Q4 2020 Midwestone Financial Group Inc (IOWA) Earnings Call
Good morning, and welcome to the Midwest, One financial group's fourth quarter 2020 earnings call.
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Also of this presentation contains forward looking statements relating to the financial conditions results of operations and businesses.
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Actual results could.
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Among the important factors that could cause actual results to differ amongst all of your interest rates changes in the mix of the company's business competitive pressures and trying to economic conditions and the risk factors detailed in the company's periodic reports and registration statements filed with the SEC.
And last one financial group undertakes no obligation to publicly revise or update these forward looking statements to reflect any events or circumstances. After the state of presentation not like the part of the call over to Mr. Charlie Funk, Chief Executive Officer. Please go ahead.
Thank you very much Nick and thanks to all of you for joining the call today.
And the room, and Iowa City with me or Gary Sims, Our Chief Credit Officer, Barry Ray, Our Chief Financial Officer, our President and blend the measure and Jim Cantrell, our treasurer, and Chief investment Officer, and I'll begin with a few opening remarks first of all would say the.
We think it was certainly a good quarter for our company there were a lot of positives on our numbers. A 122 are always a little over 17% return on tangible equity, earning $1 <unk> per share.
Also and I'll talk a little bit more about this later, but certainly we think that our asset quality of stabilized and maybe even a little bit better to improving and <unk>.
Excellent quarter for noninterest income.
And we note that our commercial loan growth in the quarter was.
It's good.
In terms of the balance sheet.
And I said, we did we did show modest loan growth, we had pay downs and our residential and consumer as they've refinanced into the more of the secondary mortgage market. So the commercial loan growth was right and the 6% annualized the.
The neighborhood and we will take that on in terms of the outlook.
We think on the first quarter will be flattish.
Flattish is probably the best word we have some takeouts from the construction lines that will be occurring during the quarter.
We do continue to project a budget of 4% to 5% of loan growth core of the calendar year of 2021.
Strongest regions in terms of loan growth and the outlook for loan growth on them.
Inver continues to do well on Florida is steady to improving.
And the twin cities market has.
<unk> and recently and we're starting to have a nice pipeline there and we also think of the Iowa City market could show positive loan growth and the first quarter and for the year and.
And we also would note a better outlook in rural America, and specifically on the rural regions that the Midwest Midwest One has offices and we know we just recently hired.
A new banker and southwest, Wisconsin, and I'm worried developing a little bit of of pipeline there as well.
We do continue to see very very strong deposit inflows and we saw that during the quarter.
It's very difficult for us to predict what the deposit outlook will be in 2021, because we have a lot of moving parts on specifically on the first quarter.
We typically are.
See deposit outflows that are seasonal and then towards the end of the quarter. They build back and we've also got PPP forgiveness, which is in place and we expect some of that money at least will stay on our balance sheet for a period of time and.
And now we have another round of PPP. So it's very very hard to forecast deposit growth in terms of PPP demand after the second round.
Do have a significant demand we think the dollar volume will not be as robust as it was the first time around but we do know that there are enhanced all of the eligibility.
And there's enhanced eligibility for our AG borrowers and so we do expect to see a little bit more activity from our agricultural customers.
In terms of the income statement, we think that Ah I think that the biggest and most prominent and line and the income statement of certainly the net interest margin and net interest income.
And this last quarter, we were certainly aided by the PPP forgiveness that was a tailwind we continue to have a role of the CD portfolio of which adds a few basis points each quarter to the margin.
We would note the and.
And this was and the earnings release that we did charge of $400000 roughly of interest on one loan that was placed on non accrual that is of core item. However, we also think that's the one time item and it should be noted on this call as it was and the earnings release.
I think in terms of the outlook for the margin and.
It should bump along on this range plus or minus.
And the steeper yield curve and helps us a little bit.
However.
And it should be noted that the for a bank such as ours is the.
The zero on a five year part of the yield curve is probably the one that needs to steepen fourth the have the greatest benefit for our company.
And then again as I said earlier, the large deposit inflows that we experienced did have a negative effect on the margin and the fourth quarter.
In terms of noninterest income I think of really good story for our company and it's not just one area of the company all of our home mortgage center had a record year they generated.
Right around $466 million of volume of wood.
And we're done that.
Kind of volume before at our company and I would note that the merger with American Trust really paid off because of the Dubuque mortgage mortgage team, especially are really added to these totals.
Going forward, we do have a good mortgage pipeline for the first quarter, it's amazing that the demand continues to stay strong.
And we think there will be less of a drag from mortgage servicing rights. Although of course, that's dependent on the direction of interest rates, but that so that's what we would see at this point and time and.
And our servicing portfolio today is just under just under 900 million for our secondary market loans and about $355 million of a.
Portfolio of loans, so we're well over $1 2 billion in terms of residential real estate loans that we service.
Our investment services, which is R. L. P. L. A brokerage R. L P on brokerage.
Subsidiary had a record year.
They continue to look to expand their footprint, it's very hard to hire good people.
And our culture and the are able to produce.
We now have on a L. P L Rep and Denver, but at this point and time, we are just in Iowa for the rest of our of L. P. L reps and we would love to expand into the twin cities market of the opportunity presents itself.
Our Trust Department had a strong year they they had to deal with merger integration with the Dubuque Trust Department and that's gone very very well.
We did not think they would hit their budget, but they did in 2020 the.
And as I said on the past earnings call the court systems and Iowa.
And basically shut down so we've not been able of black probate fees, we expect.
To collect those in 2021, but despite all of that the trust Department was able to meet the budget, which we think was a significant accomplishment.
The emphasis will be on organic growth for the trust Department and 2021 and I'm happy to report that we've hired two bankers trust bankers and their established our bankers and the twin cities.
We expect the higher one more on the next 90 days and we do think that there is very very significant revenue growth potential over the next couple of years.
As we roll that out and the twin cities, they've been with us for a depending on which one we're talking about between 30 and the 90 days they've made a great impression and we've already had a number of significant customer calls.
In terms of the expenses it was a messy quarter for expenses.
Didnt renegotiate the contract with our core provider and.
And.
The way that works is.
We used a third party vendor to help us negotiate the contract we paid that vendor upfront that was reported in the quarter and now we will realize the savings over the life of the contract. We also terminated the cash flow hedge which as we look back we put this hedge on Jeff.
Before the pandemic started and just before the fed the basically cut the rates the zero. So that wasn't a we terminated the contract which was an 800000 dollar charge and then there were another there were a few other smaller one time items I do think.
Barry will be available to answer specific questions, but the noninterest expense should.
Calmed down and quarter, one and and hopefully get back to the run rate that we were experiencing before the fourth quarter.
In terms of asset quality again, and I think the story here of the generally positive.
We did have a release of reserves, we still have.
A ex PPP loan loss reserve to total loans of 172% again X P. P P.
Net charge offs of four basis points of annualized during the quarter of 15 basis points for the year, which is the best performance. We've had in a number of years feel very good about that.
The M P as were up slightly as we did disclose and the earnings release, we put one nine and a half million dollar of hotel loan on non accrual and I think that pushed our non accrual numbers up slightly however, what that did was masked a lot of clean up and resolution that took place in the.
And the legacy portfolio during the year. If you look back to 12, 31, 19 actually R. R. M. P as were actually down slightly which we feel very very good about.
We did as noted release credit loss reserves.
And I think it's fair to say the seasonal and created a bumpy ride for us and 2020, and we expect that to continue into the future as we learned to deal with the new regulation and the new guidance on this particular topic.
I think most importantly, our outlook on credit is generally positive and we continue to be continue to be mindful of our hotel portfolio.
In terms of the nine and a half million dollar alone. We think what is fully reserved for and we don't anticipate a large loss on this particular credit.
Also of note. The AG sector are very strong we would say that the farmers had their best year.
Probably since 2013, there is a good outlook for 2021 with the corn and soybean prices are as strong as they are and the other thing to note is that our rural economies benefit when crop prices are high so there's an indirect.
The fact is positive well on on most of our customers.
Who reside in rural America.
We think of.
That of the dairy industry, and we do have some dairy loans and southwest Wisconsin.
Their their outlook is not quite as positive as for corn and soybean growers, but it's positive and it's better than it's been for some period of time, So we forecast the good outlook.
For this year in terms of our AG portfolio.
In terms of capital position.
We think we're fine where we are 821 would be the.
The percentage of tangible common equity when we back P. P. P out of the equation, we did repurchase 84000 shares of our own stock during the quarter, we think and it represented that and continues to represent good value and we continue to reward our shareholders with the with an increase and the annual dividend, which we took.
We do each January.
And would remind everyone its and the earnings release, but our tangible book value increased to $26 69 per share and as of 12 31.
So in summary, before we go to the Q&A I just was thinking to myself and how would you describe but 2020 I think it was an unprecedented year I think we would all agree with that.
And as I look at our company when we tallied up the the final results and we talk about our core operating earnings which would exclude the goodwill impairment charge, we took in Q3.
38, one and we had net income of $38 $1 million and core income compared to $43 6.002 million 19, and on and earnings per share basis, $2 37 per share in 2000, and 'twenty versus $2 93, and 2019 and I would hasten.
The AD that we added about $28 million to our credit loss reserve during the year and strengthened our loan loss reserve from one seven and two from roughly <unk>, 95% of loans a year ago to $1 seven 2%.
X P. P. P. At the end of 2020, and I would add we kept our employees safe and served our customers and serving our communities very well. So overall, we like the position we sit and we look forward to 2021, and we do think we're ready for the challenges that lie ahead and with that and Mexico.
And we'll turn it back to you for and the Q&A that might be out there.
Thank you and I'll begin the question and answer session. The ask a question Press Star then one on you touched on the phone.
If youre using a speakerphone please pick up your handset before pressing the keys to the to all your question. Please press Star then two.
At this time of pause momentarily to assemble the roster.
First question is from Brendan Nosal of Piper Sandler. Please go ahead.
Hey, good morning, everybody hope you're well.
Good morning, Brad and Brendan.
And just wanted to start off here on some of the liquidity dynamics and the quarter.
And so you like many others continue to see very strong liquidity and fluids and.
But it looks like this quarter you did you deploy that into the securities lending.
And sitting in cash so just discussed and that strategy and how you're going to manage the excess funds over the course of the year.
And Brandon this is Jim I'll take that.
You're on to it I think we've.
Decided to invest in reality, the relatively short term cash flowing securities ones, where we were going to buy and that we're not going to put the long term interest rate risk of the company and jeopardy, but it's just really costly to leave that money and cash I think we had $200 million on average and excess liquidity that <unk>.
We loved it and cash would've been 10 basis points. So.
We're investing and a combination of mortgage backed securities.
High grade and municipal bonds, and I think that the strategy that we.
We finally caught up and got us got ourselves into a fed funds purchase position, albeit a small and at the end of the period, but.
Yeah, that's really been the strategy that we've employed for most of the year.
Okay. That's helpful. And then one more for me and I'll step back.
Charlie you alluded to the expense run rate being a little bit quarter of the couple of them.
Not for sales like the chart higher incentive comp and can you can you guys just help frame up what you think a reasonable one.
And of the new year.
Brendan This is Barry and I think what will anticipate for the expansion of an array of will be back into the 'twenty nine.
The $30 million per quarter and range.
We expect.
Okay.
And that's it thank you and you're taking the questions.
Yeah.
Thank you next question from Jeffery Atlas of the D. A Davidson. Please go ahead.
Thanks, and good morning.
Good morning.
Uh huh.
Charlie I loved it.
And and also maybe for Gary I just the.
The optics of of.
Reserve releases and higher NPA and understand that that's overly simplistic as the if you set of preserves and you kind of allocate towards the <unk>.
Hotel movement.
The or migrating.
I'm trying to get a sense for.
The credit tone sounds sounds more positive and and particularly on the AG side.
The question to be specific is it seems like <unk> is it fair to say, you've pivoted that oh the outlook the day that you're you're.
More positive on the AG side, and potentially non AG credits and the and portfolio.
Yeah, Hey guess, Gary here I'll I'll start to answer the question and Charlie and Ed and if I am on.
If you have something additional so really you know the quarter and what you see in the quarter is.
And a good story around resolution of our existing non performing book taking place in the quarter, but also at the same time you know that.
That migration of the vulnerable industries portfolios, specifically as we've pointed out that particular hotel kind of overshadowing the.
A lot of good work that happened in the quarter and most of that did work that happened in the quarter in terms of regulations were on agriculture credit.
But I would say generally speaking.
Arms of our pre pandemic book of non performers we've seen a very positive.
Movement towards the resolutions as credit.
And and so that's kind of what gets us in a in a position where we think we're really going into right direction in terms of.
And our management of of that kind of that pit and that you were talking about Jeff and I'll talk a little more about it.
Yeah sure well.
As Charlie said in his remarks.
Good prices and solve a lot of the challenges.
Challenges that we have and and the AG space and and we are experiencing very good practices, where we're experiencing corn prices and soybean prices that we have not seen since 2013 2014 and that makes a big difference and when you combine that with the government assistance that our farmers have experienced and.
2019 and 2020.
It's a it's a good story right now for our AG space and Eastern Iowa.
Yeah.
That's right.
Maybe just a housekeeping for for Barry just on that on the tax rate on.
Honestly.
Be a 2020, but any.
Expectations for for that going forward.
Yeah, Jeff we do expect for 2021 that the attach rate and won't be 19 of 21%.
Yes.
19% to 21.
Yes.
Okay.
I will step back thanks.
Thank you Jeff.
Thank you next question will be from Terry Mcevoy of Stephens. Please go ahead.
Hey, good morning, everyone.
Good morning, good morning.
Just wanted to circle back to the commentary on the margin.
And it kind of it sounded like bump around plus or minus but remained stable and I'm just trying to take that into consideration with the PPP fees of like $3 million and likely kind of decline over the next few quarters and then.
Also of the commentary and the press release, which kind of said indicated that it might be and there's some it was the challenging environment, which to me suggested ongoing compression. So I guess my question is ex some of the noise of accretion and PPP and the core margin compressed from here and and then there's some offsets on on some of the other variables.
We have a yeah and some of it will also depend on the mix and when loan demand comes into the equation, but I think the unknown as all of the liquidity and.
We don't know how much liquidity will come in and if theres a significant amount more of liquidity and it comes and then you're probably going to see some margin compression if the PPP.
Money, that's been forgiven doesn't stand on our bank very long and we know that a number of customers will pay dividends they.
And they will make payouts and the money may leave are bang on.
And then the margin probably hangs in there or improves a little bit, but I think the the the.
The Big question Mark is how much liquidity will there be on our balance sheet and how quickly will the loan demand emerge during the year because we do think that we will have loan growth. This year, we may not have quite as much of the first quarter, but we still anticipate a pretty good year for loan demand.
Do you have anything to add to that Jim No. I think you could watch or maybe you could watch our loan to deposit ratio and it is.
And significantly lower today than it was day, a year ago and as the loan to deposit ratio goes and the depths to Charlie's point.
It's just a more efficient use of resources, if we can move some of those.
Liquid assets like securities into loans, and when that begins to happen that'll that'll help the margin a little yield curve steepness in the zero to five wouldn't hurt either or even of a rising rate environment, we're slightly asset sensitive so not not hugely so that we benefit from the little uptick in rates as well.
Okay, we'll continue to watch that part of the yield curve and then just as a follow up I don't think and the last couple of quarters, you've maybe update us on just what you're doing with the digital platform and some of your Fintech initiatives that you had outlined earlier last year as it relates to kind of third and fourth and even some thoughts on what youre going on.
Here in the early early 'twenty, one and so an update there would be helpful. Thanks.
Sure.
We rolled out of the.
The our core providers of products in the last.
Lose track of time, but 90 to 120 days.
And we've had some bumps with that but no not significant bumps I think they they were all they would all be normal and.
And I think we believe that this platform as we get used to it and as we use the enhancements that and offers will be very very competitive with other financial institutions and will really help us we also.
On the process and this is of 2021 initiative of a streamlining of our streamlining our small business banking initiative and we will try to automate a lot of the application and approval process for we will start out small, but ultimately would go up into the two to three of $400000.
The range and we think that will certainly enhance the productivity of our of our commercial bankers by allowing them to focus on.
Larger and more profitable deals, but at the same time, taking care of of our customers. We've also implemented and the last six months.
The platform that's more of an internal platform called on base and it really allows us to be more productive internally I'll give you. One example, just and our deposit operations area and Iowa City was talking to the the folks who run that department the last Friday and they.
Pointed out that they've been able to save just and their department over 4000 man hours of year by the implementation of on base and we have to continue.
Continue to to use those internal things that help us to improve productivity and there's a whole bunch of others and risk management and various parts of our company that the customer might not see but they do make us a better and more efficient company. So that would be a little bit of a snapshot of Terry.
Terry of of.
Some of the things that are on our plate right now.
Okay I appreciate that thanks and have a nice weekend.
Thank you Tara and Heath Terry.
Thank you next question is from Damon Delmonte of K B W. Please go ahead.
Hey, good morning, guys hope everybody's doing well today.
And anyway.
So my first question just regarding the outlook for credit and.
And kind of a little bit of direction here on the provision and you go through the next few quarters.
And do we kind of go back to bookings on provision after this quarters release or do you feel that.
Trends are strong enough, where you're probably going to have additional reserve release as we go through the year.
Yeah.
So David and this is Gary and and I'll start to answer the question kind of on talking about fourth quarter. What what you saw there was the economic factors really driving our calculation to of release.
But we also had and as we've pointed out and migration to non performer that we non performers that we took provisions again. So the net effect is what you saw on the financials and as we go into 2021.
And the economic forecasting improves, which we think will be happening and 'twenty 'twenty one.
You're going to continue to see that opportunity for a lower reserve, but youre also going to see us utilizing that that that opportunity for a low reserve too.
Provide for possible deterioration and the portfolio as we go through the year does that does that make sense that that's kind of the way and at least and our our mind. That's the way seems to lift the place to work.
Got it okay.
What what are your expectations for charge offs for next year.
Yeah.
Okay.
Okay.
What do we have on there.
But if the judge us.
Yeah.
We took a conservative approach and our budget, we will get that for you.
Okay great.
Okay.
And then I guess well why are you looking that up I guess.
Just the kind of circle back on the and the margin.
So if we were kind of kind of exclude the fair value accretion this quarter that kind of puts and the core margin around 3%.
Is that right.
That's right.
That includes the PPP with the excludes that includes the.
Right. So then if we take it a step further and back out the P. P. P.
And that's like probably 2020 something basis points to $22 24 basis points is that the the level that youre, hoping to be plus or minus going forward.
Yeah, David and I don't think of it I don't think the PPP contributed quite that much to the margin.
And they have contributed that much of the loan yield but to the margin with the earning asset base being over 5 billion and I think that was more like a 10 to 12.
12 basis points.
The impact okay, and so that's really.
Yeah, but to answer your question, yes that is the if you if you strip away the accretion and the PPP and you're getting to a number that's in the $2 90 region. Then that's the number we think all else being equal.
Going to be flat, it could be up or down a little bit.
The number.
Got it okay. That's very helpful. I appreciate the clarification on that.
That's all of that I had and questions. So thank you very much.
And we will before the end of the call we'll get to the charge off number that we have on the budget I've got something on my mind, but I don't Trust my memory on that.
Thank you again you have the question. Please press Star then one.
Next question is from Brian Martin with Janney Montgomery Scott. Please go ahead.
Hey, good morning.
Good morning, Brian.
Hey, I appreciate that last time and Jim that's kind of on I was going to get at was where the where the core margin.
Thinking about some stability of give or take of plus or minus the the.
The impacts of Youre thinking that the impact of about 10 to 12 basis points on the on the reported margin for the the P. P. P. This quarter and that and that can you remind us how much of that include of of the fee this quarter.
I am working from memory now I want to say it was about.
About two and a half.
Well of PPP and PPP net PPP and maybe it was three and was three and it is anywhere and we had $3 1 million three <unk> loans of the accretion.
And and the remaining the remaining piece you guys have left is it is about how much.
$5 3 million, Brian and what's left for the <unk>.
And.
The fair to assume that you guys are expecting most of that forgiveness.
And can be recognized in the first half year of that remaining $5 million or so.
Yes, Hi, Brian Yeah, that's the way, we budgeted and my mind much.
Much of it could happen and the first quarter as we look at what's actually being forgiven and we do track that we've seen a bit of an uptick so yeah. I think it's safe to say, we think most of the happened in the first half anyway.
Okay and as it sits right now I guess, maybe for you Jim just I know you've kind of already mentioned and as far as thinking about it but your expectation would be that at least initially when that when those get forgiven.
The balance sheet will get a little bit more inflated and then it's just a matter of how we want to model that.
That liquidity, whether it stays or.
It's still somewhat of what you kind of set last quarter of give or give or take five or so of basis points to the the margin. It's fair to still think about.
Yeah, I would say.
On the day, we get of alone forgiving the money is going to be invested into the and so I'm not sure I see much balance sheet shrinkage.
Due to that transaction, but over time, we do use of the excess liquidity to pay off high rate Cds to pay off whole loans.
And <unk> borrowings and other wholesale borrowings that are at a little bit higher rates of that may be why we see the balance sheet come down a little bit over time.
And sort of on an all time low I think in terms of wholesale funding at the bank at the bank level and I suspect, we will continue to pay down of wholesale funding and large Cds, where we paint a little bit higher rate.
Okay, and then it is and I guess.
Is there a lot of opportunity to do that too.
And maybe.
The pre pay some things are not really you know.
And the FHL, the economics of prepaying and <unk> advance are not terribly attractive so youre better off leaving and in place and just paying it off when it matures.
And what we've found so I think there's 40 of $7 million of of FHA advances coming off of this year and.
I would hazard a guess some of them and the large CD areas 40, or 50 or 60, some of which will renew at lower rates. Some of it will go out of the bank altogether yeah.
Okay. That's fair I appreciate that and then maybe just the last one of two for me just on the give.
Given mortgage and Charlie's comments about both that and the investment area of really having kind of great years do you think about fee income next year and just high.
A high level, how we should think about the you know the.
And.
The contribution from fees next year, given some headwinds potentially on.
The record mortgage here, how should we think about fee income.
We go into next year, and just kind of the step.
Being off point or just how are you guys could frame of something.
I think the way we would start I just think you have to break it into components, Brian and.
I think mortgage is going to have a strong first quarter and you tell me, what's going to happen after that I think none of us know, but the way the year's starting out the maybe not quite as much as 2000.
'twenty, but certainly strong I think the investment services, probably will continue to.
The chart of good path of increasing fees and I know our trust department is counting on higher revenues as well we had a lot of swap income from commercial banking transactions and the first two quarters of last year I think there will be some of that and 2021, but perhaps not quite as much because.
We really did see a lot of that.
And especially before the the fed.
Reduce the interest rates the zero, but I think the potentials of <unk>. So there is the major components service charges, probably continuing on.
Slightly downward trend, which is true for most of the industry.
Gotcha and and so you are not.
And I guess is the mortgage bankers maybe association Charlie it's more on the neighborhood of I thought 20, the 20% to 30% reduction and.
And mortgage volume this year and maybe it sounds like youre, a bit more optimistic than that and that not wildly, but maybe especially given the start of the year.
I'm more optimistic on that and the first quarter, but for the year I think that's a fair because you know we all look at the same things and I think that's the that's a fair way to look at it for the year I think all I'm, saying is we're starting out the year of better than that yeah. I got you. Okay. I appreciate that and then maybe it's one of our Barry just the remaining.
Accretion to be to be brought in I guess kind of the and.
How much of that or just if you can just kind of frame, how you're thinking about the contribution in 'twenty one.
Yes, we have.
The 31st and this is not the PPP that we talking about Brian is it just the purchase discount and it was $9.1 million as what's remaining to be accreted into income and.
I tend to think of that as principally front and loaded as we've observed and so on a quarterly run rate, which we have on our earnings release, I anticipate and will continue to attenuate from there.
Going forward and.
Perfect. Okay. Thank you and thanks for taking the questions guys.
Thanks, Dave and just really quickly with respect to the charge offs.
Five three basis points is what we are expecting with respect to.
Charge offs by 353.
And.
Barry if I could add some some commentary around that too as we talk about the.
We're envisioning 53 basis points of of charge offs for the year, but.
And we don't necessarily envision that we will have to.
Create a provision.
Cover all of those charge offs for the year because of the way. We believe the reserve is going to work is as our economic forecasting and freight is throughout the year.
And reserves will be released.
And that will cover a significant portion of those charge offs. So our actual provision, we don't really see getting to that level.
Yeah, and I think and so all I can add even more I think the way we model it in our budget as we ended the year with roughly a one 5%, yes, we will actually draw down on our reserve to about one 5% throughout the year and other words utilizing that reserve to cover the charge offs that we anticipated at the beginning of the pandemic.
Yeah.
Yeah.
I hope that is clear to you Damian yes that was a game and then yes, yes.
Thank you.
This concludes our question and answer session and I'd like to turn the conference back over the Mr. Charlie Funk for any closing remarks.
Thanks, again to everybody for joining us on the call. This morning.
Those of you who need follow up please call any of us will be happy to respond as quickly as we can and wish all of you a safe happy and healthy new year and weekend, thanks for being on the call.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.