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spk03: earnings conference call and webcast for the fourth quarter of 2021. My name is Lauren and I will be coordinating your call today. If you would like to ask a question during the presentation, you may do so by pressing star followed by one on your telephone keypad. I will now hand you over to your host, Daniel J. Schreider, President and CEO to begin. Daniel, please go ahead.
spk01: Thank you, Lauren, and good afternoon, everyone. Thank you for joining us for our conference call to discuss Sandy Spring Bancorp's performance for the fourth quarter of 2021. This is Dan Schreider speaking, and I'm joined here by my colleagues, Phil Mantua, our Chief Financial Officer, and Aaron Caslow, General Counsel for Sandy Spring Bancorp. Today's call is open to all investors, analysts, and the media. There's a live webcast of today's call and a replay will be available on our website later today. Before we get started covering highlights from the quarter and taking your questions Aaron will give the customary safe harbor statement.
spk00: Thank you, Dan. Good afternoon, everyone. Sandy Spring Bancorp will make forward-looking statements in this webcast that are subject to risks and uncertainties. These forward-looking statements include statements of goals, intentions, earnings, and other expectations, estimates of risks and future costs and benefits, assessments of expected credit losses, assessments of market risk, and statements of the ability to achieve financial and other goals. These forward-looking statements are subject to significant uncertainties because they are based upon or affected by management's estimates and projections of future interest rates, market behavior, other economic conditions, future laws and regulations, and a variety of other matters, including the impact of the COVID-19 pandemic, which by their very nature are subject to significant uncertainties. Because of these uncertainties, Sandy Spring Bancorp's actual future results may differ materially from those indicated. In addition, the company's past results of operations do not necessarily indicate its future results.
spk01: Thanks, Aaron. We're pleased to be on the line with you today to discuss our fourth quarter and our annual performance. 2021 was a record year for us, and our fourth quarter results puts us in a great position going into 2022. The margin remains strong. We achieved record commercial loan production. Our wealth group significantly grew assets under management, all while we continued to invest in our future. While earnings for the quarter declined, there were several factors at play, which I'll explain in more detail during our call, that demonstrate the longer-term growth on our horizon. With that, I'll just jump into the details. Today, we reported net income of $45.4 million, or 99 cents per diluted common share, for the quarter ended December 31, 2021. The current quarter compares to $56.7 million or $1.19 per diluted common share for the fourth quarter of 2020 and an income of $57 million or $1.20 per diluted common share for the third quarter of 2021. Core earnings for the fourth quarter were $47.8 million compared to $55.7 million for the prior year quarter and $52 million for the linked quarter. This decrease in core earnings is attributed to an expected decrease in non-interest income and an increase in non-interest expense. And we'll provide more details on this shortly. The provision for credit losses was $1.6 million compared to a credit of $4.5 million for the fourth quarter of 2020 and a credit of $8.2 million for the linked quarter. It is important to note that this quarter's provision was driven by good news, our record commercial loan production and not deteriorating loan quality. In fact, our credit quality and outlook continue to improve. The majority of our loan production took place late in the quarter, so we'll see the benefits of that portfolio growth beginning with the first quarter of 2022. Shifting to the balance sheet, total assets were $12.6 billion, a 2% decrease compared to $12.8 billion at the end of 2020, and $13 billion for the linked quarter. Excess liquidity from deposit growth and PPP loan forgiveness was used to reduce borrowings and fund the fourth quarter loan growth. Total loans declined by 4% to $10 billion at December 31, 2021 compared to $10.4 billion at December 31, 2020. Excluding PPP loans, total loans at December 31, 2021 grew 5% to $9.8 billion compared to $9.3 billion at December 31 of last year as the commercial loan portfolio grew $681 million while the residential mortgage loan portfolio declined $153 million. The growth in the commercial portfolio excluding PPP loans occurred in all commercial portfolios led by the $507 million or 14% growth in the investor-owned commercial portfolio. The year-over-year decline in the mortgage portfolio resulted from customer refinancing activities and the continuing sale of the majority of new mortgage loan production. In the second half of 2021, we saw $2.1 billion in new gross loan production, including $1.5 billion of funded production. This more than offset $874 million in commercial loan runoff. During the quarter, funded commercial loan production increased to $937 million, or 115%. compared to $435 million for the same quarter of the prior year. These are remarkable numbers, and we're extremely proud of what the team delivered for our company and our clients. Last quarter, I shared with you some of the actions we were taking to put excess liquidity to work and to accelerate commercial loan growth in the fourth quarter, including adding new talent, looking at larger credits, proactively approaching new and prospective clients, and pursuing new opportunities in our market. It's clear that those efforts delivered results, and again, we are in a great position for continued growth this year. We've previously disclosed where we stand in PPP forgiveness. At the end of the year, we had outstanding PPP loans of $183.5 million with remaining fees to be earned of $4.7 million, which we expect will be earned gradually over the course of the year. PPP revenue earned in the fourth quarter totaled $9.2 million compared to $11.4 million in the linked quarter. It is important to note that throughout 2020 and 2021, we had nearly 100 people dedicated to PPP. With the vast majority of PPP forgiveness behind us, those resources have shifted back from helping clients through the PPP process to hitting the street and driving new and expanded business. This change is, again, evidenced in the record commercial loan production we achieved this quarter. On the deposit side of things, year-over-year deposits increased 6%. This was driven by 14% growth in non-interest-bearing deposits and 2% growth in interest-bearing deposits, and reflects the impact of the PPP program and growth in transaction relationships. Time deposits declined $367 million as we continued to manage our overall cost of funds. Non-interest income for the current quarter decreased by 30%, or $9.7 million, compared to the prior year quarter. We anticipated this reduction, and it can be attributed to the rising rate environment for fixed rate mortgages, which slowed refinance activity, as well as our decision to sacrifice gain on stale as we shift to holding a larger percentage of our mortgage production on the balance sheet and regrowing this asset class. While income from mortgage banking activities declined 75% compared to the prior year quarter, this was still a strong quarter for our mortgage line of business, and we saw an uptick in outstanding balances in that portfolio for the first time in five quarters. Looking forward, we anticipate that quarterly mortgage gain on sale results will be comparable to those achieved in the fourth quarter as we continue to drive a larger percentage of our production toward the rebuild of that portfolio. Our wealth management income increased 6.3 million compared to 2020 as year-over-year assets under management grew 927 million and that client base continued to expand. Across the board, our wealth group, which includes Rembrandt Pendleton Jackson, Sandy Spring Trust, and West Financial Services, has performed exceptionally well and delivered significant results for our company. On the margin side, the net interest margin was 351 compared to 338 for the same quarter of 2020 and 352 for the linked quarter. Excluding the amortization of the fair value marks derived from acquisitions the net interest margin would have been 352 compared to 331 for the fourth quarter of 2020 and 349 for the linked quarter. We are pleased with the overall stability of the margin as the fourth quarter margin without the benefit of PPP-related income would have been 330. On a linked quarter basis, this was a five basis point decline as excess liquidity continued to build early in the quarter. This trend should reverse as we enter 2022 as our strong loan growth during the quarter has significantly reduced our overnight cash position by the end of the quarter. Non-interest expense increased $4.5 million or 7% compared to the prior year quarter. This was primarily due to the increased compensation costs that come with delivering record commercial loan production, as well as operational and staffing costs and expenses related to the implementation of our strategic initiatives. Salary and benefit expense increased $5.5 million compared to the fourth quarter of 2020 and $3 million for the linked quarter. The non-GAAP efficiency ratio for the fourth quarter was 50-17 compared to 45-09 for the prior year quarter and 46-67 for the linked quarter. As we've commented in prior quarters, we feel that over time, our non-GAAP efficiency ratio will settle in that 50 to 51% range as we continue to invest in the future. Shifting to credit quality, the positive trend in the level of non-performing loans continued this quarter at 49 basis points compared to 111 basis points at December 31 of 2020 and 80 basis points for the linked quarter. To put this further into context, the current level of non-performing loans as a percentage of total loans is the lowest it has been since the second quarter of 2018 when it was at 46 basis points. Loans placed on non-accrual during the current quarter totaled a half a million dollars compared to 54.7 million for the prior year quarter and 5.7 million for the linked quarter of 2021. This decline can be attributed to the improved economic environment. Loans greater than 90 days or more past due decreased from the prior quarter as a result of the renewal of existing performing portfolio loans that were in the process of being renewed at the end of the prior quarter. Net charge-offs for the fourth quarter for $400,000 compared to net charge-offs of $500,000 for the fourth quarter of 2020 and net charge-offs of $7.8 million for the linked quarter. The allowance for credit losses was at $109.1 million or 1.1% of outstanding loans and 224% of non-performing loans compared to $107.9 million or 1.11% of outstanding loans and 138% of non-performers at the end of the prior quarter. Excluding PPP loans, the allowance for credit losses to outstanding loans was 1.12% at year end. The tangible common equity ratio increased to 9.21% of tangible assets compared to 8.61% at December 31st, 2020. Excluding the impact of the PPP program from tangible assets, tangible common equity ratio would be 9.35%. The company had a total risk-based capital ratio of 1,455, a common equity Tier 1 risk-based capital ratio of 1,188, a Tier 1 risk-based capital ratio of 1,250, and a Tier 1 leverage ratio of 926. And during the quarter, the company repurchased 1,088,172 shares of its common stock at an average price of $48.66 per share, and this completed the authorized repurchase of 2,350,000 shares under the current repurchase authorization. With that, we'll now turn to the supplemental information we also issued this morning. On slide two, we have detailed specific industry information, as we have in the past. Outstanding balances for each segment are as of December 31st of 2021. And as you will see, we have no current payment accommodations in those asset classes. And Phil will now talk you through CECL and our capital position.
spk07: Thank you, Dan, and good afternoon, everyone. Picking up on slide three, we have a waterfall representation of the movement of our allowance for the fourth quarter of 2021, broken into the components that reflect the key drivers of change during quarter. Change over the course of the current quarter, which resulted in a provision expense for the first time since the third quarter of 2020, was primarily driven by the growth in the loan portfolio by the end of the quarter and the associated impact to our qualitative factors. Continuing improvement in the forecasted economic factors provided the major offset. Our next slide shows the full year transition of our allowance for credit losses, which has been dominated by improved economic forecast factors, resulting in a reserve release of $56.3 million over the course of 2021. Slide five is the comparison of our current and more recent economic forecast variables. Our CECL methodology continues to use the Moody's baseline forecast that for the fourth quarter was a version released by Moody's on December the 17th. This baseline forecast integrates the effect of COVID-19 and portrays an unemployment rate for our local market that has essentially already peaked and ultimately recovers to a level of 2.81% in the fourth quarter of 2023. On slide six is our key macroeconomic variables. For the current quarter, all of these variables have been applied in a consistent manner to those same factors as used in prior quarters. On slide seven, we provide some additional granularity related to our reserve from a portfolio view where you can see a significant number of categories of commercial loans showing increase in reserves based on the strong loan growth during the quarter. We should note that the 1.56% of reserve reflected for the commercial business loans includes PPP loans in the balance, although there's no reserve required on those loans. And as illustrated on the footnote at the bottom of the slide, when adjusting the balance to include PPP loans, exclude PPP loans outstanding, the reserve on our commercial business segment would be 1.78%, and our total loan reserve would be 1.12% of our total loans. And finally, on slide eight is a trend of our capital ratios with some brief explanations regarding the treatment of certain items and their impact on the resultant ratios. Included in those comments is an adjusted tangible equity to tangible asset ratio to reflect the impact of PPP loans on the current measure. As noted at the bottom of the slide, we completed our authorized share repurchase program during the quarter, and the metrics displayed reflect the impact. We continue to feel confident about our capital position, as all regulatory ratios continue to be in excess of well-capitalized requirements. And we have also recently updated our capital stress tests, where we have constructed a baseline in severe forecast scenarios, utilizing the same Moody's baseline forecast that's incorporated in our CECL calculations, and a COVID-based S4 economy in the most severe case. With that, Dan, I'll turn it back over to you.
spk01: Thanks, Phil. Before we conclude our prepared remarks, I'd like to briefly share a few other comments with you about our performance beyond financials. As we look back on the year, we have a lot to be proud of, most notably our people. Thanks to our employees, we once again earned several local and national recognitions. For the third year in a row, Forbes named Sandy Spring Bank one of America's best in-state banks and the number one bank in Maryland. The Washington Post and the Baltimore Sun also named us the top workplace for the third consecutive year. And for the second consecutive year, American Banker named us one of the best banks to work for. These have continued to be difficult times, but we're so grateful for our employees. Today, we employ more than 1,200 folks. And as we continue to grow, we remain focused on fostering a culture that prioritizes people and doing what is best for our clients and community. To that end, last quarter I shared with you we made a decision to require all employees to be vaccinated against COVID-19 by November 1st of 2021. We made this decision early last fall because we felt it was necessary to ensure a safe workplace for our colleagues, clients, and community. This policy went into effect as planned and the implementation was extremely smooth. And we continue to be pleased with this decision. We got in front of the latest variant. We've continued to operate our business with confidence and without significant disruptions. We are offering employees flexibility as needed, but our vaccine policy was a necessary and good decision, both for the health and well-being of our employees and our business. This was a solid year and a great quarter. Our momentum in commercial loan production and growth in wealth assets are a testament to our success in the marketplace and the trust our clients have in us. We strive to take a long-term view in all that we do, so we're pleased to be in a position where we can invest in talent, technology, and the future of our company. And this concludes our general comments for today, and now we'll move to your questions. Operator, if we can have the first question, that would be great.
spk03: Of course. If you would like to ask a question, please press star followed by one on your telephone keypads. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure your phone is unmuted locally. Our first question comes from the line of Casey Wittsman from Piper Sandler. Casey, please go ahead. Hey, good afternoon.
spk00: Good afternoon, Casey. Hi, Casey. Hi.
spk02: I thought we'd start maybe just with a really good loan growth this quarter. What's the reasonable expectation for commercial growth and the overall growth this year? I assume it wouldn't be quite at the same pace as you were putting on this quarter going forward?
spk01: No, I think, yeah, good question, Casey. I think this quarter had a lot of things at play. As I mentioned, just folks getting back aggressively, calling on existing clients and new opportunities, coupled with the fact that many, particularly in the commercial real estate area, are trying to get ahead of anticipated rate increases before 2022. So our outlook is, in the commercial space is 8 to 10 percent growth in those categories and overall loan growth probably in the mid to upper single digits.
spk02: Okay. I think you had mentioned possibly pursuing some loan purchases last quarter, but did you have any of that impacting the growth this quarter?
spk01: We did not. We actually did not have any acquired or purchased participations in the quarter.
spk02: Okay. And how about the new loan yields on the loans coming on? How do those compare with the loan yields on the rest of the portfolio?
spk07: Yeah, Casey, this is Phil. You know, it's certainly a mixed bag of average yields, you know, based on the different overall portfolios. But by and large, you know, the average of all production that was generated in over the quarter and more in particular the bulk of which was generated in December was probably in the low 4 to 420 range. And that's actually fairly comparable to other things that had been booked, you know, in previous quarters. So, you know, it doesn't appear as if we really sacrificed a whole lot of yield in order to garner the amount of production during the period.
spk02: Great. And maybe this is a broad question, but can you address how you're feeling positioned for rate hikes? I think your ALCO model suggests that you're asset sensitive, but can you walk us through sort of the push and pulls going on there and what kind of deposit betas you're assuming this cycle?
spk07: Sure. Yeah. So you're correct that from the standpoint of published kind of interest rate risk information, we would portray have and will continue to portray as being what I would characterize as slightly asset sensitive. And I think that that continues as we look forward. One of the things that we were obviously able to do here at the end of the quarter was absorb a significant amount of the liquidity that we had on the balance sheet through the second half of the year. And certainly that went into the loan portfolio predominantly. And so that changes the reported profile a little bit. But I would say that, you know, with that outsized liquidity was also a little bit more of an exaggerated asset sensitivity position. But having said all that, you know, we will certainly, in terms of looking at the margin, we will certainly benefit from, you know, if the Fed chooses to do the three rate hikes throughout the year, It won't be significant in terms of, you know, just because of the timing that may take place or the incremental amounts to the margin. But nevertheless, we will certainly benefit. And that includes a kind of deposit betas to that aspect of your question that would indicate that if we thought we needed to, we would probably run some of those money market and other more rate sensitive items at a 40% beta. We don't believe that that'll be necessary, especially given where we're starting this rate cycle related to the buildup and the nature of our deposit base. I mean, we're still operating at about a 93% loan-to-deposit ratio. And as you probably remember, that's traditionally low for us. And so I feel like we're entering this cycle in a pretty good position so that we don't have to necessarily get out in front of you know, some of the rate offerings that we may have had to do the last time we had such an upturn in rates.
spk02: Thank you. Helpful. I'll let someone else jump on.
spk07: Thanks, guys. Thank you.
spk03: Our next question comes from the line of Brody Preston from Stevens Inc. Brody, please proceed.
spk00: Hey, good afternoon, everyone. Hi, Brody.
spk06: Hey, Brody. um i guess i wanted to ask us on the securities book um you know looking at it you put a little bit more liquidity to work this quarter so i wanted to gauge you know one what's the appetite going forward and then uh you know quickly if you happen to have the duration of uh of the portfolio and uh what percent of it is floating rate handy it would be helpful yeah brody this is phil um we really did not
spk07: add to the investment portfolio position during the quarter. We chose, I think, as we discussed on a previous quarter call, that we preferred to, you know, kind of keep our powder dry there in the event that we got the kind of loan growth that we ultimately did here in the quarter to absorb the, at the time, probably about a billion dollars, the next, you know, overall overnight position with the Fed. And we don't really... see that the necessity to add to the portfolio here going forward as well. We did make some kind of under the hood adjustments that are related to your question around the duration of the portfolio. But by and large, I think we're just going to continue to replace cash flow runoffs with like kind of instruments, which are mostly mortgage-backed CMO-type products that'll just continue to give off a consistent amount of cash flow into the future. The overall duration of the portfolio is about 52 months, and it's been that way for now for a couple quarters. And do you happen to know what percent of it? Yeah. Yeah, the floating rate piece is pretty small. I'm going to just Off the top of my head, say it's probably less than 10% of the portfolio.
spk06: Got it. Got it. And then just on the just maybe switching to capital, just M&A, I just wanted to know if you could update us in terms of how you're thinking about M&A going forward in terms of bolts on fee or whole bank M&A.
spk01: Yeah, Brody, Dan here. our success in the wealth space and particularly with the acquisitions of RIAs has us continue to be interested in growing both organically and through partners and particularly in that wealth space. We think we have scale and it's working well and so we continue to be high on that business and continue to look for good opportunities in the bank side of things. We think know continuing to grow again organically and through select partnerships in the banking space is really important i don't have anything on the racket to comment on at this point but we continue to build those relationships okay and on the loan mix um i'm sorry if i missed this but do you happen to have what percent of the loan portfolio is uh floating rate
spk07: Yeah, Brody, I have that information. On the overall total loan portfolio, about 24% of total loans is floating rate. That percentage in the commercial portfolio is certainly higher than that. But in terms of the overall portfolio, about 24%. And about half of those that are floating have floors on them as well. And, you know, a large majority of the loans that have the floors are at the floors, you know, are at the floors at this time. So, you know, certainly as rates pop back up, and most of those floors, I think, are probably on average around 4%. There's probably, what, the 75 basis points of repricing. It'll have to take place before we see any, you know, any additional, you know,
spk06: uh benefit from uh you know from from rates rising on those that portion of the portfolio got it and then the last one um from me was just some of the the tick up that we saw in the in the salaries and benefits um line item would you expect that to further increase in the first quarter or how should we be thinking about about that specific line item yeah yeah i would i would certainly 2022.
spk07: Yeah, great question. I would certainly not expect it to increase from , and in fact, I would expect some of that to come back to us. You know, we increased incentive compensation quarter over quarter here, probably by approximately $2 million. That was, you know, mostly necessitated by the, you know, the need to cover the amount of incentives that were related to the, you know, outsized amount of production toward the end of the quarter. that's not going to necessarily need to be repeated on a quarter-over-quarter basis. And so I would think that some of that's going to come back to us. And then, you know, in the broader area of expense, we also had a couple of one-time related expenses. One in the benefit area related to some pension settlement charges that we were required to take due to the accounting on that. and some other expenses related to disposition of some of the branches we closed earlier in the year that are both worth in total about $1 million. So if I were going to kind of say what to look at from a quarterly standpoint on expenses, I would say that that run rate is probably somewhere between what it was in the third quarter and what it was in the fourth quarter in that $64 to $65 million quarter range.
spk03: awesome thank you very much for that and thank you for taking my questions i appreciate it thanks brody our next question comes from the line of catherine mela from keith brouette and woods catherine please go ahead thanks good afternoon hi catherine hey catherine i just as a follow-up to the expense question so if we take a more normalized
spk04: run rate of this quarter at 64 to 65 as you look forward to 2022 do you still think i think last quarter you said that the expense growth rate should be somewhere around four percent do you still think that's a good expense growth rate for next year or are there other investments or kind of inflationary pressures that could push that growth rate up a little bit yeah catherine phil again i do still believe that on a and i'll call it a little bit of a normalized basis year over year when you
spk07: pull out especially in the things that were related to our home loan bank prepayment fees and things like that that occurred during 21. But yeah, that 4% range is probably still a reasonable way to look at the overall level of expenses year over year.
spk04: Great. And then any thoughts on buyback? You finished your most recent authorization, but your stock is a lot higher valuation today. So how are you thinking about buybacks and capital allocation this year?
spk01: Yeah, Catherine, Dan, we currently, as you know, used up the authorization. We likely like to have one in place at all times just to have that tool available to us. But there are no immediate plans to be active on repurchases at this point.
spk04: Okay, great. And then my last question on credit, you know, credit's improved so much, and the ACL ratio obviously has continued to come down, but there was a little bit, you know, less of a reserve release this quarter than we've seen in past. So is it fair to say that this is, we're kind of evening out, and from here, you know, there's limited, I guess, reserve reversals, or would you expect that ratio to continue to move down?
spk07: Okay, Catherine, this is Phil again. I think we're probably leveling off here to directly, more directly answer your, most directly answer your question. I think the reserve and the provision that goes with it move as growth moves at this point. And we've said this before, and that's just, you know, absent of any outsized or unusual charge off activity that we're not anticipating, you know, as we move forward from this point. So, yeah, I would say that, you know, where we're at in that, 110 to 112 level of total loans is probably something to look forward towards. Okay.
spk03: Great. Thank you so much.
spk01: Thanks, Catherine. You're welcome. Thank you.
spk03: As a reminder, to ask any further questions, please press star followed by one on your telephone keypads. Our next question comes from the line of Eric Swick from Bowenning and Scattergood. Eric, please proceed.
spk05: Good afternoon, guys.
spk07: Hi, Eric.
spk05: Good afternoon, Eric. First one for me, just thinking about the net interest margin a little bit, and I appreciate the commentary on the asset sensitivity. If we just look at the core in the fourth quarter of that 3.3%, level. Just kind of curious, a lot of the strong loan production in the fourth quarter wasn't fully in the run rate at that point. As we look forward over into 1Q and maybe a little bit into 2Q, how do you see the trajectory of that core margin from this point?
spk07: Yeah, Eric, this is Phil. I think you're going to see it expand from where we finished out the the fourth quarter, I think you could see it head towards 340 in that range, just based on the projected benefit from what happened through this quarter. And so I think that that's where it is. Again, that's core. We still have a little bit of PPP, as Dan mentioned, left there. So you're going to get some bump up in probably the first and maybe second quarter related to that. But from a pure core standpoint, I do think that it's it could easily expand into that range here as we move forward.
spk05: That's helpful, thanks. And then just thinking about the non-interest income and especially in light of the decision to retain more of the residential mortgage production on the balance sheet at this point. I look back over the past couple of years and obviously had very strong years in 2020 and 21 for mortgage banking. I guess as we think about 22, do we start you know, moving back to something more like that, that 2019 level. And I guess, you know, kind of bigger picture with non-interest income is that 4Q level, a decent run rate going forward. Obviously, you're getting some benefit from larger wealth management, but that mortgage banking is certainly, you know, a bit of a headwind at this point relative to the last couple of years.
spk01: Yeah, Eric, this is Dan. You know, I would look at, from a mortgage banking standpoint, kind of model after what we experienced in the fourth quarter. and that'll give us the opportunity to balance both gain revenue and rebuild that portfolio a bit. That's probably a good way to look at it. Okay.
spk05: Thanks. That's all I had today. I appreciate it, guys. Thanks, Eric. Thanks, Eric.
spk03: We currently have no further questions, so I'll now hand back over to the management team for any closing remarks.
spk01: All right. Thank you, Lauren. Thanks, everyone, for taking the time to participate this afternoon, and we hope that you have a great one. That concludes our call.
spk03: This concludes today's call. Thank you for joining, and I hope you have a lovely rest of your day. You may now disconnect your lines.
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