David Rosato: Yeah. I think we’re essentially done for now. I’d call it two and done, since it’s been two quarters in a row. But clearly, the second one was linked to the branch sale. Our securities are now down to about 10%, just under 10% of the balance sheet. On the low end of the peer group, we still have pledging requirements for some of our municipal customers. So I think we’re — I don’t anticipate any further box security sales like we’ve had the last two quarters.
Mark Fitzgibbon: Okay. And then Nitin in your opening comments you referenced the fact that you felt like at 83 branches you were sort of close to the right size of the branch network. I guess it surprised me because it still feels like your franchise is pretty geographically spread out. and the 10 branches that you sold didn’t really pull in the reins very much. Given that you’re getting close to that June target date for the best program, and you’re still a decent amount below the financial goals that you set. I guess I’m wondering wouldn’t it make sense to take some more draconian actions to try to maybe shrink the footprint and improve the profitability?
Nitin Mhatre: So Mark, I would say we used to be a really sprawling geography-based network which we had Mid-Atlantic and all the way going to Syracuse on the Western part of the geography, which has been tightened now. We were about 130-plus branches network. And if you look at the peer groups that’s about mid-70s, and that’s the reference to saying we’re coming close to the right size in terms of where the peers are. This is not going to stop our teams to evaluate opportunities to consolidate or swap locations and things of that nature. That’s always determined by the footprint and the footfalls in those branches and the business that’s coming in. What we have today are all profitable branches. And the part of the geography that’s our core geography, we continue to hold on to the high market share that we have while investing in the new markets, where we anticipate new growth.
So I think it’s not to say we’re done, but it’s to say that it’s becoming pretty close to what we believe to be the right-sized network with the caveat that we’ll continue to look for opportunities to consolidate and swap as the opportunities arise.
Mark Fitzgibbon: Thank you.
Nitin Mhatre: Thank you, Mark.
Operator: Next question will be from Laurie Hunsicker at Seaport Research. Please go ahead.
Laurie Hunsicker: Yeah. Hi. Good morning, gentleman. Hoping we could just start back with the security sales. David, can you just remind us what was the date on when those were sold and what was the yield? Proximate in the quarter? I assume it was March end of March but…
David Rosato: Yeah. So we started a few days after the announcement. So security sales occurred throughout the month of March. And in the slide, you see the average — we were just under 2% on the market yield of $1.98.
Laurie Hunsicker: $1.98 great. And then do you have the spot margin for the month of March?
David Rosato: Sure. Spot margin for March was 3.14%. So if you’re — I’m not exactly sure where you’re going, but what my comment around the $314 million would be the impact of the security sale, very similar to the discussion we had three months ago talking about the December security sale was it was not — it’s not fully reflected in the March.
Laurie Hunsicker: Okay. Makes a lot of sense. Okay. Good. And then just around your comments I guess Nitin and David, the three additional branch closures coming up in 2Q, where are those located? And do you have the charges? And are you expecting to retain all the deposits and loans? How are you thinking about that?
Nitin Mhatre: Yes, they’re all based in Connecticut, Laurie, and we have had conversations with our key clients there and their pretty comfortable kind of managing the transition through our — my bankers and private bankers there. So we feel pretty good about retaining those deposits, while kind of consolidating those locations. On the charges I think…
David Rosato: Yes. No, we don’t have a number yet, Laurie.
Laurie Hunsicker: Okay. Okay. And then what about the cost saves? What are you expecting there?
David Rosato: Not significant. I mean one is a very small limited service branch. The other two are consolidation. So, I wouldn’t pencil in too much for that at this point. I’d focus on how well expenses were controlled this quarter, especially with the seasonal uptick in payroll and I’d focus on our comments around what we’re doing trying to change focus of expense management in the company. That’s the real message.
Laurie Hunsicker: Absolutely. And yes, just to that point, yes, your guidance last quarter, expenses for this year $293 million to $297 million, you’re clearly coming in way below that which is great. I just want to make sure I’m thinking about this the right way. So if I look at your expenses for this quarter axing out the mergers exiting out the FICA, you’re at around $71 million, you get another $1.6 million or so down just the expense reduction associated with the 10 branches. Maybe just kind a bit on the three closures. Is there any spending that you’re going to be — is there any additional sort of significant spend that you’re doing in — as we had — obviously, we’re only a quarter away through this year. But as we head into next year, how should we be thinking about that?
Are you really kind of at a quarterly run rate of $69 million, $70 million? Or is there any other spending coming down the pipe? How should we think about that? Is it all dropping through? Or what else are you tightening? Or may be a better question is — yes. Or maybe, just help us think about as we look to fourth quarter when everything should be largely pretty clean, what should we expect on a fourth quarter just dollar expense run rate? How should we think about that? Thanks.
