Citizens Republic Bancorp, Inc. Q1 2010 Earnings Call Transcript

Apr.23.10 | About: Citizens Republic (CRBC)

Citizens Republic Bancorp, Inc. (NASDAQ:CRBC)

Q1 2010 Earnings Call

April 23, 2010; 10:00am ET


Cathy Nash - President & Chief Executive Officer

Charlie Christy - Chief Financial Officer

Mark Widawski - Chief Credit Officer

Brian Boike - Treasurer

Kristine Brenner - Investor Relations


Terry McEvoy - Oppenheimer & Co

Eileen Rooney - Keefe Bruyette & Woods Inc.


Good day everyone and welcome to today’s program. (Operator Instructions) It’s now my pleasure to turn the conference over to Kristine Brenner.

Kristine Brenner

Thank you Beth, and good morning. Welcome to the Citizens Republic Bank Corp first quarter conference call. This call is being recorded and a telephone replay will be available through April 30. This call is also being simulcast live on our website, where it will be archived for 90 days.

I have with me this morning Cathy Nash, President and Chief Executive Officer; Charlie Christy, Chief Financial Officer; and Mark Widawski, Chief Credit Officer, all who may have comments to share with you this morning. Brian Boike, our Treasurer is also here to answer questions. After management concludes their prepared remarks, we will open the line up for questions from research analysts.

During this conference call, statements maybe made that are not historical facts, such as those regarding Citizen’s future, financial and operating results, plans, objectives, expectations and intentions. Such forward-looking statements are subject to risks and uncertainties, which include but are not limited to those discussed in Citizens’ annual and quarterly reports filed with the SEC.

Forward-looking statements are not guarantees of future performance, and actual results could differ materially. These forward-looking statements reflect management’s judgment as of today, and we expressly disclaim any obligation to update or revise information contained in these statements in the future.

Now, I’d like to turn the call over to our President and Chief Executive Officer, Cathy Nash. Cathy.

Cathy Nash

Thanks Kristine. I appreciate those of you who have joint us on the call today. I’ll make some opening remarks and then Charlie will take us through the performance details, and Mark will cover the credit performance.

Although there was some noise this quarter in our results, we are pleased with the improvement in our pretax, pre provision core operating earning, but let me explain the items causing the noise and then talk about some of the highlights for the quarter.

First, at the end of the quarter we decided to see non-performing residential loans. In the past we said that we would carefully consider bulk sales because of their impact to capital. We also have noted our concern with the residential mortgage portfolio, and recent trends have done nothing to raise our concern.

Last week Realty Track recorded that the number of US homes taken over by banks jumped 35% in the first quarter from the year ago. In addition household-facing foreclosure grew 16% in the same period, and 7% from the last three months of 2009.

Since we continue to see extensions and redemptions periods increase severity and for increases in our carrying cost, we came to the conclusion that selling these loans now and recognizing losses earlier is better for us in the long run. Even with the sale let me emphases that we are still inline with the credit forecast we established for ourselves early last year.

Second, with the pending sale of F&M Bank, our Iowa franchised which we expect to close later today, we have removed all of their results and have shown them as discontinued operations in all periods recording. In the first quarter our results reflect the fair value adjustments that we needed to record in anticipation of the sale. If you remember, the sale of our Iowa subsidiary will increase our holing company cash by about $50 million.

Now let me cover some highlights of the quarter. Our pretax, pre-provision core earnings are up $1.6 million or 5% over the fourth quarter, just $34.7 million. This was despite a shrinking loan portfolio, which was down about 4.5% from last quarter. It also does not include the $6 million gain we had from our investment securities sale.

The improvement we saw was due to a slight improvement in non-interest income, as well as lower levels of non-inters expense as we continue to benefit from the strategic alignment we discussed in the past. Our net interest margin improved slightly to 314 basis points. This is the fourth quarter in a row where we saw improvements.

On the credit side I’m pleased to report we had another quarter of improved metrics. Our delinquencies are down for the second straight quarter. Total delinquent loans are $143 million or 1.92% of the portfolio compared to $155 million or 1.98% at the end of the fourth quarter.

Our watch list has declined again this quarter in terms of absolute dollars. As a percent, the loan portfolio was up slightly because our total loans declined. Our total non-performing assets decreased. Total non-performing assets were $556 million at the end of March, compared to $594 million at the end of December.

On the deposit side, our core deposits are up slightly over last quarter. In this economic environment when consumers and small business are struggling, we are pleased that we’ve been able to grow our core deposits. We’ve added over 9200 new clients so far this quarter, and we’ve had some of the next retentions rates in the industry. I think this reflects our success in marking sure we stayed focused on our clients despite the economic challenges.

Our balance sheet remains strong. Our allowance for loan losses as a percent of portfolio loans is 4.33%, compared to 3.24% last year at the same time. We continue to maintain strong capital levels in excess of the minimums to be considered well capitalized. Our estimated Tier 1 capital ratio stands at 12.03% and total risk based capitals at 13.40%.

I will now turn the call over to Charles Christy, and he will take us through some of the details of our results Charlie.

Charles Christy

Thanks Cathy. Our balance sheet perspective compared to last quarter, totaled average earning assets were down $35.1 million, primarily due to decreases in the loan portfolio, which were off set by an increase in the investment portfolio and money market investments.

At quarter end, total loans were down $349 million from the fourth quarter. Total commercial loans, commercial real estate and C&I were down by $140 million, while total consumer loans, mortgage direct and indirect were down by $209 million. Part of the decrease in consumer loans reflects the sales of non-performing residential mortgage loans as Cathy mentioned.

We haven’t seen a pick up in demand yet from credit-worthy borrowers. The economic conditions in our markets are still causing a lack of demand; however as we noted last quarter, we are starting to see signs to stabilization.

As evidenced, Michigan’s total employment; not unemployment but employment has remained flat for 10 consecutive months. Michigan’s personal income grew at 3.8% annual phase in the fourth quarter, which is in the top half of all states and in January and February new house improvements were 70% higher than they were in 2009.

In the first quarter we have proved or renewed over $400 million in commercial loans and over $100 million of consumer loans. We continue to hold an abundance of short-term liquid assets. On average it was almost $700 million during the quarter. We expect to see that surplus trend to trend downward over the next few quarters as wholesale borrowings mature.

In the first quarter we sold a $148 million on municipal bonds from our investment securities portfolio and used the process to buy Ginnie Mae securities. We recorded net gain of $6 million on the sale. This transaction made a lot of sense due to a number of additional factors. Hence we are in the tax loss position, and we are no longer able to benefit from holding the tax of municipal securities.

From a liquidity perspective, Ginnie Mae securities are a much higher quality form of collateral for borrowing purposes, and are much more liquid. For regulatory capital purposes Ginnie Mae securities having a 0% risk rating versus 20% or 50% from Munich depending on type, together with the gain and this benefit of our capital ratios by 11 basis points. This transaction strengthened our capital and liquidity positions by also improving the risk profile of our investment portfolio.

Total deposits were down slightly by $20 million from the fourth quarter. Core deposits were up $26 million from the last quarter and were up $277 million or 6.1% from the first quarter of last year. Time deposits were down slightly by $45 million from last quarter. Other than some shift in that maturing time deposits since in more liquid savings and checking deposits, overall total core-client deposit trends remained very stable.

Moving on to our pre-tax pre-provision core operating earnings included in our release. For the first quarter our pre-tax pre-provision or we like to call PPP, operating earnings totaled $34.7 million, up 5% from the previous quarter. The increase reflects a slight improvement in our non-interest income and lower levels in non-interest expenses.

Compared to the first quarter of last year, PPP is up $8 million or 30%. The key drivers for this increase over last year are higher net-interest income due to increases in our overall spread, and an increase on interest income. As Cathy mentioned we are pleased with a positive PPP, as it reflects the work we’ve done and remain focused on generating revenue and operating as efficiently as possible throughout this cycle.

Lets review the key components of the income statement. Net interest income was down slightly from the fourth quarter due to fewer days in the quarter, while our net interest margin percentage was also relatively flat at 3.14%, up from 3.13%.

Interest expense on deposits was down due to the re-pricing of large time deposit blocks in the fourth quarter and early part of the first quarter, calling higher rate brokered CDs and replacing them at lower rates, and a decrease in price competition for savings and interest bearing checking accounts. A decrease in interest expenses and continued improvement in loan spreads more than offset the decrease in interest income from the lower loan portfolio balances.

Total net charge offs were $117.9 million, while our provision for loan loss was $101.4 million. Total net charge offs included $74.2 million related to the non-performing residential mortgage loan sale that Cathy mentioned earlier. Commercial real estate net charge offs are down $25.9 million, but we expect the CDs to increase in the second quarter as we work through recent inflows to non-performing status.

C&I net charge offs were down $9.5 million, and consumer net charge offs were down $2.2 million excluding the charge related to the transfer of residential non-performing loans to help the sale. As Cathy noted, all this was in line with our credit forecast and expectations. The first quarter results do not change our view of the loss content in our portfolios as we continue to perform along our base line forecast, which we established a year ago.

I like to talk about the loan sale for a minute. Cathy explained the rational behind the decision to sell these loans, but I just to want to explain the accounting. We are selling various non-performing residential mortgage loans, lot loans, mobile homes and ORE properties, which have a wide range of indicative pricing. The purposely marked them down on the conservative basis in the transfer to loans held for sale.

In addition to the $74 million charge off, we also recorded write-down to the similar existing loans held for sale and ORE properties. We expect to complete the sale of these assets during the second quarter.

As I said in the past delinquency turns are generally a leading indicator of credit-trends. For the second quarter in a row our delinquencies were down totaling $143 million at the end of the first quarter. This was down $11.4 million or 7.4% from the fourth quarter, and its down $147 million from the fourth quarter 2008 peak levels.

So the non-performing loans are down $60.9 million from the fourth quarter and total non-performing assets were down $37.9 million. Total watch list loans were down for the second consecutive quarter by $37.6 million. Mark will give more detail behind these changes in a few minutes. However, I would like to know that we continue to feel that our NPAs, the non-performing assets have plateau as we’ve noted last quarter. We continue to see some hovering at this level, but expect to see balances eventually decreased from this level.

Due to the transfer loans that are held for sales we slightly reduced our reserve. However as a percent of total portfolio loans outstanding or allowance remains very strong at 4.33%. Non-interest income for the quarter was up $8.1 million from the previous quarter to fully 2.4. The increase is due to the net gain on the sale of munies I mentioned earlier. Other income was up $2.6 million primarily due to a gain related to an interest rate slot.

Non-interest expense for the quarter was down $3.3 million compared to the fourth quarter. We continue to maintain lower operating expense levels to offset the elevated level of real estate costs we are experiencing in this economy. Our largest expense, salaries and employee benefits was down slightly to $29.9 million.

As we described in our release, the balance sheet and income statement results have been segregated to show the financial conditions and results for our continuing operations. The sale price at $15 million in cash did not change, which was approximately $4.4 million, above the net tangible equity of F&M. The $9 million loss on the discontinued operations reflects the fair value adjustments to F&M, assets and liabilities.

Finally I would like to talk about our capital adequacy and liquidity. Our estimated tier one capital as of March 31 is 12.03% and its $491 million above well capitalized minimums. Our estimated total capital at the end of the quarter was 13.4%, while our tangible common equity was 5.54% and our tier 1 common ratio was 7.7%. The capital ratios after the completion of the Iowa subsidiary sale, due to the decrease of those assets off our balance sheet will increase our cap, the March 31, 2010 pro forma basis by at least 25 basis points.

We continue to maintain a strong liquidity position and stable funding base due to our on balance sheet liquidity sources, excluding F&M bank. This is comprised of 76% in deposits, 12% long-term debt, 11% in equity, and a very low level of short-term liabilities at less than 0.5%.

We continue to believe that we have plenty of capital to get us through the rest of the cycle and remain well capitalized. Currently, we do not anticipate repaying TARP until it is clear that we are through the cycle and safely on the road to economic recover, and market conditions are favorable.

I will turn it over to Mark now for more insight in to our credit quality. Mark.

Mark Widawski

Thank you, Charlie and good morning. We continue our diligent efforts to bring down our level of non-performing assets and reduce the risk profile of our loan portfolios. Last quarter we moved the portfolio of non-performing land, development, and construction loans to held for sale, to better facilitate our disposition of this highest loss severity commercial loan asset class.

Cathy noted the recent national residential foreclosures statistics coming out of loans that began defaulting in early 2009. This activity has resulted in a substantial inventory of foreclosed properties across the country that will come to market this year and next. As with our move of the NPO, commercial land, C&D loans last quarter, the disposition of the NPO residential mortgage loans serves a lower the risk in our portfolio.

Over the past seven quarters, residential non-performing loans increased steadily due to the effects of the recession on our borrowers cash flow, and elongated statutory work out periods that are now approaching one year in Michigan. Our decision to pursue a bulk sale of our non-performing residential mortgage loans in indicative of a more liquid realistically priced market environment for these properties.

The $77 million first quarter credit write-down and transferred to held for sale, and anticipated second quarter sales of the assets is one of the drivers behind the $16.6 million reduction in our allowance for loan losses on a linked quarter basis. The improved asset quality profile of the remaining residential mortgage portfolio, after the move of the NPLs to held for sale resulted in a reduction in the related formulae allowance.

First quarter net charge offs of $118 million includes $74 million in charges associated with the planned non-performing residential mortgage disposition. You may want to infer a run rate from the difference in these numbers of $44 million. We caution to that approach as we still need to work through the recent inflow to non-performing status of commercial real estate loans.

Our first quarter provision for loan losses represented 86% of quarterly net charge offs, reflecting the unique nature of the charges associated with the NPL residential mortgage sales initiative. Our allowance for loan losses of $322 million at March 31 represents 4.33% of portfolio loans, down slightly from the 4.35% at December 31.

Reviewing the commercial portfolios, we see continued strengthening in the performance of the C&I asset class. First quarter C&I charge offs of $13 million were down 42% from the fourth quarter of 2009. Non-performing C&I loans of $70 million are at their lowest level in over one year, continuing a decline that began after September 2009.

Near term delinquency showed improvement, both in terms of dollars and as a percent in the portfolio for the fourth consecutive quarter. At March 31, the C&I accruing watch list outstandings were up $12 million versus year-end due to two factors. First, the role out of our centralized credit delivery model for small business was completed in the first quarter, and loans under 500,000 were included in the quarterly watch review and subject to more frequent monitoring.

Previously these smaller commercial loans were reviewed upon renewal, but no less frequently than annual. The result of this tighter monitoring was an increase of $7 million in the small business watch list.

Secondly, large C&I clients increased their working capital borrowings to support improved order books. Without this increased usage, which supports the turn around plans of these businesses and total C&I watch list would have declined. Overall through the watch and credit review process this quarter, we saw improvements in the financial performance for auto and general manufacturing distributors and service businesses. We continue to diligently manage and reduce our commercial real estate exposure.

Our risk management strategy has been to confront issues early and take losses as soon as possible. In the first quarter we proactively moved five CRE relationships totaling $43 million, to non-performing status prior to there being 90 days delinquent, and we also established appropriate specific reserves against there. The conservative approach on these loans accounted for 86% of the net increase in total commercial non-performing asset inflows, and two thirds of the increase in CRE non-performers.

CRE near term delinquency improved during the quarter, and accruing watch list loans decreased $49 million primarily due to the movement of the five relationships in NPL status. The CRE asset category remains stressed. As indicated by the quarter over quarter increases in NPL balances. CRE, NPLs of $300 million represent a high point for this asset class.

As Charley noted, our CRE charge-offs for the quarter of $15 million were down from $41 million in the fourth quarter of 2009. This decrease is attributable to the elongated work our periods associated with negotiating through forbearance to disposition positions on these assets. Our desecrate CRE asset disposition activity supports our discounted asset carrying values.

Over the past 12 months our special loans team has sold 120 commercial properties [Inaudible] loss to book of 306 thousand. The consumer portfolios continue to benefit form disciplined conservative underwriting, and the absences of any broker originated loans. Near term delinquencies can be direct consumer, primarily home equity loan portfolio and indirect consumer, nearly all RV and marine loans were 1.86% in each portfolio at March 31.

Total MTL’s and chare-offs were both down in these portfolios quarter-over-quarter; however home equity loss severity was up to 2.41% from 2% in December, but still inline with our expectations.

Cathy, back to you.

Cathleen Nash

Thank you, Mark. I think Mark’s comments are reflective of the approach we’ve taken in the past year. We haven’t chanted our strategy. We actively manage our credits, analyzing our portfolio at a detailed level with a careful watch on economic and appointment trends, particularly in Michigan.

Those Michigan numbers continue to point towards stabilization and eventual recovery. Our results align with those trends. As I stated last quarter we simply do not see another wave of problem loans coming at us and we have proven our ability to manage though what we have. I feel confident about the core earnings of the bank and our ability to come through this cycle successfully and return to profitability.

Now we’ll open up the lines for questions.



(Operator Instructions) We’ll take our first question from Terry McEvoy with Oppenheimer & Co.; go-ahead please.

Terry McEvoy - Oppenheimer & Co

Thanks, good morning.

Cathy Nash

Hi Terry

Terry McEvoy - Oppenheimer & Co

If I look at the first quarter, about 70% of the chare-offs were in that residential mortgage area verses the low 10% in prior quarters. If I understand you correctly, would you expect that number to decline closer to where it's been tracking, is I guess question number one.

Question number two, CRE charge-offs were down over 50%, but it sounds like because of that inflow of CRE, NPA’s you think you’ll see some chare-off in the first quarter and as part of that, have you reserved for those expected chare-offs or do you think there will be some provision implications in Q2 associated with those theory charge-offs.

Charlie Christy

Hi Terry, it’s Charlie. Lets start off with the residential mortgage loans. Obviously I think the first question on that is, is that going to trend back down to the normal level that’s you’ve been, which I don’t know, was $2 million to $4 million outside of the periods. We had some high numbers because the funny thing is that the Michigan laws are doing too less for a while there.

We are not sure where it's going to actually trend after that because we pretty much moved a lot of the non-performing out into the held for sale. You are going to still see some continued migration and it may get back to that level but you may not see that right away at that point.

I think on the commercial real estate, I’ll let mark address that, but we did see some inflows and we did part of our provisioning and the $101 million included, some additional specific reserves related to those inflows, Mark do you want to add to that?

Mark Widawski

Yes, that’s right Charlie and Terry. We are reserved on the properties that we have seen come in. We do our normal specific reserve analysis on a quarterly basis on all of our NPL’s that’s based on current appraisals. So I think that Charlie’s right. That we have a bit if a timing issues on both that and the residential side, that going into the second quarter with regard to charges on the CRE front that, we have looked at those from a specific reserve perspective and are comfortable with where we are at.

On the residential side, the remaining portfolio that’s there, we have a very good view of the performance characteristics of what’s left, and the quality metrics underneath it are obviously much better that what we have had to work through starting with the elongated forbearance periods in March of last year, in working through modifications and other actions on the NPLs in that portfolio.

Terry McEvoy - Oppenheimer & Co

And I’m not going to ask, do you want to purchase any failed banks in Michigan, but what I do want to ask is, should the pace in the state accelerate, what does that mean to Citizens Republic, both good and bad potentially?

Cathy Nash

Well I think Terry. We will start with the good shall we? I think the good is in terms of simply market disruption and we have been able to take advantage of some market disruption already in Michigan with some either bank failures or other banks announcing that they are closing locations.

Many don’t consider that market disruption, but actually it is and we have been tracking and gaining new clients and tracking how to get to the control group to see what our performance has been. So, we think there is benefit.

The negatives we see are, I think you noted those in your pre-release information or your pre-call information Terry. The negatives we see, one of the reasons we did this residential mortgage sale is because as potentially there are more failures in the state and either no bidders or high levels of distress real estate, including residential, we see a much higher risk of those being simply dumped on the market.

One of the reasons we pulled these forward are residential non-performing loans is because we see that as a real risk within Michigan that we felt we were better off getting rid of them now. Mark, I’ll let you add any comments to that.

No that’s actually right Cathy. We want to make sure that we have the velocity of the sell through on the residential side at the best time in the market, before a number of additional properties may flood that space.

On the commercial side, we continued to be able to do strategic dispositions; hit our marks and taking the discounts that are still out in that market place have not been appealing to us. If there are failures that bring additional commercial properties to market, we will certainly be looking at where our best thoughts are to adjust our approach on those.

Terry McEvoy - Oppenheimer & Co

Just one last question, pretty direct. When do you think you are going to be able to either bring the provision down, organically low enough or in the process of releasing reserves, simply get back to making money again. You got this large, large reserve, do you feel more confident about CRE taking actions now on consumer; any guidance for when you think you are going to hit that inflection point?

Cathy Nash

You are looking for a date specific Terry?

Terry McEvoy - Oppenheimer & Co

Specifically yes.

Cathy Nash

Well you know, we don’t give guidance, but I think what we have tried to demonstrate over the last year, and as I mentioned our strategy hasn’t changed. It is pretty simple. This management team wants to get this company back to profitability, but we won’t do things that are an optic of profitability, that hurt the company long term.

Certainly I guess unfortunately we are seeing some other banks do those and we just don’t agree with it. I guess my answer to this is quite simply; we will release reserves and lower our provision when its prudent to do so, and we want this company to be profitable for our shareholders and get them the returns they deserve and at the right time that will happen.

Mark Widawski

The key is driving sustainable earnings and when you still have the credit cycle, and you still have a number of things you have to work through the pipe, some of those are being elongated, but our goal is to get there as soon as we can, and we want to make sure, when we start reflecting earnings, its going to be sustainable earnings then you will start seeing growth from that point.

Terry McEvoy - Oppenheimer & Co

Your investors consistently may ask me that question, so I wanted to pose it to you.

Cathy Nash

I think it’s a fair question Terry, thank you.

Terry McEvoy - Oppenheimer & Co

That’s it, thank you.

Cathy Nash

Thanks a lot.


Thank you. Our next question comes from Eileen Rooney with KBW, go ahead please.

Eileen Rooney -- Keefe Bruyette & Woods Inc.

Good morning everyone.

Cathy Nash

Morning Eileen.

Eileen Rooney -- Keefe Bruyette & Woods Inc.

I have a question on the loans that were moved to held for sale. I’m just wondering, how much those were written down prior to the charge-offs this quarter. So I guess then if that’s compared to original loan value, how much they have written down?

Mark Widawski

Eileen, that’s a fair question. I will tell you what, we purposely were somewhat vague in that because we are in the middle of a loan sale, and so its important for us to try to make sure we obtain as much as we can. One thing I will say is, most of it is single family, but there are some lot loans, there are some mobile homes, there are some multifamily home type properties in there. You have properties, you have loans, things like that, and so you have very, very wide range of indicative pricing on that.

Clearly, there is a net write down. You can probably do some of the math pretty quickly by looking at some of the tables, but we are in the middle of a loan sale, we are going to try to maximize and optimize that, so that’s why we are somewhat vague at the actual write down now.

Cathy Nash

Eileen if certainly the loan sale had occurred before the first quarter ended, we would be a lot more transparent if you would understand why we wouldn’t be at this point.

Eileen Rooney -- Keefe Bruyette & Woods Inc.

Yes that makes sense. Okay, then on just another topic, do you have any update for us on relations with the regulators with regards to the written agreement?

Cathy Nash

Sure, we have had no communication from our regulators regarding the status of the written agreement, but quite frankly we do not expect any. Our expectations were set fairly early in the process that it could be a number of months or quarters before we heard anything. So we are in obviously constant discussion with our regulators, in communication with them, so we don’t read one way into that. One way or another, its in line with what they told us, so we have not seen anything yet.

Eileen Rooney -- Keefe Bruyette & Woods Inc.

Okay great and then just one last question on the margin. What is your outlook for the margin, particularly when we start to see rising rates, what will the first say 800 basis point move, what impact would that have for you guys and then beyond that?

Mark Widawski

Yes, so looking forward in margin, a have a lot of the same drivers that we have had in the last couple of quarters. We expect to see continued benefit from our loan pricing discipline, and some impact of depositor pricing to a lower rate. We should also see benefit as short-term investment levels are reduced, corresponding with maturities and also borrowing support, and that will be likely offset by continued reductions in our loan balances.

When you look at our rate risk position; in our 10K we showed that we were a little bit asset sensitive. We think we have a fairly similar position today. I’m not sure I can quantify it for you, what a 100 basis point increase would be in terms of the margin percentage, but we do target a moderately asset sensitive previous position.

Eileen Rooney -- Keefe Bruyette & Woods Inc.

Okay I guess my question about the 100 basis point is, would you have an immediate positive impact or because of flows that you have online, it’s is going to take a little bit longer to see that positive impact?

Cathy Nash

There would be an immediate positive impact.

Eileen Rooney -- Keefe Bruyette & Woods Inc.

Okay, alright. Thank you guys.

Cathy Nash

Thanks Eileen.


At this time there are no further questions in queue. I would like to turn it back to our speakers for any closing remarks.

Cathy Nash

Thank you all. We appreciate the time you spent with us today. As usual, if you have any follow-up questions, please feel free to give us a call or send us an e-mail and have a great weekend everyone. Thank you very much.


This concludes today’s conference call. You may disconnect in the meantime. Thank you for joining us and enjoy the rest of your day.

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