Earnings Call Transcript - OCFC Q4 2025

Operator, Operator

Hello, everyone, and welcome to the OceanFirst Financial Corp. Q4 '25 Earnings Release. My name is James, and I will be your operator for today. The conference call will now start, and I'll hand it over to our host, Alfred Goon. Please go ahead.

Alfred Goon, SVP of Corporate Development and Investor Relations

Thank you, James. Good morning, and welcome. I am Alfred Goon, SVP of Corporate Development and Investor Relations. Before we kick off the call, we'd like to remind everyone that our quarterly earnings release and related earnings supplement can be found on the company website, oceanfirst.com. Our remarks today may contain forward-looking statements and may refer to non-GAAP financial measures. All participants should refer to our SEC filings, including those found on Forms 8-K, 10-Q and 10-K for a complete discussion of forward-looking statements and any factors that could cause actual results to differ from those statements. Thank you. And now I will turn the call over to Christopher Maher, Chairman and CEO.

Christopher Maher, Chairman and CEO

Thank you, Alfred. Good morning, and thank you to all who have joined our fourth quarter 2025 earnings conference call. This morning, I'm joined by our President, Joe Lebel; and our Chief Financial Officer, Pat Barrett. We appreciate your interest in our performance and this opportunity to discuss our results with you. This morning, we will provide brief remarks about the financial and operating performance for the quarter and some color regarding the outlook for our business. We may refer to the slides filed in connection with the earnings release throughout the call. After our discussion, we look forward to taking your questions. We reported our financial results for the fourth quarter which included earnings per share of $0.23 on a fully diluted GAAP basis and $0.41 on a core basis. In terms of performance indicators, we're pleased to report a fifth consecutive quarter of net interest income growth, which increased by $5 million or 5% as compared to the prior quarter and up 14% as compared to the prior-year quarter. The current quarter results were fueled by an increase in average net loans of $446 million. Our net interest margin of 2.87% declined modestly compared to the third quarter. Total loans for the quarter increased $474 million, representing an 18% annualized growth rate, driven by $1 billion in originations. Joe will have more to add regarding our growth strategy in a few minutes, but we're very pleased to see the organic growth momentum that is a direct result of the investments we made in the first half of 2025. Asset quality remained exceptional as total loans classified as special mention and substandard decreased 10% to $112 million or just 1% of total loans. This continues to place us among the top decile of our peer group. The quarterly provision was primarily driven by improvements in asset quality and a decrease in unfunded commitments, offset by loan growth. GAAP operating expenses for the quarter were $84 million and included $13 million of expenses related to our residential outsourcing initiative, merger costs and execution costs for our credit risk transfer. On a core basis, operating expenses of $71 million were down $1 million or 2% from the linked quarter primarily driven by the impact of our strategic initiative to outsource our residential lending platform. Pat will provide additional commentary on the credit risk transfer and a detailed update on our financial outlook in a moment. Capital levels remain robust with an estimated Common Equity Tier 1 capital ratio of 10.7% and tangible book value per share increased to $19.79. We did not repurchase any shares this quarter under the existing plan as our capital was utilized to support loan growth. This week, our Board also approved a quarterly cash dividend of $0.20 per common share. This marks the company's 116th consecutive quarterly cash dividend. Finally, on December 29, we announced a merger agreement with Flushing Financial Corporation and an investment agreement with Warburg Pincus. The acquisition of Flushing will directly support our organic growth initiatives in New York, positioning OceanFirst as a scaled competitor in the deepest banking markets in the country. The resulting company is expected to demonstrate improved profitability and increased operating scale, which should deliver meaningful upside to our shareholders. We continue to work towards an expected close in the second quarter of 2026, and we'll provide more updates as regulatory approval progresses. In the meantime, we remain focused on OceanFirst's continued organic growth efforts, which are proving successful as shown in the results of this quarter. At this point, I'll turn the call over to Joe for additional color on the businesses.

Joseph Lebel, President

Thanks, Chris. I'll start with loan originations for the quarter, which totaled just north of $1 billion for the second consecutive quarter and resulted in record quarterly loan growth of $474 million. Our C&I business grew 42% for the year as we have reaped the benefits of our continued recruitment of talent, coupled with favorable conditions for many of our borrowers. Much of that was in the second half of the year, which bodes well for interest income growth early in 2026. As discussed in the previous quarter, we made the decision to outsource the residential and title businesses, and we have worked through the remainder of the existing pipeline and expect to see measured runoff in the portfolio going forward. The loan pipeline of $474 million, while lower quarter-over-quarter, is due to the outsourcing of residential and is still markedly higher than this time last year, reflecting the robust growth in the commercial bank. Total deposits in the fourth quarter increased by $528 million, with $323 million driven by organic growth across varied business lines. Among those lines, the Premier Bank team grew deposits by $90 million or 37% from the linked quarter with the weighted average cost of their deposit portfolio declining 36 basis points to 2.28% as of December 31. To date, the Premier Banking teams have brought in $332 million in deposits across more than 1,300 accounts and representing more than 350 new customer relationships. Approximately 21% of those balances are in noninterest-bearing DDA. Lastly, noninterest income decreased by $3.3 million to $9 million during the quarter primarily driven by lower title fees and a reduction in the gain on the sale of loans related to the outsourcing of our residential and title platforms. We continue to see strong swap demand linked to our commercial growth and look for that to continue in the coming quarters. Overall, noninterest income levels were in line with our expectations as guided in the previous quarter. With that, I'll turn the call over to Pat to review the remaining areas for the quarter.

Patrick Barrett, CFO

Thanks, Joe. As Chris noted, net interest income grew while margin declined modestly, as we had previously guided. Pretax pre-provision core earnings grew 9% or $3 million from the prior quarter, driven by earning asset growth over the second half of the year. Loan yields decreased modestly, reflecting the impact of floating rate resets and a continued mix shift in our portfolio. Total deposit costs increased modestly, reflecting isolated upward repricing for certain interest-bearing accounts combined with continued competitive deposit pricing. Borrowing costs also contributed a modest 1 basis point of pressure on our margin, reflecting the net impact of our subordinated debt issuance and retirement during the fourth quarter. Average interest-earning assets increased meaningfully compared to the prior quarter, reflecting increases in both the securities and loan portfolios. Growth in securities was from our late third quarter opportunistic purchases, which also had a modestly compressing impact on our margin. Looking ahead, we expect positive expansion in both NII and margin. As Chris mentioned, asset quality remained very strong with nonperforming loans to total loans at 0.2% and nonperforming assets to total assets at 0.22%. Asset quality continues to remain at the low end of historical levels for criticized and classified loans as risk ratings across our commercial portfolio remained stable. Net charge-offs ticked up slightly, but full year net charge-offs as a percentage of total loans remained extremely low at 5 basis points. Turning to expenses. Core noninterest expenses decreased from $72.4 million to $71.2 million, driven by the sale of our title business, noncore items include restructuring charges of $7 million related to our residential outsourcing initiative, $4 million of merger-related costs and $1 million of professional fees related to the credit risk transfer transaction we executed during the quarter. Looking ahead, we expect our first quarter core operating expense run rate to remain in the range of $70 million to $71 million, with seasonal compensation increases offset by a full quarter's benefit of our residential outsourcing initiatives. Capital levels remained strong, with our CET1 ratio increasing to 10.7%, reflecting strong loan growth during the quarter combined with the benefits of the credit risk transfer transaction. This trade provided approximately 50 basis points of CET1 ratio benefit at an annual pretax cost of less than $4 million. A word on taxes, we expect our effective tax rate, which was 22% in Q4, to remain in the 23% to 25% range quarterly, absent any changes in tax policy. There are no changes to our full year guidance, as stated in the third quarter's earnings release, mid- to high single-digit loan and deposit growth. NII and NIM growing with NIM growing past 3% during the year and NII ramping in the second half of the year. Other income, $7 million to $9 million per quarter and expenses relatively flat to current run rates. Note that these are stand-alone expectations that do not reflect the impact of the Flushing acquisition. We've also added our first quarter outlook for convenience. But again, remember that the first quarter always reflects the impact of 2% fewer days and the impact that has on a lot of our P&L items and NII. At this point, we'll begin the question-and-answer portion of the call.

Operator, Operator

And moving on to our questions, we have one from Daniel Tamayo from Raymond James.

Daniel Tamayo, Analyst

Could you clarify your net interest income guidance, Pat? The growth in dollars is aligned with the growth in loans, which suggests around $90 million in loan growth. That's how we should interpret this. Is that the net interest income growth, or how should we approach this?

Patrick Barrett, CFO

No, it will actually probably grow at a slightly higher rate than our loan balances due to the compounding effect of the current size of the balance sheet. I just wanted to point out that in Q1, it often appears disappointing because you have to adjust for 2% due to fewer days in the quarter from the fourth quarter to the first quarter, after which it will start to increase again. I believe you'll see high single-digit growth in net interest income for the year.

Daniel Tamayo, Analyst

Great. That's perfect. I was wondering if you could provide any updated commentary on what loan sales might look like after the close of the deal.

Christopher Maher, Chairman and CEO

It's a little bit too early to give you any precise figures on that. We're undergoing a process right now to review the portfolios. A lot of the work we could not really get deep into when we were still in the confidential mode of negotiating with Flushing. So now we've got a little better ability to do that. So we'll update you as our thoughts evolve, but we do expect to be able to do some work on the balance sheet in a way that improves our margins and ROA outlook over time while also reducing credit risk.

Daniel Tamayo, Analyst

Understood. And then maybe just a clarification question for you, Pat, on the expense line. Where is the recurring CRT premium expense? In what line?

Patrick Barrett, CFO

It comes through other. It's just like insurance premium expense essentially.

Operator, Operator

Moving on, we have Tim Switzer from KBW.

Timothy Switzer, Analyst

I got a few on balance sheet growth here. So first up on commercial balances, C&I on a dollar basis, it looks like it's accelerated for 4 straight quarters, basically every quarter this year with a pretty meaningful pickup in Q4. What kind of pace should we expect for 2026?

Joseph Lebel, President

Tim, it's Joe. Look, I think we probably snuck in a couple of Q1 stuff into Q4, but that's what the borrower wants and that's what we're going to do. But the seasonality aside, which tends to be a little slower in Q1 as everybody is waiting for year-end financial statements, I would tend to think that you're going to see very similar growth rates. I think we've got it in the 7% to 9% range, which I think is fair. Look, we put a ton of dollars into talent in that space, and I think that space is now just starting to deliver what we expected. So more to come.

Timothy Switzer, Analyst

Okay. That's helpful. And I think you guys disclosed this last quarter, wondering if you could talk about how much of the growth this quarter in C&I was driven from the Premier Bank in cross sales?

Joseph Lebel, President

Yes. So I don't have the quarterly number in front of me, but I do have the half year numbers. So they generated just shy of $200 million in gross closed loans and the outstandings at the end of the year were about $64 million, which is pretty much what we figured, right? They're going to be more deposit-heavy, loan-to-deposit number is going to be really good. But they do have a solid C&I clientele, which is a benefit. And I think we'll see more of that to come in '26 as well.

Christopher Maher, Chairman and CEO

Tim, it's Chris. One other thing I'd mention is that we're really pleased that the level of self-funding in the C&I customers was pretty strong this year. So we're seeing pretty strong deposits come in. The C&I teams have done a nice job with that. So we had just shy of like a 40% coverage of outstanding self-funding. So as that book rotates, we do more C&I and on a relative basis, less CRE, the deposit portfolio is going to strengthen as well.

Timothy Switzer, Analyst

Got you. Yes, that's great. And then on the Premier Bank specifically, it looks like the deposit growth maybe slowed down a little bit. I know it's just one quarter, there's probably some volatility, maybe some seasonality in there. But can you add some color on that? And then reconfirm if you still feel good about the target for $2 billion to $3 billion of deposits by the end of '27?

Joseph Lebel, President

Yes. So Tim, I think you hit on the head. We had higher balances up until really the last week of the year. We had some seasonality, some distribution, some bonus payments. I think that's part for us to learn about the clientele as well. You onboard 350 new clients, you're trying to solve for what works. So we saw nothing but a ramp up until the last week. So I think you're going to see recoveries as the year goes on, you're going to see continued growth. I don't see any reason why we would back off the 2027 targets.

Operator, Operator

Moving on, we now have Christopher Marinac from Janney Montgomery Scott.

Christopher Marinac, Analyst

Chris and Pat and Joe, I wanted to ask about the Premier banking new money rate that came in. You may have mentioned it, I just missed it. Then I had a follow-up.

Christopher Maher, Chairman and CEO

Yes, I don't have the new money rate available at the moment. The overall portfolio cost has decreased to about 2.25%. We're experiencing a quicker inflow of noninterest-bearing deposits. While the balances were seasonally lower, as Joe pointed out, we are successfully opening new accounts and forming new relationships at a good pace. Therefore, I expect that trend of increased noninterest deposits will continue over time, along with lower yields on those deposits and a faster growth rate in the first quarter.

Christopher Marinac, Analyst

Okay. So 2.25% is the overall rate, and that works with what I was asking. Chris, as you move forward with Flushing, can you just go back through the opportunity to kind of reset deposit rates? And is there anything instructive from what you're doing now with Premier banking and those new customers with what you can do with Flushing? And I guess part of my question is also how much of that is sort of additional potential earnings beyond what you underwrote going in?

Christopher Maher, Chairman and CEO

I believe there is a significant opportunity here, Chris. Let me explain what we think it entails. It's important to note that I won't be discussing specific numbers related to this opportunity. If we examine Flushing's performance, they have successfully increased noninterest-bearing accounts at a strong pace throughout the year, gaining momentum. I believe that our Premier teams, who work in the areas where Flushing branches are located, will experience greater success since they can utilize that branch distribution network over time. A crucial aspect is that for both us and Flushing, becoming a larger and stronger regional bank will enhance our ability to attract top-tier talent. This makes us a more appealing option for commercial bankers who want a platform to enhance their brand, build their teams, and create their legacy. I see this opportunity in several ways. Flushing has been performing well independently, but we can likely improve outcomes with our Premier teams by leveraging the branch network. Moreover, we will be a more competitive destination overall. As we transition into the first few quarters as a combined entity, hopefully later this year, we will have a clearer understanding of what our growth rate might look like. The deposit markets we are targeting are extremely large. In the Northeast, it’s common to gain market share from existing competitors. There is substantial market share available in the areas we are entering. We are pleased with the branch distribution network and the communities and streets they serve, which should help us grow faster together than we could individually.

Christopher Marinac, Analyst

Great. That's helpful, Chris. And I guess, without getting too deep in the weeds, I mean, in general, it doesn't seem like what you had told us in late December really is dependent on adjusting these rates that, as you can have success later on that, then that creates future opportunities for earnings.

Christopher Maher, Chairman and CEO

Yes. We are considering our balance sheet, which involves various funding sources and assets within the bank. This gives us a chance to carefully evaluate the higher-cost deposits alongside lower-yielding loans and securities. We want to analyze this mix to identify where the highest-cost funding and lowest-yielding assets can work together more efficiently. This process is central to managing the balance sheet. We may not resolve everything by closing, but we expect to share valuable insights within 30 days after closing.

Operator, Operator

We now have David Bishop from Hovde Group.

David Bishop, Analyst

I have a quick question regarding the C&I growth, specifically for Joe. I'm interested in knowing which geographic areas are showing the strongest performance. Additionally, is any of this growth related to the expiration of noncompetes or restrictions that may have been placed on some of the lenders you hired over the past year?

Joseph Lebel, President

The good news is that our operations are quite geographically diverse, which I appreciate because we've hired lenders in various markets. We are experiencing some restrictions being lifted, even if they aren't truly significant limitations; people still feel a sense of obligation, and that's a valid observation. I expect that as our staff settles into their roles at OceanFirst, we will start to see more productivity from them. I wouldn't say there's anywhere that we're underperforming. Additionally, as I mentioned earlier, we've seen some positive contributions from Premier Bank, particularly in relation to their New York City-based clientele.

Christopher Maher, Chairman and CEO

There is a positive feedback loop as new bankers join. Initially, their first few clients require some time to onboard. However, once these clients have a positive experience, they share their feedback not only with friends but also with accountants and attorneys, which enhances our reputation. This leads to an easier process in attracting additional rounds of clients, and we see significant opportunities ahead.

David Bishop, Analyst

Got it. And I saw the earnings narrative on the deposit funding side, sounds like one large deposit client reset in terms of deposit rates from 0 upwards. I don't know, Pat or Joe, if you have that number in terms of maybe what the NIM headwind? And is that sort of just a onetime, ephemeral impact?

Patrick Barrett, CFO

Yes, it's a one-time occurrence. Customers often don't know where to allocate their funds, so they hold back from higher-earning promotional options if they think they might need the money. It stood out due to its size and is very rare, so we do not expect it to happen again.

Christopher Maher, Chairman and CEO

And it was fully reflected in Q4. It actually was kind of like a late Q3 thing. So you're not going to see that drag or provide a headwind going into Q1. So...

David Bishop, Analyst

And I know this number bumps around, especially at the end of the year, but did see a noticeable pickup in the early-stage delinquencies in the 30- to 89-day bucket. Any commentary there that could be driving that?

Christopher Maher, Chairman and CEO

Yes. It was just one loan, Dave, that has a federal government lease where the lease payment is a little bit late. So we don't have any concern in the long term, but it was already a loan that we had in the substandard bucket. We've been watching it because of that tenancy. So we'll give you an update as time goes on, but they have a good lease in place. It looks like it was just a payment issue, meaning their collection of their rent was just delayed administratively.

David Bishop, Analyst

Got it. And then maybe a holistic question for you, Chris. It looks like the Netflix studio is entering into sort of the final stages, they're building the studios, sound stages and such. Any thoughts about maybe is there a potential to sort of set up branches within that footprint or any sort of branding within that community or within that development to sort of take advantage of branding the company there and backing the caterers, the builders, et cetera? Do you see any sort of longer-term opportunities as that builds out?

Christopher Maher, Chairman and CEO

That's going to be a tremendous thing for Monmouth County, which is our second strongest county after Ocean County. So I think we've got a few branches that provide some good coverage for that market already. I don't know that we'll need to open other branches. But I'll make a broader comment. That's a great kind of boom to the Monmouth County market. But we continue to see over the course of our core, call it, the Jersey Shore market, that the post-pandemic period has been a seismic shift, more people were down at the shore more parts of the year. There's been a significant demand for the infrastructure you need, everything from hospital systems having to expand to hospitality and office and all sorts of stuff. So our core, our strongest market in kind of the Central New Jersey Shore is doing pretty well. And I think that's going to be a pretty sticky thing. We see that happening probably for several more quarters.

Operator, Operator

Next up, we have Matthew Breese from Stephens Inc.

Matthew Breese, Analyst

On Premier Banking, I guess I was a little bit surprised by the loan and deposit growth guide and outlook maintaining a 100% loan-to-deposit ratio. I was thinking once the Premier banking effort got up and running, there would be a reduction to that ratio. I was hoping you could maybe talk a little bit to that. And then the other one is, I know it's still early days with these teams, but on the DDA side, is 30% DDAs from Premier banking, that's still the right long-term number?

Christopher Maher, Chairman and CEO

I'll take the first side and then Joe can take the question about the noninterest bearing. In terms of the loan-to-deposit ratio, we'd like to see that down under 100%. On any particular quarter, it's a little bit of wait until the last few days as you see deposits come in or go out. I don't expect us to be a bank that's going to wind up at a 90% loan-to-deposit ratio, but I'd like to be substantially lower than 100%. I think we're going to see how things play out. We're opportunistic too about earnings and making sure that we've got the right earnings power. And I would note that we've got a very robust set of deposit verticals. So we have our consumer deposit vertical. We have a government banking vertical, we have our corporate cash management and C&I vertical, and we have the Premier vertical, which overlaps a lot with the C&I vertical. So we have a lot of different sources of deposits and feel comfortable running at the higher end, which is not unusual for banks in the Northeast. But to your point, we'd like to be further under 100%. I think you may see that over the next several quarters, but not dramatically under 100%.

Joseph Lebel, President

I think on the second half, Matt, I'd tell you that between 25% and 30% is actually, in my mind, still the right number. What we're hearing a lot from clients and clients that I've met personally is that their anticipation in midyear '25 or late-year '25 was a transition into full operating businesses coming across to OceanFirst in '26. So we still have a significant number of unfunded operating accounts that we've opened, getting ready for people to migrate. So I anticipate you're going to see a higher percentage of DDA as time goes on during the 2026 fiscal year.

Matthew Breese, Analyst

Got it. Okay. And then, Chris, going back to Flushing, you had mentioned that there were some higher-cost components. Of the $7.3 billion of Flushing deposits, could you just describe some of the business lines tied to the higher-cost components? And then oppositely, what are the highest-quality parts that you're more likely to keep and grow? What's on the whiteboard there?

Christopher Maher, Chairman and CEO

If you consider that everyone has various types of deposits, including those with promotional rates, you'll see examples like the national deposit vertical, iGObanking, or BankPurely, though they involve less capital. While it's essential for us to maintain these capabilities, they do come with higher costs. Government deposits tend to be pricier as they are often excess fund accounts, and competitiveness is required here. Furthermore, several money market accounts are designed to attract deposits, which also impacts pricing. However, there remains a substantial amount of long-term, high-quality deposits that have been associated with Flushing for many years. The bank has a rich history dating back to its charter in 1929, with strong ties in Queens and the Asian communities. Recently opened branches cater not just to Flushing, but also to areas like Bay Ridge and Lower Manhattan. The real potential lies in these enduring consumer accounts, many of which are linked to the Asian markets, along with several commercial clients maintaining operating accounts with us. All of these represent high-quality deposits. We may consider reducing the amount in iGObanking or some higher-yield money market products and higher-cost government accounts, distinguishing between high and lower quality. Every bank encounters similar scenarios, and we are also reviewing our own pricing strategies.

Matthew Breese, Analyst

Understood. Very helpful. And Pat, just looking at deposit costs up this quarter, and I know you mentioned there was an isolated incident. Obviously, Premier banking as a blend is higher than the average cost, could you help us out with the deposit cost outlook for the year? Where do we peak and without any rate cuts or using your rate cuts to kind of forecast, where do you expect deposit cost to be at the end of the year?

Patrick Barrett, CFO

Yes. I am not going to give you a guess of where deposit costs are going to be at the end of the year, but I do think that they're going to keep coming down. They are coming down. They're lagging a little bit from a speed of repricing relative to rate cuts, which is exactly what happened when we were in an uprate environment, we lagged before they started going up. So I think we're seeing the same kind of things. So starting off slowly, repricing and then picking up. I'm encouraged by the fact that all of our spot rates across all of our deposit types are noticeably lower than the averages for the quarter. So they are steadily coming down already. Rate cuts help because there's a lot of promotionally-priced stuff. It's not contractually indexed, but a lot of the larger promotional balances definitely are linked there. And frankly, the pace of loan growth and the opportunity for loan growth is going to drive a lot of how that ends up occurring, similar to the loan-to-deposit ratio. It's less something that we drive the business towards rather than an outcome. And if there's high-quality loan growth that is a little bit higher than our deposit growth outlook, then we'll probably fill the buckets with some higher-cost deposits just to secure the longer-term lending relationships. So I think you'll probably see deposit costs and loan yields roughly moving in line with each other with a slight edge on the loan yields due to growth, and that's going to drive our margin, I think, steadily improving as we move through the year, a handful of basis points every quarter. That's a backhanded way of not answering your question exactly. So...

Matthew Breese, Analyst

All very helpful. To focus on one category that appears to have the most potential, your time deposit costs were at 3.64% at the end of the quarter. What is the blended all-in cost of CDs, considering there will be some promotional factors included? What is the overall blend of resets?

Christopher Maher, Chairman and CEO

Yes. One thing I want to point out, Matt, is that regarding the balance sheet restructuring, as we discussed earlier, that's our top priority for reducing costs. We don't have a large amount of brokered deposits, but we do have some, and we've maintained very short durations on those. As we focus on the combined balance sheet with Flushing, our first step will be allowing those brokered deposits to run off, which are currently in the high threes but decreasing. Even if we retained them, they would still be decreasing. I see a strong opportunity there, and the weighted average duration on those is under 6 months, right, Pat?

Patrick Barrett, CFO

Yes. It's about 4 months. So we can pretty rapidly change prices, and we actually do. We don't wait for a rate cut and mess around with kind of daily changes, and we see are we able to keep rollover balances or not? Are we attracting any new balances or not? With, again, that being just one of the components of the funding base that we need to maintain to support whatever the loan growth rate is.

Operator, Operator

And that is it for all the questions. Thank you, everyone, for participating on that. And the Q&A is now clear, and I'll hand it back to Chris Maher for some final remarks.

Christopher Maher, Chairman and CEO

All right. Thank you. We appreciate your time today and your continued support of OceanFirst Financial Corp. We look forward to speaking with you in April about our first quarter results. Thanks very much. Bye.

Operator, Operator

And this concludes today's call. Thank you all for joining. You may now disconnect your lines. Have a great one.