Q3 2024 First American Financial Corp Earnings Call
Greetings and welcome to first American Financial Corporation third quarter earnings Conference call. At this time, all participants are in a listen only mode. A brief question and answer session and followed the formal presentation. If anyone should require operator assistance during the conference.
The stars futile honest telephone keypad a.
A copy of today's press release is available on first American's website at Www Dot first M Dot com forward Slash and Mr. Please note that this call is being recorded and we will available for replay from the company's investor website and for a short time by dialing 877.
Six six it'll 6853 or 20161 to 7415 and enter the conference I'd 13749447.
Speaker Change: We will now turn the call over to Craig Barberio, Vice President Investor Relations to make an introductory statement. Please go ahead.
Yeah.
Craig Barberio: Good morning, everyone and welcome to first American's earnings conference call for the third quarter of 2020 for joining US today on the call will be our Chief Executive Officer, Ken to Giorgio and Mark Seaton Executive Vice President and Chief Financial Officer.
Some of the statements made today may contain forward looking statements that do not relate strictly to historical or current fact these forward looking statements speak only as of the date. They are made and the company does not undertake to update forward looking statements to reflect circumstances or events that occur. After the date. The forward looking statements are made.
Craig Barberio: Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward looking statements.
Craig Barberio: For more information on these risks and uncertainties. Please refer to yesterday's earnings release and the risk factors discussed on our Form 10-K, and subsequent SEC filings.
Craig Barberio: Our presentation. Today also contains certain non-GAAP financial measures that we believe provide additional insight into the operational efficiency and performance of the company relative to earlier periods and relative to the company's competitors.
Craig Barberio: For more details on these non-GAAP financial measures, including presentation with and reconciliation to the most directly comparable GAAP financials. Please refer to yesterday's earnings release, which is available on our website.
Craig Barberio: Www Dot first a M dot com I would now.
Speaker Change: Now I'd like to turn the call over to Ken to Georgia.
Ken Giorgio: Thank you Craig.
Ken Giorgio: In the third quarter, we benefited from measured improvement in market conditions. Our adjusted revenue was up 4%. The first year over year growth, we've experienced since the second quarter of 2022.
Ken Giorgio: And our adjusted earnings per diluted share were $1 34, an increase of 10%.
Ken Giorgio: Title premiums and escrow revenues were up across all key business lines, but most notably in our commercial division where revenues were up 19% also the first increase since the second quarter of 2022.
Ken Giorgio: Growth in commercial revenue was driven by a sharp increase in the fee per file to which an 80% increase in large transactions contributed.
Ken Giorgio: In the purchase market demand started to pick up late in the quarter with the decline in mortgage rates to around 6% ahead of the Feds 50 basis point cut in mid September.
Ken Giorgio: Demand, however, softened as mortgage rates backed up 50 basis points soon after the fed meeting and other factors impacting affordability persistent.
Ken Giorgio: As a result, our closed purchase orders per day, this quarter declined 2% compared with last year.
Ken Giorgio: While continued albeit moderating home price appreciation was one of the factor that negatively impacted affordability. It did drive an increase in our average revenue per order and a resulting in a 3% increase in our purchase revenue.
Ken Giorgio: Closed refinance orders were up 12% in the third quarter with transaction activity, increasing as the quarter progressed, the improved order flow combined with a higher fee per file resulted in a 20% increase in our refinance revenue.
Ken Giorgio: Although our title segment investment income income declined this quarter compared with last year. It grew sequentially as we began to realize the benefit of our investment portfolio rebalancing project.
Speaker Change: Mark will discuss that in greater detail in his remarks.
Speaker Change: Our home warranty segment delivered an adjusted pre tax margin of seven 7% down from 39, 3% last year.
Speaker Change: There was a slight improvement in the claims rate helped at the margin, we deliberately increase marketing spend in our direct to consumer channel.
Speaker Change: This direct to consumer investment is expected to drive increased profitability as the lifetime value of new contracts is realized over time.
Speaker Change: As we've discussed on prior calls we are committed to developing innovative proprietary technologies the promise to boost our productivity and enhance the customer experience in ways that will create a sustainable competitive advantage.
Speaker Change: We believe however that an opportunity exists to reduce our technology spend without compromising on this commitment by centralizing standardizing and simplifying our technology operations.
Speaker Change: We have already implemented certain changes that have reduced cost and we expect to realize additional benefits as we make further progress in this effort.
Speaker Change: Turning to the outlook for the remainder of the year, we expect challenging conditions in the purchase market to persist.
Speaker Change: For the first three weeks of October our open purchase orders are down 3%.
Speaker Change: Though our open resale orders are up one 4%.
Speaker Change: The refinance market should continue to improve though off a low base.
Speaker Change: Our refinance business accelerated in the first three weeks of October with open orders up 76%.
Speaker Change: And we remain optimistic that the commercial business will perform well in the fourth quarter given higher term refinancing demand continued progress on price discovery and our own robust pipeline of large transactions.
Speaker Change: Yeah.
Speaker Change: As we indicated last quarter, we expect that modest revenue growth for the full year of 2024 will enable us to achieve title margins similar to what we posted in 2023.
We now have stronger conviction in that outcome given the recent performance of our commercial business and the increase in interest income, resulting from our portfolio rebalancing project.
Speaker Change: The first year over year growth in revenue and nine quarters that Ive mentioned earlier, coupled with our expectation that affordability challenges will gradually abate.
Speaker Change: Also make us cautiously optimistic that we are in the beginning stage of a new cycle that will drive further improvement in 2025.
Speaker Change: While we have been operating through a cyclical downturn since the fed began its historic interest rate hike cycle in early 2022, our operating strength and strong balance sheet has enabled us to make meaningful investments in our business.
Speaker Change: While maintaining our commitment to return capital to shareholders.
Speaker Change: At the beginning of 2022, we have repurchased 10 million shares for a total of $574 million at an average price of $57 74 per share.
Speaker Change: During the same period, we have also increased the common stock dividend by 6% to an annual rate of $2 16 per share.
Speaker Change: In closing I would like to comment on the widespread damage and devastation that the recent hurricanes reflected across several southeastern states.
Speaker Change: Many of our employees and the communities in which they live have endured profound hardships.
Speaker Change: While we are grateful that all of our people are safe, we know that many now faced the difficult task of recovery.
Speaker Change: I want to thank our people for all they have done to lend a hand to those impacted and to reiterate our company's commitment to support our people and their communities.
Speaker Change: Now I'd like to turn the call over to Mark for a more detailed discussion of our financial results.
Mark Seaton: Thank you Ken.
Mark Seaton: This quarter, we generated a GAAP loss of $1 per diluted share.
Mark Seaton: Our adjusted earnings, which excludes the impact of net investment losses and purchase related amortization was $1 34 per diluted share.
Mark Seaton: During the third quarter, we rebalanced, our investment portfolio by selling certain debt securities and an unrealized loss position.
Mark Seaton: Our net realized investment losses of $312 million. This quarter were primarily due to this rebalancing.
As a result, we expect to save $90 million of cash taxes in the near term and we expect to increase investment income by approximately $67 million per year, beginning in Q4 by reinvesting the proceeds in higher yielding securities the average duration and credit quality of the portfolio is.
Mark Seaton: <unk> as a result of this rebalancing.
Mark Seaton: Turning to our title segment revenue was $1 3 billion down 15% compared with the same quarter of 2023, excluding net investment losses revenue increased 4% from last year.
Mark Seaton: Purchase revenue was up 3% during the quarter, all driven by an improvement in our fee per file.
Mark Seaton: Commercial revenue was 190 million% to 19% improvement over last year lower closed commercial orders fell 5%. The average revenue per order for commercial transactions surged, 23%.
Mark Seaton: Refinance revenue climbed 20% relative to last year.
Mark Seaton: <unk> growth and order activity refinance still accounts for just 5% of our direct revenue.
Mark Seaton: In the agency business revenue was $684 million up 3% from last year.
Mark Seaton: Given the reporting lag in agent revenues of approximately one quarter. These results primarily reflect remittances related Q2 economic activity.
Mark Seaton: Information and other revenues were $242 million during the quarter up 1% compared with last year due to an uptick in the demand for the Companys information products.
Mark Seaton: Investment income was $136 million in the third quarter down $5 million compared with the same quarter last year due to lower average interest bearing escrow and tax deferred property exchange bounces.
Mark Seaton: However, our investment income was up $11 million on a sequential basis.
Mark Seaton: As I mentioned earlier, we expect our investment portfolio rebalancing to generate approximately 67 million of additional interest income per year, beginning in the fourth quarter, we estimate that the third quarter benefited by $8 million related to this initiative as we ramped up fixed income security purchases throughout the quarter.
Mark Seaton: We'd like to provide a little more visibility into our investment income line item going forward.
Mark Seaton: In Q4, we now expect between 140 and $145 million of investment income in the title segment.
Mark Seaton: This includes the full run rate of our portfolio rebalancing projects. It also assumes a 25 basis point fed cut in November and a second 25 basis point cut in December.
Mark Seaton: Based on current average cash in escrow balances, we estimate that each 25 basis point cut in the fed funds rate will reduce annual investment income in the title segment by $15 million.
Mark Seaton: The provision for policy losses, and other claims was $37 million in the third quarter were 3.0% of title premiums escrow fees unchanged from the prior year.
Mark Seaton: The third quarter rate reflects an ultimate loss rate of 375% for the current policy year and a net decrease of $9 million in the loss reserve estimates for prior policy years.
Mark Seaton: Adjusted pre tax margin in the title segment was 11, 6%, excluding both net realized losses and purchase related amortization.
Mark Seaton: Total revenue at our home warranty business totaled $111 million up 2% compared with last year pre tax income and home warranty was $9 million down 4% from the prior year the loss ratio and home warranty was 54% down from 55% in 2023 due to lower claim frequency that was partially offset by <unk>.
Mark Seaton: Claim severity.
Mark Seaton: Adjusted pre tax margin in the home warranty segment was seven 7% compared to nine 3% last year.
Mark Seaton: The effective tax rate for the quarter was 28, 4%.
Mark Seaton: Excluding the impact of net realized investment losses and purchase related amortization the tax rate was 25%.
Mark Seaton: Lower than our normalized rate of 24%.
Mark Seaton: Due to $6 million of research and development of foreign tax credits recognized during the quarter.
Mark Seaton: Our debt to capital ratio as of September 30 was 34, 8% excluding secured financings payable our debt to capital ratio was 26, 6% in.
Mark Seaton: In September we raised $450 million in a public offering of 10 year senior notes $300 million of proceeds will go toward paying off notes that mature on November 15th of this year now I would like to turn the call back over to the operator to take your questions.
Speaker Change: Thank you.
Speaker Change: We'll now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.
Speaker Change: A confirmation tone will indicate your line is in the question queue.
Speaker Change: Start to if you would like to remove your questions from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Speaker Change: The first question comes from the line of Bulls charge, but gave you W. Please go ahead.
Speaker Change: Hey, everyone. Good morning good.
Speaker Change: Good morning, I wanted to start with just a question on margin in the past.
Speaker Change: You guys did give ranges for what you thought margins could be can you just give us an update where you think.
Speaker Change: Where that range is and what you see as kind of a normalized margin if home sales sort of get back to some normal level.
Speaker Change: Yeah Bose thanks for thanks.
Speaker Change: Thanks for the question.
Speaker Change: I'll start by saying you know.
Speaker Change: I indicated in my remarks, we've got a strong conviction on our margin outlook for for this year, given especially the performance of our commercial of our commercial business and.
Speaker Change: And we expect further improvement in 2025, but I'll tell you I'm not I'm not even sure what a normal what a normal market is anymore I guess, what I would say is let's we would revisit our we would revisit the margin probably once we see what 2000 22025 shapes out.
Speaker Change: Okay, Great and then actually just the comment.
Speaker Change: You mentioned earlier on the on tech spend so it sounds like there could be some cost saves can you sort of discuss that and tie that into.
Speaker Change: The impact that the end point and its entitling.
Had this quarter are those two kind of related in terms of the tech spend.
Speaker Change: Yeah, well as I mentioned, we're not going to we think theres, a real opportunity to reduce tax spend without compromising on any of the any of the innovative work that we've been doing and we're making great progress on we do think theres, an opportunity, though to centralize standardize and simplify and that will bring costs down in fact, we've already seen.
Speaker Change: Seen some cost reduction in large part at this stage from.
Speaker Change: Shifting from high cost outside third parties too.
Speaker Change: In house developers.
Speaker Change:
Speaker Change: And we're in the process of doing a zero based budgeting review, we're looking at all of our projects and again looking for opportunities to make ourselves make the process more efficient.
Speaker Change: Assess the return on the investments, we're making but we're not slowing down we're not slowing down on our escrow efficiency initiatives, we're not slowing down on on Sequoia.
Speaker Change: And we're going to continue to press ahead and make progress on those initiatives.
Speaker Change: Okay, great. Thanks.
Speaker Change: Thank you next question comes from the line of John Campbell Stiffening. Please go ahead.
Speaker Change: Hey, guys good morning.
Speaker Change: Good morning.
Speaker Change: On the rebalancing efforts.
Speaker Change: $67 million annualized impact that's obviously a really good addition to the P&L. So great work there I'm thinking that this uptick does not have a corresponding affect interest expense, but I wanted to check on that first.
Speaker Change: Yes, you got that right John no effect.
Speaker Change: Okay and then.
Speaker Change: It sounds like you guys are you know I think you mentioned cautiously optimistic about a turn in the cycle. The beginning stages of a turnaround cycle I think we typically agree with you guys there but.
Speaker Change: If we assume enough growth next year, where the success ratio is going to actually matter or would you guys expect to manage to that historical success ratio is it possibly you might be able to move a little bit higher than that next year.
Speaker Change: I think in general John.
As a general statement.
Speaker Change: Standby, the 60% target of course, Theres a lot of differences in a lot of it depends on how much our revenue will grow next year, we've got tailwind as a commercial got tail winds in purchase we've got tier ones, we've got talented investment income.
Speaker Change: And so if theres in theory, if you're small changes in revenue then you get some funky comes with success ratio, but if revenue grows more than let's say, 5% or so then I think the success ratio really comes into play and.
Speaker Change: And so we stand by that at least heading in heading into next year.
Speaker Change: Okay, that's great if I could squeeze in one more I'm just curious about the direct to consumer efforts within home warranty if maybe you could size up.
Speaker Change: The the <unk>.
Speaker Change: Higher marketing spend I don't know if you could maybe talk to the LTV to CAC framework and then just maybe more broadly the long term opportunity you see for home warranty.
Speaker Change: Yeah, Yeah as I mentioned, we made an investment this quarter, we've made investments in the past on direct to consumer spend and.
Speaker Change: We're opportunistic about when we make that obviously there.
Speaker Change: The cost associated with generating leads and the conversion rates from those leads factor in but.
Speaker Change: But we think that fundamentally it's it's a good investment over the over the long term, but it takes a year or so to realize the value of those investments. So it's early days for us to realize the value of comment on the value of the recent investments we've made in DTC, but.
Speaker Change: We look at it very very carefully and we think it makes a we think it's at least at this point given the current pricing as he believes its prudent to continue investing in.
Speaker Change: Okay, and if I could just squeeze in one more on the.
Speaker Change: I guess, how you gauge success in that venture I mean is it do you think it's meaningful enough where it will start.
Speaker Change: Kind of turbocharged supercharged growth over the next couple of years.
Speaker Change: Are you talking about in the direct to consumer channel and write warranty Yeah. No. We think that's where we that's where the opportunity is particularly given that the purchase market is under such pressure. So in our real estate channel were selling through real estate agents in connection with home transactions.
Speaker Change: Given the pressure in that market, we think there's real opportunity in the direct to consumer channel keeping in mind. There is a lot of open space in the home warranty business not many homes have you.
Speaker Change: <unk> home warranties on them. So we don't have we don't have to go chase down.
Speaker Change: Uh huh.
Speaker Change: Customers from our competitors in order to realize that our competitive advantage in that business because theres a lot of a lot of open space.
Speaker Change: Okay, great. Thanks, guys.
Speaker Change: Okay.
Speaker Change: Thank you next question comes from the line of Panama with Barclays. Please go ahead.
Speaker Change: Okay.
Speaker Change: Mr. Martin. Please go ahead with your question.
Speaker Change: Sorry, I was on mute. Thank you. Good morning, so it seems like the reinvestment of the repositioning of the investment portfolio and the $67 million benefit.
Speaker Change: We just.
Speaker Change: Kind of offset the first 50 basis point rate cut and then the Tam or anticipated ones. I mean is that a fair way to kind of think about it.
Speaker Change: Look forward to 2025.
Speaker Change: Are there any other actions that you can kind of take to optimize or get more out of your investment portfolio to maybe offset any additional rate cuts.
Speaker Change: First of all Terry Yes, that's the right way to think about it I mean for every for every.
Speaker Change: 25 basis point in the fed funds rate right now given where our current balances are we expect a $15 million reduction in investment income so really.
Speaker Change: The $67 million and if we're going to get basically funds at least four plus fed cuts.
Speaker Change: Now there's a lot of other factors too I mean, one thing that could offset that as if we have rising commercial volumes next year in purchase volumes.
That will generate additional investment income and that could insulate some of these fed cuts that might come our way next year.
Speaker Change: So thats kind of how we think about our investment income.
Speaker Change: Got it Okay. That's helpful. And then any other color you can provide on what you're seeing in commercial so far this quarter anything that kind of gives you confidence that the momentum you saw in.
Speaker Change: In the third quarter will continue.
Speaker Change: Yeah, well I think.
Speaker Change: Thanks for the questions here I think I think really I think the results. We saw in the third quarter or are one of the one of the biggest indicators I mean to have the first year over year increase in revenue in our commercial business is a real.
Speaker Change: Positive indicator.
We're seeing strong demand strong demand in the business, we're seeing a lot of progress on price discovery and then we have our own pipeline of deals give us give us a lot of confidence and then for the first three weeks of October we've actually seen an increase in revenue as well. So we feel we feel pretty good you know obviously.
Speaker Change: That can change it's been it's a volatile market, but we feel pretty good about the about the rest of the year in our commercial business.
Speaker Change: Got it okay. That's helpful. Thank you.
Speaker Change: Thank you next question comes from the line of Mark Devries with Deutsche Bank. Please go ahead.
Speaker Change: Yes. Thanks.
Mark Devries: First question on the Securities repositioning is there is there more than you might look to do in 2025 or are you kind of position. The other way you want to be.
Speaker Change: We.
Speaker Change: I'd say the bulk of it is done there is still some that we could do that we're considering.
Speaker Change: But.
Speaker Change: The scope of that the most would be about $100 million of losses, and we haven't really decided we're going to do that yet but that would be the scope of it most of it has been done.
Speaker Change: Okay.
Speaker Change: And then you know I think you alluded to some some potential offsets on investment income from from our commercial and were purchased can you help us think through which was more impactful.
Speaker Change: [laughter] if either one is in terms of like incremental volume from commercial versus purchase.
Speaker Change: In terms of investment income commercial is more is more valuable to us I mean, just because the deals are are larger in size.
Speaker Change: Typically take longer to close than our residential purchase transaction typically so we hold the deposits longer.
Speaker Change: We estimate that it fluctuates, but I would say the rule of thumb is at about 60% of our our escrow deposits of the company or commercial.
Speaker Change: <unk> is a big driver in terms of what are our escrow deposits are.
Speaker Change: Okay got it.
Speaker Change: And then just last question are you seeing any signs that efforts by certain lenders to kind of use a OLS.
Speaker Change: There was an alternative title or is gaining.
Speaker Change: Traction in the market.
Speaker Change: You know I think.
I think we've seen probably a slight tick up in usage of of a O L. But it's.
Speaker Change: It's pretty small and I think.
Speaker Change: Fundamentally I think when lenders and others realize that.
Speaker Change: <unk> are not they're not faster.
Speaker Change: Now turning to write an opinion it actually is a lot slower than a title Paul underwriting a title policy, they're not better.
Speaker Change: Because of coverage limitations fraud, having that senior lawyer for malpractice.
Speaker Change: And given the loan level price adjustments that often accompany an a O L. Theyre not cheaper. So I think that we might see some continue to see some slight take up on AOS, but so far it hasnt been it hasnt been too meaningful.
Speaker Change: Got it and it also obviously is making quite an effort in D C.
Speaker Change: Educate policymakers around the value of title versus versus their wells and Kennedy sense on how much traction, they're getting and how effective they are and kind of moving perceptions.
Speaker Change: Well I think the I think the tell tale sign will be what happens after the election.
Speaker Change: But I think theres been a lot of they've gotten some traction with a O L title waivers and other other alternatives in the administration, but theres been a lot of pushback with from regulators and legislators, including members of members of Congress I think.
Speaker Change: I think our trade groups have done a good job and I think that frankly legislators and regulate themselves have already appreciated already had appreciated the value of title insurance relative to these alternatives. So.
Speaker Change: You know, we've got to remain ever ever vigilant and continue to get out the message on the value of of title insurance.
Speaker Change: And I think frankly that where we are.
Speaker Change: The industry is winning that battle.
Speaker Change: Got it thank you.
Speaker Change: Yes.
Speaker Change: Thank you next question comes from the line of Mark Hughes, but through Securities. Please go ahead.
Mark Hughes: Yeah. Thank you good morning.
Mark Hughes: On the commercial side, any particular end markets or property types, where you're seeing them.
Speaker Change: Nice discovery proceed or are you talking about the healthy pipeline of larger transactions.
Speaker Change: Any more on the mix of that.
Speaker Change: Yeah, I think where we're seeing price discovery and a lot of this is anecdotal, but we're seeing it across the board obviously, the one asset class that continues to struggle as you'd expect as office, particularly in our CBD office.
Speaker Change: Suburban office is probably doing a little better but you know the one thing I'll point out that the nice thing about about our commercial business markets, where we're pretty diversified.
Speaker Change: We have a strong presence in all asset classes. So we're not buffeted for better or for worse by any one asset class.
We're in the mall and we're in the mall pretty deep.
Speaker Change: Yeah.
Speaker Change: When you see kind of an uptick in the size of transactions like this is just normal variability or where the.
Fields are hanging on the sidelines waiting for a little better interest rate environment, what do we make of that.
Speaker Change: It's just.
Speaker Change: Hard thing to determine in terms of what our future fee per file is I mean year to date through June our commercial revenue was down 2% and we just saw a surge year, 19% in Q3, and so sometimes those things are difficult to forecast, but we're seeing broad based strength in cancer.
Speaker Change: They were really optimistic heading into Q4, but we really don't really we don't really know what our fee per file is.
Speaker Change: Until we get the deals in the door on the open side and then we can somehow predict but predicting any anything further than a quarter is tough to do in commercial.
Speaker Change: The fee per file.
Speaker Change: Anything on the CFPB front from a regulatory perspective.
Speaker Change: Anything there.
Speaker Change: You know, we havent heard much on the CFPB front I think I don't think they've forgotten and I think I.
Speaker Change: I think we'll probably as I mentioned in response to the earlier question I think after the after the election, we may see.
Speaker Change: A tick up in activity with the CFPB, but that the RFID is still out there our industry responded responded to it.
Speaker Change: But we.
Speaker Change: I think there I think for now Theyre focused on other areas, but I don't think for a minute that they've forgotten.
Speaker Change: Yeah.
Speaker Change: Okay. Thank you very much thanks.
Mark: Thanks Mark.
Thank you next question comes from the line of Geoffrey Dunn with Dowling and partners. Please go ahead.
Speaker Change: Thanks, Good morning, good morning.
Mark: Hum.
Geoffrey Dunn: Given the change in the sales approach in home warranty can you talk a bit about how you think about the strategic value of the platform for the company.
Speaker Change: Yeah, and I wouldn't say, it's a change in the sales platform I think it's an evolution.
Geoffrey Dunn: And one of them.
Geoffrey Dunn: One competitor in particular, I think it's been pretty aggressive with it has done a good job good job with with DTC.
Geoffrey Dunn: But we've been working on it we've been working on it too and I think we're just ramping up the investment so I call. It a more of an evolution than a change but.
Geoffrey Dunn: Yeah.
Geoffrey Dunn: We like we like the business I mean, its furthest, it's clearly furthest from our core title and settlement business, but we like it.
Geoffrey Dunn: There's a lot of opportunity in it, particularly given what I as I mentioned earlier how underpenetrated.
Geoffrey Dunn: The market is.
Geoffrey Dunn: And then even though.
Geoffrey Dunn: The real estate channel of that business is suffering right now alongside the purchase business in the title Company. For example, I think once the once the purchase market turns around and it will turn around I think that you know.
Geoffrey Dunn: Our.
Geoffrey Dunn: Our expertise and deep penetration in the real estate market and our real estate channel is going to be helpful for that business as well.
Yeah.
Speaker Change: Alright, thank you.
Speaker Change: Mhm.
Speaker Change: Thank you.
Speaker Change: Minded to all the participants that in my press Star one to ask a question.
There are no additional questions at this time.
Speaker Change: Concludes this morning's call. If you would like to remind listeners that today's call will be available for replay on the company's website.
Speaker Change: By dialing 870 76606853 on dues, it'll 161 to 7415 and enter the conference I'd 13749447, the company would like to thank you for your participation. This concludes today's.
Speaker Change: You may now disconnect.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].