Q3 2021 Independent Bank Group Inc Earnings Call
[music].
Greetings and welcome to the independent Bank Group third quarter 2021 earnings call. At this time, all participants are in a listen only mode.
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It's now my pleasure to introduce Paul Langdale Executive Vice President corporate development and strategy. Thank you you may begin.
Good morning, everyone I am Paul Langdale Executive Vice President of corporate development and strategy for independent Bank group and I would like to welcome you to the independent Bank Group third quarter 2021 earnings call. We appreciate you joining us the related earnings press release, and the slide presentation can be accessed on our website at <unk> Dot com I would like to remind you that remarks made.
Today May include forward looking statements those statements are subject to risks and uncertainties that could cause actual and expected results to differ we intend such statements to be covered by safe Harbor provisions for forward looking statements. Please see page five of the text in the release or page two of the slide presentation for our Safe Harbor statement. All comments made during today's call are subject to that.
Please note that if we give guidance about future results that guidance is a statement of managements beliefs at the time. The statement is made and we assume no obligation to publicly update guidance in this call. We will discuss a number of financial measures considered to be non-GAAP under the SEC's rules reconciliations of these measures to the most directly comparable GAAP financial measures are included in our release.
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I'm joined this morning by David Brooks, our chairman and CEO, Dan Brooks, Our Vice Chairman and Michelle Hickox Executive Vice President and CFO at the end of their remarks, David will open the call to questions with that I'll turn it over to David.
Thanks, Paul Good morning, everyone and thanks for joining the call today.
For the third quarter, we reported EPS of $1 21 per share tangible book value of $34 79 per share and maintained healthy asset quality with net charge offs and zero for the quarter.
We are pleased to see the continuation of loan growth at about 5% for the quarter, which was consistent with our expectations of a slower summer being followed by accelerating demand into the fall Likewise deposit growth remained strong at 12, 1% annualized for the quarter further bolstering our liquidity position and increasing our optionality.
And managing the funding costs.
During the quarter, we also repurchased a total of 217772 shares of our common stock at an average price of $69 80 per share.
This is consistent with our longstanding commitment to return capital and deliver returns to our shareholders with that overview I'll now turn the call over to Michele for more detail.
On the operating results for the quarter.
Thank you David and good morning, everyone note that slide six shows selected financial data for the quarter.
Third quarter adjusted net income was $52 6 million or $1 22 per diluted share compared with $59 6 million or $1 38 per diluted share for the third quarter last year, and $58 2 million or $1 35 per diluted share for the linked quarter.
Net interest income was $128 6 million in the third quarter compared to $132 million in the third quarter last year and down slightly from $129 $3 million in the linked quarter.
Accretion income was down $1 $2 million from the linked quarter and $3 2 million from the prior year and totaled $4 million in Q3.
P. P. P fees were also lower at $4 million in Q3 versus $5 1 million in Q2.
These decreases were partially offset by interest income on growth in the securities portfolio and interest bearing cash.
There are approximately $6 5 million of deferred P. P. P fees remaining to be recognized and we expect 75% of that will be recognized in Q4 the.
The NIM, excluding accretion was $2 nine 1% down 11 basis points from the linked quarter. The decrease is primarily due to continued increases in liquidity, which impacted the margin by seven basis points.
Total noninterest income was $16 9 million for the third quarter, an increase of 970000 compared to the linked quarter. The increase in noninterest income over the linked quarter is primarily due to an increase of 745000 in mortgage banking revenue.
Noninterest expense totaled $80 6 million for the third quarter, an increase of $2 $6 million over the linked quarter.
This was driven by increases of $2 7 million in salary and benefit expense.
This quarter includes unusually high expense for senior staff, signing bonuses as well as bonuses paid to employees that have leaned in on P. P T.
Contract Labor increased 550000 from Q2 due to the initiation of several infrastructure projects. In addition, deferred loan costs were down 890000 from Q2.
As loan volume picks up we would expect this to return to a normal run rate.
<unk> expenses should decrease significantly in Q4 with only a small impact expected in 2022.
Slide 19 shows our deposit mix and cost total deposits were $15 5 billion as of quarter end with total noninterest bearing deposits by $279 $1 million from the linked quarter and $726 4 million from the third quarter of 2020.
Interest bearing deposit costs decreased from 45 basis points in Q2 to 40 basis points in Q3.
With a sustained growth in our core deposits, we continue to evaluate and pursue opportunities to optimize our funding costs where appropriate.
Capital ratios are presented on slide 21 in the third quarter. The company's consolidated capital ratios remained strong with a common equity tier one capital ratio of 11, 6% and a total capital ratio of $13, 64%.
As David mentioned, we repurchased $15 2 million or about 218000 shares of our common stock during the quarter. In addition to the redemption of a $40 million tranche of 575% subordinated debt.
That concludes my comments. This morning, so I will turn it over to Dan to discuss the loan portfolio.
Thanks Michelle.
Loans held for investment excluding mortgage warehouse purchase loans were 11.5.
Billion at quarter end compared to $11 6 billion in the linked quarter.
Excluding the impact of PPP loans core loans held for investment increased by $129 $7 million over the linked quarter.
Loan growth continues to be driven by broad based relationship lending to our customers across Texas and Colorado.
PPP loans on balance sheet totaled $243 9 million at quarter end down from $495 million in the linked quarter.
For the quarter, but remained near the second quarter average balances of $855 million.
Credit quality metrics continue to remain strong overall.
Total nonperforming assets increased to $82 8 million or 44% of total assets at quarter end, which was due primarily to the addition of two commercial relationships totaling $17 8 million and one commercial real estate loans totaling $11 7 million.
There were nearly zero net charge offs for the third quarter.
At September 32021, the allowance for credit losses on loans is $153 million.
Or 134% of loans held for investment excluding PPP in mortgage warehouse loans.
These are all the comments I have related to the loan portfolio. This morning, so with that I'll turn it back over to David.
Thanks, Dan.
We remain encouraged by the loan growth prospects into the fourth quarter and our pipelines continued to be supported by strong demand from relationship borrowers across our footprint.
We're also encouraged by the momentum building from the new hires we have made over the past year, especially when it comes to growing our middle market C&I business.
In addition to this organic growth trajectory.
To invest in our infrastructure to ensure we are well positioned to capitalize on strategic M&A opportunities when they present themselves.
We have expanded our executive leadership team to include John turbine as Chief Risk Officer, and we're pleased to announce promotion of Michael hubs to President and Chief operating officer.
These additions deepen our executive leadership team in preparation for continued growth into the future.
The Texas and Colorado economies remain two of the most attractive markets in the country and our teams of bankers continue the disciplined approach of winning new basins.
And expanding existing relationships each day.
I am grateful to all our employees for their tireless dedication to our customers and communities and I remain excited for the opportunities we see on the road ahead.
Thank you for taking the time to join US today, we'll now open the line to questions operator.
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Okay.
Our first questions come from the line of Michael Young with true of Securities. Please proceed with your questions.
Hey, good morning, everyone.
Good morning, Michael.
Wanted to just start off on the loan growth side.
You mentioned that some of it was a little slower, but curious what you're seeing now as we kind of head into the fall and would you expect.
Higher growth in the fourth quarter to kind of get you to that high single digit level that you talked about maybe in the back half just any updated thoughts or color around pipeline all of that would be helpful.
Sure.
If you look at our second quarter growth Michael around 12. This quarter on five that was production was pretty close in the third quarter to what it was in the second quarter.
But we had.
The significant pick up in pay downs and again that's just.
Happened cyclical gains it's hard to predict.
But that said the pipeline looks really good for the fourth quarter.
So far if you've grown 17% in last two quarters.
Which average weight in half and I think something like that 8% or so is what we're expecting and then depending on the payoff levels.
It could vary a little from there, but we're still thinking high single digits and in the.
<unk>.
In the fourth quarter, which would get us for Q2, three and four on average at 8% or better.
Okay. Thanks, David Thats helpful and maybe one for Michelle just on expenses.
You called out the higher PPP related.
Fences and then some of the onetime senior management moves during the quarter. So should we expect some of that to point to.
$2 5 million or so to come back out so we're closer to maybe $78 $75 million run rate from here.
Yes, I think in the fourth quarter, Michael we're going to have about $1 3 million of TPP expenses come out of the run rate.
Did have unusually high bonus expense related to some senior positions we added but.
I wouldn't say pull that out at this point just because we are continuing to add people in the end of the year. It makes a little more difficult to bring people on without paying signing bonuses. So I think I would say closer to $79 million for fourth quarter.
Okay, great. Thanks, I'll hop back.
Thanks, Mike.
Thank you. Our next question is come from the line of Brad Millsaps with Piper Sandler. Please proceed with your questions.
Hey, good morning.
Hey, good morning, Brett.
David or Dan I was just curious if you guys could talk about the new loans that are coming on the books kind of you know what.
Rates Youre seeing in terms of new loan generation and then maybe as a follow up for Michelle.
We were too high.
Get an increase in the fed funds rate later next year.
What do you think <unk> leverage would be two.
$25 50 to 75 basis points higher fed funds rate in terms of the margin.
Brad This is David let me start out saying that.
One a day.
One of our takeaways from the quarter was that the.
Pricing pressure.
The new loans coming almost a little more significant than we felt like than what we'd seen earlier in the year.
And so that affected our <unk>.
Yields are a little more than we expected as well so we're seeing things in your view from three 5% to 4% of the broad range, but whereas I felt like early in the year on balance sheet, we're booking loans in the upper threes and <unk>.
Right.
Down 10 to 20 basis points from that of what the book that you're putting on in the third quarter, Dan can give any additional color there.
No I don't have any additional color there.
So that's kind of what I think on the loan yields Brad just a little tougher sledding in and maybe a little more headwind there than we'd expected, but so I think as it relates to your question about NIM Brad. The real question is with all the liquidity in the market you know how much fed funds increases is going to impact longer term rates.
And I'm not sure.
We are currently more asset sensitive than we have been since I've been here and maybe the history of the bank and we will benefit from FX and increase but I'm really not sure how much that will impact longer term rates at least in the next year just given the liquidity in the market.
Michelle that's helpful would you anticipate with long rates up a bit here would you anticipate you guys getting more aggressive in.
Adding to the bond portfolio with with some of your liquidity that you've got I mean, I think on average it was approaching 3 billion in the quarter.
And we expect it to be over $2 billion by the end of this year. So we continue to put money in the bond portfolio, especially considering that we continue to see deposits come in and liquidity is growing on our balance sheet.
And I think we will continue to do that into 'twenty two as long as it makes sense and you know to offset.
On growth it really doesn't make sense to leave that money, sending it fed earning eight basis points.
I guess I'm more convinced now that the liquidity is going to stick around maybe longer than I thought a year ago.
And to be clear you expect liquidity to be closer to $2 billion of the bond portfolio to be closer to $2 billion.
Bond portfolio will be a little over $2 billion at the end of the year and then I expect that we will continue to grow it through 'twenty two relative to the balance sheet.
Got it helpful. Okay, and then just final question from me just curious Dan could offer any more color on the.
On the three loans that went to non accrual this quarter just.
Any sense for.
Loan to values, there <unk> any kind of theme just any other color that might give us a sense of kind of what how you guys are thinking about maybe loss rates of resolution there.
Yes, I think Brad.
In the normal course of resolving credits.
Some cases, you'll have.
Pay off another youll see an upgrade and in some cases, they will actually migrate into the non accrual category because there are longer resolution.
I would say the credits that migrated in the third quarter were not unusual in any regard.
With material equity in them and so our expectation is that that.
There would not be any loss exposure was not accounted for in seasonal.
Notably those loans were already on the classified loan list.
In total when you take all of the non accruals that number remains at a low level really.
Thank you. Our next question is come from the line of Brady Gailey with <unk>. Please proceed with your questions.
Hey, Thank you good morning, guys.
Morning Blake.
So I just wanted to start on the buyback it was good to see your that'd be a little active there in the quarter.
You bought it back at basically two times tangible book value on our stock.
It's higher than that today, so how do you think about.
<unk> to buybacks from here.
Okay.
Brady, we're going to continue to look.
For opportunities to buy our stock back and.
Given that the.
The M&A activity has been slower than we expected.
Given that we continue to accumulate capital.
More quickly than you were able key to load the bank. If you will more quickly than we need to support the growth of the bank. So I would say that in.
We're going to continue to do that.
We have a board meeting later in the week. So we're not you know the board will decide the dividend later in the week, but we're going to continue to look at opportunities.
To get back and we're going to continue to be active and opportunistic in.
You can just depending on how the stocks trading.
Alright.
And then on the energy front I know energy lending is not a big piece of what you guys do I mean, it's still.
Still only 2% of loans.
It is up I don't know $80 million in the last couple of quarters, It's gone from.
$202 40 to get them out to 80.
Should we think about the energy portfolio kind of continuing to expand at a pretty nice clip here.
I think Brady this is Dan.
I would view that as just a continuation of the efforts that we've applied with our team that was added a couple of years ago.
It came out of one of our peer banks.
And they've had opportunity really to get engaged in significant.
<unk>.
Great credits that have afforded us the opportunity to be a part of those I think we will continue to see some growth in there I don't think it'll be outsized I think it'll be comparable to what we've seen as those opportunities present themselves to us. So there will be some growth I don't think I would.
Consider that to be any acceleration of that growth.
Okay.
And then finally for me David just on M&A, you just mentioned that's been a little slower.
Then maybe you guys had thought.
<unk>.
We saw a big splash of a deal with with Johnny Allison by them, but happy you know, which I thought may have been a good deal for you all just doing all the excess funding that.
<unk>.
Independent and then maybe just a general update on M&A, what why do you think that's been slower and you know do you guys remain remain active and chasing targets.
I would say.
This way Brady, we remain active in engaging relationships with smaller banks.
We admire that are in our footprint that are you in higher growth markets.
That's one of the challenges if you if you acquire a large to your balance sheet.
Your footprint that's not in a growth market, then you really I think limit.
Sure.
Growth opportunities going forward.
Liquidity is important core deposits are critically important but.
As Michelle mentioned, we you know we've been we think it felt like Youre being aggressive this year in ad.
Adding to our bond portfolio, our loan growth is return to more historic levels and we're still we're still sitting on $3 billion of liquidity.
We came into the year, hoping that we could deploy that and get that down to it you need to do a lesser number.
It Hasnt happened so that gives us an opportunity as well to think about the funding side of the balance sheet and.
And can we think he can do to improve our cost of funds and so we're looking at all of those so evaluating all those opportunities and so I would.
Yes, certainly acquisitions have been a part of our of our track record we continue to be interested in growing.
But our focus has been as we've talked about this morning on organic growth on really.
Digging in infrastructure and making sure that we position the company to be in great shape, but whenever that next opportunity comes along.
And so that's really been our focus and our focus of our time and of our noninterest expenses.
Okay got it thanks guys.
Thanks, Greg.
Thank you. Our next question is coming from the line of Brett Robertson with hub Group. Please proceed with your question.
Hey, good morning, David Michelle.
Good morning.
Wanted to go back to the Securities portfolio question, Michel and just talking about you mentioned that it would be 2 billion by the end of the year was curious what you had bought.
During <unk> and then what's your what Youre looking at and what you how you think that might impact.
The bond portfolio yield them, and then kind of as it relates to that it would seem like your margin would actually.
Potentially move off if you're deploying excess liquidity, that's yielding 10 basis points to something north of 1%.
On that as well.
That is true if we can finally get ahead of the liquidity right.
Our bond portfolio is very conservative Fred we continue to buy mortgage backs agencies I think we even bought some treasuries this quarter and generally those yields have been averaging one clarity.
So I think the current yield on our portfolio sits a little less than 2%. So it has turned it down.
And this year, but as you say it is a lot better than the eight basis points that we can earn a fan.
Okay.
Any thoughts on the margin potentially.
At least having some offset to lower loan yield production going forward.
I'm kind of got out of the business of predicting the margin.
Yes, it might be wrong, all year long and that's continued to push it down and as David said we are.
We're continuing to look at ways that we could possibly continue to push our cost of funds down.
If we could redeploy that liquidity, even in the investment portfolio that would be an offset or even better really be deploying it into loans. So I think I think there is some upside, but I'm not going to predict that the margin is going to increase at this point.
Fair enough I know, it's I know, it's been hard to predict with liquidity rising.
The other thing I was curious about.
I'm sorry go ahead, I'm, sorry, when I always continue to emphasize is that we're just looking at ways to grow rather than focusing on margin looking at ways to grow net interest income.
Right and then letting the margin work itself out.
Okay.
And then David you gave an outlook for the fourth quarter around loan growth I guess, one of the things I was curious about was the.
Increase in the unfunded commitment reserve of $6, one versus $1 seven in the prior quarter for construction and energy and so I'm curious as we think about 2022.
Seem like construction could be a category that grows.
Any thoughts on where the portfolio might be growing more from here or is it construction as it might have been wanting to grow C&I and work what are the buckets that you think you'll have more growth as we go into next year.
My suspicion Brett is that we're going to.
See a balance continued.
Balancing the growth that we're seeing is really not one area that we're focused on where we're seeing more opportunities or certainly a lot of construction going on in Denver, and Colorado front range and all of our Texas markets.
Bye.
<unk> deep dive around there are lot of cranes and things. So construction is a part of what we're seeing but I don't I don't think of it as being dominant but I'd say the biggest change if there is a change in our mix is C&I.
It's really a P.
Looking up and kicking in and the people we've hired great teams that we've hired across.
Taxes, and adding to our team in Colorado.
Are really getting some traction and we expect that to be a big part of what we see in.
<unk> fourth quarter and really in 'twenty, two and beyond.
Strong growth there and then it really just what we've always done well which is.
Strong will stay in and.
Small business lending and medical practice lending and all of those things that we've done well in the real estate really across the board Mckinney because of our airport here as an example, we're seeing tremendous industrial growth out by the airport.
Our new Amazon facility, there and our.
People opting to dig.
Digs through Mckinney.
Youre, indicating airport as opposed to DFW or love field. So those are just some of the you know.
A little bit of color behind what we're seeing but good balance across the portfolio on growth.
Okay.
I appreciate the color there and then maybe just the last thing around the mortgage warehouse, but assume that seasonality plays its usual impact in the fourth quarter.
Any sense of the magnitude that youre looking at in terms of.
How that might play out.
At year out with seasonality you could see their average balances dropped a bit and I think they've done a good job of adding some new customers and so we still think that $800 million averages for this quarter.
Okay.
Great I appreciate all the color.
That's correct.
Thank you as a reminder, if you would like to ask a question. Please press star one on your telephone keypad.
Our next questions come from the line of Matt Olney with Stephens. Please proceed with your questions.
Hey, good morning, Thanks, guys wanted to just.
Nick on the mortgage warehouse discussion.
David You mentioned some comments about.
Loan yield pressure in the third quarter versus the first half of the year I assume that was more on traditional commercial loans.
And if so any comments about the warehouse.
Pressure thanks.
Yes, My comments were more based upon our traditional commercial loan strategy I do think there's been a lot of competition in the mortgage warehouse that Michelle.
Do you have a handle on their yields compared yeah, I think they've come down a bit from the beginning of the year, but I don't know that it's that significant.
Okay.
And then.
Michelle circling back to the commentary about the investment securities portfolio, and maybe adding some some some more balance in the fourth quarter.
Right now investment securities around 10% of earning assets any more color as far as the tolerance of where this could go as we move into 2022.
Yeah.
We don't really have an <unk>.
Limit I think historically that balance is right around 7% of our balance sheet, just because we've had such a high loan to deposit ratio.
We'll just we'll continue to evaluate that Matt and fit.
Any excess liquidity in there to offset the land grab so.
It could grow to two and a half billion by the end of next year, but really we'll evaluate that as the air goes along.
Yep understood. Thank you and then I guess my last question is around the.
Allowance ratio I think we're now at.
134, once I strip out the warehouse and PPP just trying to appreciate where this could go I think the original.
Seasonal adoption, along with turnaround of 137 ish.
That did include a baby at PCB, Mark So how should we think about that reserve ratio of next few quarters.
Yes.
Matt.
Our take on it is we've been saying is that it will grow in two at our asset quality trends Gam can share some of that here in a moment, but our asset quality trends and I think it will be a tailwind and then the the economic factors that go into the model, we're going to be a tailwind we think in 'twenty two so.
As we look out at the loan growth rates, we're looking at with the information we have today.
Not expecting to take the material.
Loan loss provision even in 'twenty two.
And so depending on your assumption for loan growth, we think loan growth in 2002 of seven 8%.
Core loan growth.
In 'twenty, two and when you factor all that out.
The loan loss, we here certainly will.
The ratio will drift down Dan any comments you got on the tailwind in <unk>.
But you know.
We certainly don't think we're going to be $1 34, and so we're gonna be willing to let that drift down I don't we haven't talked about.
A lower limit, but obviously that is going to do.
Look the CECO model and comply with whatever the results are as all the banks are doing.
So Dan any comments on that or yes, I would just add I think book.
As David said the growth will.
Naturally bring that down some but we don't expect it to change a great deal in the course of the next year I did want to circle back on the asset quality side I think the bigger picture here.
A couple of credits that were downgraded to nonperforming in the quarter is the strength of the asset quality here.
Overall remains very strong we indicated.
2020.
Mid year that we expected the portfolio to perform very well.
During the course of the recession and we.
We did expect some grade migration that would be attributable to the deferrals dependent that is in fact, what we saw in 2020 and then earlier. This year. We also said that we expected improvement in grades in the back half of this year.
That is exactly what we've seen.
Criticized and classified loans have steadily declined each of the last three quarters from payoffs and upgrades.
More in process.
For the next few quarters and in fact, we had a 15% decrease in criticized loans and in Q3 alone.
Overall, the non accrual portfolio.
We still expect several of those to resolve in the next few quarters with either no losses or any potential loss exposure already accounted for in the seasonal reserve. So as David indicated we don't expect any material.
<unk> or provisions to be made especially weak.
Tailwind.
Proving economy.
Okay, great. Thanks, guys.
Thanks, Matt.
Thank you. Our next question is coming from the line of Brett rabbits with hub group. Please proceed with your questions.
Hey, David I, just had one follow up around talent and you're talking about doing some hiring.
Obviously at the senior management level and doing some infrastructure Bill can you can you maybe give us any color on on how many lenders you have added this quarter this year relative to the existing.
Production.
Base, and how you're thinking about that maybe going forward as well.
Yeah, Brett I actually don't have an updated number there has been activity and continuing activity weekly on that but we've had hired a material number of mi.
Middle market C&I lenders.
Our team in Texas has expanded to continue to expand and we've added to our teams in Houston.
In Dallas Fort worth in Denver, Colorado, a number of new team members there as well so.
I am sorry, I don't have a number we can get that back to you, but exactly what that what our net what our gross hires and what our net hires are for the year.
But it's material and as part of the reason why we're continue to be encouraged about our blade, even as we even as we focus on the infrastructure and.
And making sure that we have our back of house in order as well.
Okay.
Thanks for that David.
Thanks, Greg.
Thank you. Our next question is coming from the line of Michael Young with true with Securities. Please proceed with your questions.
Hey, Thanks for the follow up just wanted to ask on the residential real estate.
Portfolio.
Been sort of a trading or running off here over the last year, maybe plus a little bit any just general thoughts on that just a duration risk.
Kind of concern or could we expect that book to sort of flatten out or start to grow at any point in 2022, just thoughts around that would be helpful.
I'll take that one Michael this is Dan.
The.
As you would expect with the rates down we certainly saw some refinances out which is why I think you've seen it decrease somewhat there.
On the other side, we would expect to continue to.
Both of those as we have historically and I think the overall the balance of that portfolio should remain pretty flat.
As we move forward.
In the normal course, because of us providing mortgages to.
Our customers that we know.
They will acquire and then ultimately from time to time sell them or refinance them. So the refinances may slow, but I expect that we won't see a big change in that portfolio.
Balance as we move forward, there's been a little bit of headwind Michael on in that particular portfolio. We had when we purchased Guaranty bank in Colorado They had.
Our relationship with the mortgage company there that they had taken a lot of larger.
Single family loans and.
We didn't continue that relationship because we have our own mortgage entity and so a lot of those loans as time went by and refinanced out and so that created some headwind in that portfolio I think as Dan said, we expect it to level out and certainly we'll be opportunistic.
The ways to grow it a little bit, but that's not going to be.
Big part of our growth engine, but we also don't expect it to be a lot of headwind.
Okay really helpful.
Michele just as I look at expenses for 2020 to kind of know the normal cadence and kind of growth rate that <unk> experienced in the past, but obviously inflation potentially as a risk factor to the expense picture have you guys done any early work on that or any thoughts high level, just kind of on what that could mean probably bts.
Yes, we are actually in the process of finalizing our budget for next year right now, but I think for your purposes and 3% over total for the year 'twenty one expenses, it's probably a good place to start.
Okay, great. Thanks, I appreciate the follow ups.
Thanks, Mike.
Thank you there are no further questions at this time I would like to turn the call back over to David Brooks for any closing remarks.
Thank you.
Appreciate your time this morning, and look forward to getting back out on the road and <unk>.
Install and particularly next spring and look forward to seeing you are sitting down around the table similar thank you for your time.
Thank you for your participation. This does conclude today's teleconference. You may disconnect your lines at this time.
Have a great day.