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Ares Commercial Real Estate Corp (ACRE 1.95%)
Q3Â 2019 Earnings Call
Nov 8, 2019, 9:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good morning and welcome to Ares Commercial Real Estate Corporation's conference call to discuss the company's third Quarter 2019 earnings results. [Operator Instructions]
I will now turn the call over to Veronica Mayer from Investor Relations.
Veronica Mendiola Mayer -- Principal, Public Investor Relations and Communications
Thank you Aili. Good morning and thank you for joining us on today's conference call. I am joined today by Bill Benjamin our Chairman and Head of the Real Estate Group of Ares Management; our CEO Jamie Henderson; David Roth our President; Tae-Sik Yoon our CFO; and Carl Drake Head of Investor Relations. In addition to our press release and the 10-Q that we filed with the SEC we have posted an earnings presentation under the Investor Resources section of our website at www.arescre.com. Before we begin I want to remind everyone that comments made during the course of this conference call and webcast and the accompanying documents contain forward-looking statements and are subject to risks and uncertainties. Many of these forward-looking statements can be identified by the use of the words such as anticipates believes expects intends will should may and similar expressions. These forward-looking statements are based on management's current expectations of market conditions and management's judgment. These statements are not guarantees of future performance condition or results and involve a number of risks and uncertainties.
The company's actual results could differ materially from those expressed in the forward-looking statements as a result of a number of factors including those listed in its SEC filings. Ares Commercial Real Estate Corporation assumes no obligation to update any such forward-looking statements. During this conference call we will refer to certain non-GAAP financial measures. We use these as measures of operating performance and these measures should not be considered in isolation from or as a substitute for measures prepared in accordance with generally accepted accounting principles. These measures may not be comparable to like like-titled measures used by other companies.
I will now turn the call over to Jamie Henderson.
Jamie Henderson -- Chief Executive Officer Chief Investment Officer and Director
Thank you Veronica. Good morning everyone and thank you for joining us today. As you may have seen this morning we announced that I will be stepping down as CEO of ACRE on December 5. But I am continuing in my position as a Director on the Board. In addition I will remain at Ares through the end of this year. This is a bittersweet decision for me but one that is in the best interest of my family. In addition I feel that I'm leaving the company in an outstanding position with a Board with extensive experience led by Bill Benjamin and a deep and highly capable management team led by our President David Roth Tae-Sik Yoon; and J.B Gerber our Head of Originations. I also think very highly of Bryan Donohoe our new CEO and I can say with great conviction that he will do an excellent job leading ACRE in this next chapter of growth. I'm very proud of all that our team has accomplished together over the last several years. We have executed on our strategic plan to expand our platform across the U.S. with new offices augment our talent improve our origination capabilities and broaden our product offering. These initiatives have enabled us to remain more fully invested with loans that generate attractive risk-adjusted returns.
As a result we have collectively improved our profitability and materially increased shareholder value. In addition we have increased our quarterly dividend 4x since the beginning of 2018 for a total increase of 22%. And we are very well positioned to exceed 100% core earnings coverage of our dividend for the fourth consecutive year. I would like to express my gratitude to the entire team and to all of our shareholders and constituents for their support and I look forward to continuing to contribute to the future success of ACRE as a Director for the foreseeable future. Let me now turn to our third quarter results. As you can see from our earnings results this morning the company continues to generate strong earnings with healthy investment activity and a well-positioned balance sheet. During the third quarter we generated GAAP and core earnings of $0.31 and $0.34 per share respectively. And as Tae-Sik will describe the fourth quarter looks potentially better from an earnings standpoint. During the third quarter we originated 5 new loan commitments totaling $193 million. Since quarter end we have closed an additional $126 million with 3 loans which brings our year-to-date commitments to $652 million a 38% increase from the same period in 2018.
Consistent with our current portfolio the new loans were all senior floating rate diversified across sectors and regions with anticipated gross levered returns in the low double digits. We're continuing to broaden our funnel of new investment opportunities. The amount that we are currently reviewing and have quoted or are in more advanced stages has increased over 30% versus the same period in 2018. At the same time we are remaining highly selective closing less than 5% of the transactions that we reviewed year-to-date. Looking ahead our forward pipeline reflects our focus on finding the best relative value across property types and products. We have executed term sheets on approximately $300 million of additional commitments that are expected to close in the fourth quarter and the pipeline behind those loans is deep. As a result of our strong deployment activity in the third and fourth quarters to date we currently expect our fourth quarter EPS to be higher than our third quarter.
Let me now turn the call over to Tae-Sik to discuss our third quarter results and forward outlook in more detail.
Tae-Sik Yoon -- Chief Financial Officer and Treasurer
Terrific. Thank you Jamie and good morning everyone. Earlier today we reported GAAP net income of $9 million or $0.31 per common share and core earnings of $9.7 million or $0.34 per common share for the third quarter of 2019. So this brings us -- our total core earnings for the first nine months of the year to $1.04 per common share in excess of the $0.99 per common share that we have paid in dividends for the comparable period. As Jamie mentioned in the third quarter we closed 5 new senior floating rate loans totaling $193 million in new commitments. Total fundings for the quarter were $169 million. As of September 30 the loan portfolio included 47 loans with an outstanding principal balance of $1.5 billion up 3% from the second quarter of 2019. Credit quality continues to remain stable with no impairments and our portfolio weighted average unlevered effective yield of 6.9%. Turning to our balance sheet. Our leverage remained consistent with a debt-to-equity ratio of 2.9x. This is in line with our target given that 96% of our loans are senior positions. Let me now spend some time this morning discussing our unique portfolio positioning given the current decline in the interest rate environment. As we have noted in the past our portfolio has historically benefited from rising interest rates given that 97% of our loan portfolio is floating rate.
At the same time however we have leveraged our direct origination capabilities and deep sponsor relationships to structure loans that provides protection against declining interest rates. To this end we have purposely built-in LIBOR floors on almost all of our loans. More precisely at the end of the third quarter 92% of our loan portfolio consisted of floating rate loans with built-in LIBOR floors averaging about 1.7%. And in addition 3% of our loans are fixed rate. This means that overall 95% of our loans have some level of protection against declining LIBOR. And in fact currently based on LIBOR of 1.77% more than 50% of our loans have LIBOR floors that are either in the money or are fixed rate. In contrast for our liabilities while we are careful to match on our interest rate risk utilizing 100% floating rate debt. So in other words all $1.2 billion of our debt shown on our balance sheet is floating rate and only $56 million or less than 5% of outstanding principal have we agreed to provide LIBOR floors. Overall what this means is that in a declining interest rate environment our interest income is well protected by the fact that 95% of our loans have LIBOR floors or a fixed rate.
At the same time in a declining interest rate environment as 100% of our liabilities are floating rate but with less than 5% having LIBOR floors we expect to realize 95% of the benefits of lower interest expense. As a result as you can see on page five of our third quarter 2019 earnings presentation on a pro forma basis of our balance sheet as of September 30 2019 including our assets and liabilities we believe that our net income would increase should LIBOR either fall or rise. Although it has changed over time particularly as our loans paid off. Based on our current portfolio and balance sheet construction it's a unique heads we win tails we win situation with respect to changes in LIBOR. Now let me touch on repayment activity. In the third quarter $119 million of loans repaid bringing repayments for the first 3 quarters of the year to $367 million. However as we indicated in our last earnings call we are expecting a material increase in repayments in the fourth quarter. In conclusion as Jamie mentioned based on improving investment activity early in the fourth quarter and our portfolio and balance sheet construction with respect to LIBOR we currently expect that our fourth quarter earnings will exceed those of our third quarter. This clearly gives us confidence that we'll be more than cover our full year dividend for 2019 to the core earnings for the fourth consecutive year.
And with that I will now turn the call over to Bill Benjamin for some closing remarks.
Bill Benjamin -- Director, Chairman of the Board
Thank you Tae-Sik. On behalf of the Board at ACRE and the real estate group of Ares management I want to thank Jamie for all his contributions over the past few years. He's leaving the company in an outstanding position. We look forward to continuing to work with Jamie after December 5 in his continued role as Director and we wish him much success. I'm also pleased to welcome Bryan Donohoe to the team effective December 5, Brian has been a known entity to us and well respected by the acre executives. With his accomplished track record, strong leadership and extensive relationships in the real estate sponsored community. We are confident that Brian is very well suited to lead acre and successfully execute on our plans for can students for continued strong and profitable growth in the years to come. I can assure you that Bryan will have the full resources of the broader real estate platform behind him A Board of Directors with extensive experience, a deeply and highly capable management team led by David and basic, strong team of 20 investment professionals, led by JP Gerber, along with our asset management and capital market professionals. In addition, Brian will be able to collaborate and benefit from his colleagues across the broader areas management platform, including on the equity side of our real estate business. I want to express the confidence that I and the senior management team of Ares Management have in ACRE given that the business is outperforming on all fronts. We have an outstanding leadership team in place. We are executing on our plan to stay more fully invested and we continue to generate attractive dividends and returns for our shareholders.
With that operator please open the lines for questions.
Questions and Answers:
Operator
[Operators Instructions] Our first question comes from Stephen Laws with Raymond James.
Stephen Laws -- Raymond James -- Analyst
Hi, good morning,I guess first Jamie good luck with the -- what you pursue after this and congratulations on a good job you've done at ACRE over the last couple of years. Moving to questions I guess first Tae-Sik if I can follow up on your repayment comments maybe specifically -- or the Q4 increase in repayments are those some of the loans we've seen you breakout that are scheduled to mature early next year? And then specifically if you could talk to the -- it looks like February through April you've got 3 of your 4 residential condo loans scheduled to mature. Could you touch on those and whether you expect those to pay off at maturity or extend? It looks like a couple of them might be at pretty high interest rates as well. So I'd appreciate your comments around that.
Tae-Sik Yoon -- Chief Financial Officer and Treasurer
Sure. Thanks for your question. So with respect to repayments as I mentioned we do expect a pickup of repayment activity in the fourth quarter. I think we said something very similar on our last conference call. So without giving you an exact estimate we've had a little more than $100 million payoffs so far in the quarter. And I think for the total for the quarter we expect somewhere between call it $250 million and $300 million for fourth quarter in the aggregate inclusive of the $100 million plus that's paid off so far. More specifically with respect to the residential condominium loans that you're referring to. One of the 3 that you're referring to this is identified as the $17.5 million senior loan in Florida. That has already paid off and that is part of the slightly more than $100 million that is so far paid off in the fourth quarter. The other 2 loans that you're referring to one is the maturity coming up in February 2020 and then the third has a maturity in March of 2020. Again I think both of those situations we do expect there to be a payoff right around the maturity date. We don't have a specific time line for those 2. But the objective is to have both the loans pay off on or about the maturity date.
Stephen Laws -- Raymond James -- Analyst
Great. And can you touch on the Ares financing facility? Has you -- has the company utilized that at all? What are your thoughts as far as excess or utilization especially if we see repayments slow? If you could talk a little bit about the -- any update on utilization of that facility?
Tae-Sik Yoon -- Chief Financial Officer and Treasurer
Sure. So first of all we have not utilized the facility this past quarter. I would tell you that it's still extremely helpful to us knowing that we have this so-called excess capacity behind us at any point. So it gives all of our originators for example the confidence that the capital will always be available to make sure that loans that we commit to have no risk of not being funded. So while it's not been specifically drawn I think it continues to be very very additive to our origination activities in terms of again having that extra capacity always on hand to make sure that our originations never slow down. We would certainly anticipate utilizing the warehouse facility. Our primary goal of course is to keep the existing balance sheet and the existing capital as full as possible. And I think we've done a very good job of making sure first and foremost that any repayment of capital is fully redeployed. We are obviously working toward then getting even more deployed and then eventually we'll get to growing capital and utilizing the warehouse as it really was fully -- really maximize its full potential. But to answer your question specifically to date in the third quarter and so far in the fourth quarter we have not drawn upon the warehouse line because we have been keeping our existing capital and balance sheet as fully invested as possible.
Stephen Laws -- Raymond James -- Analyst
Great. And last question. Jamie could you talk about the competitive market out there or discussions with borrowers? Are they pushing back more on LIBOR floors? Are there other -- are competitors bending in other places on underwriting? If you could maybe give us an update on the competitive landscape and what you're seeing in the marketplace. Thank you.
Jamie Henderson -- Chief Executive Officer Chief Investment Officer and Director
Sure. Thank you Stephen. I think it feels really good. There is a little blip in Q3 I think the industry was adjusting to the decrease in treasury yields. Fourth quarter as I mentioned in my prepared remarks the pipeline feels great. Overall pipeline year-over-year is better than it ever has been. A lot of that has been the result of us effectuating our strategy of building out a broader regional presence and partnering more closely with David Roth's equity team. So team flow feels really good I think the team has done an exceptional job of building in LIBOR floors during a time when nobody really felt like they needed that structure and that's showing up demonstrably in our earnings and I think that's just a testament to kind of our credit-first approach and the rigor whereby we approach lending. Borrowers are more alert to it now. We're still getting them. And I think overall structure feels really good. Don't really see kind of masked situation on structure returns. So I think it feels pretty good. I think real estate fundamentals still feel darn good given the long expansion.
Stephen Laws -- Raymond James -- Analyst
Right. Thanks for the commentary there. Appreciate it.
Jamie Henderson -- Chief Executive Officer Chief Investment Officer and Director
Thanks to you.
Operator
Our next question comes from Steve Delaney with JMP Securities.
Steve Delaney -- JMP Securities -- Analyst
Good morning everyone, And Jamie I would echo Steven's comments about congrats to you. Probably no better way to step aside then with the stock up 18% this year. And Bryan look forward to having the opportunity to meet you soon. So turning to Q&A. Tae-Sik the new slide or the new presentation on LIBOR sensitivity was very welcomed. So as you mentioned I think we're sitting here today $176 million. So I know numbers and the way floors weighted averages and all move but would it be reasonable to think that of the down -- the $0.08 benefit from down $0.50 that essentially we are -- approximately have already with LIBOR today we're realizing roughly half of that benefit. So for us and annually maybe $0.01 per quarter. And is the LIBOR forecast part of why you and Jamie are suggesting that fourth quarter is going to be improved over third quarter?
Tae-Sik Yoon -- Chief Financial Officer and Treasurer
Thanks for your question, That's exactly right. I think I mentioned in our comments that we do expect fourth quarter earnings to exceed those of third quarter. And I think part of the reason for that is the impact of LIBOR that we've already experienced. So the chart that we show on page five of the earnings presentation you can see that that really shows the changes from LIBOR from the September 30 spot rate which was around 2%. So we've already experienced plus or minus 25 basis point change in LIBOR. So part of our fourth quarter estimate is based upon the drop in LIBOR and the positive impact that we get from our LIBOR floors.
Steve Delaney -- JMP Securities -- Analyst
Got it, And then turning to the dividend. I appreciate the comparison of dividends paid to cumulative core just assuming -- you've already declared your fourth quarter dividend flat. If -- well one we ask you this do you assume that do you -- at this point that you will have met with your dividends through the fourth quarter of what $1.20 $1.32 whatever. Would you assume that you have met your requirement with respect to distributing taxable income? And maybe -- and if not there's a couple of ways to deal with that obviously because you've got some time before your final return is filed. But given where the -- the dividend is at a nice healthy level and I think the worst thing a mortgage REIT can do is raise their dividend too much and then be in a position they have to cut it. As we look to next year I mean would you prefer to do -- if you had an additional distribution at this point would you consider a special dividend? Or would you just be as kind of patient as possible in raising the dividend rate from where we are now given the increases over the past year?
Tae-Sik Yoon -- Chief Financial Officer and Treasurer
Sure, As you know there is a number of inputs that the Board and management in its recommendation will take into consideration in terms of setting the dividend. Certainly as you mentioned stability and growth of the dividend is a key factor. Tax requirements being a REIT is also another important factor. Future forecast of our earnings and our ability to deliver returns is certainly a factor. And then there's obviously a myriad of other considerations to consider as well. So to answer really your question for right now I think from a tax perspective we're in good shape. As you said this is not a year-by-year test there are other ways to manage the REIT distribution requirements and we have obviously fully met them. I think we also had previously described the fact that we do have if you want to call it some undistributed taxable earnings that we have not paid out in the form of dividends. Some of that came about as for example the result of income that we derived when we sold a long time ago a few years ago our Fannie Mae Freddie Mac mortgage...
Steve Delaney -- JMP Securities -- Analyst
Agency business yes.
Tae-Sik Yoon -- Chief Financial Officer and Treasurer
Agency business, And we had a gain there. We're able to manage that we do pay some excise tax because of that and that is obviously one of the reasons we do have a tax expense line in our income statement. So we are able to manage that very well and we'll certainly take that in consideration. And then really -- finally your question about a special dividend certainly that's another consideration and another better option that we can follow. I know some of the other companies in our space and some of the other companies in the REIT world have done that as well. And so certainly that's something else we can consider. I would say we have looked at this question very carefully the Board has obviously looked at this question very carefully in setting this quarter's dividend as well as the prior dividends throughout the year. And we'll continue to closely monitor it. But right now I don't think I can really give you any sort of future outlook on what our dividends will hold -- be just given just a number of considerations that we need to think about.
Steve Delaney -- JMP Securities -- Analyst
All right, Well we'll watch core EPS and to the extent that keeps going up I think that will give us comfort on the dividend.Thanks for your comments. Stacey.
Tae-Sik Yoon -- Chief Financial Officer and Treasurer
Thank you.
Operator
Our next question comes from Jade Rahmani with KBW.
Ryan Tomasello -- KBW, Inc -- Analyst
Good morning Everyone, This is actually Ryan Tomasello on for Jade. Just was hoping you can talk about where you're seeing incremental levered returns currently across the pipeline and on a go-forward basis, Just trying to understand how you're thinking about the confluence of factors of these recent rate cuts potential additional rate cuts coupled with what seems to be still ongoing spread compression the LIBOR floor as you laid out. Just in general if you think that low double-digit IRRs are still achievable on a go-forward basis for this business particularly as the LIBOR floors inevitably roll off with repayments?
Jamie Henderson -- Chief Executive Officer Chief Investment Officer and Director
Ryan this is Jamie, I guess I'd start by saying we've been really deliberate in creating a business model that's focused on the mid-market, And a lot of that has to do with infrastructure and having people on the ground all over the country. And it gives us a much broader top of the funnel and we operate in kind of that medium-sized loan space plus or minus $40 million to $50 million, We did see a little bit of spread compression in the midst of -- kind of at the outset of Q3. But I've been very happy to see that that feels like it's slowed down and even has widened a little bit. So feel pretty good about where spreads are. Not terribly concerned about the index to tell you the truth. I think the team has done a great job of structuring around that. The -- as we've stated many times kind of current levered ROEs are still in the low double digits. So feel good about where the business sits today we feel good about our balance sheet and feel good about the loans that we're able to source in the mid-market space. I think the large loan space is experiencing a lot of pressure or more pressure on spreads. So really happy about the business model that we've adopted.
Ryan Tomasello -- KBW, Inc -- Analyst
That's really helpful, And then I guess on the overall pipeline of loans that you're seeing and what's already closed. Can you give us some color on what types of loans those are in terms of geography property type spreads? I guess just wondering how that fits in the period with your prior comments on leverage returns.
Tae-Sik Yoon -- Chief Financial Officer and Treasurer
Sure, Ryan this is Tae-Sik. In terms of characteristics of the loans that we've closed so far again I think they're very consistent with our history and our portfolio. So if you look at page four of our earnings deck we don't expect those types of metrics to materially change from what we have, I think the other good news is that as Jamie mentioned the loans that we closed so far again in terms of their expected ROEs on a levered basis again continue to be very consistent with our overall returns. And again based upon what we've seen so far I think one of the benefits that we've always talked about before is because we have a relatively smaller balance sheet that we want to obviously keep as fully invested as possible we don't need to go out and chase market rate deals and we can be a little bit more selective in the type of deals that we do. And so I think that selectivity both in terms of credit as well as portfolio construction as well as returns remain very consistent with our existing portfolio.
Ryan Tomasello -- KBW, Inc -- Analyst
And just lastly it looks like there were 2 loan modifications in the quarter on 2 of your condo mezzanine loans 1 in New York and 1 in Hawaii, So I just was hoping you can give us some color on what's going on there how are those borrower business plans performing. Are you expecting a full payoff? Or is it possible we should -- we could see some sort of impairment on those loans pending their performance?
Tae-Sik Yoon -- Chief Financial Officer and Treasurer
Well again we certainly don't expect any impairments on any of our loans including the 2 that you mentioned. The Hawaii loan we did extend out the maturity on that loan as you could probably tell. I think that is -- we feel a very good loan, We wanted to give the borrower a little bit more time to execute the refinancing of that asset. That is in process. And so as I mentioned I think Stephen Laws asked a question about what we expect on the repayments of some of the loans that are coming up in the first half of 2020. And so we do expect that Hawaii loan to repay so that's on or about the now new stated maturity date of March 2020. With respect to the New York loan, This was really in relation to a bit of a change in the mix of units that the developer is building. We felt it was the right decision to make to really meet the different needs of the market than what was originally envisioned. So that was really the primary reason for the change in that loan itself. That loan doesn't mature until May 2021. So it's much too early to give any sort of insight as to whether that loan will pay on or about its maturity. But certainly we don't see impairment on either of those events.
Ryan Tomasello -- KBW, Inc -- Analyst
That's really helpful color Tae-Sik. I may be pushing a bit too much here but can you say what the underwritten sell off value per square footage of that New York condo loan and perhaps for the overall book?
Tae-Sik Yoon -- Chief Financial Officer and Treasurer
Again I think we're careful not to give too specifics on the business lines of these units. We do want to be very respectful of our borrowers and their business plans. Certainly we do a very in-depth analysis of the market itself. We do a very in-depth analysis of our LTV. Jamie did you want to add some comments?
Jamie Henderson -- Chief Executive Officer Chief Investment Officer and Director
Sure, Ryan that's actually -- that's a very good question, And I think the way I'll answer that is we've been very systematic in avoiding some of the major metros luxury and ultra-lux condo projects, We think there is a material risk in that sector. And there is probably the opportunity for a pretty material reset. At which point maybe we'll be interested. So I can tell you what we haven't done. And I'll also tell you that in a lot of these markets there is very very significant demand for kind of middle of the road product as I'd say, So we've been really systematic in avoiding the high end and feel really good about every project that we've elected to loan on.
Ryan Tomasello -- KBW, Inc -- Analyst
thanks for all that color
Operator
Our next question comes from Rick Shane with JPMorgan.
Richard Shane -- J.P. Morgan. -- Analyst
Guys, thanks for taking my questions in And Jamie we wish you the very best as you move on to what's next in your career. It's been a pleasure getting to know you over the years. Just interesting context you had a peer company report last night and I would describe that company took a more cautious defensive outlook, I'm curious where you guys are seeing relative value and opportunity. And I do notice that if you compare sort of the portfolio originations this quarter versus the overall mix it seems like you guys are shifting to more defensive asset classes as well. Is that just a one quarter thing? Or is that something that's really more tactical?
Jamie Henderson -- Chief Executive Officer Chief Investment Officer and Director
So Rick thank you for your kind words., And I guess I'll start to address your question on the portfolio mix portfolio composition. So one of the tremendous strengths of ACRE is the fact that every deal goes to a global investment committee and has over 300 years of professional real estate experience on it. That's both debt and equity and credit. So it is not an easy hurdle to clear it, There's -- every one of us on that committee have transacted many billions of dollars and pretty much every asset class in most major markets. So there's a lot of very granular street-level knowledge and asset class knowledge on that committee. I'll say we have been really deliberate in even kind of increasing the level of rigor over the past several quarters. And I think our portfolio composition reflects that. We've been pretty conservative throughout our history and I would say we've gotten slightly more conservative over the last several quarters. So I'm not saying that every single deal has been like a scientific add to the portfolio but I think the level of rigor is extremely high.
Richard Shane -- J.P. Morgan. -- Analyst
Okay, thank you.
Jamie Henderson -- Chief Executive Officer Chief Investment Officer and Director
You're welcome.
Operator
Ladies and gentlemen this concludes our Q&A and our conference call for today. If you missed any part of today's call an archived replay of this conference call will be available approximately 1 hour after the end of this call through November 22 2019. To domestic callers this will be available by dialing 1 877 344-7529. And to international callers by dialing 1 412 317-0088. For all replays please reference conference number 10134445. An archived replay will also be available on a webcast link located on the homepage of the Investor Resources section of our website.
Duration: 36 minutes
Call participants:
Veronica Mendiola Mayer -- Principal, Public Investor Relations and Communications
Jamie Henderson -- Chief Executive Officer Chief Investment Officer and Director
Tae-Sik Yoon -- Chief Financial Officer and Treasurer
Bill Benjamin -- Director, Chairman of the Board
Stephen Laws -- Raymond James -- Analyst
Steve Delaney -- JMP Securities -- Analyst
Ryan Tomasello -- KBW, Inc -- Analyst
Richard Shane -- J.P. Morgan. -- Analyst
