Good day everyone and welcome to the First Merchants Corporation Fourth Quarter 2015 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] This presentation contains forward looking statements based on our current expectations reflecting various estimates and assumptions. These forward-looking statements include, but are not limited to statements relating to our business outlook. These forward-looking statements are subject to significant risk and uncertainties that may cause results to differ materially from the set forth in this presentation examples of which are included in the written presentation materials filed with the Securities and Exchange Commission in connection with this call. Please refer to those materials for a more detailed discussion of the applicable risks. Please also note today's event is being recorded. At this time, I’d like to turn the conference call over to Mr. Michael Rechin, President and CEO. Sir, please go ahead.

Thank you, Jamie. And welcome everyone to our First Merchants earnings call and webcast for the fourth quarter ending December 31st, 2015. Joining me on the call today, as this is our tradition, our Chief Financial Officer, Mark Hardwick; and our Chief Credit Officer, John Martin. The company released our earnings in a press release about 10 o'clock a.m. Eastern Day Light savings time and our presentation webcast speaks to material from that release. The direction that point to the webcast were also contained at the back end of that release and my comments begin on Page 3 on a Slide titled Fourth Quarter 2015 Highlights. Take that back, it’s actually titled ‘15 Performance and Full Year Highlights, its top of the page. And we announced record 2015 income, net income of $65.4 million, an increase of 5.2 million over 2014’s net income of 60.2 million. Earnings per share totaling $1.72, an increase of $0.07 or 4.2% over 2014’s earnings per share of $1.65. In that top section on Slide 3, a couple of other what I think of is signature events summarizing our performance for the year including a 20% increase in net loans which is inclusive of two acquisition closings that incorporated organic loan growth at the high end of the range that we’ve talked about on these calls throughout the year and an overall really satisfying acclamation of new franchises into ours at First Merchants. The successful integration of Community Bank and Cooper State Bank I referenced just a moment ago, two acquisitions those would be have Cooper State Bank earlier in the year and Ameriana which closed at end year. We also completed two integrations, one of them for Cooper all of that work been completed in the last 12 months. And then November of 2014’s…

Thanks Mike. My comments will begin on Slide 5. Total assets on Line 8 increased in 2015 by $937 million or 16.1%, following a 7.1% increase in '14 and 26.3% increase in 2013. On Line 3, good organic growth of 4% in 2014 and 9% in 2015 was further improved by healthy acquisition strategy. Our Cooper State Bank acquisition in April and our Ameriana Bank acquisition in December added $430 million or 11% in loans. So on a combined basis as Mike mentioned, total loans increased 20% this year. Consistent with the last couple of year’s guidance, we are anticipating organic loan growth in the mid to high single digits again in 2016. The allowance on Line 4, in total dollars has declined very modestly in 2014 and ‘15. However as a percentage of loans, the allowance has declined from 1.87% in 2013 to 1.63 in ‘14 and now totals 1.33% of total loans. Most of the decline is due to the purchased loans that are embedded - that have embedded credit marks that do not require an allowance that are included in the denominator of that calculation. So the best overall analysis of our loan loss coverage will be presented by John a little later on Slide 21. Goodwill and core deposit intangibles increased $16 million in 2014, due to intangibles created in our Community Bank of Noblesville acquisition, while increasing by $41 million in 2015 due to our Cooper State Bank acquisition and Ameriana Bank acquisitions, which have been positively offset by a pickup for a reduction of intangibles of 8.5 million due to the sale of First Merchants Insurance Group in 2015. The composition of our $4.7 billion loan portfolio on Slide 6 continues to be reflective of a Commercial Bank and it continues to produce strong…

Alright, thanks Mark and good afternoon everyone. I’m going to be updating the trends and the long portfolio starting on Slide 18 then review the asset quality summary and reconciliation. Going to the fair value and allowance coverage and then close with a few thoughts in the portfolio. So if you please turn to Slide 18. I am going to start in the first columns, a fairly busy slide of the change linked quarter box which represents organic loan portfolio growth and which excludes the acquired Ameriana loans. So for the third quarter, total - on Line 11, total loans grew organically by $52 million. The organic growth for the quarter was driven by increases in the commercial portfolio where on Line 1, commercial loans grew by $36.6 million and on Line 2, commercial real estate construction grew by $45.5 million. Also note on Line 8 was a 15.5 increase in home equity lines driven by increases in new originations while overall utilization declined modestly. Moving over a box labeled change year-over-year, we organically grew 339, call $340 million or roughly 9% for the year. The growth was in similar categories as the linked quarter with C&I and CRE construction growing organically by $139 million and $130 million respectively. Also on Line 9, public finance grew year-over-year by $122 million. So all in all with Cooper, Ameriana and the organic growth, total loans grew roughly 20% or $770 million. Turning to asset quality on Slide 19, improvement in asset quality continues to be good, to be good story, where year-over-year total NPAs in 90 days plus to decline $32 million or roughly 43% prior to the addition of Ameriana and Cooper State Bank. And $23.2 million or 31% with the NPA and 90 plus days loans - delinquent loans from…

Thanks John. I am on Slide 24, a little overview of a couple of items I’d like to hit on again if we haven’t covered them in either of my colleague’s remarks. The first word on the page is focus, Mark referenced, we start with the year with a more narrow business scope having exited the insurance business mid last year, so we’re going to really concentrate on areas where we are particularly proficient in terms of extending credit across all the markets we cover, industries, verticals within commercial banking and then gathering deposits from those same commercial borrowers and then through our in excess of 110 banking centers. I feel good about that straightforward approach, I think it’s pretty consistent with where we’re having our greatest success. Referenced earlier this third quarter upgrade, we feel like between personal fee use, commercial fee use, we’re going to have a lift in those combined categories in excess of $0.5 million largely comes from new clients, comes from a little bit from the acquisition and it comes from comprising power for a better product that we’re offering that customer mix. The next bullet point down organic growth, our primary path to growing this company as success in the marketplace and that calls for great execution on organic growth, it’s difficult because it’s an everyday deal. But between winning new clients, selling deeper into our clients you know retail is working on this net new accounts, paradigm throughout our banking centers which is proving successful as we try and make sure we are getting paid for accounts and sometimes leaving legacy product offerings from our retail concepts that have joined us through these acquisition. So we feel good about that. Our Chief Banking Officer has a sales management protocol in all of our…

[Operator Instructions] And our first question today comes from Scott Siefers from Sandler O’Neill & Partners. Please go ahead with your question

Good afternoon, guys.

Hey Scott, good afternoon to you.

Thank you. Hey Mark first couple of questions for you just on the expense side and there you start out sort of ticky tack. So just you gave the expense detail on 5.13 just you know the major line items. I am wondering if you can look at 4.1 million in unusual charges from the fourth quarter and just maybe let me know who they break out among the various expense categories? And then the follow-on question on expense is, if we break those out, you are sort of 42 million or so in total costs for the four quarter, I think Ameriana as I am recalling correction would add somewhere around 4.5 million or so per quarter all of equal. So if were to look at sort of a $46 million-$47 million quarterly run rate, would that be a good number to go off of as the starting point cost saves from Ameriana?

Well, see pulling up a couple of different items to make sure I’ll give you - I am going to answer. The total obviously the 4.1 it looks like - I apologize, just a moment, looks like most everything related to the fourth quarter, 4.1 was really in the contract kind of termination area. And then the other I should say split evenly, looks like about half of it was severance and retention bonus, severance and retention expense that we had and then the other half were all contract write down. So if you look at Slide 13, it looks like a couple of million dollars of that expense about - was in that - about 1.8 was in the salary and benefits and then the rest was kind of split in the other - outside - not outside, it was all in item 9 other to make up the 4.1. I apologize I didn’t spend as much time just on the quarter but that’s the breakdown of 4.1.

Okay, so that’s perfect. And I am sorry to touch off, but just to sort of expense run rate when we get Ameriana in?

Yeah in Ameriana, their ongoing expense for us is, it’s going to be somewhere around $10 million for the full year of fiscal ‘16. So we didn’t have any expenses in 2016 with exception the onetime, nothing from a pure operating standpoint. And then your question on the quarterly run rate, we’re estimating that it’s going to be somewhere between $45 million to $46 million for quarter, which I think is about what you mentioned.

Okay. Okay, perfect, thank you. And then maybe just one follow-up on the margin, if you could maybe go into what in your view cause the core compression in the fourth quarter? And then if I understood your guidance correctly, it sounds like the reported margin should be pretty much stable with the fourth quarter level going forward such that virtually all NII growth is driven then from balance sheet expansion, is that a correct way to think about it?

Yeah, we may see a little bit of compression but the way I describe that I think having we’ll pick up a little bit from Cooper that will help makeup the net interest income difference because we only Cooper for about a half year in ‘14. And then when you just look at the fourth quarter, we had $233,000 less in fee income that went through the margin numbers and we actually had a $111,000 expense related to refinance of one of our broker deposit. So for the quarter, we were about 340 less than normal and net interest margin that were related to fee income becoming a little weaker than the prior quarter and that onetime extraordinary broker deposit refinance. And then the other item is we had about $85 million of additional earnings assets that were all related to public money that because we have a lot of public deposits when it’s tax receive time, the average earning assets increases by about in this quarter increased by an average of 85 million. And those are deposits where we can only really invest them in fed fund. And so it’s an increase in earnings assets but it really doesn’t add anything to our net interest income. So those two items combined are the reason that the core margin looks well this quarter, but we should see a nice return in the first quarter because we don’t anticipate having the same weakness in the fee income, we won’t have the broker deposits in our earning asset should stabilize with a lesser amount of public money.

Okay, alright, that’s perfect, thank you for that color.

You’re welcome.

Our next question comes from Erik Zwick from Stephens. Please go ahead with your questions.

Hi, good afternoon, guys.

Hi Erik, how are you?

Good thanks. Maybe I’ll start with regard to the mobile and online banking update, you know which non-interest income categories present maybe the best opportunities for revenue improvement and you able to kind of quantify that at all?

Yeah, I tried to offer a little bit a moment ago, I go back over. They would be in our service charge category. Mark referred to fees just a moment ago and the fees that he was relating to as a portion of net interest margin are actually commercial loan oriented fees that come back in the market should be a prepayment. They had a maturity in accruing those fees. Different than your question where you’re talking about our technology fees that come through service charge, so the largest individual line item within there has historically been overdraft charges and that it’s still is. But that general overall caption includes all of our business related cash management fees that will have our personal fee income. And what I alluded to earlier was about our $1.3 million 2015 level for personal that we expect to grow about 15%. And on the commercial side it’s about three times that number in gross dollars just around just under $4 million that’s also going to grow in our own view about double digits 10% or 11%. And I - when you dig deeper into it, all of it comes from existing customers, taking advantage of better products for which are repriced on top of our normal in the market and the gathering of new clients.

Great, thank you for the color there. And then obviously within credit the trends in non-accruals and early delinquencies are all positive, is there anything that you are seeing that causes you concerned with regard to future credit trends either from a loan structure, economic or kind of borrower health perspective?

You know Erik when I think about kind of what’s happening in the world today and there’s been a lot of conversation around oil and gas and Ag and Ag slowdown. You I look at our portfolio and think you know we don’t have a lot of direct exposure to those areas. And I think we’re potentially have some impact will be kind of second tier, third tier as it works through the economy in the manufacturing side as lot of production in Indiana, Northern Indiana. Around the state that you know is impacted by slowdowns in those areas. We do have some exposure in the Ag production the Ag land space. But nothing that you know is that significant. So it’s really more the global economy level you know we still continue to see strong construction activity in the multifamily space and senior space. And we continue to originate new opportunities there. But from an economic standpoint that’s kind of where I see things today.

Great and then kind of moving on mortgage gain on mortgage sell revenue had a rebound in 2015. I guess any comments on your outlook for 2016 and how much maybe Ameriana could contribute?

Well if you look at the way we ended the year Erik, we had to your point strong fourth quarter closing about $68 million in closing. We actually take a pretty good sized pipeline into 2016 and that would not reflect any of the Ameriana additions. They’ve been in the mortgage origination business, they were probably not as fully staffed in the origination function relative to their retail base. And by given the overlap in our retail base, it’s one of the synergies we expect. So I think they had six folks in that business and $600,000 in as a revenue line item. So we would clearly expect to bring that over. And then if we add our origination coverage on top of their physical franchise, there is some upside there. But we’re kind of early in. Yeah to be honest you know until that integration takes place, Ameriana runs well under our ownership someone in this interim space prior to rebranding and such.

Got it that makes sense. And one more if I could, just thinking about the size of the investment security or security portfolio of relative to average earning asset, so you kind of comfortable with that level today and would you expect it to growth kind of commence it with loan growth in the rest of the balance sheet?

You know we might be willing to see our kind of loan to deposit - our loan to asset ratio I am sorry, move up slightly. But this is right within our target range where we would like to see the bond portfolio, so since fairly steady for the last couple of years and I wouldn’t anticipate seeing the number of grow in 2016 we’re primarily focused on having our deposit funding increase the loan portfolio throughout the year.

Great, thanks for taking my questions.

You’re welcome Erik, thank you.

Our next question comes from Damon DelMonte from KBW. Please go ahead with your question.

Hey, good afternoon, guys, how you are doing today?

Good Damon. Yourself?

Great, thanks. My question relates to the loan portfolio, could you give a little color on some of the quarter-over-quarter decline specifically with commercial real estate and residential mortgages?

Sure. I think I would address those as - you know as come into the end of the year, we do have a portfolio, construction portfolio that is really designed to build, stabilize and move to the secondary market. So there was some of that in the quarter as well as just the loan amortization in the CRE portfolio, so as you cut that going on. And similarly in the residential mortgage space, you know you’ve got again normal amortization out of that portfolio that without incremental originations into the portfolio. Again our residential mortgage is really originating itself, so we are not actively looking to growth that portfolio, it wasn’t be there, two primary drives that I would point to in those portfolios.

Okay, the residential mortgage was down like you know $75 million or 11% on the quarter, it seems like that might be more than just normal amortization of those, I mean did you guys - did you hold maybe more loans for sale last quarter or something and/or maybe reclassified some loans and sell them this quarter?

You know I am working at my residential mortgage portfolio year-over-year down 44.9 the linked quarter down 12.1 and we acquired with Ameriana in the portfolio. The linked quarter, we’re up 108. So I am not sure.

I was looking at that Slide number 18 where it says Q3 ‘15, 677.8 and then the next column says 602.4, is that the fourth quarter?

Backup slow down for me, one more time.

So Slide 18, the column heading Q3 ‘15, it shows residential mortgage is 677.8 and then next column over shows 602.4?

That excludes the Cooper State loans which if you now look at the foot note, I apologize, the foot note at the top of that has we backed out the Cooper Loans just to show you the effect of Ameriana, so.

Okay, so the 677 includes the Cooper?

Yes.

Okay, I got you. Okay, I thought they are both organic like.

No, that - but I see where that be confusing.

Then that totally answers my question. That makes sense. Okay, thank you. I guess my next question, you know Mike you mentioned in your final slide about you know ongoing banking optimization, is anything kind of create with that, do you have any plans to maybe trip some branches or is that just part of the you know ongoing everyday philosophy if just trying around the bank as officially as possible?

Well it is kind of ongoing but it does get identified if that’s kind of your question. And typically when you are integrating the acquisitions, we more first to the easiest ones and try and take advantage of franchise change first. And so while we have some legacy First Merchants banking centers that are struggling with the ability to grow based on transacting company with our pursuit of those efficiencies typically fall behind integration oriented ones with Ameriana upcoming in front of us here. I think we talked about 13 banking centers in Ameriana becoming eight, closing eight actually with a five that we’ll remain autonomous, the balance of them being combined in our store, so that’s kind of front and center for us between now and May.

Okay, perfect. And then just kind of broader picture here with you know two deals completed during 2015 obviously you have conversion coming up from Ameriana, you know how does that change your approach to that as M&A in ‘16, do you feel like you need to wait until you fully integrate Ameriana before you look for another potential opportunity or do you feel that you are in a good enough place where if something came along in the next month or two you could pursue that?

Well we feel if the great opportunities come out, we’d absolutely be read to pursue at the mean. Having the work as you know as it kind of in your question is embedded the idea that all of the work associated with an acquisition is not the same whether you are on the front-end discovery stage goring through legal, working through integration. And so the ability for us to look at another opportunity between now and integration which will come really quick would take place. I think of it much like the question to John about extending loans and trying to find the balance with that’s a fair opportunity whether it’s a commercial banking client or retail banking client or an acquisition where the valued us has to be strong and easy to see and negotiated at a fair price for both parties. But in terms of their core of your question, would we be ready to continue. The answer is, yes.

Okay, that’s I had it for now, thanks a lot.

I appreciate it.

Thank you. Thanks Damon.

Our next question comes from Brian Martin from FIG Partners. Please go ahead with your question.

Hey guys.

Good afternoon, Brian.

And Mike just a follow-up that last question just on M&A, I mean just given the conditions in the market lately and then I guess how would gauge the temperature of the M&A market today. I mean that obviously it sounds like you are ready but an I guess any apprehensive in the part of sellers today or is anything different than it was the last couple of months?

I’d say it’s very consistent with the last couple of months. I think the number of institutions that were having dialog with the same arguably slightly higher. I think that you the marketplace, the stock market valuations give everybody reason to think things, getting to that fair what’s right for our shareholders’ value equation I think is credit going and we are at a fairly steady state valuation there for a long time, it seem we are at temporary blip here. But I think that the number of Boards of Directors looking forward as to companies that they are consider being a part of, I think that number is increasing.

Okay and as far as - go ahead mark.

Just going to say, we’ll stick to our identical discipline which is evaluation our cost save. You know as you come up with the price based on the number of shares that you can afford issue and the headline number based on recent changes in the stock price, it’s a lower headline number. So we’re continuing to work our way through opportunity and manage kind of a different headline numbers. And I think that’s the case throughout the M&A environment.

Okay, and just a size of the target you guys look at change or can you just remind me I guess what’s kind of sweet spot as far as where you would look?

Yeah, I really think of Cooper is being an aberration, so Cooper State Bank at a $130 million at this point would be an aberration for us look at on a go forward basis because of the effort that it takes. The real attraction to that bank was its absolute geographic overlap with our existing Columbus operation and it’s kind of unique delivery of retail traditional retail to our Ohio operation which was exclusively commercial. So 100 - you something less than a quarter of a billion dollars would be tough for us and it wouldn’t have an attraction to go to a new marketplace where we don’t operate for that size. So I think half a billion dollars is kind of a number that we think make sense where you can really dedicate all of your integration resources and produce income that’s benefits our shareholders.

Perfect, okay. And then maybe just one other question, maybe Mark just on the margin, after the rate increase I mean any sense on - I mean I assume no change from your commentary, deposit pricing pressure, anything you are seeing differently with all of a bumping rights here?

We’re not feeling that pressure on the deposit side at this point and we have $2.1 billion that they prices daily, so we were - we have seen an uplift in our prime based categories in our LIBOR base categories with December rate increase.

Okay. And Mike sometimes you’ll give some details on the commercial portfolio and just kind of the pipelines and kind of where they stand just in general you know I guess how do they look today versus whether it be last quarter or how do you guys track those?

Yeah, I’ll make offer a similar thoughts I did a moment ago on mortgage. On the commercial side, we had a very strong fourth quarter of closings, a lot of it was actually wait in the year, so while John was referring to that some of the commercial real estate categories being paid off that’s our kind of a normal expectation. Our originations were strong. It actually process a smaller pipeline on the first of this year beneath $200 million, lower than $200 million which is down a fair amount from the end of the third quarter. And those for that pipeline measure that I give often is for those opportunities where we have commitments that are in documentation on the way to closing. Right behind that would be opportunities where we think our ideas win with the client that haven’t gone to being chosen yet. And there is ample opportunity in the market, that pipeline numbers up a $100 million over the third quarter. So while the immediate pipeline is lower than it was at the end of the third quarter are kind of combined to look at activity is strong.

Got it. Okay.

And let me just add then to be more clear. I think we’ve been giving a pretty consistent 6% to 8% loan growth guidance for all throughout 2015. We wind up a little bit higher than that at 9% organically. I’d like that 6% to 8% number. That net interest margin we’re trying to protect as much as possible, we could clearly increase our loan growth number if we wanted to compromise on the coupon on our commercial lending and that’s not a trade we really like. So I think I like the 6% to 8% number.

Okay, perfect, that’s helpful. Thanks Mike. And maybe just a last one, I’ll step back and listen is for John. Just two think John, it look like your organic classified number was up a little bit from third to fourth quarter, maybe 5 million or 6 million. Just kind of wondering if there is anything in there and just kind of what that was driving that? And then maybe I did the math wrong on that but the non-performing look like even with the addition of Ameriana and the quarter they declined from third quarter to fourth quarter just kind of what the improvement was. I think Ameriana maybe added 8 million or 9 million to the non-performing number but still you could give more color on that would be perfect. Thanks.

Sure. Thanks Brain. Yeah, you know in the fourth quarter as I mentioned when I look at the Ag portfolio, we’re looking at farmers that are coming out of the field that have had some deterioration. We’re grading those appropriately. And you know there is some effect of borrowers who are related to Ag and manufacturing you know by extension and you know it is having an effect of driving that. That number on the criticized somewhat but on Slide 19, you look at 2015 hits down for classified even in the fourth quarter and then the criticized number is, you know it’s really kind of flat up a little bit and it’s you now it’s just a part of the ongoing grading in the portfolio. So I don’t see it as you know a core trend necessarily. I think when I think about names that are in that bucket, there are names that are going to be in that bucket and come out of that bucket based on performance in a given couple of quarters. So I don’t have a high degree concern over that movement. As it relates to the NPAs. If you want me to speak to those, I mean we continue to more ORE [ph], you look at that other real estate number in a 11.6 for First Merchants by itself that’s down you know prior to adding the Ameriana really it’s the 5.8, 5.7 is the Ameriana ORE and we just continue to make good improvement, our 90 days plus delinquent is down, our non-accruals down and I don’t really have it on the slide but it’s on the press release. We’re making progress as well on the overall delinquency somewhat. So overall that the trends are positive year-over-year and for the current quarter.

Got it. Okay, thanks for taking the questions guys.

You’re welcome.

And our next question comes from Justin Morrow from [indiscernible]. Please go ahead with your question.

Good afternoon, guys.

Good afternoon, Justin.

Just quick question on the Scott’s question on the expense run rate. So is that coming out of the gates or I presume that is it exiting ‘16 just as the Ameriana’s cost or just trying to think of the timing of the redundant cost and as you convert in a couple of month.

Yeah, Mark I can see is looking for report. So if you think about our fourth quarter of 2015 in the captions that Mark covered, it was the professional fees investment banking and such, it was the looking forward severance for those folks that won’t be joining us permanently, it was a recognition in the fourth quarter of those folks at Ameriana whose talents knead through the integrations. Well that was last year. If you think about the first quarter of this year, what all will really have is the ongoing salary expense of those folks that will be leaving the company post March, so we’ll have one more quarter of a normalized salary level distinct from that severance amount as you can read that as much lower than ongoing. And then that will all kind of come to a close about the very first week of April and so the second quarter I made a comment in the press release you might have seen Justin the talks about looking forward to seeing our progress crystal clear in the second quarter freed up of all of those M&A related expenses. But I think that the heart of your question is, should you expect meaningfully lesser onetime number in the first quarter and the answer is yes.

Okay, well, I guess I’m little confused. I am looking at the slide relay of that, the onetime expenses for ‘15 and you have 4 million and 4 million that was more contractual write offs and such right, is that what you’re saying earlier is have to have in here?

Fourth quarter of ‘15.

Yes, correct.

Yes.

So we’re anticipating to having higher level for ‘16 first of all will be our highest quarter, because we are carrying more expenses for Ameriana prior to integration.

Okay, so...

That to be 47.5 million somewhere in that range and then it declines by almost $3 million that’s going in to the second, third and fourth quarters begin to spend the average of that I was talking about.

I got it, okay, that was my question. So it’s starts - you said 47.5 and then that’s the peak in there?

Yeah.

Got it, okay. And then other one little quick, you laid out the tangible book, I appreciate. So you said it’s $0.09 better than you modeled and since there was a lot of mashing of teeth yesterday one of your larger peers about a static method versus a crossover method, earn back of dilution, where does that get you guys do you think you know when you look at Cooper, Ameriana and Insurance Group, so you are $0.20, you know now that you are going to be on the positive side, you are in that back, what is that gets it to, what you think ultimately in terms of your back?

We think it moves the earn back you know close to a year shorter than what we are estimating. And we’ve - those two transactions were on the high end of three years to low end of four years. So it’s - we definitely get a nice pickup, that is almost disappears that basis where would we be …

Yeah, do you mike on?

Hopefully I am using the term correctly but it on a static basis where would we be on our own compared to where are we with the acquisition.

Right, and that includes the earnings loss from insurance business, right?

It does, yes.

Got it, okay. Thanks guys.

Thank you.

And at this time it showing no additional questions, I’d like to turn the conference back over to management for any closing remarks. Just an appreciating for folks for the quality of their questions and attention. And Jamie, thank you for the call. I look forward to talking to everyone at the conclusion of our first quarter’s call and results in a couple of months. Thank you.

Ladies and gentlemen that does conclude today’s conference. We thank for attending. You may now disconnect your telephone lines.