Great Western Bancorp (GWB) 24 Oct 192019 Q3 Earnings call transcript

Good morning and welcome to Great Western Bancorp's Fourth Quarter and Full Fiscal Year 2019 Earnings Conference Call. [Operator Instructions]

Joining the call this morning is Ken Karels, Chairperson, President and Chief Executive Officer; Doug Bass, Chief Operating Officer; Peter Chapman, Chief Financial Officer; Karlyn Knieriem, Chief Risk Officer; Michael Gough, Senior Vice President Credit; and Michael Doyle, Interim Chief Credit Officer.

Before getting started, Great Western will like to remind you that today's presentation may contain forward-looking statements that are subject to certain risks and uncertainties that could cause Company's actual future results to materially differ from those discussed. Please refer to the forward-looking statement disclosures contained in the presentation on the company's website, as well as their periodic SEC filings for a full discussion of the company's risk factors.

financial be non-GAAP conference on certain call. today measures discussed will this Additionally, measures to should only understanding to measure are References non-GAAP results. provided upon a results performance of actual relied Great and assist trends be and not as financial Western's in you non-GAAP appropriately for included presentation. referenced within such Reconciliations and the measures are that note being is Please recorded. event this

ahead. Officer, over Bancorp's Chairperson, Western would like Ken Ken, I Karels. Great now to to turn please go Chief the Executive conference President,

joining the Okay. and Good you for morning call. thank

quarter a income this higher point million fiscal due end year, I'd our With charges. mainly significantly marking of few to the like is related lower than quarter, to of out last Net credit highlights. $XX.X

the very have continue proactive these next the aggressively ratio will in down been work declining to for XX.X% costs efficiency Expense fiscal with We our during year. strong and control quarter, of remained year. deposit we our interest managing with these

repurchases have share continued the year, XX.X%. execute with authorization share book quarter the buybacks, We million to increased for per million value for more. executed tangible in fiscal And during has filed XX in $XX

to for Chapman. Chief Now in quarter over September results, Financial like insight to call the Officer, our I'd Peter Pete? turn financial more our

Thanks, Ken morning and good everybody.

income interest increase was - from for was a revenue, to the Looking modest the million $XXX quarter, which prior quarter.

X.X% margin Our net respectively X.XX% and were the our for net margin and interest interest quarter. adjusted

basis quarter-over-quarter, basis cost investment The total a as net to in portfolio by adjusted offset points result deposits primarily partially reduction of of margin X down loan X yields, was a lower and interest points. the

the Fed interest rate pressure will Continued by NIM. tightening of

in would per proactively to manage NIM to down current comments. with environment We will consistent quarter rate X drift quarter expect prior basis to costs, X deposit but points the continue

attributable income, of increase interchange million fee to $X.X million increase the million of derivative to swap was to due related lower $X.X the of was increase stronger by $XX $X.X mortgage million for and higher Non-interest $X.X the quarter. attributable remainder due quarter the - The NSF million to to income seasonally for was overdraft credit increased income charges this income. higher

also $X.X to quarter quarter $X.X income. declined we mainly the $XX.X of a the by million the benefits in in approximately of Non-interest our the variable fiscal add XXXX. lower expense forward, expect quarter, Colorado final acquisition a October million million expenses business and in non-interest trust million. Looking were of the $X.X due to for compensation Salaries decline

these being to quarter. to a due in FDIC Data processing the renewed increased $X.X of contracts September during assessment decline lower a annual number professional quarter by $X.X million a mainly due of million by in and were fees the offset

forward. continue in the to to following quarter. of The to absence project million and approximately to looking be due Trust million spend these the non-recurring $X in have business do rate we $XX of diligent quarter run expenses, addition While the the in to increase we expense during million monitoring expect investment benefits more the $XX in the range current Colorado

Operating more loan Bass. on our now to over Doug? growth, it deposit Chief Officer, For and turn I'll Doug

Pete good everyone. Thanks, and morning

prior end or X.X%. were is million $XXX $XXX the brings loans which a the to end quarter, September growth decline from billion, quarter year At $X.X million of of full the XXXX which

partially and During estate balances balances. $XXX development occupied This the $XXX by and non-owner a million increase quarter saw construction offset in was of we million. real owner decline in

favorable more and terms projects to due existing $XXX change quickly balances The interest In by completed market, the declined of $XX projects million. also categories real loan the driven addition, being and and construction the more and combination rates. in decline secondary were by of multi-family was both balances totaled multi-family stabilized in refinancing million. development to forecast estate than This and a lower that

offices the be fiscal prior year contributor growth seven major $XXX fiscal a XXXX. for in Those over loan of year De continue opened million end. to years the of last growth novo offices contributed

XXXX as to both add existing targeted continue lenders to locations plans arise. Our new market as markets consider opportunities and are for leadership when well

decreased during a $XX a million balances with risk driven the by profile. exit with higher of Agricultural quarter the decrease, relationships

this institutions. self operations quarters We financing will other trend as continue to with and secure see upcoming liquidate in

loans with course impact overall higher the we priority a to than a loan as profile. will in improvement growth, of During of exiting categories risk asset loan however, growth. continue This work fiscal metrics will quality replacing higher overall the XXXX, on all we

As such, we range the would for single-digit low to mid expect XXXX. in loan growth to be fiscal

we million year-to-date million or Bank, X.X% offset $XXX deposit $XX year by to the quarter $XX to over as fiscal growth million customer This grew in increase and alternatives in saw treasury million Loan balances Federal or X.X% million and end. funding of outflows. during brokered an seasonal prior Home cost-effective consumer brings $XX fiscal of business Deposits $XX

also We interest during rates of deposits to loan to a targeted maintain quarter we'll basis deposit by interest seven and with the cost move points margin. bearing net declining the continue our saw our declined rates commensurate

will to take the asset through developments. Vice Michael? Gough turn Let's over President call of us Credit, now Senior Michael quality who

Thanks Doug.

being have in in with the million these $XX.X seen quarter, $X.X the quarter. down we credit more charges from modest June related XXXX million, prior quarter For the

relationships. the to smaller Net $X June million which Of remaining the charge-offs amount, number $X.X quarter. is significantly million this $XX.X relationships in with attributable across were $X.X was XXXX million the from spread million Ag of down quarter, non-Ag for a

have stable, by million Of number largely due of at of to million $XXX quarter that $XXX the was facility. remainder classifications, million which care a portfolio, with and the credits is of the small credits, to $XXX related dairy watch remaining $XX in and a million million the to health the this $XXX was Looking $X loans category substandard million. to declined through loans increased increase, our by largest

the momentarily. dairy along increase We off in will dairy the cover update watch credits with

ratios, fiscal asset key loans to points quality points and XX to net the charge-offs for quarter, basis September year. were for respect XX basis With the

total lease points. which loan as our accounting a XX losses credit and our and for points Our and loans credit long-term marks basis on is XX includes adjustments percentage basis portfolio of value allowance related purchased coverage, fair comprehensive is

now involved I'll for that over our on Officer, dairy the call review to portfolio also turn overseeing Chief who and loan Risk been our our Karlyn? comments oversees segment. Knieriem, has Karlyn function in

Michael. Thanks

complex of last quarterly have financials. received financials number of quarter, majority June based we on and call, most the largest March a Last Since we earnings the for saw December downgrades XX our all borrowers. and

and revenue and driven by cases are in cost control. operating increases financials, trends in these improving most apparent From

did interim exposure we credits continue totaling downgrade results. as $XXX quarter result in However, of million a improve to in the the prices quarter Milk a financial second signaling handful profitability. dairy of improved during

selective monitor de-risk We and this portfolio through for underwriting liquidations. guidelines opportunities to continue to

and exit will the will borrowers business. of Some some normal course through upgrade

Overall, we prices profitability quarter portfolio. with milk we on improved comfortable levels with feel provisioning in of this and are the current June current

turn that call closing With to remarks. the let's back Ken some for

Okay, thank you, Karlyn.

grown issues and a of the tangible in environment. with over strong we while base equity of I have return am portfolios, cattle on common overall well our in competitive We loan the had maintain a dairy on X.X%, to expense return assets portfolio managed some and we've year. XX.X% and a through have our work pleased

As the our for relationships which we XXXX. stretching this will the important Doug quality loan we than our asset during environment, some noted, substandard feel growth. of loan growth through in But working in portfolio, are more improving lower is

call the questions. up for open now will We

[Operator Instructions] And the from first come ahead, Jeff sir. question DA of Rulis go will Please Davidson.

the the it's - season credit book what with numbers late guess have guess through prices and I bottoming on the a for well. I come is on the A saw from kind it's side in updated some wet really just, and piece second and factor is in follow-up maybe yet, of due on a dairy you and walk hearing financials the - had seen up, farmers, little getting we that more think those as maybe quarter adjustment, guess and kind Question was Karlyn harvest prices weather - and Thanks. and planting adjustment we've interested part the a of that's dairy the XXX prices snow to first but part of I I so and is the then related a of the seems just you're then it recover,

Doug, ahead go and talk probably here. first green

me Jeff Yes, let let first. hit the me, harvest question

some progressed the footprint And cases. summer favorable crop were think cases. in I in we've planting of majority that or preventative in pockets generally had heat had a the have there vast that planning days throughout delayed our

at levels throughout Our geography. varying harvest commenced is the

with I preventative think plant. those generally speaking,

to of to prices, and and We track be operations year a to control. and analysis current consider We've improved do meeting to done some with pre-emptive budget still many yields on able a the done yield majority operations cash due plans continue they've be and cost an XXXX grain vast job see expectations. fiscal revenue flow on

So neutral on geography. positive to results based

Jeff. dairy head And then go on and Karlyn then the -

then more negative snow? One latencies some on and things the - heard follow-up impact weather-related any on I’ve

pretty next weeks melted of it absolutely off Dakota the that's it harvest forecast quick but It's good. production. already area, coming most pretty was - couple in really Yes, now - north probably right delayed the and snow full affect their some, and South part for didn't of look our that's trade

a from pretty standpoint would So majority weather moving was of no, delayed and harvest good. than say Iowa I other

years, think as to much couple see over they Iowa, the crops mentioned Yes very to results. good. Missouri progress think And Ken very And favorable harvest used over out I capacity quickly Nebraska pull operators quicker the weeks. the will next than the and of are are to I

Great.

the dairy then here. And

that, gone majority Yes, results negative coverage through the numbers came jump for in, Jeff, a quarters piece and on debt was in to also of service I'll the ratio couple trailing we then downgrades and number entire Karlyn on a to quarter that of the as XXXX, with reflected dairy QX done similar of prior here portfolio in. X.XX. maybe trended XXXX. start and a to as weighted average areas give We've Those first in they

coverage. The portfolio debt of X.XX for the quarter debt two hit average then service a that as XXXX coverage and is average was on return return a XXX we've

component milk higher, that the So lot indicated, the as sixteen's with fourteens pricing dairy which takes in from a which XX. has of price, to recovery up from trending XX it has especially the and to mid the to mid you benefit gone

be QX forward-looking the and to positive, QX what reflective saw we really seeing of results. in We're

thresholds. flow The and XX% guarantee other production under lock-in there produced is and positive breakeven piece then prices of program opportunities in operators have increased, this for the positive above the for is up that a and months at out above to of cash to number of that's because USDA is revenue excess XX

So are prices the prevent declines as well. milk in any alternatives to producing near-term price increasing options against

So loans take then, at million or $XXX deck as look represent problem problem we book. slide total that are a XX% of the loan the dairy portfolio and the about in

have have refinancing and that about we book that, that got that are we process about in As of XX% being We've self-liquidating. dissected upgraded. XX% of anticipate have that we are that XX% we about of

All of fiscal those quarters. to will take the next two three over

the anticipate we So time, them worked through happen later. that those majority of results will would some of some sooner by than are mid XXXX

so. Okay

Jeff, think prices speaking, mentioned you financial and favorable generally I results. milk terms, favorable as favorable

on full seeing no those obviously. we're - for just liquidated us that loss maybe Doug, already, have and And payoff

significant self-liquidations, nine no X in we months of states, at liquidate have to or of and been X several options for dairies them self and the very depositors. demand be Yes, there all herds. is And into quota cases six favorable in on those prices loss had several other come has turned the also in have and any there probably last

RBC Please question next Our Arfstrom of from will Capital Jon go ahead. come Markets.

that, touch maybe other as your but the know resolution term, wrong - category? that is drove expectations You well trends the of on terms for in kind I of what watchlist and

the Doug compare very other just non-dairy still credits the we our watch. segments very, other peers. the at the and covered We favorably. the the in segments The of credit metrics book compared watchlist really The - to increases look watch other trends, in dairy piece

think So single those. or don't I can point common factor to we large any among

think number get need I belt, justify quarters timeline think Doug's so I getting dairy on comments We a we on borrowers the agree prices. those. the migration just credits, just with better normal of other under of ratings to those our cannot with totally

not you're more So it's the systemic $XX I anything granular million signaled you there nature. that guess saying the is term? there's just

a I’ll in agree, of different it's really just industries. handful credits

and some to lot seen operations as The of to of have rates in adjusting match updated reduced any only reimbursement Medicaid is think and rates common cost a Medicare from threat on we've on reimbursement delivery varying out levels. going structures that challenging I process be are states. those Jon, come reimbursement healthcare And

to maybe or just Ken year if bit Michael look we attack like it on curious, seems XX down maybe you guess to months what do Gough, have a from the acceptable now, just goals, aggressive for what you? the And next and ahead credit. And the some in of kind I'm non-performers you little substandard be balances. of more fiscal have would working I

we we here. really said Jon, - published numbers Well, haven't of as those in comments quarter our but

debt of putting to that credits those dairy think good two self-liquidating and I in looking favorable third to now three contract either million of payoffs get most with able pricing. went is work down. chance milk and coverage in aggressively with - them from second will through pushing are and that the ratio the very We holding quarter mentioned those or or a the as now, there quarters XXX he of quarter out Doug or $XXX

We many would expect of those. upgrade

quarter it So, four few quarters. to they use We wipe we fourth portfolio right a over, quarter looks out ratio rolling it's year. the going a it this improving do but dairy to so rolling get of pretty average quarter those, a some a coverage on to going they now. really on where debt in But last to. of take until positive to especially have few take It's positive four quarters see

for up what are comment… the with working out they're comfort this the - and problem of beefing portfolio. milk and this getting that more aggressively to down. to I on - want forecast Mike, on price and would rest work doing area the you definitely Mike, of I part we're portfolio, those our the staffing say gets talk think lock-in And can on you

Ag adding that trying that, I think No resources general non-Ag very to some coming in. hear that a generalists we seeing of I any skill we to I'm in the - that credits unit workout set effective. will non-dairy in to bring just the are address or selectively some area be we're to

- portfolio identification the of the of to have were there process here of so. terms before In already we act in got in in place risk, I do put

top do portfolio not that ensuring is to as And anything further I'm just Ag we just but possible of if reviewing proactive whole the see as whole, just that dairy, those as there to be and can portfolio. a we're on the

as So, that's - we go will continue to try to tweak that forward. and we improve that

really And loan growth your then with slowdown credits activity just in the Ken kind the this a last of be here. of more growth slowdown. The markets that's - that terms or you're saying, just a you're It's rate may any in commentary you rate, some in material growth of as not seeing comfortable addressing the not rate? factor the follow-up of in really

dairy that's $XXX approximately refinance as million of elsewhere. Doug either over self liquidate a or there's going Jon little mentioned Absolutely, to

growth will for in this year. that's so headwind that us a rate affect for next And

question will Jaffray. Race Piper Please from ahead. next come of The go Nathan

expect potential curious content Doug on of curious, the and portfolio, but just what what can dairy that extent to you FSA just just a credits? have context loss guarantees within those some on we

FSA smaller, I the There are also less as loss are Doug. fluctuated minutes of operations without X guarantee have all those most are that the really more probably self-liquidated, mentioned not the those think fit the and financially I to definition. operations paid - I under were sitting because by viable They or of Nath, off efficient, us of the few Yes, don't X larger have already guarantees are ago, relative FSA dairies as they and programs impact. depositors today, all majority have many guess a

as just the run expense But your of And down just I to 'XX? could going Pete going for that. you guidance, back scribbling was through, kind expectations through you're FY

that to quarter, I early a this very quarter, $XX sort as to Group this in call $XX probably Trust Colorado run mentioned adds and the - range. of we mentioned coming of we've around million million range of bit so is that a we've quarter about on through and added one-offs XXX,XXX couple hires of spend, on $XX expenses, credit investment of top then know Kenneth sort got so Yes some and in in sure. a that, rate million the Increase $XX million million in as

I that present the And just sounds was just size issue like, then one it ask if the with healthcare during healthcare the credit could book. that of FY more other and any color in XQ? around on curious I

it's number on relative and Yes, one specifically book, portfolio overall I probably that could healthcare loan an the Doug, look, I of one? think comment quite that quality in outsized you the not to think more

cases to facilities to it that and really Yes, will of two and I the new they do. in models was happened time adjust we reduced rates think reimbursement states that We've are other downgraded we have takes process some results a period reimbursement cases, couple new. That's both reach three - delivery have to to until ago match states nothing through of isolated or that do saw a couple years what healthcare they anticipate to that models. and which start had back cost meet where and we the delivery traditional a in are levels couple, work cost working as

come Please McEvoy The from ahead. go Stephens. next of will question Terry

over if week. account NIM X rate could next the points you compression. to of just about X next question was potential a per I costs basis to talk cut Pete, additional wondering if into that lower you And a for you, quarter said deposit quarter? opportunities takes

it does Terry. Yes,

deposit of rate a to point for on the just just moment run gets where we some on down obviously a that, out that we our that - given those opportunity the consistent comfortable and higher was being on feel anticipating with we still we've a the feel little way beta you room got we do but as down. work are costs And cut up. probably We guidance way

run to ahead can once behavior happens continue a next right haven't to been just the hope that when only aggressive So off. also positive then have post over with pretty looking decreased see quarter, decreased had and at significant we we certainly the through this quarter expectations we mid with decrease come manage this quarter we we deposit and that we'll has raise not point, seen

little is feel go So to bit more we a there room there.

that And a comfort track on the prices seeing outsiders, incremental then And basis. just we provisioning on to you or managing as can a but just can Class monitor potentially the follow-up certain a we dairy your is level talked potentially not on wondering proactively sense really price charge-off where get farmers point just an know better milk I'm liquidity changes. portfolio, daily how is there III and portfolio. about trying in a CME I I'm expenses outsider as

milk this of ratio and quarter average is Yes, debt low-XXs the an in for Class coverage Doug for XXXX, was an X.XX. price service portfolio produced III our average Terry, second the

at that anywhere addition that's and price, the In are co-op the premiums a state blend $X think components take it low-XXs to think to a add the on and published $X of component QX fairly Class another and I in correlation. take above number it III to that, you look but up based from a XXX, if there good that formula

Bank Poonawala Lynch. from of America Ebrahim Merrill come of Please The ahead. next go question will

that you is of this catch flat anticipate in in start of higher of Just sounds the non-Ag Ag few the the about next on for expect year being this of do resolution watch should down proactive - that loans a kind little follow-up are issues you or do we over you the should like loans front outlook What played when given drifting watch number quarters. we coming should a book, all think where the to keep of in dairy over couple from appreciate one have terms a questions, here? numbers else we the identifying terms bit equal, up credit think

Ebrahim, this Doug. is

-- I number it's positive one very think quality. asset at is our we've that looked

Our below. geography or that of which think seeing we're everything problems industry come not metrics We're asset up. quality not I non-Ag at is concentration. seeing to seeing concentration peer, slightly And we're now,

up, signals off care, seen on strong or It's tells a challenge had we there the but couple which diversified come geographically about, impact they upcoming material health any today entire we think that's us the industry-wide, we've talked geography. aren't a a when I to don't over that problems

don't see changes on So everything know I we based today. material

on what basis right quarter. more couple to for And it next If so on than next margin for incremental the get about of deposit points, the way cuts, I would feed, sort get if the margin X up few we one X be guess could or rate think hit about side you following just up the is the to get that could the guidance to a we rate - it given pick be, what cuts more talked the quarters?

seeing the Look, - think but Ebrahim ahead. loan at margin more that Ebrahim, to additional we'd but pretty have put preserve so, in, what coming little see still we'll of hard, the we're we're help bit that moment Certainly hard we pressure to front that. far with going if can spreads on loan a just on doing as happens that on to pretty index it's front deposits look well. could over the to hope certainly I all keeps

remind in terms I capital And for Ken, last are buybacks may appreciate would if of if near-term M&A could entertain, any and in us the that just sort would opportunities deployment one any you update there that. you if bank on of question

be last as growth quite for earns do we to lot Yes. going we we share another lower authorized - with $XX us opportunity and the Yes, very money saw still We that. million, Ebrahim to yes about bank obviously, of did as capital. quarter, rates buybacks talked excess yes

excess the acquisitions type acquisitions be share would especially and if we happens, so deposit in So deposit we first are be over that next if some there looking, rich year. choice to definitely low on of that our buyback can some back that do as use happen, cost, rich always we capital, will doesn't - we if do, is the

question will from Sandler ahead. and Partners. Tim O'Brien next go The O'Neill come of Please

expenses. A operating quick for follow-up Pete on

million times one much the fourth total is how in million in in $XX well, you and to as So that the the are you fiscal quarter, given there factors one new times guys started that included start $XX indicated that the of year? expect seasonal

that's no Tim, one-offs run is No rate. that QX. in that calendar number, expect in be to real I'd There run rate mainly and

March So end kick for the quarter, our that's merits up. year when

see well, through So certainly we may modest that manageable a increase, a comes when as that's increase.

opening And novo of guys then that do with something doing year initiatives? some have year beyond the planning, fiscal new strategic maybe or any or the start on you Year, in branches rationalization this New thoughts the de

and questions Tim, staffing process Doug, in on take at for metrics. efficiency through a opportunities rationalization, improvement the of on to annualized look we your basis both that go on an and

have - basis. we to and on do yes, drawing offices, on a the we continue annual to couple new that that we'll Relative an So do board. have

on new existing for have been for location to as other couple looking have we efforts that well. We one are six to not on play ready in any a locations we're have announce working And in office. months that on that at staff us yet. states We're already nine about recruitment of specifically

ahead. next DelMonte The KBW. from go question come Please will Damon of

one. loans, growth. work impacting dairy - forward? little this the provision your kind of the us expense and think about How going overall for you loans problem Pete of off should help with towards bit and directed think probably other Could provision the we about outlook question Ag a related My

think live it's quarter. credit a past, related sort to Yes, we're $X of charges. a in around this million ran the Damon good million certainly, of I obviously question sort we've bit a But quarter the $X in

I starting think look think a point good provisioning. So about to that's

then more I And in squeeze should one here.

as go you look How around at the projecting income see we Just probably XX.X non-swap quarter. that on through you do million fiscal related out XXXX? this fee somewhere like you're impacts, if

a as the Yes acquisition. good average. on Trust a quarter. $X.X of of look, day I then think Colorado integrated this that's pretty I mentioned up that million We the as And about result a quarter first

So of Damon. full there the will no benefit quarter, was next current but benefit quarter, in see that you this

Lee come next Janet The question of will Please ahead. JPMorgan. from go

I question non-dairy portfolio. about want to Ag ask first

based So several peers during sector. the exposure stress Ag in broad in with of market your Ag quarter, to the put companies, some

to grain, tied like fruits that vegetables. adversely and talk impacting trade beef war of Some the and

are So this from anything you hearing issue? of your clients

Janet we it? your some half here just you heard about for question of - reason. repeat Can

Oh yes is sure, better? this

Yes.

So on non-dairy Ag is portfolio. my question

the with peers to - during market of your Ag several pointed some quarter, third broader companies, So in exposure broad-based portfolio. Ag stress the

of that you're impacting adversely war some if Wanted grain. was beef of talk vegetables, to see Some trade and hearing this tied your anything to and fruits issue from farmers?

here of couple that of actually we're that markets were production no. ago all Janet, report our months. this that favorable through Southwest is be A operations. of contracts We out very Doug. would saw - some vegetable Really a relative to the relative winter to it on happen the the non-dairy, very, just weeks will

of was grain, and XX budget grain Midwest front sort most of to prices or to on going again that very positive all the correlate are yields at relative projections. vegetable above So to,

the And out in to anticipate of October, and bonus side, do out there not harvest material been I And lot that starting receive which tariffs locked based any come been a and - flip coming added negatives have an have the been those think that payments on on operations. has expectations will have in. prices

quarter. on which bps bps helpful. And per to to your guidance clarify on X that's X of NIM just pointed your guidance, Right, NIM decline to a

mean XQ are move more average calendar is much the XQ it bigger XQ quarter funds be like rate, expected in the X likely - to guidance to October? beyond rate in Fed year apply Given decline of bps X the is in or to in XQ. that's terms after which bps versus I of those cut

We expect that rate this quarter. cut in

can guidance work deposit that, look just we'll is quarter. Janet. going how have subsequent competition at how that down quarters. that's to So the and we current for and After far in

has our concludes question-and-answer today's attending Thank now for conference This you concluded. presentation. The session.

You now disconnect. may