Thank you for standing by, and welcome to the Beacon Financial Corporation FourthQ quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. I'd now like to turn the call over to Dario Hernandez, Corporate Counsel. You may begin.
Thank you, Rob, and good afternoon, everyone. Yesterday, we issued our earnings release and presentation, which is available on the investor relations page of our website, beaconfinancialcorporation.com, and has been filed with the SEC. This afternoon's call will be hosted by Paul Perrault, Paul Perrault, and we'll be joined by Mark Meiklejohn as well. This call may contain forward-looking statements with respect to the financial condition, results of operations, and business of Beacon Financial Corporation. Please refer to page two of our earnings presentation for our forward-looking statement disclaimer. Also, please refer to our other filings with the SEC, which contain risk factors that could cause actual results to differ materially from these forward-looking statements.
Any references made during this presentation to non-GAAP measures are only made to assist you in understanding Beacon's financials, results, and performance trends, and should not be relied on as financial measures of actual results or future predictions. For a comparison and reconciliation to GAAP earnings, please see our earnings release. At this time, I'm pleased to introduce Beacon Financial's President and Chief Executive Officer, Paul Perrault.
Thanks, Dario, and good afternoon, everyone. Thank you for joining us for our fourth quarter earnings call, which represents the first full quarter of results for Beacon Financial Corporation. We finished the quarter and the year with $23.2 billion in assets, $19.5 billion in deposits, and $18 billion in loans. Our net interest margin improved to 3.82, with fourth quarter operating earnings of approximately $66 million or 79 cents per share before merger expenses and special charges. We also continued our record of returning capital to stockholders with a 32-cent per share quarterly dividend. Our balance sheet and asset quality remained solid. Operating performance improved with fourth quarter return on assets of 1.13% and return on tangible equity of 13.43%.
These results exclude the full benefit of projected cost savings announced at the time of the merger. Overall, the strategic and financial goals outlined in our initial merger announcement are already materializing, and I fully expect to meet our remaining targets as intended. The entire integration remains on course, and we are scheduled to complete our core systems conversions in February 2026. Our highly experienced teams have spent many months preparing for this milestone by developing robust integration plans, testing technology, and training of colleagues. We continue to speak with our clients and introduce the new Beacon Bank brand so that they are fully prepared for a seamless transition. I'm pleased with the positive responses to date, which gives me added confidence that we will execute a successful conversion with strong client retention next month.
I'm proud of the hard work and dedication of our colleagues who continue to provide exceptional service to support our clients and are working to drive meaningful performance improvements across the entire organization. Their leadership, resilience, and collaboration are integral to our ability to support those we serve, create greater value for our stockholders, and generate long-term success. I will now turn you over to Carl, who will review the company's fourth quarter results in detail.
Thank you, Paul. Before I get into the fourth quarter, I'd like to briefly cover two items. First, the early adoption of FASB's ASU, and second, how the early adoption changes expectations for the merger since our original announcement back in December 2024. As we mentioned in our press release, we chose to early adopt FASB's new ASU 2025-08, related to purchased loans. The FASB finalized this update in November, and it fixes what many in the industry refer to as the CECL double count. By adopting the new standard for 2025, purchased credit deteriorated loans for our merger of equals are treated the same as non-PCD loans. In financial terms, that means there's no day one hit to the income statement. Therefore, equity increases immediately. However, we no longer accrete the credit mark into income over the life of the loans.
For Beacon, the day one impact was an increase of roughly $49 million to equity and about $0.55 to tangible book value per share. Estimated pre-tax annual credit mark accretion of $10 million-$13 million is foregone. Both the balance sheet and income statement for Q3 and year to date have been updated to reflect this. Since this is our first full quarter of combined results and there have been a few changes since we announced the merger, I thought a brief reconciliation of expectations might be helpful. Back in December 2024, our announcement provided a reconciliation of 2026 earnings per share on page 29 of that presentation. Based on analyst expectations at the time, we projected a 2028 GAAP EPS of $3.85.
As I just mentioned, the FASB issued the ASU, impacting the accounting for acquired PCD loans. At the time of the merger announcement, the annual after-tax impact was estimated at $13.9 million. This reduces the EPS projection $0.17 per share to $3.68, which I would consider operating. At announcement, we also estimated a November 2025 systems conversion, which was moved to February 2026, which delayed some of the timing on synergies and pushed some of the merger charges to the first quarter of 2026, which will lower GAAP EPS estimates.
Based on the six analysts covering Beacon, which I track, the average EPS for 2026 was $3.62, with a high of $3.75 and a low of $3.49, with stock prices ranging from $28-$39. I believe all of these are operating EPS estimates and exclude Q1 merger charges. Turning to Q4, total assets were up $353 million in the quarter, mainly due to higher cash and equivalents tied to strong period-end payroll fulfillment deposits. Loans declined $275 million, with commercial real estate making up $235 million of that decrease. Investor commercial real estate declined to 333% of total risk-based capital. Loan originations and draws were just over $1 billion, with a weighted average coupon of 631 basis points.
49% of originations were floating rate. On the funding side, customer deposits grew by $262 million, driven by $127 million of DDA growth. Broker deposits and borrowings both moved lower, down $496 million and $293 million, respectively. Our loan-to-deposit ratio ended the quarter at 92.4%. I'd like to take a minute and discuss the payroll fulfillment deposits. This business works with various payroll processing companies, which process payrolls for hundreds of companies and pay thousands of employees. Funds are transferred in for payrolls, taxes, and benefits, with ACH payments to employees shortly thereafter. The average balance of payroll deposits are in the range of $800 million-$900 million. For liquidity purposes, we maintain balances over $500 million at the Fed.
Depending on the day of the week the quarter ends on, payroll deposits can fluctuate significantly. A more informative calculation of the loan-to-deposit ratio uses average balances. Our average loans to average deposits was 96.8% at year-end. The allowance for loan losses closed at $253 million or 140 basis points of coverage. This includes $96 million of specific reserves on about $354 million of substandard loans, for a coverage rate of 22%. The general reserve of $177 million represents a coverage level of about 100 basis points on the balance of the portfolio. Given the strong reserve position and the current environment and improving risk rating trends, we continue to see the quarterly provision running in the $5 million-$9 million range.
We expect the coverage ratio to gradually trend lower, as charge-offs will likely exceed provision as we work through existing substandard credits. Net charge-offs were $9 million for the quarter, or 20 basis points annualized. All but $1.4 million of that had already been reserved. Turning to the income statement, this was our first full quarter of combined results. On a GAAP basis, including $14.4 million of merger-related charges, we earned $53.4 million or $0.64 per share. That translates to a 94 basis point ROA and 11.2% return on tangible equity. Our net interest margin came in at 382 basis points, which included a 26 basis point lift from purchase accounting. Net interest income was $199.7 million, which included $13.8 million purchase accounting accretion.
Of that amount, only a net $1.9 million came from loan prepayments on purchased loans. Non-interest income was $25.9 million, non-interest expense was $119.1 million, and the provision for credit losses was $8.1 million. Excluding the $14.1 million of merger charges, operating earnings were $89.6 million or $0.79 per share. That's an operating ROA of 113 basis points, a 13.4% return on tangible equity, and efficiency ratio of 56.7%. Excluding non-cash intangible amortization, our core efficiency ratio was 52.8%. We'll continue to see merger-related charges in the first quarter as we complete our core systems integrations and realize the remaining cost synergies. I want to recognize the Beacon teams for the work they've done preparing for the upcoming systems conversions.
They've partnered closely with our vendors, and we're all looking forward to getting to the other side of this process. The strategic and economic benefits of the merger are already showing up: greater diversification, better balance, low overall risk, stronger efficiency, along with a focused regional leadership and customer service. Yesterday, the board approved a quarterly dividend of $0.3225 per share, payable February 27th, to stockholders of record on February 13th. That represents a dividend yield of about 4.5%. That concludes my comments. Back to you, Paul.
Thanks, Carl. We will now be joined by our Chief Credit Officer, Mark Meiklejohn, and we will open it up for questions.
Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press star one in your telephone keypad. If you would like to withdraw your question, simply press star one again. Your first question comes from the line of Karl Shepard from RBC. Your line is open.
... Hey, good afternoon, guys.
Hi, Carl.
You know, I guess my first question is on capital. I think you had a nice build with the accounting change and some of the CRE pay down. And you kept the language in the deck around exploring opportunities to optimize capital. Just how do you want us to think about that and kind of any landmarks over the next couple of quarters after you get past the conversion?
Sure. So I'm more specifically talking to the subdebt both at Legacy Brookline. Legacy Brookline had $75 million of subdebt. And it's already about 40% of it does not count as regulatory capital at this point. And come September of this year, you know, another 20% declines. Legacy Berkshire has $100 million of subdebt that starts to go into that kind of same discount factor come next year in 2027. So we'll be looking at refinancing. I think I want to get a good quarter of results, a clean quarter, once we get all our cost savings included before we go out and refinance that.
I want to try to get the best rate on that. So, I think that's, that's kind of how I'm looking at that. We all know the tools around common equity, stock buybacks, and things of that nature, and that's always something that we, we keep top of mind if we think that's right, the right thing to do at any particular time. But we're all... we also. I've said this before, so any new shareholder, you know, we, we feel capital is very precious, and we want to be very, very thoughtful about that, as we move forward.
Okay. And then I guess, as a follow-up here, you, you kept the loan growth guidance, I think, and you had obviously a lot of CRE declines, which I think you'd welcome. But does kind of anything surprise you in terms of the maybe the pace of CRE declines and, and how should we think about maybe core CNI and maybe when could we inflect, I guess, from a, you know, a net number?
Well, we are targeting to get down to the 300% level by the end of next year. In the meantime, we want to be able to take very good care of our very important, our very good customers who are the backbone of Legacy Brookline's real estate families. And one of the tools that we're going to use to do that is Legacy Berkshire had brought in a significant amount of participations led by other banks. As those mature, we will kindly bow out of the refinance and in the meantime, the normal order of business.
The real estate is in Metro Boston, does seem to be stabilizing a little bit, and so I think, I think we'll, we'll have a good pace of originations and paydowns, which will keep us on track and keep our customers happy.
Okay. Thank you both.
Your next question comes from the line of Mark Fitzgibbon from Piper Sandler. Your line is open.
Hey, guys. Hey, guys-
Hey, Mark.
Good afternoon. Nice quarter.
Thank you.
First question I had for you, Carl, is you have a little over $2 billion of cash today in short-term investments on the balance sheet. I guess I'm curious what your target for that is and maybe how long it takes you to get cash balances back to the appropriate level.
Oh, that happens very, very quickly, Mark. So, I'll go over this a little bit again. Folks that really followed Berkshire kind of know the business of the payroll deposits. But it was—it's a nice business that they have, and we love the fee income associated with it, the efficiency around what they were able to build, and it's a great part of the new Beacon Financial Corporation. But the payroll deposits are highly volatile. They come in, and then they go out. It's very, very predictable. They know exactly what's coming in, they know exactly what's going out, but it's deposits, it's in and out.
On average, those balances range around $800 million-$900 million on an average basis, and that's kind of why I was trying to lead, you know, start pointing people towards, you know. A very common thing to look at is the loan-to-deposit ratio. For us, I think a better measure is an average loan to average deposit ratio, because that kind of tells more of a story. We finished the year at just under $1.9 billion in deposits, payroll deposits, which was up $800 million or so from the prior quarter. When I talk about the predictability, yesterday, our payroll deposits were around $600 million. Today, they're around $2 billion. So they fluctuate quite a bit. Money comes in, and then it goes out.
So what we do, we consider a portion of that core, about $500 million, and that's core. That can fund loans, that can fund securities, that can fund the balance sheet. The balance of it, we like to keep in at the Fed. So we make a little bit of a spread on it there, but it's not something that we're putting to use, and it's just going in and out. I hope that answers your question.
It does. Thank you. Yeah.
Yeah.
Just one other question for me. I guess you guys have talked in the past about the opportunity to do some larger loans with new and existing customers, given the sort of the increased size in the balance sheet. I, I guess I'm curious, is that baked into your, you know, your projections of sort of mid to lower single-digit loan growth for 2026?
I think a little bit. You know, we will still look to try to syndicate some of the largest loans-
... as we have in the past. We will sort of walk through clue on the size thing. We don't wanna move too fast, but, but we are interested in looking at somewhat larger loans.
Thank you.
Your next question comes from a line of Laurie Hunsicker from Seaport. Your line is open.
Yeah, hi. Thanks. Good afternoon-
Hi, Laurie
To you all. Yeah, just wanted to, just wanted to go back to the buyback. Wanted to understand that a little bit more. Certainly, a lot of your peers are actively buying back stock, and you, you're sitting with a plethora of capital, right? Your CET1 is 11%. So how do you think about that? I mean, obviously, I realize price is a consideration and other uses, but, where do you want that CET1 ratio, or how is it that you look at it? What is it that would get you excited and say, "Okay, now we have to be back in the market"? How should we think about that?
I think you only go back in the market and buy back your stock when, number one, the stock is just not doing well, and it doesn't represent the value of the organization, and you're not able to grow and use the capital for growth. Now, the first thing that we easily hit that number, 'cause that's just going to what the analysts expect us to be trading at, we're very undervalued in that sense. Not that I'm saying we're undervalued, I'm just saying the analyst is saying that. I've bought back some—I've bought some stock personally, but that's different. It's something that...
But as far as making sure that we think about this for the long term, it's not a short-term thing, it's a long-term thing, and right now we're focused on getting to that 300% of capital for our ICRE portfolio concentration numbers. And growth in capital gets us there, and so we expect to see that capital growth. But also growth in loans. So if we don't, for some reason, get the growth in loans that we expect, we understand that that's an opportunity to pull on. We also understand that when we do raise some sub-debt, there may be opportunities to use some of those proceeds for common stock buyback if it makes sense. These are all big ifs, but that's, hopefully, that's helpful.
We do provide our capital ratios in the deck and where we feel comfortable with them.
Sorry, I see them provided in the deck. You mean the targets? Did I miss that?
Well, we are-
Sorry, Carl.
Yeah, we have operating targets that we're very comfortable with. Our stress tests show that we could operate at that level.
Right.
That doesn't mean that we're gonna go right down to that level, because you also have to consider the market and what, what peers are doing and things of that nature, as well as other, other uses of capital. You always need capital for growth.
I mean, just so one more thing. I mean, it would also seem your dividend yield here. I mean, I agree with you. I think obviously your stock is cheap, but your dividend yield here is so high, and so that's also an expensive cost, that if you retire those shares, it's not there. Is that, is that part of the thinking? I mean, I guess, I-
It goes into the... Yes, it does go into the calculus whenever you're thinking about doing buybacks.
Okay. Okay. And then just jumping over to credit, you obviously had a small jump here in your CRE non-performers. Looks like that was all office. Just wondered on that, if there was any color on that $10 million increase. And then also on office, the $137 million of criticized. How much of that is set to mature this year in 2026? Thanks.
So, Laurie, to answer your question, the jump on the non-accruals was a single office property. CBD, it was about a $9 million loan. Vacancy issues there, and we have a very strong reserve on that. It's 56% reserved.
Oh, okay.
I apologize. I missed the second part of your question.
Yeah. The $137 million you have of, of criticized office, and by the way, I really, really appreciate all the disclosures here. How much of that is set to mature this year?
Oh, very-
The credit-
Very little, actually. We had two in the five quarters, including the current quarter, we only had two criticized loans scheduled to mature. One is the loan that I just described to you, and then the second loan is a special mention loan, so it's not a substandard loan, and that is not until the third quarter of 2026. Frankly, I don't expect any issues with that loan.
Okay. Okay, great. And then the reserves to loans you mentioned is obviously nice, nice and high at, at 1.4%. And you'd expect that to obviously come down. Where, where do you see that ending up as, as we look throughout 2026? Where, where could we see it in the fourth quarter?
Yeah, I would probably hesitate to give you a number, because, you know, that's being driven by some of the specific reserves, as Carl mentioned, that we have on our substandard loan portfolio. Some of those loans are long-term workout loans. We have strategies with all of those that we're working through, but it's hard for me to say exactly when we. You know, we've said that we expect elevated charge-offs.
... based upon the level of provision we have. It's hard for me to predict on when those may actually occur, but I think over the next four to six quarters, we'll see it ride down into the 125 range.
Okay. Okay, that's what I'm getting at. Great. Okay, and then last question, one-time charges, by my math, there's about $10 million or so remaining for the first quarter. Is that still a good number, or is there, is there a better number to be using?
Q1 merger charge.
Q1, I think it's
Sorry.
Yeah, it's in the $10 million-$13 million range, I think.
Okay. Okay. Great. Thanks so much for taking my questions.
Okay, Laurie.
Your next question comes from the line of David Konrad from KBW. Your line is open.
Good afternoon. Carl, thanks for your comments earlier in the call regarding the accounting change. But wanted to take it another way with your guidance. You were 15-20 accretable yield prior with the 3.90-4 NIM. I was interpreting the 15 to be with the new accounting change, and so now your accretable yield is estimated to be 15, and the guide now is 3.85-3.95 for the NIM. So I kind of get why the high end would be reduced, but, you know, maybe am I interpreting the accounting change, and, and why do we drop to the 3.85 NIM on the low end? If that makes sense.
Sure. Well, as you know, we came in, like, this is the guidance I gave almost exactly for last quarter, and, but I gave, like, as you said, the $3.90-$4. And I was always thinking, when I think about prepayments on the loans that were marked with the merger of equals, I was just thinking about the upside. And so we were estimating about $3 million of benefit from loans being prepaid, and that's kind of what our baseline guesstimate, and I'll say guesstimate because it is mostly a guess on prepayments.
Our prepayments would have been actually a little higher than that, but it was knocked down because we had one large loan that prepaid that actually had a premium on it. And so I wasn't really thinking about the loans with premiums on them.
Mm-hmm.
And that actually had a big impact on what we actually realized this quarter on interest, so it knocked us down to 13 and change. And so I figure, you know what? I better adjust my-
Reconfigure
... take that into a little bit of that into consideration. So you are right, the $15 million did exclude the impact, the FASB impact, because we knew it was coming or we were very hopeful that it was coming. And... But prepayments are a little bit more volatile. I wanted to give myself a little bit more room there.
Got it. Okay. Then on the expenses, one quick question. Amortization expense came in at $888, I think, which is a little bit higher than what I thought. Is that a good number to think about going forward?
Yes. That's, that's a good number. I mean, it does, it does step down over time, because we, we do do it on a sum-of-the-years'-digits basis. I think it's the CDI component is over 12 years, so it does step down over time.
Mm-hmm.
And, we've got a wealth amortization component of that as well.
Then last one, as you achieve all the cost saves and in the 2Q 2026 area, what should we expect for, like, the back half of the year expense growth rate, you know, once all the cost saves are done?
Well, I think we're-- we would stay in that 3%-3.5% growth after we realize our cost savings. I mean, we do have a lot of work going into our branding efforts right now. So that'll be in the run rate, basically. You know, it'll start in the run rate, I'd say, in Q1, but you really, you'll see the impact in Q2. So we'll have a net impact in Q2 of all the cost savings, as well as some of the investments in the organization.
A lot of signs.
There's a lot of signs. Yeah, we're doing some upgrades to some of our systems, but there's also a lot of savings around this, around systems and vendors and things of that nature as well.
Okay, perfect. Thank you.
Your next question comes from the line of Steve Moss from Raymond James. Your line is open.
Good afternoon.
Hi, Steve.
Hey, Paul. So maybe just starting on kind of how to think about the loan runoff portfolios, just on the equipment finance and the Berkshire Hills commercial real estate participation. Kind of curious if you could size up, you know, how much you're looking to carve out over the next or let go over the next kind of 12-18 months.
Mark?
Yeah.
They got the three, the three portfolios that are running off, that we're not in those businesses anymore.
Yeah. So, you know, for Eastern Funding, the tow portfolio is down to about $190 million. Macro leases about $150 million, and the aircraft portfol-- I'm sorry, the-
... Firestone is just under $20 million. In terms of runoff on those, we've got Tow at about 27 a quarter, Macrolease at 19 a quarter, and Firestone at $2 million-$3 million per quarter. So those are running off quite quickly. In terms of the participation side, you know, I don't think we can put a number on that because, you know, there's a lot of factors involved with that. You know, the maturity of the loans, the desirability of those loans in the marketplace when they do mature, and then our ability to sort of work our way out of those. So it's a stated strategic goal for us, but I would be-- it would be inappropriate for me to put a number on that.
Okay. Got it. Appreciate that. And then in terms of just the office floor, and I apologize if I missed it, just kind of curious as to, you know, how you're thinking about the timing of resolution around that $9 million NPL.
Currently on that, that's the new non-accrual that we discussed. We're working. The sponsor is very amenable to working with the bank on a potential sale of that property, so we think there's some interest, and we're hopeful.
Okay. And then a third one here, just in terms of, I know it's a disclosure on the rent control multifamily properties in New York. Just wondering if you'd size up how large that portfolio is?
Yeah, I think we had talked about this last quarter. If I recall correctly, I believe we have 7 loans in that portfolio. The total is about $18 million or $19 million. So it's, you know, it's a really very small population of loans, and it comes out of our formerly the PCSB Bank.
Okay. Appreciate that. And then, I guess, a question for Carl here. Just kind of curious, you know, as you have the balance sheets combined here, you know, you've laid out your expectations for growth. Kind of curious, you know, how you're thinking about positioning the balance sheet for rates, you know, how a 25 basis point rate cut could impact you guys these days, and, you know, if there's anything you're looking to in terms of adjusting balance sheet positioning.
Yeah, I'd say we like the position of the balance sheet right now. It is a little bit on the asset-sensitive side in the very near term. So when rates move quickly, the rates on our loans and our assets move a little faster than our deposit side. But deposits tend to catch up fairly quickly. It may not be in the quarter, but pretty quickly. So we like where we're positioned. You can see, you know, the duration of loans is short, the duration of the securities portfolio is short, and the size of the securities portfolio is, you know, minimal to support the organization and very vanilla in what they're invested in. But...
And the deposit portfolio just continues to get better and better.
From a strategic point of view, Steve, we work to try to be neutral. We don't like to take a guess on where interest rates are gonna go and then take action on the balance sheet that you may or may not realize that. So, we'll make our money the old-fashioned way.
Hmm. Okay. I appreciate all the color there. Thank you very much, guys.
Okay, Steve.
Your next question comes from the line of David Bishop from Hovde Group. Your line is open.
Yeah, good afternoon, gentlemen.
Hi, David.
I'm curious from an economic backdrop perspective, I think, Paul, maybe you mentioned this in the preamble. Maybe just an update in terms of what you're seeing in terms of the health of the Boston commercial real estate market. I know life sciences is causing a glut up there in terms of available space. Maybe what you're seeing from a macro-level perspective on the commercial real estate side.
Yeah, certainly, this is Mark. You know, certainly, you know, there continues to be stress in the portfolio, both in the market, I should say, both in terms of office and lab. I think there are, you know, quality lease opportunities out there. There are quality tenants out there, and, you know, they've got a lot of leverage right now. So, you know, we are seeing values values drop. We've seen that in the resolution of some of our problem assets. But I think we're, you know, we're generally seeing that stress in the marketplace as it relates to, you know, price per square foot type values.
And, you know, I expect that stress to continue, but I think the new news or the green shoots, if you will, in the market is that there, you know, there are people out there. We're seeing some, particularly on the life science side, some of the tenants starting to be successful with rounds of finance or rounds of funding, I should say. So that's creating some opportunities in the marketplace for, you know, to sort of buoy the lease market a little bit, if you will.
I would just add, David, that the core business district in Boston has gone through some pain, probably has to go through some more pain, but it does seem to be coming back. Green shoots, I think Mark mentioned, and some life science stuff which got overbuilt in the past few years, where we don't have all that much in that. I think that continues to suffer. But in our entire footprint, the rest of the stuff is really pretty good. It's all going pretty well. When I talk about Rhode Island and even Western Mass and Albany, places like that, they're all holding up pretty well.
Got it. Then maybe back to the loan side of the equation on the yields. Just curious what you're seeing in terms of new origination yields, how those trended quarter-over-quarter?
... So like, like I said, we originated
Billion?
A little over $1 billion at 631 basis points on average. Now, remember, we had three rate moves in the quarter as well, so we saw the impact on that, on not only just the originations, 49% of our originations are basically floating rate, but also on the balance sheet, of those loans that reprice. So if there's any particular category you're interested in, you know, C&I loans were coming in, on an asset-weighted average basis, about 701 basis points. Consumer loans around 549 basis points, and commercial real estate, 607 basis points.
Eastern Funding?
I appreciate that, Carl.
Yeah, the Eastern Funding, you know, as far as equipment financing, that would—you know, that's, that's as a subset of commercial loans, 853 basis points in that book.
Got it. Then maybe one final question, turn it back to capital. All right, Carl, you probably saw maybe one of your peers last week, I think, announced they did a credit risk transfer. Any thought, is that something that could ever, you know, enter the capital management equation? Thanks.
I never want to say never, but it's not something that we're really interested in. God forbid, I said I was interested, I'd get 400 calls.
That ends our question and answer session. I will now turn the call back over to Paul Perrault for closing remarks.
Thanks, Rob, and thank you all for joining us today, and we will look forward to talking with you next quarter. Have a good day.
This concludes, this concludes today's conference call. Thank you for your participation, and you may now disconnect.