Q3 2019 Earnings Call
All participants will be in listen only mode.
Should you need assistance placed at all that's supposed to start pressing the Starkey you followed by zero.
After today's presentation, there will be numbers you ask questions to ask a question of your press Star then one <unk>.
That's right question. Please press Star then so.
Please note this event is being recorded.
The truck haulage over yesterday, Scott, probably digital ads or.
But he.
Good morning, everyone. Thank you for joining us on todays conference call to discuss first financial Bancorp's third quarter and year to date 2019 financial results.
Participating on today's call will be Claude Davis Executive Chairman, Archie Brown, President and Chief Executive Officer, Jamie Anderson, Chief Financial Officer, Adult Harris, Chief Credit Officer.
But the press release, we issued yesterday and the accompanying slide presentation are available on our website at Www Dot bank. It first dotcom under the Investor Relations section.
We will make references to the slides containing the accompanying presentation during today's call.
Additionally, please refer to the forward looking statements disclosure contained in the third quarter 2019, originally it's always RCC filings for a full discussion of the company's risk factors.
Information, we will provide accurate as of September Thirtyth 2019, we will not be updating any forward looking statements reflect facts or circumstances. After this call.
I'll turn the call, but Archie Brown.
Thank you Scott good morning, and thank you for joining us on todays call.
Yesterday afternoon, we announced our financial results for the third quarter.
Before I turn the call over to Jamie to discuss those results in greater detail I would like to make a few comments regarding our quarterly performance.
Successful integration of better current global Forex and other capital deployment activities.
Our third quarter results were strong reflecting continued top quartile performance it make marking our 116 quarter.
Oh profitability consecutive quarter profitability or performance demonstrates strength in our businesses. Despite a more challenging interest rate backdrop.
As highlighted by consistent earnings solid loan growth and strong fee income.
For the quarter, our adjusted performance metrics included earnings per share of 56 cents, a 1.54% return on average assets.
A 17.6% return on average tangible common equity.
And a 52% efficiency ratio.
We're banking trends continued to be positive with loan demand remaining strong across many of our units.
Resulting in record originations, enabling us to grow loan balances by approximately 4%.
On an annualized basis.
Deposits were mixed with growth in our noninterest bearing balances tempered by lower money market balances.
And seasonal declines in public fund balances.
Our core net interest margin remains strong and on the high end of the range previously provided.
Supported by disciplined deposit cost management.
Enabling us to mitigate some of the impact from declining rates.
Overall credit trends are very good and improved during the quarter as both nonperforming and classified asset balances declined during the period.
However, we were disappointed and elevated net charge offs, which were driven by three franchise relationships discussed in prior periods.
I'll provide more comments regarding the franchise portfolio a little later in our discussion.
Our fee income performance was a highlight this quarter with growth of over 15% year over year, driven by continued record client derivative fees and mortgage income.
And the addition of foreign exchange income from our newly acquired Bennick Burn unit.
As anticipated the third quarter saw 49% decline in bank card income.
The linked quarter due to the impact of Durbin.
Our 52% efficiency ratio continues to be a bright spot.
Although we saw elevated expenses during the quarter, even after adjusting for severance and merger related items, largely driven by performance based incentives.
Tenured strategic investments and some transitory expenses.
We were also pleased to complete the integration of Bannockburn during the quarter, which will allow us to broaden the product offering to our middle market clients.
While also enabling us to provide banking services to their extensive customer base.
The addition of this experienced team and its capital market offerings creates tremendous opportunities for our banks clients and shareholders.
During the quarter, we made progress in our share repurchase program by buying 1.1 billion shares.
We were able to enhance shareholder value, while sustaining financial strength and capital flexibility.
Well the acquisition of panic burn in the share repurchases must be impacted our capital ratios.
Our continued strong capital levels provide opportunities for additional capital deployment opportunities in the future.
With that I'll now turn the color to Jamie to discuss further details of our third quarter results.
After Jamie's discussion I will wrap up with some comments on our franchise portfolio.
Forward looking commentary and closing remarks, Jamie.
Thank you Archie and good morning, everyone.
Slides three and four provide a summary of our third quarter 2019 performance as Archie mentioned third quarter performance was solid as loan growth net interest margin fee income and efficiency, all met or surpassed our expectations.
Capital ratios remain healthy despite declining slightly as a result with closing the bannockburn acquisition and share repurchase activity during the quarter.
Although the interest rate environment continues to be challenging our overall profitability remains strong in relation to our peer group.
Slide five reconcile reconciles our GAAP earnings to adjusted earnings highlighting items that we believe are important to understanding our quarterly performance.
Adjusted net income was $55.5 million or 56 cents per share for the quarter, which excludes $5.2 million of severance and merger related costs.
And 711000 of cost related to branch consolidations.
As shown on slide six these adjusted earnings equate to a return on average assets of 1.54% and a return on average tangible common equity of 17.6%.
Further our 52% adjusted efficiency ratio reflects our continued ability to appropriately manage expenses, while making targeted investments in growing the business.
Turning to slide seven net interest margin on a fully tax equivalent basis declined eight basis points in the third quarter to 3.96%.
The margin was negatively impacted by lower interest rates, resulting in lower asset yields.
Basic net interest margin declined nine basis points compared to the linked quarter as lower asset yields combined with additional days in the quarter more than offset a favorable shift in funding cost and mix.
As we've mentioned in previous quarters, we anticipate further margin pressure given the potential for additional fed rate cuts, which will negatively impact asset yields as our loan portfolio is 59% variable rate.
As shown on slide eight the yield on loans declined 15 basis points and the investment yield dropped eight basis points.
We partially offset these declines by proactively managing our deposit pricing, which helped to lower our cost of deposits by two basis points.
Slide nine depicts our current loan mix and balance shifts compared to the linked quarter.
End of period loan balances increased $83 million as I see Ari and mortgage loan growth outpaced a slight decline in C and I and an intentional reduction in franchise balances.
We remain optimistic regarding future loan growth potential and expect the fourth quarter to approximate the third quarter results.
Slide 10 shows the mix of our deposit base as well as the progression of average deposits from the linked quarter.
Average deposit balances declined $78 million as public fund and money market declines outpaced increases in noninterest bearing accounts and brokered Cds.
Overall deposit cost stabilized and began to slightly declined in the back half of the of the quarter with a reduction in interest rates.
We intend to actively manage these costs in future periods to help alleviate pressure on the net interest margin.
Slide 11 highlights our non interest income and expense for the quarter.
Fee income was bolstered by the Bannockburn acquisition as well as continued momentum in client derivatives deposit service charges and mortgage banking.
These fees helped offset the impact from Durbin, which drove a 3.2 million dollar or 49% decline in bank card income during the period.
Noninterest noninterest expense for the quarter is depicted on slide 12.
Higher salaries and benefits were driven by incentives tied to the overall company performance outpacing our peer group as well as the strong client derivative and mortgage banking income.
The quarter included $1.4 million of Bannockburn operating costs.
In addition, we had approximately $1 million of transitory costs.
Such as recruiting fees fraud, and Oreo losses that we don't expect to occur in future periods.
We also recognized an FDIC assessment credit during the quarter, which helped offset the increase as previously mentioned.
Slide 13 depicts our asset quality trends for the last five quarters.
Provision expense declined during the period, although it was slightly higher than expected.
Third quarter net charge offs were $10.2 million or 45 basis points of total loans, which included $6.3 million related to three franchise relationships discussed in previous quarters.
Classified assets, which we believed to be the leading indicator of credit losses declined as a percentage of total assets from 1.02% to 0.92%, which has the lowest level in over a year.
This classified asset level combined with the resolution of problem credits drove the decline in the loan loss reserve balance.
Finally, as shown on slide 14, and 15 capital ratios remained strong and are in excess of our stated targets.
As Archie mentioned, we were we were active in repurchasing 1.1 million shares during the quarter.
Which reflects our intention to maximize shareholder value, while sustaining financial strength and capital flexibility.
Our tangible book value in capital ratios were modestly impacted by the acquisition of Bannockburn and the share repurchase activity.
Tangible book value per share declined 3.6% during the third quarter to $12.33 and our tangible common equity ratio declined 17 basis points or 1.8% to 9.17%.
I'll now turn it back over to Archie for an update on the franchise portfolio thoughts on our fourth quarter outlook and closing comments.
Thank you Jamie.
On slide 16, we provide additional information regarding our franchise portfolio.
As stated earlier, we incurred additional losses in this portfolio during the quarter.
Related to three relationships.
The 6.3 million in charge offs 3.2 is related to the <unk> resolution of the large relationship we disclosed in the first quarter.
Remaining 3.1 million relates to the continued work out of two relationship discussed in prior periods.
Slide 15, 16 reflects that of the current foreign 74 million to our portfolio.
29, and a half million dollars is rated special mention.
Or substandard nonaccrual.
Pre relationships mentioned above represent all of the substandard nonaccrual balances.
A few other points to make about the status of the current portfolio.
The overall portfolio is performing well, 94% is rated pass.
We monitor the portfolio on an ongoing basis and proactively manage relationships.
Portfolios granular top 10 relationships comprised 29% of the portfolio.
Make up all of the relationships over $10 million seven of which have real estate as additional collateral. In addition to all business assets and the personal guarantee of the owners.
As I mentioned in the first quarter, we've been proactively managing this portfolio to improve its overall risk profile.
Since late 2016.
Since year end 2018 to portfolio has declined by 15% as we exited relationships that we determine did not fit our risk profile.
Or that at that material deterioration of performance.
We estimate the portfolio will decline another 10% to 15%.
Due to the essential slowing origination activity and the work out of special mention and substandard loans.
Before we had our prepared remarks I want to comment on our forward outlook as shown on slide 17.
We remain optimistic in our ability to maintain loan growth given the continued strengthen our loan pipelines.
We expect loan balances to increase in the low single digits on an annualized basis for the fourth quarter.
Long term, we continue to target mid to high single digit growth given the investments we've made in talent.
Our core operating markets and our comprehensive product offerings.
Regarding the net interest margin projections will be largely dependent on the path at the fed takes moving forward.
Assuming no further cuts or outlook is a 3.65 to 3.7 <unk> percent.
Margin excluding purchase accounting.
As always the net interest margin can fluctuate depending on a variety of factors and we actively work to mitigate downward rate pressures on the asset side.
Through disciplined deposit pricing management.
As stated earlier credit quality is stable with a normalize provision covering charge offs and accounting for loan growth.
Every individual loans can have a transitory impact from time to time.
We expect fee income to increase to the range of $34 million to $36 million over the next quarter.
Including the full quarter impact of Bannockburn, which represents approximately $6 million of income.
With respect to expenses, we continuously focus on efficiency.
Even while making strategic investments to support the long term success of our business.
We expect expenses in the range of 80 46 million, including the five and dollar.
Quarter impact of Bannockburn.
With regard to taxes or I went to the fourth quarter is 17.5% and.
And includes a 2% reduction for the expected recognition of tax credits.
With Bennett burn closed an integrated our strong are strong capital levels earnings power and consistency from provide flexibility for continued capital deployment strategies.
We're pleased with the strength of performance of our company. We believe this strength positions us well for managing in the current environment and pursuing growth opportunities that meet our objectives.
At this point. This concludes the prepared remarks, we'll now open up the call for questions Keith.
Yes. Thank you well now begin the question and answer session to ask a question you Press Star then one on your Touchtone phone you feel you can't Speakerphone. Please pick up your handset before Preston AG.
I'm sorry. Your question. Please press Star then show this time, we'll pause momentarily to assemble a roster.
And this one is first question comes from Scott Siefers with Sandler O'neill.
Morning, guys. Thank you Hey, Scott Scott.
Just first question on the franchise.
Finance portfolio Archie just curious about your thoughts on any additional.
Loss content within the portfolio and.
Why we didn't see a need to reserve for any of those I guess a source of the question is back in the second quarter I think we've discussed a couple of the.
Credits, but it didn't look like there was going to be any charge off related to them at that time, if I recall correctly. So just curious how sort of thinking projected between then and now.
Yes, Scott on the on the first part of the question we did.
In the prior quarter.
Have a higher increase reserve related to.
The one that was resolved.
This quarter.
And.
Then there was a charge against that not not a full chargeable discharge against that reserve this quarter.
So that's the 3.2 million dollar piece I believe with respect to the other two.
Theres been some further deterioration in the credits I think the one.
Came up last last quarter and a question because I believe it was had moved to a non accruing TDR status.
And at the time, when we looked at the overall value.
Price value of the stores involved.
We believed.
We had a we had it adequately a valued.
What's what's been suits sense with respect to that one.
Is that that franchisee had to store concepts.
And in fact, what's occurred as one of those concept has now been sold.
And as part of that sale.
There was there was some loss that we recorded so that's that's that one.
With respect to the third one I spent a longer term problem, probably for two and a half years or more.
And we had to say we thought we had a sale worked out with that credit.
And for multiple quarters had been an ongoing due diligence and that sale fell apart.
And as we started to evaluate.
The current performance of the stores, we believed it was appropriate to take a partial charge down that one now is again in negotiation with another party for sale.
Okay perfect. Thank you, but I guess ultimately it seems.
Two while maybe these days.
Handful of credits has maybe take them taking longer and cost of that more than we thought it seems like it is indeed isolated to these couple it's not the broader franchise portfolio fair enough a assessment.
Yes, I think if you look at the industry. There's some there's some challenges labor cost and some other things overall, but when we look at our operators, especially with some of the window when we've done in the portfolio over the last.
Your plus Scott we feel like.
The operators, we have our high quality operators.
And performing a if you look at the overall portfolio performing well.
Yep.
Perfect and then separately Jimmy question on the margin just so I understand it perfectly we've got a we're looking for basic margin of five 365 to 370 or at least margin before purchase accounting adjustments through 65 through seven but if we might get.
Another rate cut by the fed here at some point in a very near future that would it imply most of the quarter's worth of impact for an additional six to eight basis points of production. So if we do get caught presumably it would come in below this 365 to 370 right.
That's correct, yes, so the the 365 to 370 assumes no further rate cuts and then so do we were kind of trying to set it up for.
You and your colleagues to be able to then assume because we know you guys assumed when cuts at different times. So basically 365 to 370 with no further cuts and then a six to eight point.
Kind of.
Just a point drop with a with each 25 basis point cut.
Okay.
And your idea that however, you.
How are you see fit.
Alright, Thanks, a lot guys appreciate it.
Scott.
Thank you and then next question comes from Chris Mcgratty with KBW.
Hi, good morning.
Hi, Chris Chris.
Joining me on the margin question for you you shrunk the investment portfolio by 300 million on an a period basis I'm interested in kind of thoughts on the balances of that portfolio going forward and also kind of as you kind of take a step back at the margin is going to be under pressure like most banks.
Our earning assets, how do we feel about fourth quarter, earning assets and net interest income and got so people are really focusing on is the revenue yes.
Can you just maybe I'll add some color there. Thanks, yeah, so just with.
The shape of the yield curve we did.
Throughout the third quarter reduce the port the investment portfolio by 300 million I think on average it was down about 120 million for the third quarter, but we'll get the full effect of that.
The fourth quarter, so what we did lose sold.
Centrally sold securities that had an average yield of about call. It around 250, and then reduced a short term borrowing so the the spread on that was relatively low was very low and so we just essentially de levered a little bit and.
And reduce the portfolio so our intent for that for the short term is that we will keep the portfolio basically right at that $3 billion. So at the at the level that we ended the third quarter, we'll keep the portfolio at that level and then.
The earning asset growth would be the growth that we see in the loan portfolio.
Okay, great and kind of thinking out you know if we stay in this environment you do have some borrowings on the balance sheet mean, it just kind of a strategy that might be considered more into 2020, just kind of shrinking.
Building a little bit capital.
Recycling it by buyback as it does that kind of what you're thinking.
Yep, that's exactly what we were what we were thinking that we we are.
You know based on where our stock prices we would be.
In the market buying shares like we did in the third quarter.
And.
Reducing the balance sheet and increasing the capital ratios in order to essentially subsidize the the share repurchase.
Program.
We would continue that if it given the yield curves things site.
Understood Okay great.
And then maybe I could think when it on the on the deal.
I think when you announced you said it was going to be around a $30 million annual revenue plus about 15% annual growth I think the guide says.
6 million for the quarter for Q4 is that is there seasonality in the business or is or revenues a little bit less than what you might have thought initially.
Yeah, Chris This is Archie there is some seasonality.
You know.
During the integration Theres, just a little bit of.
Noise in and attention on.
Looking through the deal, but as we look at.
Q4, I think we're saying approximately 6 million and then if you look at next year, we would still think that we're going to see probably.
No more like an 8 million a quarter and it won't be linear, but it'll be a kind of an average of that throughout the year. So you're talking in the low thirtys in terms of revenue next year.
Okay, Great and just the final one if I could the tax rate that youve pointed out Jamie in the fourth quarter. That's a that's just one quarter of at right as it goes back to what 19 and a half next year.
That's correct, yes, we're looking at getting some tax credits in the in the fourth quarter, assuming a a new market tax credit project goes into into effect.
Okay and same with the FDIC assessment right that'll that'll go back assuming you don't get another refund.
That will bounce back now the fourth quarter will still be a little bit lower because we have some credits still too.
But.
It will go back to kind of normal levels. It'll go back I would say, it's about half normal levels in the fourth quarter, and then first quarter back to 100%.
Great. Thanks.
Yep.
Thank you and then especially commentary Mcelroy with Stephens.
Morning, guys monetary.
Thanks for the details on page 16, I guess the.
The annual review that you do on the portfolio.
Since the last time, you kind of reviewed the portfolio specifically those top 10 relationships as well as that largest relationship was that done in the quarter earlier in the year.
Or.
Or last year.
It Terry this is a I'm gonna have bill here at our Chief Credit Officer.
Jump in here in talking about the process, we used for ongoing reviews and in regions absolutely can be we do a quarterly review.
Of all the crop of all the a franchise transactions, including covenant reviews et cetera than we do a full.
Pass review on everything about $5 million.
The next one for that review is going to be in November .
We have we do touch anything above.
Oh really above the 5 million dollar level in a covenant test on a quarterly basis. So we do a full deep dive twice a year.
And we do a little bit lighter touch every quarter.
Thank you and then as a follow up question I guess any c., so less than three months away any thoughts on Cecil as we think about 2020 and then.
Do you guys disclose the loan Mark that will flow into the reserve on January 1st in connection to see so just so we're modeling out the reserve as accurate as we can today.
Right. So the but the second part of that question the amount of the Mark that will flow into the reserve is very low just given the fact that we didnt have by any purchase impaired loans.
It was very low compared to the.
For the acquisitions so.
The on the Cecil side.
You know at this point, we are we're not disclosing the range at this point I'd say at this point, we are in the where we are kind of it tweaking kind of the the models that we have we've had a couple of dry runs and then a parallel run that would.
Based on our on our data.
And we're really we're just working through final assumptions and our and our internal control. So we're in good shape to be ready to go January one without our model validated.
But we are not at this point prepared to disclose what that range is now keep in mind with our with our C. So reserve. Our reserve is going to go up I would say at a higher percentage than most of our peers just given the fact that we have a.
A fairly large percentage of acquired loans that are sitting in our loan portfolio that currently have no reserve.
So it's going to go up by a bigger percentage, but.
We're not at this point prepared to disclose that.
And will that be something in your 10-Q, something you'll talk about in January when do you expect to have some final numbers around Cecil.
Yeah, we're still evaluating that whether we're going to put that in our in our Q or whether we would follow up with that later.
Okay.
Thank you guys.
Sure.
Thank you and then next question comes from nascent race with Piper Jaffray.
Hi, guys good morning.
Well, maybe last question on the deal I think when you announced a transaction you guys are targeting a pretax merger around 40% and the guidance you guys to ride for fees and expenses tied to panic burn implies a little lower margin for the fourth quarter and Archie I. Appreciate your comments at the fees should ramp as we move into next year, but just any color.
In terms of if you guys still think that 40% pre tax margins doable or if maybe there so upside just given the cost side of equation.
No we think the.
The margin.
Disclosed before.
He is really kind of an EBITDA margin to that they were they were tracking to we still think that that's that type of a contribution is is similar to what we.
Thats shared with you before.
Okay got it and then if I could just us one kind of housekeeping question on the purchase accounting accretion I think in the past Jamie you have suggested should decline by a basis point or so and each subsequent quarter. That's still right way to think about that's declined.
Yes. So we are based on our prepayment assumptions the fourth quarter is between 19 and 20 basis points of purchase accounting accretion and then that again that goes down you got it right. It goes down.
Call It a basis point to have each quarter.
Okay perfect I appreciate you guys taking the questions.
Yes.
Thank you and once again as a reminder, please press star and then one if you would like to ask your question.
And the next question comes on Jon Arfstrom with RBC capital markets.
Hey, good morning, guys.
John .
Just.
One follow up and then I just want to talk about loan growth as well, but Archie you talked about them franchise finance longer term plan to bring balances down a bit more 10% to 15% what kind of time period are you thinking about on the.
Yeah, I think if we look at John Weve been kind of looking you go ahead and.
That's probably.
Four to five quarter.
Hi period.
As we're looking out that's probably what you'll see it'll just trend down.
From this point probably through the end of 2020.
Okay.
Okay.
Absolutely.
And then on.
Slide nine.
We opened up a decline in commercial.
And I think that's separate from finance Big franchise finance, because you haven't gone below so maybe talk a little bit about that what's happening there.
Yeah.
Some of this was yeah. We made we made didnt make some other progress and.
Some loans that we were let's say we wanted to move out we made some progress during the quarter.
In our commercial group in particular.
Yeah, I think thats a piece of it we had a on the commercial side, we had little bit of a lower origination quarter than we've seen in the prior quarters, we've got some decent pipelines, but for the quarter.
The originations were.
Lower than what we've seen in let's say you want to work Q2. So I think it's a combination of those two things.
Got it.
And then one question on deposit costs, Jimmy I think you mentioned.
Later in the quarter second enough the quarter, you guys ruble bring down from deposit costs, just curious maybe the magnitude of it and what you did in any surprising reactions at all or customers generally expected.
John This Archie I'll start, making any can instantly.
We even in the summer, we sat down with our arc.
Consumer team in particular and talk about where could we will make some real progress and and for us.
So that comes more in the money market category in particular, so we took some.
Some actions there in particular.
Of course, there's.
CD balances, we started to adjust those as well so those are probably the areas. We focused on first you think about it in the.
A lot of the interest bearing.
Other interest rate transaction accounts or savings got theres, not a lot rooms suites money market for us its Cds.
It's probably public funds a little bit.
I'm, a little more elastic, but still we probably a little progress there as well. So those those are the key areas that I think you focused on and probably starting July ish. Yeah. So I mean I would tell you first John we thought that are.
Keeping our deposit cost just where we kind of we're in the in the interest rate cycle coming into the quarter with.
But potentially see deposit costs costs at best.
Remaining flat I think we were able to get out in front of it a little bit we got I'm.
Not overly aggressive but move some of our pricing down on the money market side.
And you know we saw those costs kind of flatten out in the in the first part of the Oh the quarter and then we were seeing a couple basis point drop in deposit cost in the last couple of months of the a of the quarter. So I was I would tell you I was pleasantly surprised I was I thought.
They would be flat or for the quarter. So getting those couple of bases points out of the deposit cost side was nice on the a and help the margin.
No. It's good to see okay. Thanks, a lot guys I appreciate it.
Yes, John it's thank you next question was a fall from Chris Mcgratty with KBW.
Yes, thanks to the follow up.
Jimmy Archie you guys had a really good history of managing costs in regards to see environment.
How do we think and obviously expanded versus going to put a little bit.
Put pressure on your efficiency ratio, how do we think about the bank in terms of operating efficiency heading into the next.
Several quarters a couple of years, if this environment persists.
Other levers you can pull in the expenses I mean.
What's the kind of a range that you guys are targeting.
Yeah. So you know if you look at our outlook Slide you know you take the middle of it were projecting call at 85 million and and non interest expense here going forward I think I mean overall I would tell you you know we will see you know I would call at normal kind of annualized percentage increases than that.
No 4% range, but I mean, we are.
We are taking a look at strategic investments and I'm on the technology side, but Dan on the on the flip side of that we're looking at ways that we can offset that and cut costs elsewhere. So we can reallocate dollars.
Within the organization and and make those strategic investments whether it is reducing the branch count or now using technology to get more efficient so.
Having said that.
With the decline in the margin and also with.
With Bannockburn, having a you know just a higher efficiency ratio you will see our efficiency ratio tick up a little bit we've been in that 50, 50% to 52% range kind of over the last three or four quarters. Once we got through all of the you know Evan.
They all of the merger and getting the cost savings.
Out of that but you will see that tick up a little bit you know given that given the investments we're going to make and also with Bannockburn. So you might see a tick up a couple of percentage points.
Great. Thank you.
Thank you.
Some I wouldn't like to return the floor to Archie Ralph for any closing comments.
Thank you Keith.
Thank you everybody for being on the call today and.
Listening to our quarter we.
Feel great about where we're heading as a company and.
We're talking again next to next on every day.
Thank you.
That's how concluded thank you for attending today's presentation. You may now disconnect your lines.