Q2 2021 Hope Bancorp Inc Earnings Call
[music].
Good day and welcome to the Hope Bancorp 2021 second quarter earnings Conference call. All participants will be in a listen only mode should you need assistance. Please signal conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question you May Press Star then 1.
On your Touchtone phone and to withdraw your question. Please press Star then 2 please note. This event is being recorded I would now like to turn the conference over to MS. Angie Yang. Please go ahead.
Thank you Jack good morning, everyone and thank you for joining us for the Hope Bancorp 2021 second quarter Investor Conference call.
Usual, we will be using a slide presentation to accompany our discussion. This morning. If you have not done so already please visit the presentations page of our Investor Relations website to download a copy of the presentation or if you are listening into the webcast you should be able to view the slides from.
Your computer screen as we progress through the presentation.
Beginning on slide 2 let me begin with the brief statement regarding forward looking remarks. The call today may contain forward looking projections regarding the future financial performance of the company and future events. These statements are based on current expectations estimates forecasts projections and management.
The assumptions about the future performance of the company, including any impact as a result of the COVID-19 pandemic as well as the businesses and markets in which the company does and is expected to operate these statements constitute forward looking statements within the meaning of the U S private securities.
Litigation Reform Act of 1995. These statements are not guarantees of future performance actual outcomes and results may differ materially from what is expressed or forecasted in such forward looking statements. We refer you to the documents the company files periodically with the SEC as well as the safe.
Harbor statements in our press release issued yesterday Hope Bancorp assumes no obligation to revise any forward looking projections that may be made on today's call. The company cautions that the complete financial results to be included in the quarterly report on form 10-Q for the quarter ended June 32021.
Could differ materially from the financial resorts results being reported today. In addition to some of the information referenced on this call today are non-GAAP financial measures. Please refer to our 2021 second quarter earnings release for the reconciliation of GAAP to non-GAAP financial measure.
Now we have allotted 1 hour for this call presenting from the management side today will be Kevin Kim Hope Bancorp's, Chairman, President and CEO, Alex Ko Senior Executive Vice President and Chief Financial Officer, Peter Koh has transitioned to a broader role as it.
Deputy Chief operating officer and continues to work closely with our credit Admin Department and our new Chief Credit Officer, Richard Marshall Peter is here with us as usual and will be available for the Q&A session with that let me turn the call over to Kevin Kim Kevin.
Thank you Angie good morning, everyone and thank you for joining us today.
Let's begin on slide 3 with a brief overview of our financial results second quarter results underscore the zone management of our operations and we saw the positive trends we were expecting in loan production net interest margins and revenue with linked quarter.
Increases in both net interest income and non interest income for GAAP.
Further with a modest reserve release this quarter. This resulted in a strong quarter of earnings with net income of $53.8 million.
<unk> 43 cents per diluted share and pretax pre provision income of $64.5 million.
An increase of 6% over the preceding first quarter.
I would like to highlight a few notable items that were key factors in driving our performance in the second quarter.
First we continue to have success in attracting new commercial deposit relationships to the bank and expanding our deposit relationships with existing customers. This continues to support inflows of low cost deposits during.
During the second quarter, our non interest bearing deposits increased 4% quarter over quarter, while money market deposits increased 16%.
Combined non interest bearing deposits and money market account balances now represent 78 per cent of our total deposits up from 63% 1 year ago.
The significant shift in our deposit mix away from time deposits has substantially reduced our cost of deposits.
And driven the 32 basis point increase we have seen our net interest margin over the past year, despite the pressure on earning asset yields.
Second with premiums having increased in the secondary market, we resumed selling our SBA loans to take greater advantage of the strong SBA platform that we hope built.
The $2.4 million in gains we recognized this quarter helped drive the increase in our non interest income at a time when many other fee generating areas are under pressure.
Third and most importantly, we saw this steady improvement you know hotel motel and retail commercial real estate portfolios that we.
<unk> as the economy continued to reopen.
With more borrowers returning to regularly scheduled payments upon a exploration over their modification periods. Our loan modifications declined to 2.4% of total loans at June 30 of 2021.
During the quarter, we sold $119 million of higher risk special mention and substandard rated hotel motel loans. These loans were sold at a discount that was less than the reserves held against these loans, which reflects the conservative book.
Broach that we took to building our allowance for credit losses.
All of these loans at a discount less than the reserve held against them combined with the decline in modified loans and improving economic forecast contributed to a reserve release this quarter.
Moving on to slide 4.
As we expected based upon our growing pipeline, we had a significant increase in loan production.
Excluding PPP loans, we had $874 million in loan production, which was 61% higher than the preceding first quarter.
It is also a record level of loan originations for the bank. So we have quickly surpassed even pre pandemic levels of loan production.
Excluding PPP loans in the second quarter, we funded $520 million in commercial real estate loans $301 million of C&I loans and $53 million of consumer loans, consisting primarily of residential mortgages.
SBA loans, which are included in the CRE and CNI production, just discussed totaled $78 million, including $65 million of 7.8 loans in the second quarter of 2021.
We continue to be successful in attracting new commercial relationships and the $301 million in commercial loan production represents 1 of the larger quarters of originations for commercial lending.
The record level of loan production, we had this quarter along with the purchase of $96 million in 30 year fixed rate residential mortgage loans was offset by a number of factors that resulted in total loans at quarter end decreasing 2% from the prior quarter.
We had a $231 million quarter over quarter decline in warehouse line ending balances as demand for refinancings has decreased with the rise in mortgage rates and a lack of housing inventory in many markets has impacted purchase originations.
Aggregate payoffs and paydowns were higher than usual at $891 million versus <unk>.
$572 million in the first quarter of 2021.
Reflecting in large part a significant increase in pay offs.
We attribute the increase in pay offs to a number of factors, including highly competitive lending environment.
Excess liquidity of our borrowers was also a contributing factor to the higher levels of pay offs.
And as well P. P. P forgiveness ramped up in the second quarter of 'twenty, 'twenty, 1 and totaled $164 million versus $30 million in the preceding quarter.
But even excluding PPP forgiveness payoffs were higher quarter over quarter.
During the quarter. We also completed the sale of an aggregate $119.3 million from our hotel motel portfolio that were viewed to be higher risk.
In addition to the sale of $42.642 $6 million in residential mortgage loans, we resumed the sale of SBA 7 loans to the secondary market and sold $30 million during the 2021 second quarter.
Now moving on to slide 5 let.
Let me provide an update on our loan modification program under the cares Act.
We continue to see a steady decrease in the balances of our active loan modifications at June 30 modified loans decreased to 2.4% of total loans down from more than 6.9% as of March 31 of 2021.
And we are pleased to report that virtually all of the loans for which the cares act modifications have expired.
Our current and performing.
Based on our COVID-19 modifications exploration schedule, we expect active modifications to decrease to approximately 1% of total loans by the end of the third quarter of this year.
So moving on to slide 6.
We have provided updated information on the modification program for our hotel motel and retail CRE properties.
2 sectors that have been most impacted by the pandemic.
At June 30, the level of loans modified you know hotel motel portfolio decreased 2.8% of the portfolio from 33% as of March 31 of 2021, we have approximately $882 million of modifications in this portfolio mature.
During by the end of the third quarter. So this percentage will be reduced to minimal levels within the next 3 months as I mentioned earlier, we sold $119 million of hotel motel loans, which we believed would require a longer recovery period as a result of.
This sales we have been able to significantly de risk this portfolio there.
The Revpar data that we are tracking for our markets and our current financial data. We are receiving on a monthly basis, demonstrating significant improvements and we expect the performance of our hotel motel borrowers will continue to improve.
Looking at our retail CRE portfolio at June 30, we have $74 million of retail CRE loans that are currently operating on the modified terms, representing 3% of our retail CRE portfolio. This is down from approximately 8% as of March.
<unk> 31 of 2021.
For this portfolio, we have approximately $24 million of modifications expiring during the third quarter.
Now I will ask Alex to provide additional details on our financial performance for the second quarter.
Alex.
Thank you Kevin.
Beginning with slide 7 I will start with our net interest income, which totaled $126.6 million, an increase of 3% from $122.6 million in the preceding first quarter.
Representing our fourth consecutive quarter of higher net interest income.
The growth in net interest income this quarter was due to a 13% reduction in interest expense as a result of the lower cost of deposits.
Along with a higher weighted average yield on loans.
Reflecting the accelerated recognition of net.
Net fees due to PPP loan forgiveness it.
During the second quarter of $2020.164 million of PPP loans or forgiven versus $29 million in the preceding first quarter.
Total net fee realized from PPP forgiveness was $1.8 million in the second quarter versus $250000 in the first quarter of 2021.
In the second quarter, our net interest margin increased 5 basis points true, 3.11%, which represents our fourth consecutive quarter of margin expansion.
The improvement in our net interest margin. This quarter was due to a combination of lower cost of deposits and an increase in the weighted average loan yield.
Excluding purchase accounting adjustments, our net interest margin increased by 7 basis points quarter over quarter during the second quarter of 2021.
The success, we are having in gathering lower costing deposits has provided additional opportunities to bring our deposit costs down as we have $1.2 billion in time deposits maturing in the third quarter at a weighted average rate of.
45 basis points.
That said, we expect our quarterly decline to our cost of deposits will be slower than.
We have seen in the past few quarters.
Now moving on to slide 8.
Our non interest income was $11.1 million for the 2021 second quarter up from $8.8 million in the preceding first quarter.
The primary driver of this increase was the resumption of the sale of our SBA 7 loans.
<unk> generated $2.4 million and net gains in the second quarter of 2021.
The SBA 7 loans sold in the quarter were a seasoned loans and we recognized a gain on sale of loans approximately 8%.
We currently have approximately $322 million of the celebre SBA.
Kevin a loans most of which are seasoned loans.
Going forward for.
The near term, we expect to sell approximately $30 million of SBA 7 loans to the secondary market on a quarterly basis with our expectation of recognizing approximately $2.5 million of gain on sale each quarter.
The gain on sale of SBA loans was partially offset by a decline in gain on sales of mortgage loans.
A lower volume of a retail mortgage loans sold during the quarter.
As well as a decline in the average premiums recognized on the sale.
During the second quarter, we sold.
$42.6 million of residential mortgage loans, compared with $67.8 million in the preceding first quarter.
Moving on to non interest expense on slide 9.
Our noninterest expense was $73.1 million and our 2021 second quarter, representing an increase of 4%.
From the preceding first quarter.
The largest contributor to the increase was a $2.1 million dollar software impairment charge from the disposition of an existing license software platform.
When the software impairment charge is excluded we believe that our operating expenses should remain in the same range over the second half of the year.
Now moving on to slide 10.
I will discuss some of our share deposit trends weakened.
We continue to run off higher costing time deposits and replace them with lower cost deposits through our business development efforts.
Kevin mentioned during the second quarter, we had a significant growth in non interest bearing and money market deposits, while our time deposits decreased 16%.
The growth in our lower cost deposit categories exceeded runoff in time deposits, resulting in a 3% increase.
In total deposits.
Now moving on to slide 11.
I'll review our asset quality.
As I read the first quarter, we had an increase in criticized loans and this was largely due to 2 larger loans.
First is a $35 million hotel motel.
Credit relationship, which was downgraded from the Covid watch grade to a special mention.
The property is in a good shape and good location.
Bob has been slow to recover from the impact of the pandemic.
We are well secured on this long and they are a very strong borrowers.
That have the financial resources to withstand a prolonged recovery period.
Accordingly, we do not anticipate any loss on this credit.
Generally.
The hotel motel loans currently in the special mention category.
Many of the borrowers that have demonstrated significant improvement in their revenue and cash flows over the past couple of months this and haven't resumed making for principal and interest payments.
Barring any setbacks to the economic recovery. We expect these positive trends are sustainable for most of our borrowers and as a result, we expect to be in a position to begin upgrading many of the special mention and substandard rated.
Hotel motel laws.
The second half of the year.
The second larger long contributing to the increase in criticized loans.
He is a 46 million dollar construction loans.
That is taking longer to stabilize and the pandemic impacted our business environment. Following the completion of the project.
Occupancy is now improving.
And as a tennis are beginning their business operations. We fully expect this credit will eventually stabilize over the course of the economic recovery.
Looking at non performing loans we.
We had a 15 million dollar increase.
From the end of the prior quarter. This was primarily due to 2 factors.
Delinquent loans 90 days or more on accrual status increased by $4.4 million, reflecting a timing ish issue and Fitch and long that mature during the second quarter was used all day and the third quarter.
This loan is now current and performing.
Our current GDR loans increased by $9.6 million, you true maturity concessions granted for 2 credit relationships.
Taking all these factors into consideration.
We view our underlying asset quality is generally improving and are cautiously optimistic that we will see meaningful improvements by the end of 2021.
We had $11.5 million and net charge offs during the second quarter or 35 basis points of average laws.
Annualized basis.
This includes $11.8 million in charge offs related to the $119 million of.
Hotel motel loans that we that were sold.
All of which was previously reserved for in prior quarters.
If we exclude the hotel motel sales impact.
To have recognized a net recovery for the second quarter of 2021.
Now moving on to slide 12.
We recorded a negative provision for credit losses of $7 million and low second quarter.
The negative provision was due to the impact of improving economic forecast low.
<unk> loan balances.
The sale of the hotel motel laws that.
That the risk it.
This portfolio.
The provision brought our.
Allowance for credit losses, true, 1.41% of total loans or 1.47%, excluding PPP loans.
Now moving on to Slide 13, let me provide an update on our liquidity position and capital ratios.
Our overall liquidity position remains very strong as of June 32021.
Our primary source of funds continue to be a customer deposits.
And we continue to see significant increases in non interest bearing demand deposits.
We maintained a robust capital position with our total risk based capital ratio.
Share 1 common equity ratio.
Tier 1 risk based capital ratios all inquiries, Inc. From the prior quarter.
As of June 32021.
Continued to maintain a meaningful amount of excess capital above the amount required to be considered well capitalized.
And given our strong capital and liquidity positions, we maintained our quarterly dividend at <unk> 10 per share.
With that let me turn the call back to Kevin.
Thank you Alex now moving on to Slide 14, let me provide a few comments about our outlook for the remainder of 2021 week.
We expect many of our positive trends to continue in the second half of the year, including further but more modest reductions in our cost of deposits and maintaining a higher level of non interest income driven by the continued sale of our SBA 7.8 loans.
Utilizing our excess cash balances is expected to have a positive overall impact to the net interest margin.
We expect to see a reduction in P. P. P. C income in the second half of the 2021, which May result in net interest margin being relatively flat or having small compression into next quarter.
We also expect to see continued improvement in our hotel motel and retail commercial real estate portfolios, which should keep our provision expense relatively low during the second half of the year and well below the levels, we posted last year.
We expect our loan production to accelerate in the second half of the year as.
As we typically see from a seasonality perspective, particularly as the economic recovery gains strength.
However, we have considerable headwinds challenging our growth first as I mentioned at the beginning of the presentation. The interest rate environment has significantly lowered demand for residential mortgage loan refinancings and the lack of housing inventory is impacting purchase.
As the originations.
These conditions I expect it to persist.
Through the rest of the year and as a result, both production of residential mortgages and warehouse line Utilizations are now expected to be below our budgeted projections for 2020.1 that we had at the beginning of the year.
And as a byproduct of the highly competitive lending environment.
Alex have trended higher than anticipated and we now expect they remain at higher levels through the end of the year in light of the fact that we have $260 million of first round PPP loans that we expect will be forgiven during the third and fourth.
Quarters of this year.
And while not originally budgeted for in 2021, we have resumed the sale of SBA 7 loans to the secondary market.
We completed a 119 million dollar loan sale of our higher risk criticized and classified hotel motel loans.
All in all we now expect flat to nominal net loan growth for 2021.
As the operating environment Normalizes, we believe that we will return to our usual high single digit loan growth next year 1.
1 of the reasons that we are confident in our ability to return to historical levels of loan growth is the success. We have had in attracting new banking talent to the company.
Since completing the M O E and becoming a larger regional bank 1 of our goals has been to recruit more bankers with experience and relationships outside of our historical Korean American markets, we have invested in products and services, including our Treasury management platform to them.
Constraint the Banco Pope has the tools and resources to effectively support the business development efforts of bankers with proven expertise in targeting small and middle market enterprises.
We have been very successful with our diversification initiatives, which has enabled us to build our corporate banking group and attract new teams that have provided deep expertise in large vertical markets, including more recently, the telecom and health care industries. This effort.
Has been has been a key factor in the growth of our commercial client base over the past few years and has been a major driver of the positive shift in the mix of our deposits and improve the diversification in our loan portfolio.
We continue to have a good pipeline of new banking talent.
We expect to have more additions over the second half of the year that will further strengthen our commercial banking capabilities and expertise in new areas continued to expand our market base and can contribute to the further diversification of our loan portfolio in the coming years.
It is a very competitive market for banking talent and we are very pleased that we have been able to build Banco pope's reputation as an attractive place from mainstream commercial bankers to build to continue building their careers.
While some of the headwinds to net loan growth I expect it to persist near term we have a robust pipeline that is supported by strong macroeconomic forecasts and we believe our success in executing on our strategic initiatives has positioned us well to deliver enhance.
Profitability for 'twenty, and 'twenty, 1 and create value for our shareholders in the future.
With that we would be happy to take your questions and add any additional color as requested operator, please open up the call.
Thank you we will now begin the question and answer session to ask a question you May Press Star then 1 on your Touchtone phone.
Youre using a speakerphone please pick up your handset before pressing the keys and to withdraw your question. Please press Star then 2 and at this time, we will pause momentarily to assemble our roster.
Yes.
And the first question will come from Matthew Clark with Piper Jaffray. Please go ahead.
Hey, good morning.
Hum.
Maybe first on the hotel loan sales.
Hum.
Wondering are there other plans to kind of further reduce your concentration in hotels and maybe even retail CRE I'm, just trying to get a sense for whether or not.
So those 2 portfolios might shrink over time.
True run off or.
Our potential sales or whether or not you're willing to start.
Start to.
Dip your toe in the water and grow those exposures going forward.
Matthew we are very closely monitoring.
The hotel motel and retail portfolio.
And we will remain prudent in managing the risk associated with.
These portfolios at acceptable levels.
In terms of additional sales of hotel motel loans.
You know there could be additional sales, but the additional sales would be 1 off determined on a case by case basis and I don't expect that we will have another sales of this large a volume.
Yeah.
Okay.
And then just on the C&I reserves down to 73 basis points can you give us a sense for what's driving that how much lower can that ratio go and what do you believe is the appropriate coverage longer term per C&I.
Yeah.
Sure. This is Peter.
The coverage on the C&I portfolio is reducing you know we are seeing a lot of our customers actually showing a lot of improvement.
We are able to substantiate that improvement due to this economic recovery I do anticipate that there could be further releases in that sense from the commercial C&I side in terms of where we end up I think that's still a little bit too early to tell but so.
So far I think everything is pointing in the right direction in that sense.
Okay, and then on the SBA gains or the premiums.
Associated with that line.
Line item.
It sounds like premiums.
Our healthy.
I don't think that's.
A big surprise, but.
As you get beyond <unk>.
You know October or the end of September and into next year I guess, how do you think about gain on sale premiums.
And that business when that enhanced government support goes away.
About 22.
We believe that the current SBA premium levels will sustain for the time being even after September.
When the governments.
Additional subsidy and we sell only the guaranteed portion of SBA loans.
And.
Looking at.
The excess liquidity in the market.
And the.
The few our investment opportunities.
SBA products is still you know will be a very attractive products to to invest and so we expect that premium levels will continue.
Continued to be high.
Okay and last 1 from the year and well into the next year.
Okay and then just last 1 just your thoughts on buying back your stock given where you're trading on tangible book is it still too early as you work through.
Some of this credit.
Or is it something you could consider.
Well based upon our current stock valuation in the market and our strong capital position.
We are very seriously considering capital deployment through share buyback in a very near future.
Okay. Thank you.
The next question will come from Chris Mcgratty with <unk>. Please go ahead.
Hey, Kevin how are you.
I wanted to follow up on Matts question, just on the buyback could you remember could you remind us.
What is under authorization.
What do you have to go through the approval process again, and also kind of how youre thinking about your binding ratio cause that because I agree the buyback at book value seems to be good news.
Well, we do not have any authorized amount at this time, but.
I don't think it is.
An issue.
And our board has always.
Had a share buyback as a consideration as part of our capital management strategy.
And as I said, the current our stock valuation in the market is so low.
I think this is a no brainer question for us.
Uh huh.
Okay.
And then in terms of the loan growth question.
Given some of the intentional strategies in the headwinds.
Some of your peers have bought.
Open market purchases of residential mortgages average duration is that.
I know that's been.
The rest of your book has been a portfolio of growth for you, but does that at all being considered to share.
Stemmed the decline in loan book near term.
Sure.
Or are we actually utilize our access to liquidity by purchasing.
Mortgage product I think $96 million will be purchased for this quarter.
Going forward as part of the access to liquidity strategy.
Actually it depends on our organic loan growth.
And I think and also utilization of our line usage.
More.
You as the mortgage loan purchase 1 of the vehicle too.
We manage our balance sheet effectively by reducing the excess cash that we currently have.
[laughter].
And then maybe if I could just sneak 1 in just to make sure I understand the guidance I'm quite 14 the loan growth.
The nominal that's on a reported basis, that's not excluding the PPP that right that's reported.
Well, so we expect the P. P P a.
Balanced to.
Reduce our year over year, so excluding PPP, we will have some modest growth.
But including E. P. P. I think it will be nominal.
Got it alright, thank you Kevin.
Okay.
Yeah.
The next question will come from Gary Tenner with D. A Davidson. Please go ahead.
Thanks, Good morning.
Just wanted to ask about the CRE originations in the quarter very strong certainly much more than last several quarters.
Can you talk about kind of the areas within CRE that you are seeing the production buffer.
Well we have.
Both CRE and C&I originations very strong in the second quarter and then in terms of CRE, we are really trying to focus on lower risk areas.
In the current environment like a multifamily gas stations and owner occupied investment prop.
Properties.
And other than warehouse line, our relationships I think we have.
A very stable.
Stable utilization.
Rates on other commercial lines.
And that also helped our a stronger originations in the second quarter.
And and our corporate banking.
Commercial line of business lines.
We have been.
Consistently performing well.
Including the second quarter of this year.
Okay. Thank you.
And in terms of the guidance for <unk>.
The gain on sale of loans.
Would you expect to have some degree of sale of single family as well. In addition to the planned SBA loan sales or should we assume for.
Modeling purposes that that's the only gain on sale, but youll be generating next couple of quarters.
Well gain on sale income would be primarily coming from sale of SBA loans and the level of gains will be similar to the ones that we reported for the second quarter at least for the third and fourth quarter. If that's what we expect and in.
Terms of gain on sale of our mortgage loans.
The first quarter number was a.
A lot higher than the second quarter number and we don't expect the number to increase at all.
If anything from the second quarter number.
Okay, Great and then just last question from me in terms of P. P T.
Could you give us the.
Average balances in the quarter.
For that loan segment as well as remaining fees to be recognized.
Sure.
The average balance for PPP for the second quarter was $662 million.
And the fee that we recognized for the second quarter was it.
Brokerage into like a 3 categories as you know.
<unk>.
Actually the fee itself.
To a category 1 forgiveness is and the second is just normal amortization on top of that are the ones that I was referring to coupon rate all this together.
We recognized $5.6 million.
Total income, we recognized and forgiveness related I think we discussed during the.
All year.
Paul.
About $1.8 million was recognized from only forgiven.
Loans.
Sorry, Alex the $5.6 million total included a 1% coupon.
Yes, 1 coupon is a $1.
And a normal amortization is up to $1 million and therefore, given this related is a $1.8 million, which in total is 2 to $5.6 million.
Great and just what the what is the remaining.
He's recognized from PPP.
Sure we have a total.
Kim point $6 million net E <unk>.
Remaining as of June 30.
Thank you very much.
Sure.
Again, if you have a question. Please press Star then 1 our next question will come from Steve Marcio <unk> with Capitol Securities Management. Please go ahead.
Hello, everyone. Congratulations on a good quarter just 2 quick questions. What do you anticipate the tax rate going forward for the second half of this year.
Moving will maintain itself between 24 and 25 per cent and then the second question is under what type of scenario.
Mike you potentially increase your dividend going down the road.
Yeah, Let me answer the task force on first.
We expect about 25% effective tax rate is the run rate for.
For the rest of the year.
And dividend related I think there is a number of moves.
Moving part or contributing factor for us to consider changing from the <unk> 10 cents per quarter.
Obviously, our earning power what should we expect.
Our credit quality is improving the provision for loan losses will smaller and as we have.
Higher income from the law and earning assets our quality of the earnings will get stronger so it was support for.
For <unk> or higher.
Dividend payout and also we do as Kevin mentioned, and then share repurchase is 1 of the.
Our consideration so it will be.
All of those things will be considered together, but I feel very comfortable maintaining <unk> 14 per share.
It is.
And our flow at near future.
Okay. Thank you.
Yeah.
This concludes our question and answer session I would like to turn the conference back over to management for any closing remarks. Please go ahead.
Thank you once again, thank you all for joining US today, we hope everyone stays safe and healthy and we look forward to speaking with you again next quarter, so long everyone.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Okay.
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