Q2 2020 QCR Holdings Inc Earnings Call
Things Inc. earnings Conference call second quarter 2020 yesterday after market close a company distributed its second quarter earnings press release.
Third as anyone on the call who is not received a copy you may access on the company's website www dot QC, our age dot com.
In addition, the company has included a supplemental slide presentation with coal with 19 related disclosures that you can refer to during the call you can access the slides on the website.
With us today for management, or Larry Heli, CEO and talk get President COO and CFO.
And we'll provide a brief summary financial results and then walk in the call up to questions from analysts.
Before we begin I'd like to remind everyone that somebody information management will be providing today falls under the guidelines.
These statements as defined by the Securities Exchange Commission.
One of these guidelines any statements made during this call concerning the company's hopes beliefs expectations and predictions.
Future or forward looking statements and actual results could differ materially less projected.
Oh information on these factors. It's included in the Companys FCC filings, which are available on the company's website.
Additionally, management may refer to non-GAAP measures, which are intended to supplement but not substitute for the most directly comparable GAAP measures.
The press release available on the website contains the financial and other quantitative information to be discussed today as well as the reconciliation of GAAP to non-GAAP measures.
As a reminder, this conference is being recorded and well be available for replay through August 11, 2020, starting this afternoon.
Approximately one hour after the completion of this call.
Well also be accessible on the company's website.
At this time I will now turn the call over to Mr., let Larry yelling at QC are holding please go ahead.
Thank you operator.
Welcome Ladies and gentlemen, thank you for taking the time to join us today.
I will start the call with a brief discussion regarding our second quarter performance.
Todd will follow with additional details on our financial results.
As a cold at 19 crisis continues to impact our country and the economy.
Thoughts remain with those who have been most impacted.
As well as health care professionals in our first responders.
Our top priority remains the health of our employees and clients.
And I am proud of our entire team for stepping up in this unique environment and doing everything it takes to support each other or clients in our communities.
Despite the challenges caused by the pandemic, we delivered a strong performance in the second quarter.
Including record pre provision pre tax adjusted net income.
Driven by our strong loan growth significant fee income and careful management of non interest expenses.
Or net income and diluted EPS.
Were both up over 22% from the first quarter.
Well, our tangible book value increased by 4% on a linked quarter basis and by 14% year over year.
We achieved these exceptional results, while significantly increasing our provision for loan losses and building our reserves.
We believe that bolstering reserves is prudent at this time, given the ongoing economic conditions and the uncertainty about continued government stimulus.
As we discussed last quarter, we proactively implemented our long really program offering three month loan payment deferrals to our impact to clients, helping them preserve cash and liquidity.
The total amount of bank loan deferral requests that we received and granted during the quarter was $491 million.
Representing approximately 12% of our total launch.
To date, we have limited request for a second round of deferrals and at this time, we anticipate that less than 25% of our loan balances that participated in the first round with a program well see additional assistance.
We believe that this speaks to both the high quality of our loan portfolio and the resiliency of our local markets, which are generally experiencing unemployment rates lower than the national average and seeing pandemic impacted jobs returned at a faster pace than the rest of the country.
Additionally for lending teams were successful in funding over $350 million, a P.P.P. loans to both new and existing customers.
Well also growing our core loans by over 8% on an annualized basis.
Improved demand in both our core commercial lending business, and our especially finance group helped drive the growth.
We added a significant number of new commercial client relationships many of which were obtained as a result of our successful execution of the P.P.P. loan program.
We were very proactive in reaching out to long term targets in our communities and we're pleased that we were able to gain so many full relationship clients.
This helped fuel or outsized deposit growth during the quarter.
Additionally, we continued to attract significant deposits from our network of correspondent banks.
Or asset quality remained strong and our current credit metrics improved during the quarter.
Importantly, we reduced nonperforming assets by 21% through the sale of an Oreo property.
Well, we are not currently experiencing meaningful degradation of specific credits in our portfolio, we chose to be prudent and booked a provision for loan losses of $20 million this quarter.
In order to continue to build reserves against future potential credit issues related to call that 19.
It's difficult to predict the ultimate impacted this pandemic.
However.
Our banks are well capitalized and well positioned to help them weather the storm.
We continue to believe that our client focus combined with local decision, making is the best way to serve our markets. During these uncertain times.
In addition.
We have season credit teams at all charters that have deep experience in dealing with significant economic stress and uncertainty.
In summary.
We believe that we will emerge from these challenges as a stronger company.
Having supporting our clients with financial assistance, an exceptional service.
We are well positioned to pursue our long term goal of profitable growth and value creation, both organically and through strategic acquisition.
With that I will turn the call over to tied to provide further information about our second quarter results.
Thank you Larry as I review, our second quarter financial results I will focus on those items for some additional discussion is warranted.
I'll start with our loan growth.
That's already noted in our loan growth for the quarter was driven by organic demand from our core lending segments as well as a very strong response to the S.P.H. Paycheck protection program.
Lending teams worked diligently last quarter and we funded over 1600, P.P.P. loans totaling 358 million to both new and existing clients.
As Larry mentioned, we were successful in acquiring some highly desired new clients that we have been targeting for a long time.
And we're very pleased with those results.
Our loan and lease growth this quarter, excluding P.P.P. volumes was over 8% on an annualized basis. It was driven by improved demand from both our core commercial lending businesses.
And our specialty finance group.
The strong loan and lease growth into second quarter increased our loan growth to 5% on an annualized spaces for the first half of the year again, excluding the impact of P.P. loans.
Well this is solid organic loan growth there remains some uncertainty among our clients regarding the strength of the economic rebound across our markets.
However, given our current pipeline, we believe that we will be able to achieve organic loan growth excluding P. P. P.
Between three and 5% for the full year.
With respect to deposits, we again generated very strong deposit growth. This quarter total deposits increased by 179 million or 4.3% on a linked quarter basis with increases, particularly strong and noninterest bearing demand deposits, which were up 348 million.
Our time deposits and broker deposits declined by 215 million as we let higher cost Cds right off the balance sheet, given our strong core deposit gathering activities, which has reduced our need for wholesale funding.
Additionally, our average deposits during the quarter reflected even higher balances that we carried at quarter end.
The vast majority of our deposit growth was sourced from our correspondent banking relationships with much of the remainder from commercial clients.
Over quarter end, a significant portion of our excess correspondent bank deposits temporarily shifted off balance sheet and into the federal reserve bank you'd be a program.
Shortly after quarter end many of these deposits have returned.
For the third quarter, we expect to again be operating with levels of excess liquidity similar to what we did over the second quarter.
However, our correspondent bank team, that's working to shift some of these core deposits off balance sheet throughout the quarter, while retaining the ability to bring them back if needed to fund future loan growth.
Well this excess liquidity will continue to pressure margins. It really is an indication of our true franchise value and we feel very fortunate to have these types of core deposit relationships with clients.
We believe that this is a significant benefit and that we don't have to rely on wholesale funding to support our loan growth, which is a positive for the long term future of the company.
Now turning to earnings.
With the strong growth in our earning assets over the second quarter funded by robust growth and core deposits. Our net interest income grew 3.2 billion or 8.6% on a linked quarter basis.
However that interest margin was significantly impacted by the previously mentioned excess liquidity that we carried during the quarter.
Our deposit costs decreased significantly as we gathered a higher mix of noninterest bearing deposits and reduced our wholesale funding.
Allowing us to reduce our total cost of funds by 53 basis points.
However, partially offsetting the improved funding costs were lower average loan yields due to the sharp decline in short term interest rates.
And when combined with the significant excess liquidity that we carried during the quarter. Our reported NIM was adversely impacted by 29 basis points.
Excluding the impact of the excess liquidity, we carried throughout most of the quarter reported NIM would have increased one basis point from the first quarter.
Respectively were well positioned to continued to benefit from reductions in our cost of funds as we aggressively manage deposit rates lower and as higher cost wholesale funds and retail Cds continue to roll off and reprice.
That said, we will continue to see some downward rate pressure on asset yields and we expect to continue to carry excess levels up liquidity. Therefore, we're guiding to a static margin for the third quarter.
Now turning to our noninterest income.
Which was 28.6 million up sharply from the first quarter.
Experienced record swap fee income, which came in at 19.9 million for the quarter nearly triple the first quarter results.
We're seeing very strong swap activity with our core commercial borrowers as well as from our specialty finance group clients.
There are three primary drivers to this exceptional performance for the quarter.
First demand for our lending products remained strong, particularly in the tax credit space, where we are making high quality variable rate loans and are enabling our clients to walk in attractive long term fixed interest rates through the use of swaps.
Second the current low interest rate environment combined with the flat yield curve makes these types of transactions very compelling for our clients and third the pandemic created some disruption with our competitors at a time when we're able to remain response it quite needs.
The pipeline of loans that are banks that are specialty finance group remains healthy at our expectations for swap fees also remained strong, but we don't anticipate achieving the same level of swap fees that we did in the second quarter. We do expect to see income sources will be approximately 30 to 32 million for the second half of the year.
Now turning to our expenses.
After adjusting for an additional 2.8 million of salary and benefits related to increased bonus and commission expense in the quarter driven by the strong financial results and higher than anticipated swap fee income.
Non interest expense would've been 30 point threemillion below the low end of our guidance range of 31 to 33 million, we provided on last quarters earnings call.
Looking ahead to the second half the year. We continue to anticipate that are non interest expense will be between 31 and 33 million per quarter. We remain focused on strong expense control in these uncertain times.
Despite the disruption that coping 19, that's causing our overall asset quality actually improved on a linked quarter basis.
Our nonperforming assets improved 3.6 million quarter over quarter driving the ratio of Npls to total assets down to 24 basis points at quarter end, an improvement of eight basis points from the end of the prior quarter.
Even with the improved asset quality results this quarter and while our local economies appeared to be doing better than much of the rest of the nation, we're still providing heavily for potential future losses, and therefore, we book nearly 20 million in provision for loan losses this quarter.
The majority of this significant provision was the result of increasing qualitative factors due to the covert 19 pandemic.
The level of our reserves, excluding the impact of the 358 million and P.P.P. loans.
It was 1.61% to total loans and leases up 47 basis points from the end of March.
With respect to capital we continue to maintain strong capital levels and have abundant liquidity to meet our clients' needs. During this pandemic.
Our tangible common equity tangible assets ratio would have improved to 9.03% as compared to 8.76% at the end of March if you exclude the dilutive impact of the PPP all those.
Our overall pre provision pre tax earnings power remains significant and we're well positioned to aggressively fund reserves, while still growing capital.
Our effective tax rate for the quarter came in at 16.9%.
The rate was higher on a linked quarter basis due to the higher taxable earnings and resulting lower proportion of tax exempt revenue.
I'd like to wrap up my comments by reinforcing what Larry noted earlier about our ability to manage through the economic challenges created by the covert 19 pandemic.
We are helping our clients in our communities whether this crisis and we're fortunate to have great people throughout our entire company doing what it takes each day to get the job done.
I know, we all look forward to win this crisis passes and what it does we believe we will emerge and even stronger organization well position to continue our long term growth and shareholder value creation strategies.
With that let's open up the call for your questions operator, we're ready for first question.
Certainly thank you Sir we will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad, if you're using speakerphone. Please pick up your handset will present the keys.
To withdraw your question. Please press Star then too.
Tom will pause momentarily to assemble our roster.
And the first question will come from Jeff Rulis D.A. Davidson. Please go ahead.
That's good morning Clarion taught.
Good morning, Jeff Jeff.
Appreciate the slide deck in the detailed there I think that's an interesting sort of the deferrals I think slide eight you talked about I think just over 5% sought a certain amount of deferrals I guess kind of mixing that with I think Larry your comment about.
Expecting lesson.
Some 25% <unk>.
Cubic sender see additional assistance, what what percent of.
Deferrals have.
Reached a deadline in many of you've been through the entire round of Oh, the first round or you still have some still approaching deadlines.
We would.
Well, let me just give a little background, Jeff we started right at the beginning of the last quarter to be however structure deferral program. So that means were in essence.
Three four weeks into the opportunity for people to take a second deferral.
I'd say, we're roughly 40% of the way through.
People are having their regular payments being schedule now.
And so we know that that number will go up but as we.
Had discussions with all of our credit officers yesterday to kinda talk about what we think will happen.
We basically Atlanta that we think less than 25% of the dollars and total will receive a second deferral or ask for a second deferral.
Okay. That's helpful. Thanks.
No the swap outlook of 30 to 32.
Is that pretty steady in Threeq to Fourq. You are you you think third quarter exhibit heavier and then well maybe I'll just leave it that for now.
Yeah, I'm I'll start and I'll, let Todd follow up I'd say at this point, we stay fit say fairly steady for the for third and fourth quarters.
Yeah, Jeff.
We had in the first quarter, a strong quarter at around 7 million. Obviously here in Q2 had an exceptional wanted at close to 20, so roughly 27 for the first half of the year, we think the third and fourth quarters will be a little bit more balanced and little more down the metal so maybe.
Closer to 15 age.
Got it.
And I thought I appreciate the comments on expenses and there's some variable components about site I.
We're in the in the range of 31 to 33 for the balance of the year I won't.
I want to ask about swap a guidance for 21, but I'm just trying to get a sense for the variable component and maybe just longer term expense control and how you.
Our approach that if you if you assume a more normalized.
Swap fee income level, perhaps next year.
Sure Great question, Jeff So the 31 to 33 guidance would actually have that.
That level swaps embedded in that in terms of the commission result.
So we are within guidance in that 15 million ish range. Each quarter you expect the land in that 30 133, it's really baked into those numbers.
When you look at 21.
I think we've made it quite clear that our stated goal is to hold expense Creek to no more than 5%. So if you're looking at modeling out into 21, that's really our expectation is to be 5% or less in terms of expense growth.
Okay given that.
It's a pretty considerable swap number if you even approach that I I guess if that.
I mean do you.
Pretty early to tell but.
You take I don't know if you can hazardous.
Wide range of 21, it just seems like yeah, that's such a considerable fee income component of that were to come down quite a bit than the <unk> that would impact the cost side I guess.
Maybe more specifically sorry for meandering here, they're variable component on the.
On the swap side.
Tied to comp is there any kind of formulaic number you could offer there.
Well, it's it's a little convoluted, Jeff and I understand it's hard for you to model that way, but we have always had a significant amount of our compensation be incentive based and variable and so if you were to plug in into your model something a little bit less.
And what we're likely going to do this year for swaps.
Then it's likely that a 5% growth guidance for next year would be much lesser that of course, because we'd be pulling back on incentives and commissions related to swaps.
I think.
Honestly the best thing for you to do it would be taken a look at your 20 model based on our guidance and dropping in a 5% to create an extensive that's probably the best way to model.
Okay.
Thanks.
The next question will come from Damon Delmonte with KBW. Please go ahead.
Hi, Good morning, guys I was going today.
But so far Damon.
The here.
So first question pretty a pretty sizable reserve build very aggressive in and a imprudent. During these times I can just couple of perspective as to you know based on what you're seeing you know throughout your discussions with their loan officers on how you feel about your reserve level. After this quarter's build.
So.
Question Damon.
With regard to reserve build.
It's likely that we'll continue to see elevated reserving similar to what we did this quarter for the remainder of this year.
After that we would hope to have the.
Colvin factor in our reserve build told a numbers so that we've got.
The risk.
Quantified based upon what we know today.
Okay, though.
As I did I catch up.
Go ahead.
Oh, hi, so so something similar to this level or just something in and elevated in the sense that you're going to continue to build reserves.
You know you're asking me to.
Jack forward on what we're going to see a lot of what will be to be determined by what we see in the second round of the deferrals.
When that gets wrapped up so we'll know a lot more at the end of this quarter.
But I think number is relatively similar to where we.
Well this quarter, our what we should expect maybe the next two quarters.
Got it Okay. That's helpful. Thank you and then you think you guys mentioned that you know you had new customer growth.
And it sounded like it was tied to you know the TPP relationships. So just want to understand it. So I know that you union targeted non customers you're able to accommodate them on the P.P.P. side are you, saying that that actually turned into a new.
The new relationship where they brought over other business subsequent to that PPP wrong.
That'd be correct Damon we had about 300, new commercial relationships.
Many of those are gonna be hi, <unk>, you know level deposit relationships.
There are also helpful relationships in many cases and so they had other building loans or lines of credit or those kinds of things that we funded so that helped.
Let's get to that 8% core loan funding growth.
Which probably as we indicated isn't sustainable for the rest of the year, but as we were moving those PPP new clients over we also brought over those additional loans that came with it.
Got it okay. That's helpful.
And then I guess, just lastly on tied to you made a comment on the tax rate, but I missed that could you just for people you're saying on the go forward tax rate.
Sure the tax rate was elevated.
Close to 17% here in Q2, because of the strong noninterest income and and obviously that dilute the favorable benefit of attack.
So going forward, that's likely to settle down closer to the 15 to 16 rate versus 17 in Q2.
Okay. That's all I had thank you very much in a nice quarter.
Thanks, David.
The next question will come from Nathan race with Piper Sandler. Please go ahead.
Hi, guys good morning.
Good morning.
Going back to the swap discussion earlier. This year you guys are suggesting this business can be anywhere between 20 to 25 annually in terms of the revenue contribution, which I think it's kind of what you guys suggested for 2021. So obviously you guys are tracking well both this year. So just curious what changes you guys are what up to you guys are seen with them.
I'd say no in the past that you guys and spoken to tax credit man.
Good.
Good sized component to this segment. So just curious if some thoughts along those lines going forward.
<unk>.
Right I mean now need we.
Kind of outlined in our comments, there's really the the marketplace is really receptive to what we've been doing both on the commercial and in the specialty Finance group.
The interest rate environment has been ideal for doing these kinds of transaction. So that's helped us.
And then there's been some disruption in some of our competitors with their ability to respond because of other people working from home and we've been able to work around that very quickly.
So it's certainly it was a unique environment to get swap income at these relative levels.
So we have not giving guidance for next year, yet, but you know as we indicated we would expect to run at elevated levels compared to our history for the next two quarters for sure.
And then the next couple of quarters, we'll give some thoughts about what we're gonna do in 2021.
Okay, Great appreciate that and then just going back to the reserve discussion, obviously nonperformers came down nicely in the quarter I'm. Just curious what you guys saw from a criticized classified migration I imagine it was relatively benign just given what you guys are see in terms of loan modifications you know coming in.
Or at least not expected to be more than 25% of the first round. So just curious if some thoughts along those lines as we kind of thing about the reserve level going forward as well.
Right.
Migration was also pretty benign.
We did migrate a fair amount of our hotel loans to criticize not classified just because we're watching that that sector, particularly closely.
But certainly many of them or a long ways away from turn it into nonperforming assets yet.
The.
Change in substandard assets was negligible almost no movement during the quarter.
<unk>.
Okay, Great and then just on the hotel book.
Have you guys tend to see what more recent occupancy rates have trended up to you know over the course of the second quarter.
Measurements improved, but just curious kind of where those stand versus kind of historical levels within the past year or two.
Right you know come off the bottom in the last 90 days, you know where rates three months ago were 5% to 10% of occupancy now, it's probably 35% to 45%.
And because some of the.
You know consumer travels coming back.
I think we can climbed a 50% nature. So in this environment.
But until business travel comes back it's going to be difficult to get far beyond that number.
And so you know most of these hotels need to start approaching 50% to be able to cover their costs and to provide debt service.
Okay got it I appreciate that color and then just lastly on capital I don't believe there any buybacks in the quarter, but just any thoughts on just tapping that going forward and just any updated thoughts on capital.
<unk> priorities at this point.
Sure Nate.
We did build capital.
Roughly a 27 basis points of TC through earnings of close to 14 million. As you know we have very modest dividend amount, that's only going to cost us about two basis points on T.C.
Each quarter, so our expectation is to continue to build.
TCV and total risk based capital through earnings, even while making some outsized provision so feel very good about that.
AOCI I actually increased the bed that added eight basis point.
The T C.
Real dilution and reported TC of course was the from the PPP leveled so.
PPP loans taken those out of the equation, we're back over 90%.
Okay I appreciate guys.
Two quick questions like congrats on a great quarter.
Okay.
Once again, if you would like to ask a question. Please press Star then.
The next question will come from Evan while with Janney Montgomery Scott. Please go ahead.
Hey, guys. Yeah. This seven I'm on for Brian Martin and nice quarter.
Thanks, Kevin.
I just couple quick questions I'm, just looking back to the deferral from you know you guys gave some great color in the slides and then on this call, but just looking at the second round referrals are just curious who might be looking at that you know just kind of for that second round of or a deferral requests.
Right as we indicated earlier were just kind of mid way through that process right now.
It certainly appears at the hotel industry, which is probably the most challenged segment.
We will be the ones asking for the most deferrals in that space.
And then probably entertainment, it's not a big portion of our business but.
Entertainment venues those kinds of things would probably be a maybe second in that space.
Okay Awesome. Thank you and then just sticking with you know just trends with Kogut. Obviously you guys gave you know you have healthy long growth this quarter and you guys gave some a great color on that trend I'm, just curious where you're seeing your geographic footprint and just an update on the market conditions ASCO bid would be awesome.
Yeah, I'll start Todd on the let you finish we've been fortunate.
Thanks to be in midsized markets, rather than the big metropolitan areas. So I think the effects of the pandemic had been easier to manage.
And so that's been one thing and we have been at certainly much lower unemployment levels.
The last Iowa number I saw about 10 days ago was 8% instead of the national being 10 or over.
And so that's really helped us a lot.
From a performance on our loan portfolio so far.
Evan just to tag onto that we're really fortunate to have so much of our operation in the state of Iowa that of course, Missouri and little bit of Illinois in the quad cities, but just to put in perspective.
Total hospitalizations in the state of Iowa, our 241 for the entire state. So we are.
Not seeing near the.
The second wave that many of the seats in the country are seeing the.
Severity is much more muted here, it's been a large part of.
Why some of our clients are recovering more quickly and why our expectation for the second round of deferrals is fairly modest I think letter. He gave you good color on where we do expect those second round deferral requests to come from but.
Absent of hotels.
Maybe a few restaurants and some of the entertainment venues, we expected to be pretty muted.
Okay Awesome, Yeah. The house very helpful. A then just last thing for me is a you know you touched on the margin for this year I'm just saying in this current rate environment. You know if we look into 21, you know how do you see that plan how has that win.
Yeah.
Thats tough question for 21, I will tell you a little bit about what we expect next quarter, we guided to static.
And we've got some some tailwinds in the form of.
Little bit more room to go on deposit repricing I believe we'll continue to see some mix improvement as noninterest bearing and low priced interest bearing continues to grow and we continue to roll out of wholesale TD.
And we're gonna worked really hard to put some of the liquidity to work again as Larry and I have said, we're blessed to have grade.
Deposit growth and that bodes well for a long term future its pressure in margin right now.
But we expect to put a little bit more of that to work and shed a little bit of liquidity or really the only headwind of course would be loan yield.
We have a fair amount of floating rate loans.
In many of those that are swap don't have floors, but they almost effectively hinder floors. When you think about.
Loan swap to floating live war Ed.
Ah 250.
You know with LIBOR, one month, LIBOR and 18 basis points, it's nearly it before if not before so.
We're going to continue to see some.
Pressure on loan pricing certainly in some aspects we may have hit close to the floor. So.
We're looking at static here in Q3, probably this time next quarter, we'll have a little bit more thought on Q4 and as we get closer to the ended the year, we'll know a little bit more about 21, but certainly it's a very tough time for bags with the margin in this very low.
This very low rate environment, and this very flat yield curve.
Right, Yeah, well that's helpful. When a yeah. Thanks to the color and that's it for me and great quarter guys.
Thanks, Kevin.
The next question as a follow up from Jeff Rulis with D.A. Davidson. Please go ahead.
Thanks, just wanted to circle back on on Cecil and get an update on your appetite for adoption I don't know if you view this is a true.
Ended the year end to the endemic where if you feel like any closer and then.
Scott I think last quarter you mentioned.
What you thought that gap was I imagine that close quite a bit given the level of provisioning, but any thoughts on on those two fronts. Thanks, Ajit, Jeff I'm, So glad you.
Backend asked those questions, we had not talked about seasonal yet and you are right that gap narrowed.
We have a cecil a calculation that's only a little more than 4 million higher than our occurred last model. So that gap has narrowed as we expected it to and right now we're not contemplating adopting Cecil <unk>.
I think the jury's still out on what we may be required to do but right now my expectation. It is it might be 121, depending on what the FCC guidance ends up being but the the gap has narrowed.
We talked about the vast majority of this additional provisioning being very specific to Covin factors. It's one of the reasons, we like the incurred loss not old gives us much more flexibility to.
React more quickly and more a little bit more precisely so that that's where we are with respect to cease all right now.
Thanks Todd.
Thanks, John.
Ladies and gentlemen, this concludes our question and answer session I would like to turn the conference back over Larry telling for any closing remarks.
Thanks to all of you for joining us today.
Hope that everyone remains healthy and safe have a great day. Thanks, everyone.
Thank you Sir the conference has now concluded. Thank you for attending today's presentation you may now disconnect.
[music].