National Bank Holdings Corp (NBHC) 2015 Q3 法說會逐字稿

Good morning, everyone. And welcome to the National Bank Holdings Corporation 2015 third-quarter earnings call. My name is Chris, and I will be your conference operator for today.

(Operator Instructions)

This conference is being recorded for replay purposes. I would like to remind you that this conference call will contain forward-looking statements. Including statements regarding the Company's loans and loan growth, deposits, strategic capital, potential income streams, gross margins, taxes and non-interest expense. Actual results could different materially from those discussed today.

These forward-looking statements are subject to risks, uncertainties and other factors. Which are disclosed in more details in the Company's most recent filings with the US Securities and Exchange Commission. These statements speak only as of the date of this call, and National Bank Holdings Corporation undertakes no obligation to update or revise these statements.

It is now my pleasure to turn the call over to and introduce National Bank Holdings Corporation's Chairman, President and CEO, Mr. Tim Laney.

Thanks, Chris. Good morning and thank you for joining National Bank Holding's third-quarter earnings call. I have with me our Chief Financial Officer, Brian Lilly; and Rick Newfield, our Chief Risk Management Officer. During the call, we will cover our performance in the third quarter. And update you on our capital management actions.

Turning to the quarter, we continue to make progress organically growing high-quality loans and low-cost client deposits. Our strategic loan portfolio grew $208 million during the quarter, or almost 38% annualized. Loan originations totaled $254 million, which is a 24.8% increase over the same quarter last year.

Our transaction deposits grew 7.7% annualized, while during the same period, our cost of deposits lowered an additional 2 basis points. We made nice progress on core operating fee income, but it remains an opportunity for stronger growth. Finally, we continued to focus on chipping away at expenses with a $1.7 million decrease in operating expenses from the prior quarter.

And on that note, I will turn the call over to Rick Newfield to provide a detailed review of our Bank's safety and soundness. Rick.

Thank you, Tim. And good morning.

First, I will provide a summary of loan origination activity for the third quarter. Second, I will discuss our credit quality as well as provide an update regarding our limited exposure to oil and gas loans. Third, I will discuss our success this past quarter in reducing non-strategic loans and the continuing positive economic benefits generated through those efforts.

Our originated loan portfolio totaled $2.1 billion at September 30, 2015. An increase of $428 million over December 31, 2014 or a 35% annualized growth rate on a year-to-date basis. We have delivered these results while remaining disciplined in our underwriting and credit structuring.

During the quarter, we continued to drive growth with a granular mix of consumer and commercial loan types. Combined, commercial, industrial, agriculture, and owner-occupied commercial real estate make up 60% of our originated portfolio. Residential mortgage loans make up 25.5%, non or occupied commercial real estate at 13%, and other consumer loans at 1.5%.

As Tim said for the quarter, we originated $254 million in new loans. Maintaining an originations base consistent with our goal of $1 billion-plus per year. Commercial originations of $211 million continue to be granular, averaging approximately $1.3 million in fundings per relationship. Consumer originations were $43 million. Principally driven by residential, that averaged $120,000 per loan with an average LTV of 50%, and an average FICO 764. These metrics are consistent with our results over the last three years.

Turning to credit quality, I am pleased with the overall performance of our [non-three] 1030 loans. Which totaled $2.3 billion at September 30. Net charge-offs in this portfolio were just $124,000 for the quarter. Or 2 basis points on an annualized basis. Year-to-date, net charge-offs total just $794,000. Or just 5 basis points, on an annualized basis.

Total past-due loans 30 days and greater were nominal. At only 8 basis points, and 90 day past dues remain immaterial. Nonperforming loans comprised of non-accruals and restructured loans on nonaccrual did increase during the quarter, as three loans were moved to nonaccrual. Partially offset by one commercial loan that was moved back to accrual during the quarter. And it should be noted that re-accrued loan suffered no loss of principal or interest.

One of the loans that moved to nonaccrual is within the energy services sector, one is agriculture, and the other general industrial. Our philosophy remains to identify potential credit issues early, and then move quickly to protect the bank. We did take specific reserves on two of these loan relationships.

However, these credits have asset base structures, and are subject to continuous and rigorous monitoring. It is important to note that outside the energy services subsector, nonaccrual loans were at 70 basis points as of September 30.

One year into a bear market in oil and gas our overall energy portfolio has held up satisfactorily. Our production in midstream clients, which make up 79% of our current energy portfolio are performing well with no nonaccruals. Within the services subsector, which totaled $31.5 million in funded loans as of September 30 down from $44 million at year end 2014. We do have two nonaccrual loans totalling $12.1 million.

We continue to work aggressively with these clients to manage through the current market conditions, obtaining capital infusions and maintaining strict asset-based lending controls. As a whole, energy sector loans were just $147 million as of September 30, 2015. A decrease of 16% from December 31, 2014. And represent only 5.8% of total loans and 3.4% of earning assets.

As a reminder, we approached the energy sector recognizing that price volatility is part of the industry. Both our energy banking team, with experienced energy bankers, and experienced energy credit underwriters including a petroleum geologist. Outside of the energy services subsector, our non-accruals and overall credit quality remain very strong.

Our resolution of acquired problem asset continues to be great story. During the quarter reductions in non strategic loans were $13.1 million or 33.1% annualized rate. We ended the quarter with just $143 million in non strategic loans.

OREO balances were reduced $19 million. You may recall that just over a year ago, non strategic loans were $321 million and OREO balances $66 million.

Furthermore, pipeline for both problem loan dispositions and OREO sales remain strong for the coming quarters. It is important to note that non strategic balances are now only 5.6% of total loans. Our three 1030 loan pools are composed entirely of loans acquired through our three failed bank purchases.

Our quarterly re-measurement of the expected cash flows from these loans resulted in $800,000 in accretable yield pickup. The cumulative life to date is accretable yield pickup is now $225 million against impairments of only $24 million resulting in a net economic gain of $201 million. This demonstrates the effectiveness of our problem loan workout efforts.

To summarize, we have maintained solid organic loan growth while adhering to our disciplined underwriting standards. We're committed to building and maintaining a loan portfolio with outstanding credit quality. And we will not compromise our standards for short-term loan growth. I will now turn the call over to Brian Lilly, Chief Financial Officer.

Thank you, Rick and good morning everyone. As Tim and Rick have shared, we're pleased with the third-quarter results as we continue to add to our organic growth, manage non strategic assets for increase in returns and managed expenses lower.

We're generally consistent with our financial guidance, and are delivering the results that we believe leads to our profitability targets. In my comments that follow I will touch on the highlights of the quarter, and provide an update to our guidance. Generally speaking, we are staying consistent with our prior guidance.

Before going too far, I should point out that inherent within our 2015 guidance, are economic assumptions consistent with the current outlook of leading economists. Although we have not included an interest rate increase for the remainder of 2015, given our asset-sensitive position, we would benefit from an increase in interest rates. But we felt that interest rate increase was more uncertain.

Our reported earnings per share was $0.05, and after the usual adjustments, primarily $0.11 non-cash charge for the FDIC indemnification asset amortization, the adjusted earnings per share was $0.17. On a year-to-date basis, the adjusted earnings per share was $0.50, representing an increase from $0.47 last year. The adjusted year-to-date return on tangible assets was 56 basis points.

We are very pleased with the progress that we have made growing the loan portfolio. Our originations of $254 million, and the addition of Pine River, more than offset the decreases in non strategic loans, resulting in total loan growth of $195 million. Excluding the Pine River loan outstandings, total loans grew at an annualized rate of 22.4%.

To answer a question that we are usually asked, the weighted new loan yield for the quarter was 3.7% with 70% variable and was generally consistent over the last several quarters. Given the strength of our pipelines, and what we can predict in the non strategic loan pay downs, we are expecting to end the year in the upper half of our prior full-year loan growth guidance of 15% to 25%. And we are just $270 million away from our annual new fundings goal of $1 billion.

In terms of deposits, we continued to experience nice growth in transaction deposits, and the key relationship category of checking account balances. The higher priced timed deposits also continued to re-price, resulting in a net decrease in this category. Pine River added approximately $88 million to the quarterly average of total deposit balances.

We also received a $60 million pay down in a client repurchase balances, from a client that was parking funds. You might recall that we mentioned in the first quarter, the receipt of $180 million client repurchase agreement. And that we expected those funds to decrease over a relatively short period of time. All totaled, our deposit growth is remaining consistent with our prior guidance.

We typically experience small seasonal decreases in the fourth quarter but we expect to be consistent with our prior guidance of year-over-year mid single-digit growth for transaction deposits, and flat total deposit growth. Net interest income totaled $38.7 million, and the fully taxable equivalent net interest margin was 3.54%.

Both of these were virtually flat to the prior quarter, and we're in the middle of our quarterly guidance of $38 million to $40 million for the net interest income. And $350 million to $360 million for the margin. For both of these metrics, we achieved stability in the quarterly comparison. As the strong loan growth offset the decreasing interest income from the lower balances of the high-yielding purchased loans. And the run off of the investment portfolio.

In terms of guidance, we are reiterating our prior guidance for the fourth quarter. With the usual qualifier that the pace of non strategic loan payoffs can have an outsized influence on the results. Rick addressed the credit quality, and I would only add that we expect the credit quality to remain strong in 2015 with net charge-offs remaining low. It is worth noting, that even if we took a charge off on a few credits that carry specific reserves we would expect that the full-year net charge-offs would still remain within our prior guidance of 10 to 15 basis points.

Turning to non-interest income, the quarter totaled $3.8 million and included a negative FDIC related of $5.8 million. And a nice $1 million bargain purchase gain on the closing of Pine River acquisition. We also had good growth in service charges, bank card fees and gain on sale of mortgages, as the third quarter client activity picked up.

And finally, we had an $800,000 linked quarter decrease in other non-interest income. As the fair value hedges mark to mark adjustment on the fixed-rate loans, moved lower with a quarter end decrease in the intermediate-term interest rates. We are delivering on our prior guidance of full-year mid-single-digit banking fee growth, and expect this to continue.

The FDIC loss-share related income accounts totaled a negative $5.8 million. And was driven entirely by the FDIC indemnification asset amortization. We are updating our full-year guidance to a net negative $23 million to $26 million. This does imply a net negative $5 million in the fourth quarter.

We were very pleased to deliver total expenses of $38.7 million, which was better than our third quarter target. The fourth quarter will include the bulk of the one-time core system conversion expenses. In addition to the one-time expenses for the Pine River acquisition.

In total, we are guiding fourth-quarter total expenses in the range of $41 million to $42 million. This range includes approximately $3 million to $3.5 million in one-time expenses. Recall that our cash payback on the core system conversion one-time expenses is less than one year. And that we expect to realize savings of $4 million to $5 million annually.

Capital ratios remain strong. Tangible book value per share ended the quarter at $18.31, decreasing $0.21 from the end of the second quarter. Driven by the success of our $100 million tender. Recall that this does not include the value of the excess accretable yield of $1.11 per share.

Resulting in a tangible book value of $19.42. As of quarter end we had $6.1 million available for share repurchases under an open authorization. Using a 9% leverage ratio, we have approximately $100 million in excess capital to support organic growth, mergers and acquisitions, and share buybacks.

Let me close by sharing that we continue to work with the FDIC process to an early exit of the loss sharing agreements. We are cautiously optimistic that we can get something done this quarter. It would be nice to eliminate all the FDIC accounting noise in our results.

It would not be appropriate to speculate on a possible financial impact at this time, but we will be very clear in any future announcements. Tim, that concludes my comments.

Thank you, Brian. Thanks for covering a lot of ground so concisely. I also want to publicly thank our risk management team for their intense focus on our bank safety and soundness. Every associate in our Company plays a role in managing risk, but it specifically want to thank Rick and his team for their intense focus on maintaining such solid credit quality.

Now, turning our attention to capital management. Including the $100 million tender we executed during the quarter, since early 2013 we have now repurchased 42.3% of our outstanding shares at a weighted average price of $19.88. We feel very good about this. We continue to maintain optionality as it pertains to use of our excess capital. Including attractive acquisitions, share buybacks, and dividends.

On that note, Chris will now open up the lines for questions.

(Operator Instructions)

Paul Miller, FBR.

This is actual Thomas on behalf of Paul. One question on the energy loans, Brian. I think, you mentioned pay downs or reduced borrowings of about $7 million in the quarter. And sort of entrance into a new relationship, which I guess if I back into the number it's about a $10 million loan, assuming the growth at the end of the quarter. Is that typical of the size loans you're making in that portfolio? And what struck you about that company as attractive in this energy environment?

This is Rick, I will answer that question. I have said this before, in earnings calls. Given our approach to underwriting, and given the current environment, when we see a company that can underwrite in this kind of price environment that has the capital, the consistent cash flows and so on. It's a terrific opportunity for us. And given we have maintained very low concentrations of energy again, we would expect to selectively pick up those opportunities.

Great. And then on the $1 billion of originations, obviously you guys are kind of humming along right at that pace. Is there -- where are you guys think the most opportunity? I'm assuming that most of that is still coming on the commercial side?

It is. Keep in mind, one thing we are proud of, is we probably don't talk about it enough. Is that we have established self-imposed house limits on every industry in sub sectors. We don't know where the next problem is going to be. But we are not going to overexpose ourselves in any category. So, what is nice is we are seeing our banking teams really deliver across industry. We don't have an over concentration in [CRE], and over concentration in energy, Ag or anything else. It has been built on the back of strong commercial business. But we are actually seeing a nice little uptick in our consumer business. And the business that we are most -- I should say most excited about, but I should say the business that we are giving a lot more attention is small business. We really think we are just seeing the tip of the iceberg in terms of what we are going to be -- Able to do with small business in our markets.

That is great color. My last question had to do with the FDIC agreement, but Brian already address that. I will hop out. Thanks.

Chris McGratty, KBW.

Tim, I wanted to talk a little bit of a big picture question. You talk about the adjustments to the loss share that you have talked about in the past. But [you are away] with that is call it, 50 or 55 basis points. And obviously the growth seems pretty good. Can you help bridge the gap between that and your 100 basis point target? I guess from [RC] it seems like you wanted to get through methodically the buyback, see the stack approve and pull that lever. But you still got close to 100 branches. I'm trying to figure out how you get to 100 basis points in this rate environment?

Chris, it is a fair question. I would have told you a year ago that we were completely confident that we could get there within a fairly tight timeframe, on the organic path that we are on. But as a practical matter, as we do see [nim] compression in the markets, we look at some potential extension to be very clear. It is not a matter of if we will get to a 1% ROA, it is really a question of when and our focus on when continues to be sooner versus later.

So, what you will see from us as we roll into 2017, and we are not ready to talk about this in detail, I think more of it will become apparent over even the coming quarter. And certainly, as we roll into the first quarter, that we feel very good about our revenue generation momentum. We have also got the opportunity to sharpen our focus on expense management. To do it the right way and, the one thing I can assure you we are not going to do, is sacrifice credit quality in order to take more volume to get there faster. That is how I would take a stab at answering your question. Let me ask Brian and Rick if there is anything they would add.

Look, Chris, I would just add that as we go forward here, we are in the middle of our 2016 planning. And as usual, we will give some pretty specific guidance here, in the January call for 2016. But to Tim's point, I think you heard it, it is managing all of the levers. It is not a question of if, it is when.

We do see opportunity in our banking centers, we have been running those now for two to three years. We have goals on them. Great progress in a number of areas. And other areas that we have opportunities for. We look at all of our support areas and the revenue reducing areas and maximizing those. So it is pulling all of the levers to drive towards that 1%. We know that we will [deliver] the share price and the returns that we want.

That is helpful. Just to push a little bit, you've got flexibly with your loan to deposit. I don't think deposit loss is a big consideration for the street. But are we at least -- Am I in the ballpark of the expenses have to be a piece of this equation to get close? I don't think revenues can do it.

That is fair.

Okay.

We also have that $100 million in excess capital, Chris. That a little opportunistic -- We have options. We can just buy into shares. We have seen opportunities come our way. And so it is important for us to keep that dry powder. And I think you know us well not that we're not going to do something dumb with it. We can see something that accelerates our path to that 1% using that excess capital, that would be beneficial to all of us.

And as we recently announced with the termination of the OCC operating agreement, we have the ability to free that capital up to the holding company. There is no question around that issue. There should also be no questions around our safety and soundness in any regard. Obviously, that operating agreement would not have been terminated if there were issues.

So, we -- Brian touched on this, we are actually back at a point where we are looking at a number of very interesting opportunities. We remain convicted around only doing something if it makes sense for all of us as investors. We have talked about that three to five-year earn back. We tend to ruling closer to three these days than five. Which might shock some people that we would throw that out there.

But we also realize that it has got to be the kind of target that allows us to use predominantly cash. Because we are not quite at a point where the currency in our stock works for us. But, Chris, I think that you are hitting on all of the right points.

It's a combination of organic revenue, looking at the ability to intelligently add new revenue sources, certainly looking at rationalizing our distribution system. But it is broader than that. We have just and we will speak to this in more detail in the first quarter, but we have just gone through a conversion of systems that will save us $5 million to $6 million a year. We think we're settling in at what, as always should be viewed as more of a community bank. As everyone knows. I believe today, we are regulated in the midsize bank group.

We are held to the standards of a midsize bank group. A lot of things talking about the fear of crossing of that $10 billion threshold, and expense it comes with that. Here we are, with $5 billion of assets. And we are already carrying the vast majority of those expenses. We think it is time to be treated like a community bank. That should give us some capacity to adjust accordingly. So, more to come on that front.

That is good color. Thanks, Tim. Brian just a technical. What is the tax rate we should be forecasting?

Chris, I can talk to it more on an adjusted basis. Because at the levels of $0.04 to $0.05 that we have had, that gets difficult with the FDIC non-cash charges brining that down. But on a run-rate basis, as we look to the adjusted, you are in the 20%s to mid-20%s, and that grows, that will increase as we create more taxable income. We have had great success with our tax strategies, at bringing down the rate. But as we add more of that 35% fed-tax income that will creep up from there as we go forward.

Gary Tenner, D.A. Davidson

Good morning. Just a couple of questions, Brian. I wonder if you could split out the costs related to the acquisition and the systems conversion cost? Would you break those for the quarter? And then also break it out as part of that $3.5 million I think you mention for the fourth quarter? How much of each?

Yes, so were talking about the fourth quarter is a little bit easier for me to think about because I've focused on that. But Pine River is about $600,000 in both the third and the fourth quarter. So $1.2 million hitting our results. And as you look at the system conversion, that certainly applies that $2.5 million $3 million hitting the fourth quarter.

We were building up the system conversion costs, as we went through the quarters. So I'm saying we're probably about $600,000 also in the third quarter. Now that I think about it, it was. The big number is in the fourth quarter.

You might want to remind everyone about the earn back.

Yes as I said, I said it in my prepared comments. That's on cash basis it is less than a year payback so we're just tickled by that benefit. $4 million to $5 million cost-savings on an annual basis going forward.

Okay. Great. I think you addressed this a little bit. But in terms of excess capital and options. On usage of that. A couple of years ago when you had several hundred million dollars of excess capital was sort of a no-brainer to buy back a lot of stock. Now that it's a smaller number is the expectation, especially given Tim's comments, that it seems like you all are likely to still be a cash buyer. That you need to retain some of that for M&A? And maybe we should assume a slower pace certainly. [Ex] the tender offer but kind of run rate buyback that will be lower?

Yes. Gary. I think that is a good read of the situation. Pulling in that tender at the prices we did at that time was just great. It made all of the sense that would pull the trigger at that time.

The $100 million that we have now, it seems like with the market opportunities that are coming our way that we should play those out. We are all leaning towards growing. And adding pieces to our franchise in the market or product capabilities, or teams just makes all of the sense in the world to use the capital that way. And so for a period of time here, I would definitely lean into that strategy as opposed to just another couple million dollars of shares.

I have to compliment you, Gary. I think you articulated the way we think about that last $100 billion perfectly. I [smile] to myself when we talk about the use of the prior excess capital as a no-brainer. On that point I would tell you well, our brains must be very small because we agonized over it.

[ Laughter ]

Over every action we took. In hindsight it looks like a no-brainer, but would put a bit more energy into it at the time. It is nice that it has played out the way it has.

[Long-term] it was much more difficult decision than I portrayed it as.

You are spot on with where we are at today, which is what counts.

In terms of the opportunities that you're mentioning, are those -- I feel like you have mentioned in the past that there is a lot of team opportunities out there. Do think the opportunities are more the team side than the whole bank deal right now? Or is it a little of each?

Look, make no mistake about it. We love the team opportunities. I mean, and for any teams out there looking for a home, I can't stop myself from making an advertisement. If you hear about this, come talk to us. We can do some amazing things together. Having said that, I'm going to turn to Brian to talk about our appetite on M&A.

I think what we have seen is some banking and some specialty finance opportunities that are attractive to us. [Each] situations that we can get done with our stock price and our capital available. That is really what has been more encouraging, to us.

There was a deal announced this morning in our market. Of course, we look at everything in our marketplace. We know everybody out there. It was not a good strategic fit for us. But it was real nice to see what they traded at. The one and half times tangible book value for the strategies that they were awarded with. Certainly, a good impression for ourselves. But, it is in the bank, and in the specialty finance. And it's in a sweet spot that could be attractive to us.

Thanks for the color.

Tim O'Brien, Sandler O'Neill.

Just a follow-up on M&A. As far as the markets that you would be interested in, not really any change in terms of where you would look to do a deal, no update there really. It is the same as before, right?

Yes. Our primary focus is really building meaningful franchises in the market where we -- Markets where we currently operate. When it comes to the specialty businesses, that is little bit different. Obviously, it doesn't really matter where they are based. We relying on the specialization and the focus. And, really, when we talk about specialty businesses, it has to fall into an area that we have had experience with from our prior institutions. That we're comfortable with from a risk management standpoint. From a management standpoint, et cetera. So you are right, no real changes there.

So that said, Tim, I know you guys are comfortable picking up gems, good clients in the energy space given the disruption that has taken place there. By extension, what about the Texas market? Maybe there are some gem little banks down there that you guys could leverage off of. And maybe those guys will be looking for cash down there. Is that something that has crossed your mind?

Tim, not a lot has changed down there in two fronts. One, our strategy has been a focus on the commercial banking and private banking higher end there. You do not need a lot of brick-and-mortar to execute on that. We have some great banking teams down there that generate some very good business for us. That can be scaled even more. On the bank side, a lot of those are the community banks and believe me, we have talked to a number and looked at them.

It adds a lot of consumer banking and not a lot of additional capabilities for premiums. That market is still getting a significant premium on the deals that they are doing. And so that has not been as attractive strategically to us, building a consumer franchise in Texas.

Rick, may want to speak to this but on the energy front, we have actually not seen as much opportunity in the [NP] and midstream space. Not that we expected much a midstream but in NP spaces would have expected -- We think there is still more to play out there. Rick, you might want to speak to that.

Sure, the follow-on would be that we are going into the fall [bar] and base of re-determination season. And in the course of that, there could be some situations where asset sales need to occur, where banks that may not have taken a proactive and more direct action with their clients will be forced to do so. As I think I've mentioned in past calls, several of our clients have built capital reserves with the intent to do acquisitions. And not seen a lot of opportunity, and if there is not a lot of movement, it doesn't create as much for us to enter into a new client relationship. I think, Tim, you are right on and we will see how that plays out.

And then, just remind us, what is the kind of sweet spot size range on a bank deal that you guys are looking at? Which would make sense now?

Look, we did Pine River which was a smaller deal, but we have talked more about that $300 million to $2 billion size in the past. I would leave it at that. I think you'll find us, we will be opportunistic and our criteria is a little tighter than what some other banks would be. As our undervalued stock rides up there, it gives us more opportunities to deploy that capital in a sensible way too.

And two quick number questions. Do you guys have a dollar amount Claw-back number at quarter end?

That is on the face of our balance sheet. I will give you a call afterwards.

Okay. Also, dollar amount of 30 to 89 day past-due for the total loan book, is that in the press release as well?

Yes. That is all covered in there, Tim. I made the reference of 8 basis points. That is all [in] 30 plus outside of the [pools].

Tim, I have 30 to 90 is just $1.5 million in the non-three 1030 pools. GAAP accounting says we have to include the three 1030 pools but as you know that is valued completely differently. We just spoke a [sum] of really the $1.5 million on the non-three 1030.

Thanks for answering my questions.

Tim, as always, thank you.

I'm showing that we have no further questions at this time, I will turn the call back over to Mr. Laney for his closing remarks.

Thank you, Chris. I thanked our risk management team, but I will close by just thanking again, all of our associates in the company. Just so proud of what this group of folks is doing to help build this new company. And to help build it in the right way. With that, Chris, we will close the call.

Thank you. This concludes today's conference call. If you'd like to listen to the telephone replay of this call will be available beginning approximately 2 hours and will run through November 6, 2015 by dialing 855-859-2056 or 404-537-3406. And referencing the conference ID of 43139237. The earnings release and an online replay of this call will also be available on the company's website on the investor relations page.

Thank you very much and have a great day. You may now disconnect.