Good day, ladies and gentlemen, and welcome to the Ameren't Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will be given at that time. As a reminder, this conference call is being recorded. I now like to introduce your host for today's call, Ms.
Louarazzi, Investor Relations Officer. You may begin.
Thank you, operator. Good morning to everyone on the call and thank you for joining us to review Amarin Bancorp's 2nd quarter results. With me this morning are Miller Wilson, Vice Chairman and Chief Executive Officer Al Paraza, Co President and Chief Financial Officer and Miguel Palacios, Executive Vice President and Chief Business Officer. Before we begin, note that the company's press release, comments made on today's call and responses to your questions contain forward looking statements. The company's business and operations are subject to a variety of risks and uncertainties, many of which are beyond its control, and consequently, actual results may differ materially from those expressed or implied.
Please refer to the cautionary notices regarding forward looking statements in the company's press release. For a more complete description of these and other possible risks, please refer to the company's annual report on Form 10 ks for the year ended December 31, 2018, as well as to subsequent filings with the SEC. You can access these filings on the SEC's website. Please note that Amarant has no obligation and makes no commitment to update or publicly release any revisions to forward looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations. You should also note that the company's press release, earnings presentation and today's call include references to certain adjusted financial measures, also known as non GAAP disclosures financial measures.
Please refer to the back of the company's recent earnings presentation to see the reconciliation of each non GAAP financial measure to its most comparable GAAP financial measure. I will now turn the call over to Mr. Wilson.
Good morning, and thank you for joining Amarin's Q2 2019 earnings call, our 2nd earnings call since the IPO. On today's call, we'll discuss Amerant's results for the first half of the year and then touch upon our business strategies and what we're looking forward to in the second half of twenty nineteen. I'll begin with our Q2 2019 highlights, and then Al will review our financial performance in greater detail. After our prepared remarks, Al, Miguel and I will address any questions. Starting on Slide 34, we have a summary of our performance for the quarter.
We made significant progress this quarter on our new strategy as a standalone company. We continued our efforts to drive shareholder value, reporting a 23.4% increase in net income over the Q2 of 2018. This quarter, we continued executing on our relationship focused strategy, remixing our loan portfolio towards higher yielding, lower risk domestic loans, while maintaining asset quality and increasing our domestic funding from core deposits. We will continue to execute on these strategies with the goal of obtaining a greater share of wallet from new and existing customers by delivering the high touch service that we want our customers to associate with the Amarant brand. Speaking of our brand, in April, after many months of hard work and preparation, we successfully launched Amarant as our new brand across all our markets.
Our buildings and branches as well as digital platforms now bear Amarin's new vibrant logo and customer centric meant for you tagline. We will continue to build brand awareness in this coming quarters. Most notably, we achieved a number of operational efficiencies that will drive profitability in the coming months. After many months of streamlining our operations and shifting away from non core businesses, we will migrate to a single segment in our financial reporting, which will be reflected in our quarterly report on Form 10Q. This is a direct result of our efforts to simplify how we manage our business.
On the profitability front, earlier this month, we announced the redemption of $25,000,000 of our 2 most expensive tranches of trust preferred securities, which is expected to occur during the Q3. These redemptions will reduce our annual interest expense by approximately 2,600,000 dollars and improved net interest margin by approximately 3 basis points in the months following the redemption. Our remaining $26,800,000 of the 8.9 percent fixed rate trust preferred securities is callable in whole or in part, which may be an opportunity for capital deployment. Furthermore, Amarin was added to the Russell 2,000 Index in June, which will bolster our recognition in the capital markets and among investors, including those tracking this index. On Slide 4, our net income for the quarter was relatively flat from the Q1, but 23.4% over the same quarter last year.
On an adjusted basis, excluding the spin off costs incurred in the Q2 of last year and the restructuring costs incurred this quarter, the improvement over the same quarter last year was 6.4% and from the prior quarter was 8.7%. Our return on assets reached 0.66 percent or 0.77% on an adjusted basis, and our earnings per share of $0.30 or $0.35 on an adjusted basis, outperforming market expectations. Al will explain the non GAAP adjustments and provide more detail on the results shortly. Our credit and asset quality remained strong this quarter, leading to a release from the allowance for loan losses of 1,400,000 dollars primarily due to improving quantitative factors in our portfolio. Nonperforming assets as a percentage of total assets remained consistent year over year, but increased by 15 basis points from the Q1 due to one relationship totaling $11,600,000 being placed in non accrual status in June of 2019.
And now I will turn the call over to Al, who will go over the quarter in more detail.
Thank you, Miller. Good morning, everyone. Before we move on to the loan portfolio slide, Slide 4, I would like to discuss the highlights in our balance sheet this quarter. On the asset side, total loans this quarter grew by $71,300,000 or 1.3 percent, partially funded by the investment portfolio reduction of $50,700,000 or 3%. This resulted in asset growth of $24,500,000 or just 0.3%.
As far as our funding, we were able to grow domestic deposits by $51,000,000 this quarter. This was offset by the decline in international deposits of $120,000,000 with the remainder being funded by the increase in Federal Home Loan Bank advances of $55,000,000 or 5.1 percent increase. Our stockholders' equity increased by $27,600,000 or 3.5 percent. Net income contributed $12,900,000 of this increase with the balance attributed to comprehensive income stemming from higher market valuations in our available for sale investment portfolio. So if we now move on to Slide 5, we can see some of the movements above in greater detail.
In the Q2, loans grew $78,300,000 or 1.4 percent to close at 5,800,000,000 We experienced net growth this quarter in the Texas and New York markets of $67,000,000 $37,000,000 respectively. In Florida, we experienced a net decline of $36,000,000 primarily due to the planned runoff of our non relationship shared national credit or SNCs and Latin American Financial Institutions loans, FIs. Total loan production this quarter was approximately $600,000,000 Compared to the Q2 of 2018, our loan portfolio decreased 6.5%. This decline was caused by the above mentioned planned reductions. Since June 30, 2018, we have reduced the non relationships mix and foreign FI loans by $420,000,000 $347,000,000 respectively.
The lower interest rates this year allowed us to sell many of these loans at favorable market prices as demand was strong for assets tied to 3 month LIBOR. In this line, I am pleased to announce that presently, Amarin does not have a meaningful exposure in foreign FI or non relationship SNCs with only $5,000,000 $64,000,000 respectively. On the other hand, as part of our strategy to focus on domestic loans, our domestic excluding non relationship SNCs grew 8% over the last 12 months. As we discussed last quarter, these reductions and runoffs align with our broader strategy to prioritize profitability from core relationships. From a product standpoint, the reductions were partially offset with higher yielding, lower risk domestic loans.
Order occupied commercial and multifamily residential commercial real estate loans saw a year over year growth of $182,000,000 or 28% and $110,000,000 or 13% respectively. Domestic loans now comprise 96% of Amarin's current total loan portfolio. Finally, as we continue to execute on the relationship driven business model, our teams are also working to capture a greater share of our borrowing customers' deposits and wealth management businesses. Moving on to Slide 6, We continue to experience strong credit quality and the company was able to release $1,400,000 from its allowance for loan losses this quarter. This release was largely driven by continued improvements in the quantitative factors of our commercial real estate and commercial loan portfolios, which were partially offset by additional reserve requirements from one relationship, additional provisions associated with the sunset of the company's credit card product and loan growth.
Non performing assets increased $12,000,000 in the latest quarter and totaled $33,000,000 at June 30 this year. Non performing assets to total assets were 41 basis points, up from 26 basis points at March 31 and flat year over year. This resulted primarily from the downgrade to substandard and non accrual of $11,600,000 of mostly special mentioned loans to a South Florida borrower. These loans are current under payments and secured by residential, owner occupied commercial property and CRE in South Florida and business receivables. Management proactively placed these in non accrual as the customer's business cash flows from sales in Puerto Rico continue to be adversely affected by the effects of hurricanes Maria and Irma in 2017.
Despite this downgrade, the ratio of non performing assets to total assets remained flat year over year. Furthermore, several unrelated loans consisting of 2 commercial loans totaling 3,100,000 dollars and 2 owner occupied commercial real estate loans totaling 2,200,000 As a result, special mentioned credits declined by a net of $4,000,000 in the second quarter and stand at 21,000,000 dollars Turning to Slide 7. You can see that our loan yield expansion continued into this quarter driven by the replacement of the previously mentioned non relationships mix and foreign FI loans with higher yielding domestic loans. The average yield also increased notably year on year due to the loan mix and higher market rates during 2018. While our loan yields have improved considerably over the past year, we will continue to build on this momentum.
Our investment securities yield declined by 13 basis points from the previous quarter, primarily as a result of increased pay downs in the SBA portfolio. Investments were slightly down from $1,700,000,000 at the end of the first quarter to $1,650,000,000 in the 2nd quarter, primarily due to the sale of $91,000,000 of municipal securities and the aforementioned SBA paydowns. Moving on to Slide 8. Total deposits at the end of this quarter were $5,800,000,000 down 1.2% compared to the prior quarter and down 8.5% compared to the end of the Q2 of 2018. This year over year decline was driven by the decrease in international core deposits, which dropped 4.1% and 13.7% respectively compared to March 31 this year and June 30, 2018.
As living conditions in Venezuela remain difficult, our Venezuelan resident customers continue to rely on their savings to fund daily living expenses. Our annualized international deposit runoff rate was 15% this quarter. As we expect this runoff to continue into the next few quarters, we are actively working to increase our share wallet of select high net worth international customers with whom we maintain strong long term relationships. We continue to shift our focus to lower cost funding and more precisely to growing Amarin's domestic relationship accounts and core deposits. While domestic demand deposits are more expensive than international demand deposits, these domestic customers have higher growth potential and present better opportunities for growth for cross selling.
Ameren's other products and services, especially wealth management. At the end of this quarter, 52% of our deposits consisted of domestic accounts, up from 49% a year ago. 1 of our main focuses in our efforts to increase core deposits is our commercial customer base. Year on year, the total deposits from our real estate and commercial businesses increased by $88,000,000 or 22.5%. This quarter's decrease in customer CDs and our relatively flat domestic deposits resulted from our strategic decision to decrease the promotional interest rates we paid.
We continue to focus our efforts to retain customers with higher probabilities of renewal at lower than market rates. As a result, we were able to renew approximately $34,000,000 about 27% of our total renewals in the 2nd quarter at rates that were lower than the highest rates paid in our markets. Turning to Slide 9. Net interest income was $54,000,000 in the 2nd quarter, down 3% from the last quarter and down 0.4% from the year ago period. This quarter's lower net interest income was primarily due to the lower average loan balances resulting from the reduction in non relationships mix as well as higher domestic deposit costs.
The international deposit runoff caused our cost of funding to increase as we replace those funds with domestic relationship money market deposits at rates competitive with peers. In the Q2 of 2019, $234,000,000 of our relationship money market deposits as well as $121,000,000 of time deposits, which were booked in 2018 or earlier at lower rates repriced at a higher cost. 2nd quarter NIM declined by 4 basis points compared to the Q1, primarily driven by higher funding costs. We have been taking steps to control NIM compression in the coming quarters by establishing floors on term sheets, on new loan originations, decreasing rates on time deposits and increasingly relying on pricing intelligence, focusing on relationship accounts to stabilize cost of funds, rationalizing special rates paid to top customers and shifting towards shorter term professional funding. Earlier this month, we took an important step towards improving our NIM when we announced the redemption of the coming weeks of the $25,000,000 of our 2 most expensive trucks with an average cost of 10.4%.
When completed, the redemptions will reduce our annual interest expense by approximately 2,600,000 dollars and improve our NIM by approximately 3 basis points. From a longer term view, our 2nd quarter net interest margin has improved significantly from the year ago quarter, up 15 basis points, primarily due to our continued efforts to shift towards higher yielding domestic loans. And while we are pleased with the steady progress we've made to drive net interest income and margin improvement over the past year, market pricing pressure and compression will remain a headwind if interest rates continue to decline. Now turning to Slide 10. Net interest income of $14,000,000 was up nearly 7% from the prior quarter.
However, it was down almost 6% from the prior year's Q2. The 2nd quarter increase was driven by a 900 and $79,000 gain on the sale of municipal bonds in the quarter as well as a $255,000 increase in deposit and service fees due to higher wire transfer and treasury management fees. This quarter, as a result of the spin off, we also recognized significantly higher debit card interchange fees as we are no longer subject to the Durbin amendments limit. We now expect an annualized increase in debit card fees of approximately $870,000 Fees for services provided to our former parent and its subsidiaries declined by approximately $600,000 in the first half of the year and the services have been largely terminated. Our foreign customers trading in certain Venezuelan securities were halted by U.
S. Government sanctions imposed in February 2019. This contributed to the year over year decrease in non interest income as brokerage and management fees of 3,700,000 dollars were down almost $690,000 from the Q2 of 2018. Additionally, the Q2 of 2018 benefited from a gain of $882,000 from the early termination of Federal Home Loan Bank advances. Amerenage total assets under management increased to $1,800,000,000 in the 2nd quarter, up from $1,700,000,000 at the end of the first quarter, primarily on improved market values.
We also continue to focus on leveraging our wealth management platform to grow this side of our domestic business. On Slide 11, 2nd quarter non interest expense was $53,000,000 a slight increase over the prior quarter and flat year over year. 2nd quarter 2019 non interest expense included $2,700,000 of restructuring expenses, which consisted of $1,800,000 in costs associated with the rebranding to Amarin and $900,000 of severance costs associated with workforce reduction during the quarter in connection with our transformation efforts. As we have discussed in previous quarters, we continue to focus on rationalizing our personnel expenses as reflected in the reduction of 50 FT feet feet feet feet feet feet feet feet feet feet feet feet feet feet feet feet feet Es this quarter for a total reduction of 101 FT feet feet feet feet feet feet feet feet feet feet feet feet feet feet feet feet feet feet Es or 11% in the last 12 months. Each of the first two quarters of 2019 included amortization costs of the restricted stock granted to select management and staff in December 2018 in connection with our IPO.
The total amortization for 2019 is approximately $6,000,000 or $1,500,000 per quarter through 2019, declining to an estimated cost of $2,700,000 in 20.20 $1,100,000 in 2021. This amortization costs largely offset the personnel cost savings we have achieved this year resulting from the work force reductions announced in December 2018 and additional reductions during the 1st and second quarter. Moreover, the cost savings from the reduction of 50 FTEs in the second quarter is not yet reflected in the results as most of the terminations took place later in the quarter. On the rebranding, we expect to incur approximately $1,800,000 in additional rebranding expenses in the remainder of 2019. In addition, we spent approximately $1,200,000 in rebranding CapEx, which will be amortized in future periods.
On Slide 12, we see that non interest expense adjusted for the 2018 spin off and 2019 transformation costs was $50,200,000 down almost $1,600,000 from the prior quarter and up $1,600,000 from the Q2 of 2018. Again, the 1st and second quarters of this year include the aforementioned IPO grant amortization costs. Turning to Slide 13. While we continue to be asset sensitive, our asset sensitivity will be reduced by the decrease in long term brokered CD fundings as well as from our strategic exit from non relationship SNICs and our focus on increasing core deposits. We have borrowed that a rate drop of 25 basis points, which management believes is likely to take place during the Q3, will impact our net interest income by approximately 5,000,000 or 2% over the following 1 year period.
Now I hand it over back to Miller to conclude our prepared remarks.
Thank you, Al. Moving on to our last slide. Our goals for 2019 are largely unchanged from what we shared last quarter. We remain totally committed to executing our strategy, strengthening our relationship driven business model, building on our rebranding to Amarant and an unwavering focus on improving profitability and capital returns. With that, we'd be happy to take any of your questions.
Operator, please open the line for Q and A.
Thank you. First question comes from Michael Rose from Raymond James. Your line is open.
Hey, good morning everyone. How are you?
Good morning.
Good morning, Michael. Maybe we could start on expenses.
I know the 50 FT feet feet feet feet
feet feet feet feet feet feet
feet feet Es kind of came off towards the end of the quarter.
How should we
think about the savings from the net reduction there that related to the retirement programs? And outside of that, what other levers do you have to pull on the cost side to offset some of the expected margin pressure from rate cuts? Thanks.
Yes. Well, I think as we explained, Michael, I mean, the full effect of our expense reductions is not clearly evident yet because of some of the expenses restructuring costs. In the case of the personnel costs, I mean, if we excluded the severance costs and we can see a savings of $500,000 even though we have that IPO amortization of $1,500,000 So you can already see dollars So you can already see essentially a $2,000,000 savings if you compare this quarter versus the Q4 of last year when we embarked in the reduction. And as you rightly pointed, the reductions, the 50 FTEs took place basically in the month of June. So that's not baked into the numbers yet.
So we expect that the full effect of staffing reductions in this calendar year from basically the 101 that we've already mentioned have taken place already. We expect that savings to be roughly $10,000,000 But then again, the $6,000,000 of the amortization is going to eat into that. And we have to a certain extent, even though we kind of reduced our cost of living adjustments that we made to our staff. That's going to eat into it a little bit and insurance costs are always something that can also eat into it somewhat. What we expect is that really that full amount of savings, especially when you see the amortization of the IPO grant going down to less than half of what it is this year, we expect to then start seeing a significant reduction in personnel cost next year, net personnel cost as well as a total of other operating expenses.
So we really expect we don't really expect a significant change in the operating expense run rate. The rest of the there are some things that we're looking at, but we don't expect a significant reduction this year, but we'll start seeing that in Q1 of next year as the effect of the amortization and the full effect of the reductions takes place in that year. Michael,
go ahead.
Okay. So I'd like to add that the staff reductions that we show are 50 in this quarter. Looking forward, we are still in the process of reviewing our operations, the activities that we do and trying to simplify as we do this transformation of the bank. So, we expect the number of FTEs to continue to decrease. We don't know the final number because we're still working through these processes.
But we're not done yet in the transformation of our operations process.
Yes. First is in the Q4 and we've said this before many times, there's going to be bumpiness along this road in terms of being able to see the savings materialize. We will have 4 new branches coming in line. We've said that before at the end of the year. So we will have some staffing increases associated with those branches.
But probably largely that the effect of those additional staffing for the branches will probably be offset by some of the additional reductions that we're working on presently. And then again, the branches will also start helping us with the domestic core deposit attraction.
That's great color. So I guess to sum it all up, I mean, maybe we should think about expenses as kind of flattish in the back half of the year from second quarter run rate maybe down a little bit, but we'll really see the net reduction start to come in next year. Is that a good way to sum it up?
That's fair.
Okay. And then maybe just moving to the balance sheet, understanding that the foreign loans are essentially down to nothing at this point, you produced nonrelationships pretty significantly. Could we actually begin to start to see net loan growth at some point over the next couple of quarters?
Hi, Michael, it's Miguel. How are you? Well,
as you can see,
the production has been there between core loans. We have a fairly modest second quarter. We believe we're going to still see some payoff on 3rd and 4th quarter. And also, we're seeing the pipeline to start to increase. It is typical on this time of year, we will see the curve more pronounced to the 4th quarter.
So the trend should be similar to what we have done on the 1st semester with a slight increase to the end of the year. Next year, then we have cleaned out the house with those foreign and SNCs. Our main focus on developing the relationship will help us increase the loan production and the net growth during the 1st semester of 2020.
Okay. That's very helpful. And then maybe just finally for me, the forward curve is obviously pricing in more than the 25 basis points. I see the on the slides, the sensitivity for 50 basis points. But if we get more than that, what does the sensitivity curve look like?
And maybe if you can give some color on what you're assuming for deposit attrition, costs, etcetera? Thanks.
Yes. I mean, there's no doubt that the new rate outlook is going to be a headwind. I mean, we've made a lot of improvement in our NIM the last 3 or 4 quarters. And we had originally set our target to reach the 3. But this quarter, we saw a reduction in the NIM of 4 basis points from $296,000,000 to $292,000,000 And most of that was really from having to replace our foreign deposits with more expensive domestic deposits.
But I think it's still early. I mean, we see we probably see the rate decline this month. We're still unsure if something else happens this year. I mean, some people think it's going to happen perhaps at the end of the year. But in any event, what we modeled and it's in one of the slides, what we modeled is roughly a $5,000,000 reduction in net interest income for every 25 bps of reduction.
But as we mentioned before, there's some bright sides in our balance sheet with this the TruPS redemption we're going to do shortly. And we also have the opportunity for the other TruPS redemption sometime in the future. Because again, if we're not growing significantly and we start to continue to have strong results and we continue to accrete capital, we're going to have some currency to pay that off. So I mean, we're not throwing in the towel yet in terms of the NIM. We're doing a lot of things to try to combat that compression.
Okay. Thanks for all the color.
Our next question comes from Michael Young from SunTrust. Your line is open.
Hey, good morning, everyone.
Good morning, Michael.
I wanted to ask maybe another question just on the deposit side and deposit pricing. It looks like the CD book is at about 2.2% now in terms of effective cost. When do you think that that will start to repricing lower? I would just think that the market rates would be there or lower at this point, so there may be some leverage there? And is that being offset by something else, maybe money markets or something else moving higher?
Yes. A lot of that the increase in the cost of the CDs this quarter is really the renewals of longer term CDs that were maturing this quarter. We were remember, we've always said we were somewhat asset sensitive and a lot of that came from the fact that we were attracting some longer term money. So as some of that longer term money, which was put on when before several years ago at lower rates is repricing. But we are actually we have actually decreased the rates that we're paying.
We're trying to no longer be the price leader in terms of our CD rates. So we but nonetheless, some of what we're dragging from several years ago, maybe repricing
at a higher rate.
And we're using also, as we mentioned, we're using a lot pricing intelligence. We've got a crew of people looking at the customer behavior, the probability of renewal. And we're calling the right customers, the customers that we think will renew at less than the prevailing rates. We're also which is very important, we're also making a lot of headway in attracting some of our deposits from our commercial customers. I think we cited some figures, and I think that's a huge success.
We think that I almost want to say that that's the low hanging fruit that we're seizing on at the moment. And the same customer that we're trying to get more deposits from, hey, we're also trying to get his wealth management. So it's really in line with that relationship banking that we're focusing on today.
Okay. So is there
a specific maybe quarter or timeline to when you think you'll start to sort of lap some of the upward pressure on the CD book and would start to see some kind of pricing benefits, I guess, whether that be in 2019 or 2020?
Yes. It's probably towards the latter part of the year, and I think it'll be next year. But as we also have more core deposits, I think that's the key. I think that's a lot of our focus is on trying to increase the core deposits. We're also trying to increase market share from our higher net worth Venezuelan customers, which we know many of them have relationships and other financial institutions.
So we think that's also another low hanging fruit that we're working on. We can probably stem the steady decline in our average mass market foreign account, but I think we can make some inroads in increasing core deposits from the higher net worth individuals. There's a lot of moving parts to it, for sure. Certainly.
Yes, I understand that. And it sounds like generally on the foreign deposits, you kind of expect the same sort of maybe high single digit pace of decline there?
Mid growth, I mean mid teens is what we've been experiencing.
Okay. So no real change based on anything in the macro environment there?
No. In terms of the macro environment in the country, not really. If anything, we had always thought that it would be in the high single digits, the decay and it's a little bit higher because since its situation has become protracted down there, the country is increasingly becoming dollarized. So a lot more food services, living expenses are being incurred in dollars. So that's really before there was exchanges that needed to take place.
Now individuals and things like that.
Got
you. And then maybe just lastly on kind of the credit card exit. I know that's pretty small, but you just had a little bit of an increase in the provision related to reserving for that. Do you feel like that's kind of fully captured what you expect in terms of potential shortfalls and kind of payoffs on that book of business?
Yes. I'd have to say we're micromanaging that exit. So we're not just looking at it on a quarterly basis. We're probably looking at it on a weekly, daily basis practically. So because you're sunsetting a product and you're asking for repayments.
So we're being very, very cautious and I think we're being very conservative and that's why we increased the reserve for it about $1,000,000 this quarter and we continue to monitor it.
And also adding some colors to what Al was saying, I think that we have seen good results by offering of our alternative product to those wealth management group. We have seen some deposit growing on the segments that we want to deepen
our relationship. Yes, we kind
of told customers that we would be able to provide them an alternative credit card with a partnership, if they had a certain dollar balance in deposits. So as Miguel was alluding to is, a lot of customers were actually going up to that minimum amount so that they could then avail themselves of that alternative credit card. Credit card is again, as I mentioned before, the country is becoming dollarized. They're using plastic in many cases as well to live in Venezuela from the U. S.
Savings. It's very important for them to have a credit card. So we see where they're taking steps and actually increasing their deposits.
Okay, thanks. That's all for me.
I'm showing no further questions at this time. I would now like to turn the call over to Billy Wilson, CEO for closing remarks.
Thank you, operator. As you know, this is our 2nd earnings call after the IPO. But more importantly, it is only the 2nd quarter in our journey to becoming a highly profitable customer centric high touch community bank. All of us at Amarant look forward to a bright future ahead. Thank you all for your time this morning and have a nice day.
Operator?
Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may disconnect and have a wonderful day.
Thank you.