Q1 2021 Hanmi Financial Corp Earnings Call
Ladies and gentlemen, and welcome to the Hanmi financial Corporation's first quarter 2021 conference call. As a reminder, today's call is being recorded for replay purposes. At this time all participants are in a listen only from.
Following the presentation. The conference will be opened for questions I would now like to introduce LASA glass and managing director at <unk> Investor Relations. Please go ahead.
Thank you operator, and thank you all for joining us today with me to discuss Hanmi financials first quarter 2020. One earnings are Bonnie Lee President and Chief Executive Officer, Anthony Kim Chief Banking Officer, and Ron and Santa Rosa, Our Chief Financial Officer.
Yes, we will begin with an overview and the quarter, Mr. Kim will discuss loan and deposit activities and Mr. <unk> will then provide more details on our operating performance.
At the conclusion of the prepared remarks, we will open the call for questions.
On today's call. We may include comments and forward looking statements made on current plans expectations events and financial industry trends that may affect the company's future operating results and financial position.
Our actual results could differ from those expressed or implied by our forward looking statements, which involve risks and uncertainties.
The speakers on this call claim the protection of the Safe Harbor provisions contained in Securities Litigation Reform Act and Mike's 95 for.
For a list of certain factors that may cause our results to differ from our expectations. Please refer to our SEC filings, including our most recent form 10-K, and 10 Qs and.
In particular, we direct you to the discussion of certain risk factors affecting our business contained in our earnings release, our investor presentation, and our form 10-K.
This afternoon, and Hanmi financial issued a news release outlining our financial results for the first quarter of 2021, along with a supplemental slide presentation to accompany today's call.
Both documents can be found in the Investor Relations section of our website at Hanmi Dot com.
I'll now turn the call over to Bonnie Lee Bonnie.
Good day.
And everyone. Thank you for joining us today to discuss Hanmi is 2021 first quarter results, our performance and of course quarter represent a solid start to 2021 during the quarter, we benefited from strong growth in deposits and solid loan production and telephone and expense management.
<unk> contributed to the significant earnings expansion and the.
Country emerges from the pandemic and macroeconomic conditions continue to improve momentum is building and I believe hanmi is well positioned for the year ahead.
And the backdrop and following are the key financial and operational takeaways from from first quarter. We generated net income of $16 7 million or 54 cents per diluted share.
From both the prior quarter and the same quarter last year.
And I'm very pleased with this result, which was a near all time record fourth quarter earnings in the corner and benefited from lower credit loss expense more and interest expense and gains from the sale of a set of control.
And check protection program or PPP loans, and what is traditionally our lowest slowest quarter per year for new loan production and even though.
And Asian volume and the first quarter was notably strong and nearly offset the normal runoff loan sales and from Midland and.
First strong PPP loans net interest margin of 3.09% was down just slightly from the prior quarter and the reduction in deposit cost nearly offset the decline in yield on earning assets.
Deposits were up four 5% from the prior quarter and 22% from the first quarter and last year. Once again growth in total deposits. This past quarter came from non interest bearing demand deposit accounts, which now represent nearly 40% of our total deposits.
Oh from 30% a year ago.
First quarter and non interest expense adjusted for the sand control cost capitalization or flat and both the linked quarter and year over year basis, and declined significantly and on absolute basis, and finally, hanmi remains favorable and capitalized hanmi is regulatory capital ratios remain.
Strong and we are well positioned to continue growing and safely.
Next I would like to provide an update and our modified loan portfolio and the positive trends and continued to see as we emerge from the pandemic.
At year end 2020, we had significantly reduced and modified loan balance to 156 and growth.
Ladies and 3% for portfolio and SMT and the first quarter of 2021, the balance cash and further reduced by 25% and 17, Dalian and Stewart and just two 4% per quarter.
Oh.
And at the end of the first quarter, 89% of our modified and balloons by providing a modified payment.
From 87% at year end for.
For all loans and comprised the current modified portfolio. We have completed detailed reviews of the borrower's financial condition.
And some cases and we have required additional credit enhancements.
And finally to leave our commitment to proactive asset management and significantly helped both the borrower and the bank.
Looking at the key asset quality metrics criticized loans increased and the first quarter by 26 and $3 million, reflecting our coordination ununquadium proactive asset management practices.
Approximately 58 per cent of Daytona and criticized loans per loan was made up of loans that were adversely affected by the COVID-19 and net.
I was very pleased with the substantial and first quarter reduction in non accrual loans in total non accrual loans declined nearly 30 for Chris that in the quarter to $55 1 million or one point and one 4% of loves the incremental and strengthened by several other relationships that were positively disposition.
During the first quarter with a minimal or no loss.
At the end of the first quarter, our allowance for credit losses was $88 4 million and <unk>.
And one nine and 4% of loans, excluding PCI loans.
We also.
Continue to have a separate allowance for possible losses and crew.
And interest receivable for loans currently on previously modified under the cares Act now down to $1 2 million and keeping our strong allowance and capital position and proactive asset management practices I'm confident we are all well to teach and to manage asset quality as we emerged from the Pentagon.
And then and economic and recovers.
Now I would like to shift gears and provide an update and several key initiatives for 2021 that are designed to provide our customers with additional products and services for them.
Other diversify our sources of revenue and drive growth.
Beginning with our new residential mortgage platform first quarter and anything activity included approximately 12 million other residential mortgage along with the 2000 and selling them Elliott and warehouse lending, we have developed and strong relationships with the several correspondent lenders, which we believe and most efficient way to build our rate base.
For me all the.
Looking ahead, we expect residential mortgage production and will be higher in the second quarter and continued to ramp during the year with a goal to other residential mortgage loans, comprising 10% to 15% of the hanmi loan origination activity in 2021.
Next is our digital initiative.
Which we haven't developed for digital banking platform to more efficiently scale, our services, while providing a more convenient and seamless customer experience and platform is currently accepting online and C D and savings deposits.
During the year, we expect to add a demand deposit feature to the platform and more aggressively market, our digital capabilities to current and prospective customers.
And finally and continue to be pleased with the result of our corporate and Korea, and you should it which is focused on developing and extending banking relationships with a Korean company.
With the presence or offices and the United States.
We recently hired a new relationship manager with a deep relationship and the corporate Korean and there's a committee to argument our effort, which includes cash and seven strategically located and Hanmi branch at.
First quarter, corporate Korea, and corporate loan production was very strong and at quarter and had contributed 11% of our total loans.
And the very strong pipeline, we expect our corporate Korea program to generate double digit growth in loan production in 2021 with that I'd like to turn the call over to Anthony Kim Our Chief banking officer to discuss the first quarter's loan production results and deposit gathering activities Anthony.
And your body Amit.
And me generated consolidated gold production and volume totaling $348 million in the quarter up six 2% and from the prior quarter's volume of $327 8 million.
It was driven by strength in SBA loans, which included 131 5 million second draw of PPP loans, partially offset by the lower production of C&I and CRE loans and the seasonally slower first quarter.
More specifically first quarter production consisted primarily of under $3 1 million of CRE loans, and 41 9 million and I would say nine loans and how.
And by 90 million of SBA loans.
First quarter production was $34 1 billion of commercial equipment leases.
And you lead generating loans for the quarter, excluding second draw SBA loans.
And the weighted average yield for 0.05%.
I would also like to mention that for many months under our commercial lines of credit increased 82% from a year ago, So 605 million.
However, our balances on these loans fell by $9 5 million computers, and the first quarter last year, reflecting a fourth quarter utilization rate of 42, 8%.
Finally, we did see some of our much production slipped into April and we believe that production and should continue and a robust manner.
During the first quarter, Hanmi and sold non PPP, seven ASB and loans generating a gain and sale of Walgreens and $7 million and I was pleased with our execution and theirs.
70 trade premiums increased to $10 six 6% in the period.
In addition, we also sold and second drove 50 day loans and net premium up to three 5% generating an additional $2 5 million and gain on sale and a quarter.
First quarter paid off $206 7 million remained in line with levels experienced in the recent quarters, but we're further eliminated by $44 3 million of forgiveness.
For a straw PPP loans for you.
Weighted average interest rate and the loans that paid off in the period, excluding PPP was for 73% or 68 basis points higher than the same adjusted weighted average yield on new production and the quarter.
For solid loan production in the quarter, coupled with the loan payoffs and sales resulted in loans off for a $2 billion at the end of the first quarter essentially unchanged from the prior quarter, excluding PPP loans.
And maybe remains committed to conservative disciplined underwriting criteria.
For the commercial real estate portfolio, consistent with and asset quality data from prior quarters.
The weighted average loan to value and weighted average debt coverage ratio as of the and the first quarter were 48, 6% and one nine times respectively.
And I hope the economic disruption caused by the fact that we expect to maintain and blower conservative underwriting and dollars, which includes limiting origination activities within certain high risk industries and closely monitoring the economic impact and our customers over the near term.
Now I would like to provide and update on our hospitality portfolio that segment of our portfolio and they are asking and most impacted by depend dynamic.
And so much 31, hospitality and those totaled 888 million for 18 per cent of the total portfolio.
And from 19% at year and.
Overall, we believe our hospitality loans are and conservatively underwritten.
The average loan balance, maybe and but just three 3 million with a weighted average debt coverage ratio of two times.
And the weighted average loan to value ratio of 51% at origination and.
The quarter and 11% of our hospitality portfolio was criticized with approximately half of these loans stemming from metropolitan based the properties. However.
However, we have obtained in the last 12 months.
And appraisals for these properties and the current weighted average monthly value of all the credit size founded loans was 69, 3% within the range of 47% from 81% for loans greater than $5 million. This.
And this reflects we believe the particular property and location not necessarily a systematic decline and valuations.
Furthermore, non accrual and hospitality loans represents only 1% of this portfolio with only two loans over 3 million.
Overall, we believe our exposure to the hospitality segment and the related risks and the current environment are manageable.
We remain vigilant and working with our effective and hospitality and customers to help them for the prices moving on to deposit gathering activities, we'd have a very strong first quarter.
Total deposits were $5 five 1 billion at the end of quarter compared with a 528 billion at the end of preceding quarter, representing 84, 5% quarter over quarter increase and a 22 per cent decrease from a year ago. Importantly, we continued to benefit from an improving mix shift.
Those deposits as much of the growth is being driven by non interest bearing demand deposits and in fact, as Bonnie mentioned noninterest bearing deposits now represent nearly 40% and called on deposits up for.
30% a year ago.
I would now like to turn the call over to Rod and Santa Rosa, Our Chief Financial Officer.
Thank you Anthony and good afternoon, all let's begin at the top where we posted a $46 million of debt interest revenues down sequentially because of two fewer days in the quarter.
Looking a bit deeper we saw a one 2% growth and average interest, earning assets offset a four basis point decline and net interest margin.
More than half of the growth in earning assets came from our loan portfolio, while the remainder occurred and lower yielding securities and deposits at the fed.
In addition, while we did see some first dropped PPP loan forgiveness in the quarter. It had little effect on our net interest revenues.
Turning to our net interest margin relatively steady at three 9% our loan yields declined 10 basis points from the fourth quarter two for two 4%, while the cost of our interest bearing deposits dropped 15 basis points to zero point for you.
For 9%.
Notably the spread between the yield on earning assets and the rate paid and interest bearing liabilities was 281 basis points for the first quarter.
Nearly the same as the 280 basis points for the fourth quarter.
And the 280 basis points for the first quarter a year ago.
And where we had a much different interest rate environments.
As Anthony noted the weighted average interest rate on new loan production for the first quarter, excluding second draw and PPP loans was 4.05%, although our first quarter loan portfolio average yield. However, we also have maturing time deposits for the second quarter with a weighted average interest rate of 65 basis points.
And that will mature into lower rate time deposits. In addition at the end of the first quarter, we saw a significant growth and noninterest bearing demand deposits and the concomitant growth and lower yielding balances at the fed.
As a result, we expect the tension between the continued shift to the current rate environment as well as the continued shift and the mix of earning assets and funding should allow for the net interest margin to remain relatively steady.
Moving to our net interest income of $9 million, we realized a $2 5 million gain from the sale and second draws PPP loans at a net premium of $2 35 per cent.
At the end of the first quarter loans held for sales included $21 7 million for a second drop PPP loans, and we expect to sell and second quarter.
We also had $1 7 million and gains from the sale of traditional SBA loans and a net premium of 10, 66%.
At the end of the first quarter traditional SBA loans held for sales and $10 9 million.
Noninterest expenses were $29 5 million for the first quarter down for 5% from the fourth quarter, principally because of the $1 for millions of capitalized costs from second draws PPP loans the efficiency ratio was $52, 92% for the first quarter, However, adjusting for security gains.
And second draw a PPP loan gains and origination costs and the efficiency ratio would have been 58.0% to 7%.
Pulling this all together from a pretax pre provision perspective, and adjusting for the effects of second draw PPP loans as well as certain other items, we saw a pretax pre provision income of $22, one moving down from the fourth quarter, but again, primarily because of two fewer days and the Florida.
Our credit loss expense for the first quarter was $2 1 million. This included a provision for loan losses of $1 million a negative provision for off balance sheet items of a half a million dollars and another $1 million negative provision for losses on accrued interest receivable on loans previously or currently modified omnicare.
Correct.
We also established a $2 1 million allowance for possible losses on an SBA guarantee repair loss.
Looking to the balance sheet, our allowance for credit losses decreased to $88 4 million from $94 million after a provision of $1 million and net charge offs of $3 million.
Included in the allowance for credit losses were $12 $2 million of allowances associated with individuals and impaired loans down $1 9 million from yearend.
While macroeconomic conditions continue to improve we believe our allowance for credit losses adequately reflects various economic forecasts as well as the heightened levels of near term uncertainty as we continued to emerge from the pandemic. We will continue to closely monitor and evaluate the evolving economic environment and refine our outlook and update.
Our loss allowances accordingly.
Our return on average assets and return on average equity and the first quarter for 1.08 per cent and 11, 63% respectively and.
And finally, our tangible book value increased to $18 59 per common share at the end of the first quarter and our tangible common equity ratio remains strong at $8, eight and 7% and through all of our regulatory capital ratios and with that I'll share.
Over to volume.
Thank you Ron.
And as we slowly emerges from this crisis I couldn't be more proud of the hard work done by our employees across all of our locations.
We have supported our customers and bits and unique environment. Looking ahead, I believe hanmi is well positioned to continue driving profitable growth as the pandemic subsides and macroeconomic conditions continue to improve and.
And look forward to sharing our continued progress with you when we report our second quarter results.
In July and kills.
Operator that concludes our prepared remarks, we'd now like to open the call for questions.
Yes.
Okay.
Thank you ladies and gentlemen, we will now begin our question and answer session and if he would like to ask a question. Please press star one on your telephone keypad and confirmation tone will indicate that your line is and the question queue. You May press star two if he would like to remove your other question from the queue.
For participants using speaker equipment, and it may be necessary to pick up your handset before pressing and Starkey one moment. Please while we poll for questions.
Yeah.
Our first question is with Matthew Clark from Piper Sandler. Please proceed with your question.
Hey, good afternoon.
Thank you.
Maybe starting on the P. P. P did I hear you guys correctly that you plan to sell the remaining amount of PPP loans here and the second quarter.
And if not you know.
And I'm, just trying to get a sense for what's remaining in terms of net fees.
Okay.
Yes, Matthew this is Ron so we plan to sell the second draw PPP loans 21, 7 million with respect to first straw PPP loans, which are about 256 million at the end of the quarter, we will continue to let that be.
The reduced by forgiveness.
And any payments that the borrowers wish to make.
Okay and do you have that.
The remaining amount of I think it's around.
<unk> 6 million or so and you have got.
<unk> 3.3 dollars 7 million.
We put seven okay.
Thanks.
And.
Okay and then.
Production was good balances loan balances ex PPP, we're flattish, though I think coming out of last quarter you were.
And the low to mid single digit growth I assume that's still the case.
For the year yeah.
Okay.
Any updated thoughts on on the noninterest expense outlook.
And now the $1.4 million was a little unusual this quarter, but.
Excluding that.
<unk> growth is that also still expected.
What are some other ships.
Yes, I think yes you.
You could probably continue you can expect.
I'll say inflationary solid growth.
So trending at about $30 million per quarter.
Give or take that sounds about right.
Okay.
And on the increase and criticized loans. The additions this quarter can you give us some color there.
There as to what was added.
Sure and the special mention category, we have a inflow about mm.
Three our hospitality loans and and.
And it happens to be these are often a upper tier our and year to either to tourists.
And spot or D and so.
Three of them you can't combined and you know it.
Over $20 million. So that's the contribution from special mention category.
And for the sub standard we have basically a one non media media company and was impacted by COVID-19 and has contributed to the increase Cynthia substandard category.
Okay.
Got it and then just on the share repurchase.
Plan.
You know given where shares are today relative to where they were on average at least at the price you bought them at during the first quarter should we suspect that.
Buyback activity will be more muted here going forward.
We'll continue to do share repurchases and I'll say in the ordinary course as market conditions allow.
Okay fair enough. Thanks.
Yeah.
Our next question is with Kelly.
And the Moca with K B W. Please proceed with your question.
Hi, Hi, Rodney and bond, but he run and Bonnie Wow.
Hi, Tom.
Yeah Yeah.
Late in the earning season right now.
And with regards to.
Credit.
Given where where everything is with the moving between criticized and special mention loans do you expect any more kind of negative migration from non hotel portfolio and should that not occurred and you think that.
Whereas there are adequate for the losses.
That could potentially close through and then.
Should there be greater improvement there could be further releases ahead at least seen and other ranks.
And so.
Let me respond to the first part of the question so in terms of.
COVID-19 impacted hospitality loans and the criticized category.
I think most other loans have spare for stop and we're hoping that day that this particular hospitality industry is really that can be started kicking off so.
Yeah.
Looking for them.
And I hope that.
We don't have additional downgrades.
Downgrades.
But I think you know.
Within the next couple of quarters, and we'll see the activities in and outs and there won't be.
And some of the properties relative.
And moving out of the cap rate and possibly maybe theres some moving from special mention and start a cap rate. So it depends and then more of the.
And more of a industry outlook.
And he has a ton of industry and.
In terms of other resellers to I think where I am.
And it can be reserved.
And and.
And currently.
Feeling I think it's maybe too early to talk about the.
Listen to me Sir.
Got it okay. Thank you.
And and with expenses and I'm, sorry, I think I think you are.
<unk> started to talk about it in your prepared remarks, but and I may have missed that with P. P. D Ram to them what was the amount of deferred expenses that.
And remain deferred and in Q1 and I assume sales split.
Accelerate the.
And the recognition, but just wondering what the impact was to one Q and expenses to kind of figure out a good gulfport work rate for years.
Sure. So I would I would ask you to think of PPP as two discrete ideas of the first discrete ideas second draw.
Which we've originated and we will sell.
Those capitalized costs are in the first quarter and they were $1 $4 million.
The.
First strong PPP loans, which we have about 256 million and those are on the balance sheet and they will go through the forgiveness process or repayment process.
They have $3 7 million.
Net deferred fees remaining in those balances.
Got it thank you and maybe one final question on deposits.
Obviously, some really good growth, especially in non interest bearing do you have a sense of how much of that and I know it's.
Difficult question, but how much of that.
It's related to stimulus and P. P. P and you know what is your expectation for how sticky that core deposit process.
Well out of.
Total TV and growth of about $270 million.
And obviously, we did 131 point.
And 5 million other typically the second round.
So we think 130 million views and true to keep the second round and other increase.
The increase was due to some of these new accounts that we acquire and first quarter and as well as balance increase.
From the existing customer that we acquire last year, so from the organic growth.
I think we're estimating about 60% to 70% will be sticky.
Got it. Thank you so much that's very helpful. I'll step back now.
As a reminder, if you would like to ask a question. Please press star one on your telephone keypad.
Our next question is with Tim Coffey from Janney. Please proceed with your question.
Great. Thanks afternoon, everybody.
Hi.
And <unk>.
The round two P P loans, where the majority of those to existing clients or are there new clients mixed in there.
Those are two mostly existing clients.
Okay. Okay.
That's great and then Ron what's the how do we think about the tax rate as we roll through the year.
So a little bit higher and the first quarter, just because of the timing of certain discrete events, but.
But I think for the year.
Would trend more towards a 30% effective tax rate.
Okay.
Okay, Great and those are my questions. Thank you very much.
Our next question is with Jason Jason Stewart from Jones trading. Please proceed with your question.
Alright. Thanks.
And Ron I wanted to talk about the securities portfolio for a second and how you view the attractiveness of securities and particular as rates backed up and <unk> versus where they are today.
Well I guess I can keep it simple and saying big alternative is.
Balances at the fed at 10 basis points, so when and when 10 basis points since your your baseline.
What could look attractive.
But we prefer in terms of investment keeping the duration right now basically short I think we're around on an effective basis about three and a half ish.
And so we'll continue to look at mortgage backs, we do like amortizing securities.
And the cash flow and it gives us that reinvestment opportunity.
Each month.
Okay. Thank you and then a quick follow up I do believe you mentioned and the amount of loans and hospitality that were modified but I think I I missed that do you could you provide that.
It was $86 7 million.
<unk> six point.
And I think what we said.
And.
Sorry, and what was the total amount of modified.
Put a modified loans or 106 10 million for each.
Correct.
Pete.
Thank you so much appreciate it.
Okay.
Yes.
Our next question is from Gary Tenner with D. A Davidson. Please proceed with your question.
Thanks, Good afternoon.
I just wanted to talk a little bit about the corporate Korea initiative.
You know you you've talked about the pipeline that you're expecting to generate double digit growth from on production. This year for you.
And talk a little more about what.
For the typical types of loans, you're making there are.
Do you have any existing.
And just from deposit relationships and best for coming out of that.
Endeavour and and what the outlook might be in terms of contribution on that side of the balance sheet.
Sure you know when we first initiated the corporate Korea a project from.
And Michigan.
It wasn't more of a C&I play.
But it's it's according to be more both the C&I as well as and CRE loans as well as a tremendous DDA contribution and part of a.
EBITDA increased debt and see a mention about from you and your content we acquired are in.
And last year as well as the quota.
So.
And it's opposed by that that the balance sheet and.
What we in terms of AR and types of loans that we see.
And it does provide for somebody as well as some of the commercial real estate and corporate.
Corporate Korean companies are buying up into United States, and then and I I had explained it I think last quarter.
And that.
And it's a little bit different than the.
And the type of a commercial real estate that we are entertained in the past or is it corporate Korea companies and look for eight class type of properties and in major metropolitan cities and they are they are backed up by a lot of capital investment and from another company. So we have done the.
You know line facilities at five to 10 million too and some of the commercial real estate deals that are over 30 million. So the in terms of the range a bit.
From a sizes as well as a type of tier it very broad based.
So and when.
And then I think couple of years ago and.
And our sports initiate it.
And that's why it was more of a thought for the tier one tier three automobile company and now it's not only for those companies.
And with that manufacturers as well as the and Ah.
Trade wholesalers and and food business as well, so where we are making our name out there and sometimes and that really are.
And you know attracting the deals.
Hum.
They also have walking through our doors.
Okay.
Thank you Bonnie and and then just as a follow up in terms of kind of the outlook for.
Second quarter growth in terms of the pipeline are you seeing increasing.
Demand on the C&I side at all or is the pipeline build and kind of at least near term growth projection more sheri oriented I'm not and I'm.
And in general and not just specific to the corporate Korea initiative.
And I think just looking at the corporate interest you know what.
Looking at the second quarter pipeline.
Have a good.
Good CRE as well as S Eni and so I'm thinking it's guidance yet.
Other kennedys, so and as well for something like that.
And SBA deals and and.
And also some of our our leasing opportunities as well.
For our pipeline going into the second quarter is much stronger authentication corner.
Thank you for taking my questions.
Okay.
<unk>.
Yeah.
Our next question is with David <unk> with Wedbush Securities. Please proceed with your question.
Hi, Thanks, a couple questions I was curious about the pricing that you're getting on your new raising mortgage initiatives could you I think you spoke about $12 million or so on S. F R and $27 million and mortgage warehouse can you talk about the pricing that you're getting on those.
Yeah, because we're concentrating on the non QM products, which is typically a three quarters to bunkers and higher than the confirming those so it's about three seven and five at a 2.25 ish.
Great and the mortgage warehouse.
Mortgage warehouse.
We typically charge anywhere between three 5% to 4%.
Great and then we do.
Yeah go ahead.
And I'll go ahead.
And I was also curious about on the SBA PPP loans for round. Two can you talk about why you decided to sell the round two as opposed to retaining them like round one.
Sure. We did a you know a return analysis, obviously and.
And the and and and we still have and over 250 million. The forgiveness for the first round and I think it's taking much slower to.
To account for the forgiveness process, and and and I think just evaluating the time and effort.
And then return analysis, and we decided that it's best to us sales of loans and S.
And it's been two deals for the second one.
Got it thanks very much.
Yeah.
Yeah.
Yeah.
We have no further questions and the queue and at this time. Please continue.
Thank you, ladies and gentlemen that does conclude our call today you may disconnect the lines and thank you for your participation.
Yeah.
Yeah.
And.