Q4 2019 Earnings Call
Ladies and gentlemen, this is the operator today's conference is scheduled to begin momentarily until that time Airlines will again be placed on music cold. Thank you for your patience.
Today's call is being recorded.
At this time, all participants had been placed only listen only mode and the floor will be open for questions. Following the presentation. If he would like to ask a question at that time. Please press star one on your Touchtone telephone.
If at any point. Your question has been answered you My my route remove yourself from Q I presume. The Penske, we ask that you. Please pick up your handset to allow optimal sound quality.
Speaking today will be Scott Cabinet first foundations, Chief Executive Officer.
John Mitchell Chief Financial Officer.
David Depaolo, President and John how Kopin, President and first Foundation advisors.
Before I hand, the call over to Scott. Please note that management will make certain predicted.
Statements during today's call that will reflect their current views and expectations about the company's performance and financial result.
These forward looking statements are made subject to the safe Harbor statement included in today's earnings release.
In addition, some discussion may include non-GAAP financial measures.
For a more complete discussion of the risks and uncertainties that could cause actual results to differ materially from any forward looking statements and reconciliations of non-GAAP financial measures see the company's filings with the Securities and Exchange Commission.
And now I would like to turn the call I've just got Kevin <unk>. Please go ahead.
Good morning, everyone. Thank you for joining us.
I would like to welcome all due to our fourth quarter 2019 earnings conference call.
We will be providing some crude prepared comments regarding or activities.
And then we were respond to questions.
As highlighted in the press release 2019 was another great year for first foundation.
Earnings for the fourth quarter were 15 million or 34 cents to share.
For the full year earnings increased by 31% over 2018 to 56 million or $1.25 per share.
Total revenues were 54 million for the quarter and 212 million for the year, an 11% increase over 2018.
Our tangible book value per share ended the year at $11. Some 57 cents, which was a 12% increase during 2019.
At the start of the year, we initiated a cash dividend.
And over the course of the year. We're pleased to report that our stockholders enjoyed a payment of 9 million and positive performance on our stock price.
As we announced yesterday, we increased that quarterly dividends for the first quarter of 2020 by 40% from five cents to seven cents per share.
Taking a look at our lines of business.
Banking operations experienced strong growth as loan production reached 1.9 billion.
Loans increased by 254 million and deposits grew by 358 million.
Our Trust Department posted record revenue numbers and assets grew by 20%.
Our wealth management business experienced a great year with an increase of 504 million and assets under management.
And a total at the end of the year was 4.4 billion.
Let me also share some other highlights for the year.
We enhanced our digital banking offering, including the digital delivery of our products, providing another source of deposit customers. The increased presence. The first foundation brand across digital marketing channels and the investment in state of your technology to better serve.
Our clients.
In 2019, we also successfully completed this style and securitization of 551 million a multifamily loans in the third quarter.
This is the fourth such securitization since 2015, we have sold 2.1 billion in loans.
2019 star launch of a municipal lending department.
Offering a lending solution for small and midsize municipalities seeking financing for infrastructure projects.
Or other cash needs.
We received recognition in the media and then the community for order for our charitable giving efforts. This included the revamp of our supporting our communities nonprofit initiative to make an even greater impact and the communities we serve.
We appointed two new board members, which increased the diversity and elevated the overall profile of the board.
In several of our team members receive industry accolades for their leadership and contributions to the banking and financial services industry.
I'm so proud of the contributions of our entire team and I'm grateful to the employees, who work hard every day to deliver the amazing results for our clients overall, it's been a strong year I believe the strength of our offerings and the more favorable economic outlook position us well for the year ahead.
And with that I'll turn the call over to our CFO John .
Thank you Scott.
We'll provide a brief summary of our financial results for the quarter end year.
Total revenues for the fourth quarter and full year 2019 were 8%, 11% higher respectively for the corresponding period in 2018.
Earnings for 2019 were $56 million, a 31 and 31% increase from 2018.
For the fourth quarter of 2019 earnings were $15 million, an 8% increase from the prior year.
Fully diluted earnings per share were 34 cents and the dollar 25, respectively for the fourth quarter and full year of 2019.
Our net interest margin for the fourth quarter and full year, 2019 was 2.88% and 2.87% respectively.
The results for the fourth quarter and full year benefited from recoveries on acquired loans of 1.1 million and 4.1 billion respectively.
As a result result of the strong earnings our tangible common equity ratio at the holding company increased from 8% to 8.3% after we paid $9 million of dividends in 2019.
We benefited from the decrease in interest rates during the latter half of 2019.
Resulting in significant decreases in our funding costs.
Our overall deposit costs were 124 in the fourth quarter 2019, so from a high of 1.4% in the second quarter of 2019.
And our borrowing cost came down from a high of 250 in the first quarter of 2019% to 1.8% in the fourth quarter 2019.
Our loan yields declined slightly during the year from a higher 4.46% in the second quarter of 2019% to 4.37% in the fourth quarter of 2019.
The decrease in the yielding assets from behind a 4.3% in the second quarter of 2019% to 4.07% in the fourth quarter of 2019 was impacted by a higher proportion of lower yielding cash and securities to total assets.
Due to a focus on reducing cost non interest expenses for 2019, roughly 2% higher than 2018.
In fact, this increase was due to higher customer service costs and the full year of costs related to acquisition of Premier business Bank in the second quarter 2018.
As a result of our efforts our efficiency ratio improved from 64.4% in 2018% to 61.9% in 2019.
I will now turn the call over to Dave.
Okay.
Thank you John we had a great year at the bank the emphasis heading into the year was on maximizing scale and efficiency and I believe we accomplish that as evidenced by the financial results that we reported.
During 2019, we originated 1.9 billion of loans a record year for US included in that total was a record 712 million of Cnine loans, the composition of our loan portfolio.
In 2019 is as follows.
I'll take family, 53%, Cnine, 37% single family, 7% and other three.
As of December 30, Onest 2019, our loan portfolio consists of 53% multifamily loans, 21% business loans.
1% non owner occupied CRB.
Teen percent consumer and single family and 1% mining construction.
The credit quality of our loan portfolio is strong as evidenced by our low level up delinquencies and our NPL ratio declining to 20 basis points as of December 31.
Deposit growth remained strong with 358 million increase and balances in 2019, we experienced a 138 million increase at the branch level in 220 million increase in specialty deposit.
The growth in our deposit business.
During the year is also partially attribute to the success experience and attracting new mass affluent clients through digital channels branch deposits, including in our digital activities.
Which was launched in the fourth quarter totaling 149 million at the end of December .
Being able to attract clients via our existing branch network, coupled with our digital delivery capabilities will continue to set us apart in the industry.
All the success in 2019 could not have been achieved without the great team we have at the bank.
And all their efforts to support the continued growth of our franchise now I'd like to turn the call over to John Popeo unprecedented first foundation advisors.
Thank you David and good morning.
2019 can be characterized by strong year for the financial markets, especially in us equities.
From January to December the broader markets were up over 30%.
Our investment strategy it broadly diversified across asset classes in sectors, and we made many investments that proved to be beneficial for our clients in 2019.
Our overall assets under management increased by $504 million during the year benefiting from market appreciation as well as the addition of new clients.
Looking into 2020, we believe that economic expansion will continue, albeit more modestly than 2019.
And now that growth has stabilized and fears of a recession that we saw early last year up subsided. We feel we are well positioned for the year ahead.
That said.
There will be the unpredictability that comes as we enter the heart of an election cycle.
We remain confident in our investment philosophy, and the resulting exposure across our investment strategies.
Our process for delivering sophisticated wealth planning strategies continues to help us uncover additional opportunities to serve our clients, including making introductions to our banking and trust teams.
Our Trust Department has been instrumental in our ability to build and maintain relationships with our clients, especially for those with non traditional investment assets.
We maintain a strong pipeline and expect to continue to be successful in attracting new clients, while maintaining our focused on serving our existing clients.
Unlike the broader theme you heard from Skaaden, David we are leveraging technology to enhance the delivery of our services.
Overall, I'm very pleased with our accomplishments in 2019.
At this time, we are ready to take questions and I will hand, it back to the operator.
The floor is now open for questions at this time, if he would like to ask your question. Please press Star then the number one on your telephone keypad again that is start them number one.
Thank you. Our first question comes from Steve Moss would be Raleigh FBR.
Hi, good morning.
Hey.
I wanted to start off with the mix of commercial originations versus multifamily originations. This quarter and also wondering what your expectations are for 2020 in total originations.
Let's start with the mix.
During the quarter it was 37%.
See an eye.
Well and.
Our expectation going into next year as RC and I will continue to maintain about the same level.
As a percentage because we do expect some increase in our multifamily.
I think the good news for portfolio diversification has since we only sit around 20%, let's see an eye book.
Eventually if we continue to do 37% to 40% of our book our origination that book.
Will increase over time, and our expectation as we want to have about a third of our book always and Cnine.
So we feel really good above that so our expectations for next year is.
The to do.
About the same maybe slightly more.
In in Cnine.
And then overall I would say, we expect a slight increase.
From the the 2019 level the one.
Positive thing going into the year is.
Our pipeline Sir are very robust lot of positive things going into the yes into 2020, but yes, we do have a robust pipeline on ill on all levels.
Included in that is one.
About 500 million of those originations were line of credit in term loan so not.
Because did an owner occupied CR rate, so they weren't necessarily real estate related.
As well as our equipment Finance group is.
Approaching a $100 million run rate. So that's that's a very strong for us.
And Steve I do want to point out that.
We have already.
Negotiated to have a security station.
Yes planning on having it in the third quarter, Yes, I would expect that.
Some are timing for this year in September .
For approximately the same level, we typically budget around five to 600 million range, which similar execution.
And.
Have you hedged hedge the security the 500 million of loans classified held for sale or how are you thinking about that.
We would have made a joke, but it probably wouldn't be that funny.
No no time, we have not hedged anything.
Okay.
Good I would say Steve the good news around that as we have what we have available for sale, but we have what is the that's our insight book and then we have our outside book, which is a larger group of loans.
That we would use for hedging activities in the range of yield on those.
Pretty broad so going into a securitization unlike last year, where we had locked in higher yielding loans.
This year.
It's basically on balance sheet hedge at this point.
The other aspects on to hedging Steve is that we took on a 500 million dollar one year FHLB advance to lock in the rates.
Since we're trying to pass on hedging on balance sheet already.
Okay.
More towards the securities portfolio.
Okay, and then I guess in terms of just.
And with the the production side of things here, where are you seeing new money Leo new money yields on both commercial and multifamily loans.
Well on the multifamily side, we've been floored out for I would say ever.
Because those were the yield curve expense.
Our yields have been end the kind of.
380 range for the fourth quarter was 380.
For for Awhile, So it's come down from.
Earlier locked product, but we're still seeing even with kind of the volatility current volatility in yield curve.
Still our pipelines at about that rate or maybe slightly above.
On the Cnine size, it's come down I would say.
Consistent with LIBOR.
So, we're probably down about 75 basis points, but.
From the beginning of the year to the ended the year.
Actually by about 40 basis points the.
The interesting part for US is if we look at our business plan.
So we've kind of model current rates all across the board in units.
Provided us a consistent.
Projection of NIM going into next year or this year.
So basically a relatively stable margin for 2020.
As we feel so I think.
Part of the flatness of what we're experiencing now was the Frontloading of securities and some excess cash that we had on the balance sheet from a couple of clients that we've redeployed into loans, but.
And our modeling does not anticipate any increases or decreases and interest rates by the.
Okay. That's helpful.
All right I'll step back thank you very much and good quarter.
Thank you.
Thank you. Your next question comes from the line of Matthew Clark with Piper Sandler.
Hi, good morning.
Good morning.
To do you have another the spot rate on interest bearing deposit costs at the end of December just to give us a sense for.
For going into.
I don't have that right I don't have the right in front me Matthew It is.
For the quarter.
The rates that we had were still declined slightly it's going to be a little bit below what we had in the quarter for the for the quarter.
Percentage I don't have the number in front me.
Okay, and then just the drop in noninterest bearing deposits I think you had a similar dropped a year ago in the fourth quarter I guess, what's your expectation for noninterest bearing deposit growth is that fully expected to come back in the first half the year.
Yes, we it was actually slightly higher.
Than prior years typically it was in the mid Thirtys, it's already building back yes.
Always the seasonality effect.
But those deposits have already started to increase your early in the first quarter, Yes, and then we'll have a little bit of dip in April and then it will pick back up through the summer.
Okay.
And then just.
I think you speaking just slightly higher origination activity.
This year I think you had talked about in the past wanting to maintain organic growth in that 10% to 15% range. You. Obviously did did better than that this quarter, but is 10 to 15 kind of the rate range to think about figure hfive portfolio.
Yes, we could obviously to more than that if we wanted to but thats kind of our internal.
Target some of it's dependent on.
Hey operates and other factors, but I was kind of going to say.
Thank you if you look into fourth quarter.
I think most banks and.
Had slightly higher prepayments than than anticipated. We can now the good thing is is that we have that ability to step up and and replenished the.
And one way, we can control our portfolio growth.
Is through the amount of securitization, we do as well.
We can upsize that if we have.
Excess production to keep our growth rate within the lines of what we expect or downsize and slightly.
As well.
Okay, and then do you happen to have the balance of year substandard special mention loans at the end of the quarter I know credits could I just wanted to get that Athena number.
I don't have a right we'll be focusing I don't have that again right in front me did decline.
Quarter over quarter from 32 basis points deployment.
As of yet spenders are a little different numbers, rather have the right in front me.
So thats a fuel thanks should we get out for a massive yes that would stay outside of.
A few anomalies, we had that weve been cleaning up in the last quarter and probably will continue to clean up in the first quarter.
The migration into.
Substandard and and it ultimately into non accrual has been very de Minimis.
A lot of its related to smaller acquired assets from the last couple of.
Positions, which we expect as we continue to kind of coal and work through those books.
That should start to subside as well so our expectation for credit at this point as to have continued improvement.
Okay, and then just last one from me I know, it's a really small number but just a housekeeping item the accretion in the quarter, maybe prepay income.
In terms of the what we had in the quarter, which we mentioned in the number here was about $1 million and recoveries.
And that was.
What was kind of interesting about that is over half of that was actually related to loan that was charged off player. Prior company that Weve bank that we acquired so it was appear recover wasn't anticipated in terms of marks.
So it was a recovery we realized in the quarters was about 1.1 for the quarter.
Yes, that's mentioned in the press release, you guys can understand the numbers and then we've had that relatively consistent.
Recovery, we're fairly aggressive on our charge offs.
And have had positive recoveries over time on milestones.
I would expect will continue to have some recoveries going into this year.
Okay. Thank you.
Your next question is from the line of Gary Tenner with D.A. Davidson.
Thanks, Good morning.
Hey, just wanted to get some color on some operating expense line items looks like you've got some the benefit this quarter of lower rates on customer service costs is that pretty fully baked into the fourth quarter number with forward actuation sort of volume driven before when we're looking forward in terms of this that the fourth quarter number assuming rates.
Change would be consistent with what we expect in the future for the fourth quarter. It is cyclical.
We expect to see benefits in the first three quarters, we'll have a little bit higher volume, but a lot lower costs compared to the first three quarters of 2019. So we're expecting decreases in total overall customer service costs between five and 10% probably mostly in the first three quarters.
Okay great.
And to clarify the FDIC rebate that was a third quarter event in fourth quarter was a normalized run rate.
We had none in the fourth quarter. Okay is there any projected for first quarter or you have utilized we were worried that we got everything and it was it was done in the third quarter. Okay. And then just one last expense item here on the personnel line.
Lower.
Despite really strong production on the living side in the quarters or just any any thoughts on kind of.
Yes.
A couple of factors is just going through and doing your and reconciliations of our accruals and making sure that were in line with what we kind of resulted we had.
Interesting being as larger companies, we have we have little higher levels of turnover. So anticipated processes in terms of bonuses and everything that we kind of forecast in the year when people leave and we replaced the levels of those dollars kind of benefited us in the fourth quarter.
I also want to remind you that the impact we have in the first quarter.
Our seasonality for example of last year between them.
Payroll taxes for one k. match and raises the difference between the fourth quarter of 2018 in the first quarter 2019 was $2 million. So we're going to have a similar type of increase.
For payroll taxes timing and for one k. maps and raises.
Increase in customer service costs besides other items.
Gary This goes all the way back to 2015, when we raised capital.
And that was we were going to have a heavy buildup of an employee base based on compliance and.
Everything systems that we needed in place and we and we did all that and.
I know a lot of people were concerned that when does that stopped.
I think last year was a pretty good example that were to a point, where we really don't need a lot more infrastructure.
Even as we continue to grow we think that will be minimal in terms of employee growth in I think to Scott's point, when we talk about scale and efficiency the quit the infrastructure in place including.
Our infrastructure to grow well past 10 billion.
Good support our platform.
It's similar institutions are running.
Over $50 billion so.
All of the frontline Ellis expenses over the last four or five years, we're starting to see those benefits, but on the employee side.
We don't necessarily need to add employees to grow over the next into incremental which hopefully will drive better efficiency. Yes, we expect the trend the positive trends in efficiency ratio is to continue.
Great appreciate the color there and then just in terms of time deposit repricing.
Over the first half of your who give us a sense of your dollars that repricing and the.
Rates on the maturing fund budgets.
On the time deposits.
In terms of the impact of that.
We probably are expecting maybe.
10 to 20 basis point decrease in our average costs because we've replaced a lot. We don't have a heavy load of Cds that are longer term.
So we'll see some decrease in those costs.
You know primarily on the Cds.
The money market and the savings accounts those type of rates are probably.
Market now because we adjust them.
Thank you.
As a reminder, if he would like to ask your question. Please press Star then the number one on your telephone Keypad does star. One. Your next question comes from the line of Conor Mcconnell with this Laura.
Morning.
Good morning.
Good.
Great. Thanks again.
Great.
Alright quickly follow up on the net interest margin outlook.
I guess I'm.
I'm trying to figure out kind of the puts and takes around the stable margin given the liquidity deployment and some of the.
Decline in the CD costs and why maybe there is not a slight upward bias to the margin. Thanks.
I think you'll probably see some slight upper.
Movement in the net interest margin I mean, we had an opportunity when we did the securitization last year, we had the opportunity to sell about 300 million of.
15 year mortgage backed securities it was yielding to await.
And we moved those into our own product that was yielding closer to 250.
And as I had mentioned earlier, we kind of stabilized the home loan bank advance against that to kind of lock in that type of return.
The reason why we did that and you won't see us increase the security balances anymore.
The anticipation is that through prepayments, you'll see those balances go down.
The fact is we would normally probably keep our on balance sheet liquidity and may be definitely lower levels may be 15 percentage, but the reality is.
These are great yielding assets with a lower duration than the 15 year mortgage backs.
And we took advantage of that.
So I think as those continue to prepay, obviously, you'll see the margin and then like John said and some of the deposits that we had were mid quarter last year and so you'll start to see and we're looking that average balances. So I think as you look to the first quarter and and full second quarter.
We'll see some slight reduction in the cost of funds the cost of funds as a positive impact on one of the things is that the originations of our loan the weighted average interest rate is below what our portfolio is so there'll be a little pressure on the loan side also thats kind of why we're expecting to be stable or slightly up.
Our kind of expectations for next year.
Just to have an increase in our net interest margin from where we ended.
Our aspirationally.
Kind of guidance would be close to 3%.
Some of that is dependent on where the yield curve is a bit.
Is flat to.
Hi, good of.
Could have some impact on that but we've always kind of guided that kind of to 85 to 295 is the range within this kind of interest rate environment. We think are going to be at the higher end of that range, maybe get close to 3%.
Okay, perfect I guess I guess.
And thinking about the 3% I mean, what would be the drivers to to push towards the upper end, maybe I need to think about.
Thank you know if interest rates stayed relatively stable deposit costs.
Our continuing to decline yeah, you're going to see runoff in the securities portfolio words are obviously, the the lesser yielding of of all of our earning assets.
So I think just those things alone if everything else data status quo.
That's where you're going to see some of the movement upwards towards three.
So depending on where loan yields are slightly lower.
We could securitized some of our lower yielding loans at similar gains and be able to affect it that way as well. So we've got a very flexible balance sheet and that's the one thing that we've always kind of prided ourselves we can maneuver relatively quickly.
In order to reposition ourself year over year, and I think we've done that over the last few years.
Setting ourselves up for the interest rate environment that were end, but.
If we get it 50 basis points steepening of the yield curve.
Then we'll learn a lot more NRG level.
A lot wider but we're not planning on that at this point.
Got it Thats very helpful. I appreciate it and one Marcelo mine to just.
Yes.
The expenses I think you gave a pretty good color on where the first quarter. It looks like it's going to shake out if I look at.
First quarter kind of a year over year basis, it's kind of implying about.
Hello single digit growth.
Year over year is is that sort of a reasonable level to think about expenses going in to 2020.
And maybe if you can talk about.
The efficiency ratio on where you think that might shakeout.
I think from the perspective that you your.
So we expect the growth in the balance sheet as we mentioned earlier to be in the 10 plus range. We expect our cost did not increase as much as that to help us and improve our efficiency ratios.
Being at 61% for the year.
As we go through the for the full year, we expect to be closer to have a five in the front digit for that.
Beyond the 50, so high Fiftys.
In 2020 because of that leverage that we get from this size that we are and remember the asset manager does not have a great efficiency ratio per se. So at the bank it will be much more efficient at the banks. It's early in the business yeah.
Okay perfect I appreciate the time.
Great. Thank you.
Your next question is a follow up from Steve Moss with B. Riley FBR.
Just two more follow ups for me I don't think Cecil's brought up I was just kind of wondering what the expected impact.
I wanted to answer that asset.
Eric.
Expectations are that way in the first quarter, we will have a additional charge somewhere between one and $3 million, we're continuing to refine that as we go through the analysis.
From the 12 31 balances so the ranges $1 million to $3 million.
Right now pardon Tiger by the time, we file decay.
Okay, and then I guess, there's going to be.
Good day to impact given the formulaic nature, probably would have to have some higher level of provisions, probably it's probably not going to be that much significantly because we're we're pretty close I mean, if you look at $1 million and 20, it's a 5% difference, it's really not going to impact our average we had a pretty high level.
In relation to our actual losses under the old modeling.
So the impact to see so is not we don't expect to be significant obviously, the expectation would be whatever we end up with seasonal as a percentage of the portfolio is probably going to be pretty consistent going forward.
Barring any unforeseen changes in economic scenarios, but that's kind of as we go forward, we see that and thats not much different from what we've done in the past.
Okay. That's helpful. And then just on on the expected tax rate for 2020 was little more little higher this quarter than I think I must fuel.
Yes, reconciling that for year to date in quarters and going through Thats definitely the overall rate for all of 2019 was 29.3% we expect because of some of the tax events.
Tim things, we're doing that would come down closer to 29% 29.3 in 2020, and then hopefully continue to go down as we look for other tax advantaged investments in the future, but the projection right now for 2020 is 29%.
Okay, and then I guess, just one last one here just.
Wondering.
What.
Is there any change in the M&A environment or what you guys are seen for M&A activity. These days.
So pretty quiet.
I'm very optimistic in terms of that.
Expectations will get closer together between buyer and seller, but I think right now and it's funny because I just had this conversation yesterday with someone and.
I think expectations are still pretty wide between where we're trading versus where a non public company. Thanks, They should settle.
And so.
I.
We will see I think some people are starting to show signs of fatigue and may be realigning their thoughts.
But.
It's still early so we'll see but at some point people have to I think readjust their thinking if they are willing to.
We'll be acquired yes.
It's kind of interesting Steve where.
We are approaching.
In our away and we have a high growth rate and earnings and if we take a.
A modest size institution, that's probably a 0.5 0.6.
Our away modest.
Growth.
They still want to times book.
It's pretty hard to make that accretive over time for us so.
We're kind of a victim of our own circumstance of.
Okay.
Yes victim of success of having higher growth and earnings and Anna now.
Hitting hurdle rates of returns that most of the people that our for sale on an achieving and it just makes it really tough, yes, I think and I think given this environment I mean.
The proposition for us as is.
As Dave started to allude to I mean, we made a buck 25. This year in your consensus as a Buck 44 for next year I don't know that many banks out there are experiencing the same type of growth rates that first foundation is.
But if there is a proposition to be made for another bank is that they can hook there they're pony to a wagon that's maybe got a little more steam behind it.
We've been fortunate enough to have very strong tangible book value growth. The last several years and tell people you know even though the act actual sale may not be two times book.
If were successful in doing the same growth as we've been able to experience last several years don't get there are two times number.
Right.
Well, thank you very much guys.
Thank you thanks.
This concludes our allotted time for today's question and answer session I will now turn the call back over to Mr., Kevin all for closing remarks.
So I wanted to point out we recently changed our slide deck.
And that can be reviewed to honor investor relations portion or segment of our website. So I would strongly encourage any investor that has seen kind of our old standards to me. It seems like it's a lot different and I think it would be valuable to take a look at that.
But in my closing remarks, I'll, just say as of today and given the current environment I'm very optimistic in our business plan looking forward.
Well things are obviously subject to change based on market conditions. I believe we have a strong management team and I am forever thankful for all of our employees.
Everyone on the team is working hard to create an excellent client experience and we're committed to delivering strong results for shareholders. Thank you again for participating in today's call and have a great remainder of your day.
Thank you. This concludes today's conference you may now disconnect.