Q4 2024 VersaBank Earnings Call
Non interest expenses are typically higher due to one time costs associated with being there, but the U S acquisition, we expect to return to.
Normalized <unk> in the first quarter of 2025 with.
With the addition of our U S Bank, which is where.
With the addition of the U S bank expenses, including the new leadership team.
Yes.
It has been for nearly two years net interest margin was dampened by the typically inverted yield curve, which lowers our margin as we raised deposits and the short end of the curve and let me further out.
On the curve.
We are now seeing yield curve flattened and are very encouraged by this trend.
Net interest margin was also impacted by the one times noted above we are we feel good about the direction.
<unk> of our NIM in 2025, especially as we start to add U S. R. P. P loans, where we expect to realize a meaningfully higher spread.
For the year, we generated record net income excluding the onetime impacts of the U S acquisition, driven by the strong growth in our Canadian point of sale receivable purchase program.
You can see that reflected in our efficiency ratio and a return on common equity.
We expect to see New records for all of these metrics next year based on the continued growth of <unk>.
P P in Canada.
And the ramp up of the RFP P in United States as well as a couple of other meaningful opportunities I will discuss in a few minutes.
I'd now like to turn the call over to John to review our financial results in detail.
John: John Thanks.
John: Thanks, David before I begin I will remind you that our full financial statements and MD&A for the fourth quarter and full year are available on our website under the investors section.
John: As well as on SEDAR and Edgar all of the following numbers are reported in Canadian dollars.
John: For our financial statements unless noted.
John: Starting with the balance sheet.
John: Total assets at the end of the fourth quarter of fiscal 2024 grew 15% year over year, and 7% sequentially to a new high of $4 8 billion.
John: Cash and securities were $525 million or 11% of total assets.
John: Up from 7% in Q4 last year and 9% in Q3 of this year.
John: Book value per share increased to a record 15 three fives.
John: Okay.
John: Our CET one ratio was 11 two 4%.
John: And our leverage ratio was 738% with both remaining above our internal targets.
John: Turning to the income statement.
Speaker Change: As David described there were a number of one time items, mostly related to the U S Bank acquisition that impacted the fourth quarter and full year results.
Speaker Change: Yes.
Speaker Change: A number of onetime noninterest expenses.
Speaker Change: The expense of a deferred tax asset due to a change in tax base of the acquired assets of versa Bank USA.
Speaker Change: Maintaining higher than typical cash balances ahead of the closing of the acquisition, which was exasperated by the impact of a temporary dampening of net interest margin that usually occurs when interest rates decline.
Speaker Change: And 90 million U S dollars and funding provided to versa Bank USA at closing of the SBA acquisition.
Speaker Change: Okay.
Total consolidated revenue was $27 3 million compared to $29 2 million last year.
Speaker Change: The year over year difference was driven primarily by lower non interest income from the bank cyber security operations. Dr. T. G. But was also impacted by higher cash assets associated with the funding of the U S Bank.
Speaker Change: Consolidated non interest expense was $19 4 million compared to $12 4 million last year and $13 5 million for Q3 of this year.
Speaker Change: The quarter included $3 3 million in onetime costs that were mostly associated with U S Bank acquisition.
Speaker Change: The $3 3 million brought total acquisition related onetime costs for the year to $3 7 million.
Speaker Change: As a reminder.
Speaker Change: <unk> expenses DRG cyber expenses are included in our consolidated <unk> and totaled $2 6 million and $9 4 million for the quarter.
Speaker Change: For the quarter and year, respectively, Cleveland Prospectively.
Speaker Change: Finally, as David noted, we will see <unk> return to a normalized level in Q1.
Speaker Change: Excluding one one time <unk> and other onetime impacts.
Speaker Change: The impacts I just described consolidated net income for the quarter was $10 million or 38 cents per share and consolidated net income for the year was $45 million or $1 69 per share.
Speaker Change: Yes.
Speaker Change: Looking at our digital banking operations.
Speaker Change: Which with the close of the U S acquisition on October 30th now consists of our Canadian banking operations in our U S banking operations.
Speaker Change: As David mentioned these are broken out in our press release and MD&A, but for the sake of brevity I will discuss the combined results as the U S banking operations had little or had limited although positive contribution.
Speaker Change: Our loan portfolio grew to a new record of $4. Two 4 million at the end of Q4, driven once again by our point of sale receivable purchase program, which.
Speaker Change: Which increased 15% year over year over year, or 2% sequentially to $3 3 billion.
Speaker Change: Our RVP portfolio represents 78% of our total loan portfolio at the end of Q4 down from 80% at the end of Q3.
Speaker Change: As David noted RPT growth was dampened for both periods due to a higher amount of put backs.
Speaker Change: Our real estate portfolio contracted 12.
Speaker Change: 12% year over year to $788 million as we continue to transition the portfolio towards CMA Sea insured loans, we are starting to see a ramp up of the program, which drove a 6% sequential increase in the real estate portfolio.
We are currently we currently have commitments of close to $600 million.
Speaker Change: With the loans outstanding of over $210 million, which continues to grow monthly almost doubling since the end of Q3.
Speaker Change: As a reminder, our real estate portfolio is primarily business to business mortgages and construction loans for real estate properties, sorry for residential properties, we have little exposure to commercial use properties.
Turning to the income statement for our digital banking operations.
Net interest margins on loans that is excluding cash and securities was 234%.
Speaker Change: That was 35 basis points or 13% lower on a year over year basis, and seven seven basis points or 3% sequentially.
Speaker Change: Mainly the result of an atypical inverted yield curve adversely affecting Pos margins and.
Speaker Change: And the change in the real estate portfolio to CMA Chi insured loans.
Speaker Change: Net interest margin.
Speaker Change: Including the impact of cash and securities and other assets was two 2%, which was impacted by the higher cash balances as well as the $90 million in capital provided to use digital banking operations from the Canadian Digital Bank.
Speaker Change: Net income excluding onetime impacts for the digital banking operations for the quarter was $10 million or <unk> 38 per share.
Speaker Change: Net income for the Canadian banking operations was $9 5 million or <unk> 36, a share.
Speaker Change: And net income for the U S banking operations.
Speaker Change: Which for the quarter included includes the contribution of only the acquired Stearns holding for bank operations was $5 million or <unk> <unk> per share.
Our pas.
Speaker Change: Turning to our.
Speaker Change: Our credit losses are provision for credit losses, or PCL in Q4 remained <unk>.
Speaker Change: Negligible at negative 0.01% on average assets compared to negative 0.0 to last year.
Speaker Change: And with a 12 quarter average of zero percent.
Speaker Change: I'd now like to turn the call back to David for some closing remarks David.
David: Well thank you John.
David: 2025 provinces another year of growth in our loan portfolio and profitability driving continued improvements in our efficiency ratio. Our return on common equity as we continue to capitalize on the operating leverage in our business model.
David: We have a strong foundation in our Canadian digital banking operations, where we are very proud to lead the public traded banks and net interest margin, which is even more impressive given that we don't give out it seemed back for loan losses.
David: We expect continued steady growth in Canada with our receivable purchase program expanding in line with.
David: 2024, and some upside should interest rates continue their downward trend.
David: As forecast and we expect to begin to see the contribution of our growing CMA insured loan business and our opportunistic real estate portfolio.
David: As a reminder, these are zero risk weighted loans, requiring no capital and delivering a very nice spread.
David: We also expect to see continuation of several favorable trends that support net interest margin.
David: As noted earlier, we are also starting to see the flattening of the yield curve, which will be beneficial to the spread of our RP P loans.
David: In addition, we should continue to see favorable impact of our low cluster solvency professional deposit business in Canada as bankruptcies continue to steadily trend upward.
We're moving aggressively forward in U S. R. P P opportunity.
David: We're in the process of moving our first U S partners from our pilot program.
David: First bank USA balance sheets.
David: More importantly, we expect to add our first post acquisition partner eminently and.
David: And others to follow in due course.
David: I will note that it does take some time to try and life based contracts and onboard new partners. However, we do expect the pace of new additions to accelerate going forward.
David: We have a robust and growing pipeline as our discussions with both potential partners and others in the industry continue to validate that our RP P is both unique and very attractive solution for companies.
Speaker Change: Who will find out as big ticket and service.
David: Is that the point of sale.
David: We expect to be very accurate ramp up in 2020 five earlier today.
David: We announced that we are transitioning the team responsible for the success of the Canadian RFP P to the U S opportunity. This team of Nick Christo appointed Chief Credit Officer for the U S. Mike Dickson appointed SVP RP in the U S.
David: Fundamental to the growth and success of the ERP being Canada since inception 14 years ago.
David: And along with Mike Ross.
David: Robinson appointed VP or P. P. U S who has been integral to the program for the last seven years are responsible for 27% compounded.
David: Annual growth rate over the last five years more than 9 billion in financings for our point of sale lenders and of course no losses.
David: They joined.
David: Formidable team, whose collective experience and expertise will be invaluable as we scale up the U S. R. P. P program in the multi trillion dollar U S point of sale market.
David: As a reminder, overall, we expect our U S.
David: RP business to benefit from even greater efficiencies.
David: Achieving Canada due to lower personnel requirements.
David: The deposit and lending sides.
David: We have a lot of bench strength in Canada, and we are proud to also announced the appointment of David Chavez as SVP point of sale financing.
David: First the bank, Canada as THAAD in them.
Speaker Change: Credit Officer first the bank yeah, congratulations guys.
Speaker Change: We will grow our U S <unk> business as quickly as our balance sheet capacity permit given the significant anticipated demand we will at least initially be syndicating RFP P loans to other U S banks under this model we earn at Tiptree.
Speaker Change: Typical RFP P spread on the portion of the loan.
Speaker Change: And our partner earns the same spread.
Speaker Change: On the other portion and we earn a fee expect should be around 1% from our partner banks.
Speaker Change: The cash hold backs will reside on our balance sheet and the risk profile lessens shapes.
Speaker Change: We gained some diversification.
Speaker Change: As to our partners.
Speaker Change: You can think of this simply as first the bank. Additionally, white labeling our P P to generate greater profitability.
Speaker Change: And just as a reminder, we do expect the ERP piece spreads to be as much as 1% higher than the <unk>.
Kevin: Thank you Kevin.
Speaker Change: One final note before we open the call to questions. Those of you who follow up versus the bank for some time to build up within our wholly owned.
Speaker Change: Washington D C based cyber security firm DRG cyber we develop what we believe to be the.
Speaker Change: World's first.
Speaker Change: In our opinion the world's most secure digital bulk burst of all.
Speaker Change: As well as two.
Speaker Change: Knowledge, the world's first digital deposit receipts.
Speaker Change: Can be issued by banks themselves.
Speaker Change: We believe these technologies have a tremendous value, enabling U S banks to provide state of the art access to the emerging world of digital Commerce.
Speaker Change: Thus, we are very encouraged by the favorable stance president elect Donald Trump and his proposed the administration with respect to digital currencies and what we will it will mean for our made in America solutions are digital deposit receipts are on the algorithms.
Speaker Change: <unk> been stellar bought chains and our stock to type one compliant using first of all.
Speaker Change: With that I'd like to open up the call to questions operator.
Speaker Change: Thank you Mr. Taylor, ladies and gentlemen, if you would like to ask a question. Please press star followed by one on you touched on something you will then hear a prompt that your hand has been raised should you wish to decline from the polling process. Please press star followed by two.
Speaker Change: And if you're using a speaker phone please lift the handset first before pressing any keys.
One moment please.
Speaker Change: And your first question will be from Tim Switzer K B W. Please go ahead.
Hey, good morning, guys. Thank you for taking my questions.
Speaker Change: Good morning, Jim.
Speaker Change: Could you provide an update on how the conversations with new partners in the U S are going and.
Jim: How many partners should we expect to be kind of fully launched over the next few.
Jim: Okay.
Speaker Change: Okay Fair.
Speaker Change: Very productive discussions with one U S bank as a partner and we've tested that.
Speaker Change: Data flow it works exceptionally well.
Speaker Change: So we did expect some.
Speaker Change: Very soon to have our first our P. P.
Speaker Change: The new point of sale partner and will also house.
Speaker Change: Our partner Bank sharing.
Speaker Change: Sharing in those loans so.
Speaker Change: I said absolutely and.
Speaker Change: We're just in the paper.
Speaker Change: The pay per stage or doors or.
Speaker Change: Our working as hopefully as quickly as they can put that one to bed.
Speaker Change: With respect to addition additional partners.
Speaker Change: This has been about 30 or so that we've been talking to and I think that constrained. It's just been how fast we're going to be able to do the paperwork to sign them up.
Speaker Change: Okay, great and related to that how should we think about the origination trajectory in the U S and the balance sheet growth over the course of the year.
Speaker Change: Is it a gradual acceleration kind of evenly each quarter or is there a point.
Speaker Change: In a year, where you think it really starts to significantly.
Speaker Change: Well.
Speaker Change: It's sort of.
Speaker Change: Quantum.
Speaker Change: Dumps and in growth depending on how fast we sign up the partners.
Speaker Change: Right now, we're looking to have on balance sheet about $250 million by.
Speaker Change: But at the end of the year.
Speaker Change: And.
That would be sharing.
Speaker Change: 50% with other with other banks.
Speaker Change: So in total as southern administration about 500 million.
Speaker Change: And.
Speaker Change: It may grow a lot faster depending on how quickly we can we can get the paperwork done.
Speaker Change: Okay, and if I can get one more please.
Speaker Change: What is the expense outlook for next year once we exclude some of the one timers you guys report or our most of the costs associated with running the U S business now in the run rate or is there kind of another lift.
Speaker Change: Through the expense basis some of these customers.
Speaker Change: Most of the expenses are now or the run rate in that.
Speaker Change: We've hired almost everybody we need to run the U S.
Speaker Change: He may have a couple more of them to put on about the heavy hitters are already onboard.
Speaker Change: Perfect. Okay. That's all for me thank you.
Speaker Change: Thanks, Tim.
Speaker Change: Next question will be from David Feaster, Raymond James. Please go ahead David.
David Feaster: Hi, good morning, everybody.
Speaker Change: Good morning, David.
Speaker Change: And Jordan.
Speaker Change: Florida today thankfully.
Speaker Change: That's great.
Speaker Change: One thing that you touched on was.
Speaker Change: Given the governors the growth governors on the U S expansion.
Speaker Change: All are going to be syndicating some loans out.
Speaker Change: To be able to support the growth, but not necessarily have it all on balance sheet I'm curious, where you are in the build out and in that process in the platform.
Speaker Change: And whether you've started to test that yet.
Well, we built it's called <unk> three point so.
Speaker Change: That's short for asset management system, three pointed out Canada, we use EMS two <unk>.
Speaker Change: No. It's in the cloud just filter in des Moines, Iowa.
Speaker Change: At the Azure facility and its fully functional.
Speaker Change: Yeah. It's also on the syndication side, it's also able to parse each individual loan.
Speaker Change: The component parts, but we read retained on our balance sheet our partners would retain so that's all set to go.
Speaker Change: We're just waiting for the.
Speaker Change: Finalize the documentation for the first brand new point of sale partner.
Speaker Change: Hopefully.
Speaker Change: That's very soon and then and then the the data starts to flow representing the loans being parse for us and for our first community Bank partner.
Speaker Change: Okay, and then you touched on some of the differences to between kind of the <unk>.
Speaker Change: Small ticket opportunity and in the larger ticket opportunity I'm curious, maybe where are you focused in the U S. Currently like where do you see the most opportunity here as it is in the smaller ticket or or maybe some of the larger stuff.
Speaker Change: It's mainly the larger stuff, although our software is capable of dealing with it.
Speaker Change: Tiny tiny loans too, but the sweet spot is the larger ticket items such as home improvement.
Speaker Change: <unk> systems that sort of thing.
Speaker Change: But I think the United States to be quite similar to what we experienced in Canada about 50% of our point of sale portfolio as it is.
This whole recruitment.
Speaker Change: Okay, and then last one for me.
Speaker Change: On the you talked about 100 basis point better spread in the states do you see more opportunity is that on the funding side or is it on on the loan yield side, and then just kind of too to the funding side you touched on.
Speaker Change: The election, and the potential tailwind maybe for some from digital currency I'm curious you know.
Speaker Change: If there's any interest in bringing back cadby.
Speaker Change: And that.
<unk>.
Speaker Change: Well.
Speaker Change: Good points.
We've seen on the test market, we did in the United States, We got better yields and we got lower cost of funds to.
Speaker Change: To give rise to that approximately 1% additional spreads. So it was both on the yield and on the.
Speaker Change: On the funding side.
Speaker Change: With respect to <unk> technology.
Speaker Change: We announced four years ago.
Speaker Change: We're proud of it.
We have the will be called V USD CAD or did show deposit receipts on dahlgren stellar to Syria.
Speaker Change: And square.
Speaker Change: <unk> reviewed and obtain talk to Taiwan ratings. So that technology is all set to go but there's polymer funds.
Speaker Change: George Orwell said no wine before its time.
Speaker Change: Uh huh.
Speaker Change: Regulatory environment wasn't mature enough to receive that product, but it appears with the Trump.
Speaker Change: A point or two pending in point Jason it.
Speaker Change: It looks like a favorable environment for digital in Congress.
Speaker Change: That this product that we have that's been tested next few fully functional.
Speaker Change: What would be sort of a wonderful towards the smaller outside the United States to to use somewhere.
Speaker Change: She stands ready to provide that service for them.
With respect to our own bank.
Speaker Change: We have obsessed.
Speaker Change: Such wonderful access to cheap deposits through the large brokerage firms there isn't.
Speaker Change: A lot of.
Speaker Change: No need for us to adopt that.
Speaker Change: We have our work cut out for us.
Speaker Change: Expand the ERP program.
Speaker Change: But Dr. Qi cyber could provide that service to others small banks community banks that don't have this.
Speaker Change: The waterflood says we do two very cheap funding.
Speaker Change: It would be a product for <unk> sometime in the future. It may be something that we are U S bank adopts too, but so there isn't any.
Speaker Change: Any burning need for our bank to go dark.
Speaker Change: Okay, and then maybe if I could squeeze one more in you touched about increased put backs to your partners in Canada, We're really validating your business model and that's great you've had no credit issues, but I'm curious maybe how has this impacted the partners in Canada and health of their balance sheet and in their ability to absorb those losses so far.
Speaker Change: <unk>.
Speaker Change: Well.
Speaker Change: That's what they've been able to do that we tend to pick the strongest point.
Speaker Change: Point of sale partners, we can we can say that they've been.
But is it sort of the inevitable downturn some people in Canada are calling a recession and considering our trustee deposits have increased by 20% year over year, that's a big number for a 20% increase in bankruptcy.
Speaker Change: We probably are in a bit of a recession, but our partners have stood up.
Speaker Change: Seem to be fine, we're all sort of eagerly awaiting perhaps a jumbo decrease in the overnight Richard Thanks in Canada, that's got that might be announced on Wednesday.
Speaker Change: So generally speaking.
Speaker Change: Our model has held up wonderfully and it just slowed growth.
Speaker Change: With.
Speaker Change: Record high put backs this year and our partners seem to be in good shape and if the bank had a drops the rates as people are hoping to predicting.
Speaker Change: Does that not suddenly return us to that upward sloping yield curve again, where we we were scoring about 300 basis points in net interest margin. So.
Speaker Change: So stay tuned I hope Wednesday is a good news for the case.
Yes.
That's great color thanks, everybody. Thank.
Thank you.
Ladies and gentlemen, a reminder to please press star one on your telephone keypad should you have any questions.
Speaker Change: Next question will be from Andrew Scott with Roth Capital Partners. Please go ahead Andrew.
Andrew Scott: Hey, good morning, guys.
Andrew Scott: Thanks for taking my questions.
Andrew Scott: First one for me you guys saw a return to growth in your CRE portfolio. I know you guys and recently and kind of right sizing that portfolio may be changing up the next Steve you kind of talk about how you feel about the portfolio, where it is now and maybe provide some additional color on the.
Andrew Scott: The <unk> portfolio.
Speaker Change: Oh, absolutely. So this portfolio is.
Speaker Change: Almost all.
Speaker Change: Composed of loans residential properties.
Speaker Change: There's two types one we call it conventional loans. So this is sort of the normal loans that banks have made over the years that our risk weighted fairly highly.
Speaker Change: Yeah.
Speaker Change: So this will be multifamily normally construction apartment blocks instruction.
Speaker Change: Low rise.
Speaker Change: And.
Speaker Change: Because of the high risk weighting.
Speaker Change: There's little additional risk involved.
Speaker Change: We're running a loan to value ratio of around 60% on this.
Speaker Change: We have pivoted over too.
Speaker Change: She handmade see insurance construction mortgages.
Speaker Change: Wonderful.
Speaker Change: There is zero percent risk weighted so don't absorb any you see tier one capital and match really nicely against start or a floating rate.
Speaker Change: Steve deposits on average we pay about.
Speaker Change: It's a prime minus.
Speaker Change: 285 on those and we are in.
Speaker Change: Maybe prime minus 20 on the CMA Sea. So we're we're making about 265 basis point spread on a zero risk weighted assets.
Speaker Change: Yeah.
Speaker Change: No capital required that's the portfolio that Jon talks about this.
$600 million right now and committed facilities the drawdown in 2025.
Speaker Change: We had last quarter.
Speaker Change: We're looking at probably figure increasing by the end of 2000 22025 to $1 5 billion or maybe even two.
Speaker Change: So.
Speaker Change: It's a really.
Speaker Change: Wonderful opportunity for us to help with the construction in Canada, but not take.
Speaker Change: Hardly any risk because the government insured and get a really good rate of return.
Speaker Change: Great well, thank you for the additional color and then.
Speaker Change: Second one for me you've kind of expanded on this earlier, but as you look out into 2025 can you kind of just talk through the pipeline of our business activity for Dr. T C.
Speaker Change: Well.
Speaker Change: Dr. Qi <unk> cyber security business has been growing quite by the sign up of new customers quite dramatic like we've had some really big.
Speaker Change: Well known names.
Speaker Change: And that the revenue hasn't slowed.
Speaker Change: The statements, Jeff but are not all the visits.
Speaker Change: To come in so this increased demand for <unk> cyber security product amongst the big players the brand name.
Speaker Change: Our retailers.
Speaker Change: Other financial institutions, but.
Speaker Change: The projects that we haven't <unk> that we just sort of kept under wraps for a while obtaining a more favorable regulatory environment is the.
Speaker Change: Our ability to issue digital deposit receipts. So this is the state of the art.
Speaker Change: Just for the conference work for them.
Speaker Change: Very smart individual pointed out that's a huge difference between a stable coin.
Speaker Change: <unk> bye.
Speaker Change: Got it.
Speaker Change: Assets or deposits held by somebody else and in actual digital deposit received which represents the deposits held by real bank.
Speaker Change: And we've developed this technology about four years ago and proved it all out in house. So that's an.
Speaker Change: How did the audited Bobby.
Speaker Change: But we just kept on the shelf until the right time, but it looks it looks like it is the right time, so we could host this for.
Speaker Change: Thousands of community banks in United States and bring them to this new state of the art way to raise deposits let their customers.
Speaker Change: Have the deposits and E wallets, and such and transact business and almost.
Speaker Change: Negligible season, it's almost instantaneous so state of the art payment.
Speaker Change: Vehicles today they are deposits.
Speaker Change: So for example.
Speaker Change: Hey.
Speaker Change: Say you bought.
Speaker Change: Bought bitcoin as a thousand bucks.
Speaker Change: There's hundreds of thousands of box and you liked to swap it into a back of the closet well that can be done seamlessly in your re wallet with with RV USD product Turvy cabs.
Speaker Change: Two of our technology and our versatile bolt.
Speaker Change: And I think.
Speaker Change: At the time is right.
Speaker Change: I was quoting George Orwell's Wombat change no wine before its time.
Speaker Change: And that's why we just did.
Speaker Change: Promoted or just kept it on the shelf because you know.
Speaker Change: The regulatory environment has to mature and our regulators had too.
Speaker Change: Got the rules in place and I think regulators would like banks to issue these types of products rather than the unregulated entities have.
Speaker Change: Some cases got into trouble in the past so it's the service <unk> C to provide.
Speaker Change: Pretty excited about it I think it's it's something that a lot of community banks. So I wanted to take this upfront.
Speaker Change: Alright, yeah that sounds like a wonderful opportunity.
Speaker Change: Congrats on a gross and thanks for taking my questions.
Speaker Change: Well, thank you Andrew.
Andrew Scott: Look forward to talking to you later on.
Speaker Change: Ladies and gentlemen, again, a reminder to please press star followed by one should you have any questions.
Speaker Change: And at this time Mr. Taylor, we have no other questions. Please proceed.
Speaker Change: Already.
Speaker Change: Well I'd just like to thank everybody for joining the call and look forward to talking to you at the end of <unk>.
Speaker Change: The next quarter.
Speaker Change: Stay safe.
Speaker Change: And so log I'll have to put some suntan lotion on here being a cloud based bank and our U S operation, though I've got the luxury of operating anywhere in North America.
Speaker Change: Today, it's a very sunny day in Lauderdale.
Speaker Change: Thank you.
Speaker Change: Thank you, Sir ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending and at this time, we ask that you. Please disconnect your lines.
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