FinWise Bancorp Q1 2023 Earnings Call
Greetings and welcome to be Fine Wise Bancorp first quarter 'twenty 'twenty earnings conference call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation if anyone should require if.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad as a reminder, this conference is being recorded.
It is now my pleasure to introduce your host Brad Cohen Investor Relations. Thank you Brad you may begin.
Thank you operator, good afternoon, and welcome to N Y Bancorp first quarter 2023 conference call. The earnings press release is available on the Investor Relations section of the company's web site at investors got N Y Bancorp dotcom.
Note that this conference call is being recorded I would like to remind you that certain statements made in the course of this call are not based on historical information and May constitute forward looking statements covered by the Safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward looking statements.
I refer you to the company's filings made with the SEC turning its earnings release issued earlier today for a more detailed discussion of the risks and factors that could cause actual results to differ materially from those expressed or implied in any forward looking statements made today.
Company undertakes no duty to update any forward looking statements that may be made during the course of the call.
Additionally, certain non-GAAP financial measures will be discussed on this conference call.
Mentation of this information is not intended to be.
Considered in isolation or as a substitute for the financial information presented in accordance with GAAP.
Installation of these non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP can be accessed through the company's filings with the SEC, including its earnings release issued earlier today at Www Dot STC Dot Gov.
Hosting the call today are Mr. Ken and better she President Finlay Bank Corp, Mr. Jarvis Jacobson, Chief Financial Officer, and Mr. Jim now and President of <unk> Bank with that I will turn the call over to Mr. Atlanta better Ken.
Good afternoon, everyone and thank you for joining us on our first quarter 2023 earnings conference call.
On today's call, we will provide an update on our first quarter financial results discuss the impact of the macroeconomic environment on the company and the continued evolution of our business model.
Despite the challenging macroeconomic backdrop, our business remains resilient.
Our differentiated and diverse business model, coupled with strong execution allowed us to navigate these macro headwinds successfully during the quarter.
As a result of this just remain profitable credit quality was in line with our expectations and we are investing in the business for future expansion and to grow capital for our shareholders.
In addition, following the recent bank liquidity crisis. We are pleased to report that our balance sheet and liquidity positions remained strong deposits continued to grow and exposure to interest rate risk on our investment securities remained minimal.
For the first quarter of 2023, despite ongoing contraction in capital markets for certain loan assets, we generated revenue of $18 million led by loan originations of point 9 billion net in come of $3 9 million and diluted earnings per share of 29.
While general credit tightening has impacted our loan growth in the quarter, we believe that the trade off between credit and growth is appropriate in this environment. Despite these factors we produced a return on average equity of 11, 1% during the quarter maintaining our profitability.
Furthermore, we continue to manage our capital prudently by investing in our business to fuel future growth and repurchasing our stock below tangible book value.
At the end of the first quarter, the company's tangible book value per common share was $11.26 as compared to $10.95 per share at the end of the prior quarter.
As we communicated on our 2022 year end call, we had anticipated the pressures from the economy would persist throughout 2023. However, what was not as clear was how abruptly change and industry wide originations would be in the first quarter as.
As we look ahead, we believe that we are prepared to deal with similarly challenging economic headwinds should they persist over the next few quarters.
While it remains our intent to continue to invest and build on our past success to further diversify our income and funding streams. This will take time.
That said, we continue to focus on producing diversified sustainable and profitable growth as the environment evolves over time.
In short even with the challenging start to the year, our long term strategy and focus remain intact. Let me provide an update on our key objectives as we move through 2023.
We remain committed to securing additional revenue growth opportunities and continued execution in our existing business lines.
Focusing for a few minutes on our strategic programs business.
To support our current platforms remained strong and we continue to work to forge new relationships and bring new platforms on board.
As we look to the future the importance of securing new strategic programs to driving diversified growth for Finn wise remains a key priority.
However, as we've discussed previously it can be a multiyear process to build a relationship that contributes meaningfully to our revenue.
Specifically based on past experience in any given year. It can take one to two quarters to launch a strategic program and beyond that it can take many more quarters before we would see originations related to a new program contribute significantly.
Thus in line with our long term strategy, we continue to pursue new opportunities to engage with new platforms.
Another area of focus is it further expansion of our footprint in the banking as a service ecosystem, where we see strategic growth opportunities and supported this focus we have made key personnel hires during the quarter, including Robert tile as our Chief Fintech officer, along with two additional.
Well established banking as a service sales professionals.
During the quarter. Despite recent increases in market interest rates SBA seven loan originations remained strong.
None of the guaranteed portions of these loans were sold during the quarter, which meaningfully impacted our SBA gain on sale revenue compared to prior periods.
However, we continue to believe that over the longer term. This shift will result in stronger held for investment loan growth and support incremental growth to our net interest income.
In addition, as part of our strategy to diversify revenue streams. We are working to further grow and expand our legacy commercial leasing business, which started over 10 years ago.
As anticipated our efficiency ratio rose in the quarter. This was due primarily to our decision to focus on positioning the company for future growth opportunities. This man the continued investment in people and infrastructure, including administrative support technology systems and the expansion of our bank.
<unk> as a service product line.
An important and exciting development that we believe further strengthens the leadership team is the first quarter promotion of Jim Newton two president of the bank, we believe that Jim's vast industry experience vision and Paas contributions will search N y as well and speaks to our effort to develop a strong team of leaders.
To support our growth.
Beyond investing in the team we expect to continue to make investments to deepen relationships with our current customers pursue new customers and be positioned to take advantage of growth opportunities, particularly as the macro economy improves.
As part of our ongoing efforts to effectively navigate the environment with reduced loan originations, we are seeking to identify additional ways to utilize our balance sheet, including prudently, adding credit risk as we discussed on prior calls.
One area, we remain extremely vigilant in is underwriting.
And maintaining our disciplined approach to growth.
We believe we have demonstrated strong risk management efforts that have enabled us to sustain sound credit quality through various credit cycles.
In the first quarter as anticipated the overall credit performance of our portfolio has remained strong with no significant deterioration beyond the ongoing industry wide normalization of credit to pre pandemic levels.
However, as we've discussed in the past we remain committed to ensuring our credit quality remains a core focus.
While this thoughtful approach could hinder the rate of growth. We know it is critical to stay disciplined. This is our conscious decision to operate in this manner given the uncertain macro environment.
We know there's some of our loan origination platforms have seen larger declines than others as a percentage of total originations as we look at year over year comparison. This dispersion continue to evolve reducing our reliance on the originations of any one platform.
As we look ahead, while macro uncertainties remain we believe that our long term business fundamentals remain intact, and we are well positioned to navigate the current environment and for long term growth of our business. We are committed to maximizing long term shareholder value by positioning the business to capitalize on growth.
<unk> that may emerge when the market stabilizes and the industry returns to growth.
With that let me turn the call over to Javits Jacobsen, our CFO , who will provide you with more detail on our financial results.
Thank you and good afternoon as Kim mentioned, we are pleased with our first quarter results. Despite the industry wide headwinds.
To discuss our financial results for the first quarter relative to the prior quarter and the first quarter of the prior year provide color on the transition to cease all accounting and discuss credit quality.
Loan originations totaled <unk> 9 billion for the first quarter compared to $1 2 billion in Q4, 22, and $2 5 billion in Q1 'twenty two.
The change from the previous quarter and prior year period was primarily due to a continued contraction in capital markets, where certain low now so it so as a result of the challenging macro environment and our conservative underwriting to manage credit.
In addition loan origination activity has historically followed seasonal industry patterns loan originations and balances tend to decelerate in the first and second quarters of the year and rebound in the third and fourth quarters of the year, primarily due to seasonality of income tax refunds and borrowers spending patterns.
Looking forward given the challenging macro backdrop, we believe that the industry wide slowdown in originations could persist as we move through 2023 until macro conditions improve possibly overwriting the traditional seasonal industry patterns.
Average loan balances comprising held for sale and held for investment loans were $294 million during Q1.
An increase of 11% from 261 4 million in Q4, 22, and a 2% decrease from $296 7 million in Q1 'twenty two.
The change over Q4 in the prior period is primarily driven by continued growth in our SBA seven day program, partially offset by decreases in our strategic loan programs.
Despite industry wide liquidity pressure, resulting from the failure of a certain base in recent weeks. We are pleased that we grew deposits in our balance sheet and that our liquidity position remained strong during Q1.
Average interest bearing deposits were $165 2 million during Q1 compared to $126 1 million during the prior quarter and $132 5 million during Q1 'twenty two.
The sequential increase from Q4 was driven mainly by an increase in certificates of deposit partially offset by reductions in money market deposits and interest bearing demand deposits the year over year increase from Q1, 'twenty two was driven mainly by increases in interest bearing demand deposits and certificates of deposit.
Partly offset by a reduction in money market deposits as.
As we have noted previously non interest bearing deposit levels have historically had a high correlation with origination volume from our strategic programs in.
In addition to our insured deposits from traditional sources, our business model is differentiated in that it contractually obligates loan origination platforms to maintain certain levels of deposits within wise.
This has provided another reliable source of funding that many traditional banks do not possess and this can be useful in times of funding uncertainty. In addition, a significant portion of the uninsured deposits on the banks balance sheet is our own capital taken together our deposit base remains sticky and continued to grow despite the challenging.
Recent events in the banking industry.
Now turning to the income statement.
Income for Q1 was $3 9 million compared to $6 5 million in Q4, 'twenty, two and $9 4 million in Q1 'twenty two.
The change from the previous quarter and prior year period was primarily due to lower gain on sale lower strategic program fees and increased interest expense on deposits, partially offset by a reduction in noninterest expense and lower provision for income taxes.
Net interest income for Q1 was $12 1 million compared to $12 6 million in Q4, 'twenty, two and $13 million in Q1 'twenty two.
Change relative to the prior quarter and the prior year period was primarily due to an increase in the bank's deposit rates being paid to customers and lower average loan held for sale balances, partially offset by a shift in our mix of loans held for sale, so those yielding higher rates and increase in rates on our own.
Variable rate loans, and an increase in interest rates being paid on our cash balances at the federal reserve.
Net interest margin for Q1 was $12 five 1% 176 basis points lower than 2000, 14.27% in Q4, 'twenty, two and 86 basis points lower than 13.37% in Q1 'twenty two.
Changed from the prior quarter and the prior year period was primarily due to a reduction in the average balances in our loans held for sale portfolio, along with the shifting of the deposit portfolio mix from lower cost deposits to higher cost certificates of deposit partially offset by an increase in average balances in the loans held for investment.
Portfolio.
Noninterest income was $4 5 million in Q1 compared to $9 8 million in Q4, 'twenty, two and $11 7 million in Q1, 'twenty two the change from prior quarter and the prior year period was due primarily to a reduction in gain on sale of loans due to the company not having any sales of SBA loans in Q1.
Twenty-three and lower strategic program fees as well as a decrease in fair value of the company's investment in business funding group LLC Yep shoes.
We expect the fair value of our investment in BHG will continue to experience quarterly fluctuations, partially driven by general market movements.
Noninterest expense during Q1 was $8 7 million compared to $10 2 million in Q4 of 22 9 million during Q1 'twenty two the change from the prior quarter was primarily due to a recovery owner SPD servicing asset during 2023 and reduced accruals for performance bonuses.
The improvement over the prior year period was primarily due to the cessation in June 22 of commission accruals related to the company's strategic lending program and reduced accruals for performance bonuses, partially offset by an increase in consulting fees.
Company's efficiency ratio was 52, 5% during Q1 versus 45, 6% during Q4 'twenty two from 36, 7% in Q1 'twenty two.
We've noted in past calls, we expect the company's efficiency ratio to increase as we continue to build out our infrastructure to position the company for sustainable long term growth.
We will strive to be prudent with expenses in light of the telco macro environment.
Credit quality performed in line with our expectation with nonperforming loans total loans of 42% at the end of Q1 compared to <unk>, 1% for the previous quarter and 2% for Q1 'twenty two the COO.
Company's provision for credit losses was $2 7 million for Q1 compared to a provision for loan losses of $3 2 million for Q4, 22, and $2 9 million for Q1 'twenty to.
The modest change in the provision was primarily due to a decrease in strategic program loans held for investment and lower net charge offs.
On January one this year, we implemented seasonal credit accounting, requiring us to provision estimated lifetime credit losses based on historical loan performance and prevailing macro trends.
Which resulted in a seasonal adoption adjustment to retained earnings of approximately $43 million.
Point 2 million net of the deferred tax impact.
During Q1 net charge offs were $2 9 million compared to $3 2 million during Q4, 22, and $2 8 million during Q1 'twenty two the company's net charge off rate as a percentage of average loans for Q1 was 4% compared to four 9% during Q4, 'twenty two and three 8%.
Q1, 'twenty two the change in net charge offs compared to the prior quarter was primarily due to lower net charge offs related to strategic programs.
The change in net charge offs compared to the first quarter of 'twenty two was primarily due to higher net charge offs related to SBA loans.
We continue to be well reserved with an allowance as a percentage of total loans of 4% for Q1 compared to four 6% for Q4, 'twenty two and three 7% for Q1 'twenty two.
Given our team's experience and the data advantages of our business model, we have been exposed to credit across a wide range of different quality choices and segments, which has enhanced our ability to price risk appropriately and create value through our disciplined underwriting process overall, we remain prudent and expect to maintain our already tight.
Underwriting standards.
With respect to capital levels with a 24% leverage ratio of the bank remains significantly above the 9% well capitalized requirement.
<unk> effective tax rate was 26, 1% for the first quarter compared to 27, 3% for Q4 22.
25, 4% for Q1 'twenty two.
As part of our effort to be good stewards of capital in Q1, 'twenty three we bought back a total of 23573 shares for approximately one 2 million.
With that I would like to open up the call for Q&A operator.
Thank you we will now be conducting a question and answer session.
To ask a question. Please press star one on your telephone keypad.
Confirmation tone will indicate your line is in the question queue.
You May press Star two if you would like to remove your question from the queue.
Participants using speaker equipment it may be.
Maybe to pick up your handset before pressing the star key one moment, while we poll for questions.
Thank you our first question comes from Andrew <unk> with.
Piper Sandler. Please proceed with your question.
Hey, guys. Good afternoon, Michael on for Andrew I wanted to start off you know kind of what's the tone, you're getting from your strategic programs on origination volume and is there kind of a natural floor to that level of originations per quarter kind of absent economic headwinds.
Hey, Michael this is Jim.
So originations were under pressure in the first quarter and we foresee a continuation of this throughout 'twenty three.
Originations look like an aggregate dollar terms at the end of the year is not clear, but we not unlike others don't anticipate a return to 2022 origination levels in the near term.
I believe that the origination levels in Q1 could be the high point for the year.
While originations are down we feel comfortable with how we position the bank for today's environment.
We continue to invest in the business and focus on opportunities to extend the franchise long term.
Got it and then kind of switching gears over to the U S. P. A drop it was pretty impressive this quarter.
How does that production trending does it follow any seasonal patterns throughout the year and is this pace repeatable from here on out.
Sure Theres not seasonal patterns through the SBA.
What you see for the market generally is there is growth going on.
In aggregate, but I wouldn't say that that's necessarily indicative of being wise.
Lots of times, what you'll see new banks get into the market that weren't in previously that has a tendency to increase the market size like in aggregate.
You'll also see banks use the product that you know.
Storage, we may have shied away from it so.
Yes.
The simplest answer is.
There is some lagging.
Some lagging volume.
From the pipeline that are.
Closed and funded in Q1, I would say that you know as rates rose.
The demand in that product will continue to be soft.
Got it.
And then yes.
Some puts and takes on unexpected would be helpful. I mean, it sounds like there's some ongoing.
Hiring hiring within some growth avenues that you are pursuing this year.
The trend kind of be a little bit higher from this point or any color on the cadence of those investments are.
Whether it's the banking as a service or additional head count would be would be helpful.
This is Jeff.
The.
The change from the quarter over quarter, I think what Youre seeing mainly there is a as the decrease in the.
The bonus accruals a performance bonus accruals. So that's just.
The factor of the overall.
Profitability of the company so as long as that trend continues I think I think that's what you would look at is our historical trends there.
As far as our build out you're right. We've we've continued to hire additional.
Professionals, specifically in the banking as a service area during the first quarter.
Uh huh.
And you know we built a core.
A group of those individuals and then and then we're just.
We worked through the the the launching of it.
Yeah, Let me just add to that you know we this is in line with the evolution of our business strategy and we really you know that we've been describing for a while and we really haven't seen anything that makes us want to rethink. This strategy, we're still very committed to doing things right and everything but.
Want to.
The position so when the market returns, we're in a very strong marketing position and not playing catch up.
Understood that makes sense and then I guess, what cat like related to that banking as a service strategy can you provide any color at this point of what that might look like for <unk> in the future and how like how can we expect them to build out that will take some time to materialize or is there opportunities that that.
You can expect in the near term.
Yeah, that's a great question.
There is.
To kind of give you a sense of what we're talking about we're talking about some first first strike opportunities of providing some of these services to some of our existing partners. So some of that may be a lower hanging fruit I don't see a ton this year coming from that but.
If you think about things such as payments are debit cards or things like that.
It would be helpful to our partners, that's probably where we would start that there's a lot of opportunity in this area that we think can that we can take advantage of.
Okay.
Got it and then one last question on the sequel adoption for me here can you provide any additional color on what some of the important drivers of the seasonal model or for you specifically I mean, the balance sheet and the loan loan growth is a little bit different than than other banks, who do seasonal as well so any color there would be helpful.
Yeah.
Michael It lots of times I think people will ask about like the Andrew.
Yes.
Economic statistics, where releases that come out with our model what's more impactful.
If you remember how we reserve specifically for our <unk> portfolio, which is a big part of the reserve is based on the high watermark for each individual program. So there's five total programs in that S. P. HFC portfolio three of which are active two of which are inactive.
Use the high watermark methodology for each of those programs is much more impactful than that.
I'd say like the.
<unk> forecast or things like that so those economics.
Data releases are part of our qualitative factors, but I would point you more towards the high watermark used for each of those programs in our <unk> portfolio as being more impactful.
Got it that makes sense. Thanks, so much for the time guys I'll step back.
No problem.
Thank you. Our next question comes from Andrew Charles with Stephens. Please proceed with your question.
Hey, guys good afternoon.
Hi, Andrew.
First Jim Congrats on the on the promotion very well deserved.
Thanks, Andrew Yeah.
Maybe just following up on the last part of the seasonal adoption of methodology.
Are you able to disclose what.
What type of what is the high watermark on a blended basis for the strategic program loans and then what type of.
Hmm.
Watermark assumptions you use on the SBA portfolio as well I'm, just trying to think of the constituents of the blended reserve.
Sure. So I don't have the blended so just to be clear on the <unk> portfolio, which we referred to in the methodology is like the vintage portfolio.
That is where the high watermarks are being used the SBA portfolio as part of let's just call. It like the traditional bank, which includes local lending retail leasing high watermarks or not being used in that traditional bank portfolio. It's just the S. P. H F <unk> portfolio, where those high watermarks are used.
As far as what the blend is I don't have that offhand, what I can tell you.
Is that we.
<unk>.
We pointed to.
Some of the some of our partners that have public information out there as far as either securitization data or they have shared.
Sure is publicly traded and they've got like 10-K's, and prospectuses that have been filed.
Those are.
Somewhat indicative is probably the best way to put it because lots of times, we will use like an annual cohort instead of a monthly and you get a lot more variance in the monthly cohort, meaning like we will have typically a higher high watermark and what you will see in the annual cohort data in those filings.
There is not a good way to kind of estimate.
Off hand, what that blend is.
I don't have it for you right now.
Can tell you that we did have give me one second.
Did have one program.
Establish a new high watermark during the quarter, our material high watermark during the quarter.
That program is.
You look at it as a percent of the total.
Bank loan portfolio, though is like less than 3%.
So why are we are reserving.
Hum fairly conservatively within each of those retention portfolios any one of them individually has a fairly small component of the of the total loan portfolio at the bank.
Okay.
I appreciate that's all Super helpful color Jim.
<unk>.
If I can move over.
And just a follow up on the.
A question around the originations.
I guess I'd be curious if the other 908 million in originations in the first quarter.
What percentage of that.
Was comprised of your largest.
<unk> partner, I guess I'm trying to think about.
Split here like how much of it driven by.
One one larger partner versus the remainder of your strategic partners.
So we haven't disclosed it.
But what I can tell you is that.
What we have disclosed is that the.
Securitization markets are.
Our larger partners are more sensitive to the securitization markets and Thats, where we have seen a.
More of a decrease in total originations so I think it's a fair.
Conclusion from that that.
Of the $908 million in originations.
You see more diversification amongst all of our partners then you saw.
A year ago right.
Yep Okay.
I'm trying to get to greater diversification today.
Yep.
Okay.
The deposit front I guess it was pretty impressive to see some noninterest bearing growth. This quarter can you maybe talk about some of the drivers behind just noninterest bearing deposit flows in the quarter and then separately on the deposit front.
Are you able to quantify how much of the time deposit growth this quarter was brokered in nature.
Did HSA contribute to any of the deposit growth you guys saw this quarter.
Yes.
Andrew there's quite a bit packed in there let me start with this.
As of the end of March approximately 85% of our deposits are either insured by the Fda's C.
Our own capital, where our contractually required in our strategic lending businesses.
Another 6% spread across operating accounts owned by nine separate strategic lending programs and the remaining uninsured deposits representing approximately 9% of total deposits are held by a diverse group of commercial and consumer deposit or is on the retail side of our business.
So as.
As far as what percentage of our deposits are broker deposits.
We haven't disclosed that in the most recent earnings release.
It's not an insignificant.
Part of our funding stack, we've talked in the past about what that funding stack is.
We continue to raise a meaningful portion of our deposits from our retail branch in Sandy, Utah and then we have a significant source of deposits coming from our strategic lending program, where the platforms are required to maintain certain reserves with us and we had that account with us.
<unk> lively.
The sources HSA deposits, we launched that last year in 2022.
And then we've got the wholesale deposits.
Continuing to represent a significant source of reliable deposits for the bank.
If you look at our our growth in Cds on the on the chart that we published in the earnings release, you can see a pretty significant increase in time certificates of deposit.
You'll you'll see on the call report that gets filed this week.
A significant portion of those new deposits are short term in nature.
I think our I think that answers most of your questions. I think you asked about noninterest bearing demand deposits we saw growth.
Yeah.
The end of the period, we were up a million, but if you look at the.
Look at the the average table on non interest bearing deposits you can see that our average for the quarter is actually down and that has a direct correlation with our volume on the on the strategic business did I check all the boxes for you there Andrew.
Yeah, No I think so.
Yes, I think that's all.
I appreciate it.
On the on the time deposits specifically.
I guess I've got I'm looking at about 50% of total deposits are comprised of timeshare certificates right now.
I guess within your Alco framework or Guardrails do you have any any internal governors on the relative mix of time deposits versus the source from from other types of accounts or I guess is there a <unk>.
Stop when you hit a certain threshold on on time deposits.
There isn't.
Okay.
Got it okay.
And do you have the weighted average price for the repurchases made this quarter and then can you talk with your appetite for incremental buyback I mean, you guys have a really strong capital position.
Yes.
We haven't disclosed the average price, but we did we did show that the dollar amount is roughly $2 million. So 200000, and I think we gave the number of shares as well and the earnings release is 23000.
573.
So and then as far as our appetite goes.
We continue to.
Purchased those shares below book value as the liquidity opportunity is available to us.
Okay.
And then on the expense front.
<unk>.
Okay.
Yes.
I know you have talked about a few hires made this quarter.
But it looks like comp was comp was down I'm not sure what the <unk> seasonality.
But can you talk about maybe the puts and takes on the expense run rate in the second quarter and how we should think about the progression of expenses through the year.
Yeah I think.
As we mentioned earlier in the call.
The main difference between.
Last quarter in this quarter.
Salaries and employee benefits has to do with the accruals of bonuses with performance based bonuses so to the extent that the company's performance stays the same.
You'll likely see.
No change in that or no significant change in that.
Category aside from what we've talked about already the build the building infrastructure of the continued.
Building, our bench here at the bank with seasoned professionals.
Okay. So maybe just think about it.
Modest continued growth on the expense run rate as you invest.
Yeah that sounds right.
Okay.
Last for me just a modeling question on that.
Expected tax rate moving forward.
Yeah, we talked a little bit about that soon as our non deductible.
Comp drops off its likely to revert to the levels, we've seen in the past.
Okay.
Can you just remind me.
When that occurs.
It's it's happening in Q2.
Understood.
Alright, well that's it for me thanks for taking the questions.
Thanks, Andrew.
Okay.
Great. Thank you there are no further questions in the queue.
Okay, well. Thank you everyone with there being no further questions, we will call the call too.
The closed care, but I wanted to thank you for your interest and ongoing support of our bank and we're very excited about the future. Despite some of the headwinds we have right now.
We're still feeling the resilience of our business model and investing in it and.
We're excited about the future.
This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
<unk>.
[music].
Yes.
Yes.
[music].
Sure.
[music].
Yes.
[music].
Yeah.
Okay.
Yeah.
[music].