Operator: Thank you for standing by, and welcome to the First Hawaiian Inc.'s Q3 2026 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. If your question has been answered and you would like to remove yourself from the queue, simply press star one one again. As a reminder, today's program is being recorded. Now I would like to introduce your host for today's program, Kevin Haseyama, Senior Vice President, Strategic Planning, and Investor Relations. Please go ahead, sir.
Kevin Haseyama: Thank you, Jonathan. Thank you everyone for joining us as we review our financial results for the Q3 of 2026. With me today are Bob Harrison, Chairman, President, and CEO, Jamie Moses, Chief Financial Officer, and Lea Nakamura, Chief Risk Officer. We have prepared a slide presentation that we will refer to in our remarks today. The presentation is available for downloading and viewing on our website at fhb.com in the investor relations section. During today's call, we will be making forward-looking statements, so please refer to slide 1 for our safe harbor statement. We may also discuss certain non-GAAP financial measures. The appendix to this presentation contains reconciliations of these non-GAAP financial measurements to the most directly comparable GAAP measurements. Now I will turn the call over to Bob.
Bob Harrison: Thank you, Kevin. Appreciate everybody joining us today. Turning to slide 2, I will start by providing an update on the acquisition. As you can see from the slide, we are making good progress obtaining the necessary regulatory and shareholder approvals. The next major milestones are the shareholder special meetings on 29 October and obtaining final regulatory approvals. Integration planning is going well and we continue to expect to close this quarter. We will provide updates throughout the process. Now a quick overview of the local economy. It has been a challenging year as the state deals with dual headwinds of both higher energy costs and an unusually active storm season. In spite of that, the economy continues to grow, albeit at a slower pace. Statewide unemployment rate was relatively stable at 2.8% for September, compared to the national unemployment rate of 4.2% for the same month. Visitor industry continues to be resilient.
Bob Harrison: Total visitor arrivals were up 1.8% compared to last year, primarily due to visitors from the mainland US and Japan. Year-to-date spending through August was $15.2 billion, up 4.1% for the comparable period in 2025. The housing market remains stable. Median single-family home price on Oahu was $1.1 million in September, down 3.9% from last year. The condo prices remain stable at $523,000, up 2.8% from 2025. Turning to slide 3, our results for the quarter reflect a continued solid performance by the team. Net interest income increased, deposit cost declined, while deposit balances grew, and the margin increased 5 basis points. Net interest income was in line with expectations, and non-interest expenses came in below expectations, excluding merger-related costs and a tax settlement expense.
Bob Harrison: The $24.3 million tax settlement expense stemmed from a settlement with the state of California on tax liabilities resulting from our 2016 separation from BNP Paribas. The aforementioned tax settlement also resulted in a $31 million tax benefit in Q3. Overall, credit quality remains good, but we did have some noise in our credit metrics this quarter, and Lea Nakamura will provide more details when she goes over that later. Turning to slide 4, the balance sheet remains solid. We continue to be well-capitalized with ample liquidity. Balance sheet remains asset sensitive and well-positioned to benefit from a higher for longer rate scenario. During the quarter, we did not repurchase any shares. Turning to slide 5, total loans declined $115 million in the quarter. The decline was primarily due to unexpected CRE loan payoffs, a slight decline in dealer floorplan balances, and runoff in the residential loan portfolio.
Bob Harrison: As an example, we did have one large CRE loan that was paid off unexpectedly, being refinanced by a mainland lender that offered very aggressive pricing, and I think that's a reflection of the credit quality of the portfolio as well as demand. Payoffs were more heavily weighted towards the end of the quarter, as average balances in Q3 were slightly higher than the previous quarter. Now I'll turn it over to Jamie Moses.
Jamie Moses: Thanks, Bob Harrison. Turning to slide 6. Total deposits were up about $50 million, while our total cost of deposits fell by 3 basis points in Q3. Increased commercial and public operating deposit balances were partially offset by a decline in retail deposits. Our non-interest-bearing deposit ratio was 32%. On slide 7, net interest income was $174.1 million, $3.1 million more than the prior quarter. The increase in NII was driven by the increase in the margin, along with the higher average loan balances in the quarter. The NIM in Q3 was 3.30%, up 5 basis points linked quarter, with both asset yield and funding costs helping to drive that NIM accretion. Turning to slide 8, non-interest income was $56.1 million, in line with our outlook. Non-interest expense in Q3 was $160 million.
Jamie Moses: The quarter included $6.7 million of merger-related costs and, as Bob mentioned, also included a $24.3 million expense related to a California tax settlement agreement related to our 2016 IPO. This expense was more than offset by the $31 million tax benefit that we recognized as part of that settlement. Excluding these items, operating expenses were well within our expectations. Now I will turn it over to Lea.
Lea Nakamura: Thank you, Jamie. Moving to slide 9. While we had some noise in the third quarter, the overall loan portfolio remains healthy. Asset quality remains strong, and the portfolios continue to perform within our expectations. Our risk appetite has not changed. We continue to manage our portfolio such that asset quality remains within our risk appetite as demonstrated by historical norms. This slide summarizes some of the drivers behind the changes in some of the key credit measures this quarter. Third quarter net charge-offs were $21.9 million, or 60 basis points of total loans and leases. This was primarily driven by a $12.5 million partial charge-off of a participated loan on an office building located in downtown Seattle.
Lea Nakamura: This loan was originated in 2019 and performed well through COVID, but has struggled due to the shifting economics associated with the city's contraction in office demand and higher for longer interest rates. We believe that this is an isolated situation. Our downtown Seattle office portfolio consists of only one other loan, which continues to perform and is backed by a very strong sponsor with whom we have partnered for many years. Our year-to-date annualized net charge-off rate is 29 basis points. Criticized assets increased by 72 basis points in the third quarter. This increase was primarily the result of four non-office commercial real estate loan downgrades. It is important to note that while the credit review process resulted in these downgrades, we believe that the actual loss content is limited. The bank recorded a $20.3 million provision in the third quarter.
Lea Nakamura: The increased provision expense was driven by the office charge-off and the CRE loan downgrades. The allowance for credit losses decreased by $4 million to $164 million, with a coverage ratio of 1.14% of total loans and leases. Non-performing assets and loans 90 days or more past due were 45 basis points of total loans and leases at the end of the third quarter. This increase was primarily related to operational issues arising out of the recent outsourcing of our residential mortgage servicing, as well as the previously mentioned charged-off office loan, as the portion that was not charged off is placed on non-accrual. Since the end of the quarter, 40% of these residential mortgage loans have been brought current, and we are confident that we will be able to resolve the remaining population in good order.
Lea Nakamura: Turning to slide 10, you can see a summary of our key credit metrics. Now I will turn it back over to Bob.
Bob Harrison: Thank you, Lea. On slide 11, we have our updated outlook for key performance drivers. We obviously didn't get the loan growth we expected in Q3, so we're reducing our full-year loan outlook to 1% to 2% growth, down from 3% to 4% growth. Our asset-sensitive balance sheet continues to benefit from the higher interest rate environment. So we expect NIM in Q4 to be between 3.34% to 3.35%, which increases our full-year NIM outlook to 3.26% to 3.27%. Our outlook for non-interest income remains about $220 million for the full year. Expenses, excluding merger-related costs and tax expense in Q3 related to that settlement, is expected to come in lower than we previously thought. Our full-year outlook is now in the $510 to $515 million range.
Bob Harrison: The effective tax rate should remain unchanged, and we're expecting approximately $25 million in merger-related costs in Q4. Now we would be happy to take your questions.
Operator: Certainly. As a reminder, ladies and gentlemen, if you do have a question at this time, please press *11 on your telephone. Our first question for today comes from the line of Andrew Terrell from Stephens. Your question please.
Andrew Terrell: Hey, good morning. Maybe if I could just start on the loan growth. It looks like the expectation is, if I am reading it right, for pretty flat loans, maybe up a little bit in Q4. Can you just talk us through the pipelines today, opportunities you are seeing for growth out there right now?
Bob Harrison: Yeah, Andrew, Bob. To answer your question, the pipeline is still there. We still have quite a bit of loans in process. It is really the continuing battle of things getting paid off. So really, that is the balance between a solid pipeline and looking over our shoulder a little bit for things that are unexpected.
Andrew Terrell: Okay. If I could ask just on the margin, I appreciate the guidance for Q4. There is, I think, a pretty wide range out there in terms of estimates for 2027 margin right now. Could you just talk to us when you put TriCo on the fold? I know it may be tough to put a finger on, but can you just talk us through the general expectation of what pro forma margin is? I do not know the best way to slice it, but just trying to tighten up maybe expectations a little.
Jamie Moses: Andrew, it is Jamie. I appreciate the question, I understand why you would ask it. That is kind of hard for me to answer at the moment, for sure. I can speak to our margin. We continue to see the effects of fixed rate cash flow repricing on our balance sheet. It is about $400 million or so a quarter. The spread in this past quarter was about 170. So we think the spread is maybe 160 to 170 going forward on that. Of course, that depends on Fed rate increases or not. Just a reminder, we expect, generally speaking, if there is a Fed rate increase in a prior quarter, we would expect a couple basis points of margin accretion based on that.
Jamie Moses: With the fixed rate cash flow repricing and then just general repricing on the balance sheet, we would expect another couple basis points or so, just if rates remain flat. That is what I got for you today.
Bob Harrison: Andrew, this is Bob again. Just more color on the loan side. We are seeing a still solid pipeline for CRE. To break it down a little bit, the residentials continue to run off, given the rate outlook. It is going to be difficult to see residential activity really picking up. But we are seeing CRE still being strong, and typically, we do not know if it is going to come through, but typically, at the end of the year, you do see an increase in dealer floorplan balances. So if we follow the usual norm, this should be an okay Q4. But we did adjust our guidance to take into account what happened in Q3.
Andrew Terrell: Great. Thanks so much for taking the questions.
Operator: Thank you. Our next question comes from the line of David Feaster from Raymond James. Your question please.
David Feaster: Hi. Good morning, everybody.
Jamie Moses: Morning, Dave.
David Feaster: I just wanted to start on the funding side. You have a huge advantage being in Hawaii, and the kind of the closed-loop nature of that market. Funding costs have continued to come down. I am just kind of curious, the competitive landscape here, as rates are going higher, do you have more funding cost leverage left, or do you think we are kind of at a trough here?
Jamie Moses: Hey, David. It is Jamie. I think we are kind of at a trough in this quarter. I think this is probably as low as it is going to be, especially given the rate outlook that we have seen. Of course, that can change. Competitive pressures here in Hawaii continue to be muted, let us call it. All the large four banks here are all in the same boat in terms of loans to deposit ratio and things like that. So, the competition is about kind of what it always has been. So rates up, I think will kind of drive sort of let us call it CD repricing slightly higher because of that. And then we have our normal competition where we are competitive with each other around client acquisition. So, we are probably at a trough now.
Jamie Moses: I guess the best way to describe it is, we think maybe interest-bearing deposit beta is somewhere in the 40% ratio in totality, where in total deposit betas will be like 30 or so, some 30 basis points or something like that.
David Feaster: Okay. Terrific. Just looking at TriCo, they had a pretty solid quarter, right? I am just kind of curious, as you guys are working together, getting prepared for the closing. Still expecting to close by year-end. I guess, as you have gotten to know their team more, how is lockups going? How are you preparing for the integration and conversion? Just kind of any updates on that. I think that is one of the bigger risks with the deal, right? Is just the execution of integrating this and getting that done smoothly. Could you just touch on some of the things that you are working on to prepare for that and make it as smooth a transition as possible?
Bob Harrison: Sure, Dave. This is Bob. Happy to answer that question. Yes, we are very focused on that. We are working very closely with them. Jamie Moses is actually heading our integration management office. Peter Wiese, their CFO, is heading it on their side. They are working closely on organizing the teams to get ready for post-closing, whenever that happens. It should be Q4, as we have talked about. So that is happening. We have reached out to a number of their people. The vast majority are staying on with us. There are one, maybe two that are not, and that is not unexpected. But really, we are excited to be working with them and so far really working closely together to see how we can get that done. We totally agree with you. The execution risk is what we are completely focused on, and that is what matters, and that is where we are spending a lot of time on it.
Bob Harrison: Exchanging visits between TriCo to First Hawaiian and First Hawaiian employees going up to TriCo. Everybody getting to know each other. Really spending the time so that when we do close, we can really hit the ground running to make this work.
David Feaster: Okay. Then maybe just kind of following up on that. When I talk to investors, one of the biggest concerns that they have is, I guess, can you let TriCo be TriCo? Because TriCo is, as we talked about, this is a merger of two really good banks, right? And TriCo's performing very well. How do you think about letting just the integration as two separate banks running two separate markets. How do you think about letting them do what they do versus what are you going to bring in-house and maybe change some of what they do? I am just kind of curious, how do you think about that whole concept?
Bob Harrison: Yeah. Rick and I have spent a lot of time talking about that. It is the most important thing to get right, so to speak. Of course, you need to do the core conversion, you need to do all those other things. But the really long-term value comes from letting TriCo be TriCo and us supporting them with their customers and in their markets. If there is things we can learn from them, we will. If there is things they can learn from us, I am sure they are open to that. I know they are because we have talked about it. So, execution will prove that, and we just need to get through that. But that is a top priority for both Rick and myself and both sets of management teams as well.
Bob Harrison: It is not just the two folks at the top, it is really both sets of management teams thinking and working the same way.
David Feaster: Terrific. Thanks, everybody.
Operator: Thank you. Our next question comes from the line of Anthony Elian from J.P. Morgan. Your question, please.
Anthony Elian: Hi, everyone. On slide 6, you call out you saw some nice growth in commercial deposits from Q2. Can you give us some more color on what drove that and how you are thinking about commercial deposit and overall deposit growth going forward?
Jamie Moses: Yeah. Hey, Tony, it is Jamie. I would call that sort of normal flows that we saw in the quarter on the commercial side. Same kind of thing on the retail side, some sort of what I will call like normal outflows. Typically, what we have in the Q4 is inflows across both retail and commercial for sure. Sometimes we see that in public, but that is a little more event-driven. I would say if you look to our past Q4 growth guidance, those are where we usually come in in the Q4. I kind of always say this, we hesitate to call it seasonal because we are not sure what really drives it. It just seems to happen for us in the Q4 every year. So we would expect some deposit growth in the quarter.
Anthony Elian: Thank you. My follow-up on credit, could you give us some more color on other office or CRE loans you may be taking a closer look at, your level of confidence that Q3 is just a one-off quarter in terms of the migration you saw, and any additional credit reviews you are doing? Thank you.
Bob Harrison: Yeah, Tony, this is Bob. Maybe I will start and then hand it off to Lea. I think maybe it is worth taking a second on the office building in Seattle. That is a key market that we have known for a long time. It was a two-bank deal with a very strong agent, very strong sponsor at the time. It is still 75% occupied by a federal agency that is paying its rent. It is just downtown Seattle, if you have not been there, is challenged right now. The office market is severely impacted on that. That is why we consider that one really a one-off. Having said that, we like to tell all the information we can as soon as we can. Just like we did during COVID, we have been doing deep dives throughout the whole portfolio, and that is what led to some of the regrades.
Bob Harrison: But maybe I will turn it over to Lea for any other comments she has.
Lea Nakamura: No, I think we all understand that the high interest rates have stayed around a lot longer than we thought, and a lot of these loans were put on in a different interest rate environment. So we have been watching very carefully what has been happening to these properties. By and large, we are very comfortable. We remain comfortable. When we enter these deals, we know that potentially there could be some downside, and that is why we have to be very careful about who we choose to participate with, who we choose as our sponsors. We do not have very much in mainland office. It is not one of the portfolios that we are actively expanding. I think the other portions of our portfolios that we advertise as our core, those are still very strong. So yeah.
Bob Harrison: Does that answer your question, Tony?
Anthony Elian: It does. Thank you for the color.
Operator: Thank you. Our next question comes from the line of Matthew Clark from Piper Sandler. Your question, please.
Matthew Clark: Hey, thank you. Good morning, everyone. Just running out the deposit cost conversation, do you have the spot rate at the end of September to give us some visibility?
Jamie Moses: Yeah, it was 117 basis points, the same as it was for the quarter.
Matthew Clark: Okay, great. On the $400 million of cash flows on the asset side, can you split that between loans and securities and the related spread pickup between the two that we should assume? I know it is going to get a little fuzzy with TriCo, but that would be helpful.
Jamie Moses: Yeah. So roughly, let us call it $250 million on the loan side and $150 million on the security side. Let us call it 110 basis points spread on the loans and maybe 200 basis points or so on the securities at this moment.
Matthew Clark: Okay, great. On the downgrade of the four CRE loans, can you just provide a little more color there? It sounds like it is rate-related, but the size of each of those credits, the types of properties, and the outlook for each of those credits.
Lea Nakamura: Three of the downgrades came out of the national SNC exam. Two are portfolio loans, which are multifamily properties in multiple areas. They were entered into several years ago, in 2020. Again, in a different rate environment. Again, not a type of asset that we have actively grown in many, many years. We went into it because we were looking for a little more diversification. We do not really have many of those assets left.
Bob Harrison: But we have looked closely at the loss content.
Bob Harrison: And we think whatever provisions we have made are appropriate for that, Matt.
Matthew Clark: Great. Could you remind us of the size of your SNC portfolio and the percentage that is criticized?
Lea Nakamura: C&I SNC is the credit-only pieces, so the pieces that we bought on the secondary. That is $275 million in outstanding. Everything is pass-rated except for we have an $11.6 million unfunded commitment, and that is special mention. But everything else is pass.
Matthew Clark: Any CRE SNCs?
Lea Nakamura: We have CRE SNCs. I don't-
Bob Harrison: We might have to get back to you with that number.
Lea Nakamura: Yeah
Bob Harrison: Matt.
Matthew Clark: Okay. Thank you.
Operator: Thank you. Our next question comes from the line of Janet Lee from TD Cowen. Your question please.
Janet Lee: Hello.
Bob Harrison: Hey, Janet.
Janet Lee: On the lending front, it looks like C&I was down, most of it from the lower dealer floorplan. Is the expectation that C&I can still grow from here, being partially offset by still elevated CRE payoffs? Or some of your peers have been talking about how the CRE payoffs may moderate a little bit because of higher rates. Or do you see activity declining on either side, CRE or C&I, in terms of the demand?
Bob Harrison: Well, Janet, this is Bob. I think that part of that is much of our C&I, historically, the volatility is driven by dealer floorplan, that comes and goes, depends on what is happening in the market. Obviously, rates being up, dealers are going to do their best to manage their inventory. A little slower economy should lead to higher floorplan balances as cars do not move as quick. Those are both kind of offsetting. It is not an easy answer one way or the other. The balances typically do go up in Q4. We have been onboarding a new client or two every quarter or so. You have some natural growth in the portfolio as well. It really is hard to predict exactly the rate of flows of what the balances are going to be.
Bob Harrison: The only thing we do control is getting out there and working with new customers, potential prospects, and converting those. That is how we take charge of that portfolio. Broadly, in the market for our C&I and unfunded lines, the utilization has been within a few basis points about the same throughout the year. There might be bumps up or down, but we really haven't seen a sustained growth in working capital borrowings, as an example. Does that answer your question?
Janet Lee: Yeah, it does. Thank you. Jamie, just a follow-up to your beta comment, 40%-ish on interest bearing and 30% on total deposit beta. Is that just for legacy First Hawaiian, or does that include TriCo?
Jamie Moses: Yeah. Good question, Janet. That was just us. That is just legacy First Hawaiian.
Janet Lee: How would that change with TriCo, if at all?
Bob Harrison: Hard to know or say at this point. I think once we finally get closed, we will be working together between now and then. We will figure out how all of our strategies will interact and how this will all work out together. But for now, it is kind of hard to say other than that we think very highly of how TriCo has managed their deposit costs over a very long period of time. We would imagine that we are both going to continue to manage our costs in the same way that we do today or in very similar ways.
Janet Lee: Thank you.
Operator: Thank you. Our next question comes from the line of Andrew Liesch from StoneX. Your question please.
Andrew Liesch: Morning, everyone.
Bob Harrison: Morning.
Andrew Liesch: Recognize that you didn't buy back any stock this quarter. Looking to next year, deal's closed, capital ratios itself will still be pretty solid. How are you viewing capital or the buyback at that point? Your capital ratio should be really strong here after the deal closes.
Bob Harrison: Yeah. This is Bob. It's certainly something that we've done consistently for a long time, ever since we went public, and we did pause it for the transaction. The expectation would be that as we put the two organizations together and have the combined balance sheet, we see a lot of accretion, we see a lot of profitability that we'll add to that. And so together, that would certainly be something we would look to. We still have authorization to do buybacks, so all of that's on the table. It's just a little bit early to decide how much and when.
Andrew Liesch: Got it. And then with the new Basel III rules, still expecting maybe 100 basis points to CET1?
Bob Harrison: Yep. That would be our expectation around that.
Andrew Liesch: Got it. That is my question. Thanks so much.
Operator: Thank you. Our next question comes from the line of Megan Lynch from KBW. Your question please.
Meghan Lynch: Hi. Thanks for taking my question. With TriCo coming on, I was sort of wondering back to loan growth and your outlook. Is there any interest or thoughts about reducing the mainland participation book? How are you sort of thinking of your mix as you become one with TriCo?
Bob Harrison: Megan, this is Bob. That is certainly something we are looking at and talking to the TriCo team about. Obviously, we would always rather to have a full relationship with whoever we are doing business with and not have just a lending relationship. The combination of the two of us will allow us to build out the relationship with existing customers of ours that are today lending only or lending and cards only. That will benefit, I think, across the board. Although we are both very liquid, if we have the opportunity to take some of that liquidity and capital and put it towards broader relationships, we will certainly do that, and over time, do less of the credit-only type of lending.
Meghan Lynch: Okay. Awesome. Thank you. That was helpful. On the systems conversion, have you decided which core platform the combined bank will use?
Jamie Moses: We haven't really talked about that yet. We're in discussions. We're continuing to think that the H2 of next year is when we'll have our conversion. The teams are working very well together right now. Very excited about watching the relationships between TriCo and us develop inside the IMO offices. As Bob Harrison mentioned earlier, having people back and forth, getting to know each other a lot better. We feel really good about the way that this partnership is developing. We still continue to be very excited about the strategic nature of this deal. We know they feel the same way as well.
Bob Harrison: Yeah. This is Bob Harrison. Specific to your question, though, we're not ready to announce that at this point.
Meghan Lynch: Oh, I got it. Thank you. Just one more. Could you provide a spot NIM?
Jamie Moses: Yes, it was 333 in September.
Meghan Lynch: Okay, perfect. Thank you. That is it from me.
Operator: Thank you. Once again, ladies and gentlemen, if you do have a question at this time, please press star 1 1 on your telephone. Our next question comes from the line of Jared Shaw from Barclays. Your question, please.
John Ralph: Hi, this is John Ralph for Jared. I guess maybe building on the last couple of questions. As you have gotten to know TriCo more and met more of the frontline employees there, have you thought more about the balance of the combined company between California and Hawaii? I guess any areas of lending that they are focused on that you think are worth investing in post deal close?
Bob Harrison: Yeah. This is Bob. We are certainly having a lot of conversations about that. There are a couple things that they do that we have not done historically, just lack of availability. One is oil and gas, and the other is more agriculture and agriculture-related lending. They do a great job in those spaces, and we are certainly going to support them if there is opportunity to grow there, that we would certainly look to grow in that. A couple of things that we do that maybe we can take over there and see if the opportunity exists, we know the hospitality business very well. Again, that is going to be some of that cross-fertilization between the two teams to see how we can learn off each other, lean in, and grow the combined bank.
John Ralph: Okay, great. Thanks for that. Then I guess leading into the deal close and after, I guess, are there any deposit promos or anything you are doing on the deposit side to make sure you retain those balances over the next 6 to 12 months?
Jamie Moses: Well, we will be looking at all of that stuff over time. I think maybe the right way to think about it is there is no branch overlap, so no branch closures. If you are a California customer of TriCo, you are going to continue to walk into the same branch you always walked into with the same people and your same favorite teller that you always got to talk to. So that sort of disruption would be very much minimized. The disruption will come around the time of say, probably conversion. So we have got some time to think about that, but we will be very focused on retaining customers to the best of our abilities, obviously, in California and here in Hawaii, like we always do. I think customer retention is something we always think about, and we will continue to think about that in the next phase here.
John Ralph: Okay, great. That is all I had. Thanks.
Operator: Thank you. This does conclude the question and answer session of today's program. I would like to hand the program back to Kevin Haseyama for any further remarks.
Kevin Haseyama: Thank you. We appreciate your interest in First Hawaiian, and please feel free to contact me if you have any additional questions. Thanks again for joining us, and have a good weekend.
Operator: Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.
