Greetings, and welcome to the ConnectOne Bancorp, Inc. First Quarter 2021 Earnings Call. At this time all participants are on a listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I'll now turn the conference over to your host, Siya Vansia, Chief Brand and Innovation Officer for ConnectOne. You may begin. Good morning, and welcome to today's conference call to review ConnectOne's Results For the First Quarter of 2021 and to update you on recent developments. On today's conference call will be Frank Sorrentino, Chairman and Chief Executive Officer, and Bill Burns, Executive Vice President and Chief Financial Officer. The results, as well as notice of this conference call on a listen-only basis over the internet, were distributed this morning in a press release that has been covered by the financial media. At this time, let me remind you that statements and assumptions in this conference call contain or are based upon forward-looking information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to numerous assumptions, uncertainties, and known or unknown risks, which could cause actual results to differ materially from those anticipated. These risk factors are more fully discussed in the company's filings with the Securities and Exchange Commission. The forward-looking statements included in this conference call are only made as of the date of this call, and the company is not obligated to publicly update or revise them. In addition, certain terms used in this call are non-GAAP financial measures, reconciliations of which are provided in the company's earnings release and accompanying tables or schedules, which have been filed today on Form 8-K with the SEC and may also be accessed through the company's website at ir.connectonebank.com. Each listener is encouraged to review these reconciliations provided in the earnings release together with all other information provided in the release. I will now turn the call over to Frank Sorrentino. Frank, please go ahead. Thank you, Siya, and good morning, everyone. We appreciate you joining us today. As you've seen, ConnectOne had a strong quarter and continues to build momentum as we move into the post-COVID economy. The first quarter, highlighted by solid financial and operating results and diligent execution against our strategic plan, is a strong indicator of the performance we can expect through the rest of the year. Our proactive position, coupled with the improving operating environment, has allowed us to take advantage of many growing market opportunities. This is the third quarter in a row that operating earnings exceeded 2% of assets, and notably, that's increased sequentially each quarter. Our loan production was robust. We utilized the full range of the company's banking expertise to support our clients, who are not only financially strong but have also realized new opportunities through this pandemic. We stand ready to support them as they expand their businesses. At the same time, we saw a large increase in paydowns and payoffs. There are a number of reasons for this, which we believe are short-lived or one-time events. Our strongest clients are sitting on large cash balances due to the liquidity that's in the market, resulting in paydowns on lines of credit. Our pipeline in construction saw unusually large numbers of completions and resulting payoffs as timelines were affected by the early COVID-related shutdowns last year, combined with delayed starts for new projects. Extraordinarily low interest rates through last year caused a higher than usual level of refinances that we chose not to participate in as we remain disciplined in our approach. We're seeing these events normalize. As we begin the second quarter, there appears to be a slowdown in both prepayments and in payoffs. We are seeing strong demand across our markets, further building growth momentum, which can be seen in our existing loan pipeline, which I'm happy to report is at the highest level in the company's history. We continue to expect net loan growth to accelerate in the back half of the year. Turning to credit, we continue to see better than anticipated strength, and no doubt we're in a much better position than was originally anticipated at the start of this pandemic. We implemented the CECL accounting standard on January 1st, and Bill will provide a little more detail on this. In summary, our one-time adjustment was modest. During the quarter, we released a small portion of the reserves built over the past year based on the improving macroeconomic outlook. Our deferment portfolio declined modestly as of the end of the quarter, and the total amount of loans where all payments have been deferred is now less than $50 million or less than 0.8% of our total loans. Total deferments are expected to decline significantly over the remainder of 2021, and we believe our reserves reflect adequate protection against any potential losses. I'd also like to note that our net interest margin continued to expand during the quarter, the 6th consecutive quarter that margin widened. We're proud of our results this quarter, and we remain disciplined in managing our business as we look forward towards growth. As the vaccines continue to be deployed throughout the New York metropolitan area, we're anticipating a significant uptick in our client activity. We're geared up for meaningful growth for the remainder of the year, and as the economy opens up even more, we're preparing our team to capitalize on increased opportunities. Now, speaking of ConnectOne's team, they've returned to a work environment, and I'm proud of the work from the office environment and the resiliency that they demonstrate each and every day to take care of our clients. You have heard us discuss for some time that we're progressively moving towards a hybrid banking model. For us, the early investments we've made in technology and our infrastructure allowed ConnectOne to be well prepared to respond to the pandemic. We plan to further develop this model and our strong technological foundation as we move into the future state of banking. As always, ConnectOne remains a growth-oriented company. With signs of stability and expansion returning, we're well-positioned with the capital strength necessary to take advantage of these opportunities and to maintain or even improve our best-in-class performance metrics. Some of which are our high returns on Capital Common Equity, the building of tangible book value per share, and improving on our best-in-class efficiency ratio. With those things in mind and with that outlook, today, we announce the 22% dividend increase to go along with the resumption of our stock repurchases. Over the past couple of years, we've seen notable technological shifts, including reliance on digital platforms, virtual deposits, and online financial tools. We continue to innovate and invest in our infrastructure to enable us to deliver the quality products and services that our clients demand. At the same time, as client behavior evolves, we continue to reduce our retail brick-and-mortar footprint relative to the size of our balance sheet and client demand. In the first quarter, we further reduced our branch count, completing the previously announced sale of two branches. It's interesting to note that over the past five years, we have doubled the size of our assets, our loans, and deposits while only increasing the net branch count from 21- 24, including the integration of two acquisitions. Also as a quick update, we continue to build our SBA lending platform in our marketplace to serve our existing clients and to support small businesses in the communities where we do business. This initiative has been gaining traction, and we see opportunities over time to generate revenue through an expanded SBA division. Now turning to BoeFly, we see terrific growth in that platform, which is generating more traffic through its proprietary products, bVerify and the patented bQual, and this in turn will lead to increased fee generation through loan referrals. As we scale and extend BoeFly's competitive position, we're seeing opportunities to further enhance BoeFly's platform and add complementary products to its offerings and build BoeFly into a robust business marketplace. I look forward to updating you on our progress in the quarters ahead. We believe that many more opportunities exist to partner with fintech companies and to build more value while modernizing financial services. As you may have seen, ConnectOne has joined with dozens of other banks to participate in the JAM FINTOP Banktech Fund, a fund dedicated to investing in the future ecosystem for community banks. At ConnectOne, we've long believed in the power of partnership, and we believe this opportunity, supported by the country's leading banks, will provide a high level of diversity to further fuel innovation. Finally, a few thoughts regarding M&A. 2021 is already shaping up to be an active year. As in the past, strategic acquisitions are an important component of our long-term growth strategy. Whether we participate directly or not, we see incredible opportunities to attract new talent, add new capabilities, as well as benefit from others' activity. At its core, ConnectOne is a growth company. We've built a dynamic team that's accustomed to high levels of production, an operational model that can continuously evolve its technology and infrastructure, and the ability to successfully execute franchise-enhancing M&A opportunities. Given our culture and our strong capital position, we're poised to accelerate our strategy and capitalize on market opportunities to drive substantial growth. This is an exciting time for ConnectOne. We look forward to sharing our progress with you each quarter. I'll now turn the call over to Bill to provide a little more detail on the quarter's financial performance. Bill? All right, Frank. Thank you, and good morning, everyone. As Frank alluded to, the first quarter was a strong start to the year. Not only did we have a very solid quarter, I believe we are also very well-positioned to excel as we continue to come out of the pandemic. Let me go through some highlights for the first quarter. Loans grew by 2.5% annualized, and that was aided by the second round of PPP. Meanwhile, our loan production was very strong, but a lot was originated was offset by elevated prepayments. We are now, though, seeing strong production trends, and that's combined with declining prepayments, thus loan growth is expected to accelerate. In terms of deposits and funding, the mix continues to improve. Our average non-interest-bearing deposits as a percent of total deposits improved to 22.5% this quarter, that's from 21.6% in the sequential fourth quarter, and up a lot from 17.8% one year ago. We continue to drive strong growth in core interest-bearing deposits, while the higher rate CDs, higher rate wholesale borrowings, and subordinated debt all decline. We still have a large amount of CDs at 2% that will be rolling down in rate or just off the balance sheet. The net interest margin widened for the sixth consecutive quarter, coming in at 356 on a GAAP basis. That largely reflects continued improvement in the cost of funds, combined with a well-structured loan portfolio, which has repriced slower than most other banks. Going down the income statement to non-interest income, that was flat for the quarter. I do realize it included the previously announced branch sale. Excluding the sale, we were down slightly. There were small declines in fees and BoeFly investment income, as well as gain on sale of loans. My expectation is that those items will rebound in the quarters ahead. Of particular note, BoeFly's recorded revenue fell sequentially, but the traffic on its website is increasing. Based on that, we are anticipating increases in loan referral fees in both the second and third quarters of this year. Turning to non-interest expense, that was flat sequentially for the quarter. Our expectation for the rest of the year is modest expense growth, certainly within single-digit growth. Some of that will be contingent on how strong a revenue growth we have. Our efficiency ratio will remain low and continues to be in the top tier of the industry at around 40%, and we will continue to drive efficiencies throughout the rest of this year. In terms of performance metrics, we, like many others, benefited from the reserve release with the return on tangible common equity exceeding 19%. Return on assets was very high as well at 1.8%. Even on an operating basis, the PPNR return on assets was 2.06%, very high relative to our peers, and that's the fifth consecutive quarter we've seen improvement there. Let's turn to loan growth and margin expectations. In terms of loan growth, we are optimistic that from here on out to the end of the year, we can produce double-digit annualized growth rates. As Frank mentioned, our pipeline's the largest it's ever been. Keep in mind, we are a growth company, so I am optimistic we are better prepared than most to capitalize on a recovering economy by actually closing on more deals with better credits and higher spreads. As for margin, we continue to run at historic highs for us, now over 3.5%. Structurally, we still have funding benefits coming with nearly $800 million of high-rate CDs maturing over the remainder of the year. However, that continued low rate environment combined with loan growth will at some point have a contracting impact on the NIM even as we deploy excess liquidity. Going forward, I have to say we might see some modest margin compression, especially with larger than expected loan growth. Although this could be lessened if the yield curve steepens. You know as always, I've mentioned this before, when it comes to net interest margin, there are a lot of moving parts, including prepayment fees, the dynamics of the PPP program, excess cash on hand. My overall feeling's that the margin although it could compress to some degree, is going to remain relatively wide and certainly wide enough to support superior returns on equity and continue to drive valuable long-term creation of net interest income. Let me provide a little color on our transition to CECL, which took place on January 1st of this year. You might be aware, we've been running the CECL model parallel to the incurred loss model over the past year. We just put off the implementation of it on our financial statements, and we started it January 1st of this year. Our one-time adjustment recorded on January 1st was about $9 million. That included the CECL for the loan portfolio as well as for loan commitments. About $5 million of that comes from non-accretable discount gross- ups that came out of purchase accounting. That leaves only $4 million as a charge to pre-tax capital, and that $4 million is pre-tax. It was only about a $3 million hit to equity. As I mentioned on our last call, we didn't expect CECL implementation to have a significant impact on our balance sheet, and that did turn out to be the case. Now during the quarter, commencing right after the one-time catch-up entry, we had a release of reserves of $5.8 million, and that's due to the improving Moody's economic forecast and what it does to our CECL model, especially with regard to future unemployment rates and CRE pricing trends. Going forward as an industry, I think we're going to see more volatility in provisioning, especially in light of changing economic forecasts post-COVID. In terms of capital deployment, the last 12 months, our capital retention has been strong, putting us in a great position with excess capital to do a few things. We're going to grow organically at double-digit pace. We did announce an increase to our cash dividend, and we're resuming our stock repurchases. The level of repurchases over the course of 2021 will depend on our earnings retention and growth rate, but I do expect us to remain active for the remainder of this year and probably beyond that. A couple more things before I turn over to Frank. I want to expand a little on deferments. The total level fell just slightly over the first quarter. As m any of the modifications we made in the latter half of 2020 are contractually in place until the second quarter. The expectation is that over the next couple of months, that deferral balance is going to drop by about 50%. In addition, I think Frank mentioned this, but I want to point out also that less than 25% of that $200 million is full payment deferral. The rest, some $150 million, were modified with some payments continuing. Just looking at what's in the pool, we just don't see much in terms of potential losses and believe we remain adequately reserved at this point. Just the last point before I turn it back to Frank is our effective tax rate for the quarter. We did increase it to 24.8%, a little higher than I think the expectation was, and that reflects a significantly higher level of pre-tax income due both to strong operating performance as well as the reserve release. If pre-tax income rates fall, the tax rate could be a little lower going forward. Before getting into questions, I'll turn it back over to Frank for closing remarks. Frank? Thanks, Bill. I'd just like to reiterate a few key points that you did hear me mention before. Our earnings profile is strong. Our balance sheet and credit are in a good place. We continue to grow organically, and we see a strong growth rate for the rest of the year. Our capital position is strong. We have a valuable franchise and continue to benefit from multiple streams of income and increased momentum across multiple platforms. We're a skilled acquirer with a strong track record of integrating both traditional and fintech-focused transactions quickly and effectively. We're continuing our digital enhancements and our investments, we continue to improve on our best-in-class efficiency. Looking ahead to the remainder of the year, we're optimistic that the operating environment will continue to improve and expect it to gather momentum throughout 2021. We're excited about our future, we remain confident in our ability to drive value for our shareholders, our team, and our clients. With that, I'll be happy to take your questions. Operator? And at this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for questions. Our first question is from William Wallace from Raymond James. Please proceed with your question. Hey, good morning, guys. It's Amar from Raymond James, filling in for Wally. Hi, how are you? Hey, good. Good morning. Just a couple of quick model cleanup questions for me. Okay. You guys gave the period PPP, the period end PPP balance for the quarter. Do you have the average PPP for the quarter? Yes. I do. It was something like $430 million was the average PPP balance. For the first quarter. Correct. Yep. Hold on. I have that here, yeah. Sorry. It was $417 million for the first quarter, $405 million for the fourth quarter. Perfect. Thanks, Bill. Then just a second question on PPP? Do you have the loan forgiveness figure for the quarter? If any additional PPP loans that you originated, do you have that figure as well? $500 million. $185 million. In round two, it's $185 million. For the originations? For originations in round two. Okay. How about the forgiveness that you guys saw from round one this quarter? Oh. Should have that number. About $150 million in forgiveness. Okay. I'm not sure exactly what you're using those numbers for, but we are being conservative in terms of the income we're recording, and I did disclose that in the release. The return on those loans is about 3.1% or 3.2%. We've got another approximately $10 million in unrecorded income related to PPP. No, that's great. Yeah, we're just trying to back into the core margin ex the PPP. Right. Forecast forward. Right. It's 3.1%, 3.2%. Including the 1% that's contractual on it, plus the fees- Right Is what's included in the margin, okay? Okay, that's very helpful. Thanks for taking the questions, guys. I'll hop out. Sure. Our next question is from Michael Perito with KBW. Please proceed with your question. Hey, good morning. Thanks for taking my call. Hello, Michael. I had a couple questions on the fintech side first. It was good to hear that seems like the activity on the BoeFly platform is kind of percolating here. I imagine as the economy opens up, that'll be a nice tailwind for that platform. I was wondering if you could just give us a quick reminder about near-term, long-term. If there's success and growth there, what type of impact to the financials we can see? I mean, is it fair to think near-term, it's more fee-driven, but then as the product roadmap around it expands, it could impact NII more materially? Just any additional thoughts or reminders you guys are willing to provide on that platform as the growth seems poised to accelerate here? I'll let Bill speak to some of the numbers there. Just in general right now, what we're looking at is we continue to invest in that platform to make progress in two ways. One, to further develop what their baseline business is, which is this business marketplace, which we think has a lot of value in this franchise market space. Two, we find that there's a number of other business opportunities that that platform allows us to engage in, and we're developing those as well. Right now, any revenue we drive, and even if we were to drive multiples of the revenue that comes off the BoeFly platform, we would probably reinvest it right back into the platform. I don't think you're going to see anything meaningful in the near term. Bill may want to comment a little bit. Yes. Well, it depends what meaningful is. I mean, millions would be great. We run at about, on average, $250,000 of revenue there per quarter. I do see already the signs of that increasing based on the activity on the platform. So it's $1 million a year, and the question is how fast a growth rate are we going to apply to that? There's a big universe of franchisors out there. We continue to try to increase the number of franchisors that use the platform, improve the usability of the platform, reduce the friction. It's getting people to use the platform that leads to loan requests, which leads to referral fees. One of our main focus is driving those numbers Very helpful. Kind of a similar question, but on the JAM Partners Fund. I imagine there's going to be some type of potential financial impact. Was just wondering if you could walk through that, even if it's multi-years out. Second is it correct to think about this more kind of as like an idea incubator for you guys to get exposure and help vet through fintech partners and potential platforms? Is that the more meaningful near term piece strategically, or just any additional comments there would be great. I think it's all of those things. I think it's a good opportunity to invest together with what we think are some of the best investors in the marketplace. I like the idea of getting together with other like-minded financial institutions who are thinking about the ecosystem in the same way, and certainly really like the idea of a fund that is fully dedicated to the banking ecosystem and not fintech opportunities that are looking to compete with banks. I think it does a lot of what you said. I think it provides us with a lot of opportunities, both economically based and just strategically based for the future, along with the ability to have a view into what's going on in the marketplace in real time. Great. Thanks, Frank. Just last one for me. It's good to hear about the double-digit kind of loan growth annualized expectation for the balance of the year. I was just wondering if you could maybe unpack that a little bit more. Where are you seeing the pipeline overall at record levels, any particular areas or pockets within that that are noticeably strong and you expect to drive that loan share growth and just any kind of updated views on the commercial recovery of the New York City metro that are relevant to share? I would say our pipeline right now pretty much reflects the diversity in our balance sheet as it exists. Each of the various teams that are working out there today are seeing opportunities. There's no one area that I would say is lopsided in a concentration. We're seeing great opportunities across the entire spectrum of the products and services that we provide. And likewise, across the various geographies that we currently have markets in. We're pretty happy about that part of it. I would also tell you though that we are seeing some tremendous opportunities for talent in many of those places as well. As I mentioned in my comments before, there's a lot of M&A activity going on in our marketplace, which is really dislodging some good people from different places, and we're taking advantage of that. Got it. To help you with your model, I just wanted to add that the rate on that pipeline is from about 350- 375 basis points. Got it. That kind of factors, I guess, just to wrap it all up here, the comment about adding talent and then the comment about the rate, those were both factored into your margin and expense comments previously, Bill, correct? Mike, would you repeat that again for Bill? I was just saying to just kind of close the loop on that. Your comments about adding talent and then the rate comment on 350-375 basis points, it's fair to think that those were both factored into kind of your near term expense and margin outlook commentary from your prepared remarks? Yes. Absolutely. Okay, great. Thank you guys. Really appreciate it. You're welcome. Our next question is from David Bishop with Seaport Global Securities. Please proceed with your question. Yeah. Thank you. Good morning, gentlemen. Good morning. Hello, David. Hey, sort of dovetailing or appending to Mike's question there. Frank, you noted the opportunity to pick up talent from some of the in-market consolidation. Obviously, you've been pretty active lately. Within that opportunity, are there any sort of loan segments or niches that sort of excite you more than others, or any sort of particular niches that maybe you're focusing on over and above others? I think we're seeing opportunities across the board. I think in some of the places where we might want to see some faster growth, in some of our C&I segments, we're seeing some great opportunities. We're also seeing some great opportunities in our CRE space, construction space. I want to say it's pretty much across the board. Got it. I think you noted within the preamble and within the release. Loan deferrals expect a pretty material decline in those. Just curious what you're seeing in terms of cash flow updates. Is that the paydowns or improvement there, is that sort of a function of fiscal stimulus or maybe sort of are more endemic of an economy that's reopening and cash flows are improving from the borrower standpoint? One thing we definitely have noticed a lot in our underwriting is specifically with our business clients. They definitely have cash on their balance sheets. Whether it came from PPP, whether it came from increased sales, whether it came from figuring out that they could operate their business with 50% of the employees they had before. There's lots of reasons why a lot of our clients are sitting on increased amounts of liquidity. And if they're sitting on liquidity and interest rates are at zero, they're not going to pay a credit line at 4%. Many of them are paying down their credit lines until business improves even more dramatically. We're seeing a lot of that. Again, I think that was a product of the time. I think those things are going to start to change as we continue to move forward, as more businesses are open in a full capacity, and as businesses start to normalize, whatever that means. Got it. I guess one final question. Bill, you noted, I think it was about $800 million, I think you said, in CDs that are maturing or rolling off. Just curious what the current pay rate is in terms of current time deposit offerings. Oh, it's about 2%. It's either going to come down or it's going to roll off. What sort of rate would they be rolling into at current offerings? 50 basis points or less, right? 50 basis points or maybe less. 50 basis points or less. Got it. Thank you. Again, as a reminder, if anyone has any questions, you may press star one on your telephone keypad. Doing so will ensure that you do join the question and answer queue. Our next question is from Zachary Westerlind with Stephens Inc. Please proceed with your question. Morning. It's Zach Westerlind filling in for Matt Breese. How's everyone doing? Good, Zach. How are you? Hi, Zach. Apologies if I missed this earlier. Did you guys give a guidance for 2021 loan growth ex PPP, like a mid-single digits, high single digits, something like that? We're hoping to get into double digits from this point out, from March 31st to the end of the year on an annualized basis. Got it. Thank you. I'm just kind of curious on the construction pipeline. I live in New York City. I feel like I've been just seeing a lot more construction activity generally. Was just curious if you've noticed anything picking up in terms of construction permits or activity in the pipeline. Yeah, I think we're seeing a lot of activity in the construction pipeline. As I mentioned in my previous comments, there were two different things going on with construction that actually negatively impacted us. Although Elizabeth Magennis, our President, would tell you it's a positive development, and that is that construction loans paid off at a higher rate in the first quarter. That was really attributable to jobs being shut down early on in the pandemic in the first and second quarters of 2020. A number of construction projects were shut down. Then the inevitable delay of restarting either those projects or new projects as we went through the balance of 2020 brought us to a place where we're here today, where we're having more payoffs than draws on new construction projects. The pipeline for construction at ConnectOne is very strong. We are seeing it across all of our markets, both in New Jersey and New York, and across various types of asset classes. I'm pretty bullish about construction right now. Clearly, when you talk to realtors in the market, there's just not enough new homes being constructed. Even the apartment space, which many thought may have been overbuilt is still showing high levels of demand both here in New Jersey and in New York City. There's actually bidding wars breaking out in parts of New York City on rental apartments, especially some of the ones that had large price declines. I think your instincts are correct. There's more cranes, more concrete trucks, more construction workers going back into the workplace. I think this all really bodes well for both ConnectOne and the markets in which we serve. Appreciate that color. That's really encouraging to hear. Then just one last question from me. Considering how well BoeFly has worked out for you guys, could you just discuss any other potential fintech acquisitions? Not specific companies, but more like tools that you'd like to have in-house or proprietary. I think we're really focused on a couple of different areas. We're looking at BoeFly as sort of the center of our universe. There's lots of opportunities to do things that are complementary or adjacent to what BoeFly does. Whether it's an infrastructure company, whether it's a payments company, whether it's something to do with data, whether it has something to do with AI to be able to speed up some of our processes. We're looking at things that create both a good client experience but also allow us to continue to build on our operational efficiency. Which I know we keep saying is best in class and is great, but I think for an industry, it's terrible. It has to go lower than where it is today. Those are the two things that I think are driving us. It's either how do we improve our client experiences or how do we get even better efficiencies out of what we do with the people that we have. Great. Appreciate that, and thanks for taking my questions. You're welcome. Our next question is from Frank Schiraldi with Piper Sandler. Please proceed with your question. Morning, guys. Morning, Frank. Just on the capital levels. You're accreting capital, even with double-digit loan growth. As PPP runs off, maybe you could continue to accrete capital. I'm just wondering your thoughts on capital levels today versus the end of the year, and if you would maybe consider getting more aggressive on capital return, more aggressive on the buyback, special dividends, that sort of thing. Any thoughts there? Yeah. I think I did mention it. Depending on growth, we would be adjusting our repurchase activity. Like I said, I expect us to continue to do that for the foreseeable future. We'll see. If the growth rate is a little bit higher, maybe we'll do a little bit less repurchases. If the growth's a little lower, we'll do more. We certainly feel that we're a little bit overcapitalized right now. Don't really want to say exactly what capital ratio we're targeting, but I do feel we're above where we need to be. Okay. Then I think you might have touched on the reserve to loan ratio as well, but in terms of if the economy continues to reopen, the environment continues to improve, uncertainty comes out, where do you see that reserve to loan ratio? Are there additional releases that we could see? Where do you see that migrating towards? We have less control, I don't want to use that word, over what that ratio should be because of CECL. To a large extent, we're tied into the model, and that model is tied to Moody's forecasts. For example, the forecast that just came out in the middle of April was better than the forecast at the end of March, and we used the forecast at the end of March. Right off the bat, we probably have a little bit more releases. I imagine at some point that's going to stabilize. As we grow our loan portfolio, we'll be adding reserves. Frank, it's hard to say. In terms of specific credits having issues, things are looking strong, I think not just for ConnectOne, but for everyone. I'm not sure what other bankers are telling you. It's hard to project, and I don't think it's going to move too much from where it is at the end of the day. Okay. Yeah, great. Thank you. We have reached the end of the question and answer session, and I'll now turn the call over to management for any closing remarks. Well, thank you. I thank you for all the questions. I hope you found this to be an informative earnings call. I want to thank you for joining us, and I look forward to speaking to you again at our next call. Thank you. And this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.