Q1 2022 Financial Institutions Inc Earnings Call
Providing prepared comments will be president and CEO , Marty Birmingham and CFO Jacques <unk>.
Community Banking officer, Jessica <unk> director of financial planning and analysis, Mike Grubhub will join us for Q&A.
Today's prepared comments and Q&A will include forward looking statements actual results may differ materially from forward looking statements due to a variety of risks uncertainties and other factors.
Refer you to yesterday's earnings release, and historical SEC filings available on our Investor Relations website for a safe Harbor description and a detailed discussion of the risk factors relating to forward looking statements.
We'll also discuss certain non-GAAP financial measures intended to supplement and not substitute for comparable GAAP measures.
Reconciliations of these measures to GAAP financial measures were provided in the earnings release filed as an exhibit to form 8-K. Please.
Please note that this call includes information that may only be accurate as of today's date April 28, 2022, I will now turn the call over to President and CEO Marty Birmingham.
Thank you Shelly.
Good morning, and welcome to our first quarter earnings call.
Our positive momentum from 2021 continued and we delivered another quarter of very solid results with net income of $15 million or <unk> 93 per diluted share.
These results were lower than the linked and prior year quarters, primarily as a result of a more normalized operating environment.
And some of the unique impacts of the pandemic environment moderated we.
We recorded a more typical level of provision for credit losses. After four straight quarters of benefit and recognized lower revenues related to the Triple T program.
Pre tax pre provision income was $20 7 million a $1 9 million decrease from the fourth quarter of 2021, and a $3 3 million decrease from the first quarter 2021.
The declines were largely the result of lower Triple T revenues totaling $1 1 million this quarter down from $2 8 million and $3 6 million in the fourth and first quarters of last year, respectively.
In the first quarter of 2022, we announced our first commercial expansion outside of our operating footprint.
John Megan was named senior Vice President commercial real estate executive and mid Atlantic President.
And he leaves three commercial real estate relationship managers, and the Baltimore and Washington D. C region for five Star Bank.
Consolidation within the Baltimore and DC financial services sector created an opening for us to capitalize on opportunities where our community banking approach provides a competitive advantage.
Our mid Atlantic team of four commercial banking officers started with five star in mid February .
And they have been working diligently to build a strong loan pipeline.
We look forward to establishing the five star brand in this new market and becoming a strong partner for the communities there.
Our strong track record of credit disciplined loan growth and while defining strategic and risk frameworks give us confidence in the <unk>.
<unk> positive outcomes of this exciting expansion beyond our operating footprint.
We continue to leverage available talent to expand our commercial platform through the recruitment of commercial professionals and are also considering the establishment of other loan production offices and viable markets outside of our existing footprint.
During the first quarter.
Total loans grew $54 million or one 5% from December 31.
Commercial business decreased 2% commercial mortgage increased 2% residential real estate loans were relatively flat and consumer indirect was up 5%.
Excluding the impact of PPP loans, the commercial business portfolio grew 2% and total loans were up two 2%.
Triple T loan forgiveness continued in the quarter and Outstandings decreased from $55 million at year end to.
To 31 million at March 31.
We are seeing an increase in commercial credit line utilization driven by opportunistic buying of inventory by customers to deal with supply chain constraints.
Our commercial real estate pipeline remains robust.
We worked with known quality sponsors and Theyre presenting high quality viable projects.
While developers are facing cost increases for materials and extended delivery dates they continue to demonstrate the ability to manage these incremental expenses, while maintaining acceptable underlying cash flow of projects.
And residential real estate first mortgage volumes are down.
We are seeing an uptick in the home equity category.
We are also experiencing compressed spreads in the secondary market gain on sale putting pressure on revenue.
We continue to invest in both the back office and frontline sales force of this key line of business focusing on operational efficiencies.
Growth in our consumer indirect auto portfolio continued in the quarter as we benefited from high auto valuation.
Good access to quality credits through our dealer network of more than 500 franchise, new auto dealerships and strong credit discipline.
This asset class provides the opportunity to deploy excess liquidity into loan category with short duration strong credit performance and comparatively higher yield characteristics in the current environment.
The indirect auto line of business remains a core competency for us and we have a demonstrated track record of consistent performance through economic expansions recessions and stagnation.
The allowance for credit losses on loans to total loans was 110 basis points at quarter end up two basis points from December 31, due primarily to an increase in qualitative factors, reflecting economic uncertainty associated with higher interest rates.
And global political unrest.
The increase in qualitative factors was partially offset by continued low levels of net charge offs at.
787000, or nine basis points this quarter.
Favorable national unemployment and reduction in our overall specific reserve levels.
Overall portfolio credit performance continues to demonstrate stability with a low level of nonperforming assets at $9 6 million.
It's now my pleasure to turn the call over to Jack for additional details on our results and an update on 2022 guidance Jack.
Thank you Marty and good morning, everyone.
I'll begin by providing commentary on our performance in key areas with comparison to the fourth quarter of 2021.
Net interest income was $39 $6 million.
One $3 million lower than the linked quarter, primarily as a result of lower revenue in connection with Triple P loans.
Approximately $25 million and $64 million of Triple P loans are forgiven in the first quarter of 2022 in the fourth quarter of 2021, respectively.
Weighted fee accretion of $970000 in the first quarter as compared to $2 $6 million in the linked quarter.
Ultimately $1 million in the 2020 vintage bonds and $31 million of the 2021 vintage loans remain on the balance sheet at quarter end.
NIM on a fully taxable equivalent or FTE basis for the first quarter of 2022 was 311 basis points.
<unk> four basis points from the linked quarter and down 18 basis points from the first quarter of 2021.
Both triple P and excess liquidity continued to impact NIM.
Given the lower level of remaining Triple P loans outstanding and associated forgiveness, there was a $1 $7 million reduction in triple T interest and fees on a linked quarter basis.
Resulting in an 11 basis point reduction in NIM.
Partly offsetting the triple T impacts was a significant reduction in short term interest, earning deposits of $104 million, which resulted in approximately six basis points of NIM expansion in the current quarter.
We continue to experience a stable level of cash flow on our investment securities portfolio, which is primarily comprised of mortgage backed securities with low to moderate duration.
These securities provide ongoing cash flow that is generated incremental yield over federal reserve balances.
Cash flow from the portfolio allowed for reinvestment in the loans or additional investment securities with rates of increase.
Our cost of funds was flat at 22 basis points in the current quarter as compared to the linked quarter.
Noninterest income of $11 $3 million was 352000 lower than the fourth quarter.
Revenue categories, the largest changes quarter over quarter were as follows.
Insurance income was 754000 higher primarily as a result of the timing and level of contingent revenue received in the first quarter each year.
Combined with growth in the commercial lines business.
Income from limited partnerships was up 501000.
Just on the activity and performance of underlying investments.
We experienced a net loss on the sale of residential mortgage loans of $91000 compared to a net gain of 482000 in the previous quarter.
Sales volumes and margins have moderated substantially in 2022.
And we incurred a loss in the first quarter due to the current fair market value of pipeline commitments.
These losses will be recovered when the loans are sold.
Income from derivative instruments was down $516 based on the number and value of transactions and the impact of changes in fair market value.
Noninterest expense was $238000 higher than the linked quarter, primarily as a result of higher salaries and employee benefits driven by investments in personnel annual merit increases promotions.
And the impact of higher payroll taxes incurred in the first quarter each year.
Income tax expense was $3 4 million in the quarter representing.
Representing an effective tax rate of 18, 7%.
Third to $4 2 million and an effective tax rate of 17, 7% in the fourth quarter of 2021.
Accumulated other comprehensive income decreased by $54 million in the quarter driven by an increase in unrealized loss position of our available for sale securities portfolio.
Intermediate maturities of the treasury curve negatively impacted the market valuation of our investment portfolio due to its five year duration.
We do not consider any component of this portfolio to be impaired because it is primarily comprised of agency rapt mortgage backed securities that are implicitly and explicitly guaranteed by the U S government.
The unrealized loss position does not impact our forward earnings metrics as we expect these securities to mature at a terminal value equivalent to par.
As these securities roll down the curve, we continue to redeploy cash flow into the loan portfolio or current coupon bonds.
The decline in OCI negatively impacted our TCE ratio by 97 basis points intangible common book value per share by $3 52.
The accounting driving this impact is short term given the high quality of our investment portfolio.
Over time, we expect our TCE ratio and tangible common book value per share to return to prior levels.
We provided slides in our investor presentation.
Available on the Investor Relations website.
That show the various components of the quarterly change in both of these measures.
I'll now take a few minutes to provide our current outlook for 2022 key areas.
We continue to expect mid to high single digit growth in our total loan portfolio with.
With commercial and indirect loan categories driving this growth.
Guidance assumes that forgiveness or repayment of the majority of the remaining $31 million of Triple P loans during the next two quarters.
We continue to plan for low single digit growth in nonpublic deposits.
We are focused on attracting new consumer and commercial deposit accounts and expect the positive impact of these new accounts to be partially offset by an expected decline in the average balance per account.
Reciprocal and public deposits are projected to be relatively flat consistent with our experience in the first quarter.
We are increasing the top end of our guidance range for our full year NIM by seven basis points.
The range is now 305 to 317 basis points excluding.
Excluding the impact of Triple T activity.
There will continue to be noise in our NIM relative to triple B forgiveness, although muted relative to 2021.
So we continue to guide on NIM, excluding Triple T.
NIM guidance reflects the increase in the fed funds rate that occurred mid March.
As a reminder, we are guiding them using a spot rate forecast, which was recalibrated with the spot rates as of $3 31.
We do expect further interest rate increases however, the number and magnitude are difficult to predict.
We continue to expect a higher investment securities portfolio due to carryover from our 2021 excess liquidity position.
Which will put pressure on NIM in the first half of 2022, as we deploy liquidity from the investment portfolio into loans.
Guidance also reflects our historical experience for deposit betas that range from zero to 30% for non maturity deposits.
As a reminder, our NIM fluctuate from quarter to quarter due to the seasonality of public deposits and its impact on both our earning asset and funding mix.
In quarters, where our average public deposit balances are higher due to seasonal inflows.
The second and fourth quarters.
Our earning asset yields are lower given the short term duration of the deposits and limited opportunities to invest the funds.
Our balance sheet remains relatively neutral.
We saw a modest level of NIM compression in the first quarter as expected.
The lower level of Triple peer revenue.
We expect NIM to expand throughout the remainder of the year, if the current rate environment persists.
Approximately 35% of our loan portfolio, excluding triple P.
This index to variable interest rates.
We maintain our projection of low single digit growth in noninterest income excluding.
Excluding gains on investment Securities and noninterest income categories that are difficult to predict such as limited partnership income.
We also expect continued pressure on mortgage banking revenue as a result of lower anticipated refinance activity.
And tightening of gain on sales spreads due to the interest rate environment.
We continue to expect an increase in the mid single digit range for noninterest expense, which is expected to range from $31 million to $32 million per quarter.
<unk> expense was lower than guidance due to the timing of certain projects and initiatives that were deferred to the second quarter.
Our spend in 2022 includes investments in strategic initiatives, including further enhancements to our new customer relationship management solution Digi.
Banking and banking as a service.
We expect these investments to begin producing incremental revenue in 2022, however, full benefits are likely to be realized over the coming years.
Our expectations for efficiency ratio remained the same.
Within a range of 59% to 60% for the year.
2022 efficiency ratio is impacted by upfront costs associated with our aforementioned investments in strategic initiatives that we expect to recoup in later periods.
Driving our expectation for improvement in future efficiency ratio.
We continue to anticipate that the 2022 effective tax rate will fall within a range of 19% to 20%.
Most likely towards the low end of the range given the first quarter results.
Guidance includes the impact of the amortization of tax credit investments placed in service in recent years.
We continue to evaluate tax credit opportunities and our effective tax rate would be positively impacted by taking advantage of further investment opportunities.
We expect net charge offs to remain within our annual historical range of approximately 35 to 40 basis points.
Although first quarter net charge off activity remained benign similar to our experience in 2021.
Our overall focus includes executing on strategic initiatives that will improve profitability and operating leverage over time.
We believe that achieving results in line with the guidance provided we will drive these outcomes.
That concludes my prepared remarks, I'll now turn the call back to Marty.
Thank you Jack we completed our stock repurchase program in the first quarter of 2022.
During 2021, and 2022, we repurchased about 802000 shares or 5% of shares outstanding.
At an average price of $29 63 per share.
Our buyback strategy allowed us to efficiently deploy capital in a scenario with a short term earn back period of less than two years.
We remain focused on efficient and optimal capital allocation and deployment.
In February our board increased the common stock dividend by seven 4% to 29 cents per share per quarter or $1 16 per share annualized.
This was the company's 12th consecutive annual dividend increase demonstrating our ongoing commitment to shareholder return.
As I commented in the earnings press release, we continue to make thoughtful investments in people process and technology to advance our digital strategy.
Our digital strategy delivers meaningful differentiated experiences for our customers.
It drives operational efficiencies and create new revenue opportunities through banking as a service, we are making investments and building partnerships that identify and take advantage of opportunities to set us apart and drive growth.
We are adding offerings to our pipeline for bank customers and potential bass clients.
During the fourth quarter call I talked about these efforts in a few initiatives underway and I'd like to provide a brief update today.
We are making pushes into digital payments, both consumer and commercial along with becoming one of the first banks to offer crypto access to retail customers beyond the very wealthy among others.
Chuck our peer to peer payments network allows customers to send money from their five star Bank account and enables a recipient to choose where they want the money to go.
We remain on track for launch in early summer 2022.
Beyond Chuck we went live with auto books in February of 2022.
Which streamlines accounts receivables and payables for small businesses and is integrated into five star Bank digital banking platform.
Additionally, we are exploring adding digital payment tools for commercial customers that strengthens our treasury management capabilities.
We are nearing go live for offering bitcoins consumers in partnership with NIAID.
We've completed our internal beta testing and are waiting regulatory feedback before enabling this exciting offerings for our customers.
Our deep banking expertise, coupled with legacy and ongoing investments in technology partnerships and talent is created our bass operating system, which will enable our fintech partners and non bank financial firms looking to offer banking products and services to their customers.
These bass partnerships provide the opportunity for additional fee revenue interest income and insight into consumer trends.
We are collaborating with partners on several exciting opportunities that will drive our bass line of business as.
And we will announce them as they come to fruition.
We filed our proxy statement yesterday afternoon, both the proxy and annual report on all available on our Investor Relations website, and our annual meeting website.
Proxy docs dotcom forward slash.
<unk> Si.
In conclusion it was another good quarter on many fronts for our company and I think my associates for their ongoing dedication and contribution.
Operator. This concludes my prepared comments, we're ready to open the line for questions.
Thank you.
I would like to ask a question. Please press star followed by one on your telephone keypad now.
If you'd like to remove your question. Please press star followed by <unk> and.
When comparing to ask a question. Please show your phone is on mute lately.
We take our first question from price range from the highest screen. Please go ahead Brian .
Thanks, Good morning.
Wanted to maybe start on.
The expansion in the D C area.
With the commercial lending team there.
Marty maybe you can speak to kind of the opportunity how you size it up from a balance sheet perspective, what the timing might look like there and then how you feel about other opportunities that might be in the pipeline.
Thanks for the question price and your participation this morning.
We are very enthused about the opportunity to work with this team in the Baltimore, Washington market effectively a complete team lift out coming out of the Howard Bank.
Acquisition by F&B quarter.
<unk>.
I've spent time joint calling with this group there are seasons or professional.
Our chief commercial lending officer, new John their leader.
Having worked together.
Over the course of their careers.
For the past 30 years. So we were introduced to them by one of our senior executives and they're now introducing us to a market that's broaden our horizons significantly the seat of our federal government and theirs.
There's a big need as we talked about in our prepared comments for community banking.
Bob in terms of working with the segment of the market. So as we speak today.
Their pipeline is ramping up.
$100 million they've already closed.
One loan associated with investment grade.
Sponsor tenant if you will.
Constructing a new headquarters in Baltimore and.
I'm aware of a couple of mandates that we received were.
It reflects the opportunity of working with deeply experienced deeply tenured owners and developers were low loan to values.
And stable property. So we're very bullish on it I think as we speak about <unk> and further opportunities theres, some logical ones right down through way we're.
Operating on the fringes of Syracuse.
In that market and we'll continue to think about how to formalize.
And organized.
Commercial effort there as well so we're open to these opportunities given the technology that exists today.
Today to have a contiguous footprint to help drive the non credit services is not as important as it once was so.
We're going to do it thoughtfully we have here.
We are open to those possibilities.
Okay.
Maybe maybe.
Maybe some clarity around.
The expense guide does it include I assume that includes it includes the theme here.
Good morning, Brian This is Jack and thanks for the question, Yes, that's correct both the loan growth guidance of the mid to high single digit level and the expense guidance are inclusive of the <unk> expansion into that market.
Okay.
That's helpful. Jack and then maybe one more for me you guys called out some of the <unk>.
Qualitative factors going into the allowance.
Some of the puts and takes relative to the drivers of the allowance can you can you speak to those or you haven't.
Quote unquote get get creative in terms of.
Finding ways to maintain the allowance at this level.
<unk> and <unk>.
How the qualitative factors.
Kind of kind of work into work into the allowance methodology.
Right. So one of the areas from a qualitative standpoint that impacted our allowance model. This year with some of the growth in the indirect portfolio.
That's an asset class that we're extremely comfortable with but just given the continued expansion of that portfolio did drive up some of the qualitative factors.
We also.
Re anchored our qualitative factors this quarter, which impacted the model to a certain extent.
But at our current coverage ratio, we are comfortable that coverage ratio today and certainly as you could expect that could imagine uncertainty related to the economic outlook and global political unrest.
The coverage ratio difficult to forecast.
As we look forward, though we do expect a more normalized level of provisioning in 2022 to cover.
<unk> guided as well as overall loan growth.
Okay.
Just back in queue. Thanks, a lot guys.
Thank you.
Our next question comes from Marla Backer from Citi. Please go ahead manner.
Thank you.
I wanted to dig a little deeper into your answer to the prior.
One of questions.
In terms of the loan growth guidance. So are the conversations that you're having today or is that.
Loan officers are having today.
Im guessing that.
There's a little bit of.
Waiting on the sidelines until we.
We see some stability in interest rates until we see what the increase in interest rates might be.
Or are you encouraged by the tone of these conversations that we could see loan growth.
Accelerate a little bit in the near term.
Other than the second half of the year.
So kind of starting from a macro level credit disciplined loan growth has been a strategic focus of our company for a long time and we've been taking advantage of organic growth opportunities in our existing footprint, where we're feeling a very important.
Important gap relative to how community bank operates and delivers credit services. So Mara we for over.
A sustained period of time have been delivering.
High single digit ultimately loan growth for the balance sheet and in the commercial segment.
We continue to take advantage of.
Numerous an array of opportunities in both our <unk>.
Commercial small business commercial C&I and commercial real estate, so our pipelines remain consistent and I would say steady and ultimately sustained we're going to benefit from the incremental LPL.
Office that we established in the first quarter, but we feel good about the outlook for our ability to continue to drive organic loan growth.
Okay.
Thank you for that and.
And then what.
Switching gears a little bit.
He did comment on how the.
Technology access.
Makes sense.
<unk> operating footprint, a little bit less.
Our mandate today than it was.
Perhaps a couple of years ago and so.
Sure.
Entrance into the Baltimore DC market.
Does this in any way impact your strategy with the Buffalo and Rochester or is that strategy is still in place as it was.
So that strategy is still in place I think that we remain.
Very.
Eyes wide open relative to the impact of digital adoption in the world certainly in our industry with our customers with our prospects in terms of balancing our ability to deliver the bank and are very confident in personal and accessible manner for our customers.
At the same time, ensuring that they have the they are empowered to access us through technology and digital solutions that meet their needs so well.
Constantly think about the balance between our commitment to a <unk>.
Physical footprint as well as supplementing a complement of that through our digital solutions that empower our customers consumer and commercial.
Okay, and then last question with just more of a housekeeping one it comes out of this conversation that we're having now.
Are you foreseeing any additional branch closures in 2022.
Carlo This is Jack at this stage of the game, we don't have any branch closures.
And our strategic outlook.
Okay. Thanks very much.
Our next question comes from Alex Potter from Piper Sandler. Please go ahead.
Hey, good morning.
Alex Good morning, Alex.
I just wanted to start with the NIM guidance that you gave Jack can you just would you mind going through it and just one more time I think you said $305 to $3 17.
Ex PPP, what's the starting point NIM that you are kind of.
Using as kind of the starting point for that NIM guide.
Okay.
So when you look at our results for this quarter. We came in at 311 basis points and then when you back out the impact of Triple P. We were at 305.
We took the first quarter results in rolled forward using the spot rate as of March 31 to update that guidance, which resulted in.
An increase on the longer end of.
Of seven basis points from where we originally guided.
Yes.
Okay.
Yeah.
Sure.
Can you just remind us do you have any sort of guidance I think the foreign curve has now got something like eight hikes for this year.
Can you can you give us a little bit of guide and kind of what the expectations per hike is given to 35% of loans that are indexed variable and maybe go through some of the other cash flows that you're expecting over the next 12 months.
From a cash flow standpoint, we saw a pretty healthy amount of cash flow come off the securities portfolio in the first quarter and over the next 12 months, we're modeling another $200 million to come off of the securities portfolio itself.
We didn't model on a per hike basis per se, but when you layer in the forward curve based upon the fed guidance I think that we could see another potential for five to seven basis points of expansion.
Assuming that we are able to maintain our deposit betas.
I had mentioned that our non maturity deposit betas were modeled that zero to 30%. We also look at our <unk> and Ics portfolio, which is on our reciprocal deposit base, which has a higher deposit beta.
That ranges from about $55 to 65% as well so that's based upon our <unk>.
<unk> during the last rate hike in 2018 period.
It may be a little bit different this go around but I think we're being.
Fair and using that historical experience in our modeling.
Okay.
The cash flows on the securities that you alluded to the $200 million plus whatever came this quarter is that are those coming off.
Higher than what new securities are going on that or are they kind of around the book yield.
The cash flow is coming off is right around the book yield.
Okay.
And then can you maybe talk a little bit about new loan yields that youre seeing in your market for commercial paper.
<unk> gotten some answers that are all over the board from some of your competitors.
Yeah. This is Jack I mean from a <unk>.
Competitive standpoint, because you can imagine the market is highly competitive right now is.
Most banks continue to have excess liquidity on their balance sheet that they're looking to deploy.
This higher interest rate environment.
From a yield standpoint.
Talk about credit spreads a little bit we have seen.
A slight amount of tightening in credit spreads, but not to an extent that makes me nervous.
Generally in line with our experience over the past 12 months.
So what does that translate to it but if you're putting on a new commercial real estate loan today like what what kind of yield with that.
Roughly what would that translate to.
I mean, it's I'll talk about the credit spreads again, I think that generally.
If you look at.
Where our loans were pricing in the past 12 months and then add in the shift in the federal home loan bank curve that would approximately equate to the new loan yield.
But we are seeing in the market.
Okay, and what are those credit spreads can you give me just trying to make that make it ultra tied together with the NIM The NIM guide.
There I'm not going to pinpoint them exactly but theyre above 200 basis points.
Okay.
And then just shifting back to the commentary on the lenders in D. C are you going to need a branch down there.
No we're not.
The application that we filed is for a.
Limited production office, which essentially allows for us to.
Generate commercial loans and <unk>.
Except commercial deposits in that space.
Digitally.
Okay, great. Thanks for taking my questions.
Thanks, Jeff.
As a reminder, if you would like to ask a question. Please press star followed by one on your telephone keypad now.
We take our next question from Damon Delmonte from <unk>. Please go ahead.
Hi, This is <unk> filling in for Damon Delmonte, I hope everybody's doing well today.
I appreciate the update on the digital initiatives. My first question is.
Do you still expect that bitcoin wallets to launch by the end of the second quarter or do you think the regulatory review could delay that.
Okay.
We do think we're shooting for end of the second quarter early summer.
We want to as we said, we completed our beta testing rather than family.
We're certainly ready, but we want to make sure that we.
We're very collaborative with our regulators and understand what their expectations are and so because of up to them.
Yeah.
Okay and will that be expanded to additional crypto currencies.
That expansion happens does that require a whole another regulatory review or that'd be quicker additions.
Okay.
At this point, we're just focused on the partnership we have with <unk>.
Okay got it. Thank you and then my last question just regarding share repurchases. I know you said you went through the plan do you have any updated outlook going forward for the rest of the year.
This is Jack and thanks for the question, we continue to identify opportunities to efficiently deploy capital and.
The potential to build dry powder so to speak so.
So that's an arrow.
Errol that's in our quiver.
Something that we can consider is as we continue to provide outlook for.
Future periods.
Okay, great. Thank you.
Thanks, so much.
So as a final reminder, if you would like to ask a question. Please press star followed by one on your telephone keypad now.
Yeah.
We currently have no further questions. So I'll hand, it back to our speaker team for any final remarks.
Hey, Thanks for your support.
This important discussion we look forward to continuing the dialogue.
With our second quarter results in July .
Thank you for joining this now concludes the call. Please disconnect your lines.
Okay.
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