CapStar Financial (CSTR) 29 Jan 212020 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to CapStar Financial Holdings Fourth Quarter 2020 Earnings Conference Call. Hosting the call today from CapStar are Tim Schools, President and Chief Executive Officer; Denis Duncan, Chief Financial Officer; and Chris Tietz, Chief Credit Officer. Please note that today's call is being recorded and will be made available for replay on CapStar's website. Please note that CapStar's earnings release, the presentation materials that will be referred to in this call and the Form 8-K that CapStar filed with the SEC are available on the SEC's website at www.sec.gov and the Investor Relations page of CapStar's website at www.ir.capstarbank.com. Also, during this presentation, CapStar may make certain comments that constitute forward-looking statements within the meaning of the federal securities laws.

CapStar's events with and the other to, reflect future things, its statements current respect views among Forward-looking financial performance.

not the results of results be to materially and today. are from the CapStar's many which performance and not statements predict historical to uncertainties, are prove future and difficult and Forward-looking to risks, subject beyond based guarantees expectations, of estimates forward-looking projections Accordingly, may and of or are as statements forward-looking implied by are facts expressed assumptions are CapStar's statements. control. Actual different upon

are reliance of which as a You in cautioned required any forward-looking otherwise. not new as revise of Except result update undue to by as contained future on any only to presentation, CapStar events statements or disclaims place obligation this speak whether otherwise information, law, statements today. or forward-looking

include reconciliation release may uncertainties of financial presentation presentation included a and impacting this earnings measures GAAP call. in directly measures the materials statements are the comparable The and non-GAAP and forward-looking addition, certain in the presentation this to the to of risks, measures assumptions referred most and non-GAAP In non-GAAP financial measures.

With Tim not over ahead. its I'm parties live presentation Executive Officer. nor not and President for the accuracy that, go now webcast, and by the guarantee archived and Please going CapStar's turn to on of Finally, does website. beyond located and is earnings CapStar CapStar's provided responsible transcripts authorized to teleconference edit, third Schools, the Chief are transcripts

you, on for morning call. Okay. participating Ludy. thank you Good Thank and our

life. review lives and caring the is that starting the XXXX no more I we Each I in results, our participation in appreciate team. am in and fourth school, team of There our with them quarter involves are We CapStar proud XXXX and in sports activities of in and the you. to participated other with through groups teams opportunity pleased

our could an converted somewhat we margin were a were little losses family, decline short, two we know that like be horrible did and are overcome Little in first it expense we large interest we friends each at had and provision XXXX, many in been a additional still in integrated initiatives merger XXXX, as integrating in this, on try year On and of this. the of prior our and focused has enter industry, increase back, balance thought would on a It and impacted no Looking we to the been did. net many we challenging health, year. In top us banks we modest all strategies and not challenge as our to by the pandemic. of us and have level hit work. performed having anticipated and in

common of and team share Our XXXX. we hope reported ratio will base, very on equity been we group. divisions. the pretax a of remarkable can X.XX%, time service whereby has our tested now exceeds quarter inspires strong resilient is to ends operating a team a in and on results leader XX.XX% me what XX%. in had repeat SBA and world's risk-based been exemplary and producing proud communities achieve a customers, to return our and to average with lifetime. while a am year capital of CapStar our PPP in at same pre-provision in earnings total not as of assets Fourth our our one We mortgage, provided I has capital tri-net per $X.XX, tangible so our resiliency The record deferrals, it

challenging, outstanding value was strengths, adding and banks At but marks losses, we excluding accounting two loan sound XXXX XXXX our and PPP expanded strong our year-end, our profitability, XXXX fair and our to was diversified Enhancing as loans for bank. a community addition stronger focus enter entering allowance we and for management. risk was inspired In X.XX%. Knoxville.

engage Associates] and margin. our assist interest strengthening Our relatively net success to began SBA see new division great in and [Darling to we

as for financial Tietz, the Lastly, turn work CapStar as Chris strong to I portfolio his of customers want the it quarter. team risk that, to that bank. I'll recognize over each provide same our and to and our time, they at leadership their year this bright managers shine to bankers with comprised is flexibility outstanding management. With performance much for possible the protecting Denis while cover as

basis million million was the earnings the to by morning, margin quarter quarter. contributed favorably and a presentation, fourth largely quarter, our driven On you'll continued XX third past reflects three for assets X was cash $XXX margin interest the XX/XX/XXXX everyone. deposits On at by a the The improvement which X at about of X.XX% net you, of points relatively $XX.X basis the quarter basis. in an of an on correspondent X, includes in The the Also of earning our driving net the on income increase X.XX% NIM from the stable quarter. a impact Thank the deposits in from adjusted was totaling fourth PPP loans and investments margin quarters. balances. our decrease see good sheet, interest Slide excess impacted points. balance Slide into decreased Tim, shift for our million over $XX adversely adjusted

deposit deposits third with excluded declined continuing deposits hold large compared markets the Our swap basis levels of rate, the the costs Deposit the expense. quarters. points X core prior which as consistent are two in quarter amortization of adjusted the quarter to to

and the further fully quarter, to will be XXXX. deposit into fourth which in realized decreased rates continued deposit We lower costs

strategically price the balances continued our billion. the deposit loans for loan being average on quarter at flat were are opportunities, and within focusing X, purchases Our of through On continued excess addressed investment Slide higher deposits. the runoff $X.X relatively portfolio pricing growth,

of to an basis, loan and loans were end quarter. increased pipelines. we loans average prior income SBA strong at $X down was million of loan the PPP build utilizations as in to excluding by relatively million market continued non-interest the decreased with very end Total as the loan PPP XX.X%. line stable period Slide loans, for Tim out saw $XX.X annualized million levels PPP quarter yield our $XX the while the quarter. credit over third of XX third and it turn quarter shows the quarter third position. the quarter the the be over quarter. strong will X.XX% by and were $XXX driven discipline The in XX, grow our revenue a cost non-interest decreased in our in savings very strengthen record Knoxville for from of we quarter $XX.X mentioned, and business, XX, record our record quarter, quarter to who largely for from our our mortgage strong. strong quarter, growth or On regarding I’ll from remain X.X% million continued Excluding mortgage On additional decrease as revenue drive expense to with declined Mortgage Slide Chris fees Slide down $XXX,XXX provide operating continued the expenses from efficiency the FCB, our With tri-net. million our ratio businesses. volumes for to fees resulted in in strength strong we at continued the XX.XX%, discuss a Tietz, information continued that, business operating On an which fee and prior did

Thank you, Denis.

Page Turning XX. to

of Let effects are as the in the all we observed the communities, by have confronted pandemic. and me our resiliency again, team by saying, our start we we have encouraged customers, our CapStar

This of We to Through gaining, have focused fared of on we have as exposures the organic over this commitment focus face X% future continued looking heartening uncertainty our consistent continued year-ago To many than to portfolio is period, we and relationship we are our the focus is think to the in of a less as XXXX in-market in credit has well less bank reductions the development community evolved. strategic within course compare a while shared geographic this our ways. evident our it that national to with markets. pandemic orientation to than and on maintained growth. enhancing

only risks committed ability continue four and a of maintain time. continued perspective, reclassified. exceeding consistent pandemic over robust results quality changes are also in-market We borrowers, our monthly reviews enhance impact to manage against deliver borrowers asset to not fit These remain each criticized we and XX%. but an our to experiencing successfully From criteria. level that transactions evaluate strategy, of We

of First, and we assessment make of the a operating forward-looking their direction risk performance.

their of flow. the cash evaluate adequacy and we Second, sustainability

capitalized, the pledged reviewed we of the and capacity the of lingering finally, to and shared the by is direction stability adequately generally or their and seeing operating those predictable last well guarantors risk quarter, vast with that we in me look reduction of provided is involving borrower. cases hotels, loans, we And stable improvement are and and a needed. owners evaluated. payment coverage are Consistent collateral and Third, in entertainment. impact to there quality at of the willingness access and reflected loan small if attention a relatively a and including lot capital in in on insight. deferrals Since to X.X% in number give of This and criticized many additional is from a about let the little you borrowers observations majority support the in with believe external from levels pandemic sectors, secured, generally credits of tourism, quarter-to-quarter hotels, have classified liquidity

account just for half third borrower portfolio. on less under for with one than million $XX payment balances deferral hotel balances hotels First, Hotel account our in X.X% deferrals. the of of

to So is our repayment two pass. At XX/XX, to thirds exposure continuing hotels hotel original on has of our or rated are pay XX% terms. returned of

loans remains which that we against because with the both stress benchmark the consensus are our this vaccines have short-term withstand months. the of in we XX% hotels power We belief discussed. more. I in the are we value continue that than and the valuations. activity ample our in we sectors the excess return to in in in various here of is the portfolio forms event affected the referenced transactions time aggregate regularly. participate, discussed a And XX% coming each simply the is as to stresses affected meantime, while general of tested pre-pandemic have staying where in aggregate, higher gap future reassess also uncertain, to impacts easily for In or bridge individual default, hotel borrowers In will rollout, this portfolio hopeful and value

overall remain next at at It were pending XX% to to and remain the matured periods. note to note are these XX/XX. low, to renewal Classified Turning is from prior elevated are delinquencies continue approximately that We the delinquencies transactions levels. of and assets page. that our low losses directly related important

losses. Finally, we our maintain loan of assessment posture the pandemic. focus to the effects are continuing lingering in the bring conservative to assess allowance of We and a for

current appropriate our coming in hopeful assessment, we remain uncertainties themselves is resolve we a lingering conservative believe maintain posture While as it to in months.

loans, As assess purchase in allowance, it. a past, the or for we views how and/or present PPP regardless for a on back basis, With closing range of we to money biased, is chooses GAAP that, one I'll marks an to couple or to Tim the conservatively see removing continued whether turn comments. adjusted the different of view of adjusting that it

questions. Okay. answer to Thank you, Chris. Operator, we are happy now

[Operator Instructions] comes Dick the Piper first Graham from from And our Sandler. line question of

Your line is open.

guys. morning. Good Hey

Graham. morning, Good

you renewal credit you days it's I or $X Was past kind matured over I over migration this just the in starting actual just like any think loans Can little credit. loans pending now. increase note talk there guess, just a XX was of drove about the in – deck here? million of that on what mentioned were due?

falls pending maturing loans – do Yes. the renewal. the category with to had it in Generally, our that

great know to the where think level idea And of Great. You rate in shake pretty out at contributor of run give a XXXX? again might here an – driving closer that think about $XXX,XXX. it of this can still to $XXX,XXX? you and what's about kind but growth I then be me you XQ might income division fee quarter think Okay. they're is looking the of obviously new, SBA, this might

game and The their if a level challenge that do now team normal challenge glad came it's very time over isn't of which of its business. a think We was really SBA going. second to in getting spent team to quarter And But about because is so can a that fully influence it's to with their quarter, all think on some their million of talented – two quarter. PPPX, years their referrals this actually even a the we're Sure. maybe ago. it sort And on takes last and help. takes Is was is set focused just a closer executing more. $X PPP, processes, you time goal long-term, up first fourth get of PPP. and they quarter business together proud. really actually We And doing centers plan entering then their the year dominated put off

the So a half proved quarter. I can second business year about their up to of plan get they million out think in the that $X

So that. we're very optimistic about

just year, now we think wait have first I excited we prospects. in real right and still quarter, to this have distracted how they're pandemic much but see because about their we're

That's great cash you a you It I the liquidity know And securities fair into guys this on lot amount put balance book. of of color. looks excess quarter a then and still took like that sheet. have

with loan a further that additions portfolio. incremental You thinking to be the that think there be might how And you are down balancing opportunities the road? growth little investment about could future any

everybody obviously on put put don't be to and it want to we loans, on would with loans. imprudent love And Well, bad right?

a so earn and you I'll balanced we're don't may things anybody a to certainly basis at hurt our XX or interest really Denis we go add XX, today, that. it's buy rate let And want ton of and six We points. and like approach securities But looking risk. could five to different

to Denis, really we're that capital trying we've do done actually some return add other to We've at And of run you so and were to strategies? tried the look And securities. non-core. off deposits want some on investments

of of things our some securities things. monitoring in are say, looking And just other position a obviously a lot fourth well. we're We of lot would a of We monitoring be have doing bought we're capital do I investment more. quarter. to sub-debt, it. as the may Tim, course, We're number able we We've at. that

And The a XX%. so of close we in liquidity the ratio have lot was pipeline. to things

pricing a deposits liquidity, we'll as lot deposits, downward to those move be So continue in into of XXXX. excess we plenty and of aggressive

me Congrats a on Thanks guys. quarter. good Okay. for that. all That's for

Graham. much, very you Thank

you. Thank

of next Our Securities. question the Truist comes line Demba from Jennifer from

open. is line Your

Thank you. Good morning.

One this of your sold hotel loans some peers quarter.

willing consider pricing to Just if were wondering be you that? would in the if favorable

question you Jennifer, repeat your up. please? Could it broke

Sure.

Southeast sold your quarter. loans of the hotel peers some fourth during One

if that's favorable something CapStar the in would were pricing if wondering consider that? Just

of XX% pass Jennifer, Well, are hotels as we earlier, mentioned our rated.

structure our Right on got basis as typically have and avoid is front-end. underwriting look at think strong borrowers those we We offensive our because something a valuations of transaction good. are we is we favorable, that a to now, – And like losses. their to capital transaction in cash that adhered liquidity still pre-pandemic high equity would the step assessment model by on

we So to be have for but but I par, favorable would good us to say customers would would consider us. they're anything,

this growth – is pretty still envision going the kind And environment revenue did CapStar in to to year. this Okay. growth be of expense continue year? What

I and give don't out to expense We're saves guidance. coming out. think we added want which still the we're any our estimated cost FCB, taking of

focused be don't would see – lot discipline rate. we're I revenue say it getting quarter close I hopefully fourth would management. on the to – to capital think investments a or run of is you're base. economy so And right, uncertain. would normalized So we're pretty our I

So revenue is our growth strong to for I'm near certainly We're And stabilizing. growth margin and hopeful tepid. looking then, we're and that loan as additional is loan is bankers for Denis hire. looking

year. be our on sheet get a still expense and disciplined again businesses. We're going going fee to going and We're try be think I the side. this try balance is very So to excited and about the

Hi, Denis. Jennifer. This is

well we're acquisition. finished integration with our with the and finished that conversions pretty think the I of –

coming – that into going So savings XXXX. fully be some be from will realized we'll in have that'll

in then our if interest some economy interest the operating a on ongoing bit opportunity our net upside And continues our especially a focus got yield and margin, net [indiscernible] really begins open income to We also the to see general steepen curve with little we've tight expenses. regular as up.

a pretty So standpoint. revenue situation I'm stable got optimistic a we've from an expense that and really

Do we still have you?

you. Thank Yes.

Thank Okay. Jennifer. you,

Thanks, Jennifer.

comes line next the KBW. question of Mealor our from Catherine And from

is line open. Your

Thanks. Good morning.

Hey, Catherine.

Good Catherine. morning,

on your stock? we've for updated be to on think you'd and and Hey. comfortable you're you about a the economy want what to buy just thoughts lot, talked I get to where back buybacks, know looking management capital starting signs

XXXX one-time Yes, the when the of joined – dividend. People I'll in a pieces was I of CapStar go or try question. feedbacks of all. feedback little and I'll ago, even XX good dividend. And just of the will increasing But everybody, run bit. back a that say summer had buyback digest and let's has months capital and you maybe from on talked it the about one one I and excess feedback – right? Everybody get you opportunity thoughts got

input about So FCB to and I think and chose it we deal. we a took the actually that we do talked lot

If to you cash to because, loan if is investments then obviously, or like can't do stock, remember, priority too part an part a something. cash you'd find you profitable acquisition, one. find growth use And that

mix and use, would we that's put we're the our of about just things So which and is to are one lowered that ratios we use it management. I then internal great that risk very of and going to cash, changed our focused some on hit. to think COVID CapStar have And

time wanted rightly be we this conservative or to and so to elected last wrongly, raise And year sub-debt.

hindsight, to and situation ever thought that be are be have it as all a been could bad going because event. quarter. last things just horrible was maybe second as lower it we it at a In not how later We wanted then stock in looks like to not needed it would back get. never bought had $XX just position we a so we issue And knowing deep would at

have there Monday-morning [indiscernible], periods were we quarterback, bought maybe stock. could some some So

Denis August Groom and burndown since we've times and it run What analysis Steve price at. monitor between probably would Mike Fowler. our met would we and Tietz What loss It four studied buy maximum could and Board we've earnings think Chris and what got think we three or we've And week myself to a we this the potential do at be. be. meeting. our discussion So

our than it's is We much the I really price. protected. sure or capital to we can't we But and would to do base. under stock discussion. say our And So our but were that just price wanted more attractive clear I say shareholders an jeopardize make was think it want bank don't that,

kind it, look that do As kind we there's management capital at comfortable of kind Do the indication you look before sense, I more you how feel that you're to released guess buyback with next the two early we could stock. you release do you coming year? of see think likely Maybe reserve or how it's see you'll reserve you of that move as credit. out in like of about at ways –

we I'm not really want – GAAP, on going comply mean all to really I that I with we think banks, all are required comment all we to, and to. that.

past think stimulus a economy of the of which of I up, this virus, lot the there's much measures waves more with and year, uncertainty coming second the virus. still important propping that is came the out qualitative and third waves

going So the could potential on based felt risk we're our us do credit. healthy we based on what have tell reserve be. we a to model let But the

appropriate to we're up. in the building levels there. at But capitals same time, we've ensure our got the great so And profitability monitoring

have I would the together. at agree than the capital and want just that jeopardize together say need we But to we feel do any to would that. them run – them more we view long-term, shareholder. don't do we I And on our bank anything do capital never we really view to So I just levels,

at spring. and the So and will think we the Catherine, buybacks appropriate I be appropriate I different looking view in this share that pricing them time a little

in for Chris. Maybe those I mean, what Great. a just Can little just That's on one NPLs minor helpful. credits credit about increase follow-up minor, you but were? talk and bit you, very – the the

that of but it Then And through the mergers – Yes. outsized was by NPLs, came an there increase all, again, terms our in was that Well, first occurred of in impact not general. – were or the year-end. over point I – include of that XX-day would maturities noticed the pending credits that the some other maturities of delinquent pending at – pending renewal view. the the

Okay.

would that acquisition-related? was linked the increase non-performing as loans quarter view in – pandemic-related that you or more So

to No. That in terms that the specifically was of was non-accruals, – acquisition-related.

what of And credits? type

consumer on. retail and credit general credits have a we under bull. there, and it's the manage large Well, They so reporting a those rules base consumer of

put so And we their with their delinquencies resolution into those and pending categories on. doubtful so

one concern credit what that's if no is. So that's that there's driving your

very they Largely Yes. very Catherine is, these two and we were were what private. ratings banks good run, well privately and experience held

We October we COVID so didn't push get renewed. discipline loans I same they the these the And deal to matured thought better. And Interestingly, summer push did would be quarter-end loans them bad at getting on more out. in that conversions have, all it think be announced it of thinking we in would November really – conservative this January. to would and out, last the it and

is what increasing. COVID that actually so And happened happened as was

company quarterly And a them our loans was public of lapse those just it was not getting banks. matured it an – that array so across but to discipline, just internally

it. makes you. sense. Thank Got That Great.

Sure.

from from And Dezellem question our Bill of next Tieton Capital. the line comes

line open. Your is

a a and I'm you question level business. terms of activity do Thank in of normal the around you. gain-on-sale? origination mortgage thinking My view is What as

is That's if phenomenal. how not here, mortgage Chicago that's here sure one. York. many – had from even unbelievable and moving such cyclical hard to meet such Nashville we just a people that answer. New hot it's industry, I it's mortgage – market. person our a here two, It Number I you don't number is I'm are mean, know California,

think bit guess I was in a off front say person think $XXX I I to exact would I little don't give us production. I of I $XXX this $XXX to a mortgage year up, we’re or want I year, $XXX and don't know, wish And be, wrong but have normal but what would million for don't our here, Bill. I'm an give million to But I in So of to going million you million answer, I number maybe production. you me, want a answer. the be annual

right just that you so direction? phenomenal get the a And in year, but does

It quite think That's semi that question. the another, see And mortgage, mortgage interest unanswerable one, does. further where rates step buyers? guess the a starts take of what then I level it you'll like refi this slowdown? I'd purchase sort to you And actually of to hurt helpful. and some do two, activity real At

That maybe And follow-up to I answer, better for everyone get that I speculate. to for our to And hear for gosh, mortgage And maybe because get benefiting us ago, better heard, better the is us. that years it the Weatherford. of but not been would from every want hate Hart you head, a cycle, country a across this be us to boom. every certainly of loan all refi. even in one-on-one are for really on information kind refi do don't couple this But us you of

any refi be going to not opportunity. there's So

But you so people finding move run houses much. think and going out. though certainly that change to opportunity. always I'm think would I there's an it's

is of seeing things I same great is don't if the know, this you have page, upright CapStar at think And the are they One look about that page. here. I we

how the in trend bit quarter. Bill and you about XX, third – in quarter record your the was Page more a earning a the gives revenues and deck Its trend little the

Yes.

XX% been is was it's But mortgage of is So a CapStar’s CapStar, purchase beauty the refi, to historically what us roughly going these that shop quarters. say in I money the is for shop. refi the for

money. the months, the there's a range million I'd So say here business benefiting Nashville, absent the right with this good the I purchase very by million last growth of mortgage think to size excess that's $XXX core of And XX% now. with probably XX Nashville and $XXX

it’s Thank want moving the sounds Nashville? do is or of it And in around – like up normal that Is Nashville a that to from pick it just country. different just have I – Great. some way from a your people it's No continuation you. trend? acceleration, point that simply on you

it's say acceleration. I'd an

So other that three – Mitsubishi. it. is came, cities cities for or headquarters it are moved experiencing what's their Two to experiencing is, and Right think think to really well, after Mitsubishi's. the here. come months That's one North I that are here forget moving from I'm this. mind, five know to so say three, different I it California going instance, I And But of ago. to – this come American was XX I I mind was that

way that was built big that's building Downtown. then was So AllianceBernstein, pre-COVID. There Amazon and a there was

are that there that So that, non-company of give What's quitting – now packing related. quickly. pre-COVID. just happening several is examples It's and jobs just couple moving. you is was occurring I'll a already There up people are their and

which going background just on in hated school and and all at going of when background. them Monday in road healthcare lost two So national see It's their unfortunately the an we that's daughters up with lending. California you And sort University, somebody person's ask at they why here to the of right here happens leave the here, the already we start that they've just outstanding banker came is just that's beginning moved from as to And same the year. been they person and And we've replaced California. with weeks. them Indiana

Goldman with has employees, manages to nothing three to So and and his and a right summer COVID. to gentleman started taxes tough moved week do Sachs, person million and that had at office here, brought lunch the XX is girls him. change. $XXX wife fund an Manhattan to took in went And Tennessee. No next now. own with up grew lunch his right this business advisory last company, space due to ours and that just had here I that wanted with

said, they this They went from five – New one all said They new new patients? you they're said I are California, you coming me I’m so the York. off a full getting And Chicago is I staffing? month all dentist that to they everything. recently They they're back and going full said a office. And said, told little calls absolutely, people to taking be and saying, and are reservations to bit. dentist of

why or So to companies And a are Bill, I their like But I change, the places I sure it's want say gone cost larger reasons. the to has we lower income leave better the there Texas. time a unfortunately individuals to a from of saying, place. tax, and where would think Nashville it's for getting a Austin, And I it's is that the Charlotte share. other no just is climate, employees live there's place city want new better excitement, state place, climate, saying, think lot I'm

Thanks the perspective. for all Great.

Sure.

we have from Graham And follow-up a Sandler. Piper from Dick question

is line Your open.

Hey guys.

wondering housekeeping was quick quarter. of here. share fee with could a the level income PPP this Just if me you thing I

the Denis would you PPP – you mean accretion?

Yes.

may have look up. that to We

on anybody Let's number here know don't the there's But we on right in as I that could we PPP accretion sheet. certainly Graham, follow-up coming exactly that. else if that that. follow-up have the loans… wants But

PPP it into Graham, the margin. $X.XX $X.XX of accreted accretion or

So if that… you want to do

basis X points.

X margin. basis points. basis I'm into points sorry. X the

it to for I'll be math, to if get happy want you do you that later. So or you that could do

Okay, great. That’s helpful.

accretion the X the would that you came margin amount in basis the give on points of quarter. PPP

PPP can We then guess, I And That's details. the after all great. other call right. on, follow-up –

of loans that That think and was about PPP forgiven are were $XX whatever. reduced then or million I

still or being remaining whatnot. ultimately here have of million And or forgiven soon we be will PPP so of end the $XXX paid that the loans very – at year,

the of middle round to have PPP. the next we're you're Now – of also in going

of going so… So coming in, this some more we're have to

That's Great. helpful. Okay.

okay, answer great. that Thanks. – Does

closing will no President now the And at questions remarks. further CEO and I'm call time. turn Tim over showing to I for Schools, the this

had everybody Operating awhile. Officer away thank year Okay. XXXX. Well, on lot we thank I Chief going employees. just had end Athens our CEO of a a want wonderful calling I we've CapStar to and the acquired. our was for Unfortunately, in had to and transition, at and want passed for

what it And did And highly last we so I to to just year, to can phenomenal. accomplish all we it's do. speaks continue think

quarter. our you us. year. all to appreciate to It's following to and for work employees going And just interesting and first forward updating we hard So to another we We're look going our continue communities our shareholders. after you be

stay at healthy we'll and to you. talk time. everybody that So you Thank

gentlemen, you And ladies for participating. Thank this call. conference today's and concludes

a wonderful You may disconnect. day. Have now