Question-and-Answer Session
Operator
Thank you. The question and answer session will be conducted electronically. (Operator Instructions). And we'll go first to Matthew Clark of KBW.
Matthew Clark - KBW
Hey, good morning guys.
William Reuter
Hi, Matt.
Drew Hostetter
Good morning, Matt.
Matthew Clark - KBW
Can you first just touch on tangible capital here now or I guess down to 463 and I think you guys targeted about 6%. Just what your thoughts are... obviously rebuild and I guess your appetite possibly to look at the dividend as well.
Drew Hostetter
We do target 6% but we do the calculation different than how you are doing it. The first difference in math is that some of our goodwill on our book is related to Asset Management purchases which were done 338 H10 election or purchase of asset for tax purposes, any impairment of that goodwill or loss of that goodwill adds up on the tax benefit of 35%.
So, if you would end up writing off any of the goodwill associated with those 338 external actions, you will get immediate 35% tax benefit to your income statements. Therefore, you're only reducing your tangible common equity by 65%, not by the full 100%. When you take that into consideration, your intangible common equity calculation that puts $54 million back in tangible common equity or increased the ratio to 5.05%.
Okay. Second thing we look at differently is the OCI that we have is all related to securities which is temporary in nature because if it was other than temporary we'd have to take the charge to the income statement. So, when we look at our intangible common equity, we look at it before OCI. If we had OCI back there, we're at 573.
So, we are trying to get back up to the target of 6%, based upon how we look at, we will not take it below 5%. But our target is 6.
Matthew Clark - KBW
Okay, great.
William Reuter
Now, this is Bill Reuter. I'll mention just a couple of things to try to answer your question, Matt. Our dividend on the table every time we go into a Board meeting, we had a length of discussion about dividend just last week. So I had to pay the full dividend.
So we do look at dividend as a potential way to increase tangible common equity if needed to. Obviously other ways that we will do it would be to go out and raise money in the market. We don't think the markets can do something right now without a reason.
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