Bank of Hawaii Corp (BOH) 2009 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the first quarter 2009 Bank of Hawaii Corporation earnings conference call. I will be your coordinator for today. (Operator Instructions). We will be facilitating a question-and-answer session towards the end of this conference. (Operator Instructions) I would now like to turn the presentation over to your host for today's call, Ms. Cindy Wyrick, Director of Investor Relations. Please proceed.

Hello, everyone, and thank you for joining us today. With me this morning is our Chairman and CEO, Al Landon; President and Chief Banking Officer, Peter Ho; Vice Chairman and Chief Financial Officer, Kent Lucien; Vice Chairman and Chief Risk Officer, Mary Sellers. Our comments today will refer to the financial information included in the earnings announcement released this morning. Before we get started, let me remind you that some of today's conference call comments will contain some forward-looking statements. And while we believe our assumptions are reasonable, there are a variety of reasons the actual results may differ materially from those projected. And now, I'd like to turn the call over to Al Landon. Al?

Thank you, Cindy. Good morning, everyone. Thanks for joining us today. Well, as you can see from our earnings release this morning, the recession impacted the first quarter financial performance of Bank of Hawaii. In our January call, I indicated that Bank of Hawaii would focus on soundness as the primary measure of our success until impaired business models and institutions were brought right.

Consistent with that focus, during the first quarter of 2009, Bank of Hawaii strengthened our liquidity, our reserves and capital. All important measures of soundness. And we remain solidly profitable, albeit at lower levels than in recent years. While there was little customer demand for loans, other than low rate conforming residential mortgage loans, we saw tremendous deposit growth. Kent will explain the factors affecting our financial performance and Mary will comment on our credit quality measures. Kent?

Thank you, Al. Good morning. Net income for the first quarter was $36 million or $0.75 per share, compared to $39.3 million or $0.82 per share in the fourth quarter of 2008; and $57.2 million or $1.18 per share in the first quarter of 2008. This quarter's results include a $10 million pretax gain on the sale of our interest in two leveraged lease watercraft assets. Last year's first quarter included pretax gains of $25.3 million related to the redemption of Visa shares and the early buyout of an aircraft lease. This quarter, our provision for credit losses was $24.9 million and included an addition to our allowance for loan losses of $10.9 million. Last year's first quarter credit provision was $14.4 million.

As Al indicated, during the quarter we increased our capital, liquidity and reserves. Our shareholders equity increased $43.2 million to $834 million. Our tangible common equity to risk weighted assets ratio is 12.47%. Our deposits grew $921 million to $9.2 billion. And our allowance for loan losses increased to $134 million and represent 2.1% of outstanding loans. First quarter net interest income decreased $8.8 million from the fourth quarter of 2008, primarily due to lower interest rates and a higher level of liquidity.

At the end of the quarter, we held $1.2 billion in cash and cash equivalents, including $896 million in funds sold to the Federal Reserve. We also increased our investment portfolio by $484 million but we are reinvesting primarily in Treasury securities and our average duration is now 1.7 years. Average loan balances declined $91 million during the quarter. As a result of the higher liquidity, conservative reinvestment and lower loan balances, our net interest margin was 3.76% this quarter, compared to 4.43% in the fourth quarter of 2008.

Noninterest income for the first quarter was $70.4 million, up $15.9 million from the fourth quarter and $15.8 million lower than the first quarter of 2008. Excluding the previously mentioned one-time items, noninterest income was $60.3 million this quarter, compared to $60.8 million in the first quarter of 2008 and $54.5 million in the fourth quarter of 2008. The improvement over the fourth quarter was due to strong mortgage banking activity. We closed $489 million in mortgage loans this quarter and had another $211 million in the pipeline at quarter end. By comparison, we closed $181 million in the first quarter of 2008.

Noninterest expense was $87.9 million in the first quarter, up $5.2 million from the last quarter and down $5.5 million from the first quarter of last year. The increase over the fourth quarter was primarily related to the increase in FDIC fees, contingent legal reserves and seasonal salary and mortgage commission costs. The provision for credit losses this quarter was $24.9 million, compared to $18.6 million last quarter. The provision exceeded net charge-offs of $14 million by $10.9 million.

Nonperforming loans increased to $40.3 million, up from $14.9 million at year end. Included in the nonperforming category is a $17 million loan to a large national retail mall owner with properties in Hawaii. Net income to average assets was 1.32%. Return on equity was 17.86%. And our efficiency ratio was 52.5%.

Deposit growth was very strong this quarter. Period end deposit balances increased by $921 million from year end. The increase occurred in nearly every category of deposits except timed CD's. Consumer deposits were up $109 million. Commercial deposits were up $424 million. And public and other deposits were up $387 million. We believe that a portion of the public deposits are seasonal and will migrate down over the course of the year.

There are many factors accounting for the large increases in deposits, including economic uncertainty, pricing, safety and competitive factors. We are well-positioned for lending and investing opportunities going forward. Our investment securities portfolio was $3.3 billion at the end of the quarter. Our portfolio consists mainly of debt and mortgage backed securities issued by GSE's. However, during the quarter we added $560 million of Treasury securities including Treasury Bills and Treasury inflation protection securities, TIPS. Our nonagency portfolio is now only 7% of the total. Finally, our Board declared a $0.45 per share dividend last Thursday. And now, I'll turn the call over to Mary Sellers.

Thank you, Kent. As Kent shared with you, net charge-offs this quarter were $14 million, up $3.4 million on a linked quarter basis. The increase was primarily attributable to a $2.7 million increase in net charge-offs in our consumer portfolios. With home equity and small unsecured consumer loans and lines accounting for $2.2 million of the increase. Commercial net charge-offs, which included $3 million for a large national mall owner, were up $748,000. Nonperforming assets totaled $40.3 million at the end of the quarter, up $25.4 million from the fourth quarter of 2008. Commercial nonaccrual loans totaled $27.8 million, up given the $17 million related to the large national mall owner. Consuming nonaccruals totaled $12.2 million, a $6.7 million increase over the preceding quarter. This increase reflected predictable consumer behavior.

Loans past-due more than 90 days and still accruing interest totaled $8.6 million, down $5.6 million on a linked quarter basis. The decrease was due to the successful exit of two commercial mortgage loans with weak performance fundamentals. The increases in credit losses, nonperforming assets and past dues in our portfolio, are reflective of the trend in national and local economic fundamentals. Hawaii unemployment rates, which have remained below the US average, have moved up, reaching 7.1% at the end of March, up from 5.1% in December 2008.

Average residential real estate sales prices have continued a slow decline, with the median single familiar home selling price on Oahu down 8.1% year over year. There is very little sales activity in higher priced homes, so the price decline may be impacted by the mix. At the end of the quarter, residential mortgage loan outstandings totaled $2.4 billion and home equity outstandings totaled $1 billion. Only $25.8 million of these loans are secured by homes outside of our market.

The days delinquencies and losses in our residential mortgage portfolio have been driven by land loans, primarily on the neighbor Islands with nonresident owners and second home or investor loans primarily on Kauai and the Big Island with nonresident owners. At the end of the quarter, our land loan portfolio totaled $51.5 million, with $43.3 million located on the neighbor Islands, with 87% of this related to nonresident owners. Property value declines from the neighbor Islands have been more pronounced than on Oahu. $8.4 million of these land loans are considered higher risk. Second home and investor residential mortgage loans on Kauai and the Big Island totaled $205 million at the end of the quarter. $5 million or 2.4% is considered higher risk, with $4 million of this related to nonresident owners. These loans were originated in or after 2006 and have monitoring credit scores less than 660 and loan to value ratios greater than 70% based on origination values.

In our home equity portfolio, $19.9 million or 1% is considered higher risk. These lines were also originated in or after 2006, have monitoring credit scores less than 660 and combined loan to values greater than 80% based upon origination values. Delinquencies and losses in the home equity portfolio have resulted when customers have experienced job loss, income curtailment or other life events, coupled with declines in equity, driven off reductions in property value.

In keeping with our focus on soundness, we increased our reserve for loan and leases by $10.9 million to $134 million or 2.1% of total loans. The allowance continues to consider our legacy leverage lease exposure, which presents greater risk given our equity position in these assets is structurally subordinated to the debt. As economic weakness continues, our leasing assets naturally incurred increased risk. We continue to look for opportunities to reduce our exposure in these assets. And this quarter, we were able to successfully exit one leverage lease where the debt had been repaid and there was demand for the assets. I'll now turn the call back to Al.

Thanks, Mary. Thanks, Kent. Recently, some observers here in Hawaii began telling us that our economy is approaching a floor, as economic indicators are now slowing at a decelerating rate. Some observers outside Hawaii are indicating that they can see early but encouraging signs of economic strengthening. Even if the suggestion of an end to the technical recession before 2010 is accurate, important fundamentals, including employment, (Inaudible) revenues, tax collections are likely to show continued weakness. We believe the impact of the recession economy and related government intervention will likely continue into 2010. Accordingly, our plan is to continue to manage for a weakened economy. We remain focused on controlling risk and expense. And we're using this slow period to strengthen our organization, infrastructure and brand.

Soundness, in our view, remains a primary driver of shareholder value. As a result of the recession and government intervention, it remains impractical to provide performance targets for Bank of Hawaii. However, I should note that we expect deposit insurance cost increases will have an impact on our near term results. Our decision not to participate in the government's Capital Purchase Program was the right decision for Bank of Hawaii. We have indicated Bank of Hawaii has strength in liquidity, reserves and capital, with what we think are reasonable and hopefully temporary reductions in financial performance. Bank of Hawaii remains safe, balanced and well prepared. Now, we'd be happy to respond to your questions.

(Operator Instructions). And your question comes from the line of Aaron Deer of Sandler O'Neill. Please proceed.

Hi, good morning everyone. First question on the national mall owner that you referenced in the press release and on the call here. Just to confirm, that's a C&I credit that's having some difficult, is that correct? And then, can you give a sense of how big the overall relationship is and if that includes some CRE as well?

No, it's strictly a C&I relationship. And as we've mentioned, there's $17 million that's on nonaccrual at this point.

So we started the quarter at $20 million, Mary. We charged off $3 million and put $17 million on nonaccrual?

Yes.

So, that's the entirety of the relationship?

Yes, it is.

And then, with respect to the margin in the quarter, I'm curious if any of the decline was attributed to any kind of interest reversals or if this was all due to the excess liquidity that's now on the balance sheet? And then, as a follow up to that, what are the thoughts on how to deploy those funds over time?

I should take that one, Aaron. At the beginning of the quarter, as you know, we had just recently decided not to take the government money that we had qualified for. And we weren't very sure where all of this was going to go with economic softening and the economy in Hawaii. So, I asked our guys to keep the durations very short. In fact, we just put it all in overnight money. We, as you may recall, have money market funds that the Bank manages here and we had some customers looking for alternatives. So, we kept deposit rates at a level that would not only reward our existing customers but attracted some new money in. As the quarter went on and we saw where this was going and sort of the success the government was enjoying in stabilizing some of the economic anxiety, we began then to invest longer than overnight. But as Kent said, in pretty conservative short duration securities.

We're continuing that here as we get into the second quarter. And so, we're going to put some of this money to work where previously, we had just held it as liquidity. We also would expect, because some of this is government and a large part of this commercial, that as we go forward through the year we'll see some drawdowns in some of those deposits. But we think that we'll get a little bit better balance in our balance sheet as we go forward. But for us, at the beginning of the year, holding that comfortable margin of liquidity was, we think, the right thing to do. I think the right thing to do, that's what I'll say. I hope that answers where you were -- what you were questioning there, Aaron.

No, that helps. It was -- certainly, the deposit growth over the past couple of quarters has obviously been very impressive. But I'm just curious to the extent that this is getting deployed, what kind of spread are you getting on the securities that this is going into versus the where it's been?

Aaron, maybe I can pitch in here. Obviously, on the Fed funds, it's a negative spread and it would be about 150 basis points or so. To the extent we're reducing the Fed funds and redeploying into the portfolio, we have been reinvesting primarily in Treasury securities. And that's comprised of two elements, Treasury bills and TIPS. The TIPS are probably neutral now in terms of spread. The bills would still have a negative spread but it would be a smaller number because, of course, the yield on a bill is higher than the Fed funds. So, I hope that answers your question.

It does. Thanks very much.

Your next question comes from the line of Brett Rabatin of Sterne Agee.

Hello everyone.

Hi, Brett.

I wanted to follow up and ask, how much of the liquidity could you deem might be short term in nature or some of it's public money that might fall out? Can you give us some kind of estimate of what you think might stay and what might go?

Well, I don't know if we -- Kent, do you want to venture anything there?

Yes. It's hard to really know for sure, Brett. But you saw the increase in deposits and there is a seasonal aspect to that, in large part, based upon property tax collections and that sort of thing. So, if a significant portion of that increase were to work its way down over the course of the year, that wouldn't be a great surprise to us.

Okay. And then, from an expense perspective, can you guys give, from an incentive particularly perspective, what the growth was in the quarter? I'm curious, just kind of what the incentive comp was? And then, if there was anything, the other line was -- obviously, excluding the two nonrecurring things was a little large too and excluding the FDIC. Can you give us kind of a feel for what those things would have bee?

Well, the legal reserves comprised about $2.5 million. I think I commented on the FDIC insurance, that change was about $1.25 million. The incentive numbers, that really relates to taxes associated with compensation that was accrued at the end of the year. It was relatively small.

Okay. And then I'm curious, I know there was some stress testing going on in the auto book and it was nice to see that the actual charge-offs were lower on the auto portfolio this quarter. I'm just curious, Mary, was there anything, anything going on in the auto book? And can you talk about the results of stress testing that portfolio?

Brett, what we are really seeing is, some of the underwriting changes that we've made over the last couple of years kicking in. We see the monitoring credit scores improving. We see our delinquency rates improving and we see our loss rates improving. And part of that is due to the increased values we're getting on the cars at auction. So, those are kind of the factors contributing to that.

Okay. And then just lastly, the fee income was a little unusual just given the insurance. Typically, you have a stronger first quarter and it was a little soft. Was there anything that we should read into that?

No, I don't think so. Peter, anything strike you?

No, they tend to bounce around by quarter. We did have a little less in the way of a marketing income from some of our insurers though but nothing really out of the ordinary.

Okay. Great. Thanks for the color.

Thanks, Brett.

And your next question comes from the line of Ken Zerbe of Morgan Stanley. Please proceed.

Thanks. Just on the deposit side, I'm going to put this sort of bluntly but if I understand stood correctly, you're basically pricing up to gather deposits and you're gaining market share in order to get that liquidity. My question is, if you're investing in TIPS, which find it's neutrally break even and the bills where you still have a negative spread, how long is this -- do you think this is going to be necessary? At what point do you reduce your deposit pricing, potentially allow consumer deposits to flow out and where it would have a more of a positive impact on your margin?

Already underway, Ken.

At what point do you think you might be back to sort of more market pricing?

I wouldn't say we're that far away from market pricing. We're watching what competitors are doing here. Keep in mind, that Hawaii is a marketplace that has typically enjoyed a little bit different loan to deposit ratio than a lot of the mainland markets. And so, what I would say is we just, rather than taking the government money, put a little bit of an insurance factor into our deposit pricing. And are just pulling that back now as we see where the economy is going.

Understood. And then just the other question?

I left you silent there. I didn't mean to do that. Did I get at what you were driving at?

I think you did. Yes, that's fine.

We, I think, for a long time, have sort of had a slow steady growth rate in deposits. And have felt that we had more growth rates on the deposit side or growth opportunities on the deposit side than we did on the asset side. And I just felt in the first quarter it was a good time to explore that and see how much. And I would say that it was more than I had anticipated. And now, we're going to adjust. But the factors become pretty interesting for us because of our money market mutual funds. And as you can appreciate with the rates on those assets and the costs associated with it, we were basically in negative territory there. So making it attractive to move some of those on balance sheet was something that was an undertaking we want to explore.

But to be clear, you moved to an on-balance sheet to get a negative spread on balance sheet.

Yes, we took a little negative spread on the balance sheet versus no margin in our asset management business, the funds management business.

Understood. Just a quick question I had, just on your NPL's -- or NPA's. The resi mortgage line, it looks like it had almost tripled sort of from $3 million last quarter to $9 million this quarter, since being fairly steady for the last year. Any particular reason for that increase?

We had a $1.9 million large mortgage loan on Oahu that's going through the foreclosure process. And we also had several land loans on the neighbor islands that contributed to that increase.

Okay. So the land loans are being included in your resi mortgage? Is that correct?

Yes.

Okay. All right. Great, thank you very much.

And your next question comes from the line of Joe Gladue of B. Riley. Please proceed.

Thanks for taking the call. I did want to follow up, I think it was Aaron's question, on the impact of nonperforming loan interest reversals on the net interest margin. Did you address that or --?

I didn't, Joe, that's right. It's nothing significant at all. I don't even have a number in mind.

Okay. All right. And along the same lines, on asset quality, 30 day to 89 day delinquencies, what was the trend in those and can you give the number out?

In our 90 day delinquencies, as we've talked about, we did see some increase but it was very moderate. It was only about $1.2 million in our residential and home equity portfolio, pretty evenly split.

How about delinquencies sooner than 90 days, Mary?

That --.

Do you have any statistics?

In our consumer portfolios they have moved. We were running about 1 basis point at the end of the year and we're now running about 1.3%.

Okay. And just one last thing, it looks like occupancy costs declined about $1.2 million from the fourth quarter to the first quarter, I was just wondering what was behind that?

Yes, the biggest change is our utilities bills have come down.

Okay. All right. And that's all I had. Thank you.

Thanks.

And your next question comes from the line of Erika Penala of Bank of America Securities. Please proceed.

Good morning.

Hi, Erika.

I was just wondering, was the large inflow in deposits mostly rate driven or are customers, both retail and commercial, still trying to differentiate between the safety and soundness of their banks?

A little bit hard to tell but we don't think too much of it was rate driven. The money market fund situation that I mentioned and then just I think the strength of Bank of Hawaii's capital ratios and our reputation here in the marketplace.

And I think you mentioned to one analyst, to Ken, that you're planning to dial down the rates that you offer during the quarter. Could you give us a sense of what you're offering for, example, a money market account today versus two months ago?

I'm going to work kind of from memory. I want to say we're in the 1.50% territory now. Kent, is that right?

Yes, right now, that would be -- it's a tiered product, so it depends on the level of the deposit but at the highest tier right now we are at 1.50%.

And I am going to say that's probably off 25, 40 basis points. Kent's coaching me, Erika. It's 40 basis points off from where we were two months ago. And that would have been probably our high point in pricing, just under 2%.

Okay. And also, does Paul Brewbaker have a forecast for Hawaii home prices for '09?

I don't recall that he specifically forecast a number there. Although Paul is, as usual, pretty optimistic about where the economy here in Hawaii is going. So, he's talking about it pretty stable, I think. And points out, rightfully, that over the last couple of quarters there hasn't been a whole lot of change in pricing for Oahu single-family residences. At least, pricing as the sales indicators would tell us.

I see. And as Mary mentioned, most of the sales activity has been going on in the middle or the lower end of the price range?

Yes, that's right, Erika. Certainly, the attraction of the mortgage rates right now, I think, provides some stimulus there, contrasted to the upper end ranges here, where that stimulus isn't present.

Thank you so much.

Your next question comes from the line of Brian Zabora of Stifel Nicolaus. Please proceed.

Good morning. Just looking at loan yields, they're down about 42 basis points from the prior quarter. You mentioned that it wasn't really interest reversal related. Are you reaching floor or do you think we could see some more repricing downward in future quarters?

I think the yields are down really reflective of just what's happening in the rate environment. We're not seeing much in the way of margin compression at all right now. In fact, if anything, it's going the other way.

Okay. And looking at loan growth or the decline in loans, was greater on an end of period basis if you can compare to averages, did demand decline further throughout the quarter or just any color on that side?

Yes, on the commercial side, loan demand or lack thereof, actually was pretty steady throughout the quarter. And on the commercial end, the single biggest factor was reduction in C&I loans. And most of that came, surprisingly, from just kind of small reductions in line amounts. That number for the quarter was just over $40 million, which was a much larger number than we're used to seeing normally.

Great. Thank you very much.

And your next question comes from the line of Bobby Bohlen of KBW. Please proceed.

Hi, thank you for taking my question. Actually, I have two quick questions. One, on the public deposits, are any of those new relationships, like new municipalities that you have relationships with, or is most of it just larger balances from the ones that you've had in the past?

I think it's mostly all larger balances. We had, I want to say, we have relationships with all of the municipalities here in Hawaii. It's a pretty small number, Bobby. We all know each other pretty well.

Okay. That's fair. And then the second question, looking at the mortgage banking income, I was wondering if you could tell us what the gross value of loans sold was this quarter and last? Starting to again look at what gain on sale and what the -- also how much more mortgages were processed this quarter versus last?

I don't know if we've got exactly sales numbers. Kent is looking for them. But the margin (inaudible) -- you've got them, Kent?

In terms of loan sales, the change from the fourth quarter was up $290 million.

And what was the total amount?

The total loan sales, nearly $400 million.

$400 million. Okay, so it was a huge increase. Okay. That was it for my questions. Thank you very much.

Thanks, Bobby.

And your next question comes from the line of Jason Ren of Morningstar Incorporated. Please proceed.

Hi. Thanks for taking my call. It looks like the economies of the outer islands have deteriorated far worse than Oahu, both in terms of delinquency rates and unemployment. I was just wondering, in terms of your loan mix, residential and home equity loans, what's the ratio of Oahu loans versus outer islands?

Jason, we like to think that the Oahu economy has held up so much better than the other Islands. Mary, you've got the answer for that?

I sure do but I'm going to give it to you in a reverse way. Only 16% of our mortgages are on the neighbor islands in terms of second home and investor, which is where we've seen the most problems. In terms of total second home mortgage -- I'm sorry, owner occupant mortgages on the neighbor islands, that's about $260 million. And in terms of our home equity portfolio, we have about $279 million on the neighbor islands and just a little bit in second home investor at $24 million.

Great. Thank you very much.

And your next question comes from the line of Steve Covington of Stieven Capital. Please proceed.

Good afternoon. Actually, this is Joe Stieven. First of all, good quarter. On the deposit pricing side, a couple of my questions were already answered. But when you start to take your rates down, do you expect that you'll see some, let's say, drawdown in the deposits? Or do you think most of these new customers who came in recently will end up staying with you guys and hopefully you will cross-sell them through some other products? Thanks.

I think it's going to be a mix. We've got a large increase from existing customers. And we wanted to make sure we were providing them a reasonable value in our pricing. And then, we certainly did attract some new customers and we're going to do our best to retain them. An important part of this will be what demands for funds are in other institutions and what our competitors do here, as well as what happens off island. As the money market situation works itself out a little bit or not. And depending on what happens with other asset yields. So, we're going to have to just go slowly here and see what happens as the environment unfolds for us. Peter, do you want to add anything to that?

I would add that it really is, I think, dependent on the segment that we're looking at. On the consumer side, we really have not priced up in any of our categories. And yet, you'll see in the tables that we had very nice growth there for the quarter and continue to see pretty strong growth to date. On the commercial side, there, we had a good amount of money market savings growth. And I would anticipate that as we bring rates down, we do have the opportunity to lose some balances there. And then, on to the government side, probably 50% of that amount is in the savings category. And there again, as we bring rates down, we probably will see some deterioration in volume levels. So it's really -- I don't think that the deposit growth is purely rate driven and we will see some deterioration though as we bring rates down. It's really kind of dependent on the categories that we're looking at or talking about.

Okay. Thank you.

(Operator Instructions). And your next question is a follow-up question from the line of Aaron Deer of Sandler O'Neill. Please proceed.

Hi, guys. Just following up on Bobby's question with respect to the mortgage banking business. Was there much in the way of an MSR impairment this quarter?

No, as you recall, we did have an impairment in the fourth quarter of 2008 and we did not have that in this period.

Okay. And then, you guys are currently in the midst of your annual regulatory exam. Is that right?

It feels, Aaron, like examination process is going on all the time. We really haven't given any details in terms of when we're doing exams or, within that, what phase of the examination is going on.

Okay. Fair enough. Thanks very much, guys.

We feel we're in pretty good shape with our regulators, so I don't want to leave that hanging like there's a mystery there.

No, I would imagine as much, given your strength relative to most other banks right now. I was just curious to see where things stood.

And if they're listening in on the call, we appreciate your observations and help. As I've said, publicly many times, that we've got nothing but good advice from our regulators.

(Operator Instructions). And I am showing that there are no further questions at this time.

I'd like to thank everyone for joining us today and for your interest in the Bank of Hawaii. As always, if you have additional questions or need further clarification on any of the topics we've discussed today, please feel free to contact me at (808) 694-8430. Have a great day, everyone.

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Have a great day.