Q1 2022 Hope Bancorp Inc Earnings Call
Good day and welcome to the Hope Bancorp 2022 first 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 one on your touch.
Tone phone and to withdraw your question. Please press Star then two 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 Chuck good morning, everyone and thank you for joining us for the Hope Bancorp 2022 first quarter Investor Conference call as usual, we will begin we will be using a slide presentation to accompany our discussion. This morning. If you have not done so already please visit the presentations.
But I our website to download a copy of the presentation or if you are listening in through the webcast you should be able to view the slides from your computer screen as we progress through the presentation.
Beginning on slide two let me begin with a 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 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 <unk>.
So to be included in the quarterly report on Form 10-Q for the quarter ended March 31, 2022 could differ materially from the financial results being reported today. In addition, some of the information referenced on this call today are non-GAAP financial measures. Please refer to our 10.
22 first quarter earnings release for the reconciliation of GAAP to non-GAAP financial measures.
Now we have allotted one hour for this call presenting from the management side today will be Kevin Kim Hope Bancorp's, Chairman, President and CEO and Alex Ko Senior Executive Vice President and Chief Financial Officer, Peter Koh Senior Executive Vice President and Chief operating Officer 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 three with a brief overview of our financial results.
As we expected many of the positive trends, we experienced last year have continued in 2022, most notably we continue to see strong loan production volumes unexplained in net interest margin and improvement in our asset quality.
We generated net income of $67 million or 50 cents per share in the first quarter up 18% from 51 $6 million or 43 cents per share in the preceding fourth quarter.
Our return on average assets and return on average tangible common equity increased considerably to 137% and 15, 1%, respectively from 1.16% and 12.85%.
Moving on to slide four.
While there were many challenges during the first quarter ranging from the army from search to inflationary pressures to heightened geopolitical tensions we've continued to generate a high level of loan originations.
For the third consecutive quarter, we had more than $1 billion in total loan production, which is which is a record high for the first quarter and reflected a 21% increase over the first quarter of last year excluding.
Excluding PPP loans, our first quarter originations this year increased 89% over the loan production volume in the 2021 first quarter.
The very strong loan production volume in the first quarter led to loan growth of six 7% on an annualized basis, excluding PPP loans.
During the first quarter, we continued to see robust levels of demand for commercial real estate loans, we had $578 million of commercial real estate loan production, which was down from the seasonally strong fourth quarter production, but 86% higher than the first quarter of last year.
We continue to benefit from our increased focus on multifamily lending multifamily loans accounted for approximately 17% of our total CRE loan originations this quarter and as a result, our multifamily portfolio increased 13% from the end of the prior year.
Quarter.
As a result of our increased production of multifamily warehouses and mixed use facilities.
Along with the reductions in our hotel motel properties, we continue to create a more diversified lower risk commercial real estate portfolio.
We had $344 million of commercial loan production in the first quarter.
As with the CRE loan production.
This was down from seasonally strong fourth quarter. However.
However, the C&I production in the first quarter was higher than any other quarter in 2021 excluding PPP loans and more than double the non PPP production, we had in the first quarter of last year.
Excluding warehouse lines, our commercial loan portfolio increased at an annualized rate of 16% during the first quarter.
Within our corporate banking group the higher level of commercial loan production reflects the success of our efforts to add new banking talent that has increased our ability to target attractive vertical industries and expand our geographic presence in particular, our telecom and media portfolio.
<unk> continued to grow and we are seeing increasing production in our health care vertical. Following the addition of the team last year.
Our SBA loan production for the first quarter totaled $57 million, which was slightly higher than the preceding fourth quarter, while we had a 27% increase in residential mortgage production.
We generally saw good trends in loan pricing in the first quarter with the average rate on new loan originations increasing from the preceding quarter in each asset class.
This resulted in our average rate on total loan production, increasing by 16 basis points compared with the preceding quarter.
The productivity of our banking teams has enabled us to generate a higher level of loan originations. Despite limiting our production of long term fixed rate loans as part of our interest rate risk management strategy.
Now I will ask Alex to provide additional detail on our financial performance for the first quarter. Alex. Thank you, Kevin beginning with slide five I will start with our net interest income, which totaled $133 $2 million for the first quarter of 2022.
Sure.
Which was fairly stable with a preceding fourth quarter.
<unk> increased 9% year over year.
Our net interest margin increased eight basis points quarter over quarter to $3.
Two 1%.
Excluding the impact of purchase accounting adjustment, our net interest margin increased 10 basis points quarter over quarter to three.
3.19%.
The increase was primarily due to a more favorable mix of a higher yielding earning assets.
We also benefited from a 22 basis point increase in our average yield on investment securities due to slower prepayments lower premium amortization and a higher yield on new purchases.
Looking at the second quarter of 2022.
We expect relative stability in our net interest margin.
Increases in our loan yield from the anticipated rate hikes in the later part of the second quarter.
We'll likely offset our expected deposit cost increases.
Most of our variable rate loans repriced immediately.
Although a portion of our variable rate loans repriced.
Italy or quarterly basis.
So we will not see the full benefit of the second quarter rate hikes.
Till the third quarter.
Given our improved deposit mix and the higher level of commercial relationships.
While we expect deposit costs will increase in the near term.
We believe our deposit beta will be lower this time around than what we experienced in the previous interest rate rising environment.
We plan to remain conservative and deposit pricing.
We will continue to closely monitor our deposit and the liquidity position in light of the recent economic and global events that have taken place.
Moving on to slide six.
We remain in an S S asset position as of March 31, 2022.
And our position to benefit in a row.
<unk> interest rate environment.
All of our new loan production in the first quarter, 43% represented variable rate loans.
As of March 31, 2022.
Variable rate loans also accounted for 43% of our total loan portfolio.
Now moving on to slide seven.
Our noninterest income was $13 $2 million.
The first quarter.
Up slightly from the preceding fourth quarter.
We had declines in international service fees.
Well as other income.
Which was primarily attributable to a fair value adjustment to equity investment and lower CRA investment dividend income.
This declines were offset by an increase in net gains on sales of SBA loans.
An increase in both the volume of loans sold and the average net premium.
Moving on to noninterest expenses on slide eight.
Our noninterest expense was $75 $4 million, representing an increase of 2% from the preceding fourth quarter.
The most significant variance was a 7% increase in <unk>.
Our salary and benefit expense.
Largely due to seasonally higher payroll taxes and vacation accruals.
As well as a lower deferred loan origination cost.
However, much of this increase was offset by lower levels of expenses and most other areas, including advertising and marketing.
Data processing professional fees and what are your expenses.
Now moving on to slide nine I will discuss our key deposit trends.
As of March 31, 2022.
Our total deposits declined 3% from the end of the prior quarter.
Primarily representing a 21% reduction in time deposits.
Towards the end of the quarter, we have reduced our brokered money market and time deposits by approximately 300.
$15 million.
In light of a material increase in the cost of these deposits are to.
We exceeded our cost of other funding options available to the bank.
The cost of our interest bearing deposits declined by one basis point quarter over quarter.
Where the lower contribution of non interest bearing demand deposits.
Our overall cost of deposits increased by one basis point.
Now moving on to Slide 10, I will review our asset quality, we saw continued improvement in asset quality in the first quarter as expected.
Most notably the <unk>.
Strategic actions that we took in 2021 drove a 21% decrease in our criticized loans.
Sustained improvement and borrowers led to upgrade.
<unk> also contributed to the $106 million decline.
Nonperforming assets declined by $9 $4 million.
Due primarily to a decline in our crane GDR laws.
Results will pay off.
Following the portfolio the risking actions in 2021.
Our loss experience continues to be very low.
We had adjusted $1 $5 million in charge offs during the first quarter.
While we had $94 million in recoveries.
Most of which related to one larger relationships that was charged off in the third quarter of 2021.
The significant amount of net recoveries contributed to a negative provision for credit losses of $11 million in the first quarter.
The allowance for credit losses coverage ratio as of March 31, 2022 was 1.06% of laws, excluding PPP comp.
Compared with 1.0% to 2% as of December 31, 2021, while our coverage of nonperforming assets increased 245%.
Mm 126%.
The increase in our coverage ratio reflects an increased level of risk and volatility in the macroeconomic forecast.
Now moving on to Slide 11, let me provide an update on our capital position and returns.
The increase in interest rate during the first quarter resulted in unrealized losses in our investment portfolio.
<unk> really impact your tangible common equity per share by approximately 80 cents.
Despite the increase in unrealized losses in the first quarter, we remain strongly capitalized to support our continued balance sheet growth.
As shown on this slide.
With that let me turn the call back to Kevin.
Thank you Alex now moving on to slide 12.
<unk> I discuss our outlook, let me briefly comment on our new $50 million stock buyback program program announced in the first quarter.
To date, we have not repurchased any shares under the new buyback program, while we believe the valuation of our stock still presents a good opportunity the operating environment changed with significantly higher levels of volatility and uncertainty.
Around interest rates.
Inflation and the overall general macroeconomic environment, which was further hampered by the war in Ukraine.
We will continue to evaluate the situation closely and when we believe it is opportune and prudent to do so it is our intention to be active with buying back our stock under the current program.
Now, let me provide a few comments about our outlook.
We continue to execute very well and we expect to see a continuation of many of the positive trends that we experienced in the first quarter.
That being said I think it is fair to say that compared with the beginning of the year. There is now a higher level of uncertainty regarding the operating environment for the remainder of 2022.
A wider range of possible outcomes for our financial performance this year.
Inflationary pressures geopolitical unrest and the expectations for the number and pace of interest rate increases have all escalated over the past three months and there is growing concern about a possible recession later this year or in 2023.
While our loan pipeline remains healthy it is difficult to predict how loan demand will be impacted later in the year by these macroeconomic and geopolitical headwinds we are seeing some signs of stronger corporate clients pulling back from potential deals as pricing on new law.
<unk> has increased.
With the increased productivity of our banking teams the momentum we have in attractive vertical industries.
Asset sensitive balance sheet and the success, we are having in controlling expenses, we have many catalysts in place to drive further growth in earnings and returns.
We are mindful of the potential challenges to the operating environment. So we are cautiously optimistic at this point and if the economy in loan demand remains strong we expect to deliver another strong financial performance this year.
We believe that the actions we have taken to significantly derisk, our loan portfolio reduce concentration levels developed relationships with larger stronger corporate borrowers and increase our exposure to lower risk asset classes should put us in a better position.
To manage through an economic downturn over the past few years. The changes we have made to our business mix and the transformation of our balance sheet have significantly strengthened our franchise and improved our ability to operate in a variety of economic environments.
While we are hopeful that economic conditions remained strong we take gratitude and the fact that our organization is sounder and stronger than it has ever been as a result, we believe we can continue to deliver good results for our shareholders in a more challenging.
Adding environment with that we would be happy to take your questions and Ed did add any additional color as requested operator, please open up the call.
We will now begin the question and answer session.
To ask a question you May press Star then one on your Touchtone phone if youre using a speakerphone. Please pick up your handset before pressing the keys and to withdraw your question. Please press Star then two at this time, we'll pause momentarily to assemble our roster.
Yes.
Okay.
[noise] [noise] [noise].
Again to ask a question. Please press Star then one.
And our first question will come from Chris Mcgratty with K B W.
Great. Thanks for the question.
Kevin maybe a high level.
Wanted to start you guys have made tremendous progress.
The balance sheet composition over the past five years I'm interested in how you're thinking about how the deposit mix.
We'll shift with with rate with rate hikes and also just the pace of overall deposit growth.
Sure Chris Yes, I agree with you know we made a very good progress in terms of the deposit mix spur.
Especially increasing the noninterest bearing deposit composition has gone up substantially benefiting from the increase of our C&I portfolio.
You might sense that in the core in this quarter, there was a little bit of reduction, although noninterest bearing deposit, but as I said earlier there is some timing differences there was one large customer.
Customers know they kind of withdraw the balance for the quarter and but as of now we see it on noninterest bearing deposit balances coming back. It is a slightly higher than year end balances. So I don't anticipate a big.
Challenges on the noninterest bearing deposit accounts.
For the C. D accounts, so we strategically lowered our CD balances.
Because in the last interest rate rising cycle, we did have experienced those C. D. As has been the most rate sensitive and it hasnt been most expensive categories of the deposit so we are strategically.
Disciplined pricing on the C D. So that actually.
Triggers see some attrition of the C D.
However.
And the rising rate interest rate environment and a.
Fat, having a acuity implemented in Q2 I think so there is some cautious.
Our plan was to prepare for the growth of the loan portfolio.
So I think there will be some extent of a pressure for our deposit, but again with the big success of our C&I portfolio. The good deposit mix is I would expect our deposit beta will be lower than what we had experienced last time.
But again, there's a lot of uncertainty and the volatility in the market. So we are cautiously kind of a monitoring those deposit beta.
Okay, great. Thanks for that.
I think last quarter, you referenced a kind of a rule of thumb each each quarter point was around $7 million.
Only two to net interest income I was just interested.
Has that at all changed.
And in the last three months and.
Now as we get more frequent and sooner rate hikes does does the marginal benefit of that Ah I would imagine that declines as you get into like four five and six.
Yeah, you know last time, we did a say a 25 basis point increases we would expect a five to seven $6 million of the increase in the net interest income I think that that is.
Still the case, but compared to that now we expect a more frequent and higher <unk>.
Just rate hikes. So let me give you a little bit more kind of a 50 basis point case increase that we expect in May and June respectively.
So if we see a 50 basis point increase in May.
Seems like a weird I expect to benefit about $10 million to $12 million of additional net interest income for the next 12 months.
And if there was an additional 50 basis point in June that would expect additional a $10 million to $12 million of the net interest income over the next 12 months.
And I also like to note that the SBA loans kind of reprice on a quarterly basis. So.
Together with our short term lag in the repricing of a search a launch of our.
Variable rate loans.
We expect a rate hike in May and June would have largely benefit our net interest income beginning of the third quarter of 2022.
So I would expect 2020.
Two overall since we are well positioned for the asset sensitive position, but we will get the benefit but second half of the.
A year after that income benefit I think we are little bit cautious because there was a lot of kind.
Kind of uncertainty as we have discussed for the economic trend in the rate in depression.
And.
Economic uncertainties.
Okay. That's great color. Thank you, maybe just one more on the SBA debt that incomes and been creeping up last few quarters and your fees.
Any outlook or commentary you can provide about the gain on sale margins or the pace of the launch.
Loan sale.
As far as we observe the premium in the secondary market is holding up pretty nicely so far.
And in terms of the volume of SBA loan sales in the coming quarters.
So long as the premium in the secondary market remain at their current levels, we want to sell to similar volume of SBA loans that we did in the first quarter.
Great. Thanks, Scott.
The next question will come from Gary Tenner with D. A Davidson. Please go ahead.
Thanks, Good morning, I just wanted to ask a follow up just on a kind of a balance sheet structure.
Saw the.
Securities portfolio shrink a little bit this quarter I'm, just wondering is that kind of as you saw.
Some lower deposit balances in the quarter or did you just a lot of the cash flows to roll off or how are you thinking about managing.
The kind of the back side of the balance sheet the asset side.
As we go through the next few quarters.
Yes, as I said, you know the deposit balance does have an impact on our overall asset size.
And based on our disciplined pricing on C. D. We did see some attrition on the C. D plus there was some timing differences of our noninterest bearing.
Bearing deposits.
And also.
We compared our overall funding cost our broker deposits versus the other.
Funding sources available and we did see quarter end toward the quarter end, we did see a louder.
Interest rate increase on the broker deposit and a broker.
Broker borrowings so we strategically lowered those broker deposits, but we still have lots of ample funding alternatives I E. FHL the borrowings we have.
More than three billions available and also we have about $2 $5 billion of investments acuity.
It is our available for sale and we keep it as up liquidity purposes as well so in the present kids our loan growth I think we still have ample amount.
The amount of funding resources available, including.
Retail deposits and borrowings and also you know investment securities.
And then it sounds like with with some resurgence this quarter or since the quarter end in terms of the noninterest bearing DDA.
Your loan deposit ratio that I think it was 97% at quarter end, maybe maybe it comes back down a little bit.
But what what's your like what's the range that youre looking to manage that loan deposit ratio. When does he tried to balance the cost dynamic on the deposit side with your loan demand.
Yeah, Gary like 97% I think if you compare this way like a two or three years ago. It was a normal you know we used to have like a 98 or close to 100%, but you know our last two three years, we maintain our loan to deposit ratio much lower but this quarter. It went up.
I think that that is again due to our liability side not a temporary kind of a reduction so I would expect our loan to deposit ratio below 95% certainly.
Lower than 97%, we have experienced in this quarter going forward.
Okay. Thank you and if I could just one one last question just on P. P. P. A what the average P. P. P balances were for the quarter I bet, Alex and then the the associated revenue that was recognized in the quarter.
Sure No our average balance for the P. P. P for Q1 was 165.
A million dollars compared to Q4 was a $12 million to $80 million. So there was a.
Quite reduction.
The actual <unk>.
<unk> fee income recognized for Q1 was a full point of $1 million as opposed to Q4, a $5 $2 million.
So is there something like 2 million left.
Of E D CS.
Yes, PPP fee as Q4 compared to Q1 about a $1 million lower.
I'm, sorry, but how and how much is remaining are.
Sure the remaining as of March 31st is $2 $96 million, so relatively small amount to the left okay perfect. Thank you.
Sure.
The next question will come from Matthew Clark with Piper Sandler. Please go ahead.
Hey, good morning.
Hum.
On the on the loan balances it sounds like the mortgage warehouse was down it was down about $320 million.
You kind of back into the 16% annualized growth ex.
Warehouse.
Can you just remind us where those balances sit today and what you're assuming.
For the warehouse.
And your high single digit to low double digit loan growth this year.
Yeah, Let me, let me respond to that.
There has been no significant change in our warehouse lines available.
Which are just above a $1 billion as of March 31, but the utilization has come down meaningfully alongside our industry trends. So during the fourth quarter of well if I look at the ending balance the the line utilization as of December 31 was.
A little higher than 51% and that came down to 30% as of March 31.
Uh huh.
Although we believe that we have strong relationships with our existing client base are our current balance with just a little more than $300 million in outstanding balances as of quarter end.
Warehouse lines outstanding represented only about 2% of our total loan portfolio. So any further decline if any in utilization from this point will not be as strong a headwind to our loan growth as it once was a few years ago. So.
I don't think it will be a big factor in terms of our loan growth projection.
And we.
We have a we expect a really well balanced and diversified.
Portfolio growth.
Across our CRE commercial and consumer portfolios and I I I think.
We are good in terms of a low double digit or high single digit growth projection as of today.
Okay, Great and then just shifting gears to the reserve to loan ratio I think one O six excluding the excluding PPP.
Up about four basis points you mentioned.
Increases uncertainty around rates and.
Inflation geopolitical all that stuff.
Do you feel like you know, we we stabilize here I know, it's somewhat dependent on the macro factors, but do you feel like a grind higher or do you feel like we stabilize here and just stay above where you were gay one I think at 96 basis points.
Sure. This is Peter I can.
Respond to that.
As you know I mean, notwithstanding the recovery, we did have some reserve build in the first quarter.
Focused on you know the macroeconomic softness potentially coming from higher interest rates and all that.
I think at this point you know we are looking at this very carefully I think there is a little bit too much uncertainty or volatility right now to make.
That type of a.
Projection in terms of reserve levels going forward.
But it will be a reflection of of various <unk>.
Factors and variables I think it really depending on how we view the overall macroeconomic environment as we move forward and as you know the reserving process under Cecil is a life of loan reserve reserving process. So we look out you know over the course of the life of the loan which covers.
Some of the uncertainty, we're starting to see potentially a.
Rising in 2020 late 2022.
<unk> 2023.
So it's a little bit too early to.
To determine that but we are comfortable with the current reserving levels at 1.86%.
We felt that the a slight build this quarter was appropriate based on what we're seeing.
Okay, and then just circling back to the the margin outlook.
Relatively stable margin in the near term sounds it sounds conservative.
And maybe that's just for the upcoming quarter, but it sounds like we should see some expansion with the repricing of that loan portfolio, maybe just to confirm that and then.
The 43% contribution.
Contribution of variable rate loans, I mean, do you feel like Youre going to.
Pull through 43% of the fed rate increases over time or do you feel like you know competitive pressures Mike Mike.
Damper that.
Sure.
Let me answer.
Net interest margin.
Kind of a transaction.
So it wasn't more Q2, we expect it will be stabilized and also as I mentioned earlier, the full impact of the variable rate and the 43% of our long we'll be in the third quarter Q3, it because some time lag like I E. SBA loan is repriced at our quarterly.
So there's definitely some conservatives.
Embedded in this year.
And also on the liability side deposit side.
I'm fairly comfortable that our deposit beta will be much lower than our last interest rate.
Raising environment, but I want to put some kind of a cautious mode and sheer because of uncertainties and risks they have a lot of funding resources available.
Just be cautious for the economic.
Variables and Q T and inflation and interest rate all of those kind of thing. So I kind of agree with you. There was some conservative outlook included in our NIM projection.
Especially for the second half of the year.
And also I think it's a question of about 43% of our variable rate laws do we expect that they will have a full impact from the interest rate increase yeah, you know, even though there will be some lag.
Totally versus the immediately but I think it will impact, but I also wanted to mention the real severe competition that we see in both variable and the fixed rate loan portfolio as well.
So again, we were able to hope for and we would expect that impact from the increase on the.
Our variable rate loan I think it will we'll see.
Most of them, but again some competitive.
Pricing pressure from our <unk>.
Compare that to your market pricing perspective.
Okay. Thank you very much.
Again, if you have a question. Please press Star then one our next question will come from Tim Coffey with Janney. Please go ahead.
Great. Thank you good morning, and thank you for the questions.
Just looking at the expense guidance say averaging.
Right around one 7% of average assets does that imply a growth rate in the kind of mid to high single digit range for the year.
Yes, that's correct.
Okay.
Okay.
And then Alex.
What's a reasonable level of cash.
So you'd like to have on the balance sheet is it closer to that because it was it below the period end level of around $280 million.
Yeah.
As you might notice no we actually deployed our kind of access cash to a higher earning asset and that is one of the reason why we did see the margin expansion like eight basis points reported and 10 basis points.
Excluding those PPP and other accretion, but the level of the cash at this time no should three on March 31st we have about $280 million.
Compared to last year of $376 million, that's almost $100 million reduction so I do not expect that cash and due from banks balance itself will decrease substantially but as I mentioned earlier the investment securities we have about $2 $5 billion and if it is too.
We might be a little bit slower in terms of reinvesting in the investment securities rather those pay downs pay offs, we might a useful use funds the funding the loan portfolios. So to answer your question I don't anticipate a substantial reduction of the cash and cash equivalent balances.
We saw.
In March 31st going forward.
Okay. Thank you I appreciate that.
And then Alex real quick what the what deposit beta are you using from the last cycle what was the range there.
Last cycle was about 75% range is it was quite high.
But certainly I expect it will be much lower deposit beta for this cycle.
Right Okay great.
And then just on the SBA production.
We're anticipating on the forward quarters.
Any sense there.
You might have pulled some of that forward in a bar.
Borrowers taking advantage of get in and before the rates started to move higher.
You know that we do see some potential headwinds developing in the small business area. So I think that will potentially impact the small business SBA.
SBA loan customers as well, but you know.
It's hard to say, whether it has it's been pulled forward or not the loans that we do are generally all variable rate loans and so there won't be some potential headwind there.
But as we look at our pipeline, we don't see much impact yet, we actually think that if the economy.
Continues to perform well I think we will have very good production levels and SBA throughout the year.
Okay, great. Thank you very much that was my question.
Thank you.
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 in three months so long everyone.
Sure.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Okay.
[music].
Yeah.
[music].
Yeah.