Q2 2019 Earnings Call
Good day and welcome to the prosperity Bancshares' second quarter 2019.
Earnings Conference call.
All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.
After today's presentation there'll be an opportunity to ask questions. Please note. This event is being recorded I would like to now turn the conference over to Charlotte Brushy. Please go ahead.
Thank you.
Good morning, ladies and gentlemen, and welcome to prosperity Bancshares' second quarter, 2000, or 19 earnings conference call.
This call is being broadcast live over the Internet at prosperity Bank U.S.A. Dot com and will be available for replay at the same location for the next few weeks.
I'm, Charlotte Rasche, Chief Executive Vice President and General Counsel of prosperity Bancshares and here with me today is David Zalman, Chairman and Chief Executive Officer.
H G Tim Timanus Junior Vice Chairman.
Oh, so back to us Manav Chief Financial Officer.
Eddie Saturday President.
Randy Hester Chief lending officer.
Merle Karnes, Chief Credit Officer, and Bob Dowdell Executive Vice President.
David Zalman will lead off with a review of the highlights for the recent quarter.
He will be followed by also back Usmanov, who will want to use some of our recent financial statistics, and Tim Timanus, who will discuss our lending activities, including asset quality.
Finally, we will open the call for questions.
During the call interested parties may participate live by following the instructions that will be provided by our call moderator Jake.
Before we begin let me make the usual disclaimers.
Certain of the matters discussed in this presentation may constitute forward looking statements for the purposes of the federal Securities laws and as such May involve known and unknown risks uncertainties and other factors, which may cause the actual results performance or achievements of prosperity bancshares to be materially different from future results performance or achievements expressed or implied by such forward looking statements.
Additional information concerning factors that could cause actual results to be materially different than those in the forward looking statements can be found in prosperity bancshares' filings with the Securities and Exchange Commission, including forms 10-Q, and 10-K and other reports and statements we have filed with the FCC.
All forward looking statements are expressly qualified in their entirety by these cautionary statements.
Now, let me turn the call over to David Zalman, Nike Charlotte I would like to welcome and thank everyone listening to our second quarter 2019 conference call.
For the second quarter of 2019, we showed impressive returns on average tangible common equity of 14.82% annualized and on average assets of 1.46% 80 lives.
Our earnings were 82.2 million in the second quarter of 2019 compared to 81.5 million.
For the same period in 2018 and increase of $661000 or 80 basis points.
Our diluted earnings per share were one dollar an 18 cents for the second quarter of 2019 compared to one dollar in 17 cents for the same period in 2018 and increase of 90 basis points.
Our loans at June 32019, or $10.587 billion.
An increase of $441 million or 4.3% compared with the 10.147 billion at June 32018.
Our linked quarter loans increased $173 million or 1.7%.
6.7% on an annualized basis from 10.414 billion at March 31st 2019.
We saw strong loan growth in the second quarter, reflecting consumer and business confidence.
Our deposits at June 32019 were 16.888 billion, a decrease of 90 million or 50 basis points compared with 16.979 billion at June 32018.
Our linked quarter deposits decreased 310 million or 1.8% from 17.198 billion at March 31st 2019.
This quarterly decrease was primarily due to seasonality historically, our deposit balances in the second and third quarters are generally lower due to large customer income tax payments.
Farming customers, having declining balances as their crops have been planted but not yet harvested as well as public bonds, having lower balances from using their tax dollars throughout the year.
When comparing the second quarter of 2019 to the same period in 2018, our core deposits are higher but total deposits decreased slightly primarily due to public bonds investing in higher yielding investments outside of the bank.
It should be noted that when comparing quarterly average non interest bearing demand deposits. They increased 8.4% on an annualized basis when comparing June 32019 to quarter in March 31st 2019.
We are excited about our pending merger with Legacytexas financial group, the parent company of legacy Texas Bank.
Legacy, Texas Bank operates 42 locations in 19, North, Texas cities in and around the Dallas Fort Worth area, we look forward to partnering with Kevin Hanigan and the entire legacy, Texas team to build their Premier Texas based bank.
We had a number of opportunities, but believe that this strategic transaction provided the greatest opportunities for the combined organization at this time.
With the addition of legacy, Texas, we will have a significant competitive position in Texas, two largest metropolitan areas.
Prosperity is fortunate to operate in vibrant in growing states, we continue to see an employment growth and a tailwind from companies expanding in and moving to Texas, and Oklahoma due to a business friendly political climate and lower tax rates.
The Texas, and Oklahoma economies continue to pour perform well with record low employment.
Consumer confidence remain strong as evidenced by increased credit card purchases and businesses continue to do well as reflected by increased sales tax rebates to most cities in small towns.
We posted a 6.7% annualized increase in loans for the second quarter of 2019 also reflecting confidence from business and consumers.
Prosperity continues to focus on building core customer relationships, maintaining sound asset quality and operating the bank in an efficient manner, while investing in ever changing technology and product distribution channels.
We intend to continue to grow the company, both organically and through mergers and acquisitions, we want to develop people to be the next generation of leaders make every customers experienced easy and enjoyable and operate in a safe and sound manner.
I want to thank everyone involved in our company, we are helping to make it the success. It has become thanks again for your support of our company. Let me turn over our discussion to also back hostile mono our chief financial officer to discuss some of the specific financial results. We achieved also that.
Thank you Mr. Zalman net interest income before provision for credit losses for the three months ended June Thirtyth 2019 was 154.8 million compared to 161.8 million for the same period in 2018.
A decrease of 7 million or 4.3%. The decrease was primarily due to a lower loan discount accretion in the second quarter 2019, and higher than normal collection on non accrual loans in the prior year.
The net interest margin on a tax equivalent basis was 3.16% for the three months ended June Thirtyth thousand 19 compared to.
3.28% for the same period installs in 18 and 3.2% for the quarter ended March 31st 2019.
Excluding purchase accounting adjustments and the higher than normal collection on nonaccrual loans last year. The core net interest margin for the quarter ended June Thirtyth thousand 19 was 3.14 per cent compared to 3.12% for the same period in 2018.
And 3.16% for the quarter ended March 30, Onest 2019.
Non interest income was 30 million for the three months ended.
June Thirtyth thousand 19, compared to 28.4 million for the same period in 2018.
Non interest expense for the three months ended June Thirtyth 2019 was 80.8 million compared to 83.6 million for the same period in 2018.
The efficiency ratio was 43.74% for the three months ended June Thirtyth styles, and 19 compared to 43.95% for the same period in styles in 18 and 42.94% for the three months ended March 31st 2019.
The bond portfolio metrics at 630019 showed a weighted average life of 3.64 years and effective duration of 3.25 and projected annual cash flows of approximately 1.9 billion.
And with that let me turn over the presentation to Tim Timanus upon some detail on loans and credit.
Asset quality.
Thank you also that.
Our nonperforming assets at quarter end June Thirtyth 2019.
Totaled $41.558 million or 39 basis points of loans and other real estate.
Compared to 40 million.
$883000 or 39 basis points at March 31st 2019.
This is an increase of 675.
Thousand dollars from March 31st 2019.
The June Thirtyth 2019, nonperforming asset total.
It was made up of $38.883 million in loans.
$670000 and repossessed assets.
And $2.005 million and other real estate.
Of the $41.558 million and nonperforming assets.
16 million.
$595000 or 40% are energy credits all of which are service company credits.
Since June Thirtyth, 2019, $1.443 million and nonperforming assets have been sold.
Net charge offs for the three months ended June Thirtyth 2019 were a negative $115000 compared to net charge offs of $1.049 million for the three months ended March 31st 2019.
$800000 with added to the allowance for credit losses. During the quarter ended June Thirtyth 2019, compared to $700000 for the quarter ended March 30, Onest 2019.
The average monthly new loan production for the quarter ended June Thirtyth 2019.
Was $287 million compared to $284 million for the quarter ended March 31st 2019.
Loans outstanding at June Thirtyth, 2019 were 10.587 billion.
Compared to $10.414 billion at March 31st 2019.
The June Thirtyth 2019 loan total is made up of 38% fixed rate loans.
38% floating rate and 24% variable right.
I will now turn it over to Charlotte Rasche.
Thank you Tim.
Before we take questions. We wanted to provide you with a brief update on our pending merger with Legacytexas.
Last week, we filed the required regulatory applications with the FDIC and Texas Department of banking and we expect to file with the Federal reserve in the next week or so.
We have also begun our operational integration efforts with the team at legacy Texas to date, we have had multiple meetings between the managers and key employees of various departments at both companies to discuss current processes, including deposit operations loan operations compliance risk management mortgage origination and IP and information security.
We are impressed with the legacy, Texas team members and look forward to working with them.
We expect to close the merger in the fourth quarter of 2019, although delays could occur.
At this time, we are prepared to answer your question.
Jay can you please assist us with questions.
We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
If you are using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then too.
At this time, we will pause momentarily to assemble our roster.
The first question comes from Brady Gailey with KBW.
Please go ahead.
Thank you Hey, good morning, guys.
Good morning.
So I know.
Last quarter, we talked about the net interest margin.
Kind of being flat, if not up a little bit we saw it well.
A little of that.
This quarter it looks like it's from lower bond yield and some higher deposit costs.
As we look forward.
And you know I know, we're now looking at a couple of rig costs and the yield curve is doing what it's doing how do you foresee the net interest margin trending.
Well this is David.
Brady It again the numbers I'm going to give you is really based on the bank as we are today. So a lot of this is going to change when legacy is merged together, but if you look if you just took it in the slides that looked at the bank. The way. They are today I'll give you three scenarios with with no changes or interest rates stay where they're at.
We'll see.
We still see a net interest margin that increases pretty significantly more significantly in the 24 and 36 month timeframe.
If you take another scenario and you look at say interest rates go down 50 basis points, we see us a slight dip of about two basis points in the six and 12 month categories, but increases back in the 20 436 month category.
And if you look at interest rates down 100% you would see that that we would have a net interest margin of about three basis points, maybe three or four again this doesn't count any increase in loans.
Loan to deposit ratio, but if everything just stand exactly like it is maybe three to four basis points.
So all in all not not a real big change our best scenario courses interest rates stay where they're at or going out that helps the most but even going out 50 basis points in the longer term, we still were still positive, but having said this when you merge legacy bank in our bank together you should see some pretty significant net interest margin increased yeah. I would agree. This is awful back I want to add on little bit. If you look at for the second half of the year.
Our long haul core loan yield is five or four right now with putting the new loans that about 550 that will definitely help us.
On the margin aspect going forward.
The wildcard would be of course deposits, which cost of deposits went up by three basis points and that impacted our quarter, but what we saw this quarter that the cost of deposits stabilizing a bit and we're seeing the slowdown in terms of the increases in cost of deposits compared to prior quarters. So that should help us going forward, but like Mr. Saumen mentioned based on the model our NIM should improve I think overall I mean, I think I think though the pace at the what the right. The deposits increased over the past couple of quarters surprised everybody I think we have seen a stabilization in those in those and again I think that two things working for US is when we put loans on well get a better yield and where they're at right now and when you're putting securities on our securities yield today is still only 2.36. So we're reinvesting evolve today he'd probably be hitting closer to 270. So so we have some some gay.
Gains in both categories I think the you know I think that we're probably better positioned than than a lot of the other banks. It can be good or bad I would say that were more balanced enough. We were strictly a commercial portfolio in floating rate loans, we deftly would be impacted more it looks like we have about a third a third a third a third biggest rights or you know the third floating 30.
Fixed plus a variable so I mean, we're I think we're pretty balanced overall.
Okay, and then also the net premium amortization will secure and do a little bit higher this quarter versus Q1, I think Q1 was a relatively low compared to historically, but I'm going forward I would expect same level on Teradata is getting you saw a lot more refinancing this quarter with interest rates going down that and that's just natural to expect.
All right that's helpful and I know last quarter, we talked about de levering the bog look a little bit it looks like the bond book continued to come down.
Again in the second quarter do you see that continuing to trend down or are we to the point, where those balances should be roughly stable going forward.
Well, there's two there's probably an answer is two parts to that question one how much of your loans grow because that's where your money will come from.
From your bond book in and how much to your deposits grow were historically, its seasonally low and in this quarter and the third quarters historically, our our deposits grow 2% to 4% they were less than last year or so so there's two there's two things that are going on in that category, but I would say that you know if you had if you look at it historically you probably should still see boat roll a little bit I would think I think you should see some growth in loans and you should still see the balance the securities book grow also exit that's exact correct, because we want to invest in loans if possible, but the the decrease in the investments was.
Isn't alliance decrease on the other borrowing because our overnight rate is like 258 right now so thats. The reason we are running off a little bit our one of our portfolio and thus you see the decrease in the ballpark.
No line items I don't think it makes a lot of sense, we talked about this earlier borrowing.
Uh huh.
Exactly correct and it helps our margin as well run that management of balance sheet.
All right. That's helpful. And then just finally for me on the buyback you repurchased a little over 1% of the company. If I look at your the price per share of the 60 450, yes. It looks like you repurchased said kind of late in the quarter or maybe even after the legacy Texas deal with an Alf, but maybe just thoughts on future buybacks going forward in the back half the year.
Yes, you're exactly right. After we announced the legacy deal our stock took a dive and we felt that it was underpriced and we jumped in really involved the maximum that we could buy almost every day until the day that we we couldn't buy because because of our earnings announcement. So we we just felt that the price the price of the stock was really should be more and we jumped in and if it happens again, we'll we'll do the same again, we we like it we have a lot of capital and if the stock ever becomes disproportionate where it should be we'll be back in again.
All right got it thanks guys.
Mm.
The next question comes from Jennifer Demba with Suntrust.
Please go ahead.
Thank you.
Two questions.
First.
How old is the.
How does the new rate environment expectations now impact your accretion assumptions for the legacy, Texas transaction and my second question is.
What's your appetite for more M&A over the near term. Thanks.
I'll, probably turn the first part of the the first question Juniper to also make because he's done sometimes some calculations on what net interest margins should look like and how they may affect it and I'll I'll take the second question with regard to appetite of more mergers yeah regarding to accretion to legacy you're right with the raise decreasing probably were not going to see much of a discount that would have been previous acquisition that will definitely impact the <unk>.
Accretion going forward, but again, if you're talking about there so feel credit discount as weve spoken or I think previously that they're under Cecil that the discount on the credit becomes the allowance just starting January onest. So going forward, we should not see any of those accretion income from the credit side of it.
But with the rate environment slowing down or going down I think the discount a bit less than we've had previous acquisitions.
I think probably going a step further I think legacy on their own with rates going down well, probably see a lower net interest margin, but again, we have such a great opportunity because they have.
Chunk of money that's more.
I guess purchased money.
On the.
Federal home loan bank, one but number two.
They probably have 800 million or so in what we call Cds that are what do you call. Those Cds that are brokered broker Cds I think that we can replace that money with our core deposit are our core deposits our cost is what right now.
Our total cost of cost of deposits 62 basis, 62 basis points, where their overall, there's over 1%. So overall the combination of our two banks together is real beneficial both because it increases our net interest margin, but it also helps them dramatically.
So then unrelated to the second part of the question about.
Our appetite for more mergers and acquisitions and.
I don't want to scare anybody, but as I mentioned earlier. This is our first and foremost that we want to focus on.
The.
US and legacy together and make sure that everybody feels comfortable and they were going forward, but as mentioned earlier too and I think that Kevin feels this way the sign and I do we want to be able to Premier, Texas Bank and so I think that you will we will look we were looking at a couple of other transactions.
Before we did the deal with with the legacy It just seemed legacy was right you ought to do at this particular time, but there is still more step out there and I think that you will see us back in the market again.
Well up to the first question.
So when when you announced legacy said you thought 2020 earnings accretion would be.
A little over 10%. So you still feel that's achievable with some offset.
We we do feel we do feel that it's going to be achievable and it's only improving with the acquisition of the 800000 shares that we bought already and stop that helps our accretion as well too and that's why we like going out and if you remember to the.
Really we wanted to we want to really put about 25% cash down on the transaction legacy really.
Only wanted us to give them about 10% I think we settle somewhere in the 15% category of cash down. So we do have excess money and if we can buy in the market. The more we combine the market will only add to that accretion and I feel like.
The cost saves that we gave we're really.
That they were real but we always seem to do pretty good on that that into yeah. That's I agree I'm, 10% accretion 10, plus accretion assuming the full yeah, having a pool savings, but in 2020, probably we're going to realize 50% savings and 2021 will be 100% savings, you're just saying out.
Tommy integration, having situation, you're just making a point that we will get a 100%. The first yeah exactly that's why someone asked earlier that the 10 cents accretion I'm not going to happen in 2020, and 21 right right. Okay. Thank you.
Yes.
The next question comes from Michael Rose with Raymond James.
Please go ahead.
Hi, guys I'm, just looking at the legacy side this quarter it looks like they had some some negative migration.
This quarter, so I guess, what I'm asking is looks like some of those loans are going to be resolved potentially by the time the deal closes so could we expect the the credit Mark it's actually come down.
But I would say no because the the loans that you are seeing right now that have been reserved for or being charged off loans that we were identified Dave first of all they might have identified them, but more so than that we identified them also in our due diligence and so those those will all identified in the due diligence and those were marked appropriately I guess the market I guess you could say it like this I guess some more it would come down overall if you.
They are charged off.
But from our perspective, it really hasn't changed from what the original more it was that it would I guess I don't know if I mean very clear, but if they are charged off yes, then your mark will be down because it's already been taken into consideration, but I think the thing to emphasize is in the overall.
We havent seen anything and legacy has not seen anything that would change the overall aggregate market. We were talking about initially right I think that every everything that we're seeing right now and then but we know that they have I think they are aware of and we're aware of at the same time Theres nothing that was unexpected in this.
Understood and maybe just one more question as it relates to them they had a pretty nice bump in their mortgage warehouse. This quarter, we've kind of seen that across the industry. David What's your view on on that line of business. I know you guys have historically been in it but would just love any thoughts on what you would expect to do with that business once the deal closes. Thanks.
Yes.
I think as you get bigger you take on different lines of business, sometimes I think that you know.
We've always been more conservative in nature I think the legacy is taking more risk than we have I think that.
I think going forward.
Warehouse mortgage lending, Kevin feels very comfortable with it and so we're looking at it and I think that it's part of it's part of our when we went into this deal is part of something that we're going to keep bina.
I can't tell you that we're going to expand that to.
From a billion and a half to two anam billion or something like that but where it's at right now we feel comfortable with it.
Okay. Thanks for taking my questions.
Again, if you have a question. Please press Star then one.
The next question comes from.
Matt Olney with Stephens.
Please go ahead.
Hey, great. Thanks, Good morning, guys.
Good morning.
I want to circle back to the discussion around the margin and I believe you said the new loan yields are coming on around 5.5%.
Can you just clarify is that the average rate of the new and renewed loan yields in Twoq, you and has that changed at all over the last few quarters.
So 550 that we mentioned Thats, where the average we're putting on our books, but if you look at past few quarters. I think Q1 was on the average also 515 has not changed significantly with a you know rate expect rate change we were not sure how is going to impact, but right now what we see in our most putting it's 515.
I would say this meant to that.
Even when rates dropped extremely low.
We still there were still kind of a base of what we were charging especially on loans that we would fixed rate for three and five years I don't know that we really ever dropped below 5% on a fixed rate Randy you might answer we were probably in the mid fours, 4.5% when rates were at their lowest at the lowest but first of all we've been above five for a while.
I mean, I think there. She is there probably you know who knows what rates are going to be I don't want to forecast that but.
You know as you say I think that we're well positioned where we're at both because we have a certain amount of fixed rates in a certain amount of variable lights to.
Right.
And then on the liability side deposit cost still a great.
Especially versus peers, but I was surprised to see incremental pressure on the C.D. cost.
Thank you were up 16 bit sequentially trying to appreciate is that pressure is that incremental pressure in the metro markets that you guys serve or is this.
New and more emerging pressure in the rural markets said that you've avoided.
Over the last few years.
That's probably because of me.
[laughter] I saw I saw that you know we really are just are our Cds.
You know when I started in banking when we when the banks start it we probably had around a 30, 35%.
The ratio of Cds, and if we look today, we just don't really drops to 10 or 12 personal percent, 12% of Cds and we really felt like okay. That's enough. So again, we're not we're not leading the market you didn't see us go out and and offer a two and a half or 3% on a one year CD, but we did offer if you you know 2% on a one year and that was to try to keep our existing customers not to lose not that we're trying to go after the higher rate Cds, but we didn't want to lose more from where we were and I guess it was maintaining where we're at not going backwards more on the Cds and let me add to that a little bit David.
Michael what we're saying it.
Across the board in all markets I will say in the major metropolitan markets, we're not seeing it from the very large banks.
But as firstly, all financial institutions other than the very large ones. So we're seeing it in the smaller markets, we're seeing it in the larger markets both.
It's just not coming from the the chases and the bank of America is and people like that.
No I think that probably more regional and smaller banks more than anybody else. They their loan to deposit ratios are just set a maximum 100% and theyre doing whatever it takes to get money into the into the bank and paying very very high rates. That's correct I will say for a while we were saying.
A fair amount of competition.
Offering CD rates.
From one year going out I guess to as long as five years.
In the 2.5% to 3% range every now and then one a little over three we're not seeing much three anymore, but.
Two and a half is commonplace i. I see it every day.
So its still out there.
But overall I think that she gets I mean, I'm, making a statement like this I don't know that I.
Tim base it on so except for also backs comments as well that we do see somewhat of the pressure on rates stabilizing it may be coming down I mean, a year a few months ago. You did like you said to even see ads in the paper full page, 3% plus you know when you're not seeing that anymore.
That's correct for a while I was probably getting 10 to 20 emails a day.
From banking centers, having problems with customers wanting to move money to some of these very high rates, that's dropped down to maybe three or four or five a day. So it's still there, but it's not as prevalent as it was that's exactly correct.
Okay. Thank you guys.
Mm.
The next question comes from Jon Arfstrom with RBC capital markets.
Please go ahead.
Thanks, Good morning, everyone.
Hey, John .
Question for maybe David or Tim just on loan growth you had a good just big picture good overall loan growth quarter, but.
Does this feel like a good pace of growth for you or would you call out anything is unusual in terms of the.
The increase that you saw.
As of this moment in time, I wouldn't say that there's anything unusual.
From weight.
From what we can tell.
Things are stable.
I don't see any reason to expect.
Any large swings, but you know we all get surprised in the in the business World. So there are no guarantees but.
Everything is still healthy in our markets.
If theres any softness it's typically in the.
Office occupancy in Houston, and Dallas for example.
But those are our stable in terms of where they stand.
So I think it's business as usual moving forward for a while.
Yeah, I mean, I think overall when you look is sumarlin businesses everything looks pretty healthy I was I was going to qualify and sales went and looked at the first few days the quarter. It looks like we were getting off to a slow start however, when I looked last quarter. It started the same way we actually were.
A slower start we really came through at the end. So I don't see a whole lot of change the pipelines. The pipelines pipeline is still good and sometimes there's a bit of seasonality in the summer when everybody is on vacation.
It drops off this past quarter was reasonably decent far so we didn't see as much of a drop off as we have in some years. So.
As of this moment there is no reason to think it's not going to be stable.
And hopefully improving going forward.
Okay. Good thank you for that.
Most most of your loan categories look like they increase but this is a small category in energy, but it looks like it was down a bit.
Not necessarily asking about.
The growth there, but curious if you are seeing from opportunities and.
How you feel about the overall health of energy in general.
I don't know that we're seeing.
Significant additional opportunities.
I mean, there certainly are some.
I guess, our take on energy is one of caution.
The energy lending can be fine.
But it is what it is its cyclical always has been.
Sure and always will be.
You just have to be careful.
And not get overly enthusiastic when things look like they are improving a bit because before you know it they will deteriorate a bit.
So we're still in the energy business.
We're still making loans out there.
I would anticipate that that portfolio would be stable for a while I don't see it declining significantly and I don't see it growing significantly either.
Good.
And then David are helpful. But just in terms of the securities portfolio, you've talked about a little bit, but the rate environment, obviously changed a bit.
Over the last quarter or two I'm just curious if you're.
Thinking about doing anything different with the portfolio or is that just the same methodical approach that you always take.
I would say the same methodical approach if anything were really reducing the bond portfolio in putting the money into bonds really loans for the most part that's that's a week and we really with rates being lower the last month or so we really havent.
There hasn't been any need to go out.
Got to borrow money and around the world I agree to pay higher rates for Cts or anything so thats I think we're just sticking with the same strategy.
I agree.
Okay. Thank you.
This concludes our question and answer session I would like to turn the conference back over to.
Charlotte Rasche. Please go ahead.
Thank you Jake.
Thank you, ladies and gentlemen for taking the time to participate in our call. Today. We appreciate the support that we get for our company and we will continue to work on building shareholder value.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.