Earnings Call: Q1 2021

Apr 29, 2021

Good morning, everyone, and welcome to the Horizon Bancorp Conference Call to discuss final financial results for the 3 months ended March 31, 2021. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Questions. If you have further questions, you may reenter the question queue. Please note this event is being recorded. Before turning the call over to management, please remember that today's call may contain statements that are forward looking in nature. These statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those discussed, including those factors noted in the slide presentation. Additional information about factors that could cause actual results to differ materially is contained in Horizon's current 10 ks and later filings. In addition, management may refer to certain non GAAP financial measures that are intended to help investors understand Horizon's business. Reconciliations for these measures are contained in the presentation. The company assumes no obligation to update any forward looking statements made during the call. If anyone does not already have a copy of the press release and supplemental presentation issued by Horizon yesterday, you can access it at the company's website, www.horizonbank.com. Representing Horizon today are Chairman and Chief Executive Officer, Craig Dwight and Executive Vice President and Chief Financial Officer, Mark Secor. They will be joined by Executive Vice President and Chief Commercial Banking Officer, Dennis Kuhn, for the question and answer session. At this time, I would like to turn the call over to Horizon's Chairman and CEO, Craig DeWise. Thank you, Debbie, and good morning. Thank you for participating in Horizon Bancorp's Q1's earnings conference call. Our comments today will follow the investor presentation we published yesterday, April 28. Starting on Slide 4, company highlights. Horizon completed the Q1 with over $6,000,000,000 in total assets, strong profitability as evidenced by return on average assets of 1.4% and return on average equity of 11.8%. Key drivers for the quarter were good expense control, modest provision expense, further reductions in deposit costs and continued improvements in key asset quality metrics. Given the size of our balance sheet, highly efficient operations and talented workforce, we believe Horizon is well positioned to capitalize on significant organic and strategic growth opportunities within our attractive Midwestern markets. As you see on Slide 6, we've completed 12 new organic market expansions and 14 mergers and acquisitions during this time period. We are a company on the move, and we continue to look for new opportunities in our current and adjacent Indiana and Michigan markets. With our proven track record as a successful consolidator and the pressures that other banks are facing related to succession planning, low interest rates and the challenging operating environment, we are seeing the pickup in merger and acquisition discussions. Slide 7 clearly demonstrates Horizon's track record for achieving our well established long term goals. They include meaningfully outpacing GDP and industry growth and achieving balanced growth of approximately 50% organic and 50% through mergers and acquisitions. In 2020, Horizon grew the balance sheet by 8% excluding PPP loans. As we've shared with you since last fall, our expectations for the full year 2021 is that total assets will remain relatively stable compared to the prior year, with significant opportunities for merger and acquisitions and organic growth starting in late 2021 and continuing through 2022 as the economy continues to recover. On Slide 8, we remind you that Horizon's expansion and growth has occurred primarily in colleges and university towns and state or county government seats. Therefore, a majority of our footprint has an economic base that is traditionally more stable than other areas of Indiana and Michigan. Coming off a record year of residential lending, we are very pleased with mortgage activity and fee income in what has historically been our seasonally lightest volume during the Q1. In addition, our commercial pipeline of approved and unfunded loans and lines of credit, coupled with the disposition of the businesses and communities we are serving and growing Indiana and Michigan markets, leads us to anticipate improving demand from customer investments in planning equipment, logistics and distribution, infrastructure and other financing needs in a recovering economy. Horizon's footprint is also positioned to well take advantage of the outbound migration from Illinois, which continues to increase as consumers and businesses exit dense living space, high taxes and high cost of living. Both Indiana and Michigan continue to show improving economies as evidenced by reductions in unemployment rates. As of March, Indiana's unemployment rate of 3.9% was well below the nationwide rate of unemployment of 6%, while Michigan's overall unemployment rate was 5.2%, a considerable decrease from December 31st rate of 6.7%. Many of the regions we serve in the Western and Central parts of the state of Michigan are reporting even lower levels, including 4.3% in Ann Arbor, 4.7% in Grand Rapids and 5% in Lansing, all well below the U. S. National unemployment rate for the same time period. Horizon's diverse footprint helps to geographically disperse credit risk with 61% of our loans in Indiana and 39% in Michigan. Slide 9 highlights the primary markets where we are engaged and some exciting economic events taking place, which we believe will give and improve Horizon's opportunities for growth. Moving on to digital transformation. Horizon's average monthly transactions have shifted away from branches to our digital and virtual channels. As of last month, 74% of all transactions took place through our digital channels compared to 57% in 2019. And in March 2021, 77% of all checking accounts were active online banking users, an increase from 68% at year end. Since we reopened our lobbies for walk in traffic in the Q1, the digital transaction counts have remained stable. As a result of our investments made in technology over the prior years, Horizon was well prepared for this increase in digital banking activity. Now for the financial update, let me turn it over to our Chief Executive Officer our Chief Financial Officer and Executive Vice President, Mark Secor. Mark? Thank you, Craig. Horizon's Q1 results demonstrated our ability to realize strong operating results and earnings, positioning us for opportunities that we might see become available in the recovering economy. Starting with Slide 12, the company's strong Q1 results were supported by stable core earnings. Several activities during the Q1 impacted these results. Compared to the Q4 of 2020, we recorded lower PPP income from fewer loans forgiven, lower purchase accounting income and a reduction in average loans primarily attributed to the mortgage warehouse lending. Non interest income reflected record 1st quarter mortgage gain on sale income, which nonetheless declined from the historic levels recorded at the end of 2020. 1st quarter results benefited from lower credit expense due to continued strong credit performance and low charge offs. We continue to believe we are appropriately reserved given the current state of our portfolio, the recovering economy, additional government stimulus and our CECL modeling. Slide 13. The 27 basis point decrease in the adjusted margin during the quarter was positively impacted by 10 basis points from the PPP income as the net deferred fees were recognized for loan forgiveness. This compares to the positive impact of 18 basis points in the 4th quarter. In addition, excess liquidity compressed the margin an additional 16 basis points compared to 7 basis points in the 4th quarter. We also saw lower rates on the investment portfolio as well as more competitive loan pricing. This was expected and will continue to negatively impact the margin as we focus on maximizing net interest income with the liquidity we continue to see increasing by continuing to invest the excess funding while creating adequate cash flows for future loan demand and reinvestment. Moving on to Slide 14. In the Q1, the loan yield was positively impacted from PPP loan fees recognized during the quarter, adding 6 basis points to the yield compared to a positive 15 basis points in the 4th quarter. Lower purchase accounting income recognized and lower loan fee income in the Q1 compared to the 4th also negatively impacted the loan yield. The change in the mix of loans with the decrease in mortgage warehouse lending and the pricing pressures also contributed to lower loan yields. As loans continue to reprice and new product is originated at lower rates, additional downward pressure on asset yield is expected, resulting in additional margin pressure during 2021 as the opportunities to lower funding costs are realized. Slide 15. Margin compression was tempered by our continued improvement in funding costs, which reflect Horizon's valuable core deposit franchise. The CD portfolio's 12 basis point decrease in pricing reduced total funding costs as high cost term deposits matured during the quarter. Dollars 359,000,000 of CDs with an average cost of 90 basis points will mature during 2021 and continue to reduce our cost of funds. We are also strategically pricing deposits to manage liquidity instant inflows from transactional or transit sources. This, of course, is balanced against our commitment to stand by our long standing customer relationships and high potential new opportunities in our growth markets in Indiana and Michigan. The 2% growth in non interest bearing deposits and 1 basis point drop in interest bearing deposit costs also contributed lower funding costs in the Q1. Slide 16. Mortgage revenue from the gain on sale and mortgage related income continued to support non interest income as we also started to see some recovery of non cash impairment charges in the quarter. The continued high level of mortgage production and strong percentage gains are the primary contributors to our non interest income for the Q1. Based on local and national refinancing activity, we expect strong top line contributions to continue from the mortgage business in 2021, though not at the historic levels we saw last year. Slide 17. During the Q1, we saw operating expenses decrease from the 4th quarter as salary and benefits costs reflected more normalized accrual for performance based compensation. As you may recall, in the 1st and second quarters of 2020, we recorded nominal bonus accruals given uncertainty at the outset of the pandemic. Ultimately, we rebounded with record results for the year, the bonus accruals catching up in the Q4. For 2021, we expect performance based compensation expense to be more evenly distributed throughout the year. We continue to review branch rationalization as customer habits have changed as more digital channels are being used. Any action that might be planned is being reviewed along with all other potential opportunities the company may have to ensure we properly manage the capacity of our teams for successful execution. Looking ahead, we intend to continue our record of maximizing the efficiency and scalability of our retail franchise, while further leveraging the investments we have already made in digital, mobile and remote banking as well as our call centers. Slide 18. With stable credit losses and improving economic trends, a $159,000 reserve build in the Q1 was primarily driven by allocations for sectors of loans with potentially higher risk due to loss to the nature and characteristics of these portfolios. The percentage of allowance to total loans was 1.56 percent at March 31 or 1.67% when you exclude PPP loans, a balance of $11,300,000 remains for discounts on acquired loans. Overall, we are very pleased with our financial performance for the Q1 in this environment. We believe we are well positioned from a credit, liquidity and capital perspective and look forward to refining our operating model to further improve our results in the quarters ahead. With some additional comments on the loan portfolios, I'm going to turn it back over to Craig. Thank you, Mark. Looking at the chart on Slide 20. Horizon's $3,700,000,000 in total loans are well diversified with 59% in commercial and 40.1% in residential mortgage and consumer loans. At Horizon, we like this loan mix, and it diversifies our credit risk and provides advantages to managing our net interest margin. The table on the right provides the granularity within our commercial loan portfolio, which itself is well diversified. Our single largest sector is in residential multifamily housing loans at 6% of total loans, and this segment continues to perform well. Other key points to Horizon's risk profile. Horizon manages capital at risk by maintaining an in house lending limit at $30,000,000 which is well below our legal lending limit of approximately 80,000,000 dollars Our granularity is further enhanced by the fact that Horizon's average commercial loan is less than $400,000 excluding PPP loans. As of March 31, Horizon's loan deferrals continued to decline to 2.5% of total loans, primarily in our commercial loan portfolio. Total consumer and mortgage loan deferrals remain low at less than 1% of total loans. The number of commercial loans on payment deferral as of March 31st totaled only 36, down from year end to a total of 55. Horizon's commercial lending team has been diligent in meeting with our business customers to update their financial plans and to place the loans back on a regularly scheduled payment. The commercial loans and deferral, 93% of the dollars are making interest only payments and only 3 loans or 7% of the total modified loans are making principal and or deferred principal interest. The 3 principal interest deferrals include 2 hotels with the same sponsor and 1 restaurant. The 2 hotels are in various stages of construction or remodeling with strong sponsors, and we expect they will resume full payments during the Q2. The restaurant loan is with a strong liquid sponsor and is expected to resume full payments in the Q2. Horizon is a traditional regional bank offering a standard line for commercial loan products through an experience and seasoned team of lenders and credit administration staff. We have a history and culture of prudent commercial loan underwriting. We are primarily an end market lender, require recourse on most of our loans from the principal business owners. In addition, commercial loan asset quality metrics continue to be favorable at quarter end. Non performing commercial loans declined to 59 basis points in total commercial loans, down from 65 basis points at year end. Commercial loan delinquency at year end of Q1 continued to remain low at 11 basis points. Horizon continues its elevated monitoring in most loan segments with higher payment deferrals over the past year. At the end of the Q1, the majority of Horizon's payment deferrals were made to hotels, with the other non essential businesses seeing considerable improvement. The portfolio segments that we continue to monitor include hotels, non owner occupied retail, restaurants and leisure and hospitality. On Slide 24, you'll see a map that exhibits locations of Horizon's loans secured by hotels. As you can see, the vast majority of the hotels that we financed are located along an interstate highway or a resort community. Hotels located along interstate highways are rebounding faster than those hotels located in metropolitan areas. Hotel payment modifications continue to be the highest percentage of any sector at 57% of the total hotel loan portfolio as of March 31, down from 72% at year end. This decline is due to a considerable improvement in occupancy and average daily room rates during the Q1. Specifically, our Indianapolis hotels benefited considerably from the NCAA College Basketball Tournament, and we expect continued improvement in the 2nd quarter from the running of the Indianapolis 500. Overall, this portfolio has strong sponsors, capitalized on utilization of the paycheck protection program to bridge lower occupancy rates and are the select service highway property sector, which is exhibiting the most improvement nationwide. All hotel loans in our portfolio are open to business, with average occupancy rates improving from December at 34% to average occupancy rates for the month of March at 58%. The low occupancy rates at year end were due to the 2nd wave of COVID-nineteen and the considerable improvements at the end of the Q1 are a result of the increased retail travel and entertainment venues starting to reopen and expand services. Horizon continues to report strong asset quality metrics in the Q1. We reported low total net charge offs over the last 5 quarters of less than 5 basis points. Credit loss provision expense declined in the Q1 of 2021 as a result of improved econometrics, low historical charge offs and reduction in allocation to the restaurant and non owner occupied loan sectors due to improved financial results by our borrowers. Horizon's total non performing loans to total loan ratio improved as well for the 2nd consecutive quarter to a low and manageable 68 basis points at March 31. We expect non performing loans to continue to reduce in the 2nd quarter. Our allowance for credit loss is 1.56 percent of total loans, which is in line with other community banks that have adopted CECL. If we exclude PPP loans, the allowance for credit loss to total loans was 1.67%. To summarize Horizon Bancorp's key highlights, we are a seasoned management team who has managed through multiple economic cycles and have a history of delivering growth by exceeding the banking industry's average growth rates. Excellent geographic diversification, strong credit culture, high quality and well diversified balance sheet, robust capital position and excess cash to the whole company within an improving outlook to deploy said capital and cash through a merger or acquisition, solid historical earnings run rate, 30 years of uninterrupted dividends paid on common stock and a dividend increase for last quarter. This concludes today's Q1 earnings presentation. So operator, please open the lines for questions. We'll now take questions. We will now begin the question and answer session. The first question comes from Nathan Race with Piper Sandler. Please go ahead. Yes. Hi, guys. Good morning. Good morning. Craig, I was maybe hoping to expand on kind of your outlook to the back half of this year from a loan growth perspective ex PPP in the warehouse. It sounds like there's some optimism and you guys are seeing kind of increased activities across your footprint lately. So just hoping you can kind of frame out your expectations as kind of in the low single digit range. If you exclude those items that are more volatile in nature and obviously, can you tell me in the case of a couple of weeks? Nathan, first of all, thanks for the question. Indiana and Michigan are in the top 3 or 4 manufacturing states in the country. And manufacturing is doing extremely well across our footprint. Their challenge right now is hiring employees as most of our customers are doing. Our pipelines are very strong. I'm going to turn that comment over to our Executive Vice President and Senior Commercial Lending Officer, Dennis Coon, to give us some more detail. But we also had some pay downs from substandard in nonperforming assets to Q1 that were pretty high that we were glad to see get paid off that did slow our growth rates in the Q1. So Dennis, you want to add to that? Sure. Thank you, Craig. Again, as Craig mentioned, our 2nd quarter pipeline outlook is very positive and it increased quite significantly from Q1 when we originated $92,000,000 in commercial, funded about $54,000,000 of that. That's pretty consistent from a percentage standpoint of closed versus funded if you look over prior periods. And again, we see a second quarter outlook is favorable with approved pipeline pending closing of about 115,000,000 dollars So again, activity generally is picking up. Certainly, Q1, a couple of items of note, as Craig mentioned, elevated payoffs, but a significant portion of that was watch list credits, both substandard and watch. So again, those are workout activities coming to fruition. The other thing we continue to see in the Q1 was the reduction in revolving line of credit usage, down another $12,000,000 And if you look at Q1 'twenty one versus Q1 'twenty, revolving line usage is down by $48,000,000 So again, customers have benefited from PPP. Their balance sheets are in good order, and certainly, that's showing on our deposit side as well. Yes, Nathan, just on the consumer and mortgage side, we are still having robust mortgage production activity, although the mortgage banking association is predicting that to fall off later this year. And we're about 65% refinanced, 35% purchases. The consumer activity, we actually had record volume in home equity lines last year. The challenge has been the payoffs due to 1st mortgage refinancing cash out to reduce the line balances in the stimulus money coming in. With that said, we're seeing a pickup in remodeling projects and do it yourself projects, which we hope will fall back into with usage of those lines of credit. So thank you for your question. Yes. No, got it. That's great tolerating and encouraging commentary, particularly on the commercial side going forward. Just changing gears a little bit, I guess my follow-up question, you guys put up a pretty strong profitability quarter, excess capital levels are continuing to build and I expect that will persist more than a few quarters here. Any updated thoughts on capital deployment priorities? It sounds like you guys are having an increase in M and A discussions. I'm just curious if your increased optimism for an acquisition perhaps later this year would preclude you guys from being maybe more active on share repurchases in the near term or other capital deployment options in terms of returning capital to shareholders? Nathan, again, thanks for the question. As you are aware, we have a repurchase plan in place. We have not used it for 2021. Some of our thought process, 1, it's better to deploy our capital through mergers and acquisitions at the current time versus the price of our stock. It's not hitting some of our hurdle rates for stock buyback. With that said, if we cannot deploy the capital through merger and acquisitions, we will use our excess cash to the holding company for some stock buybacks. The next question comes from Terry McEvoy with Stephens. Please go ahead. Good morning, everyone. Good morning, Terry. I guess, first off, thanks for providing the online kind of active users and the digital data. I guess my question is and Mark I think you hinted at this at the call. As you look at the branch footprint, do you think there's opportunities to reduce the number of locations and any cost savings? Would that fall to the bottom line? Or do you think you would have invested in other areas, particularly on the technology side? Yes. Thanks, Terry. Yes, we definitely think there's some opportunity on the branch side to reduce branches and also redeploy some of the technology that we have in ITMs to better utilize and be better and more efficient. And with those savings, as we might see, we would expect part of that to drop to bottom line. We do look to reinvest. We might look to reinvest in some of the growth markets where there's more opportunity coming. So that is the plan. We're just as I said, we're managing what our capacity is from our team's perspective to make sure we execute on all of these properly and make sure we're successful. Thanks. And then just as a follow-up, the increase in the reserve for the commercial portfolio, I didn't quite follow you, Mark, in terms of what was behind that. Are those, call it, COVID impacted portfolios that you just felt the need to add a bit to reserves? Or was it something different? I was hoping you could clear that up for me. Yes. Any increase that we saw in the reserve on the commercial side would be related to those companies impacted through COVID, specifically hotel industry, where we want to make sure that we are adequately reserved for any losses. The next question comes from Brian Martin with Janney. Hey, just Mark, could you just give a little more color surrounding kind of just, A, the margin and just kind of the deployment? I know you talked about the asset yield pressure, just the in the cost of funds not having much more room, but just the excess liquidity and the deployment of that and just kind of how you're thinking about that and then the margin over the balance of the year? Yes. Thanks, Brian. The margin has so much noise in it, as we all know, as we have movement in PPP fees and our purchase accounting and so it's been the mix. So the growth is going to be in the investment portfolio in the short run. And we continue to analyze what do we think of the surgery deposits are going to stay, how long do we want to invest in them to increase interest net interest income. And that is our focus is net interest income. The margin is going to continue to have pressure, not only some pricing pressures out there and lower interest rates, but just the mix as we grow the investment portfolio. So we had deployed $200,000,000 in the 4th into the Q1 of investments or of cash and investments, and we're currently working on another $300,000,000 $350,000,000 as we've seen these deposits grow and not run off and expect those to be there. But like I said, we're making a strategy so that we will have cash flows coming off of the portfolio to help fund the loan growth and also make sure we can reinvest in it. We anticipate someday rates will go up. Got you. Okay. So something else. And then just one of my follow-up, Mark, for the TCP. What was the round 2 originations? And just kind of what rate are you expecting on those? Round 2 year to date, dollars 128,000,000 originated. Okay. And do you have an idea what the rate is on that or no? If not, I can follow-up. The rate, you mean the fees, Brian, or the Yes, yes, the yield, yes, the kind of the yield you're expecting on that. Well, I think all of it, when we look at yield on those, it's as of the amortization of the fees, it's always been in the 2.6% to 2.7% range. As we have a change until they pay off and then we'll get the rest of the season. Okay. I got you. Okay. Thanks for taking the question. Thanks, Brian. Next, we have a follow-up question from Nathan Race with Piper Smith. Yes. Hi, guys. Thank you for taking the follow-up question. Just a question on fee income. Mortgage was off a little over 30% on a gain on sale basis in the Q1, and that's a little higher than we've seen going to some others so far in the Q1. So just curious to kind of get your outlook on just mortgage gain on sale revenue over the next couple of quarters or was there maybe some unique drivers that kind of brought down that margin in the Q1? And just kind of what are your expectations for mortgages and sale revenue in 2021 relative to expectations for, I think, 15% to 20% drop off in volumes initially by this year? Yes, Nathan, thanks for the question. We expect a strong second quarter in margins. It's the 3rd Q4, I think, with the industry is expecting a drop off. As far as the gain on sale decline as a percent, what took place, if you recall in the Q1, there was some rising rates in the mortgage portfolio before they build back down again. And that does impact our pipeline and our again, so rates have come back down in the Q2. Okay, great. And then just following up on the margin discussion. Mark, excluding PPP revenue, do you have a $74,000,000 margin estimate in the Q1 here? Excluding PPP and I exclude to try to get to the core, exclude this excess what we see as excess cash sitting at the sitting there. And excluding those two pieces, it would have been about 3.23 as a core margin, which is down from the Q4. The same relationship in the Q4 would have been 3.33, so about 10 basis points. And if you were to include the excess liquidity, ex PPP, any sense where that would shake out? Yes. The excess liquidity was going to drag about 16 basis points. So you'd add that back or take that back from the 3.23 in the 4th quarter, yes, it was 7%. Okay, got it. And it sounds like the expectation is early from what you guys are seeing today that the excess liquidity levels are building perhaps not at the rate that we saw over the course of last year. But as with everything that you're seeing today, those excess liquidity levels are likely to persist at least over the next quarter or 2? Yes, definitely. And then there's going to be additional stimulus coming into the municipalities through the last CARES Act. So we anticipate to even see more dollars that will be coming in from that sector, which we really haven't seen to this point. We anticipate elevated liquidity through a good portion of this year. And it sounds like you guys are focused on kind of redeploying some of that in both securities and to the earlier discussion just in terms of a pickup in commercial loan growth expectations as well entering 2Q and into the back half of twenty twenty one as well, it sounds like? Correct. Okay, great. Thanks for taking the follow-up questions, guys. The next is a follow-up question from Terry McEvoy with Stephens. Please go ahead. Hi. Thanks. I really like Slide 7 in terms of just the asset growth going back 20 years. Your outlook this year is for flat. And I'm just wondering how does that impact your view of M and A? And do you think you'd be targeting maybe larger opportunities to kind of fill that void given the lack of organic growth? And can you just remind me what's your sweet spot in terms of potential M and A targets? Thanks, Greg. Thank you, Terry, for the question. We have certain hurdle rates that EPS is meaningful to complete an M and A. So it does move our target assets up to $500,000,000 and above. The lower or smaller banks of $500,000,000 or less, we're seeing an increase in credit union acquisition activity, which has picked up considerably over the last 3 years in both Indiana and Michigan, which has taken, I think, the small deals out of the market anyway for most acquirers. But we have moved the target our target up. Up. Next is a follow-up question from Brian Martin with Janney. Just one on Terry's and then my question, but just Craig, back to the M and A, just geography wise, I think you said, kind of, it was last quarter, the quarter before that you were no longer looking in Illinois. Is that I guess, is it primarily Indiana and Michigan today? Is that kind of the focus on that? Brian, yes, that's correct. Indiana, Michigan and Northwest Ohio. Northwest Ohio. Okay. And then maybe just my follow-up was really just on the reserve outlook. Just given the improvement you guys talked about on classifieds, the positive trends you're seeing and maybe some muted growth here, maybe picking up now. But how should we think about that reserve over time? I mean, should we start to see a trend back toward the pre pandemic levels, given the improving economic conditions and your really strong credit? Yes, Brian, the outlook for the kind of metrics continues to be strong. So that holds our historical loan loss rates are low as well. So the unknown factor is the is there going to be another COVID-nineteen wave. So until we get through and settle down, it's really hard to predict due to the uncertainty. But if we get through that uncertainty, yes, you're right, there would be a release of the credit loss reserve at some point in time. But I'm a little cautious about the pandemic right now. Okay. This concludes our question and answer session. I would like to turn the conference back over to Mr. DeWitt for any closing remarks. Yes. Thank you for participating in today's earnings call, and we look forward to speaking with you again in the near future, hopefully in person, as we get through the end of this pandemic. Thanks for your questions today. Have a good day. Bye now.