Earnings Call Transcript - OFG Q1 2021

Operator, Operator

Good morning. Thank you for joining OFG Bancorp's Conference Call. My name is Maria, and I will be your conference operator today. Our speakers are Jose Rafael Fernandez, Chief Executive Officer and Vice Chair of the Board of Directors; and Maritza Arizmendi, Chief Financial Officer. A presentation accompanies today's remarks and can be found on our Investor Relations website in the 'What's New' box or on the quarterly results page. This call may feature certain forward-looking statements about management's goals, plans, and expectations. These statements are subject to risks and uncertainties outlined in the Risk Factors section of OFG's SEC filings. Actual results may differ materially from those currently anticipated. We disclaim any obligation to update information disclosed in this call as a result of developments that occur afterwards. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions will be given at that time. I would now like to turn the call over to Mr. Fernandez.

Jose Rafael Fernandez, CEO

Good morning and thank you for joining us. Before we dive into the main part of our presentation today, I’d like to express my views on the trends in Puerto Rico and how they relate to our businesses at OFG. After nearly 17 years as CEO, I feel more optimistic than ever about both Puerto Rico and OFG. We may not be completely out of the challenges yet, but the Island is in a much better position than it was last year, and our outlook is favorable compared to the past two decades. In terms of the microeconomic landscape, we are hopeful about the influx of federal stimulus and reconstruction funds, the increased financial resources available to individuals and small to medium enterprises, delays in vaccinations, and the resolution of the Island's bankruptcy. All of this has contributed to an overall enhancement of Puerto Rico's economy. I hope this perspective aids investors in recognizing the significant turning point we are experiencing and our ability to consistently deliver solid results as past macro challenges are resolved. At OFG, our businesses are gaining substantial momentum, placing us in an excellent position to expand our market share in the future. Let’s proceed to page three and begin our presentation. Coupled with the continued success of our strategies that emphasize agility and service, we achieved very strong results in the first quarter, while also enhancing our commitment to assist our customers, our employees, and our communities throughout the pandemic and beyond. For our customers, our exclusive digital PPP portal facilitated access to an additional $126 million in credit for small businesses to keep their operations running and staff employed. Our teams assisted former Scotiabank customers in onboarding and utilizing our enhanced online mobile ATM and ITM services. For our employees, we facilitated vaccinations, with over 40% already inoculated. We maintained our COVID-related expenditures to safeguard our staff and customers and increased our investment as planned to create a more secure hybrid infrastructure that allows our teams to work seamlessly from home or the office. For our communities, we initiated a new outreach program to support small businesses affected by COVID, helping them to navigate these challenging times. We also hosted virtual seminars during Women's History Month and sponsored seminars for aspiring college entrepreneurs to better understand how innovation can address business and community challenges. Please turn to page four. Confirming our long-term strategy of delivering digital solutions to our customers to simplify their experiences, our overall digital adoption continued to rise. This is evident in the slide showing the adoption rates across various digital solutions. These rates illustrate our progress in advancing our digital strategy, particularly during COVID, and importantly, how customers are continuing to utilize online solutions even as restrictions ease and the economy opens up. A notable example is our customers’ ongoing use of our online and mobile platforms to set up branch appointments, totaling around 8,800 in the first quarter. Our aim is to show customers the ease and convenience of our digital technology for routine transactions, allowing our employees to provide more value-added services, strengthen relationships, and ultimately create greater business development opportunities. Please turn to page five to review our first quarter results. We reported earnings per share of $0.56, an increase from $0.42 in the fourth quarter and a recovery from breakeven in the same quarter last year when the pandemic began. Total core revenues reached $128 million. Net interest income was $98 million, benefiting from PPP loan fees and reduced deposit costs. The provision amount was $6.3 million, primarily due to better economic conditions and credit trends, including the release of some COVID-related loan reserves, offset slightly by provisions for a commercial loan in workout prior to COVID. The allowance remained largely unchanged. The net interest margin increased to 4.26% compared to the fourth quarter. Banking and Wealth Management revenues amounted to $29 million, similar to the fourth quarter upon excluding seasonal factors. First quarter fee revenue showed strong mortgage banking performance, with a consistent increase in origination and servicing fees as a result of the Scotiabank acquisition. Non-interest expenses totaled $78 million, remaining relatively flat after accounting for merger costs in the fourth quarter and non-core items in this first quarter. Our first quarter expenses aligned with our previously communicated spending plans for the year. The effective tax rate was 32%, compared to 22% in the fourth quarter. Examining the balance sheet, assets increased compared to December 31st, reflecting higher cash balances. Loans declined due to increased mortgage refinancing activity and, to a lesser extent, businesses with raised liquidity levels repaying lines of credit. We had robust loan production of $528 million, with positive momentum and strong pipelines across all business lines. Additionally, we saw significant deposit growth attributed to new PPP loans and COVID relief payments. Capital continues to grow, and we are beginning to return some of that to shareholders through increased common dividends and optimizing the capital stack with the redemption of preferred shares. In January, we raised the regular quarterly common cash dividend by 14%. In March, we announced the redemption of all outstanding series of preferred stock. This improves our capital structure, allowing us to effectively deploy excess liquidity and increase net income available to shareholders by $6.5 million on an annualized basis. Stockholders' equity rose to $1.11 billion. I would also highlight that as of the first quarter, we have fully recovered all tangible book value per common share dilution anticipated from the Scotiabank acquisition, significantly ahead of expectations. In summary, the first quarter reflected another strong performance, bolstered by the recovery of the Island's economy, solid loan generation, improving payment activities and credit trends, along with good banking and financial services fees. Now, here's Maritza to provide further details on the financials.

Maritza Arizmendi Diaz, CFO

Thank you, Jose. Please turn to page six for our financial highlights. First quarter core revenues were $127.7 million. This compares to $132.8 million in the fourth quarter. First quarter revenues included $1.6 million in interest income from $92 million of PPP loans that were forgiven. First quarter revenues included three items; $3.9 million in non-interest income from annual insurance commissions, $3.1 million in interest income from acquired loan prepayments, and $2 million in mortgage sales that were held back from the third quarter. When we take all that into consideration, core revenues increased $2.3 million or 1.9%. This was driven by $1.4 million in lower cost of deposits and higher mortgage banking activities. First quarter non-interest expense totaled $7.7 million. This compares to $89 million in the fourth quarter. The first quarter reflected previously-announced cost savings. These included $1.8 million primarily in gains on sales and improved valuations of foreclosed properties. The first quarter included $10.1 million in merger and restructuring expenses. As a result, the efficiency ratio improved to 60.84% from 67.06% in the fourth quarter and 66.49% in the year-ago quarter. Our objective is to return to the mid-50% range. Looking at our performance metrics, return on average assets increased to 1.21% from 94 basis points in the fourth quarter and virtually zero in the year ago quarter. Our objective continued to be a return on average assets above 1%. Return on average tangible common equity rose to 13.11% compared to 9.9% in the fourth quarter and virtually zero in the year-ago quarter. Our objective continues to be achieving a return on average tangible common equity of above 12%. We were pleased to see that all of our key performance metrics significantly improved. Looking at capital, tangible book value was $17.39 per share, that's an increase of 11.5% year-over-year and 2.5% from the fourth quarter. The CET1 ratio increased to 13.56%. Please turn to page seven for our operational highlights. Average loan balances were $6.6 billion, a decline of 1% from the fourth quarter. Most of that was in our mortgage portfolio. This is to be expected, considering the high level of refinancing activity in Puerto Rico and our strategy of selling most of our own new production. Average core deposits were $8.5 billion, an increase of 1% from the fourth quarter. This reflects the continued high liquidity in the economy from federal stimulus which is specifically meaningful in Puerto Rico, as well as our first quarter PPP loan. As Jose mentioned, loan generation totaled $528 million or $401 million excluding PPP originations. In addition to PPP production, loan generation was driven by strong year-over-year increases in mortgage, auto, and commercial lending. Mortgage reflected the new home sales and refinancing. Auto reflected the strong sales of new and used cars. Most of our commercial lending was with small and medium-sized businesses. Loan yield was 6.61%, an increase of six basis points from the fourth quarter, largely due to PPP loan forgiveness. As anticipated in our last call, a reduction in CD balances helped drive the decline in cost of funds. Cost of core deposits was 48 basis points, a decline of five basis points from the fourth quarter. We expect the cost of core deposits to continue to improve this year as more CD balances are priced lower. During the first quarter, we acquired $127 million of mortgage-backed securities for our held-to-maturity portfolio. The result means that NIM increased two basis points on the fourth quarter. We expect stable NIM this year. Please turn to page eight. Overall, credit trended positive across all portfolios. Our credit metrics also align with the general improving trends we have seen on a fairly consistent basis. Total net charge-offs were $9.1 million or 0.55% of total loans. This is a decline compared to the net charge-off of $44.8 million or 2.67% in the fourth quarter, which included a $31.2 million charge-off to acquire Scotiabank loans that were substantially and previously reserved. With the exception of the fourth quarter of 2020, the charge-off rate has been improving steadily from the first quarter of 2019. I'd like to highlight the overall charge-off rate. This fell to 0.85% in the first quarter from 1.56% in the fourth quarter and 2.1% in the year-ago quarter. Our non-performing loan rate and our early and total delinquency rate also declined from the fourth quarter. In particular, the early delinquency rate fell to 2.15% in the first quarter from 2.68% in the fourth quarter and 3.16% in the year-ago quarter. Provision declined from $14.2 million in the fourth quarter. You should note that the fourth quarter included $4.7 million to cover the unreserved amount of the Scotia loan that was charged off. The first quarter provision included our reserve release of $3.7 million. This reflects changes in our probability weights to the results of simulation using Moody's S3 and baseline scenarios. The first quarter also included a provision of $3.5 million for a commercial loan in workout prior to the pandemic. Excluding the large provision in the year ago quarter, provisions have also been declining steadily from the fourth quarter of 2019. Now, here is Jose.

Jose Rafael Fernandez, CEO

Thank you, Maritza. Please turn to page nine for our conclusion. Culture, history, team, and our fácil, rápido, hecho approach are continuing to prove both successful and adaptable. As I said earlier, we're building good momentum in all our businesses. Our excess, low-cost, core deposits continue to provide us with significant dry powder. Our most recent capital actions solidify our record of deploying and returning capital to shareholders. Our agenda remains the same. We will continue as planned to invest for the future in transforming our business model. Our goal is to further simplify operations, to improve efficiency, and enhance our ability to serve customers. Our business focus is to utilize our excess liquidity, increase loan generation, and grow fee income. We still face challenges from COVID, high unemployment levels, our government's ability to effectively deploy federal stimulus and reconstruction funds, and high cost of electricity, but the future is looking brighter. The Island is experiencing early signs of recovery with individuals and businesses benefiting from COVID relief and stimulus, vaccination being extensively deployed, reconstruction projects getting underway, and a consensual agreement in principle to restructure Puerto Rico's debt and an end to out-migration last year, with signs of possible in-migration this year. At OFG, we're more than ready to benefit from and play a major role in the recovery of Puerto Rico and the U.S. Virgin Islands. We want to help our customers rise up and fulfill their lives again. With this, we end our formal presentation. Thank you all for listening. Operator, please start the Q&A.

Operator, Operator

Thank you. Our first question comes from Alex Twerdahl of Piper Sandler.

Alexander Twerdahl, Analyst

Hey, good morning.

Jose Rafael Fernandez, CEO

Good morning, Alex.

Alexander Twerdahl, Analyst

First off, Jose, I appreciate your comments on how optimistic you are; I guess, the most optimistic in 17 years. I was wondering if you can give us a little bit more details. You kind of alluded to a few things such as potential in-migration to the Island. But are you able to see anything else in the numbers for job creation or real estate valuations or actual concrete data on population inflows that you're able to share with us?

Jose Rafael Fernandez, CEO

Yeah. So, Alex, from a macro perspective, Puerto Rico's economy is starting to show signs of recovery in terms of the economic activity that we are seeing, particularly we saw last year that there was net zero migration. So, when you compare that to 2019 and 2018, where we had 70-plus, 60-plus thousand people net migration, 2020 was a very positive year from that end. So, we expect, and we're starting to see the need for workers, particularly lower line workers. Entry-level workers are needed in several industries, including agriculture, construction, medical services, and even education. We're starting to see that need. As the economy opens, we see the opportunity for some of those that left to come back. Historically, when Puerto Rico's economy enters a downturn, there is migration to the U.S., and then when the economy starts to recover, you see some of that migration returning. The challenge we've had in the recent past is that the economic challenges have lasted for almost two decades, so we haven't seen that migration returning. Our expectation is that while it won't come back in droves immediately, as the economy in Puerto Rico starts to show signs of higher economic activity, we expect that to occur towards the end of this year and the beginning of next year. We will see some of those people who left come back because opportunities will arise. We are seeing that activity moving from our customers; on the consumer side, we're seeing the construction side. Some of our customers are very active, so our expectation is for the economy to grow from here.

Alexander Twerdahl, Analyst

No, that's helpful color. Just kind of the next step from that is, I think you said, maybe see it more than the numbers starting at the tail end of this year. I mean, is that the same timeframe that we should be expecting to see an inflection point as loan balances, excluding PPP; how should we be thinking about those …?

Jose Rafael Fernandez, CEO

Yeah. You asked me a couple of questions in that one, but I'll try to answer them all. Regarding loan growth, I actually think that the liquidity levels that we have in Puerto Rico, and for sure in the financial systems are very high, and they will continue to increase because the first quarter numbers do not reflect any of the $1,200 stimulus checks, as they are just starting to send them to residents and deposit them in their accounts just a couple of weeks ago. The deposit growth you're seeing is primarily from the $600 stimulus checks, not the $1,200 ones. So, I suspect that we will have more liquidity in the system. Regarding loan growth, we will see consumers and businesses with higher levels of liquidity, which will lead to paying down some of those credit balances they have, such as credit cards, auto loans, and lines of credit for businesses. So, I would not expect significant loan growth by the end of the year, but our expectation is that by next year, when that liquidity starts to subside, individuals and small businesses will start utilizing those deposits, and we'll see loan growth into next year, meaning the calendar year 2022.

Alexander Twerdahl, Analyst

That's great color. And just the final one for me. Regarding capital, some nice actions we saw in the first quarter with the dividend and preferred. But could you tell us what you see as your governing capital ratio and what your target for that might be, along with your priorities for getting to that target?

Jose Rafael Fernandez, CEO

Thanks for the question. Let's first look back here for a second if you allow me. The preferred shares we were redeeming were two of them issued in 2004 when I became CEO, and one was issued when we acquired BBVA in 2011 or 2012. When you consider our history, we are the only bank that has always paid those dividends fully and never stopped paying them. We are extremely proud of that and managed through difficult economic times. Short-term, we need to deal with the execution of that redemption and will finish it off in the second quarter. Regarding what we've done with a common dividend, we increased that in January. Our Board of Directors decided to review the dividend twice a year, at the beginning and middle of the year, to ensure our common shareholders also receive appropriate returns. Long-term, we want to see how the Puerto Rico economy reopens, how it grows, and what organic opportunities we have to deploy that excess capital and liquidity. Currently, our common equity tier one capital ratio is 13.56%. The economic reopening plays out as we expect, and the economy grows consistently in the coming years. We are confident about it, but we will face challenges.

Alexander Twerdahl, Analyst

Okay. And then, just as a follow-up to that, is there a target payout ratio for the dividend? You are around 14% now, which seems a little low for a bank of your size, how should we think about the target payout ratio?

Jose Rafael Fernandez, CEO

The payout ratio for the dividend is why the Board decided to look at the dividend twice a year, because we want to move toward a more normal payout ratio, which is closer to 25%. So, we aim to build towards that. Regarding share repurchase, I think it's too early to discuss that at this point. Let's focus on the redemption and the dividend review. We want to have enough capital available to lend to our commercial and individual clients. We will provide more news on this in the coming quarters, but right now, our focus is on the redemption of the preferreds and the dividend review.

Alexander Twerdahl, Analyst

Thank you for taking my questions.

Jose Rafael Fernandez, CEO

Thank you for your questions, Alex.

Operator, Operator

Our next question comes from Glen Manna of Keefe, Bruyette, & Woods.

Glen Manna, Analyst

Yes. Hi, good morning.

Jose Rafael Fernandez, CEO

Good morning, Glen. How are you?

Glen Manna, Analyst

I'm well. Thank you. I just wanted to follow up on conditions on the Island. There was a significant announcement last week indicating projects on the Island could be approved more rapidly than in the last few years. COVID caused depletion in inventory. What are you hearing from your customers and how they're gearing up for those two events, maybe in terms of inventory restocking and upcoming projects?

Jose Rafael Fernandez, CEO

Thank you for your question, Glen. Let me say that since the beginning of the year, the Washington executive branch and Congress has been much more constructive regarding Puerto Rico. The current governor of Puerto Rico has worked positively in regaining the confidence of Congress and the executive branch. The current administration is also constructively working with the fiscal board, helping to reach some agreements in principle. It looks like we're on a very positive path to getting bankruptcy behind us later this year or next year. Regarding what our commercial clients are saying, they are engaged and have been on the rebuilding of roads, bridges, and infrastructure, and we're starting to see new projects coming in. Some construction services companies are increasing their activity levels. We expect to see home construction from the CDBG funds being released soon. There is a need for workers, which I believe is temporary, but there's an opportunity here to add workforce, especially in reconstruction as the economic revival begins with construction. From the consumer side, auto sales and retail are doing well, although there are some inventory challenges that are affecting certain sectors.

Glen Manna, Analyst

Thank you. You mentioned your digital numbers and that they have stuck after COVID, which aligns with the theory that once someone goes digital, they tend not to go back. What do you think that means for the future of branching on the Island, and what is the right size of a franchise footprint?

Jose Rafael Fernandez, CEO

The future of branches on the Island is similar to that in the United States. Digital adoption is here to stay and grow. We have been on that side of the equation for the last five years. COVID-19 has accelerated that process. Our job now is to continue providing that infrastructure, digital solutions, and help customers understand the benefits of it. Customers are starting to understand that branches are not just places to cash checks or pay loans; they are where they can have valuable conversations with our expert bankers about their financial goals and aspirations. The right size of branches is hard to define, but we are being methodical about it. In the next several years, you will see us continue to push digital solutions and provide added value to our customers.

Glen Manna, Analyst

Is there any point where you might change your strategy on managing your mortgage loan production and perhaps portfolio some of that residential mortgage?

Jose Rafael Fernandez, CEO

At some point, we may start to see that it makes sense to keep some of that residential mortgage production on our books. However, for now, most of our originations are 30-year fixed-rate mortgages. We prefer not to over-utilize excess liquidity and manage our cost of funds. Interest rates need to rise for us to feel more comfortable holding those loans. We've recently bought some mortgage-backed securities, indicating we may keep an eye on the market, but ultimately, we are focused on managing liquidity levels strategically.

Glen Manna, Analyst

Regarding the $126 million in mortgage-backed securities mentioned, is this the beginning of something larger, or what's your outlook on that?

Jose Rafael Fernandez, CEO

This is not the beginning of anything in particular. It’s just us managing our assets and liabilities, ensuring we can be opportunistic with increases in interest rates. We believe the U.S. economy will grow significantly this year and next, leading to higher interest rates. We’re in no rush to enter into long positions on our investment portfolio at this level; this was a tactical decision.

Glen Manna, Analyst

Thank you for taking my questions.

Jose Rafael Fernandez, CEO

You're welcome, Glen. Thank you for your questions.

Operator, Operator

Our next question comes from Steven Martin of Slater.

Steven Martin, Analyst

Thanks a lot. I'm a recent shareholder and had been building my position over the last six months. Can you address the prospect of statehood and its potential benefits, talk about what may be in the Biden infrastructure plan to benefit Puerto Rico, and how you see the hospitality industry recovering from COVID and the hurricane?

Jose Rafael Fernandez, CEO

Welcome to our call and thank you for being a shareholder. Regarding hospitality, the pandemic has affected this sector in Puerto Rico significantly. Most of our hospitality commercial clients received deferrals, and most are now out of those deferrals. We have seen hotel bookings and occupancy rates increasing to levels around 60-65% during specific weekends and holidays, but general occupancy is still well below pre-pandemic levels, in the 30-40% range. Higher-end hotels are seeing solid bookings while more casual hotels are facing challenges. I believe the hospitality sector will recover nicely from COVID because of the charm of Puerto Rico as a Caribbean destination. In regards to the Biden infrastructure plan, while I don’t have specifics, we expect Puerto Rico to be included as a beneficiary. We think there will be infrastructure funds coming which will effect change and improvement here. As for statehood, that has been a longstanding question. There exists division on this issue in Puerto Rico, making it difficult for Congress to progress on the matter. Thus, it’s hard to envision statehood happening in the short term.

Steven Martin, Analyst

Thank you very much.

Jose Rafael Fernandez, CEO

You're welcome. Thank you for your questions.

Operator, Operator

Our next question comes from Alex Twerdahl of Piper Sandler.

Alexander Twerdahl, Analyst

Hey. Just had a couple technical follow-up questions. First off, Maritza, I think you said that the NIM, you expected NIM to be stable for 2021 rather. Could you walk through the assumptions on that?

Maritza Arizmendi, CFO

Yes. I think, Alex, you identified the key items we're looking at in the next couple of quarters. We still see additional cash coming in. The most recent stimulus will also bring more cash, which could put pressure on our earnings. The lower costs of funds should help compensate that pressure in the cash balance, so our scenario is to maintain stable NIM for the rest of the year.

Alexander Twerdahl, Analyst

One thing that jumped out at me is that the cost of deposits in now accounts and savings accounts increased a little bit in the first quarter. Could you touch on what caused that? Do you see an opportunity here to lower the cost of deposits more aggressively?

Jose Rafael Fernandez, CEO

We mentioned last quarter that we finished the integration with Scotiabank. Some of the CDs that are maturing have led to an increase in deposits in savings and checking accounts. We decided to take care of our customers and not put additional stress on them during the integration process. Now that we’re seeing CDs maturing, we anticipate re-examining those accounts to possibly lower costs, but we didn’t want to rock the boat at a time when we were integrating our systems.

Alexander Twerdahl, Analyst

Are you able to share the expected dollar amount for CD repricing for the second, third, and fourth quarters?

Jose Rafael Fernandez, CEO

I don’t have that information with me right now, but we can provide that to you at a later time.

Alexander Twerdahl, Analyst

Okay. The efficiency ratio you’re targeting is in the mid-50% range. What timeframe are you thinking for achieving that? Does it depend on rate environment or will it come from the balance sheet?

Maritza Arizmendi, CFO

It will likely require a bit of a break with higher interest rates to more comfortably achieve that goal. We’re optimistic about what 2022 will bring in terms of fee generation and net interest income, so it might take a year or so to achieve the mid-50% efficiency ratio. We’re working on reducing our cost structure while also investing in technology and infrastructure for future improvement.

Alexander Twerdahl, Analyst

You crossed the $10 billion threshold again this quarter. Is that something you’re committed to maintaining, or is there potential for remixing that could lead to delaying Durbin?

Jose Rafael Fernandez, CEO

I don’t think there's any going back now. We crossed $10 billion and we've established ourselves at that level. The regulations are clear, so we need to focus on executing and making the necessary investments.

Alexander Twerdahl, Analyst

Understood. Lastly, regarding the write-up on foreclosed properties, can you detail whether that’s from commercial or residential properties and what’s leading to these gains?

Jose Rafael Fernandez, CEO

It's primarily residential mortgage properties. We are seeing home values beginning to rise, not skyrocketing, but they are improving. We are observing young professionals moving from renting to buying, and that speaks to the current real estate dynamics, indicating a recovery in value.

Alexander Twerdahl, Analyst

Thank you for taking my questions.

Jose Rafael Fernandez, CEO

You're welcome. Thank you for your questions.

Operator, Operator

Jose, can you talk to us about what you're seeing on Moody's economic forecast real-time? And does that appropriately capture the informal economy, workers getting paid in cash, etc.? How much does this factor into your thinking?

Unidentified Analyst, Analyst

What's the latest you're hearing on increased activity out of pharmaceutical companies in Puerto Rico and any efforts to attract additional pharmaceutical activity on the Island?

Jose Rafael Fernandez, CEO

The last information I have is that two smaller pharmaceuticals are moving their production to Puerto Rico. They established some production on the Island, which was announced recently. About 25% of Puerto Rico's GDP comes from pharmaceuticals and medical devices, and we produce a significant percentage of global medications. With COVID, the opportunity exists to further optimize this infrastructure. Political dynamics may complicate the full realization of that potential, but we remain optimistic about this sector.

Unidentified Analyst, Analyst

Thank you.

Jose Rafael Fernandez, CEO

Thank you for your questions.

Operator, Operator

We have now reached the top of the hour. Does anyone have any final questions?

Jose Rafael Fernandez, CEO

If there are no other questions, I thank the operator for coordinating this call. I would like to thank all our team members who have helped our customers through the pandemic. They have done an outstanding job. Thanks to all our stakeholders for listening today. Looking forward to our next call. Have a great day.

Operator, Operator

Thank you. This concludes today's call. You may now disconnect.