Q1 2020 Earnings Call

good morning, and welcome to the county Bancorp Inc. First quarter 2020 earnings release conference call. All participants are in a listen-only mode. If you need assistance, please signal a conference specialist by pressing the star key followed by zero after today's presentation. There will be an opportunity to ask questions to ask a question, press * then 1 on your touchtone phone to withdraw your question, please press * then two. Please note this event is being recorded. I would now like to turn the call from Georgia to Tennessee Schneider president of County bank or pink, please go ahead.

Thank you.

Welcome everyone to our earnings call for the first quarter of 2020.

As a reminder, we have our disclaimer on the use of forward-looking statements on slide two of our presentation.

quarter 12020 overview moving to slide three

As a result of the Swift and decisive actions, we took in response to covid-19 pandemic there were several pushes and pulls to our financials this quarter which resulted in a net loss of 5.2 months and those included a Goodwill impairment of five million as a result of the uncertainty related to covid-19 and its potential impact on future Bank valuations the addition of a month or two million in Provisions for loan losses related to covid-19 qualitative Factor increased margin compression driven by actions taken by the Federal Reserve and response to the pandemic off and a 1.4 million dollar rate down on one or full property due to an updated appraisal value.

We were pleased to see our adverse acid coverage ratio decreased for the third consecutive quarter improving to 32.84% during the first quarter. This was due to several Dodge Jeep upgrades.

Covid-19 organizational preparedness moving to slide for I am so proud of how our team came together and continue to safely and effectively serve our clients as we spoke about last quarter of one of our key priorities for 2020 was to make investments and improvements in technology and data our team expedited several of our initiatives to improve our technology. For example, we had budgeted for the bulk purchases of laptops in twenty-twenty our head of IT. Michael Haas Tech became very concerned about news coming out of China and the potential disruption in it supply chain. So we proactively began ordering laptops in February of 2020 to ensure almost all of our employees had a laptop and could work remotely when needed

These quick decisions were crucial in the successful implementation of a pandemic Disaster Recovery plan and proud to say approximately 90% of our staff has been working remotely since mid-march a big. Thank you. Thank you Michael and his staff for helping folks transition so quickly to a remote work environment.

We also made it investments in video conferencing during 2019, which now is lost to stay connected and communicate remotely with customers.

We also formed several tests for which are meeting daily in many instances. We temporarily temporarily closed all of our lobbies and are now are serving our clients throughout drive-thrus. Well as are many digital platforms.

moving ahead the slide five

I want to thank our head of Human Resources Brook spring for her focus and attention to the well-being of our employees during this crisis. We have a strong culture of supporting our employees which we think is evidenced by the verge of programs. We have introduced to ensure we provide safety and support to our employees and their families. I also want to thank Matt Lemke our head of banking services for working to keep our Branch staff same during this time.

moving to slide six

After ensuring the safety of employees. We shifted to supporting our customers Dave Coggins our chief banking officer Serene. We'll keep our head of operations and our entire Banking and credit staff have worked tirelessly to ensure we had a seem as seamless as possible application process for the sba's PPP program for our clients. I am pleased to note that we have had a hug and applications processed $97 billion in loans funded through April 29th. Our team continues to go the extra mile to support our customers, especially in these challenging times. We continue to have ongoing conversations with our customers and are working one-on-one with many of them to work through the through an individual Financial concerns and various relief options.

As you'll see on slide seven the extra care and attention. We have provided our clients continue to resonate with them. I want to thank her head of marketing Laura Winger for the communication plan. We have used for employees and our customers.

Moving to slide eight, we take our responsibility to our communities very seriously and if focus on supporting those that have been impacted greatly by this crisis, whether it be no donations to area food pantries or support to our local farmers through the Wisconsin hunger task force.

Moving to slide 9 on March 22nd and Regulatory interagency statement on loan modifications and Reporting was released the statement provides guidance on handling payment modification request for impact of borrowers without triggering TDR classifications by allowing up to six months of payment deferrals or interest only to assist our customers at this time to date wage process 93 customer payment modification request for a hundred and twelve million.

We anticipate receiving additional request. I want to now turn it over to Dave Coggins our chief banking officer to give us an update on our agricultural portfolio, Dave.

Thanks, Tim moving to slide ten.

Twenty-twenty began with optimism over milk prices as they were high. They were at high is not seen in over five years, but conditions quickly deteriorated in mid-march in reaction to the covid-19 S3 price Futures dropped dramatically by over 30% for the nearby months as uncertainty arose with the closing of restaurants schools and exports of dairy products. The effect of those price decreases will begin to be felt in Earnest in May as there there is a one month lag between class three settled price and when the dairy operation is paid for it smelt

Looking forward to class three Futures prices. The market is not indicating that prices will return to more sustainable levels until September October of 2020 and even then those class Futures prices are below the break-even prices for many producers.

I'd like to now focus on a number of issues impacting current conditions in the future outlook for Dairy Producers, and there's a list of positive and negative issues starting with the negative the potential their number one the global supply of milk and milk products had been building before covid-19 hit this was created with some potential head rooms. And March was a record high month for us Dairy production caused by Bullet heard expansion and increased production for how strong out for 2020 was fueling that hurt expansion.

Stay-at-home orders have really hurt. She has consumption as food service is a big user of cheese.

Dairy plants have been starting to initiate caps on production leading to milk dumping in some cases.

Depending on the products being produced they can't use or sell them coming into their plants or use all of it.

And while consumption of fluid milk is spiked converting production from one product to another isn't easy and there was a even a shortage of plastic bottles to put milky milk in and that's been an issue at times.

Normally lower prices lead to more aggressive calling of the heard. However, Slaughter plant closures due to covid-19 and supply chain disruptions and that side of the home economy has made this difficult and not always economically viable.

On the plus side, there's some potential positives as well and an important one is in many producers have utilized risk management tools like Dairy Revenue protection Dairy livestock, gross margin Insurance Dairy margin coverage options and hedging to protect their margin and there have been opportunities in the past six months to lock in prices that could make twenty twentieth year in spite of covid-19 impacts on the into the industry and this is a really big deal for a lot of our Dairies.

Need prices have softened due primarily to ethanol and energy price collapses and Export disruptions. So the primary one of the primary ingredients in a dairy diet is corn corn silage things like that. It's it's impacted by some of those things going on in the on the corn side expectations are for Thursday is starting to become a more active buyer due to the opening up of their economy and their commitments to purchase more egg products in the recent Trade Agreement.

Energy prices drive a lot of costs on the expense portion of the farm income statement and this is having a positive impact on input costs as well.

Recently USDA has announced the $19 billion dollar assistance package for dairy. That should start paying out in May or June It's a combination of direct payments to Farmers for $16 billion of that 19 and 3 billion in purchase of commodities.

Yes.

PPP program has assisted many of our farm customers and the usmca has been ratified by all countries.

It was Mexico earlier and finally your recently by Canada. Unfortunately, Mexico's economy has been has really been hurt recently dead and the peso has collapsed and that's affecting their ability to buy some of our products.

And now I'd like to turn it over to John fillingim Chief credit officer for credit update on the remainder of our loan portfolio John. Thank you David. Good morning. Everyone moving to slide 11. I want to highlight some of the some of our key credit metrics are adverse classified ratio decreased for the third consecutive quarter to 32.35% This wage largely due to for substandard dairy relationships, totaling 13.6 million dollars that were upgraded to watch we did have one very relationship totally two million dollars that was downgraded to substantiate repaired and it resulted in a $222,000 impairment of our watching worst-rated loans over a hundred to over two hundred seventy 1 million of those are related to our add credit am moving on to slide twelve.

As of q1 2020 there were 25 and 1/2 million dollars in construction loans outstanding ten and a half million of the total outstanding are on to multi-family residential property. Both projects are supported by well-capitalized owners and one property is 100% complete while the other is 66% complete the owners of the project at 66% complete may have injected previously over 57% of the cost of the project in the form of cash at this time. We do not anticipate issues with any other projects not being completed.

people move to slide 13

You can see that our commercial and owner-occupied Commercial Real Estate portfolio is well Diversified based on the breakdown. You see on the left hand side of the slide on the commercial side of our portfolio many businesses were forced to close given the safer at home order from the governor Wisconsin, which is causing stress on our commercial customers. The original safer at home order for Wisconsin was originally scheduled off and on April 24th, but it's since been extended to May 26th, given the impact of covert of the cobit crisis. We've taken a deep dive into our perceived high-risk Industries long, as you can see on the right-hand side of the slide, we've identified certain industries, which we consider more exposed to risk because of covid-19.

We have 11 customers who either fully or partially occupy retail shopping properties that they own these loans have a weighted average loan-to-value at 66.38% in a weighted average credit rating of three point eight nine.

We've

Also, we also have approximately twelve million dollars in limited-service restaurants. Most of which are Culver's restaurants that have been structured using the SBA 504 program. And as you can see the breakdown on loan-to-value in credit rating on the side of the slide, if we move the slide fourteen, you'll see a breakdown of investor commercial real estate by industry wage as well as those Industries. We have identified as higher risk, as you can see, we do have some exposure The Big Box retailers, which we classify as those with over twenty five thousand square feet as well as some strip malls hotels and assisted living and nursing homes. However, it's important to note that we have comfortable levels of loan-to-value and credit ratings on these credits at this time. I'd like to turn it over to Glen

Thanks, John moving on to slide 15, you'll see that we have updated our Capital stress testing done by Invictus. We did that. It says of twelve Thirty One nineteen, we made improvements to the strep this year as we were able to provide Invictus with one level collateral data for loan relationships greater than $1000000 based on the severe adverse case scenario. We have a 83.2 million a month capital.

Using an eight point six to one leverage and 11.5% total risk-based Capital guideline the stress test assumes and and the and the excess Capital seems don't growth in dividends cause we just wrap this up. So we will be continue to evaluate this in the stress centers as covid-19 as that progresses.

Let me just slide sixteen based on our current capital levels and credit quality metrics. We plan to continue with our common stock repurchase plan that we announced in January of this year, but will conservatively focus on a daily limits. We were able to purchase which is approximately 2000 shares per day.

You purchased $256 shares that weighted average price of $22.84. And the first quarter leaving us with four hundred seventeen thousand shares left under authorization as of June the first quarter.

We currently have no plans for a change in our dividend per share payout. We have no plans for a common Equity ways based on our strong Capital levels, but you'll see an update to our Shelf registration which is which is expiring soon.

We will look at that type raises the backstop our address classified Ratio or for offense of capital purposes, whether it be BuyBacks or Acquisitions down the road as always managing the board will I will just our Capital planes as we know more about the credit impacts of covid-19.

During the slide 17 you'll see the break out of however allowance for loan losses is made up as of the end of the first quarter as well as the changes from the prior quarter. It's ten minutes and we had a two million dollars in qualitative Reserve covid-19 during the first quarter of 2020.

We do anticipate additional Provisions too long losses to the remainder of twenty-twenty as we evaluate the impact of covid-19 that our own portfolio.

Turning to slide eighteen. We did have some pay Downs of loans during the first quarter. So our loan growth was lower-than-expected. We do expect on balance sheet growth too slow for the remainder of 20080 then two twenty-one.

You know what? I mean focus on finding any on balance sheet loan growth with customer deposits. We do anticipate growth of loans sold in service for the remainder of 20 20, but we will believe that there'll be lower than anticipated as well.

You didn't have decreases in customer deposits during the first quarter of 2020 due to seasonality.

Some of the last quarter we started to lengthen wholesale funding to mitigate our liquidity risk and take advantage of of the lower overall interest rate environment.

And you are you can see we do have quite a bit of quality time deposits and wholesale funding maturities during 2020.

Turn the slide nineteen is 10:02 earlier. We have started to experience depression in our margin as long as our price lower and quicker than our funding side. We are slightly acid sensitive as you'll know with our rate shots that show here on the slide has a 12:30 119.

I would expect a lower double-digit reduction and that interesting come dollars to the FED actions that took place during the first quarter. We continue to put floors on loaner those and off so that will help someone with with the compression going forward. We were able to offset some of our margin compression during the first quarter 2020 with our shift from cash to Investments.

During the slides One loan sold in service decrease 4.2 million during the quarter but was offset by a 2 basis-point approving of Loan Servicing spread our loan Soulja nations were lower-than-expected during the quarter but our Loan Servicing rights origination income was higher than we expected do these increase and servicing spread as well as a shift of fair value accounting during the quarter off.

We should see some increase in loan fee income due to the hundred four million and expected PPP originations during the second and third quarter of this year. We plan to fund those loans in the p p program with the Federal Reserve p p p l p program at thirty five basis points.

Turn this light twenty one is Tim mentioned earlier. We were without five million dollars in Goodwill related to our 2016 acquisition due to the overall impacts of covid-19 the uncertainties of our faith earnings projections as well as Bank value of the bank is being down across the board. We also had a one point four million dollar Oreo right down from an updated appraisal on a vacant shopping or property.

salaries and benefits and

Increase this quarter due to an increase in had calendar and a quarter.

Well, we move forward with our with a few of our plans technology Investments for this year. We've decided to postpone a few projects. We talked about during our last earnings call such as our investment in our system as a result. We expect some leveling of expenses for the remainder of twenty $20, including a reduction in incentive compensation expense for the meter 2020.

Just to mention we're extremely proud of our team's ability to react quickly to the server change environment while continuing to serve the needs of our customers and communities that marks the end of our prepared remarks. So at this time, I'd like to open a store questions.

We will now begin the question-and-answer session to ask a question. You can press * then 1 on your touchtone phone. If you are using speakerphone, we ask that you pick up your handset before pressing the keys to withdraw your question. You can press * then two.

Our first question will come from Brandon with Piper Chandler.

Hey, good morning, guys. How are you? Good Brandon. How are you? Good. Thanks. Just want to start off here on kind of the state of the dairy environment compared to you know, where it was in late 2018 and 2019. Just curious, you know, whether you guys feel about the same as you did back then about the Outlook or perhaps marginally were skimmed milk prices are um, and then also just want to make sure I understand that the risk creating improvements. We saw this quarter did not contemplate from what milk prices did in April correct correct wage, and I'll I'll start and respond to your your first question and that may have David Goggins such I'm in but you know, we've we've begun to move through the review process from 2019 for general information for our dairy farms. And I think as we stated, you know earlier calls we did see stronger milk pricing the last quarter of 2019 and into early birth.

1020 and our review process is again based on 2019 information heavily weighted on a 3 year debt service coverage average. We are looking at projections as the evolution to looking at milk hedging and other insurance products that they might be able to use to to you know lack in some pricing, you know at this point. It's really hard to predict where things are headed how much impact the USDA payments that the customers will receive will benefit them and help them bridge this Gap. So it's really difficult to tell you know, how the home portfolio will continue to perform moving forward. But as we've said in the past the vast majority of our relationships do have FSA guarantees in place and that is a helpful risk mitigant for us or from a lost perspective.

You know day of anything else you want to add?

No, just a couple of things. First of all keep in mind that in the ad world. The debt service coverage metrics wage are three year average and so as we go on into the future the the liquidity concerns that individual Farmers have that we might have to help them up or doing some interest only that's covered related things like that. But the the Outlook as we look at the Futures off while there's likely to be a 2020 challenge there as thing hopefully come back then you know that we look out for on the on the Futures Market which at this time is really hard to predict. But right now we're looking at what kind of liquidity do they have to

Weather this storm and one of the things the tools that we can provide that that will help them with that and then as Tim indicated the really important Difference Maker for a lot of these Farmers how well they took advantage of some of the pricing opportunities that they had in some of the tools that are available to them. So that that's going to be a big difference maker for a lot of these funds.

Got it. Thanks that's helpful color. And then one more from me. Just curious how Wisconsin Farmland values are holding up. I guess based on data from the Chicago fed. It looks like they're flat to down 2% or to you over a year, you know as of year-end, but I'm just curious what you guys are seeing in real time.

I think we've seen that same impact we've had a couple of you know for our options here recently in farm auctions that I think would support that it's either flat or down slightly so I seen you know really complete impact of this whole Kobe situation relative to land values and uncertain as to how that's going to impact plan values moving forward at this point

great thank you for taking my question

our next question comes from Terry McEvoy with Stephen

Good morning, guys weren't Terry Glenn maybe a question for you? You'd mentioned a double-digit decline in net interest income in the second quarter month. I'm just wondering is that off the first quarter of 2020 and within that Outlook and you just talk about the deposit repricing assumptions and opportunities you see and and ultimately wage. Um any sense for a net interest margin forecast?

Yeah, Terry when I said double-digit reduction, it's really based off of the where our balance sheet was in in the rate shocks that we do as of 12 3119.

so

So the double-digit is really based on the dollars. Not necessarily the the margin in the second corner, so

You know for looking at you know, just based on kind of the overall dollars. It looks like it's down about four million dollars just roughly based on you know, the the cuts that did happen in the first or the first quarter so long.

In any any comments on the deposit pricing you were successful in lowering them last quarter. Do you continue to see opportunities both CDs and and non time deposits?

Yeah, we've you know, we try to be as aggressive as we can be unfortunately do have some less disciplined competitors in the market, but we've you know, we try to cut as far as far as we can. I mean the good news is we're starting to see some thoughts opportunities from the PPP program. Honestly that we think are going to have some nice benefits, you know, less Reliance on time deposits maybe more Reliance on again transaction accounts, which is really what we've been driving for Thursday.

Question for him in the press release it said recently up the updated our Capital stress testing and and then within the the the presentation for missing 12/31 data. I just want to make sure the timing around that last stress test was at the end of the year and the end of the year data or at the end of the first quarter.

Glen you want. So the so the the last the last time we did this was 9:30 of 18. So the and then we've updated the 12:30 119 data off.

Okay, and then just last question. Thanks for all the loan disclosure and data very helpful Culver's drive thru open in the state of Wisconsin during this time. Yes, they are and from what we've heard from our our franchise owners. They're they're seeing 60 to 70% of normal revenues. There's a drive-through not far from the bank here that's busy all the time. So they're actually seeing some pretty solid business relative to the environment more in and and obviously don't have some of the the overhead cost of people perspective to to manage. So I think they're going to weather this storm fairly. Well at this point

Perfect. Thank you both.

Our next question comes from Jeff since d a Davidson.

Thanks. Good morning. My name is Jeff. Just just wanted to clarify the so that's right in Glen the spread income double-digit decline that is off of 19 volt totals versus projections for 2020. Is that am I hearing that right?

Yeah, you know I would say we were projected probably around probably around forty 1 million and and then interest income for the year at the at the at the start of the year now with the with the direct in in rates, you know, that's probably down 10% So, okay and I'm talking and I'm referring and I'm returning to the bank and took another bank level then to that extent comes to that doesn't factor in the the sub on the debt expense of the whole the company. So, yep, that's helpful tanks and and it just remind us what the the percentage once at currently at your reference it in the slide, but they're being added. What is that bigger currently?

Not sure. I don't know if I'm not sure if we have that data. Unless Dave do you have a that information? I do not have that available right now. I'm sorry just follow up with that. It's being modeled into the it's being modeled into our rate shocks. So

Okay, great. And then just wanted to touch on the expense one, right? You know some moving pieces you talked about potentially postponing some projects if we get into a high eight quarterly expense run rate. Is that in the ballpark? Just trying to reorient the the model a bit about the changes. Yeah, you know, just and again, you know, I think everybody's trying to guess as to what expenses could look like we could say had some unexpected, you know, Oriole costs incurred cost and what not, but just based on what we have right. Now what we've modeled in Jeff. It's probably ranging in the kind of what I would say probably eight million to 2/8 and 1/2 million and probably an average about $8,200 a quarter.

Okay, and maybe one last one Tim just you guys referenced, you know, you're running the capital stress and you know, and you talked about the the maintenance of the page then you know, I I guess when you take a you know, a Goodwill impairment and you revisit a few things just wanted to kind of see that hardiness of that dividend, you know, maintaining the current level and and thoughts around inputs on that decision.

Well, we'll continue to evaluate it and I think we have this decision will have to be made over the next 30 to 45 days is we're anticipating the next dividend. Coming up with you know, a lot of factors to consider and we'll continue to evaluate. You know, what are the stress is in our loan portfolio and and what we're seeing from a you know, a risk standpoint with no certainty at this point, but we'll continue to have some dialogue as the continuation of that.

Okay. Thank you.

Our next question comes from fetty Strickland with big partners.

Hey, good morning guys. Hey morning Patty.

Have to say I was impressed with the numbers on the PPP loans. He does have what kind of the weighted average fee was on. Those were those mostly smaller on the smaller Ranger back? Just how should we think about that?

First first tranche and just to give you a little background their first-round we clearly committed that we were going to work with our existing customers and a few key prospects that we knew were moving business back to us. And I think we estimated in that 3 and 1/2 to 4% range was the the fee on those that round in the average loan size was was a fair amount bigger than the the ground second round. We're we're down to about I think the the final numbers I saw this morning. We had a hundred fifty-one new applications and round two and Loan size was probably about half I think on average what we saw round one not exactly sure what the fee income generation there is going to be up but you know, it should be should be fairly healthy and I was definitely up a a boost for us and as Glenn alluded to what's nice about the second round is we are helping a number of commercial customers in particular that maybe didn't get served.

either existing Banks

We're getting the opportunity to to move their business relationships, especially on a deposit side over to to our institutions. So nice opportunity there. I mean just to make sure I got that it would be above 3% for that weighted-average feed then I believe so it should be when it all shakes out. We should be above 3.

Okay. Perfect. Appreciate it. Thanks taking my question guys. Yep.

Our next question is a follow-up from Brandon knows all this type of sampler.

They just another one for meat heading into the year. I figure I called you guys were targeting 4% loan growth, you know, obviously you did some more risking of the home loan portfolio this quarter from here on out for the year is your expectation for flat balances. Um, or you are you thinking that the the loan book could continue to shrink throughout the year.

Glen

Yeah, Brandon, you know growth is going to is probably you know, pretty tough for us to predict right now. But you know, I think we'll see a slight, you know, I'm a loan growth. But again, it's going to be very difficult and and as always it's going to be governed by our client deposit growth. So we we are certainly very focused on, you know, getting things off balance sheet and getting the strong income and you know D risking the balance sheet. So it definitely won't be in the 4% range, you know might be closer than maybe the 2% range. But again, it's it's going to be difficult to judge and as as all banks wage reporting it's a little noisy right now or will be this next quarter with the PPP loans that'll potentially be remaining on the balance sheet short term. Anyway, the majority of them so a little difficult to predict moving forward, but it's going to load it to we continue to look for opportunities to lock in long-term fixed rates for our customers and utilize our participation Network on the egg site in particular which which wage

Drive, you know potentially more off-balance sheet.

Got it. I just wanted to make sure there wasn't a plan for another 10% reduction this year like there was last year. So, thank you very much.

It's a reminder. If you would like to ask a question, you can press star one. Our next question comes from Howard Hanna with capital. Good morning guys. Quick question. I think I heard you say that you're reconsidering the dividend. I just want to know if that's correct. I heard it correctly. And if so, what would drive a decision and I thought in the press release it even said you were still considering Buy Backs, which if you're reconsidering the dividend, I wonder where things stand with BuyBacks. Thank you. Yeah at this point in and maybe I misspoke I would say we're we're committed to continuing wage. But obviously with all the noise in the economy right now over the next month or 45 days when we have to make that decision with our board will you know will have to factor that in and see where our our portfolio looks and help the bank is performing but from a dividend perspective at this stage. We're still committed to continuing to pay the dividend and the stock buyback is going to load it to We Will at this page.

If we continue to do the uh, the daily average of about 2,000 shares in in BuyBacks and not any blocks.

Yes.

Okay. Thank you.

Our next question is a follow-up from Jeff Lewis with d a Davidson.

Thanks. Just a quick follow-up for Glenmoore on the housekeeping side the the loan break out in the portfolio there looks like the commercial real estate. Well commercial loans are now lumped into commercial and Commercial Real Estate just in in one category. There is there is that as cni has has shrunk that you can combine it to a total. There's what did something change on that disclosure Jeff. I'm sorry. I didn't what were you pointing to when you were referring to that? Yeah, the the loan portfolio is their break out on the commercial real estate in the release. There should be there should be in the further to deck Jeff in the deck. Okay?

But that's how you expect that to continue.

Yeah, I just I was just trying to see if there's something changed on on the formal release but will buy 31 out of it. Yeah. Yep. I just don't know if that's just closed in the press release before but we'll we'll just pull it out of the deck. Thanks. Yeah, it's on slide. Yeah slide. Thirty-One has has has some break down on the commercial portfolios.

This concludes our question-and-answer session and I would like to turn the call back over to Timothy Snyder for any closing remarks.

Appreciate all of you joining us. Obviously a noisy quarter and we'll continue to monitor things as we move forward and and provide, you know updates off obviously next quarter and again, I'm but most first and foremost. I'm very proud of our team and how we've responded to this and taking care of our clients, which is always been our number one focus and if we continue to do that, I think will continue to be successful. So thank you for joining us.

The conference has now concluded thank you for attending today's presentation. You may now disconnect.