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spk01: Good morning, ladies and gentlemen, and welcome to Capstar Financial Holdings' fourth quarter 2,000 earnings conference call. Hosting the call today from Capstar are Tim Scholes, President and Chief Executive Officer, Dennis Duncan, Chief Financial Officer, and Chris Peets, 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 CapStore earnings release, the presentation materials that will be referred to in this call, and the Form 8K that CapStore filed with the SEC are available on the SEC's website at www.sec.gov and the investor relations page of CapStore's website at www.ir.capstorebank.com. Also, during this presentation, CAPSTAR may make certain comments that constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements reflect the CAPSTAR's current views with respect to, among other things, future events and its financial performance. Forward-looking statements are not historical facts and are based upon CAPSTAR's expectations, estimates, and predictions as of today. Accordingly, forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties, many of which are difficult to predict and beyond CAPSTAR's control. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statement. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of today. except as otherwise required by law, CAPSTAR disclaims any obligation to update or revise any forward-looking statements contained in this presentation, whether as a result of new information, future events, or otherwise. In addition, this presentation may include certain NANGA financial measures. The risk, assumptions, and uncertainties impacting forward-looking statements and the presentation of NANGA financial measures and the reconciliation of NANGAP measures to the most directly comparable GAAP measures are included in the earnings release and the presentation materials referred to in this call. Finally, Capstar is not responsible for and does not edit nor guarantee the accuracy of its earnings teleconference transcripts provided by third parties. The only authorized live and archived webcasts and transcripts are located on CAPSTAR's website. With that, I'm now going to turn the presentation over to Team Schools, CAPSTAR's President and Chief Executive Officer. Please go ahead.
spk07: Okay. Thank you, Ludi. Good morning, and thank you for participating on our call. We're pleased with our fourth quarter and 2020 results, and we appreciate the opportunity to review them with you. Each of our lives involves the participation in groups and teams, starting in school, carrying through sports, and other activities in life. There is no team I've participated in that I'm more proud of than the 2020 Capstar team. Looking back, as we entered 2020, we were still integrating our first large merger, and like many in the industry, anticipated a modest decline in our net interest margin and an increase in provision expense, having had little to no losses in the prior year. In short, we thought it would be somewhat challenging year and we're focused on strategies and initiatives that could overcome this. Little did we know in 2021, all of us were hit and have been impacted by a horrible pandemic. It has been a challenge on each of us as we try to balance our health, family, friends, and work. On top of this, not many converted and integrated two additional banks and performed at the level we did. Our team has provided exemplary service to our customers, been a leader in our communities with PPP and deferrals, while at the same time producing record results in our mortgage, Trinet, and SBA divisions. The world's resiliency has been tested, and Capstar had a resilient 2020. I'm so proud of our team, and it inspires me as to what we can achieve as a group. Fourth quarter ends a remarkable year in one we hope will not repeat in our lifetime. We reported operating earnings per share of 51 cents, pre-tax pre-provision to assets of 1.93%, and return on average tangible common equity of 15.38% on a very strong capital base, whereby our total risk-based capital ratio now exceeds 16%. In addition to our strong profitability, our 2020 focus was sound risk management. At year-end, our allowance for loan losses, excluding PPP loans and accounting for fair value marks, was 1.57%. 2020 was challenging, but we entered 2021 inspired and as a stronger bank. Enhancing our strengths, we expanded and diversified, adding two outstanding community banks and entering Knoxville. Our relatively new SBA division began to see great success, and we engaged Darling and Associates to assist in strengthening our net interest margin. Lastly, I want to recognize Chris Teets, his team, and our bankers for their leadership and outstanding portfolio management. Capstar is comprised of strong risk managers that shine bright this year as they each work with customers to provide as much flexibility as possible while at the same time protecting the bank. With that, I'll turn it over to Dennis to cover our financial performance for the quarter.
spk06: Thank you, Tim, and good morning, everyone. On slide 7 of our earnings presentation, you'll see our net interest income of $22.3 million for the quarter reflects a continued increase over the past three quarters. The net interest margin was 3.12% for the quarter and was relatively stable at 3.41% on an adjusted basis. The adjusted NIM includes the impact of excess deposits on our balance sheet, which adversely impacted the margin by 37 basis points. PPP loans contributed eight basis points favorably to the margin in the fourth quarter. Also driving an improvement was a shift of earning assets from cash into investments totaling about $178 million in the fourth quarter. On slide eight, deposits decreased $35 million at 12-31-20. from the third quarter, largely driven by a decrease in our correspondent balances. Our core market deposits are continuing to hold large levels of deposits consistent with the prior two quarters. Deposit costs declined nine basis points in the quarter as compared to the adjusted third quarter deposit rate, which excluded the amortization of the swap expense. We continued to lower deposit rates in the fourth quarter, which further decreased deposit costs and will be fully realized into 2021. Our excess deposit balances are being strategically addressed through continued pricing opportunities, focusing on loan growth, purchases within the investment portfolio, and the continued runoff of higher price deposits. On slide 9, our average loans were relatively flat for the quarter at $2.1 billion. Excluding our PPP loans, average loans decreased by $4 million as we saw line utilizations decline to 46.2%. On an end-of-period basis, loan growth, excluding PPP, increased $19.6 million, or 4.6% annualized over the prior quarter, as we continued to build out the Knoxville market and strengthen and grow our loan pipelines. Total PPP loans were $182 million at the end of the quarter, down $20 million from the third quarter. The loan yield was 4.48% for the quarter, relatively stable with the prior quarter. On slide 10, as Tim mentioned, our non-interest income continued to be very strong for the quarter, with record levels of revenue in our SBA business at $916,000 and strong fees in TRINET. Mortgage fees, while down from a record third quarter, continued to remain very strong. On slide 11, we provide additional information regarding the continued strength and strong quarter in our mortgage business. Decreased volumes in mortgage did drive a decrease in revenue for the quarter from our record third quarter. Slide 12 shows our operating non-interest expenses were $19.4 million for the quarter, which resulted in an operating efficiency ratio of 56.85%, driven largely by cost savings from FCB, continued expense discipline, and the strong fee business. With that, I'll turn it over to Chris Teets, who will discuss our credit positions.
spk05: Thank you, Dennis. Turning to page 14, let me start by saying, again, we are encouraged by the resiliency we have observed in our communities, our customers, and our Capstar team as we have all confronted the effects of the pandemic. We have fared well through the course of 2020 as this pandemic has evolved. To think of the uncertainty that we faced less than a year ago and to compare it to the focus we are gaining while looking to the future is heartening in many ways. Through this period, we have maintained consistent commitment to enhancing our strategic orientation as a community bank focused on in-market organic growth. This is evident with continued reductions in our shared national credit exposures to less than 7% of our portfolio and continued focus on relationship development within our geographic markets. We continue to maintain a level of in-market transactions exceeding 95%. These changes not only fit our strategy, but also enhance our ability to manage risks successfully and deliver consistent results over time. From an asset quality perspective, we remain committed to robust monthly reviews of borrowers experiencing continued pandemic impact and borrowers that are criticized or classified. We evaluate each against four criteria. First, we make a forward-looking assessment of the direction of risk in their operating performance. Second, we evaluate the adequacy and sustainability of their cash flow. Third, the quality and coverage provided by pledge collateral and liquidity is evaluated. And finally, we look at the capacity and willingness of their owners and guarantors to support the borrower. Consistent with observations we shared last quarter, we are generally seeing stability or improvement in the direction of risk in the vast majority of reviewed credits and believe that those with lingering impact from the pandemic are generally well secured, adequately capitalized, and in many cases have access to external capital if needed. This is reflected in stable, criticized, and classified loan levels from quarter to quarter and a reduction in payment deferrals to about 3.7% of loans, involving a relatively small number of borrowers operating in the predictable sectors, including hotels, tourism, and entertainment. Since there is a lot of attention on hotels, let me give you a little additional insight. First, hotels account for just under half of the 3.7% in borrower balances with payment deferrals. Hotel balances on deferral account for less than one-third of our $96 million hotel portfolio. So two-thirds of our hotel exposure is continuing to pay on or has returned to original repayment terms. At 1231, 87% of our hotels are rated pass. We have also stress-tested each of the transactions in our hotel portfolio against pre-pandemic valuations, and in the event of default, both the individual loans and the aggregate portfolio easily withstand value stresses in excess of 30% or more. I reference 30% as a benchmark simply because this is higher than the general consensus we here discussed in various forums in which we participate where short-term value impacts for hotels are discussed. In aggregate, while the future remains uncertain, we are hopeful that, with the vaccine's rollout, activity will return to affected sectors in coming months. In the meantime, Our belief is that affected borrowers have ample staying power to bridge the gap in time, and we continue to reassess this regularly. Turning to the next page, classified assets remain low, and our overall losses continue to remain at low levels. We note that delinquencies are elevated from prior periods. It is important to note that approximately 40% of these delinquencies are directly related to transactions that were matured and pending renewal at 1231. Finally, we are continuing to assess and bring focus to the lingering effects of the pandemic. We maintain a conservative posture in our assessment of the allowance for loan losses. While we remain hopeful in our current assessment, we believe it is appropriate to maintain a conservative posture as lingering uncertainties resolve themselves in coming months. As in the past, we continue to present a couple of different views of the allowance adjusting for purchase money marks and or removing PPP loans, whether on a gap or an adjusted basis, we see the range is conservatively biased, regardless of how one chooses to assess that or view it. With that, I'll turn it back to Tim for closing comments.
spk07: Okay. Thank you, Chris. Operator, we're now happy to answer questions.
spk01: Ladies and gentlemen, if you have questions at this time, please press the star, then the number one key on your touchstone telephone. If your question has been answered or you wish to remove yourself from the queue, please press the pound key. One moment, please, for our first question. And our first question comes from the line of Graham Dick from Peak Park, Your line is open.
spk04: Hey, guys. Good morning. Good morning, Graham. I guess just starting on credit, can you talk about what drove the increase in loans 90 days past due? I think it's just a little over $4 million now. Was this just matured loans that were pending renewal, kind of like you mentioned in the deck, or was there any actual credit migration of note here?
spk05: Yeah, generally it falls in the category that had to do with the maturing loans pending renewal.
spk04: Okay, great. And then looking at SBA, they're obviously a great contributor to fee income again this quarter of about $400,000. I know this division is still pretty new, but can you give me an idea of kind of what's driving growth here and where you might think the run rate might shake out in 2021? Sure. You think it might be close to that 3Q level of, I think, about 500,000?
spk07: Sure. We actually think it's closer to the fourth quarter level and can do even more. The challenge is, and this isn't really a challenge because we're glad to help, is it's PPP3. So that team is now fully focused on executing PPP, which takes their game off of their normal SBA business. But If you think long term, it's a very talented team that came over maybe two years ago. And, you know, it takes some time to get set up, their processes, their centers of influence referrals, and was really proud. We put a business plan together actually entering last year with the goal of doing about a million a quarter. And, you know... first quarter was spent sort of getting going. And then second quarter, they just dominated all their time on PPP. So I think the second half of the year proved out their business plan that they can get up to about a million a quarter. So we're very optimistic about that. I think we just have to wait and see this year how much pandemic we still have because they're, they're distracted right now in first quarter, but we're real excited about their prospects.
spk04: That's great color. Um, and then, I know you guys took a lot of that excess cash this quarter and put it into the securities book. It looks like you still have a fair amount of liquidity on the balance sheet. Do you think there could be any incremental additions to the investment portfolio? And how are you thinking about balancing that with future loan growth opportunities that might be a little further down the road?
spk07: Well, obviously everybody would love to put it on with loans, right? And we don't want to be imprudent and put on bad loans. It's a really balanced approach, and I'll let Dennis add to that, but we're looking at five or six different things, and certainly we could go buy a ton of securities like anybody today, and you may earn 50, 70 basis points. We don't want to hurt our interest rate risk, and so we're really trying to look at the return on capital of investments, and we've done some securities. We've actually tried to run some deposits off that were non-core, and Dennis, do you want to add other strategies?
spk06: I would just say, Tim, we're monitoring it. We're doing a number of things. We've bought a lot of sub-debt, a lot of investment securities in the fourth quarter. We may be able to do some more. We obviously have other things that we're looking at. Of course, we are monitoring our capital position as well, and so we have a lot of things in the pipeline. The liquidity ratio was close to 23%, so plenty of liquidity, a lot of excess deposits, and we'll continue to be aggressive in pricing those deposits downward. as we move into 2021. Okay, thanks for that.
spk04: That's all from me, guys. Congrats on a good quarter. Thank you very much, Graham.
spk01: Thank you. Our next question comes from the line of Jennifer Demba from Two Securities. Your line is open.
spk08: Thank you. Good morning. One of your peers in South Dakota sold some hotel loans this quarter. I'm wondering if that would be willing to consider if the pricing were favorable enough.
spk05: Jennifer, your question broke up. Could you repeat it, please?
spk08: Sure. One of your southeast peers sold some hotel loans during the fourth quarter. Just wondering if that's something Capstar would consider if the pricing were favorable enough.
spk05: Well, Jennifer, as we mentioned earlier, 87% of our hotels are pass-rated. We would typically look at something like that as an offensive step to avoid losses. Right now, we think that our assessment on a transaction-by-transaction basis of those borrowers is favorable. Their capital structure and liquidity is good. And our pre-pandemic valuations are strong because we still adhered to a high cash equity underwriting model on the front end. So I would say we would consider anything, but favorable for us would have to be, you know, par, but they're good customers to us.
spk08: Okay. And the revenue growth environment is going to still continue to be pretty – in this year – What kind of expense growth does CatStar envision this year?
spk07: I don't think we want to give any guidance. We're still coming out of the FCB, which added expense, and we're taking our estimated cost saves out, so we're getting to our normalized base. I would say we're focused on discipline management. I don't see a lot of capital investments, so I would think it would be hopefully pretty close to the fourth quarter run rate. And, you know, you're right, revenue, the economy is uncertain, so revenue and loan growth is tepid. We're certainly looking for strong loan growth, and we're looking for additional bankers to hire. And then I'm hopeful, as is Dennis, that our margin is near stabilizing. And so I think this is going to be a year we're still excited about our fee businesses. We're going to try and get the balance sheet going again. and try and be very disciplined on the expense side.
spk06: Hey, Jennifer, this is Dennis. I think that we're pretty well finished with the conversions and the integration of our acquisitions, so we'll have some savings that will be fully realized going into 2021. We also see, with Darling's assistance, some upside opportunity in our net interest income and our net interest margin, especially if the yield curve continues to steepen a little bit as the economy begins to open up. And then we've got really a tight focus on our regular ongoing general operating expenses. I'm really optimistic that we've got a pretty stable situation from a revenue and an expense standpoint.
spk07: Do we still have you?
spk08: Yes, thank you.
spk07: Okay. Thank you, Jennifer. Thanks, Jennifer.
spk01: And our next question comes from the line of Catherine Miller from KBW. Your line is open.
spk02: Thanks. Good morning. Hey, Catherine. Hi, Catherine. Hey. I know we've talked about capital management a lot and just wanted to get your updated thoughts on buybacks and what signs in the economy you're looking for to where you think you'd be comfortable starting to buy back stocks.
spk07: Yeah, good question. And I'll just, you know, for the, let's go back a little bit. I'll say when I joined 18 months ago, one of the pieces of feedback, and you get feedback from everybody, right? Everybody has thoughts and you try and digest it all. But one of the feedbacks I got maybe in the summer of 19 was that Capstar had run on excess capital and buyback opportunity or increasing the dividend. People even talked about a one-time dividend. So I think we took that input, and we talked about it a lot, and we actually chose to do the FCB deal, if you remember, part stock, part cash, because obviously you'd like to find profitable investments to use that cash as priority one. And if you can't find the loan growth or an acquisition, then do something. So we changed that to that mix, and we're going to use our internal cash, which would have lowered some of our ratios and put it to use, And then COVID hit, and just one of the things I think that's great about Capstar is we're very focused on risk management. And so rightly or wrongly, we wanted to be conservative this time last year and elected to raise sub-debt. And so we just never wanted a situation, not knowing how deep it would get, that we would ever be in a position that we had bought back stock at 15 and then needed to issue it lower later because it was just a horrible event. In hindsight, you know, it looks like things are not going to be as bad as maybe we all thought it could have been last second quarter. So, you know, Monday morning quarterback, maybe there was some periods that you're like, shucks, we could have bought some stock. So we've studied it since August, and we've run a burndown analysis between myself and Dennis and Chris Teets and Steve Groom and Mike Fowler, and we've probably met, you what we think the maximum loss could be, what do we think our earnings potential would be, what price we would buy at. It got discussion this week at our board meeting. So I would say it's under discussion. We really just wanted to make sure it was clear and that our shareholders were protected. And I can't say much more than that, but we do think our stock price is an attractive price, but we don't want to jeopardize the bank or our capital base.
spk02: I'm with Sadiq. as you look at it, do you feel like it's more likely that you'll see reserve relief before you buy back stock? Do you kind of look at the, I guess there are two kinds of ways of capital management or kind of indication that you're comfortable with the credit. How do you, maybe in that sense, how do you think about how, how early we could see reserve release from y'all as we move through next year?
spk07: Uh, I'm not going to really comment on that. I mean that, that really, I think all banks, We all comply with GAAP. We want to, and we all are required to. I think this past year, the qualitative measures became much more important, and there's still a lot of uncertainty with stimulus coming out, and is that propping the economy up, second waves of the virus, third waves of the virus. So we're going to let the model tell us based on our credits. But we do have a healthy reserve based on what we felt the potential risk could be. And so we're monitoring to ensure there are appropriate levels there. But at the same time, we've got great profitability in our capitals building up. So I view them together and I don't view them together. And I would just say that at our capital levels, we do feel we have more capital than we really need to run the bank long term. We agree on that. but we just would never want to do anything to jeopardize the shareholders. So I view them a little different, Catherine, and I think that we will be looking at share buybacks in the appropriate time and the appropriate pricing this spring.
spk02: Great. That's helpful. Maybe just one follow-up on credit for you, Chris. Can you talk a little bit about the very minor, but just the minor increase in NPL and what those credits were?
spk05: Yeah, well, first of all, in terms of NPLs, there was an increase that came through the mergers that occurred in general, but it was not outsized by our view. And then again, the other point I'd note is that the over 90-day delinquent credits would include some of the impact of the pending maturities that were – the maturities pending renewal at year end.
spk02: Okay. So the linked quarter increase in non-performing loans, would you view that as pandemic related or more acquisition related?
spk05: No, in terms of specifically to non-accruals, that was acquisition related.
spk02: And what type of credits?
spk05: Well, it's a general pool. They have a large base of consumer credits, and we manage those under the retail consumer credit reporting rules and so on. And so we put those into doubtful categories pending their resolution with their delinquencies and so on. So there's no one credit that's driving that if that's what your concern is.
spk07: Yeah, largely what we experienced, Catherine, is these were two privately held banks and very well run, very good ratings, but they were private. And so they didn't have, I think, the same discipline at quarter end of getting all loans, matured loans, renewed. And we did the conversions on these in October and November to push them out. Interestingly, you know, we announced this deal last January. We thought it would be more conservative to push it out thinking COVID would be really bad in the summer and that it would get better. Um, and so what happened is that happened actually as COVID was increasing. And so just a lapse, a lapse internally of getting them to our public company quarterly discipline. But it was not, it was just an array of, of, uh, of loans that matured across those banks.
spk02: That makes sense.
spk01: Great.
spk02: Thank you.
spk07: Sure.
spk01: And our next question comes from the line of Bill Desolin from Titan Capital. Your line is open.
spk03: Thank you. My questions are around the mortgage business. What do you view as a normal level of origination activity? And I'm thinking in terms of gain on sale.
spk07: You know, that's hard to answer. I don't know that a mortgage, even if we had our mortgage person here, I'm not sure. That's such a cyclical industry, number one. Number two, Nashville is such a hot market. It is unbelievable how many people you meet here that are moving here from California, Chicago, and New York. I mean, it's just, it's phenomenal. And So I want to give you an answer, but I don't want to give you a wrong answer. I guess what I would say, and I wish our mortgage person was here, I'm going to be off a little bit, Bill. But I think for us, a normal year would be, I don't know, $400 million to $500 million of annual production. And this year, I don't have the exact number in front of me, but I think we were up, Lynn, maybe $700 million or $800 million in production. And so just a phenomenal year, but does that get you in the right direction?
spk03: It does. That's quite helpful. And then I'd like to take this a step further and another, I guess, semi-unanswerable sort of question. At what level of interest rates do you think that you'll see the mortgage, one, mortgage refi slow down, and two, the purchase activity where it actually starts to hurt real buyers?
spk07: That may be better understood. for us, and I hate for everyone to not get the answer, but that may be better for us to do a follow-up one-on-one, because I don't want to speculate, and it really would be better for us to get that information from our mortgage head, Hart Weatherford, but certainly all of us across the country are benefiting on this refi boom, and you hear this in every cycle. Even a couple years ago, you heard, gosh, every loan is going to have been refied, so there's not going to be any refi opportunity. I think people move and change houses so much. I'm finding that there's always an opportunity. But certainly you would think, Bill, it's going to run out. One of the things that I think is great about Capstar is if you look at this page we have up right here, I don't know, Lynn, are they seeing the same page?
spk06: It's page 11. It's page 11, Bill, in your earnings deck. It gives you a little bit more about the trend than the trending the revenues and how the third quarter was a record quarter.
spk07: Yeah, so what I was going to say is that the refi, for us, the refi is 60% roughly in these quarters. But historically for Capstar, the beauty of Capstar's mortgage shop is it's been a purchase money shop. So absent this last 12 months, I'd say the $400 million to $500 million range with probably 80% purchase money. And with the size of Nashville and the growth of Nashville, I think there's a very good core mortgage business here that's benefiting by the excess right now.
spk03: Great. Thank you. And I do want to pick up on your point that you have people moving from Nashville from it sounds like around the country. Is that different in some way? or is that simply a continuation of a trend, no acceleration, that's just normal Nashville?
spk07: I'd say it's an acceleration. So what's different is, for instance, I moved here, say, 18 months ago, and I'm going to forget, I think it was Mitsubishi's, two that come to mind, well, three, Three that come to mind, and I know other cities are experiencing this, but this is one of the five or so cities that are really experiencing it. Right after I came, I think it was Mitsubishi that's moving their North American headquarters from California to here. So that was way pre-COVID. There was Alliance Bernstein, and then there was Amazon that's built a big building downtown. So there's several of that that already was occurring pre-COVID. What's happening now is I'll give you a couple examples just quickly. It's non-company related. There are people that are quitting their jobs and just packing up and moving. So we unfortunately lost an outstanding banker, as happens at the beginning of the year, and we hated to see that person leave. And we've already replaced them with somebody that's going to start Monday with the same background sort of national healthcare lending. It's the person's background, and they just moved here from California. And they've been here two weeks. And when you ask them why they came here, their daughter's in school at Indiana University, which is just right up the road, and just all that's going on in California. So that had nothing to do with the company. That person just wanted a change. Had lunch this week with a gentleman that grew up at Goldman Sachs, started his own fund and advisory business, and moved here last summer due to COVID. You know, no taxes in Tennessee. You know, Manhattan is tough right now. And brought three girls and his wife here, has 14 employees, manages $400 million, and took an office space right next to ours and went to lunch with them. And so, you know, I went to the dentist recently, and they told me I'm going to be off a little bit. I said, are you all back to full staffing? They said, absolutely, full reservations and everything. This is one dentist office. They said they're getting five new calls a month of people saying, are you taking new patients? And they said that they're all coming from California, Chicago, and New York. So I would say the change bill has gone from companies saying, wow, we want a lower cost place, better climate, better place to live for employees, to where there's individuals that are just saying, you know, unfortunately it's time to leave a larger city and I want a new place. And I'm sure there's other places like Charlotte or Austin, Texas, but Nashville is getting their share. And I think it's the climate, the excitement. I think it's the no state income tax, a lot of reasons.
spk03: Great. Thanks for all the perspective. Sure.
spk01: And we have a follow-up question from . Your line is open.
spk04: Hey, guys, just a quick housekeeping thing here. I was wondering if you could share with me the level of PPP fee income this quarter?
spk07: Dennis, would you? No. You mean the PPP accretion? Yes. We may have to look that up. Let's follow up on that. I don't know that we have that number exactly right here on the sheet, but, Graham, we could follow up. It was nine basis points. If anybody else wants that. But certainly there's PPP accretion coming in.
spk06: Graham had accreted nine or eight cents of PPP accretion into the margin. So if you want to do that. Eight basis points. Eight basis points. I'm sorry, eight basis points into the margin. So if you want to do that math, you could do it, or I'll be happy to – I'll be happy to get that for you later.
spk04: Okay, great.
spk06: Eight basis points on the margin would give you the amount of PPP accretion that came in in the quarter.
spk04: All right, that's great. We can follow up after the call on, I guess, other PPP details.
spk06: There was about $20 million, I think, of PPP loans that were forgiven or reduced or whatever, and so... We have still remaining at the end of the year 182 million of PPP loans that will ultimately here very soon be being forgiven or paid or whatnot. Now, you're also going to have, you know, we're in the middle of the next round of PPP, so we're going to have some more of this coming in.
spk04: Okay, great. That's helpful. Okay, great. Thanks. Yep.
spk01: And I'm showing no further questions. At this time, I will now turn the call over to Teen Schools President and CEO for the closing remarks.
spk07: Okay. Well, I just want to thank everybody for calling in, and I want to thank our employees. You know, Capstar had a wonderful year, and we've had a lot going on for a while. You know, unfortunately, we had our chief operating officer pass away at the end of 2018. CEO transition, and Athens was acquired. And so to accomplish all we did last year is just phenomenal, and I think it speaks highly to what we can continue to do. So we just appreciate you all following us. It's going to be another interesting year. We're going to continue to work hard for our employees and our communities and our shareholders, and we look forward to updating you after first quarter. So everybody stay healthy, and we'll talk to you at that time. Thank you.
spk01: And ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect. Have a wonderful day.
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