Q3 2020 Earnings Call
Ladies and gentlemen, please continue to hold your conference call will begin momentarily.
[music].
Called is being recorded.
Today from the Bank is Rick Wayne, President and Chief Executive Officer, JP, Lapointe, Chief Financial Officer, and Pet Dignan, Executive Vice President and Chief Credit Officer.
Last night and Investor presentation was uploaded to the banks website, which we will reference in the this morning's call. The presentation can be accessed at the Investor Relations section at the North East Bank Dot com under events and presentations.
You may find it's helpful to download this investor presentation and follow along during the call.
Also this call will be available for rebroadcast on the website for future use.
The question answer session for this call will be conducted electronically following the presentation.
Please note that this presentation contains forward looking statements about north East Bank forward looking statements are based upon the current expectations of North East banks management and are subject to risk and uncertainties.
Actual results may differ materially from doses costs into forward looking statements North East Bank does not undertake any obligation to update any forward looking statements at this time I like to turn the call over to Rick Wayne. Please go ahead Sir.
Thank you very much.
Good morning, everyone.
I am replaying, the Chief Executive Officer of Northeast Bank.
And with me on the call R.J.P. Lapointe Hart Chief Financial Officer.
And pet taken in our Chief Credit Officer, and Executive Vice President.
After my comments.
JP, Pat and I will see a happy to answer your questions.
Before I start.
Let me say that our thoughts or with the individuals families and communities healthcare workers.
And first responders affected by coal that 19.
It is unimaginable the toll that pandemic, it's taking around the world.
We're doing our best to help the many affected by coal that 19.
Including donating.
95 mass to look for hospitals.
Contributing to local food pantries homeless shelters and used programs.
We are providing accommodations to borrowers.
Hey, Mike what parents.
And meeting the needs of our employees, who face many challenges while working at home.
You're participating in the Paycheck protection program, having originated 194 loans.
Total $37.2 million.
And the initial phase.
And hope to originate even more funds for a second phase or appropriated.
Friends investors another constituents of the bank.
Well I, often kindly and genuinely ask how we're doing.
We are doing well.
In order to protect their employees and customers.
We only service the classic customers and branches.
He added the 10, which have drive-thru windows.
Other than employees working in those branches.
Most all other employees are working at home.
Thanks to an exceptional I see and operations group.
We've been able to conduct this is virtually no pun intended the same as before the call that 19 crisis.
On the lending side, we're sourcing and underwriting business.
The thing and funding loans and managing our portfolio.
The deposit side, we continue to allow for opening new accounts online and continue to service the needs of our customers.
It's certainly a different environment, what our professional hard working adaptive.
Dedicated team has risen to the occasion.
On this call we would like to cover four topics.
A review of financial results for a third fiscal quarter.
Recent changes and our tier one leverage and total capital ratio limits.
Activity in the share repurchase plan.
In a deep dive into asset quality.
For the third quarter fiscal 2020.
After the close of the market yesterday, we announced quarterly net income of $1.9 million.
For 21, Centsper diluted common share.
A return on average equity of 4.6%.
Return of average assets so 0.6%.
Net interest margin of five 5.5%.
Earnings were negatively impacted by an increase provision for loan losses of 3.3 million.
For 26 per cents diluted common share.
Of which $3 million was allocated to the S. P eight portfolio.
And also a nonrecurring income tax expense.
$554000 or six cents per diluted common share.
Related to the recapture tax reserve for loan losses.
Triggered by the repurchase of common stock.
During the quarter ending March 31.
Turning to slide three.
During the third quarter, thank wide, we generated $119.7 billion of loans.
Fourth quarter and loan portfolio to a 1.034 billion.
Loans closed in the third quarter included a $113.8 million in or Elliot's shade of which 48.8 million were originated and a record a record 65 million were purchased.
The weighted average yield of the L., yes, she loans originated in the third quarter was 6.8% as of March 31.
All of which were variable.
Total return on purchase loans for the quarter was 10.5%.
Which included $2.5 million a transactional income.
Those of you who have followed our story.
Matt.
No that in connection with the merger in 2000 and.
Federal Reserve.
And the main bureau of financial institutions or M. B F I.
Impose numerous conditions.
On the approval of our merger application.
Over the years some of the conditions have some said.
In ways.
And last May.
Then a holding company for the bank was dissolved.
And the conditions with the federal reserve are no longer applicable.
I'm pleased very pleased to report that the remaining regulatory conditions have been ways.
The bank sport has reduced the tier one leverage ratio limit.
10% and 9%.
The total capital ratio limit from 13.5% at 12%.
The impact of this change is shown on slide poor where based on capital at March 31.
Well its capacity has increased by 143 million.
From 255 million.
398 million.
With this change we're now in conformity with.
The capital limit so many other banks.
And we have additional capacity to prudently and I'd say prudently grow our balance sheet.
In October 2009 scene.
Thank adopted the share repurchase plan for up to 900000 shares.
As indicated on slide five.
In the third fiscal quarter the bank repurchase.
416700 shares.
At an average price of $12, an 83 cents.
The repurchase of shares during the quarter increase tangible book value by 26% 26 cents per share.
At quarter end 483000.
300 shares under the plan remains available for repurchase.
Asset quality is always important for bank.
And understanding of it is critically important at this moment.
I will spend the rain remainder of the presentation discussing our loan portfolio.
Referencing slide six step 14.
Remaining slides in the book or are those so we typically.
Provide.
At your leisure Please review those but I believe today.
Focus on asset quality is the best use of our time.
As you will see.
I heard $980 million Elie assay portfolio, which represents 80% of our loan book.
76 million of our community banking division portfolio, which represents 7% of our loan book.
Pools have low LTV is.
Our 50 million dollar as the eight portfolio.
Represents 5% of our loan book.
Not surprisingly.
Yes, a weaker credits with higher LTV is.
Now with the additional reserve.
The substantial allowance to absorb credit losses.
Now, let us well the punch line, let's examine the information on the slides.
Slide six provides a breakout by.
Group.
Over a 1.034 billion portfolio, which consists of 2384 loans.
Of note the 908 million dollar purchased and originated Elliot she portfolio.
As weighted average lcvs ranging from 49%.
6%.
The aggregate 76 million commercial and residential consumer portfolios in our community banking.
Vision.
I have waited ltvs of 51% and 65% respectively.
The 50 million dollar SB eight portfolio.
As a weighted average of LTV of 78%.
Slide seven breaks out the $908 million L.A.S. cheap portfolio by collateral type.
Note that we have 83 million a hospitality.
The weighted average loan to value of 52%.
And 179 million a retail.
With a weighted average LTV of 52%.
You will note that was very few exceptions and very small dollars we have avoided.
Higher risk collateral such as raw land.
Land development and construction.
Big box retail shopping malls and large sale single tenant exposure.
Slide eight.
Because weighted average by definition.
As an average.
We provide bracketed weighted average LTV is.
For 908 million dollar LSG portfolio.
You will note that only 2%.
That portfolio is greater there has greater than 80% LTV.
10% between 70, and 79% LTV and 80% of Las cheap portfolio has an LTV of less than 70%.
Slide nine to examine seasoning in or 395 million purchase portfolio.
244 million.
Were 62% of our purchase portfolio was originated before 2009.
Since origination these pre 2000 and mine purchase loans.
I have paid down 42% of the original alone.
Now.
And our basis, which reflects our discount on the purchase of those loans is 52% of the original principal amount.
152 million or 38% of our purchase portfolio was originated in 2009 or later.
Since your origination these post 2009 purchase loans.
Paid down 28%.
The original loan amount.
And our basis, reflecting our discounted purchase.
66% of the original principal amount.
We frequently.
And we frequently structure originated loans.
Both direct and portfolio finance loans with interest reserves.
In the case of our portfolio finance loans.
Hundred 92 million.
Out of 230 million dollar loan book or 80% to 1%.
Have interest reserves with a weighted average duration of 6.1 months.
In the case of direct originations, we ever interest reserves on 104 million kind of 274 million.
The weighted average duration of 6.4 months.
Interest reserves on 206 $96 million.
58% of our total Elie S. C portfolio finance provides meaning originations I should say provides meaningful payment coverage over the next six months.
Well I'd 11.
Provides a collateral breakdown of our 76 million dollar community banking division portfolio.
Well without spending up an ordinance amount of time on this slide I would point out that the $33 million commercial loan book.
As a 51% weighted average healthy world.
And 39 million or 92% of the consumer book is one to four family with a very comfortable 65% weighted average LTV.
On the prior six slides.
I've discussed or 908 million dollar Elliot she portfolio.
And 76, and then the 76 million come in the banking division portfolio, demonstrating low weighted ltvs across all collateral types.
Significant.
First reserves to cover payments over the next six months.
And substantial.
Season in the case of our purchase loan book.
Slide 12 summarizes our instant game loan book.
You will note that healthy these are higher concentrations and Paul hospitality of 26.7 million.
Oh were 40, 54% of the total book.
And retail of 7.9 million.
It was 16%.
Of the Oh well.
Oh, higher ltvs and weaker sponsors a hallmark of Sps SB eight lending.
It is these type of loan that can suffer and the downturn.
And it is for this reason we substantially increase there.
Reserves relating to our Espeed portfolio.
I would point out as many of you know.
Under the care Act.
Ah, Yes, P.A. is going to provide.
Payments on the on the yes, the eight portfolio.
Or is that its current which in our case is around little bit less than 40 million.
Over the next six months, so that that portfolio performed well for the next six months and then of course.
If appropriate and due to the Kogas 19, we could also provide a three month permanent so no. We have a fair amount of time, let's see all of them or what happened but that portfolio.
Without any particular knowledge, but understanding it at higher Ltvs and sponsors there were not as strong as in other parts of our portfolio.
We thought it was appropriate at this time to substantially increase our reserves and with that.
I will turn to slide 13.
Which is a breakdown of our allowance on March 13.
I would want to remind you and I believe most of you know this that.
Tony will not permit and allocation of the general reserve purchase loans.
The only reserve on purchase loans are those that are impaired and specifically identified and so I think its most hopefully helpful. When analyzing our reserve the looked at our originated loans.
Have a balance of 600.
$37 million I.
And at the end of March eight point.
277 million dollar loans.
Well the reserve.
8.277 million.
As a substantial increase over the 5 million 182 reserve, which is what we had.
The last day of our fiscal year.
Prior fiscal year June Thirtyth 2019, I would highlight two things one that the reserve on our Unguaranteed portion of our estimated loan is now 10.6%.
And just a simple illustration if.
Hello.
The important and how much coverage I should say more accurately that deserve provides to our SPL SP Aon, if we originated and SBH along with an 80% LTV using really simple math, we would have alone of $80.
On.
Well lateral with 100.
And that collateral last half of its value.
And was worth $100 that origination.
And is now worth $50, which I might add some intentionally overstating things to make this point that would mean that we would have alone of $80.
With collateral.
$50, so there'll be a $30 laws.
Then last.
We would be 25% of it has seven and a half dollars and we have 10%.
On a reserve there.
Not every loan is going to increase.
And value, probably one will decrease that amount.
There will be some decrease of mounts the will be determined over time, but we believe that 10% deserve.
As a substantial and then I would.
Finally as.
That.
The overall, probably gone originated loans on this of course include the as we age.
And excluding the purchase has gone from 80 basis points.
130 basis.
Points.
Now just on slide 14, some final observations investors ask us about how the.
What's going on.
Post quarter end.
And of course were.
Well, we on the 20 Thursday the month, so we don't have perfect information.
We will tell you what we do know.
Well I'm now on flight support and I had mentioned the $296 million.
Our earliest she has an interest reserve.
I also mentioned.
I said 38, it's actually 34 million.
The SB eight portfolio will be paid by the Sta over the six months.
With respect their modification requests.
On a purchase book we received 97.
$69 million out of a total purchase book of 928 million.
EUR 920, a loan for $396 million.
On our originated book we've received requests for 20.
28 loan for 64 million.
Out of 220 long for 512 million.
And the community banking Division.
We received requests. So this is now for both commercial residential and consumer of 84 loans for 10 million and out of 1100 loans for 76 million.
When we have but youre.
We're barents agreements or.
Generally two flavors.
You about borrowers the option.
For a complete forbearance for.
Three months or interest only for six months.
We do follow the.
Guidance from the.
Regulators and fast the.
That they're not treated as they won't be treated as he's yours, if it didn't solely because of the coal that 19.
Crisis, when we report those in the fourth quarter.
And we will accrual income on those we will of course provide.
Complete transparency on all of that.
With respect to delinquencies so far as they say we're in the third week of April but that make these general observations.
Delinquencies are slightly elevated on our purchase book slightly they're on track.
She originated.
Portfolio I'd say on track I'd say, using where they are compared to a typical 30 day month.
And similarly on track for our.
And then the banking division.
That's an awful lot of information we provided this morning on asset quality.
We thought it would be much better and meaningful presentation.
Focus on kind of four big things rather than.
I'll go through line by line on our financial reports of course, there's a lot of information.
In our press release, there will be a lot more information in there too.
And we are available now and you have calls later.
Think of issues later feel free to call.
And with that I will open the floor.
Questions. Thank you very much.
Thank you Sir.
If you'd like to ask a question. Please do so by pressing star key followed by the digits one on your touched on telephone.
If you are using a speaker phone to ask a question. Please make sure you knew if your mute function is turned off to allow your signal to reach our equipment.
We will proceed in order that you signal loss will take as many questions as time permits.
Once again, please press star one on your touched on telephone to ask a question.
I sure first question comes from Alex Twerdahl from Piper Sandler. Please go ahead.
Hey, good morning, guys.
Good morning.
Your first off Rick really appreciate all of this is this detail on Ltvs and credit.
For portfolios. The LTV is all seen we'd look great, but certainly depend on the values. The collateral are there any of these segments, where the collateral values have either declined recently.
Or overtime or may not be fully reflected in the LTV is there we're seeing on these slides.
Let me. Thank you Alex that's a good question and I.
I wanted to make sure everyone's clear on the methodology that we use.
We we wanted to for purposes of this the using the values, where there were appraised values. So.
I hear divide them into two groups.
The purchase loans.
The way, we calculated the LTV label reported in this slide LTV.
We looked at the original valuation.
At the time alone was made which as I indicated in the seasoning kind of a station was quite a long time ago.
And then.
We look at what our basis was.
As has been a lot of pay down and we bought them at a discount relative to that value.
And we have said that methodology.
Looking at the values that we came up with.
When we determine the value when we purchased the loan because you know as most of you know when we buy loans.
We're not.
Looking at what the value listen the file.
We're making your own determination. So we're very comfortable that's a good value with respect to all of the other.
And so that's about 400 million of our loan book with the remaining 634 million.
It's all well, let me break it actually looks to be more precise for the remainder of the.
Finally, as she portfolio, which is another half a billion.
Those are very recent values, because that's a portfolio that we have assembled very recently.
With a case of the.
Of the community banking portfolio, you know we looked at those values at this time the loans were made so they're a little bit over but maybe you know when we know this from.
Well first of all living in now living but working in the state and analysis. We've done over time made values never spike up or spike down pretty steady.
And finally, the Sta values. So that's a book there was assembled recently.
And.
We use those value. So I think it's possible when look at and say, we say were 53% LTV on or.
LSG book, one can look at and say, yes, but maybe the values have done down some amount since then.
But the point, we're really trying to make as we have such enormous question there.
That they're going to go down probably are certainly in the short and medium time.
But they're not going down 47%.
That's very helpful. Rick.
And then you know kind of maybe a little bit related I made a big portion of the LSG purchase business is resolving these loans and creating transactional income which has been.
Relatively consistent over the last couple of years do you anticipate any change and the timing or ability to recognize some of that transactional income and resolve these loans in the near term.
It's a little bit a hard to predict because by its nature. Its transactional and you know we have some are we at big discounts where borrowers are asking for.
Pay downs, but they don't always or pay loss, but they don't always wind up closing I think the best way I could comment on that.
Is that we should think about.
This over the next nine months rather than the next quarter.
In two regards one.
I think.
Hard to say, what's going to happen over the next two months on pay Downs is people are so busy.
With that Cobot 19 crisis.
That refinancing that selling property, which generates transactional income in the kind of typical life events and that the highest thing on People's.
To do list.
So I would not be surprised if that number was lower.
In the following quarter.
Although I really couldn't predict how much.
And the reason I say nine months, because I think over nine months those things, we'll just have to they will sort out.
And the other comment I would make now.
I'm going to make a forward looking statements. So I'm going to remind everybody. We have a forward looking disclaimer in air.
But.
Not that we anybody of course, absolutely, 100% not whatever wish.
Tragedy, that's going on to have occurred.
But it is and I think there what we're going to see.
And we are you know we are built for this.
There are opportunities to buy loans at better prices.
There's going to be more supply we believe.
We believe there's going to be less buyers.
Then there has been the ones that were buying distressed debt for the longest time and more recently without this stress that had been encroaching you know in our world are going to be back the buying distressed that.
There's going to be less buyers.
Whether to do this as you know there's very few banks do what we do.
And on the origination side.
Theres going to be.
No less liquidity and less banks will.
Len and lead the ever mindful I'm not being the victim of a falling knife.
And really tightening our credit box so.
Even more so than are already tight credit box thinking and a lot of opportunities, but I think we should we thinking about nine months I don't think we should be thinking about you know the next quarter.
Okay. That's helpful. And then just to that point you know, maybe it's going to be a nine month thing and not it next quarter thing but.
In terms of your ability to actually transact in the market can you talk a little bit about whether or not there is any lapses and and your ability to ski concerning that the bulk of your workforces working remotely.
No.
No. It's it's we're doing this better than I ever could have hoped and I mentioned in my scripted comments about our great IP group and integrate operations group I guess.
Well give the same accolades to everybody in the bank everybody's working really hard we've never been busy or.
So we've never been busier than that I agree that I recall and with.
Technology that is readily available even to smaller companies like ours.
Getting into your VPN, having team meetings using so.
We have encino to manage our commercial.
It's a platform to managing or core commercial portfolio. We can keep track of things we have all of the internal controls.
In place.
To do this we are as we sit here, we're sort of sourcing business, we're underwriting business.
We're closing deals where funding deals for managing our portfolio in fact.
We did 65 million purchase loans in the quarter ending March 30, 20 million of that about what was done what people were working at home.
And just as a touchy feely more there's been a whole team is.
We will always worth well together I think.
Well really great culture, even better now people are trying to help each other out.
People are talking continually on bloom people understand that everyone is important and what we're doing and everyone stepping up.
And so I don't really thing there's only one thing I would say, there's probably two practical things one people can't get on planes.
Well look at.
Purchased I look at collateral as we did before.
No we have.
No folks into New York area that will work full time for us that can what kind of in the mid Atlantic safely.
And we have to third parties that.
And look at collateral around the country for us, but you know any kind of collateral that you know patent in the pad in the school.
Tell you it has sleep for multifamily property is worth in a particular market or certain kinds of collateral, but if we have collateral it's tricky.
We're passing on that for the time frame. So I would say in that regard it's different.
But other than that.
We're working really well and as well as we did before.
That's great to hear and then with respect to the purchase market you talked a little bit about the supply increasing the demand potentially decreasing how does that change your internal thought process around the pricing some of these loans.
Well, we want to.
Couple of things to figure out one we're going to we want to where we're going to where we're going to get higher yields because.
There's.
There will be more supply and.
And less buyers.
No I can say anecdotally I don't want to put numbers as described in any way, but we've recently.
To a low oh pool that we bid on.
And there were four vendors.
We came in port.
Which we thought was unfortunate at the time as it turned out.
The buyer wants to.
Needs to resell.
At a number that significantly less than our than our bid was a month ago.
And so we expect you know we're going to see lower pricing.
How much how much lower we will report in a wholly reconvene in July, but I think whereas.
Great to have just to put in context, you know after the financial crisis.
The FDIC was selling performing loan for 60 cents.
And recently buying loans like that for 94 cents.
I expect that number is going to be declining.
Lets saying, it's going to be 60 cents, but nothing that at all but I think that it's going to be less.
Right and then just you know you guys did a lot of buybacks this quarter, which is fantastic to see especially given the stock valuation. What can you think about the capital position you think about this opportunity you now having really no way of telling how long or how deep the opportunities going to be for you guys. How do you stack up.
Buying back stock at 65% of tangible versus saving capital for.
For the opportunities that exist on the on the purchased or the lending side.
Well, you don't want to use stock repurchase.
I'm, sorry, if we were getting investors smart investors investors the pay attention to our stock they were urging us.
To.
You know buyback when our stock was trading above tangible book fight back at 18 buyback at night on the theory that and it's a rational one.
Well, we adopted but it's a rational one that you know the intrinsic value overstocked and their view.
Was worth more than that so even if you're paying more than tangible book.
Over time, it's going to be smart.
At that time, we only had.
As indicated in the stock repurchase slide something like $250 million of capacity to grow our balance sheet.
And we thought that.
At that level.
As much better for us to.
Use our capital to invest in our business.
When the stock went down to levels that were just unguardedly I mean, it was down to six or seven Bucks at one point it became irresistible. It was we thought the most profitable thing we could do.
What's the buyback our stock now we wouldnt.
He is all of our capital the buyback our stock because we have a business to run.
But with the relief, we got a regulatory relief, increasing our loan book now by $140 million.
We think we can do both we think weekend.
We think we can buyback our stock.
For the prices make sense.
And we can and still have enough capital.
Got to want to grow our balance sheet I'm, not saying, we're going to do this but just to.
As a map model.
You know.
Mm.
If you take a look at what your earnings are.
And you multiply EM.
Like 10.
And your mill and you take that by 80 per let me just newsreel numbers, but I'm not trying to say we're going to do this we've made money when they do better what they do worse I don't know, but let's say you've made you know.
$20 million every year.
The $20 million under a tier one test.
Today's divide that by Porno line actually.
And I don't have a calculator and friendly, but I'll call that 225 million I'm, probably off a little bit.
And if you own 80% of that.
That gives you about $170 million.
The additional loan growth.
Emerging from organic earnings.
So between the 400 million, we have ready now.
The additional amount we're going again as we earn money the paydowns that we had no we didn't we can be.
Lots of ability to originate in purchase loans.
And if the stock price stays where it is.
Buyback stock.
I I want to make one comment also which I saw on your no put I think for the broader audience at the end of.
The coop within the third quarter, while the window was open directors went in the market and bought 75000 shares.
Now that we file with.
The FDIC.
Rather than the FCC, we of course put that on our pets are website and anybody could find it on the FDIC website, but sometimes not readily available so.
Mentioning that for anybody to didn't know what.
That's fantastic two more quick questions. If I may one just as I look at the funding side of things here and maybe not quite as important as credit today, but you know the margins still important for bank.
It seems like your funding so relatively expensive at 170 basis points Casa deposits.
Versus what the market has done over the last couple of weeks. How quickly do you think that 170 can start heading back down towards 1% or even potentially lower.
JP you wanted to take that please.
Sure. Thank you Rick.
Alex agreed you know the cost of deposits was still a little higher during the quarter.
You know the cost of interest bearing deposits for the quarter was 186, which was down from one maybe in those previous quarter.
However, the ended the quarter the weighted average rate of our interest bearing deposits was a 1.2%. So obviously lower at the end than it was during the quarter.
Additionally in the first.
Five days of April we lowered the rate on our money markets both evil in community bank by.
At least 30 basis points. So that's about almost $300 million. So we'll have a 30 basis points savings on.
Also we have about $72 million of Cds that are scheduled to mature.
In our fourth fiscal quarter at a weighted average rate of 2.19%, which you know either we like the money run off if we don't need it or if we put it back on the books were sitting about a 100 basis points on that $72 million over the next quarter. So.
That's a that's great gossip coming three months.
That's very helpful. And then final question for me the income tax expense that you guys. The one the nonrecurring item this quarter related to I think related to the stock buyback is that something that we're going to see every time, you guy that guys buy back stock or is that some sort of a.
You know something that's that's kind of a onetime thing.
For me around out we're not going to see it.
No, it's a one and done.
<unk> really crazy thing and before 1990 there was.
There's some tax rules that allowed.
Companies and banks.
Take more bad debt expense than they.
And they actually encouraged it's kinda like depreciation recapture so there were triggering events to having to recapture that one of which was the stock repurchase put this roundly abuse. It all up so if we were to purchase more shares in the future. We would not have that tax associated tax close.
Great. Thank you for taking all my questions.
Thank you very much Alex.
Thank you as a reminder to ask a question do we need to press star one on your telephone.
I should no further questions in the queue at this time now I'll turn the call over to Rick Wayne for closing remarks.
Thank you first the thank you Alex for Oh, those good questions My hope that the others on the call.
The answer is good there was certainly good question some I want to so just on a personal note.
Wish all of you.
Health and safety.
And and that we all.
Good through this.
Challenging challenging time.
And in good shape I want to thank many of you have.
Their email or for called asking how how we're doing.
Very very much appreciated.
I hope when we talk again and.
July.
The the world isn't much better shape.
And and when we have that conversation. So thank you very much.
We always appreciate your.
Input, we always try and improve our presentation to.
Address any.
Things are you think or.
I would be helpful.
And that we can do so.
My encourage you as you have ER.
Other thoughts on this to let us know.
And with that we will say goodbye and wish you, a nice day and and some degree of nice weekend. Thank you very much.
Ladies and gentlemen. This concludes today's conference call. Thank you for participated you may now disconnect.
[music].