UMB Financial Corp (UMBF) 2010 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the UMB Financial Corporation second-quarter conference call. (Operator Instructions). This conference is being recorded today, Wednesday, July 28, 2010.

I would now like to turn the conference over to Abby Wendel, Director of Investor Relations. Please go ahead, ma'am.

Thank you. Good morning, everyone, and thank you for joining us for our conference call and webcast regarding our 2010 second-quarter financial results. Before we begin, let me remind you that our comments in this conference call contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and within the meaning of the Private Securities Litigation Reform Act of 1995.

Such forward-looking statements rely on a number of assumptions concerning future events and are subject to risks and uncertainties, which could cause actual results to differ materially from those indicated in our statements made during this call.

While management of UMB believes our assumptions are reasonable, UMB cautions that material changes in interest rates, the equity markets, general economic conditions as they relate to the Company's loan and fee-based customers, competition in the financial services industry, the ability to integrate acquisitions, and other risks and uncertainties, which are detailed in our filings with the Securities and Exchange Commission, may cause actual results to differ materially from those discussed in this call. UMB has no duty to update such statements and undertakes no obligation to update or supplement forward-looking statements that become untrue because of new information, future events or otherwise.

By now, we hope most of you on the call or listening via webcast have had a chance to review our earnings release, which was issued early this morning. If not, you will find it on our website at umb.com.

On the call today are Mariner Kemper, Chairman and Chief Executive Officer; Peter deSilva, President and Chief Operating Officer; and Mike Hagedorn, our Chief Financial Officer.

The agenda for today's call is as follows -- Mariner will provide high-level commentary on our results, and Mike will review the details of our second-quarter financials. Then we will review our strategies and business drivers. Mariner will discuss our relationship-based commercial banking segment, and Peter will talk about strategies and results in our institutional businesses and our personal financial services business. Following that, we will be happy to answer your questions.

Now I will turn the call over to Mariner Kemper.

Thank you, Abby. Welcome, everyone, and thank you for joining us today.

As you've seen in our press release, UMB delivered solid financial performance in the second quarter. Earnings per share increased by $0.10 per diluted share to $0.57, up 21.3%. And net income was $23 million compared to $19 million in the second quarter of 2009.

We're pleased with these results and believe this continues to demonstrate that our business model is built for all economic environments. The main driver of the increase in net income is attributed to growth in noninterest income, which increased 15.2% compared to the second quarter of 2009 and represents 53.4% of total revenue. Continued execution of our business strategies enables us to achieve these solid results.

Net interest income increased 4.7%. As we've discussed in prior quarters, low interest rates put pressure on our net interest margin, which decreased 13 basis points to 3.29%. Loan demand remains soft, yet deposits increased again on a year-over-year basis.

We continue to maintain a very low cost of funds. However, putting those funds to work in a low interest rate environment remains a challenge.

True to our strategy, as a diversified financial services company, we have been actively seeking acquisitions that demonstrate our commitment to adding scale in our fee businesses. As these acquisitions have shown, most recently with J.D. Clark & Company, ANB's Corporate Trust book of business, and 5Star credit card portfolio, we are a strategic buyer focused on high-quality and long-term profitability.

Adding to this list, in June, we signed a definitive agreement to acquire Prairie Capital Management, which will add $2.2 billion of assets under management, plus an additional $2.6 billion in servicing assets. This acquisition adds to our position of strength in our wealth management space, and we look forward to expanding our product offering through the Prairie Capital brand.

Before delving into the financial details, I want to remind you of how we are looking at our business today. As you saw in the first quarter, we have refined our operating segments to better meet our customer needs. These three segments are commercial financial services, institutional financial services, and personal financial services.

Commercial financial services encompasses traditional commercial banking, including lending, treasury management services, commercial credit cards and capital markets. Institutional financial services includes institutional asset management and asset servicing businesses, along with our payments business. Personal financial services combines our consumer bank, insurance and individual wealth management services.

Now I will turn the call over to Mike -- who I am pleased to say most recently was named CFO of the Year by the Kansas City Business Journal -- for additional details. Mike?

Thanks, Mariner, and welcome, everyone.

During the quarter, our balance sheet grew, due in large part to the increase in deposits. As a result of soft loan demand, we've put those funds to work in our investment portfolio.

As of June 30, 2010, the portfolio stood at $5.03 billion and remains the largest earning asset on our balance sheet. We ended the quarter with $11.1 billion in assets compared to $10 billion at the end of second quarter last year. Loan balances were $4.4 billion, an increase of 2.7% compared to the second quarter of 2009.

Loan demand has remained relatively flat over the past quarter. Excluding the impact of the indirect loan portfolio runoff, balances would've increased by 5.6% compared to the same period in 2009.

Reviewing other financial highlights, return on average assets was 0.85%, an increase from 0.76% in second quarter 2009. And return on average equity was 8.77%, an increase from 7.66% a year ago.

We continue to proactively manage the risks to our balance sheet, which include interest rate, credit, duration and liquidity risks. Even with our larger balance sheet, we have remained disciplined in our approach, not sacrificing duration for yield in the portfolio or looking to alter our underwriting standards to improve returns in our loan portfolio. This approach will prove beneficial over the long run.

Even in these challenging economic times, our credit quality remains stable. While we experienced an increase in our nonperforming loans and net charge-offs this quarter, we are still well below the first-quarter 2010 industry median of 4.16% and 1.03%, respectively.

For the second quarter 2010, UMB's nonperforming loans were 0.52%, up from 0.33% compared to the second quarter 2009. This increase continues to be attributed to a single shared national credit participation that was placed on nonaccrual in mid-2009.

Net charge-offs were $5.4 million or 0.49% of average loans, a slight increase from 0.47% compared to a year ago. Credit cards accounted for 65% of net charge-offs.

Our allowance for loan loss is now $70.1 million, and our allowance as a percent of total loans is now 1.58%, or 31 basis points higher than a year ago. Mariner and Peter will provide additional color on our loan portfolio composition later in the call.

Activity in the investment portfolio during the quarter included $329 million in core portfolio securities that rolled off at an average yield of 3.86%. In turn, we purchased $726 million of securities at an average yield of 1.85%. Over the next three months, $247 million to $290 million of core investments with an average yield of 3.85% to 3.99% will mature. Over the next 12 months, $1.1 billion to $1.2 billion of core investments, with an average yield of 3.28% to 3.4%, will mature.

In the current low rate environment, we expect the repricing of these securities to negatively impact our interest income.

Approximately 19% of our investment portfolio is made up of municipal bonds. With news of stressed state and municipal budgets, we have received several questions lately regarding these securities. As part of our overall risk management practices, we only buy general obligation bonds for our portfolio and do not factor in the insurance component when considering which bonds to purchase.

Second, we recently completed a review of our municipal bond holdings and found the following. First, we have minimal concentrations in public entities that are under budgetary stress. Second, we have very minor exposure to states that are affected by the Gulf oil crisis. And third, where we have exposure to those entities, the exposure is in high-quality bonds rated A or higher.

On the liability side of the balance sheet, deposits totaled $8.4 billion, an increase of 9.7% compared to the second quarter of 2009. Noninterest-bearing deposits make up 34% of our total deposits, a significant contribution to our low cost of funds. We continue to be highly liquid, with a 52.8% loan to deposit ratio. In addition, 70% of our total loan portfolio is expected to reprice or mature in the next 12 months.

At UMB, we consistently hold high levels of capital. For the second quarter 2010, equity increased 7.7% to $1.1 billion. UMB remains well capitalized, with Tier 1, leverage and total risk-based capital ratios of 13.23%, 7.77% and 14.36%, respectively.

Turning to the income statement, for the second quarter 2010, net income was $23 million or $0.57 per diluted share. Net interest income was $77.7 million, an increase of 4.7% compared to the second quarter of 2009.

Interest expense decreased by 33%. Total revenue increased 10.1% to $166.8 million. Net interest margin decreased 13 basis points to 3.29% compared to 3.42% in the second quarter of 2009.

Average earning asset yields fell 35 basis points to 3.66%. Cost of funds declined 31 basis points to 0.53% from 0.84% in the second quarter of 2009. Low interest rates continue to make margin management difficult. When economic conditions improve, we anticipate loan demand will grow, thus easing the reliance on our investment portfolio.

Noninterest income was up 15.2% for the second quarter compared to the same period in 2009 and was 53.4% of total revenue. The increase in noninterest income was driven primarily by the nearly 35% increase in trust and securities processing revenue, which was $38.6 million for the quarter. The trust and securities processing revenue is primarily attributable to our institutional financial services segment, which contributes 81.6%; and to our personal financial services segment, which contributes 18.3% of the total.

The primary components of the $10 million increase in trust and securities processing fee income compared to the second quarter 2009 are as follows -- fund administration and custody services posted a $4.3 million or 38.3% increase. J.D. Clark provided $1.4 million of that total. Advisory fee income from the Scout Funds contributed $4.5 million or a 59.1% increase. And trust services increased $1.1 million or 16.5%. Later in the call, Peter will discuss the drivers of fee income in greater detail.

Noninterest expenses increased 6.1% to $126.1 million compared to the second quarter of 2009. Salaries and benefits increased 6.6% due to new hires, staff added as a result of our acquisitions, and increased benefits expense.

With that, I will hand it back to Mariner to begin the discussion of segment highlights and business drivers.

Thanks, Mike. We have a long history of serving our clients through relationship-based commercial banking. We know our customers well, and we land largely within our footprint. This competency is central to our business model.

Strong liquidity continues to allow us to meet the credit needs of our commercial customers. During the past 24 months, we have remained outwardly focused on developing new relationships, since we have not been preoccupied on internal problems that would otherwise require our attention.

Commercial loan commitments and authorizations are up 4.9% to $4.6 billion, yet the utilization rate is down to 29.8% compared to 32.9% in the second quarter of 2009. As a result, outstanding balances in our C&I portfolio decreased 4.9% compared to last year.

Our commercial real estate portfolio grew by 6.3% to $1 billion. These loans primarily finance owner-occupied real estate for customers we know and who are largely within our footprint.

Moving to commercial credit cards, spending in the second quarter increased by 26.5% to $208 million versus $164 million a year ago. Commercial cards made up 19% of the second-quarter total card purchase volume. We continue to grow this business, primarily with the public sector and state and county municipalities. And we are now expanding into the private sector. We are currently third in the nation in terms of purchasing and travel cards issued to state governments. We have card programs issued in eight states and continue to penetrate this market.

With that, I will turn it over to Peter to discuss our other two segments -- institutional and personal financial services.

Thanks, Mariner, and welcome, everyone.

As you know, UMB is more than a traditional bank. As Mariner previously mentioned, we are a diversified financial services company. The diversity of revenue streams gives us stability, and that, coupled with our strong balance sheet and remaining true to our core values, allows us to grow in all types of economic environments.

UMB has a very successful set of businesses that serve the institutional and financial intermediary marketplaces. We have been investing in these businesses over the past few years, seeking greater fee business growth. Our institutional financial services businesses include asset management and asset servicing, healthcare services, card products and services, along with corporate trust services.

The revenue from our asset management and asset servicing businesses is largely dependent on three key drivers -- first, new business sold; second, mutual fund and separate account flows; and third, equity market performance.

Second-quarter assets under management in Scout Investment Advisors increased to $8.3 billion, which was a 23.8% increase when compared to the second quarter of 2009. Assets in the Scout Funds comprised $7 billion of that total. Total revenue for these businesses, primarily advisory fee income from the Scout Funds, increased 59.1% during the second quarter of 2010 when compared to the same period a year ago.

Net fund flows into the equity and bond funds were strong at $338 million for the quarter. New separately managed account assets were $39.5 million for the second quarter. A large new pension fund client was added during the quarter, and we expect this business to continue to grow. Our success this year speaks to the long-term performance of the Scout International Fund, along with strong distribution.

Let me now turn to fund services, fund administration and custody services, where we ended the quarter with a total of $159.4 billion in assets under administration. Revenue in this area increased by $4.3 million or 38.3%, which is primarily attributed to the acquisition and successful integration of J.D. Clark & Company.

Continuing with other aspects of our asset servicing businesses, corporate trust assets under administration were $11.7 billion at June 30, 2010, an increase of 22% over the same period just a year ago. Our corporate trust and escrow service business continues to gain market share across our footprint and recently climbed to the number one market share position in Colorado for both trusteeships and paying agencies in terms of the number of issues handled.

Turning now to our payments businesses, purchase volume across all of our card product offerings increased 24.6% in the second quarter when compared to the second quarter of last year. Healthcare debit card purchase volume comprised 27.4% of total debit and credit card purchase volume, which speaks to the strength of our strong healthcare debit product.

Credit quality for cards is holding steady. Total credit card charge-offs were 4.5% of card balances and represented 65% of total Company net charge offs. According to Fitch Ratings Services, May 2010 industry credit card charge-offs averaged 10.7%, more than double our credit card charge-off rate.

Turning now to our healthcare services business, at the end of the second quarter, FSA and HSA account balances were $213.7 million, an increase of 21.9% compared to the second quarter of 2009. FSA and HSA accounts totaled $1.3 million, representing an 18.4% increase from one year ago. We continue to build out this source of low-cost, stable funding.

Now, looking in greater depth at the personal financial services segment, for the second quarter, total assets under management in our investment and wealth management business were $4.5 billion, an increase of 7.1% over 2009. We are seeing growth in this business with new assets under management coming in at $288 million during the second quarter, for a total of $458 million added year to date.

Trust income in this segment was $7.8 million, an increase of 16.5% from the second quarter 2009. As Mariner mentioned earlier, we announced in June that we've signed an agreement to acquire Prairie Capital Management. Prairie Capital's strong reputation, investment expertise and high-quality assets make a strong complement to our investment and wealth management business.

Our private banking and wealth advisor teams continue to more deeply penetrate our existing customer base. Total personal financial services deposits stood at $4.2 billion at June 30 and represented 50% of the Company's total deposits.

Turning to consumer lending, home equity balances were $453 million, an increase of 19.3% over second quarter 2009. Credit quality of this portfolio remains excellent, with a delinquency rate of just 0.03%. The industrywide delinquency rate for HELOCs was 2.89% in June. Net charge-offs for HELOC loans was only $118,000. This represents just 1.1% of total Company net charge-offs.

With that, let me hand the call back over to Mariner, who will close out our prepared remarks and will open up the line for your questions. Mariner?

Thank you, Peter. UMB endures as a strong financial services company, well positioned to deliver exceptional service in our suite of products. We have confidence in our business model to generate sound results in all types of economic environments, as we are not dependent on any one core business for growth. Our unwavering approach to managing this Company has paid dividends over the long term, regardless of the economic environment.

With that, I would like to thank you all for being on the call with us today, and I will turn it back over to the conference call operator to open the call for your questions.

(Operator Instructions). Chris McGratty, KBW.

Just a quick question on fee income. I saw the other line jumped up quite a bit, and I saw the other expense line as well. I'm wondering, is there something that I am missing? What's going on there?

Yes, Chris, this is Mike. During the quarter, we sold a piece of artwork, so you are seeing one side of the transaction. There is an expense that basically takes that to a net zero on the income statement as we contributed those funds to a foundation here at the bank.

So what was the dollar amount?

$3.5 million.

Okay, so it was a wash to earnings?

Yes.

Okay. In terms of credit, obviously it still remains pretty good, but the jump in 90-days, what is the increase there?

Jump in 90-days?

I thought it was like $14.5 million, and it was $6 million and change last quarter, unless I am missing it.

90 days past due.

I don't think it is anything in particular, nothing that is --

It's not the SNC portfolio?

No, not at all. (multiple speakers).

I'd point out that. It would probably -- it's mostly probably timing of --

[Accruals].

They're still accruing.

Yes, it's nothing, nothing -- just the general performance of the portfolio, nothing to note, really, of significance.

Okay. And what was the SNC exposure, total? Like, what's your total exposure to Shared National Credits at quarter end?

One second; I want to make sure I get that exactly right for you. One sec. It should be relatively unchanged from the last time we gave it to you. Yes, so commitments were $1.49 billion, with $441 million outstanding.

Okay. And this is my last question on the fee income businesses. With all that's going on in the legislation, can you -- Mike, can you talk about the impact from interchange on your card revenues, and your debit specifically, and maybe as well on your service charge income from NSF?

Yes, I would say in general, it is too early for us to comment specifically on what dollar impacts those changes might incur. Clearly, the legislation is intended to reduce those revenue sources, but at this point I think it is too early for us to put a number on it.

Okay. I guess of that $14 million of bank card fees that we see, how much is debit versus credit?

I don't believe we have ever made that distinction public before. So I'm going to say right now that we are going to not make that public as far as the split between the two.

Okay. Then on the NSF, how much of the $20 million and change this quarter of service charges was NSF fees?

Chris, this is Peter. Just in general, as you know, those rules go into effect August 15 in terms of the changes to NSF and OD on debit card transactions. And we are still in the middle, obviously, of polling our customers and trying to determine if they would like to opt in or opt out. So I think we will be in a better position next quarter to comment on that.

All right. And then last, just, Mike, on the margin, I guess you saw the reduction in the cash at banks by about $0.5 [billion] that helped the margin this quarter. I guess what's your expectation for just the overall size of the balance sheet near term?

Well, maybe I won't comment necessarily on the size of the balance sheet because I think that's going to be dependent upon available deposit sources and the pricing on those. And so I think you can and we have seen increases, potential increases in institutional deposits. However, you've got to make sure that you have a positive spread on those.

I do think it's important to note what you said, and that is that our cash balance is down. That's been purposeful as we've tried to move away from Fed fund reserve balances at night and started to move more of our portfolio into the core portfolio. So that has occurred, and you've obviously seen that in the balance sheet.

Thanks. And then the duration of the securities books?

Yes, I think there really are -- there probably is four things you should think about there. One would be the fact that we talked about, the overnight change at the Federal Reserve. Two, moving securities from noncore to core. On the duration side, I think we're looking at -- we are looking at some modest changes to duration. I don't think it will be anything remarkable, but we are looking for that.

And then I think fourth, we are looking, where it's possible, to find spread differential and mix changes. And that's a difficult thing right now. But we are analyzing that constantly, and we will take those opportunities as they arise.

All right. Thank you.

And Chris, I might just real quick add, back to the past-due items, now staring at the data, we tend to sometimes have some renewal issues and things like that, timing issues. So there's actually -- there's no real trend increase issue in the 90-day past due. As I stare at the data now, I think we had a couple of significant credits and things that needed to be renewed that have since, I would imagine, have been cleared up. There is no real significant changes in our trends on the past-90-days.

All right. Thanks a lot, guys.

Peyton Green, Sterne, Agee.

Okay, yes, I was just wondering if you could talk a little bit about the strategic significance of the Prairie Capital Management and possibly what the financial benefits are going forward. Thank you.

Hey, Peyton, it is Peter. Prairie Capital is really all about reframing in some ways our value proposition for our investment and wealth management clients here at the bank. Prairie Capital is a very high-quality investment advisor, as you know, located here in Kansas City, with a strong reputation for outstanding performance and outstanding client service.

Prairie Capital actually takes us someplace we hadn't been before in our banking products and services for our wealth management clients. We went to a certain level, but we couldn't really attract the very, very large and sophisticated, ultra-high-net-worth individual and family. Prairie Capital specializes in that. So it will take us upstream, if you will, into larger family relationships and personal wealth management. So for that reason, it really fills a hole that we had in our strategic offerings for our personal clients.

In terms of its financial contribution, I don't think we've made that public and wouldn't do that right now. But it will be an important part of our overall investment and wealth management platform as we go forward.

Okay. And then just in terms of the appetite and opportunity for additional noninterest income acquisitions or even credit card portfolios like the 5Star, are you still seeing a lot of those?

We are -- this is Mariner, Peyton; good morning -- we are seeing a great deal of opportunity and are very focused on our accretive acquisitions that add to the fundamental strategy of our business. And we very much like credit card portfolios. They tend to be accretive very quickly and add a lot of value. So we continue to look for those, and obviously, we are very focused on our banking franchise and our asset management business.

Okay, great. Thank you very much.

(Operator Instructions). John Rodis, Howe Barnes.

Thanks for taking my questions. Mike, maybe a question for you. I just want to make sure I am looking at -- I guess I show total loans were up about $140 million linked quarter. And was about -- was roughly $60 million or $70 million of that acquisition related, I guess, to the credit card portfolio?

That's correct. (multiple speakers) 5Star.

Okay. So if you back that out, I guess core loan growth was about $80 million or $90 million. Was that relatively granular as far as size and stuff, or were there are few big credits in there that drove the increase?

No, I don't believe that there's a few big credits driving it. I would say it's more just a part of the normal course of our business. Our HELOC balances are up; our credit card balances are up as well. I would say normal course of business.

Okay. And Mariner, you mentioned the utilization rate I guess on commercial credits was around 29%. What do you think is sort of normal in a better environment for that portfolio?

We normally run, in a better environment, we run in the low 30s. We have been, historically, between 32% and 35%, depending on the economic environment. But that would be a more normalized number for us.

We are actually back up slightly from March. We were at 29.29% in March, and we are at 29.83% today, so we've seen some slight improvement there.

You know, the real story, there's two ways to look at this, right, is what's going on in the economy, and certainly I think our utilization rate speaks to that; and then there is what's going on at UMB. And our commitments have recovered, really, from -- new commitments have recovered from precrisis to now. In 2007 year to date, new commitments -- commercial new commitments were $407 million, and year to date this year, they are $568 million.

So if we are looking [for sight of] what's happened at UMB versus what's happening in the industry, we feel like we are getting some market share grab and seeing some nice penetration on new business. So the fundamentals are very strong, while the economic situation certainly drags on us and the rest of the industry with lower utilization rates.

Okay, okay. Fair enough. Mike, maybe back to you real quick on deposits. I think at the last quarter's conference call, you said public funds were approximately $200 million. Where were they at this quarter?

Yes, they are less than that, as you might expect. Keep in mind, they're going to grow again later in the year. And some of those deposits have stuck around in 2010 much longer than they have in past years. So that is a balance that can move quite a bit at any one point in time, but it has not remarkably changed.

Okay, so it is down, but -- it's not zero, but it is around the $200 million level (multiple speakers)?

I don't think it will go to zero, to be honest.

It never does.

Yes.

Okay, so, call it $100 million to $200 million this quarter?

That's right.

Okay. And just a final question for you, Peter. I'm just kind of curious -- if I look at -- obviously, the trust and securities processing line item is very much market driven, and during the second quarter, the equity markets were down actually double digits for the most part, yet linked quarter you were able to see a nice increase of about $3 million. And if I look at your level of assets under management or administration, they were all down on a linked-quarter basis. So what really was driving the increase during the quarter, I guess?

Well, number one, we acquired J. D. Clark in the second quarter of last year. So we have a full year and a full quarter of benefit from that acquisition. We have our Corporate Trust acquisition from ANB that we completed late last year, which is in the numbers this year.

We have our card acquisition, 5Star, which is in the second-quarter numbers. We actually closed that on April 1, and so that is fully in the second quarter. So a lot of it was acquisition-related growth, or growth related to acquisitions. You are right about the market; we saw our assets fall in the Scout complex, for example, by about $600 million during the quarter in assets under management. And of course, fee revenue is calculated off of that.

So we've made it up other ways, and we are growing other parts of the business and have a wonderful, balanced portfolio of fee-generating businesses in the trust and securities processing area.

But I guess my point -- the first two acquisitions, the J.D. Clark and the American, those were both last year. And I guess if you look on a linked-quarter basis from the first quarter, fees were still up $3 million. So I guess that leaves the 5Star acquisition. And I guess how does that positively impact that line item, I guess?

Well, trust securities processing, it really doesn't. That's my mistake. That's in a different line item.

A couple other things, though, I would note. Number one, net flows were very positive, as I noted, into the Scout complex during the period, which offset some of the market losses that we had, which was a big part of why we performed the way we did.

And then new business sold, which I didn't spend a lot of time on, but new businesses in our fund services platform as well as in the trust part of the bank, which all rolls into that line item.

Okay. And again, just to make sure I'm looking at this correctly, too, the balances you're sort of giving, I guess like mutual funds, asset services, serviced, I guess, of $159 million, that is a period-end number?

I think -- yes, that is a period-end number.

So obviously, the average number, which would probably drive the processing income line item, could be higher than that, or--?

It certainly floats around during the quarter.

Okay, okay. Thanks a lot, guys.

(Operator Instructions). It looks like there are no further questions. Please continue.

Thank you very much for your interest in UMB. This call can be accessed via replay at our website beginning in about two hours, and it will run through August 12. And as always, you can contact UMB Investor Relations with any follow-up questions by calling 816-860-1685.

Again, we appreciate your interest and time.

Ladies and gentlemen, that does conclude our conference for today. If you would like to listen to a replay of today's conference, please dial 303-590-3030 or 1-800-406-7325, followed by the access code of 4324369 and the pound sign.

Thank you for your participation. You may now disconnect.