Q3 2022 Ameris Bancorp Earnings Call
Yeah.
Hello, everyone and thank you for joining the mortgage bank cookbook cultural 2022 cold from school my name as far as now we don't breach of full today before HUD yoga Chiho smokeless Stokes I would like to remind you that if you would like to ask a question during the Q&A session at the end of the call. Please push thoughtful they wanted in the telephone queue.
Yep.
I know I have the pleasure Paniolo Qi host Nicolas Stokes the Chief Financial Officer. Please go ahead niccolo.
And Nick you.
You may begin.
Thank you Gary and thank you to all who joined our call today during the call we will be referencing the press release and the financial highlights that are available on the Investor Relations section of our website at <unk> Com I'm joined by Palmer Proctor, our CEO and Jon Edwards, our Chief Credit Officer.
Palmer will begin with some opening comments and then I will discuss the details of our financial results before we open it up for Q&A, but before we begin I'll remind you that our comments may include forward looking statements.
These statements are subject to risks and uncertainties. The actual results could vary materially we list some of the factors that might cause results to differ in our press release and in our SEC filings, which are available on our website, we do not assume any obligation to update any forward looking statement as a result of new information early develop.
Or otherwise except as required by law.
Also during the call we will discuss certain non-GAAP financial measures in reference to the company's performance you can see a reconciliation of these measures and GAAP financial measures in the appendix to our presentation and with that I'll turn it over to Palmer. Thank you Nicole and good morning, everyone. Thank you again for taking the time to join our call today, we had a strong third quarter.
And I'm proud to be able to share some of the results with you here today, we reported net income of $92 6 million or $1 34 per diluted share and $91 8 million or $1 32 per diluted share on adjusted basis. When you exclude this quarter's MSR recovery. These adjusted results represent a strong 154 return on that.
Assets in 18, 33% return on tangible equity we had another solid quarter of revenue growth, where net interest income increased over 11% from last quarter to this quarter the second consecutive quarter.
Net interest margin improved by 31 basis points to 397%, we continue to deploy excess liquidity into the loan and bond portfolio. While also protecting our deposit franchise, we improved our positive mix once again this quarter and now noninterest bearing deposits representing almost 43%.
Total deposits are.
Our revenue growth. In addition to disciplined expense control resulted in an improved efficiency ratio of just over 50% for the quarter and we're now at 53% efficiency ratio for the year, which is exactly in line with the 50% to 55% that we've previously guided.
And all of this revenue growth and operating efficiencies certainly been accretive capital. We grew tangible book value again by over 10% annualized this quarter to end at $28 62 per share and for year to date, we've grown tangible book value of about $2 36 or over 12% annualized.
We continue to deploy excess liquidity, so while total assets remained fairly consistent for the quarter, our earning asset mix actually improved we invested approximately 300 million into our bond portfolio and organically grew loans by $1 $2 billion during the quarter for the year to date, we've grown our bond portfolio by 713.
And reduced our mortgage loans held for sale by a $957 million.
We stayed the previous quarters that our strategy was to use our mortgage loans held for sale in lieu of buying bonds at previously anemic rates that would negatively affect our capital rates increased and thats exactly what we did a retail mortgage origination P. PNR has now normalized below 3% of total P. PNR.
And therefore any perceived overreliance on mortgage should be eliminated.
On the credit side overall credit quality remains very strong we recorded a $17 million provision for credit losses expense this quarter due to our strong loan growth and updated economic forecast for our annualized net charge off ratio was 11 basis points of total loans for the quarter and our nonperforming assets as a percent of total assets.
He was just at 55 basis points.
And as you can tell we remain focused on a lot of fundamentals here, regardless of what the economic landscape is and I think this quarter's a clear example of that and also the hard work our team made to put forth to achieve the results that you saw for the quarter and this mirrors team. When you think of that has really built a extremely solid deposit base low deposit beta.
Strong loan growth solid asset quality diversified income streams with no dependency on any one vertical and obviously top tier performance metrics.
Paul is there now ill turn it over to cole for more details great. Thank you Palmer.
You mentioned for the third quarter, we are reporting net income of $92 6 million or $1 34 per diluted share on an adjusted basis, we are $91 8 million or $1 32 per diluted share, which excludes the servicing asset recovery.
<unk> expenses and a small building.
Our adjusted return on assets of $1 54, and our adjusted return on tangible common equity was $18 33.
Again this quarter with our increase in tangible book value cover mentioned, we ended the quarter at 28 62, an increase of 73%.
Our 10, 4% annualized after this quarter, we had only 55% of dilution from the increase in unrealized losses on the bond portfolio compared to 16.
Last quarter for the year to date period, we've grown tangible book value by $2, 36, or 12% annualized and our year to date dilution to tangible book from a NCR has only been about three 5%.
Our tangible common equity ratio increased to $8 75 at the end of the quarter compared to 858 at the end of last quarter, we continue to be well capitalized and we feel comfortable with our capital and dividend level.
Our net interest income for the quarter increased $31 7 million over last quarter and $61 3 million from the third quarter of last year in comparison, our interest expense only increased $10 1 million this quarter compared to last quarter, and only $9 9 million compared to third quarter last year.
Is it that our net interest income for the quarter increased $21 6 million, which is driven mostly in the core bank segment. Our net interest margin increased 31 basis point from $3 66 last quarter to 397 this quarter, our yield on earning assets increased by 49 basis points, while our cost of interim.
Bearing liabilities increased by just 34 basis points.
About 20 basis points of that 31 basis point margin improvement was from the deployment of excess liquidity into higher earning assets and then the remaining 11 basis points of expansion was due to what agriculture core margin growth in very simple terms about 31 basis points of loan yield improvement offset by 20 basis points.
Housing costs.
I mentioned at the end of the second quarter that we were slow to increase deposit costs into Q and that our first raise went into effect the last day of the quarter due.
Due to competitive pressures.
We did a little bit more aggressive with raising deposit costs. In addition to that late two key range at the races.
As the fed raise rates this quarter, but were still below our model deposit betas, our cumulative deposit beta this year has been about 10% compared to our model data of 23%.
We do anticipate additional deposit costs. If the fed continues this cycle and as competition continues to increase.
However, even with this anticipated extent, we continue to be asset sensitive with NII, increasing about 3% in an up 100 environment and we've updated the interest rate sensitivity information on slide 11.
Noninterest income decreased $18 3 million this quarter, we recorded a $1 $3 million servicing rights recovery compared to $10 8 million last quarter. So excluding that MSR activity. Our total noninterest income decreased $9 million all in the mortgage division.
It represents about a 20% decline in mortgage revenue as production declined to 123 billion and the gain on sale margin declined to two 1% expenses.
Expenses in the mortgage division declined by $6 6 million or about 14% and that represents about 68% to 70% of the revenue decline due to the variable expenses within that division purchased business has returned to historic levels and about 85% to 90% of total activity and we're prepared for continued success.
And our pre pandemic and pre refi boom levels.
Besides the Palmer said earlier retail mortgage originations as a percentage of our pre provision pre tax income are really continue to normalize representing just two 3% of the total this quarter.
Noninterest expense decreased $2 6 million this quarter as I, just mentioned expenses in the mortgage division declined by $6 6 million. So excluding the mortgage division noninterest expense increased about $3 5 million, the majority of which were compensation benefits including incentive.
Benefits and wage inflation. This represents about a 4% increase expense, but compared with a 15% increase in NII, we had our efficiency ratio continued to improve.
Reaching a low of 58, 6% for the quarter and that brings us to $53 44 for the year.
We continue to look for expense reduction opportunities and we anticipate an efficiency ratio with the same guidance as before that 52% to 55% range going forward.
On the balance sheet side assets were relatively flat at $23 8 billion compared to $23 7 billion last quarter, we deploy the remaining $1 4 billion of excess liquidity into higher earning assets to include about $300 million in the bond portfolio and $1 2 billion of organic loan growth spread among <unk>.
Really all categories of our loan portfolio as you can see on slide 16.
We were pleased with the loan growth this quarter and underlying credit and those loans do.
The softening market conditions and reduced pipeline, we do anticipate we do not anticipate the same level of loan growth in the next few quarters.
While 2022 loan growth is going to come in higher than we originally guided because of the remixing of the balance sheet and the excess liquidity deployment. We do anticipate 2022 23 loan growth to continue to slow and kind of be more in line with our prior guidance of upper single digits that 7% to 9% window.
Total deposits decreased by $218 million or about 1% during the quarter. However, we grew noninterest bearing deposits by $80 million and or have some of our higher cost interest bearing deposits. We ran off declined about $298 million. The change in deposit is such that our noninterest bearing deposits are now 42.
86% of our total deposits almost 43% and our total non rate sensitive deposits that includes noninterest bearing now and saving they represent over 66% of our total deposits. This mix will certainly continue to help our deposit betas as we move through the cycle.
And with that I'll wrap it up by just reiterating how proud I am of our team we remain disciplined and focus on operating performance as we move forward I appreciate everyone's time today and I'm going to turn the call back over to Gary for any questions from the group.
Thank goodness.
Steve I would like to ask a question. Please press thoughtful way wandering your telephone keypad. If you change your mind piece breast thoughtful by two went to fantastic question isn't showing phones of mid to low teens.
So the first question comes from Kevin Sorry months from D. A Davidson. Please go ahead Kevin.
Hey, good morning, everyone.
Good morning, Kevin.
Just.
On that.
One of those last comments you made Nicole about the pace of loan growth.
I guess, it's slowing or normalize into upper single digits can.
Can you just.
Just kind of parse that out a little for us in terms of.
Is that.
You know maybe retaining less mortgage is is it just anticipating or already seeing pipelines slow or is there.
Liberate.
Tapping of the brakes on certain segments, and maybe particularly if you can address.
The address Balboa, just wondering like what's.
What are the components kind of driving that more normalized growth from what you saw this quarter.
Absolutely if there was an option C. Three of the four that would probably be the way that I would answer that.
It is a we do anticipate a couple of things one our pipelines are down at the end of the third quarter and we anticipated that said our pipelines are down so that is part of it.
Also the growth that we anticipate next year, we do anticipate that kind of across all metrics. So we do see the portfolio mortgage slowing down as well.
So not having I know last quarter, we put $500 million. This quarter, we did about $300 million. So we do anticipate that slowing kind of going into the fourth quarter and first quarter. There was no typically slower quarters anyway for loan growth and when you add the market softening on that a little bit, but we do still see that growth loan growth in the upper single digits and we.
We really see it balanced that's one of the things that we like about our balance sheet is all the diversification and the opportunities that we have so we between CRE and construction slowing a little bit, but then we still have premium finance and we still have we do have the mortgage and we have balboa.
So all of that combined we continue to look for diversified growth going into next year.
And how about Balboa in particular are they.
And the same kind of.
Thoughts in terms of slowing or.
Would you expect them to stay strong.
We expect them to kind of continue to grow at the same pace that they are growing.
For perspective at the end of the second quarter. They were at four 7% of the total portfolio and day.
At the end of the third quarter were about four 8%. So they are growing just to directly align with the size of the bank.
As we expand okay.
Right.
Maybe one quick follow up on.
On the margin.
You mentioned, how last few quarters been very impressive expansion.
But you alluded to the fact that you know.
Deposit costs deposit betas, probably accelerating from here, maybe just help us with that.
Trajectory of the margin looking ahead, a lot of banks have.
Two maybe there is further expansion, but not at the pace. We saw this quarter just wondering if it.
What kind of expansion out there and do we plateau in some point in 'twenty three.
You kind of help on that front. Thanks.
Sure absolutely and you're exactly right that we remain asset sensitive we're about 293% asset sensitive and if you look back to where we were at the beginning of the cycle. We were closer to 7%. So we purposely tried to get our balance sheet to become closer to neutral and we're working that way down.
Going forward you know.
Every 25 basis point of <unk> is about three basis points.
Based on the way, we haven't modeled so you're anticipating a 75 basis point rate hike in November you would expect our margin to increase yield five to seven basis points and that's being.
Pretty aggressive with our deposit betas and as I said on the call earlier, we only had about a 10% cumulative deposit beta compared to 23, where we modeled out at 23, our money market accounts and we modeled it at 55 data and those have been coming in closer to 25, and so we certainly have some room to be a little bit more aggressive to be able to retain.
Those deposits as needed.
However, we again kind of looking at margin going forward.
Continue to be asset sensitive for at least the next two quarters and then depending upon what the fed does in December and how lagging our deposit betas are going to be but we do continue to see some assets in margin.
Margin expansion at least for the next few quarters.
Great. Thanks, Nicole.
Great. Thank you Kevin next question.
The next question comes from Brady Gailey from <unk>.
Speaking of.
Good morning, guys.
Good morning Brady.
Maybe just to keep with the train of thought so if the margins up for the next couple of quarters with your asset sensitivity.
It feels like betas will rise does the margin plateau.
We get to mid next year and stayed flat or do you think there could be some downside just as you know the funding side kind of outpaces the asset side.
I typically don't like to give guidance out more than two quarters. So I don't want to extend too much but I think your thinking is right.
Remember how much of our balance sheet on the loan side is variable rate versus fixed and even though when you look at you know kind of straight call report data and we will kind of in that you know.
Very heavy on fixed rates theres, a large portion of our portfolio that re prices.
And short term basis, our construction book, our premium Finance book is about a 10 months duration. So even though it's technically a fixed rate loan is going to reprice. So we're a little bit more asset sensitive on the loan side from a variable rate perspective, So I think the big wildcard in all of it is the deposit side and we do.
Anticipate if the fed stops increasing let's say they go in November and December and then they pause.
Our loan side continue to reprice, probably as fast as what potentially the deposit side if they if they raise and then they haul for any lumpiness time, how long will that deposit lag take.
And so that's really the question so if we're thinking about it.
To raise in the fourth quarter, and then a lag for a long period of time I think there is an opportunity for the margin to kind of stabilize however, if there is a very short lag before they start declining as we're moving our balance sheet to come more on asset neutral.
We are preparing ourselves for that so is there an opportunity for it to maybe kind of taper out after after that second quarter guidance and taper out maybe in the third or fourth quarter. I think that is a possibility that I really don't like to give too much depth definitive guidance after that because theres. So much deposit behaviors that can offer that.
<unk>.
Yeah, That's fair Alright, and then my next question is on the expense side <unk> seen great expense containment I know mortgage.
Come down is helping on that effort, but how do you think about you know.
Wage inflation and the pressure on expenses going forward I mean, you printed a 50% efficiency ratio, you're saying, that's probably too low longer term and how how do you think about the expense side going forward.
Three.
Yes.
We did have that increase this quarter and excluding mortgage and.
The majority of that was was salaries benefits and incentive comp.
Compensation, and we definitely see the wage competition competition.
And so that will certainly increase we continue to look for ways to self fund that and not only the wayside, but also technology is one of the thing that really has driven our really diligent expense control is that we use we are looking for ways to use technology and when we look at how we're deploying <unk>.
Technology costs were looking really looking at is this a cost save or is this a revenue driver and there is obviously some.
Some technology that we have to deploy just just to stay current.
Really do you got reallocation of resources I do anticipate expenses and I think this is already built into to the street's consensus for next year that expenses could increase a little bit more kind of going into next year, just through wage inflation, but shouldn't have already this palmer one other thing to remember.
Reiterated several times is that when you look at it.
Our roads and the expectation for growth it is not predicated on having to go out and hire a lot of new talent and there are many banks that are out there right now they're having to recruit we've already absorbed all of those expenses and all of those costs or anything we really feel is more long lines of just normal wage inflation and I think as we get back to a tighter.
Labor market, that's good that should reduce some of that that that increase in the expense because it becomes obviously competitive now to retain talent, but at the same time, we are not in a position where having to go out and acquire talent to hit our objectives.
Yeah.
Yeah, that's a good point.
And then finally for me the gain on sale spread and margin took another step down here to 210 basis points at any insight on when those spreads could start to recover.
So I'd say, that's really predicated almost because you know when you look at it right now as you can see it in the MBS market to the desired by our mortgage has tapered off primarily because a lot of people are anticipating the fact that rates are going to be pulled back down you know next year, I think thats a bit premature personally in their thinking.
If they do then theyre going to refinance and so when they refinance there's less value margin almost digs alone. So I think that's all the psychology of it at this stage just based on the Fed's actions.
Alright, great. Thanks, guys.
Thanks Brady.
The next question comes from Jennifer Thunder from Choice Securities. Please go ahead Jennifer.
Yeah.
Thank you good morning, everybody.
Good morning, good morning, Jennifer.
Question on asset quality, it still remains terrific Palmer, what do you see as a normalized level.
No loan losses for Maris at this point.
So Jennifer this is John I'll answer that so the.
The annualized even though it was up a little bit this quarter not that materially annualized.
Eight basis points.
Going into next year, and having a little softening.
It certainly is going to be up from the last three or four years of historic lows.
I don't necessarily have a forecast number to give you, but I mean, you can estimate it to be a little bit higher.
Part of that as you see us in the rest of the banking industry sort of taking the initiatives.
Reserves to kind of build in anticipation about that so.
I think this year is still going to finish up probably in a pretty.
Abnormally low number but.
I think you could start seeing that normalize again.
What loan buckets are you most concerned about.
I would tell you it was not so much buckets as it is particular asset classes, perhaps not are concerned so much from our portfolio as it is that when we look at lending on a go forward basis is making sure we've got to focus on.
Companies that have operating cash flow more C&I lending, obviously office is a big concern for everybody as we go forward. So I think there are certain verticals like that that we pulled back on intentionally but in terms of.
The entire bucket.
We really don't have that.
Oftentimes.
We look at predictors out there and one of the questions that comes up often is Balboa capital and when I look at the asset quality. There is it has held up better than we had anticipated, but then again the FICO scores that are continued to inch up and the performance is still solid. So we do watch that one because I think it's a good predictor when youre looking at smaller businesses.
But all in all we feel pretty good and don't see like a lot of people don't see any any any cracks anywhere but that doesn't mean, we are being very cautious.
Thanks.
Yeah.
The next question comes from David Feaster from Raymond James. Please go ahead David.
Hey, good morning, everybody.
Good morning, maybe just maybe just following up on the asset quality side.
All our models, but kicking in criticized and classified and it looks like Balboa as ratio has actually improved quarter core just curious what youre seeing there it looks like it might be rising mortgage driven but just just was hoping you could.
Touch on that a bit and give us some color there.
Well.
David This is John so really the uptick a couple of things when you, yes, we referenced that really on slide 20.
The uptick.
Because of our increase in loan balances.
<unk> is on that chart on slide 20 is still about the best it's been in the five quarters that were.
Reflecting on that.
Classified to capital number is still low and so.
<unk> was really limited to just three borrowers primarily and so it's not widespread.
Just.
Really companies that I anticipate will.
Probably improve over the next couple of quarters in and arent really long term watchlist sitters.
Just because of.
Some you know.
Some numbers I saw this quarter I felt the need to put them on the watch list, but I didn't really look at them as kind of long term issues for us. So you know the <unk>.
Numbers are still good or criticized numbers better than it was last year at this time and are classified number stayed pretty low so overall asset quality is still.
I think pretty solid.
Was there any commonality among those those three borrowers.
Truly idiosyncratic.
Commonality I guess would be in the mortgage warehouse.
Mortgage warehouse borrowers and frankly, they just had to sort of downsized their operations to reflect the current market conditions and mortgages, but it in no way really impacted R. R.
Growing with them because we can.
$300000 average mortgage loans still pay off within 20 days of being on the line. So that it's not really an impact to our operation but.
Just wait for them to kind of react better and to the current market is what I was really looking for.
Okay that makes sense and then maybe I was hoping we could touch maybe on the funding side and how deposit flows are trending kind of at the higher.
The higher end of where you've historically operated from a loan to deposit ratio, but just curious how you think about funding in the non interest bearing deposit growth was great to see this quarter. Just curious how you think about funding and then could you maybe touch on the drivers of the borrowings this quarter just just given the robust cash balances you already have just.
Curious on that as well.
Sure David Youre Youre right and just as a reminder to everybody you know we do have cyclical public fund they typically come in in the fourth quarter in a day. So when you look at our balance sheet. We typically have elevated deposit so we do anticipate that coming in.
Already starting to flow in and continue to come in November December and then that'll continue kind of through the first quarter and before that runs out that's a normal cyclical without public side until we see some funding coming in that way.
The fourth quarter and then we also we continue to be very diligent on the deposit side and the funding side and our focus has really been growing core deposits and relationship banking and it's been that way.
We did an analysis recently, where we looked at.
Kind of our open accounts, firstly peers and the short version is that during the pandemic we didn't stop we.
Branch managers meeting customers in parking lots and more car six feet away.
We continue to open accounts in cell cell deposits and we we didn't shut down to the pandemic and we're kind of reaping some of those benefits today with our core deposits.
We did have some borrowings.
We are they are very much watching our liquidity ratio just.
And as everybody talks about a potential capital downturn and you see some liquidity.
Some other banks, having tremendous outflows of deposits that were very cognizant of that so we are trying to keep our liquidity at a certain level.
By our choice to do that and so we did go out and get some short term borrowings.
To kind of help that knowing that we had some cyclical funds coming in.
And then we also again I want to reiterate our bond portfolio you know that.
You can look back kind of in 2019, our bond portfolio was close to 10% of our earning asset and you look at it today, we're about 556%. So when people kind of look at our loan to deposit ratio you have to remember that we don't have.
As a percentage of earning assets our bond portfolio is much smaller than some of our peers. So we deployed some of that through the balance sheet through loans as opposed to the bond portfolio and we anticipate that leveling out over the next couple of quarters as well.
Good point.
And then maybe last one just touching on the premium finance had a strong quarter. That's the segment that doesn't get much attention.
I was hoping maybe just touch on some of the trends there and what's driving the strength and any expectations.
For the premium finance side going forward.
Yeah, we can we continue to see that as being a good steady performer and when you think about that business and the premiums associated with it and they're gonna customer base associated with it that doesn't that doesn't really change and obviously from a credit risk standpoint, its got very minimal risk.
And youre dealing with.
We have upfront premiums that are paid for us that we have in reserve. So yeah from an asset quality standpoint, and solid from a production standpoint is solid but we're hoping there we've seen a lot of consolidation in the industry. What we're hoping to do is actually garner a little more market share. So that's a big focus for 2023, so we might see some moderate increases in perm.
Your finance, but right now just continues to be an deliberative around very steady steady basis.
That's great alright, thanks, everybody.
Thanks, David.
The next question is from Christopher <unk> from Janney Montgomery Scott. Please go ahead Christopher.
Thanks. Good morning, just wanted to follow up on the credit question related to Balboa, as we think through the cycle, how can our risk adjusted returns evolve as rates go for higher or perhaps charge offs could tick up it does.
The two kind of offset each other or do you see some compression in the kind of risk adjusted salt, though overtime.
No.
Chris This is John so the production yields will follow.
With the <unk>.
Rate environment, so the charge offs running them better than what we anticipated. This time last year. When we were kind of forecasting it out I think those will.
Kind of work in lockstep together.
As you kind of mentioned there.
Great. So the impact on margin in the long term it still is.
Good if not better than as you thought about it last year.
Yes.
Great. Okay, and then just a follow up for whomever wants to take it all just deposit generation outside of the traditional bank channels are there opportunities still in the mortgage area and premium finance and its other relationships that you've brought down there over the last several quarters.
Yeah. That's a good question, Chris and it's something that a lot of banks have struggled with that are there kind of other non core lines as how do you generate the deposits in and relationships out of those more transactional typically transactional oriented models and what we have seen and what we're trying to do right now on several fronts as focus.
And on that with a lot of direct marketing. So we'll be doing a lot of that next year to capitalize on it but one of the things. When you look next year through our hiring process. If you will the majority of the new hires that we have budgeted which will probably reallocate some resources to accommodate.
The expense for is on the Treasury management side, we're doing a lot more on treasury management, so that will probably be the bright spot for us as we go forward next year with deposits and as you know those are stickier deposits are more focused on our CNI customer base and we've had some wonderful opportunities there with new hires as of recent and more importantly, the results.
Reflecting that initiatives. So that is a big push for US next year and so we've got some.
<unk> associated with additional hires throughout the network for that but I think thats, probably where were seeing most of the lift next year, but we will still continue to try and penetrate the Balboa is in the mortgage operation for for deposits and right. Now you know mortgage is a fairly good job of bringing in deposits because we.
Got a lot of escrow and tax money, obviously that comes in and that's it's a seasonal type of approach because obviously it goes out to pay insurance and taxes, but are they the Gulf of Aden, our relationships with their with our warehouse borrowers and the wholesale lending. In addition to all the tax payments insurance payments that come in.
So, but there's a lot more opportunity there, especially in footprint.
Great. That's helpful. Thank you for that background and then the call just a quick reminder, on the public deposits did those tend to have lower betas overtime.
They.
They can there's a blend of those and so the average blend is about accurate to what our historical has been yes. It's.
It's about average.
Great. Thanks.
Thanks again for all the time this morning.
Absolutely. Thank you Chris.
As a reminder, sauce any further questions piece Chris.
No telephone keypads.
Yeah.
There's no further questions at this time, hence I would like to thank everyone for joining on the wishes for the rest of your day you may now disconnect your lines.
Okay.
Uh huh.
Okay.
Okay.
Okay.
Okay.