Q2 2024 CrossFirst Bankshares Inc Earnings Call
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Speaker Change: Good day and welcome to the Cross first Bancshares, Inc. Second quarter 'twenty 'twenty four conference call.
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Please note this event is being recorded.
I would now like to turn the conference over to Mike Daly, Chief Accounting Officer, and head of Investor Relations. Please go ahead.
Michael John Daley: Good morning, and welcome to Crossroads Bancshares second quarter earnings Conference call before we begin please be aware. This call will include forward looking statements, including statements about our business plans and growth opportunities.
Control initiatives as requirements and sources of liquidity and capital allocation strategy plans and our future financial performance. These comments are based on our current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from these statements.
Our forward looking statements are as of the date of this call and we do not assume any obligation to update or revise them, except as required by law.
Vince made on this call should be considered together with the risk factors identified in today's earnings release, and our other filings with the SEC.
Michael John Daley: You may also refer to adjusted or non-GAAP financial measures a reconciliation of non-GAAP financial measures to GAAP financial measures can be found in our earnings release.
These non-GAAP financial measures are not meant to be a substitute for or superior to financial measures prepared in accordance with GAAP.
Our presentation will be prepared remarks from Mike Maddox, President and CEO of <unk> Bankshares, Randy Rapp President of prosperous Bank and bank cloud CFO of prosperity Bancshares.
Revision of our prepared remarks, our operator, Bethany will facilitate a Q&A session.
At this time I would like to turn the call over to Mike who will begin on slide eight of the presentation available on our website and filed with our earnings release.
Good morning, and thank you for joining us to discuss cross first second quarter financial results I'd like to start by thanking our Colorado Springs market, President Cory Libert, and our Colorado Springs team for hosting us today for the call.
Our company had a great quarter, delivering solid earnings growth and maintaining strong credit quality and strategically returning capital to shareholders.
We increased earnings in the quarter to $18 6 million or <unk> 37 cents per diluted share.
The earnings growth as a result of our focused strategy to scale, our markets verticals, resulting in an expansion of net interest income and fee income.
In turn we continue to drive operating leverage across our expense base.
Not only just be increased earnings, but credit quality improved in the quarter and we continue to feel good about our reserve levels against lower classified assets at manageable nonperforming balances.
I also want to highlight the longer term progress we've made as evidenced by solid growth in year to date operating revenue.
Over 6% growth in adjusted net income compared to a year ago.
Despite the increased cost of deposits.
We are pleased to see steady performance in our fee lines.
This charge and credit card revenues growing at a combined 17% year over year through the first six months.
We continue to focus on initiatives that drive profitable growth.
The investments we have made in new markets technology and talent.
Total assets grew to $7 6 billion, an increase of 2% from the previous quarter led by loan growth from our dynamic, Texas, Colorado and Arizona markets.
Michael John Daley: We continue to see selective new business opportunities.
We have strategically moderated loan growth and remain focused on quality relationships, while strictly adhering to our credit underwriting and pricing guidelines.
We are fortunate to be located in great markets with strong economies, which we believe will allow us to continue to purchase steady growth with high quality customers.
Building density in scaling our markets continues to be a priority.
As I mentioned, we continue to be pleased with our credit quality metrics.
Past dues non accruals non performing assets and classified assets are all improved in the quarter.
We acknowledge that market conditions continue to apply pressure to borrowers across the country.
We are actively monitoring credit risk through regular portfolio reviews quarterly deep dives across all lines of business.
And regular reviews by independent third parties to validate our assessment of risk in the portfolio, which Randy will cover in more detail in a moment.
Deposit growth continues to be an area of focus and we continue to make progress on a number of our deposit initiatives.
The second quarter is always challenging for deposit growth as our customers make tax payments in April.
Despite those headwinds we drove net growth in client deposits led by Texas and our energy group.
We also made progress this quarter on our focus to improve our efficiency ratio.
I'm pleased to report that we completed a successful negotiation of our core services contract, which we expect will result in meaningful savings.
Dan will cover the details during his remarks.
Yeah.
Our strong earnings growth allowed us to both build capital in the quarter, while also returning capital to our shareholders through our share buyback program.
For much of the quarter, our stock price was trading at a price that we believe does not fairly reflect the true value of our company.
We took advantage of that opportunity and bought back stock at an average price well below book value, which is highly accretive.
Each of our shareholders.
We plan to continue to leverage our earnings power to build capital while also remaining opportunistic with the buyback.
Finally, I'd like to thank our employees for their continued hard work their expertise and their strong commitment to our clients shareholders and communities.
We have a team of highly experienced bankers, who remain focused on optimization and efficiency as we continue to scale our operations, while enhancing franchise value.
And now I'd like to turn the call over to our President and Cross first Bank Randy Rapp.
Thanks, Mike and good morning, everyone. In Q2, we continue to report solid loan and deposit growth increased fee income and improved credit metrics total loan growth for the quarter was 95 million, resulting in a growth rate of 6% on an annualized basis.
Primary contributors to growth in the quarter were C&I energy and commercial real estate.
In Q2, we hired an experienced C&I team in the Dallas market that was able to move a significant number of long term relationships late in the quarter.
Growth in CRE was primarily fundings on existing construction facilities in the multifamily and industrial space.
We continue to focus on increasing loan yields and the average loan yield on new production in the quarter was a strong 893%.
At quarter end average C&I line utilization was 52%, which is above the historical usage percentage rate of 50%.
As expected portfolio churn increased slightly during the quarter and is now at a historical average levels.
Continue to expect this churn to increase over the next several quarters, primarily in the commercial real estate portfolio.
Michael John Daley: Our loan portfolio continues to remain balanced with 44% in commercial real estate and 44% in C&I and owner occupied real estate.
Michael John Daley: Energy Outstandings were 234 million or 4% of total portfolio.
On slide nine you can see there remains good diversity within each of those portfolios with the highest CR V property industrial accounting for 22% of total CRE exposure and the largest industry segment and C&I being restaurants at 12% of C&I exposure.
And four 4% of total loans or.
Our exposure in the restaurant space is primarily to improvement in quick service operators with multiple locations and there remains good brand granularity in this portfolio.
In the CRE portfolio total office exposure is now 286 million, which is down slightly from the end of Q1 and is four 5% of total loans.
Michael John Daley: Office loan size decreased slightly to $6 3 million and the largest is 25 million. The average loan to value is 63% and the majority of the portfolio is suburban class a and B office.
Approximately 63% of the portfolio is set to mature in the next two years. However, 83% of these maturities are loans with floating rates, which had been repricing up throughout this rate cycle.
Continue to have $113 8 million office transaction graded special mention which has the support of a strong guarantor and the remainder of the portfolio as a pass grade the.
The office exposure is in our footprint centered in North, Texas, Kansas City and Colorado.
During Q2 total CRE commitments remained relatively flat at $3 3 billion in unfunded CRE exposure increased from $595 million at the end of Q1 to $651 million at the end of Q2 total CRE outstandings remain relatively.
Michael John Daley: Flat at $2 69 billion.
As previously mentioned, we anticipate increased churn in the CRE portfolio, which will lower our total CRE exposure and our focus on reducing our total CRE exposure back below 300% of capital in the next several quarters.
Moving to credit highlights on slide 10 for Q2, we reported a decrease in our nonperforming assets to total assets ratio from 47 basis points at the end of Q1 to 22 basis points at the end of Q2.
Decrease was primarily due to a reduction in past due 90 transactions client payments and some partial charge offs.
The remaining nonperforming loans are primarily C&I transactions with the largest exposure remaining under 5 million.
<unk> balances ended the quarter at $4 8 million and includes residential lots in residences in the Austin market.
Classified assets to capital plus combined reserves decreased to 13, 3% at the end of Q2 from 15, 8% at the end of Q1 at the end of Q1 classified totals were comprised 72% in the C&I space, 12% commercial real estate and 14.
Michael John Daley: Percent owner occupied real estate classified loans in the energy portfolio are negligible.
As anticipated at the end of Q2, we reported a decrease in past due transactions back to historical levels. The largest transaction in the 30 to 89 past due total as a 7 million credit that is scheduled to pay off in late July.
For the quarter, we reported net charge offs of $1 million, resulting in the charge off rate seven basis points on an annualized basis, and 90 basis points on a trailing 12 month basis charge offs for the quarter were primarily attributable to one C&I credit.
At quarter end, we reported an allowance for credit loss to total loan loss ratio of one 2% and a combined allowance for credit loss and reserve for unfunded commitments ratio of one point to 8% both of which are consistent with the prior quarter provisioning.
Provision expense totaled $2 4 million, resulting in a provision to charge off ratio of 232%.
With a total ACL of $76 2 million, our current ACL to nonperforming loan ratio is 640%.
We are pleased with the improvements in our credit merger metrics during the quarter and remain highly focused on maintaining good credit quality moving forward.
As a reminder, our ongoing credit monitoring activities include third party reviews that cover 65% of our portfolio on an annual basis. Those reviews continue to validate our credit monitoring practices and approach for risk spreads.
Turning to slide 11 for Q2 deposits increased 2% to six 7 billion up $147 million from the previous quarter.
Non interest bearing deposits increased slightly during the quarter to 958 million and represented 14% of total deposits and.
In the quarter.
<unk> grew five 6% to $1 9 billion and money market deposits grew four 5% to $3 1 billion.
Tax payments in April have historically provided pressure on deposits in Q2.
Michael John Daley: As the market remains highly competitive.
In Q2, we increased fee income with service charge fees, increasing 11% over Q1 to $2 3 billion, while credit card increased income increased 5% over Q1 to $1 6 million we.
We have previously made significant investments in these programs, which are now gaining traction in the market.
We are pleased with our overall deposit loan and fee income growth in the second quarter strong portfolio management remains a key focus for the remainder of the year given the economic uncertainty.
Speaker Change: And we are proud of the decrease in nonperforming assets classified assets charge offs and past dues reported for the quarter.
I will now turn the call over to Ben to cover the financial results in more detail.
Thanks, Randy and good morning, everyone.
As Mike said net income this quarter was $18 6 million or <unk> 37 cents per diluted share on a GAAP basis.
This was an increase of about 2% from last quarter or one set of EPS.
Operating revenue consisting of net interest income and non interest income also expanded 2% this quarter.
Provision expense was modestly higher as the prior quarter included a higher mix commitment funding that was already reserved.
Noninterest expense was up slightly less than 1%.
Who did an incremental cost for restructuring our core system contract.
This restructuring is expected to generate significant savings going forward with an expected earned back of four months and expected annual run rate savings of approximately $2 million per year on our current volumes.
Speaker Change: <unk> for the core contract restructuring with an another Spanish J E T S.
Our quarterly return on average assets was 1.0% and return on average common equity was 10, 6%.
We realized continued balance sheet growth in the quarter as Randy outlined and we are really pleased to see profitability improvement in the quarter's results.
Interest income expanded this quarter driven by both higher yields and higher average balances.
Slide 12 outlines the underlying changes in net interest margin this quarter.
Yield on loans increased 70 basis points, resulting in earning asset yield of 678% this quarter.
<unk> yield on new loans for the quarter was 893%.
Better yields on our investment Securities portfolio also contributed.
Average, earning assets increased $161 million compared to the prior quarter, primarily due to loan growth, which was somewhat back loaded towards the end of the quarter.
Our total cost of deposits was 392% for the quarter, increasing five basis points.
Our total non maturity deposit beta against the entire rate cycle through the second quarter remained at 57 in line with our expectations.
And the pace of increase in the cost of deposits continued to moderate.
Speaker Change: From a 13 basis point increase last quarter.
Our deposit base remains consistent with the prior quarter in terms of diversification composition.
Client deposits grew by quarter end.
Our loan to deposit ratio was down slightly to 94%.
We utilized borrowings in the quarter due to some seasonal client cash outflows, which resolved by the end of the quarter, leaving the ending balance flat to last quarter.
Wholesale funding moved up slightly by 1% to 16% of assets.
Fully tax equivalent net interest margin was consistent with the prior quarter at 320% in line with our expected range.
We expect some improvement towards him with any rate cuts this year.
For the quarter yield on assets kept pace with the increase in cost of funds our.
Our NIM has remained stable in the low 300, twenty's since the second quarter of 2023.
We've worked diligently to position our balance sheet to perform in the current higher for longer rate environment.
Preparing for potential rate cuts.
Our earning assets continued to be primarily variable at 66% reprice or mature in the next 12 months.
And Randy outlined our loan growth was on the lower end of our expected range. This quarter and we are moderating our estimated loan growth in 2024 to a range of 6% to 8% for the year.
On the liability side, we have good variability as well 27% of our client deposits are indexed automatically move down with any fed rate movements.
In addition, we have short duration broker deposits of 16%.
Our CD portfolio duration has continue to shorten as we incentivize clients to move into six and nine months products and.
And we have $850 million of client Cds that mature in the next 12 months.
As we renew Cds the expected pressure to margin continues to narrow with declining spreads to new renewal rates.
The rate environment outlook continues to be very dynamic and we continue to assume two rate cuts. This year with the potential September cut being the only significant impact for 2024 base.
Speaker Change: Based on that assumption and including somewhat lower loan growth are expected margin is still in the range of $3 20 to $3 25 for the year.
The absence of a rate cut would leave our margin at the lower end of that range.
Speaker Change: Noninterest income was $5 7 million for the quarter expanded 2% from last quarter.
Growing noninterest income key strategic priority for us and as previously mentioned the biggest driver of this expansion was service charges and credit card revenues. These will be continued focus areas of growth in 2024.
Speaker Change: Moving to slide 13, noninterest expense increased slightly this quarter compared to the prior quarter driven by the core contract restructuring as I mentioned expenses would have declined otherwise had been in line with our guidance Comping.
Compensation declined due to lower taxes and benefits partially due to seasonality.
Speaker Change: Our head count was unchanged from the prior quarter and remains at the same level as a year ago. As we continued to scale with some remixing of talent toward production roles.
We expect noninterest expense to be around $37 million per quarter for the rest of 2024, including the core contract renegotiation statements.
We remain highly focused on our efforts to drive additional efficiencies and gain operating leverage in 2024 as evidenced by operating revenue growth outpacing expense growth this quarter.
Our tax rate this quarter was consistent with last quarter at 21% and we expect the tax rate to remain in a range from 20% to 22% this year.
On slide 14, our liquidity remains strong consistent with the prior quarter at 34% of assets, we have liquidity of approximately $2 6 billion from on and off balance sheet sources.
On slide 15, we continue to advance our goal of building capital this quarter.
We saw continued asset growth and strong earnings.
Continue to focus on building capital balanced with shareholder return.
As Mike mentioned, we took advantage of some price pressure on our stock and increased our level of buybacks.
Speaker Change: We repurchased 237000 shares at a weighted average cost of $12.78 compared to tangible book value per share of $14 <unk> at quarter end.
Speaker Change: We believe we can continue to achieve our goal of building capital, while dedicating a portion of our earnings to shareholder return.
In summary, we are very happy with the first half of 2024 with strong earnings continued organic growth and advancement of our strategy.
Operator, we're now ready to begin the question and answer portion of the call.
We will now begin the question and answer session.
To ask a question you May Press Star then one on your Touchtone phone.
If you are using a speakerphone please pick up your handset before pressing the keys.
Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
In the interest of time, please limit yourself to one question and one follow up.
At this time, we will pause momentarily to assemble our roster.
The first question today comes from Michael Rose with Raymond James. Please go ahead.
Hey, good morning, everyone. Thanks for taking my questions.
Maybe just start on deposits Hey, good morning, maybe we could just start on deposits. The growth was was really strong.
No you you kind of excited.
And in Texas, I believe but I know also that you recently signed up with Nimbus and just wanted to see how we should think about.
The pace and complexion of deposit growth like do you think that you know.
The Niv mixes is essentially at a stabilized level how.
How would you comment on cost and how should we think about.
Continued deposit growth as we move not only through the next two quarters, but also into next year. Thanks.
Speaker Change: Yeah. Thanks, Michael.
I think we do feel like our mix has stabilized.
Speaker Change: We're obviously continuing to focus on <unk>.
Improving that mix by growing our non interest bearing.
We had nice growth across our footprint I did highlight a couple of our pilot groups that outperformed a little bit but.
Speaker Change: In dynamic markets and so we continue to see great opportunity to grow deposits.
Our margins in our footprint Nimbus.
It's still in process, we have not launched that yet and we expect that we'll launch in the fourth quarter. So.
The growth in the second quarter was.
Just a core deposit growth from our markets.
So should we assume that there is the potential for deposit growth to actually outpace loan growth and then hopefully.
There's a little bit more clarity on the economy as we move into next year that loan growth could accelerate as that kind of the way we should think about it.
Yes, I think Thats, a fair way to think about it and we're trying to be thoughtful on loan growth, we want to stick to our pricing model and to our credit standards and so.
And as Randy said, we're focused on.
Reducing our CRE concentration down and you have 300, Mark and so.
We're trying to be thoughtful as we look at that area as well.
We expect low churn to pick up a little bit which will allow us to also increase our net loan volume.
Michael This is Randy I might add as we've highlighted we've made some tweaks to our incentive models to highlight deposit growth I think we're starting to see that gain traction as well in our markets and.
So we have all our all our relationship managers about asking this matter what line of business, they're in they're asking for deposits and as we think about new loans, we're making sure that that comes with a full relationship and deposits as well.
Okay, and then maybe just finally for me just to kind of tie all this together so it sounds like the potential for stronger deposit growth you are being very thoughtful on loan growth, maybe you look to add a little bit incrementally to the securities book, but it would seem to me that.
The actual ability to grow NIM.
Assuming we only get.
Two cuts this year whatever it is going to be it is somewhat limited just given those dynamics does that is that kind of fares, we kind of think about it into next year or am I missing something.
Speaker Change: I still Michael I still think we have the opportunity to grow.
Grow NAV.
Net interest income.
A lot of our loan growth in the second quarter was with late in the quarter.
Otherwise our noninterest income would have been stronger.
We think we'll have a little headwind in the third quarter with that and are a tailwind I mean and.
Speaker Change: Yeah, I think what youre going to continue to see solid growth the rest of the year and hopefully with a rate cut.
In September.
If not sooner.
We we ought to get some expansion of our debt.
Speaker Change: Michael It's Ben I would add.
And while we're a little bit more balanced on sensitivity than we were a quarter ago, we will benefit from <unk>.
Got it and we're positioned for that.
Mike and Randy talked about noninterest bearing but.
Those have moved a little bit, but I think it's important to note they've grown with the growth of our balance sheet and really haven't moved off of that 14 and 15% level in a while.
Very helpful. I'll step back thanks for taking my questions.
Thanks, Mike.
Yeah.
The next question comes from Woody lay with K P. W. Please go ahead.
Hey, good morning, guys.
Speaker Change: Good morning.
Yeah, So the really strong quarter for credit I was hoping that you could just.
Give us some color on what drove the classified improvement in the quarter.
Hey, Randy.
Yeah.
It's really across the whole portfolio I mean, there was no we saw decreases in.
In CRE and C&I.
And really it was just.
Yes.
Although performance, maybe we were able to add some transactions refinanced we had sun bets over restructuring or additional equity, which will allow us to upgrade it and so it was really no one thing.
That drove that decrease during the quarter.
Makes sense and then as it relates to the reserve just on a percentage basis. It was flat given some of the credit metric improvement that we saw the did you tweak some of the qualitative factors in the quarter or two to keep that percentage flat.
What do you spend.
Look at those qualitative factors, obviously every quarter, we have not made any significant moves in those.
We are cautiously optimistic about the economic outlook, which I don't think is probably different than anyone else would think about it or.
Speaker Change: Our goal really is to continue to maintain a reserve ed at that level.
That 120 level, which we think is appropriate and the underlying change is primarily driven by loan growth and charge offs. Obviously is how the math works.
Alright, that's all from me and I'll hop in the queue.
Thanks Blake.
The next question comes from Andrew Liesch with Piper Sandler. Please go ahead.
Okay everyone.
Thanks for taking the questions here good.
Good morning.
The commercial real estate as a percentage of capital you mentioned couple of times that your goal is to get it below 300% do you have where that was at the at the end of the quarter.
Yes, it's about $3 23.
Speaker Change: And.
Andrew historically, we've been in the <unk>.
$2 70 range, we made a strategic decision to increase that.
Given market conditions and opportunities, we're seeing and so that peaked at about $3 3 million and now we're starting to work that back down below 300, we finished at about 300000.
Well the Prescott has also changed.
Two acquisitions, we've made in Colorado, and Arizona portable heavier real estate.
So we're just trying to methodically work that back down.
Right right makes sense there.
And then on the expense front here to get the savings from the <unk>.
Contract renegotiation.
Sounds like a lot of that's going to be reinvested back into the franchise, just curious where were some of the suspending might.
It might be this include.
The new team that you hired.
Okay.
Speaker Change: Good morning.
And Andrew it's Ben.
That is probably the.
The biggest portion as I said we.
Continue to remix our head count a little bit while it really holding it flat to continued to tilted more toward production roles as we find efficiencies or leverage and our expense base, which as Mike said it is our long term goal.
The other lesser factor would be we of course continue to experience a significant amount of inflation in our cost base as our balance sheet continues to grow in particular in.
Mike: The second half of the year regulatory assessment is growing.
Last piece would be we have a little bit of a tail on our marketing business development spend towards the second half of the year.
Mary driver is investment product production talent.
Andrew.
We're seeing some disruption in our markets in which is really presenting some.
Some nice tackling opportunities for us and so we're trying to be very selective in how we add that talented but.
The market disruption is is.
Is generating some.
High degree of interest in crossovers.
And we were able to answer here five five more production people in the quarter that really werent budgeted, but just through normal attrition and the employee base, we were able to keep our total head count flat so.
As Randy said, we are seeing some opportunities that we wanted to make sure we possess.
Positioned to take advantage of that.
Great.
That's really encouraging to hear.
Randy: Thanks for taking the questions I'll step back.
Thanks, Andrew.
As a reminder, if you'd like to ask a question. Please press Star then one to enter the question queue.
The next question comes from Matt Olney with Stephens. Please go ahead.
Hey, Thanks, good morning, everybody.
Good morning, Matt.
One ask more about capital and capital deployment and I think in the second quarter you you deploy some capital via the buyback and it looks like that trades working out well, so far and I think late last year you deployed some capital via the full restructuring.
I guess over the last few weeks, we've seen these bank valuations move higher we've seen rates move lower.
I'm curious around kind of your updated thoughts around capital.
I'm here and potential for deployment given these more recent moves over the last few weeks.
Okay.
All right Matt.
As you said we deliberately.
Feedback harder in particular earlier on.
Second quarter that of course, the beauty of <unk>.
Back its flexibility.
The math is nowhere near as desirable today, which which we're happy about.
We've seen a lot of price improvement through the quarter.
And through July.
As Mike said, we continue to have a long term goal to build our ratios from where they are they all moved up a little bit quarter over quarter and nicely year over year, you are correct we utilized.
Speaker Change: Around $1 billion of capital fourth quarter to do.
Our bonds trade, although we did that in a way that was actually positive to our risk weighted capital ratio because of how we would redeploy the funds.
As well as realizing some some NIM improvement so our goal remains to continue as Mike said to be opportunistic.
Mike: About that capital deployment and continue to build those ratios.
Speaker Change: Matthew.
Really pleased with the movement in our stock price.
You know today, it probably makes a little more sense to deploy that capital into high quality growth in our markets and so.
As Ben said, we want to continue to build capital but more.
Ben: Our end markets are going to provide us plenty of opportunity to put on high quality growth as well.
Yep, Okay I appreciate that thanks.
Thanks for the color and then.
I think Ben you mentioned that the balance sheet migrated a little bit more towards being rate neutral more so than what we saw the previous quarter.
Speaker Change: Any more color on what what drove this move in and Jamie commentary about expectations of movements from here. Thanks.
Sure Matt.
Really two main drivers.
You know that produced.
A small change from Q1 to Q2, one our level of repricing assets increased as we added.
A higher mix of variable rate loans in the quarter and we also carried a bit more cash.
Then on the liability side.
Shifted our time deposit maturities out a little bit further there now a little bit more spread out than they were in the first quarter. So between those those two things we've shifted a little bit more neutral, but we will continue to position in such a way that will benefit from a rate.
Got it.
Okay. Thanks.
Thanks for the commentary that's all from me.
Thanks, Matt.
This concludes our question and answer session I would like to turn the conference back over to Mike <unk> for any closing remarks.
Well I just want to thank everyone for joining the call today again, we're really pleased with our quarter and our.
Want to thank our teams for all their hard work and.
We continue to see improving conditions and we believe that the rest of the year should should continue to be strong.
We will continue to focus on really profitable growth and continue to take advantage of the opportunities we're seeing in our dynamic markets.
Thank you again for joining us and have a great day.
Yeah.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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