Enterprise Financial Services Corp (EFSC) 2018 Q3 法說會逐字稿

Good day, and welcome to the EFSC earnings conference call.

Today's conference is being recorded.

At this time, I would like to turn the conference over to Mr. Jim Lally, President and CEO.

You may begin, sir.

Thanks, Chantal, and thank you all very much for joining us this afternoon for our third quarter earnings call.

Joining me on the call this afternoon is Scott Goodman, President of Enterprise Bank & Trust; and Keene Turner, Chief Financial Officer of Enterprise Financial Services Corp.

Before we begin, I would like to remind everybody on the call that a copy of the release and accompanying presentation can be found on our website.

The presentation and earnings release were furnished on SEC Form 8-K yesterday.

Please refer to Slide 2 of the presentation titled Forward-Looking Statements, and our most recent 10-K and 10-Q for reasons why actual results may vary from any forward-looking statement that we make today.

If you would please turn to the Slide 3 and refer to our financials scoreboard.

We are pleased with the results of the third quarter and it represented another record earnings quarter for the company.

Compared to a year ago, our earnings per share grew 41% to $0.97 per share on a fully diluted basis with core EPS representing $0.86 of that.

This represented a 30% increase from a year ago.

These results continue to show the core earnings strength of our company powered by a solid diverse balance sheet and continued positive operating leverage.

Furthermore, they've manifested themselves into a very attractive return on assets for the quarter of 1.63% with core ROA coming in at 1.45%.

On a year-to-date basis, our core ROA of 1.7% represented a year-over-year improvement of 33 basis points.

As in the past, we continue to focus on driving growth in net interest income dollars.

This grew by 8% year-over-year in the quarter.

As you will hear from Scott, our markets, like others, are competitive, but we are faring well.

Through our relationship sales model, we were able to defend net interest margin, as you saw, this fell just 1 basis point from a year ago.

Focusing on growing the C&I portfolio, over the last several years, is paying off, as pricing of this portfolio is typically floating, allowing us to capture improved income from this portfolio as short-term interest rates continue to rise.

Although nonperformers to total loans increased 17% from a year ago, they remain very low on a relative basis at 40 basis points, and as Keene will discuss, favorable when compared to peers.

Finally, we saw our deposits grow 4% year-over-year in the quarter.

Slide 4 reminds you of where we are focused.

As we finish up 2018, and begin our planning for 2019, we remain keenly focused on achieving our loan and deposit goals for 2018 and beyond.

This will be done in the same responsible relationship way that we've been able to do for our 30-year history.

We will not play for the short term, rather, we will always focus on setting near-term goals to achieve long-term objectives.

This begins with consistently improving our sales culture and distinguishing ourselves from the crowded banking market with distinguishable messaging and flawless execution as opposed to price in term.

With that, I would now like to turn the call over to Scott Goodman, who'll provide much more color on our results for the quarter.

Thank you, Jim.

Referring to Slide #5.

Loan balances ended Q3 level with Q2 on a point-to-point basis.

Average loan balances were up in the quarter roughly 6.5% on an annualized basis.

However, timing on payoffs and line reductions resulted in a flat quarter-end balance.

Overall, I'm pleased with our continued activity and remain confident that our diversified loan origination strategy will continue to produce high single-digit growth.

Loan activity in Q3 was solid with total originations up slightly from the prior quarter and C&I volume consistent.

Fundings on construction and development lending booked in prior quarters is steadily increasing, contributing more into overall growth, while the specialized segments of life insurance premium finance and agricultural lending also had strong quarters.

Reductions to loan balances in the quarter reflect a number of issues both managed and environmental.

We continue to see payoffs on investor-owned and CRE relating to the sale of properties and refinancing of bank debt to easily accessible secondary market alternatives.

We expect this to continue to be a factor in the portfolio in the near term.

The growth mentioned on CMV real estate loans is the result of our strategy in the commercial real estate sector to attract relationships where we can add value.

Commercial real estate teams are focusing on opportunities where our expertise and flexibility adds value for the client such as construction and development, repositioning and stabilization of properties, rather than chase the market of long-term fixed rates or fall victim to weak structures in an attempt to compete with permanent market offerings.

Turning now to Slide #6.

Offsetting the steady C&I origination activity, there was roughly $37 million of payoffs and paydowns of troubled credits in the C&I portfolio.

Several of these were proactively managed out of the bank, while others we opted not to protect from alternative offers.

We believe the current competitive climate and robust appetite in the market provides an opportunity to reduce risk in our portfolio.

The focus remains on banking quality relationships that have the right credit risk and interest rate risk profile, as we know that is the path to value creation over the short and long term.

Line usage also declined in the quarter.

Following higher usage of lines by operating companies early in the year, this trend reversed itself in Q3 with paydowns exceeding advances by roughly $26 million.

The sector changes outlined are on Slide #7.

Adding to my previous comments, premium finance growth in the quarter reflects typical seasonal increases on existing policies' lendings as well as new originations.

There's also been a moderation of the payoff activity we experienced earlier in the year.

The agricultural group continues to execute on their pipeline bringing in new relationships to the bank.

Within our business units on Slide #8, specialized lending growth primarily reflects the strong quarter by life insurance premium finance and increased activity in our aircraft finance group.

Enterprise value lending, or EVL, has been relatively flat over the past year due to originations on new M&A lending being offset by the sale of platform companies within the portfolio.

Higher multiples have driven our sponsored clients to be more selective on new additions to their funds while taking the opportunity to lock in returns through sales.

As sellers roll out new funds, we are seeing new origination opportunities escalate and the pipeline for Q4 looks good in this business unit.

Recently, St.

Louis was the most heavily impacted in the quarter by the problem in credit paydowns, but did also have a good balance of commercial real estate and C&I loan origination activity that would normally drive growth absent these paydowns.

Kansas City has had a strong year, particularly, as it relates to new commercial real estate.

Originations in the quarter reflect a combination of development, refinancing and owner-occupied lending.

They were also able to move a few C&I relationships from competition in the market, as we continue to target those banks impacted by changes in management succession or ownership.

Growth in Arizona during Q3 includes a large new commercial real estate relationship, which resulted from steady and consistent calling over a number of years.

Arizona also brought in a new C&I relationship as well as expanded several existing clients who have historically been with the larger banks, but were gaining comfort with our model and capabilities.

Overall, the near-term loan pipeline looks solid with a good mix of new C&I relationships, commercial real estate in all 3 geographies, seasonal upticks in specialized lending and other capital investment needs from our existing clients.

Turning to deposits now on Slide #9.

Balances were down slightly from the prior quarter, and up 4% over the same period in prior year.

The lack of growth in this quarter relates primarily to 2 large commercial clients who moved balances out of the bank.

These were bank-motivated decisions driven by deposit pricing and relationship fit issues.

Balances have also been impacted by clients using cash to pay down lines, as previously discussed, or opting for higher-yielding alternative nonbank investments.

Competition for deposits continues to escalate in all of our markets.

We have proactively approached our top commercial depositors to discuss their cash strategies, allowing us to manage deposit relationships, to the extent possible, with the goal of averting a competitive market process on these larger balances.

Sales activity in our commercial and branch channels continues to be solid.

Year-to-date, we are opening net new accounts consistently in each quarter.

This includes an emphasis on new checking accounts and new business operating accounts, which is enabling us to maintain a steady percentage of low-cost DDA, above 25% of the total portfolio.

We also continue to develop some specialty deposit channels targeting service professionals in the legal, financial services and nonprofit communities.

New balances are building in the low 8 figure range across roughly 90 new clients year-to-date.

This is a relationship-based initiative, which targets lower cost operating and transactional accounts.

While these have a longer lead time, they tend to create more favorable diversity and are sticky over time.

Now I'd like to hand it over to Keene Turner for a review of our financial results.

Thanks, Scott.

Third quarter results, again, were solid and demonstrate our strong core and total returns.

Core growth has led to a strong 2018 thus far, and our underlying fundamentals are stable and remain in line with our high expectations.

On Slide 10, we reported $0.97 per share of total earnings with core of $0.86 per share.

The adjustments totaled $0.11 per share with noncore acquired asset contribution at $0.03 and $0.08 contributed from tax planning that afforded us an additional onetime benefit from federal tax reform this year.

Core results were again strong at $0.86 per share, on Slide 11.

Core EPS was stable, but recurring revenue expanded $0.02 linked-quarter from growth in net interest income dollars.

This improvement linked-quarter was mitigated by fee income, which experienced a BOLI debt benefit of $0.01 per share in the second.

Provision expense -- expenses and taxes were all stable in the linked-quarter.

As Jim mentioned, return on average assets was in excess of 1.6% for both the quarter and year-to-date periods, while core return was 1.45% for the third quarter with a similar level for the year-to-date period.

With a stable, consistent high-level return profile, we look to continue to grow the balance sheet prudently in the upcoming quarters, while achieving marginal gains in performance and profitability.

I'd be remiss if I didn't mention the 20% return on tangible common equity, thus far, in 2018, with core delivering in excess of 18%.

As we look to execute on all fronts in driving shareholder returns, we maintain our recent trend of increasing dividends with a $0.13 per share dividend for the fourth quarter along with modest capital management through common stock repurchases.

Let's turn to core net interest income trends on Slide 12.

From my perspective, we're executing the business model well and managing the flexibility of the balance sheet appropriately.

We continue to expand core net interest income dollars resulting from higher average earning assets and day count in the quarter.

Sequentially, this added $0.8 million to revenue for the third quarter.

Underlying the growth is core net interest margin defense at 3.74%, and we have maintained a stable margin over the last 6 quarters.

Net interest margin performance demonstrates the flexibility and high quality of the left side of the balance sheet, which we had used to assertively defend the right side.

Portfolio loan yields again increased 13 basis points to 5.12%.

As you heard from Scott, we did not have net growth.

We continue to see new loans as well as existing variable rate loans are contributing to the yield expansion.

New loans in the quarter were originated with a weighted average yield of approximately 5.25% [truly] by the variable rate C&I portion of the portfolio.

Loans remain a consistent percentage of earning assets, while the portfolio loan mix within continued a steady trend towards floating rate, now at 62%.

Adding to the positive trend, the average rate on variable loans exceeds the average fixed rate.

Our C&I relationship focus drives these favorable trends and continues to bode well for us in the current interest rate environment.

On the other side of the balance sheet, deposits and funding costs behaved as we expected them to.

We continue to deploy improving asset yields to defend and ultimately, grow deposits.

Although it's not apparent point-to-point, we have improved the composition of the fund base this year.

Third quarter average deposit balances were up.

We're encouraged by the results to begin the fourth quarter with momentum in DDA and transaction accounts.

As you've heard from Scott, we continue to grow the number of accounts, and we've begun the work to further drive consistency in deposit funding by replacing certain large-dollar deposits with numerous new smaller accounts.

This process is starting to gain traction, should help to provide some more consistent growth and ideally, improve our ability to manage and maintain funding cost more effectively as interest rates change.

We remain aggressive in targeting new core deposits and defending existing customer balances.

We believe that we are seeing some abatement in the level of repricing that has occurred.

Nonetheless, competition is robust and the cost of deposits also increased by 13 basis points in the quarter to 0.86%.

Defending core net interest margin is a priority for us as it aids the growth of net interest income dollars.

We've maintained discipline on duration, both in loans and investment securities as well as repositioning the underlying composition of loans to more variable rates.

We believe this will help us ultimately, maintain a relatively stable NIM in upcoming quarters.

Despite a flat third quarter, we expect 2018 portfolio loan growth will still be high single digits.

We also believe that long-term growth rate of 7% to 9% is appropriate, given our diversified business model and significant business development efforts.

With that, we'll turn to Slide 13, which is our credit trends.

Provision in the third quarter was essentially flat at $2.3 million.

Net charge-offs of an existing specific reserve and additional amounts on 2 credits, in particular, drove the provision trends.

Despite that levels of nonperforming loans and assets were essentially stable.

Coverage for the allowance for loans and related provisioning remains prudent, given the overall credit trends and portfolio composition.

Our asset quality comparison to peers in the lower right still remain stellar.

On Slide 14, noninterest income, I mentioned a $0.6 million decrease principally due to $0.3 million of bank-owned life insurance gains experienced during the second quarter.

Recurring fees were essentially stable with card services revenue continuing to grow, and we're poised to deliver on the high-end of our 5% to 7% guidance for fee income growth for 2018.

Additionally, we expect 2019 fee income growth to expand, given an expected increase from the expansion of our tax credit business.

Operating expenses, on Slide 15, were flat in the quarter at $29.2 million, which resulted in core efficiency of 52%.

Consistent with year-over-year and quarterly trends, we're still expecting marginal efficiency will generally range from 35% to 45% of revenue growth.

And as in past, most of the expense growth will be continued investment in personnel and other revenue drivers.

On a recurring basis, we improved operating leverage in the quarter, which is principally net interest income growth and flat expenses.

Finally, Slide 16 tracked our quarterly EPS progression.

Full year compound growth 24%, and 130% (sic) [132%] improvement in the quarterly run rate demonstrates that our focus on incremental progress has been successful.

Our strategies support continued EPS growth over the long term and returns from already high levels.

2018 results have been strong and stable and, as always, we remain poised for near- and long-term growth.

That concludes our prepared remarks.

We sincerely appreciate your interest and support of our company and for joining us today.

At this time, we'll open the line for questions.

(Operator Instructions) Our first question will come from Jeff Rulis, D.A. Davidson.

Scott, you'd mentioned, kind of, some of the headwinds on the loan growth are not headwinds but some structural and also allowing some credits to go by.

I was wondering if loan growth is also somewhat held in check due to the -- kind of, the challenges on deposit growth.

Is the funding side also a contributor to, kind of, where loan growth could be greater possibly?

Or where does that fall in the discussion on balance sheet growth?

Yes.

No, I would not say that -- the short answer to that is deposits are not impacting our ability to grow loans at this point.

I think the loan headwinds were more related to the watch credit loans that I talked about proactively, managing out or opting not to protect some of the line usage behaviors, more so than holding back, per se, due to funding issues.

I think we're confident that we can continue to fund loan growth.

That's really not the issue.

Okay.

And Keene, I just wanted to clarify that the line item through the -- that there was an excise tax expense through the noninterest expense.

Is that in -- was that in other?

That's correct.

Yes, when you look at the 2...

It was about $700,000?

Correct.

So the -- just real quickly, there is a -- the federal income tax benefit through the provision line item was about $2.7 million and then you had it offset by that excise tax.

So net-net about $2 million, which is driving the $0.08 of what we call tax adjustment on Slide 10.

Got it.

And then we should expect the tax rate to resume around '18 next quarter and maybe for '19?

Yes.

So for next quarter, I think your number is right in the middle of our guidance.

And then next year 18% to 20%, just sort of given a step-up in profitability, if we continue to grow the balance sheet and maintain returns.

Our next question will come from Andrew Liesch, Sandler O'Neill.

Just some clarification on the increased fee income outlook for next years on the tax credit business.

I would imagine that still follows the same seasonal pattern as historically.

Is that correct?

Yes.

So let's say the underlying $2 million to $2.5 million should generally follow that trend, and then it may be -- it's still going to be fairly lumpy, it's not necessarily going to be a consistent business because it is still on the brokerage side.

But we do expect that absolute level to trend upwards somewhere in the 20% to 25% growth range in that line item.

What's driving that, just more allocation, are you bidding on more, is there more available to bid on?

Just kind of curious what's behind that.

Yes, so we've been able to -- that's been a very stable business for us for a number of years, and we've worked very hard to put ourselves in the position with our expanded capital base and financial strength to be able to continue to participate in expanding there.

And really it's just right now a function of size and some opportunities that we have in the space.

So we're excited about it.

It should be -- continue to expand from here on out.

We're sort of jumping off here with the increase at 20% to 25% for next year, and we'll continue to guide as we see progress and traction and give you more clarity in the -- maybe the out years and on timing.

But we feel very good on an annual basis about that level of growth.

(Operator Instructions) Our next question will come from Brian Martin, FIG Partners.

Just a follow-up to that last one on the expenses -- or on the new business pickup from that tax credits.

Is there any expense associated with that?

Or is that just a net number when you're talking about that, Keene, as far as the pickup, the 20% to 25%?

Yes.

It's fairly modest, Brian.

So it's essentially included in what we talked about in terms of the marginal efficiency.

So that's a -- if you keep in mind, that's one of our specialty businesses, the leverage point on those is pretty efficient where they're run in fairly centralized small groups.

So that's a modest expansion there and we'll articulate those components as they come through.

Okay.

And then maybe just a couple others.

On the -- the credits that you, kind of, proactively moved out, or I guess, is there -- are there more of those, or is there anything, I guess, that concerns you?

I guess, was there a trend in any of those credits, or is there any more of them that you think you need to clean up, as you, kind of, look toward year-end here?

Or is it -- you, kind of, took care of what you had out there?

Yes, Brian, this is Scott.

I would just say, I think overall we feel good about the quality of the portfolio, in general I think.

We just feel like the markets are really robust.

I mean, we compete in them every day, and I think we wanted to take advantage of those to the extent that this competition that wants to relieve us as a problem, we're going to allow them to do that.

I don't -- I'm not seeing a huge chunk of that necessarily.

There might be a couple more in the fourth quarter.

But I think it was a larger group than we would typically see and that's why we wanted to highlight it in this quarter.

Okay.

And maybe just for you Scott, the loans that are tied to, I guess -- the variable rate loans you guys have, can you just remind us what -- are those tied to prime, are they LIBOR, is that a mix, or is it, kind of, daily?

Just any color you can give on those variable-rate loans.

Brian, it's Keene.

They're principally 30-day LIBOR.

30-day LIBOR.

Okay.

So I mean, you should get -- so you probably didn't get all the benefit in third quarter, then you'd probably pick up a bit more in fourth quarter, is how to think about it?

Well, I think we got a very nice benefit in the third quarter that was consistent with the increase, and I think going forward obviously, there was another increase.

So that will continue to play through.

So I think what we said in the past is 25 bps to 10 to 15 basis points of overall yield expansion.

That depends on what classes in which we're originating and some of the underlying factors.

But that's been the, call it, 3- or 4-quarter trend that we've seen.

Yes, okay.

All right.

I had just heard some other commentary from other banks on the LIBOR situation this quarter.

But -- and then just the last one was, just on capital management, obviously, you picked the dividend up.

I think last quarter you talked a little bit about M&A opportunities, I guess, can you provide any update on, kind of, just repurchases or, kind of, M&A, the landscape in M&A today with, kind of, some of the changing markets we're seeing here?

Yes, so obviously, I'll just remind you the priority is our continued organic growth.

I think the high single-digit loan growth rate that we've set out with the returns level that we have affords us additional capital management.

So we sequentially increased the dividend and obviously, that's -- we're still fairly all in the payout level there.

So that's an opportunity for us as we move forward that we evaluate each quarter.

And then additionally, we are opportunistic with share repurchases, which we have quick and -- real quick recollection, over 1 million shares available under that plan and plenty of liquidity to execute there, given repurchase conditions.

So those are the things that, I would say, are more within our control.

And then I'll let Jim talk a little bit more about M&A, which is a priority for us, but a little bit more difficult to control.

Yes, so Brian, this is -- we talked about this each of the quarters.

We've had plenty of discussions with other companies and with investment bankers and very active in that space.

And the pride there obviously would be the compliments, what we're doing well, which we need -- we're looking for really good deposit franchises.

And you know well that those are few and far between.

But we spend a lot of time on it and spending a good deal of efforts and feel good about the progress we're making.

Okay.

So I guess the opportunities are still in front of you guys.

It's just, I guess given with the finish line, is how to think about it?

Agreed.

Our next question will come from Michael Perito, KBW.

Actually, most of my questions have been answered already, but I do have a couple.

On the -- Scott, you mentioned the legal and nonprofit deposit opportunity and issues there.

I was wondering -- yes, 2 -- kind of, 2-part question here.

I guess, one, can you, kind of, give us a sense of the scope of that opportunity, as you guys see it today?

And then secondly, are we -- should we be thinking about this as a pure net growth opportunity or are there still opportunities to, kind of, improve the deposit base and swap out some maybe higher-cost funding or more volatile funding for these types of deposits, as you win these relationships over the longer sales cycle?

Yes.

Great question.

I do think -- we do think that this -- these strategies can't be broader.

I think they're really related to approaching these firms and these professionals for balances that are low-cost where they need easy access.

They need access to an expert within our company that understands whether it's the law firm or the association in the not-for-profit case or in the wealth management firm, someone that understands that business.

And that we have them enabled to do a transaction easily.

So it's something that could -- that right now is in footprint, but that ultimately could expand outside of that footprint.

I think -- I feel good about the number of new relationships, I think I highlighted that, over 40 in the association niche, close to 50 in the legal niche.

And those are all relationships that once we get accounts going, they recur, they open additional accounts.

So I think it can have substantial traction over time and it's low-cost and diversified.

I think that's the profile we like.

And then, Mike, I'd like to handle your portion of the question on the composition of funding.

We like to walk before we can run.

So number one, we're first and foremost looking at that as an opportunity to improve the level of just deposit funding overall, and the -- a decrease in the amount of wholesale funding.

So we're hopeful that some of that starts to show through in the upcoming quarters and that's the immediate opportunity.

We -- our expectation for stable net interest margin does not contemplate us materially improving the composition of the funding base, and it really just contemplates more of the same.

So that is an opportunity for us as we move forward.

But we're still fairly early in getting these niches and some of the deeper deposit growth and number of accounts off the ground here, to drive that.

So we'll be more intentional about the way we guide as we move forward.

But I think knowing our posture and knowing our -- the way we guide, I think we're more inclined to guide the status low and then come back and revise as we see progress there.

Helpful color.

And then just one last one to pry a little bit more about the capital deployment that you can control.

I mean, any kind of more specific comments maybe about share repurchases here.

I mean, it seems like obviously, you bought back the $47,053, obviously the shares have come in a bit since then.

I mean, similarly, looking at all of your ratios, there's plenty of capital.

I guess, any reason why we shouldn't be thinking about you guys being a bit more active near term with the share repurchases more specifically?

No.

Just sort of given blackout and other things there, there may be some restrictions and limitations there.

But no, certainly -- we think the current levels are attractive.

Okay.

And that was just to confirm, I heard that right.

You said there was just about 1 million shares left on the repurchase authorization.

Yes.

I think there's more than that, I don't have the exact numbers at my fingertips.

Our next question will come from Nathan Race, Piper Jaffray.

Just have one last question on loan pricing.

Obviously, we've seen base rates move higher over the last several quarters here.

So just curious if you're seeing any spread erosion at this point from competitive aspects, or if you maybe just provide some color on what the weighted average rate on new loans yield -- on new loans in the quarter was.

And I know that can change around from quarter to quarter depending on where the production is coming from, but any color on what you guys are seeing from a loan pricing standpoint would be appreciated.

Yes, so as I had indicated, new originations are -- weighted average right around 5.25%.

We're actually seeing most of that --- most of the increase driven by the variable rate C&I origination.

Scott and Jim can comment on this, but our lower yields are certainly in the real estate and other more competitive sectors that you think and are really on some of the shorter-term fixed rate stuff that we would be putting on.

But again, I would just point out that we're still 52% variable and moving at about a 2% plus more variable every quarter.

So I think we're staying very disciplined there.

I think there's certainly a lot of competitive pricing that's out there, and we certainly could race to the bottom.

But we want to get paid through the value proposition that we have and acquire full relationships.

So I don't know, if Scott would like to add anything to that.

I think you said it well, Keene.

Okay.

Got it.

And just changing gears a little bit and thinking about credit quality.

Obviously, MPAs picked up a little bit in the quarter, but obviously off a fairly low base.

So just kind of curious what -- how we should think about maybe the trajectory of charge-offs here.

I know it's tough to predict but just any color in terms of how we can maybe expect the reserves to build as you guys kind of move back towards that high single-digit loan growth target?

Yes.

I mean, I think what you see from us is that over a longer-term trend, we've been providing on a relatively high level for loan growth.

So that's been somewhere between 1 and 115 basis points on new originations.

We think that has driven some high-quality loans.

And then from a net charge-off perspective, I think we -- if you kind of look at what we've done maybe 1 in every 5 quarters, we've got what we consider to be elevated charge-offs, and that's 25 basis points or something like that, and then we abate to a smaller amount.

So given that none of the issues that we see are pervasive, I think we're comfortable with, sort of, the most recent 5- or 6-quarter history pervading.

And we had no real change in our posture because that credit quality is outstanding, but we're going to continue to provide prudently -- despite the fact that much of the loss history would suggest that loans we're putting on are a much lower loss rate than we're providing.

Speakers, at this time, we have no further questions in the queue.

Okay, great.

Well, I want to thank, everybody, for joining us this afternoon, and we look forward to visiting with you again next quarter.

Thank you.

Thank you very much.

Ladies and gentlemen, at this time, this now concludes today's conference.

You may disconnect your phone lines, and have a great rest of the week.

Thank you.