Good day and thank you for standing by. Welcome to the Emorant First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Laura Rossi, Investor Relations Officer at Amarin Bank.
Thank you. Please go ahead.
Thank you, Raquel. Good morning to everyone on the call and thank you for joining us to review Amarin Bancorp's Q1 2021 results. With me this morning are Jerry Plosch, Chief Executive Officer and Carlos Yaffiliola, Chief Financial Officer. Before we begin, note that the company's press release, comments made on today's call and responses to your questions contain forward looking statements. The company's business and operations are subject to a variety of risks and uncertainties, many of which are beyond its control.
And consequently, actual results may differ materially from those expressed or implied. Please refer to the cautionary notices regarding forward looking statements in the company's earnings release and presentation. For a more complete description of these and other possible risks, please refer to the company's annual report on Form 10 ks for the year ended December 31, 2020, and in our other filings with the SEC. You can access these filings on the SEC's website. Please note that Amarin has no obligation and makes no commitment to update or publicly release any revisions to forward looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations, except as required by law.
You should also note that the company's press release, earnings presentation and today's call include references to certain adjusted financial measures, also known as non GAAP Financial Measures. Please refer to Appendix 1 of the company's earnings presentation for a reconciliation of each non GAAP financial measure to its most comparable GAAP financial measure. I will now turn the call over to Jerry.
Thank you, Laura, and good morning and thank you for joining Amarin's Q1 2021 earnings call. I'm pleased to join you today as Amarin's new CEO. Before I begin, I'd like to take a moment to recognize my predecessor, Millard Wilson. Over the course of his more than 40 year tenure, Maher oversaw Amerint's growth from $6,000,000,000 in assets to $8,000,000,000 and the expansion from 15 branches to 25. He spearheaded the spin off and subsequent listing and among other things most recently navigated Amarin through the COVID pandemic.
A well deserved thank you to Milhar for his time and service to the company. On another note, I'd like to announce that starting next quarter, We're planning to release earnings on the 3rd Thursday of the following month. So the dates would be July 22, October 21 and January 20 We want to do this for several reasons, primarily to have more time each quarter, to be focused on completing initiatives and generating growth And to also have the window open for insiders an additional week each quarter. So today, I'll be providing details about a number of new We will share more detail about each one as these are essential for improving Evorint's performance and growth Achieving the growth objectives that we have. But first, I'd like to briefly talk about our performance in the Q1 and then Carlos will provide some more details.
So if you turn to Slide 3, you'll see our Q1 highlights. We're pleased to report improved results in the Q1 compared to the prior quarter. Our net income was up 70.7 percent quarter over quarter, primarily driven by higher non interest income and lower expenses. In addition, there was no provision expense in the quarter and the NIM improved slightly to 2.66%, driven primarily from lower average deposit costs. We also show our progress on Class B share repurchases since we announced the buyback program on March 10.
Our total loans were $5,800,000,000 and total deposits were $5,700,000,000 They were both down slightly in the quarter. The decrease in loans was driven by higher prepayments, including $111,000,000 in PPP loans, while the decrease in deposits was due to lower So moving on to the next slide, you'll see several key performance metrics, which show improvement on all fronts this quarter, reflective of higher operating profitability, all while maintaining a robust capital position and solid credit coverage. These are just the first steps in the right direction. So while we know we have much more to do, it's good to be showing progress this quarter. And as I will get into later on the call, we'll outline a number of initiatives underway that are focused on driving continued improvement in operating results.
So with that said, turn the call over to Carlos to walk through our results for the quarter in more detail.
Thank you, Jerry, and thank you everyone for joining us today. Turning to Slide 5, I'll begin by discussing our investment portfolio. Our Q1 investment securities balance was $1,300,000,000 Unchanged from the previous quarter and down from the $1,700,000,000 in the Q1 of 2020. For this quarter, we continue our strategy to Investment portfolio from prepayment risk. Floating portion represents only 14% and recomposition towards high duration The natural extension of the mortgage portfolio has increased the overall duration for the end of the Q1 to 3.4 years.
Moving on to Slide 6, we would like to provide an overview of our loan portfolio. At the end of the Q1, total loans were $5,800,000,000 Slightly down by $88,000,000 compared to the end of the 4th quarter. The decline was primarily driven The prepayments across our commercial loan portfolio inclusive those from PPP loans coupled with challenged loan production We remain committed to our communities by originating over $80,000,000 in PPP loans during the Q1. Additionally, we received 111 Median in principle forgiven by the SBA. After all this, we have $165,000,000 left outstanding on PPP loans as of the end of the Q1.
Before I move on, I wanted to talk about some positive signals we see in our loan portfolio this quarter. We continue to see Strong performance across our owner occupied and consumer loan portfolios, specifically consumer loans increased approximately $32,000,000 quarter over quarter, Primarily driven by our participation in indirect lending, we expect to continue purchasing this high yield indirect loans in efforts to mitigate NIM pressures in the future Turning to Slide 7, I would like to provide some more details on Amarin's credit risk. In the Q1, we maintained a strong credit risk coverage. The ratio of allowance for loan losses to total loans was 1.83% Higher than previous quarter, the absence of loan loss provision expenses for this quarter was driven by lower loan production during the quarter. Non performing assets ended at $90,000,000 which represented an increase of $1,800,000 quarter over quarter and a $57,000,000 compared to a year ago.
Non performing assets to total assets increased to 1.16 percent, up 3 basis points from the prior quarter and 75 basis points versus a year ago. This increase was due to the downgrades across our commercial and CRE portfolios. As a highlight, only 1.1% of our loan portfolio remained under deferral or forbearance in the Q1, down from the almost 20% in the same period last year. Almost the entirety of this portfolio It's backed by real estate collateral. All of the loans out of forbearance have resumed regular payments.
I would like to mention That we no longer have any hotels under forbearance and we have seen a health increase in the occupancy of the properties in that portfolio, which is a great improvement versus 2020. Our team remains focused on proactively managing the status of our loans to ensure some credit quality and strong reserve coverage. Moving to Slide 8, total deposits were $5,700,000,000 down 0.9% quarter over quarter and down 2.8% year over year. The quarter over quarter decrease was primarily driven by a $159,000,000 combined reduction in customer CDs and broker deposits, Partially offset by an increase of $188,000,000 in customer transactional accounts, the decline in Evarent's customer CD Was due to our continued efforts to aggressively lower CD rates as we focus on increasing lower cost deposits and multi product relationships. As a result, our cost of interest bearing deposits was down 10 basis points in the Q1 compared to the previous one.
As of March 31, PPP related deposits reached $173,000,000 compared to $95,000,000 as of the end of the previous quarter. Foreign deposits decreased $26,000,000 compared to the prior quarter, representing an annualized decay of 4% Compared to the 6% we had on the quarter ago. We are really encouraged to see a slowdown in foreign deposit decay given the contribution This deposit provides to our cost of funds. Foreign deposits, cost of funds is 0.16% versus domestic at 0.95%. Having said this, international customers continue to use their savings to fund their day to day expenses.
We continue our efforts to engage and Cross sell with customers and strengthen relationships with our international deposits and gain a bigger share of wallet. Turning to Slide 9, the Q1 2021 net interest income was $48,000,000 down 2% from the Q4 of 2020 3% year over year. The decrease in net interest income compared to the 4th quarter was primarily due to two factors. 1st, lower loan volumes as a result of a continuous lower than normal loan production and customer prepayments 2nd, Due to lower average balances on interest securities primarily due to prepayments, these factors in the quarter were partially offset by lower overall deposit costs And average balances on customer CD. With regards to the margin, 1st quarter NIM was 2.66 percent, up 5 basic points quarter over quarter, Primarily due to lower cost of funds and customer CD balances and essentially flat year over year.
Actions to elevate Pressures on margin, including repricing of customer time deposits and relationship only markets, implementing flow rates to our new loan production and repricing, Seeking additional interest earning opportunities in high yield lending programs. Moving to Slide 10, Non interest income in the Q1 was $14,000,000 up 23% quarter over quarter and down 35% year over year. Over the quarter, the increase in non interest income was primarily due to the absence of a loss on the sale of our operations center. Beyond this, a $2,600,000 total net gain securities and increased fees from brokerage and advisory activities also contributed to our higher Non interest income this quarter. As an offset to this increase, we didn't have fees related to the main street lending program And had lowered derivative income and wire transfer fees.
Amerant's asset owner management reached $2,000,000,000 as of the end of March, Up 2% year over year and up 28% year over year. Net new assets contributed by approximately €89,000,000 year over year as our teams continue to deepen share of wallet and attract new relationships. Turning to Slide 11, 1st quarter non interest expenses was $44,000,000 down 60% Quarter over quarter and down 3% year over year. The drivers of the quarter over quarter and the year over year decreases in non interest expenses We're largely the same. This is primarily driven by the separation plans implemented in the last quarter, which lowered salary and benefit expenses as well as the absence of severance expenses in connection with these plans.
Other contributing factors included lower one time expenses following the closure of 2 branches. Since the implementation of these severance plans, we have reduced our staff by 76 FTEs or 9%. However, We saw an increase in FTEs in the Q1 driven by a number of strategic hirings primarily in the front line personnel. Of note, we have resumed normal levels of bonus compensation and adopted new long term equity incentive compensation program. As more to 2021, the Amarin team continues to look for opportunities to create efficiencies and improve our cost structure.
Moving to the next slide. Our business continues to be asset sensitive. As of the end of March, over half of our loan portfolio either Look, has floating rate structures or mature within the year. To manage this sensitive and mitigating pattern on our margins, we continue to actively manage our loan investment portfolio. This includes implementation of flow rates on our loans and capitalizing on higher yielding securities and longer duration.
With this, I will turn back to Jerry.
Thank you, Carlos. I'd like to address how we are positioning Amarin for immediate and long term success and walk through some of the specific initiatives we are focusing on. As you can see on Slide 13, There are a handful of initiatives that serve as the foundation for our long term growth strategy. Our goal is simple, improve our performance and drive So first, it's clear to me from experience and from pure comparisons that Emorett needs to become and will become a deposits first focused bank. Core deposits are the lifeblood of a strong banking franchise and growing core deposits is critical to our near and long term success and profitability.
We have opportunities in the markets we serve to increase our share in Consumer and Small Business and Commercial to achieve a lower cost of funds, Reduce the reliance on brokered funds and other high cost sources. We've identified a number of ways to better target and attract these core deposits, Including implementing and enhancing a digital onboarding platform, the build out of our treasury management sales force And adding additional treasury management capabilities, focusing our marketing to drive additional digital and in branch traffic And gathering other sources of deposits such as municipal accounts and private banking. So with these efforts, we're targeting a reduced reliance on broker deposits So the target is not to exceed 5% of total deposits and increasing our core deposits to make up over 20% of total deposits Within the next 6 quarters. But please know our goal will be to exceed that target and keep going. Additionally, we're focused on achieving a target loan to deposit ratio 95%, all of which means to achieve these targets, we will all be very focused on gathering core deposit accounts.
We are also going to accelerate our digital transformation. Over the past several quarters, we've ramped up our digital efforts with the rollout of Ncino and Salesforce across the organization and with the introduction of Amarin Investments Mobile. We've been focusing on evaluating digital solutions in a number of areas, So including deposit account acquisition, small business lending and wealth management, and we expect to be able to update everyone on our progress with these soon. Another area of immediate focus is dramatically improving Amarin's brand awareness. So in the communities we serve, building brand awareness is key for both growing our presence in these markets as well as laying a strong foundation for future expansion.
We have a number of efforts currently underway that we will continue to pursue in the coming quarters to grow the awareness of the Amerint brand From improved signage and promotions to evaluating affinity relationships and greater community involvement. Much of this can happen from us Just being outward focused and proactive as well. I consider us South Florida's best kept secret and we need to break through that. Additionally, we are diligently looking at rationalizing our lines of business and geographies. We plan to expand our treasury management, Wealth Management, Private Banking and Specialty Finance capabilities in order to grow the bank's revenue streams and fee opportunities.
At the same time, we are curtailing future originations in New York City. Our New York City location is a commercial real estate loan production office With minimal deposit relationships and as we evaluate our alternatives there, we will be focusing on growing in our core markets. We intend to look for opportunities to grow in the contiguous markets as well. Please note that over half the New York portfolio will pay off in the next 12 to 18 months, and we believe there are solid opportunities to replace that. So more to come as we evaluate our next steps there.
We are also evaluating new ways to drive cost efficiencies across the business as part of our margin improvement plan. We've set a target goal to improve our efficiency ratio to 60% within the next 6 quarters. This will require looking at everything Pricing, balance sheet composition and of course what we are spending and why, there is ample opportunity for us to improve in a number of areas. We also intend to optimize our capital structure and to look for ways to lower Evarent's cost of capital. The recent tender offer and now the Class B share buyback program authorized in Q1 that's currently underway are just first steps in continuously evaluating How much capital do we need and what are the ways in which we can support our valuation?
We need to be constantly exploring and evaluating new ways to optimize the structure And we intend to explore that as well. Finally, a quick comment regarding ESG and corporate responsibility. Many companies are now just facing the reality that ESG is becoming a business imperative. Major institutional investors, the SEC and communities we serve, as well as existing and potential customers and vendors are all looking to see what steps banks like us are taking. Please note, we're in the very early stages of developing our program, but I am confident doing so will differentiate us from our competitors And drive business our way.
More to come as we complete our evaluation and determine what steps we will actually take. So in conclusion, as all of you know, I joined the team here on February 15 and became CEO when we filed our 10 ks on March 19. So in the 70 or so days since coming on board, I think it's clear that we have much work underway. There isn't anything we won't consider to make banking with us easier And to drive better results for our shareholders. So whether it's pricing, restructuring, adding complementary lines of business or products, Staffing levels, facilities, tech, process improvement, among others, we are going to explore every to drive better performance and returns for our shareholders, while providing great customer service and a great experience And also being well known and community oriented.
We're very committed to increased transparency and we look forward to providing you with more detail And I promise we'll be sharing more detail on upcoming calls. So Raquel, with that, would you please open the line? We'd be happy to take questions.
Our first question comes from the line of Michael Rose with Raymond James.
Good morning, everyone. Thanks for taking my questions.
Hi, Michael.
Jerry? Hey,
how are you? So maybe we could start with just A little bit more on the specifics of maybe what you plan to do on the expense side. So Obviously, there's been a few voluntary and involuntary retirement programs. You talked about adding some FTEs This quarter, would you expect to be able to fund some of the investments that you're going to need to be able to grow the revenue piece of the business with Further trimming and expense cuts. Just trying to get a sense for basically if this expense level that we saw in the Q1, which had some benefits from those voluntary and involuntary retirement programs.
Should we expect that to remain relatively stable as some of those investments Funds are funded by additional attrition and cost cuts in other areas. Thanks.
Yes. Look, I think great question. The timing on that is going to really be probably the bigger issue, which you could see and I would say Carlos will give more Our expenses, as he referenced, will go up in the Q2 just from Adding the adds to staff that we made, plus we're bringing more folks on at Amarin Mortgage as well. And as I referenced in my remarks, We're looking for additional treasury sales folks. We also are looking for additions In the wealth area, one thing we will be doing, anyone who's customer facing that can add profitable growth to our organization, We are going to evaluate those additions along the way.
Now how do we pay for it? That's absolutely one of the things That we will do is looking at each and every area again from a span and layer perspective, from how many of those functions We think we need to continue to do the way we are today and really making sure that we rationalize the number of folks in every given area. That's not an issue as it relates to what we're going to do another executive retirement plan. But what it is, is that we're looking to make sure that we get as many people on a customer facing revenue producing as possible. And so we'll look at every single expense line as ways to offset that.
Okay. That's really helpful. And then just on the balance sheet, heard the commentary about bringing the loan to deposit ratio down to Kind of the mid-90s. As I look at the securities portfolio, we've seen many other banks begin to grow that. Your duration is around 3.5 years.
With the expectation as you grow the deposit base from here would be to increase the size of the investment portfolio, maybe take some of that Rate sensitivity off the table, just given a lower for longer environment, assuming that's what's going to be in the card. Just trying to get a sense for Kind of the size of the balance sheet as we move forward and what you could do on the security side? Thanks.
Yes. I'm going to say that 1st and foremost, while I said we're a deposits first organization, we certainly are going to be equally focused continuing to generate loans. And again, as I mentioned, not only in our footprint. And I think a lot of it is what I've said On the call is brand awareness. We've got really good people here.
I think we just need to provide more support Around them and so I think raising the awareness that we're out, we're going to be active. I would say in the time that I've been here, we've seen some Great interest in people wanting to do business with us. And so I would expect that we should see some good loan growth. So, and frankly, not just in commercial real estate, but in C and I and on the business side. So, I think there That's something I think you should take into account.
Regarding the size of the securities portfolio, I would say just generally speaking, I think the securities portfolio is a terrific way for obviously for managing rate risk. It's an asset liability tool. But what we get paid for is organic loan growth and organic deposit growth. And you supplement that with certain areas Specifically or not at this stage, I think it's fairly sizable, to be candid. And I think if anything, you look at us Continuously looking at ways to restructure that portfolio.
We did a little bit of an optimization in the Q1 that resulted in a gain. We're continuing to Have conversations about ways to further optimize the portfolio positioning wise.
Yes. It should be to complement. It should be fairly stable. As we gather more deposits, there should be a way to potentially increase a little bit. But in the long term, It's pretty sizable for the size of the balance sheet.
So in the long term, it should be
dropping. Okay, very helpful. And maybe finally for me, just on the credit front, You guys have a really stat reserve. I think I calculate almost 2% ex PPP loans at the end of the quarter. No provision 2 quarters a row.
Any reason to think based on kind of line of sight and what you see? Would you expect to have really any material provisions as we kind of move over the next couple of quarters? It doesn't seem like you would just given that reserve coverage and Where are you staying today? Thanks.
Yes. I think, great question. Clearly, it's going to depend on loan production And the composition of the loan production as to what we'll need to either add To the allowance or as we see opportunities to free up parts of the allowance over the next several quarters, it will get offset by The production that we intend to put on the books. So in terms of large provisioning, I would say that, again, we feel Really confident with the level of the allowance where it is right now. And I do think that over the next several quarters, you'll either see some level of significant growth eating up any excess That we have or of course if it's not there, that's going to be a problem.
But I'm looking at my Head of Business Development on that one, by the way, just for the benefit of the group. But I would tell you that really I think it will get sopped up, so to speak, By growth as opposed to any type of release, I think it will be but there will be Opportunities for us to basically say there's a swap between why we need a reserve On certain parts of the portfolio and that can get freed up and offset against the growth we expect in coming quarters. Michael, I
was important to mention that we keep out of the total reserve about $10,000,000 that is related to COVID that we created And the institutional side of the loan loss provision. So taking into account Jairus' comments, so that should be helpful for Any potential growth, it could be reallocated to potential growth and so on.
Very helpful. I appreciate you taking all my questions. Sure.
Our next question comes from the line of Brady Gailey with KBW.
Hey, thanks. Good morning, guys.
Hey, Brady. Good morning. How are you doing?
Good. So I wanted to start with the 60% efficiency ratio goal. I mean bigger picture, There's 2 ways to get there. You can cut expenses or you can grow revenue. I'm sure you'll be looking at those.
But is there one Side of that equation that you think is the real opportunity to get that efficiency ratio down?
Yes. Thanks for the question, Brady. Yes. I think that we've got opportunity to expand both the NIM and then also on the fee side, Right. So as you start to think about us on a go forward basis, the launch of the mortgage venture that we have at Evorint Mortgage, That will start producing for us in really producing for full quarter Q3, Q4.
And I would expect that all the deposit initiatives that we're undertaking will also be able to help, right, as it relates Widening out that net interest margin. I'd also expect that the growth on the top side in the portfolio would be helpful. But there's no avoiding that you have to optimize your expense structure and we have to have real justification from a return on investment standpoint of where every dollar is being spent. But I would share that we're looking to optimize So that we have more dollars to put back into production, right? I mean, so I think it's important to note on one hand, we're going to do A lot of cost rationalization.
On the other hand, we are going to be looking to put more dollars to work to drive more revenue. So as I said, we're going to turn over every rock. We're looking at absolutely everything. It's all on the table. And we'll give you guys more clarity on that, obviously, in the quarters to come.
All right. And then I think we all understand your plan for New York, but I wanted to ask about the Houston market. I mean, that's also a market that It's obviously not core Florida. So any thoughts on your presence in Houston, Texas?
Look, I think the big difference is that Texas is a deposit gathering franchise for us. We actually see opportunities there. Yes, it's highly competitive. But I would tell you that right now what we're more focused on It is the opportunities that we just said to redeploy resources And focus on the core market here. We think there's enormous opportunity.
So I would consider that sort of our first step. But please know we do see that in the Houston marketplace that there is a lot of opportunity to expand Both on the deposit and loan side, and we're actually evaluating opportunities there even to expand more on the wealth side.
To complement your answer, Jerry, important to mention that Texas is not by any means New York is a more balanced vehicle or jurisdiction with almost $1,000,000,000 In the loan portfolio and $600,000,000 on the depository side. So it's more balanced.
All right. And then you might not want to answer this next question yet, Jerry. But when you look at the profitability of Amarin Outside of last year with COVID where things were all over the place. But Amarin had been running kind of a 65 to 70 basis point ROA. You have a lot of initiatives here, which is great to hear about.
But any idea longer term, What you think the profitability profile could look like at Ameren in terms of ROA or ROE or however you want to look at it?
Yes, I would respond by saying we need to be at 1% or greater on ROA and 10% or greater on ROE. Our objective is to be a top performer. We have To build that brick by brick, so to speak, but I clearly am focused on getting to those Type of numbers with this organization and I think with the team that we have here, we can achieve that.
Okay, great. Well, hey, thanks for all this color, Jerry. It's great to hear about your plan here. Thank you.
Thank you. We appreciate the questions.
Your next question comes from the line of Stephen Scouten with Piper Sandler.
Hey, good morning, everyone.
Hey, Stephen.
Good morning.
I'm curious I'm well, thanks. I'm curious how you're thinking about loan growth maybe over the next 12 to 18 months, if you talked about That New York City book repricing or maturing over that same duration of time. And kind of if you could Remind us what the size of that loan book in New York City is today. I think the case, it was about 24% of CRE loans. So just trying to think about the size of potential runoff there.
Yes, it's a $730,000,000 or so pre book with about $35,000,000 in associated In terms of as you start to think about what we said was 12 months to 18 months, we'd expect half the portfolio To mature, well, that's the stated maturities. So, and obviously, there's lots of competition if people come and solicit And so some of those customers, which I'm sure will happen. Our view is that in our markets And also we see opportunity in Houston for continued growth. I have to say that Here if we add if we continue to add the type of revenue producers we're currently chatting with, I think we'll be in great shape To be easily replacing that loan for any runoff that happens out of New York.
Okay, great. And maybe thinking about the consumer loan growth briefly, I think you guys have said maybe 10% would be the long term max there. But can you Remind us if there were any new relationships. I know it was primarily SoFi, but did you think you were close to adding another relationship there and then maybe the average Yield on that new production as well?
On that end, Stephen, how's it going? It has been for the most part SoFi. We have roughly $200,000,000 in that portfolio. Contractual, it's close to the 10% yield more or less. Effective, it tends to be closer to the 7.5% more or less.
And at this point, We are evaluating potentially other sources, but this has been the strongest one so far. So it's so high for
the most
part. Good. And maybe along with that, so those yields coming on at And what's kind of do you have anything that's near like a blended yield for your total production and where that's been coming on at relative to your average yields?
So since this one is not the biggest portion of the production, The blended rate for the new S. This coming between the 3.5% to 4.25% more or less on a marginal basis. Great,
great. Okay. And then maybe just last thing for me. You talked Jerry, you talked about optimizing capital. What does that, I guess, Look like for you in the near term, I mean is there a target capital ratio?
I know you talked about composition as well and lowering the cost of capital, but just wondering if you could give some more color on what That could potentially look like here in the next, I don't know, 6 to 12 months?
Yes. Stephen, I think We're obviously planning to execute on as much as we can in that buyback program. But as we grow and also as we evaluate the best places, we'll continue to look at Does it make sense for even continued buybacks or replacement in the structure with what we'll call lower cost Capital sources, obviously market conditions right now are excellent. We're seeing pricing that Yes, we thought the pricing last year was good. Clearly, we think as we continue to show improvement In terms of profitability that we too will be able to look and take advantage of some of these lower cost sources That others are getting to you're seeing the announcements on a daily basis right now.
So that would be what we'd like To try and do it. Okay.
Great. Great. Well, thanks for the color everyone and congrats on the initiatives and the progress you've made.
Thank you. Appreciate it.
There are no further questions. Mr. Plesch, the floor is yours for any closing remarks.
Thank you, Raquel. I just want to say thank you to everyone for joining our Q1 earnings conference call. We're really excited about the future here at Emorant, and we look forward to updating you on our progress toward becoming a higher performing bank. Hope everyone has a great day. Take care.
Thank you, ladies and gentlemen. This concludes today's conference call. Thank you for participating. You may now disconnect.