Earnings Call Transcript - BWB Q1 2026

Operator, Operator

Good morning, and welcome to the Bridgewater Bancshares' 2026 First Quarter Earnings Call. My name is Danielle, and I will be your conference operator today. Please note that today's call is being recorded. At this time, I would like to introduce Justin Horstman, Vice President of Investor Relations, to begin the conference call. Please go ahead.

Justin Horstman, Vice President, Investor Relations

Thank you, Danielle, and good morning, everyone. Joining me on today's call are Jerry Baack, Chairman and Chief Executive Officer; Joe Chybowski, President and Chief Financial Officer; Nick Place, Chief Banking Officer; and Katie Morrell, Chief Credit Officer. In just a few moments, we will provide an overview of our 2026 first quarter financial results. We will be referencing a slide presentation that is available on the Investor Relations section of Bridgewater's website, investors.bridgewaterbankmn.com. Following our opening remarks, we will open the call for questions. During today's presentation, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. We caution that such statements are predictions and that actual results may differ materially. Please see the forward-looking statement disclosure in the slide presentation and our 2026 first quarter earnings release for more information about risks and uncertainties, which may affect us. The information we will provide today is as of and for the quarter ended March 31, 2026, and we undertake no duty to update the information. We may also disclose non-GAAP financial measures during this call. We believe certain non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors to help them understand the company's operating performance and trends and to facilitate comparisons with the performance of our peers. We caution that these disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP. Please see our slide presentation and 2026 first quarter earnings release for reconciliations of non-GAAP disclosures to the comparable GAAP measures. I would now like to turn the call over to Bridgewater's Chairman and CEO, Jerry Baack.

Jerry Baack, Chairman and Chief Executive Officer

Thank you, Justin, and thank you for joining us this morning. Bridgewater is off to a strong start in 2026 with several positive developments during the quarter, positioning us well for the rest of the year. First and foremost, I would like to point out our net interest margin expansion. While we mentioned last quarter that we expected to reach a 3% margin by the end of 2026, we nearly got there in the first quarter as margin expanded to 2.99%. Deposit costs declined and loans repriced higher, helping us get there quicker than anticipated. We expect to see slow additional margin expansion over the coming quarters. Because of the strong net interest margin, we were able to continue growing net interest income. This happened even while our balance sheet shrunk during the quarter due to some strategic sales of securities. These securities sales were part of several opportunistic actions taken in the first quarter to enhance our balance sheet efficiency, resulting in both a substantial gain and positioning us for improved profitability moving forward. I want to be clear that this was not the standard balance sheet repositioning many other banks have done recently that involved selling securities at a large loss to increase future margin, but rather a calculated tactic Joe and our treasury team recognized as interest rates moved in our favor. In response to this shift, they executed on an opportunity to improve forward profitability while taking an immediate gain. Joe will provide more details on this in a minute. I'm pleased to report we continued to take market share in the first quarter as the loan portfolio grew 5.5% annualized, with much of the growth continuing to come from our commitment to our affordable housing vertical. Core deposit momentum also continued as balances increased 3.2% annualized, while the overall deposit mix continued to improve. Asset quality remained positive in the first quarter as net charge-offs and nonperforming assets both declined nicely. We continue to feel good about the overall asset quality of our loan portfolio resulting from the strong credit culture we pride ourselves on. In addition, we saw a nice uptick in our capital ratios as CET1 increased 36 basis points to 9.53%. Turning to Slide 4. Tangible book value growth continues to be a staple of the Bridgewater story. And that was no different in the first quarter as tangible book value increased 9.9% annualized to $15.93 per share. This is an important differentiator for Bridgewater. We are proud of our ability to create and sustain shareholder value through tangible book value growth and how consistent this trajectory has been over the past decade. Before I pass it over to Joe, I also wanted to share that we successfully expanded our footprint to the East. In February, we opened our de novo branch in Lake Elmo. This is a growing area in the Twin Cities, and we are thrilled with the opportunities it presents to Bridgewater Bank. With that, I'll turn it over to Joe.

Joseph Chybowski, President and Chief Financial Officer

Thanks, Jerry. Before we take a deeper dive into the first quarter results, I wanted to walk through the balance sheet efficiency actions we took in late January and early February, which are laid out on Slide 5. As Jerry mentioned, this was really a win-win for us as our treasury team recognized how we could take advantage of the volatility in interest rates to not only improve future profitability, but also generate substantial near-term revenue. As part of this strategy, we sold a portion of our high-quality securities portfolio, which included the sale of $147 million of treasuries for a net gain of $1.2 million, and the sale of $62 million of municipal bonds for a net gain of $6.1 million. By selling these securities that were yielding in the 4% and 5% ranges, we were able to redeploy these dollars into higher-yielding loans going forward. In addition to these securities sales, we also prepaid $97.5 million of higher cost FHLB advances that were being used to fund the securities. While this resulted in a prepayment expense of $982,000, it helped to improve our funding mix and reduce our overall cost of funds. At the end of the day, we generated an additional $7.3 million of pretax net income in the first quarter, increased our permanent capital levels and supported future net interest margin expansion by reducing our cost of funds and creating an opportunity to redeploy capital into higher-yielding loans. This is another example of how we are actively and thoughtfully managing our balance sheet to drive shareholder value. Turning to Slide 6. We were able to grow net interest income by 3% quarter-over-quarter despite the average interest-earning assets declining $185 million as a result of the balance sheet actions I just mentioned. This is pretty impressive and was driven by 24 basis points of net interest margin expansion in the first quarter to 2.99%. Our expectation had been to get to a 3% net interest margin by the end of '26, but we were very pleased that several factors allowed us to nearly get there in the first quarter. First, we saw the full quarter impact of the fourth quarter rate cuts on both sides of the balance sheet as total deposit costs declined 18 basis points and loan yields were still able to reprice higher by 3 basis points given the fixed rate nature of the portfolio. Notably, deposit betas during this most recent rate cut cycle have outperformed the betas we saw during the prior cycle, primarily due to a larger portion of our deposit base being directly tied to short-term rates. Second, loan fees continued to increase as payoffs remained elevated. And third, there was a modest margin impact within the quarter from the balance sheet efficiency actions we took, which resulted in a decrease in higher cost borrowings and a smaller balance sheet. Given that we were able to pull forward much of our expected net interest margin expansion for the year into the first quarter, we expect the pace of margin expansion to slow meaningfully going forward. However, we still expect to see some mild margin expansion over the coming quarters, even with no additional rate cuts. With net interest margin resetting higher, some margin expansion expected to continue and earning asset growth set to return, we are well-positioned to continue driving net interest income moving forward. Slide 7 highlights some of the net interest margin drivers. The cost of total deposits declined by 18 basis points in the first quarter and is now down 40 basis points over the past 2 quarters. The decline in the first quarter reflects the full quarter impact of the rate cuts from the fourth quarter of 2025. Absent any additional rate cuts, we would expect to see deposit costs stabilize going forward, although we will continue to look for additional opportunities to lower the rates of deposit accounts where it makes sense. Our portfolio loan yield increased 3 basis points during the quarter to 5.81%. As we've said in the past, we expect our loan portfolio to continue to reprice higher in the current environment given the larger fixed rate component, which makes up 65% of the portfolio. We have been actively originating more variable rate loans to make the portfolio more rate neutral going forward. Variable rate loans now make up 23% of the loan portfolio, up from 17% a year ago. We would expect this loan repricing to continue to support future margin expansion as our loan portfolio includes $644 million of fixed rate loans scheduled to mature over the next 12 months at a weighted average yield of 5.73% and another $106 million of adjustable rate loans repricing or maturing at 3.86%. With these lower yields running off the books and new originations in the first quarter going on the books around 6%, we have further repricing upside ahead of us. Turning to Slide 8. We continue to see strong profitability and revenue growth trends as our adjusted return on average assets was just under 1% for the second consecutive quarter. We have also continued to consistently grow total revenue, driven by steady net interest income growth. In addition, noninterest income has topped $2 million every quarter since the fourth quarter of 2024, even excluding securities gains. This is a result of new fee income sources we have added recently, including swap fees and investment advisory fees, both of which we expect to continue to see throughout 2026. Turning to Slide 9. We have a strong track record of well-managed expense growth as evidenced by our consistently better than peer efficiency ratio. Excluding the $982,000 of FHLB prepayment expense, expenses still were a bit elevated in the first quarter, which is typically the case due to some seasonality. First quarter expenses included our annual merit increases going into effect across the organization early in the quarter, several key strategic hires related to the disruption in the market and the pull forward of some charitable contributions. Occupancy expense also increased due to the opening of our new branch in Lake Elmo. As we've said before, we continue to expect adjusted noninterest expense to track closely with our general pace of asset growth over time. Keep in mind that this won't apply in the first quarter as assets decline due to securities sales. With that, I'll turn it over to Nick.

Nicholas Place, Chief Banking Officer

Thanks, Joe. Turning to Slide 10. You can see our core deposit momentum continued with annualized growth of 3.2% in the first quarter. We were pleased with this level of growth as balances tend to remain seasonally lower earlier in the year. We have also seen an ongoing positive deposit mix shift given the more consistent core deposit growth and overall decline in higher cost brokered and time deposits, which have declined on a combined basis year-over-year. We continue to be very pleased with our core deposit growth and pipeline overall. This includes traction in our affordable housing vertical as well as opportunities from the ongoing M&A disruption in the Twin Cities. While our deposit growth tends to be a bit slower during the first half of the year, we feel really good about our ability to continue growing core deposits over time as these provide the fuel for our organic loan growth. Turning to Slide 11. Loan balances grew 5.5% annualized in the first quarter. We have seen an increase in competition in recent months, which has caused spreads to tighten a bit, but our pipeline remains strong and is near 3-year highs. As a result, we are in a good position to be selective on the types of deals we want to do and at yields that make sense. Overall, we feel we are right on track to hit our expectations of high single-digit loan growth for the year. Obviously, there will be various factors that impact our pace of growth, including competitive dynamics, levels of payoffs and of course, core deposit growth, which is really our governor on how quickly we can grow loans. Turning to Slide 12. You can see that our loan pipeline is continuing to translate into new originations, while loan advances continue to increase as well. The increase in loan advances was driven by new construction projects over the past year that are now funding. We would expect to see new originations and advances remain strong in 2026. Payoff activity also remained elevated, and we expect these to continue given the current interest rate environment. Turning to Slide 13. C&I was the largest loan growth category during the first quarter. This was largely due to activity in real estate-related C&I, including affordable housing. C&I is a strategic growth focus for us and an area in which we continue to invest. This includes adding additional talent with 3 new C&I bankers we've recently brought on board, stemming from the M&A disruption in the market. Overall, we are optimistic about our ability to continue expanding both talent and clients in this area. We continue to see meaningful opportunities for growth in affordable housing as balances in this vertical increased $57 million or 35% annualized during the first quarter. This growth was spread across both C&I and multifamily. With an ongoing focus on growing affordable housing and C&I as well as our strong expertise in multifamily and CRE, we feel good about the mix and growth outlook for our loan portfolio. With that, I'll turn it over to Katie.

Katie Morrell, Chief Credit Officer

Thanks, Nick. Turning to Slide 14. Our overall credit profile remains strong. After a modest increase in nonperforming assets and net charge-offs in the fourth quarter, both came back down in the first quarter. We mentioned in January that the multifamily loan we moved to nonaccrual in the fourth quarter was under a purchase agreement. As planned, this transaction closed in the first quarter, dropping our NPAs back to 0.22%. Net charge-offs were also very minimal at just 0.05% annualized for the quarter. As we have said before, with a loan portfolio of our size, we do expect to have some modest net charge-offs and upticks in nonperforming assets from time to time. But we have also demonstrated our ability to effectively work through these credits. Overall, our loan portfolio continues to perform well, and we remain well reserved at 1.31% of total loans. Looking at Slide 15, our watch and special mention loans have remained relatively stable, sitting right around 1% of total loans, while substandard loans declined quarter-over-quarter, primarily due to the multifamily loan mentioned previously. We continue to monitor all watch list credits closely, but again, feel good about our overall asset quality and our ability to identify emerging risks within the portfolio. I'll now turn it back over to Joe.

Joseph Chybowski, President and Chief Financial Officer

Thanks, Katie. Slide 16 highlights our enhanced capital position, which benefited from some of the balance sheet efficiency initiatives we mentioned earlier. Notably, our CET1 ratio increased from 9.17% to 9.53%. We did not repurchase any shares during the quarter given our strong organic growth pipeline and where the stock was trading. In fact, we actually announced the launch of an at-the-market offering for the sale of up to $50 million of common stock, which could add approximately 100 basis points to our CET1 ratio, if fully executed. However, we did not execute on the sale of any of these shares during the first quarter. While we feel comfortable with our current capital levels, we like the additional optionality and capital cushion the ATM offering can provide if we choose to use it. Given the strong recent performance of the stock, we want to have the optionality to execute on the ATM and support capital levels if market conditions are favorable. Turning to Slide 17. I'll recap our near-term expectations. As Nick mentioned, we feel we are on track to grow the loan portfolio at a high single-digit pace over the course of 2026. This will be dependent on a variety of factors, especially our ability to continue generating strong core deposit growth as we look to keep our loan-to-deposit ratio in the 95% to 105% range. From a net interest margin standpoint, we have basically already reached our 3% target that we had for the end of the year. As a result, we expect to see just some slow margin expansion from here, assuming no additional rate cuts in 2026. Our main focus remains on growing net interest income, which we believe we can do given expectations for margin expansion and continued loan growth. We also expect expense growth to align relatively well with asset growth over time. This may not be the case each quarter, but over the long run, we believe this alignment can continue as we have seen in the past. We feel we are well reserved at current levels and would expect provision to remain dependent on the pace of loan growth and the overall asset quality of the portfolio. We also feel that we can maintain stable capital levels after a solid increase in the first quarter. We also have some future optionality based on market conditions around share repurchases and the ATM we have in place. I'll now turn it back to Jerry.

Jerry Baack, Chairman and Chief Executive Officer

Thanks, Joe. Before we open it up for questions, I wanted to provide a quick progress report on our 2026 strategic priorities. We remain focused on taking market share in a profitable way. In the first quarter, I was pleased to see good loan and core deposit growth, but what was even more exciting was a substantial net interest margin expansion. Our credit culture also continues to show through with minimal net charge-offs. Our affordable housing vertical is another area that we are very focused on in 2026, and we have seen positive traction in this space as our brand and reputation continue to build. Lastly, on the technology front, we are working through several initiatives, which include bank-wide efforts to set the foundation for leveraging AI thoughtfully across the organization. I'm proud of the team and the efforts put forth in the first quarter and believe we are well positioned for the year ahead. With that, we will open it up for questions.

Operator, Operator

The first question comes from Brendan Nosal from Hovde Group.

Brendan Nosal, Analyst, Hovde Group

Maybe just starting off here on capital. You created, what, 30 to 40 basis points of tangible capital this quarter with the securities sale. Do you think that lessens the need for you to tap the market with the ATM in your view?

Joseph Chybowski, President and Chief Financial Officer

Brendan, this is Joe. Yes, it all depends like we said. We're going to be opportunistic with the ATM. We like the optionality that it provides. We're not going to bank on translating unrealized gains to realized gains. So as we generally think about capital, we're comfortable with where we're at and comfortable with the optionality we have on both sides. I want to be thoughtful about the organic growth prospects that we have. I don't think it changes the calculus by the one-time gain that we took.

Brendan Nosal, Analyst, Hovde Group

Okay. Maybe turning to the hires you made this quarter. I think FTE headcount was up like 15 for the quarter. I guess that there's a lot of M&A dislocation in your markets. But just wondering if there's any really notable hires in that number that you're particularly excited about?

Nicholas Place, Chief Banking Officer

Brendan, this is Nick. Yes, we've been saying it for a while that we feel like we're well-positioned in the market to take advantage, both on the client front and the talent front, from the M&A disruption. Sometimes those hires come early in that process, sometimes it takes some time, and we're starting to see the fruits of that labor pay off now. We're really excited about some C&I hires that we've had in the last handful of months. Those folks are hitting the ground running now and are bringing in some phenomenal opportunities for us with great local C&I relationships. Around that, we're bolstering and taking advantage of some of that disruption to bolster other areas. Katie has done a great job hiring some senior credit folks to assist us in that C&I effort. Overall, we feel like our brand is well positioned to continue to take advantage of that M&A disruption on the hiring front.

Brendan Nosal, Analyst, Hovde Group

Okay. Great. I'm going to sneak one more in here. Just on this quarter's actions with the securities portfolio, do you view that as additive to your prior outlook of the 3% NIM by the end of '26 or just kind of an acceleration of getting there? And I'm asking because if the NIM outlook is still around 3-ish, but the earning asset base is a couple of hundred million smaller, there's obviously NII considerations to that dynamic.

Joseph Chybowski, President and Chief Financial Officer

Yes. I think the securities sale certainly contributed to the margin outperformance, but it was a small amount. It was about 2 basis points in the quarter. There is no one silver bullet. This was part of it. If we hadn't done it, we are not going to miss out on pulling forward margin going forward. The bigger thing was the cost of deposit decline that we experienced and really outperformed in the quarter. That, coupled with loan payoffs, drove the majority of the margin expansion. As we said, we didn't want to rely on rate cuts to pull forward that margin. It was an all-hands-on-deck effort to achieve the margin expansion we did in the first quarter.

Operator, Operator

The next question comes from Jeff Rulis from D.A. Davidson.

Jeff Rulis, Analyst, D.A. Davidson

Just a question on the M&A side. A lot of discussion of benefiting from disruption. I guess taking the other side of that is just a check-in on your outward acquisitions, if talking about conversations and interest. I see it's number two on your capital priorities of chasing down M&A. Any updates to mention there?

Jerry Baack, Chairman and Chief Executive Officer

Jeff, it's Jerry. I'd say nothing different than the past. I continue to stay in front of people. I would say things up here in the first quarter slowed down more than I expected, but I think that has a lot to do with geopolitical reasons. We'll see. It certainly continues to be a priority. At the end of the day, organic growth and continuing to take market share in the Twin Cities is first and foremost what we're focusing on.

Jeff Rulis, Analyst, D.A. Davidson

And maybe on the margin, it didn't sound like the restructuring or the moves you made with the balance sheet didn't have much impact in the quarter. I guess the timing of that, maybe for Joe, is there any tail benefit of those moves that it was 2 basis points this quarter? That's question one on the margin. Is there a tail that you expect to see in the second quarter? And then the other part is, I guess, as you hit the margin goal, maybe you got to set a new one. We get the language of moderate increases from here. But just trying to see about further out where you think a terminal margin could be where the balance sheet sits today.

Joseph Chybowski, President and Chief Financial Officer

Yes, Jeff. I'll try to address the first part and then the second. There will be a pull forward or a future impact by selling those securities and redeploying into higher-yielding loans. The 2 basis points this quarter was early in the quarter, so you could somewhat annualize that as we redeploy those into loans earning in the 6s, which is beneficial. The main driver was the deposit betas, given the amount of deposits linked to fed funds we have. The 75 basis points of cuts in the fourth quarter showed a full quarter benefit here and drove the majority of the margin expansion. On the loan repricing side, that benefit is spread throughout the year as loans reprice. The expansion opportunities are front-loaded, driven by deposits, and then more gradual and backloaded based on assets. The securities portfolio remains a source of strength for us and selling some of it was additive. We'll continue to look for opportunities to rationalize deposit costs lower throughout the year, but we're not banking on rate cuts. We're focused on growing NII as loan portfolio growth translates into higher income.

Operator, Operator

Next question comes from Nathan Race from Piper Sandler.

Nathan Race, Analyst, Piper Sandler

Just going back to the last line of question around the yield pickup on the fixed and adjustable rate loans that are maturing over the next year. Joe, can you help us with the yield pickup that we can expect on those two portfolios relative to what you laid out in terms of the runoff yield on Slide 21?

Joseph Chybowski, President and Chief Financial Officer

Yes. It's pretty balanced throughout the year. The adjustable rate portfolio, just over $100 million, is sub-4% today. As those loans reprice or pay off, whether they reset at new money yields in the 6s or pay off, they should be accretive to margin. The fixed rate portfolio we've been repricing over the last couple of years, so the benefit is less concentrated, but there is still a benefit since some yields are still sub-6%. Another piece is loan fees: as deals with deferred fees pay off, that accelerates fee potential. In the first quarter, 12 basis points of the loan yield was loan fees, an uptick from prior quarters, giving us an opportunity to recycle dollars in the low 6s. The repricing benefit is spread throughout the year from new originations and existing repricing opportunities.

Nathan Race, Analyst, Piper Sandler

Got it. That's helpful. I appreciate the earlier commentary around deposit costs under the current forward rate outlook. But just curious what you're seeing from a competitive perspective in terms of deposit pricing across the Twin Cities? And when it comes to deposit gathering, Nick, could you touch on the latent deposit gathering opportunities with some of the team members you brought over recently from competitors in terms of the size of their deposit portfolios at prior institutions?

Nicholas Place, Chief Banking Officer

Nate, on the deposit front overall, it continues to be a competitive market, but we are seeing new deposits come in at costs that are meaningfully lower than last year. We feel good about the team and their ability to get in front of the right opportunities to bring in core deposits at sensible costs. The individuals we brought on board are actively prospecting and working through their portfolio. There's low-hanging fruit on the deposit front that can come over quickly, and those balances tend to be in savings and money market accounts, which are a little more expensive initially with operating accounts to follow as our treasury management teams onboard the full relationship. We will be able to blend the cost of those deposits down. The prospects with these hires to bring in sticky core deposit relationships across consumer, commercial and business owner segments are strong. Our executive banking team does a great job bringing on full deposit relationships with owners and executives. We also feel Lake Elmo is an underserved market where we can grow long term. We grew balances well in Q4, which is typical seasonality, and were not surprised to see some of those balances drift out as customers did distributions and paid taxes. We feel good that we were able to grow deposits even in a seasonally more difficult quarter.

Nathan Race, Analyst, Piper Sandler

Got it. That's great color. Really helpful. I apologize if you already touched on this, but if I could sneak one last one in on expenses. Given the step-up in Q1, was there any front-loading of costs given the branch opening and seasonality? Joe, can you help with the starting point for Q2 expenses to get to that high single-digit growth guide consistent with loan growth expectations?

Joseph Chybowski, President and Chief Financial Officer

Nate, our annual merit cycle creates a step-up at the beginning of the year as promotions and merit increases take effect. Headcount increases to support growth and the Lake Elmo branch coming online contributed to occupancy step-up. We have also continued marketing and advertising campaigns given the market disruption; that's not a one-time item but a continuation to build the brand. We don't look at expenses in isolation quarter-over-quarter; we think about investing in the business over the long run. Given growth prospects, we feel good about investing in people and technology, and over the long haul, we expect asset growth and expense growth to align. The first quarter was atypical with the sale of securities lowering average assets, which affects the ratio comparisons, but long term we remain confident expenses will track with asset growth.

Operator, Operator

The next question comes from Brandon Rud from Stephens.

Brandon Rud, Analyst, Stephens

Thank you for all the color on the NIM. The difference in the period end and average deposits, when you look at a good starting point for the second quarter, would you see deposits closer to the period end level of $4.3 billion or closer to that average level?

Joseph Chybowski, President and Chief Financial Officer

Closer to the period end. As taxes get paid and distributions are made, those balances typically build back up.

Nicholas Place, Chief Banking Officer

Brandon, our low watermark on deposits is usually mid- to late January, and it typically rebuilds from there. We feel good about where we ended the quarter.

Brandon Rud, Analyst, Stephens

Okay. Perfect. My last one: it seems like a slower start to the year for the multifamily portfolio. Is that more reflective of stronger growth in 2025, or is that a broader trend?

Nicholas Place, Chief Banking Officer

Brandon, I don't think it's a broader trend. Quarter-to-quarter, you can see variability where some quarters have large originations with fewer payoffs, and others where payoffs outpace originations. I'm not overly concerned about Q1 for that portfolio. Our teams remain in front of the right clients and are building deep relationships. We've seen an uptick in multifamily and CRE construction advances in the last 12 months, which provides tailwinds as those construction projects convert and roll into our multifamily and CRE buckets. Our pipeline remains strong, and we continue to be disciplined and selective in the credits we add, focusing on profitable growth in line with deposits.

Operator, Operator

This concludes our question-and-answer session. I would like to turn the conference back over to Jerry Baack for closing remarks.

Jerry Baack, Chairman and Chief Executive Officer

Thanks, everyone, for joining our call today. We're really excited about 2026 and the growth and profitability outlook that is in front of us and continuing to take advantage of the M&A disruption in the Twin Cities. I also just want to give a big shout out to our team members, our veterans and our new hires. We have a phenomenal team here, and I appreciate everything they do. Everybody, have a great day.

Operator, Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.