Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Aaron Deer with Sandler O'Neill. Your line is open.
Aaron Deer – Sandler O'Neill
Hi. Good afternoon, everyone.
Mike Descheneaux
Hello Aaron.
Aaron Deer – Sandler O'Neill
I guess in my question, I would like to ask about the – the cashes on the balance sheet haven't brought in all these deposits on balance sheet, you’ve got a tremendous amount of cash there. And I guess it is the deployment of that cash, it’s going to help to drive some of this margin compression that that you expect to see. Can you talk a little bit about how you intend to invest that and how quickly and maybe specifically what kind of - I imagine some of it’s just going to be deployed into securities always near-term here and what kind of securities might be put in that and what kind of yield your are seeking?
Mike Descheneaux
Yeah, Aaron this is Mike Descheneaux here. In general, we will be continuing filing our investment policy, which is traditionally into fixed income securities. And I think you raised an important point about a distinction between here in the short-term as well more in the long-term. Our biggest priority here right now is maintaining security of those funds as well as liquidity. I mean those are two extremely important variables. So, right now, certainly we are very heavily focussed more on the short-term overnight investments. And as we’ve began to understand more clearly the behavior deposits, in other words will they end up sticking on our balance sheet, or how sticky will they be, that will begin to dictate more or less where we start to invest the monies in longer term securities, again following the premise for a safety and liquidity. As far as yields right now again I am not prepared to comment on this at this moment.
Aaron Deer - Sandler O'Neill
Okay. It sounds as though you are comfortable just letting the certain cash or cash lite products here for the time being?
Mike Descheneaux
You know until we see a little more clarity on that deposit behavior I think that is extremely the most sensible thing is environment. The last thing that we want to do is all of them get looked into a longer-term decision that we don’t have the clear vision on what’s going to happen with that deposit behavior. Again one other things to also remember why we were also after this - driving these assets on balance sheets, again is more focusing on our loan to deposit ratio to make sure we have the appropriate funds to be able to lend for the future.
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