payment on a quarterly basis. So when you factor that in theoretically, yes, I agree with everything you said. But I don’t think the mechanics are quite that simple.

Terry McEvoy -- Oppenheimer & Co.

Is SRO-4, is it simply making money versus losing money or is it still you have to talk to the Fed every time you are about to make that payment despite quarterly gains or losses.

Charlie Christy

Fair question. So the SRO 9-4 was published last March. Basically our Board and us, it’s our responsibility to evaluate all types of factors. There is like three pages of factors that they layout related to your credit quality, outlook and the future, all kinds of things like that. So that’s why Cathy is saying it’s not quite that easy and simple. But I would say that we look to getting back to profitability in 2011, and we look to that – once we get back to that point we feel that we would be able to have the fundamentals of our balance sheet and everything else in a position where we would start paying back the dividend. Again, they all have to be in line with back to that point. That’s what we are good at try to move as quickly as possible to get to.

Cathy Nash

And that’s also what really quite frankly, Terry, we’ve been tracking to is we’ve looked at our results against our stress testing, that is where we have been continuing to track or better every quarter.

Terry McEvoy -- Oppenheimer & Co.

Then Charlie, you said earlier no additional need for capital, but you will look at something non-dilutive. And on that first point, have you essentially looked at your internal capital needs stressed at the balance sheet and you are saying right now today you feel the company would not need to raise additional common equity based on your analysis.

Charlie Christy

Yes.

Terry McEvoy -- Oppenheimer & Co.

Okay. And then the last question, and I am looking at your presentation from last December and I think Charlie you said charge-offs will be equal or higher in 2010 versus 2009 and then expect a dramatic drop-off in charge-offs in 2011. Do you still think that’s the case and then also I believe at that presentation you talked about the releasing of reserves. Could you provide an update on when you see or if you see that happening and when?

Charlie Christy

Yes, so – the answer to it is that we would definitely see the charge-offs where we think they are and nothing has changed there, 2011 nothing. The point of view hasn’t changed there. The potential release of reserve all depends on what happens to your non-performing loans. So there always is that caveat related to that. But if they proceed on the direction that they seen to have started on, we feel that the latter part of 2010, we might have the ability to release some reserves. Let me finish real quick. And back to the capital thing, I think it’s important that I truly believe that we have the capital we need to get through this credit cycle. But it is prudent for us to always pursue non-dilutive type capital transactions in order for us to continue to build that extra cushion and strengthen the balance sheet. So if those come available to us, like CPP to TRAPs and/or other things we can do, we will pursue those aggressively.

Cathy Nash

To add to Charlie’s comment, I think one of the reasons we are looking at those things is because credit cycles are not straight-line trajectory where we have been tracking to or better than the numbers we thought we would be hitting, and this is not a smooth path to perfect profitability. There is going to be some unexpected things lumps along the road. We just want to make sure we are prepared for that and that part of the capital planning that we do.

Terry McEvoy -- Oppenheimer & Co.

Thanks everyone.

Operator

We will take our next question from Eileen Rooney from KBW. Please go head.

Cathy Nash

Hi, Eileen.

Eileen Rooney -- Keefe Bruyette & Woods Inc.

Good morning, everyone.

Cathy Nash

I think you meant Eileen.

Eileen Rooney -- Keefe Bruyette & Woods Inc.

Close enough, I take what I get. Just one follow-up question related to the regulators, are you under any other regulatory actions?

Cathy Nash

No, we are not.

Eileen Rooney -- Keefe Bruyette & Woods Inc.

Okay. Then a question of the margin, obviously part of that expansion this quarter was related to getting rid of the trust preferred and sub-debt, just wondering what the ability is going forward to reprice down time deposits, and what our outlook is for the margin?

Brian Boike

Hi, Eileen, this is Brian. We at the end of the third quarter and throughout the fourth quarter had the opportunity to reprice a lot of our retail time deposit book and those rates came down from 4% range to 2% or less. We are mostly through that now. So you may see a little residual benefit in the first quarter, but not the same kind of benefit we’ve had the last two quarters. Going forward, we think our margin maybe consistent with fourth quarter, maybe some additional lift due to continued loan pricing discipline, maybe offset by the higher amount of liquidity that we are carrying.

Eileen Rooney -- Keefe Bruyette & Woods Inc.

Okay. All right. That’s all I had.

Cathy Nash

Thank you, Eileen. Thanks to you.

Operator

There appears to be no other questions in the queue.

Cathy Nash

Thank you very much. We appreciate it. As usual if you have follow-up questions or comments, please feel free to contact us directly. Thank you very much for your time. Have a great Friday.

Operator

This concludes your conference for today. You may disconnect at any time. Please have a nice day.

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