United Financial Bancorp's (UBNK) CEO Bill Crawford on Q2 2014 Results - Earnings Call Transcript

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 |  About: United Financial Bancorp, Inc. (UBNK)
by: SA Transcripts

Operator

Good morning, and welcome to the United Financial Bancorp Second Quarter 2014 Earnings Call. All participants will be in listen-only mode. (Operator Instructions). After today's presentation there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Marliese Shaw.

Marliese Shaw

Thank you, Betty. Good morning everyone, welcome to our second quarter conference call. Before we begin, we would like to remind you to read our Safe Harbor advisement on forward-looking statements on our earnings announcements. Forward-looking statements or that nature are subject to risks and uncertainties. Certain factors could cause actual results to differ materially from expected results. Our comments today are intended to quality for the Safe Harbor [indiscernible] and now I would like to Bill Crawford, our Chief Executive Officer.

Bill Crawford

Thanks, Marliese. Good morning and thank you for joining us on today's call and for your continued interest in our company. Yesterday, we released second quarter 2014 results. These results reflect the completion of the merger between United Financial Bancorp and Rockville Financial on April, 30.

While the results only include two months of the combined entities earnings. I'm pleased that the strength of the Company's performance over that short time, as well as the progress the company is making towards its post close performance goals.

Our CFO, Eric Newell will provide more detail on the financial metrics and talking about the merger in his commentary. In addition to Eric with me this morning, I have Marino Santarelli, our Chief Operating Officer; Scott Bectle, our Chief Risk Officer, Mark Kucia, our Chief Credit Officer; Dave Paulson, Head of Wholesale Banking and Brandon Lorey, Head of Consumer Lending.

During the second quarter, the company reported strong organic loan growth of 8% on an annualized basis and commercial loans grew organically by 9% annualized. The strong growth is reflected of the investment the Company's made infrastructure of mortgage banking and our commercial lending divisions.

The Company will continue to make investments in these areas and opportunistically acquire commercial banking teams and high performing commission based mortgage loan officers. We are pleased that we are able to further execute this strategy during the past quarter with the acquisition of an experienced mortgage banking team in the West Springfield market.

We are diligently preparing for the fourth quarter data integration and have every reason to believe that will be completed as schedule in a subsequent targeted cost savings will be achieved. The team is highly focused on evaluating cost savings opportunities throughout the Company as we develop our operating budget for the go-forward organization and resolve in United transformation into highly efficient growth company.

The Company's intensive focused on achieving 2015 performance metrics goal communicated to our investors. I'd like to thank my United Bank team mates for their dedication and hard work. United, we are stronger and I'm very bullish for our prospects and the years ahead.

Now I'd like to turn the call over to our CFO to provide some further detail on the quarter's results.

Eric Newell

Thank you, Bill and good morning. Yesterday, we reported a net loss of $5.6 million or a loss of $0.13 per share including our GAAP results of pre-tax merger related expenses totaling $20.9 million. The affects of our purchase accounting adjustments during the quarter including a pre-tax benefit of $4.9 million to net interested income amortization of our core deposit intangible $321,000 and finally accrued tax net gain from sales and securities totaling $589,000.

Excluding each of these items are tax affected basis. Our operating net income totaled $5.8 million or $0.13 per share; a 63% improvement over the $0.08 per share, the company reported for operating earnings in the length quarter.

I want to once again remind listeners that our results in the quarter reflect only two months of consolidated results. As a consequence of the merger, purchase accounting become more prevalent in our GAAP result. We've added additional exposure in the earnings release to assist users of our financial statements to obtain a more transparency of the operations of the company separate from purchase accounting and tax.

The most interesting impact of the GAAP result is the accretion and amortization of loan marks, which include both credit and interest marks. We have explained in our disclosure, to report both originated loans and purchase loans.

Within the purchase loan disclosure, the company reflect covered loans which are subject to ASV [indiscernible] formally known as SOP L33 [ph] which are deemed to be impaired by management when purchased as well as purchased loans, which subsequently experienced deterioration requiring management to provide additional reserves against the loan.

Finally, we will report non-covered purchased loans which have no associated allowance to loans and only care a nominal credit mark that interest mark that the company will amortize or accredit [indiscernible] alone.

The GAAP earnings asset yield for the quarter ended June 30 was 4.28% which included the benefit of $3.4 million of accretion; excluding this accretion, the operating earning asset yield for the quarter was 3.93%. The cost of interest bearing liabilities on a GAAP basis was 50 basis point and included accretion at $1.6 million.

Without the effect of purchasing accounting, our operating cost of interest bearing liabilities was 7 basis points. Operating net interest margin excluding the impact of purchase accounting adjustment increased to 3.36% in the second quarter of 2014 from 3.17% in the linked quarter. this is driven by growth in the higher yielding C&I and residential loan portfolios.

For additional disclosure, our operating yield by loan side and cost of interest bearing liability compared to GAAP result. The Company's included a reconciliation of these items in earnings release table. The Company reported provision expense of $2.1 million in the second quarter. a significant portion of the increase in provision compared to the linked quarter relates to the reserve applied for two loans.

One of the loans is originated by legacy Rockville and has been under review for the last several quarters. The company is applied to reserve on the expected difference between the ultimate workout results and [indiscernible]. Yellow [ph] loan which was purchased has experienced significant deterioration since it was closed.

Therefore management being prudent, to provide a reserve on the purchased loans and reclassify it as non-performing. We continue to evaluate the facts and circumstances on it loans and will consider whether we could support, reclassify the loan is impaired on April, 30. Nevertheless, as the quality remains exceptional by all industry and peer metrics.

I'd like to provide some commentary regarding mortgage banking as well. A net gain from sales of loans increased to $1.3 million or 28% year-over-year and nearly the twice the level reported in the linked quarter. It made an influence and the increase from the linked period as the impact on unrealized gain on sale related to loans are held for sale, which is driven by activity taken by our mortgage guidance.

Provided definitely off the hedge, a certain portion of loans, in the pipeline with mandatory and best efforts for commitments. Also impacting the increase was the change in the value of re-allotment as the company executes risked customers during the application process. The depth between linked quarter was predominantly driven by increases in volume versus improvements of market rate.

And we continue to leverage the company service level as a differentiator in the market, as a value proposition for both our mortgage customers as well as our mortgage loans officers. During the quarter, we achieved a record high pipeline level, which will attribute to the number of mortgage loan officers during the second quarter as well as the quality of the calls, that team received due to the strong relationship [indiscernible] influenced in the real estate community that [indiscernible].

Well market rates feel during the second quarter, I'd only say by the 19 basis point reduction in the 10-year treasury yield, which resulted in pick up refinance volume, purchase activity continues to be in majority of our pipeline.

The reduction of interest rate negatively impacted the value of the company's mortgage servicing rights, which fell by $435,000. While we cannot project market pricing for the remainder of the year. We expect the pipeline remain strong and the level in the third quarter and then anticipated seasonal drop in the pipeline in the fourth quarter as its typical.

This will impact results to report, for net gains from sales loans. Service charge and fee income was positively impacted by in conventional fees associated with usage of legacy United ATMs and associate activities from legacy United deposit. Furthermore the company benefited from the addition Legacy United Bank owned life insurance asset as well as the additional sales of loan level hedges to commercial plans.

The final driver of the other loss in non-interest income is the aforementioned decline in the value of the mortgage servicing right. Non-interest expense is total $46.1 million on a GAAP basis and $24.9 million on operating basis. Resulting in an operating NIE to average asset of 2.3% for the period dropping from 2.84% in the linked quarter.

On an operating basis, all non-interest expense categories are impacted by the merger. As Bill mentioned in his comments at the start of the call. The entire United team is focused on successful data conversion, scheduled for the fourth quarter. once this is completed management expects the cost savings discussed in the November announcement of the merger will begin to be reflecting on our financial performance trend, this will be driven by identified redundancy leading to staff, branch closure and cost recurrent carried operation, we run through banks.

Management remains to committed to 15% cost saves, we announced in November and our non-interest expense we report amortization in the core deposit intangible. The core deposit intangible, which is included in the company's goodwill and other intangible assets on the balance sheet. Total's $10.2 million at June, 30.

A core deposit intangible be amortized over 10 year including a sum of good use metrics. The effective tax rate for the second quarter on a GAAP basis was negative 10%. The tax rate was impacted by core item such as bank loan health insurance, tax exempt interest and tax credits, from which the company inherited the legacy United as well as one-time items related to the merger.

Based on a projection, management is currently guiding to a 10% effective tax rate of full year of 2014. Moving on my comments regarding cost saving time and expectations. I'd like to provide an update on some other merger that really matters. In the 8-K disclosure last week, we ended up paying our one-time expenses related to merger was originally modeled at $34 million pre-tax was increased to $39 million pre-tax.

A major contributor for the increase was consultancy. Specifically we hire consultant, leverage a proprietary database to provide the company significant savings in major contract we have with our service providers and return for those savings, act significant shareholder value. We share a portion of the savings with a consultant which are captured in one-time expenses.

We do not plan for this one, we modeled one-time expenses in November. To-date between both legacy companies and on a consolidated basis. We had expense $31 million pre-tax a one-time merger related expenses. While nearly all of our balance sheet categories were impacted by the merger. I would like to specifically discuss loan deposit growth and the trends we are experiencing.

As disclosed in our release, the company reported $73 million of organic loan growth which represents on a annualized basis. Predominantly it's G&I and residential loan. On balance sheet, residential loan growth is due to mix shift from fixed rate to adjustable rate mortgages, which in large part occurred in late 2013 to a pipeline shift into purchase mortgages as well as expansions to market that generally favor adjustable rate mortgages of our fixed rate mortgages.

Management generally portfolios need loans, while continuing to sell fixed free loans with 15-year terms and 30-year terms, if the contribution margin on the loan represents a higher return in gains on loans so in the secondary market. Commercial loan growth remains robust.

Management takes a disciplined approach with pricing leaving us risk adjusted return on capital amount as guided. Sacrifices to appropriate underwriting standards will not be a strategy employed to increase or maintain levels. We expect our sales process of substantial market opportunity to provide for our future growth.

We believe that our responsiveness and level of services are value proposition in market, which will impart mitigate the risk to our closed goals, due to aggressive sizing and structuring from our competitors. The constant strategy for deposit growth is two-fold. First by building and deepening our relationships with potential and current commercial clients.

Our bankers develop a better knowledge of client business needs and when appropriate can offer deposit and cash products to enhance the overall relationship. Thereby building a loan cost, stable funding, resourceful company.

Second; in our retail channel. We train our branch management and teams to build and maintain relationships with a community that you serve. This level of access to our sales managers is a big part of our value proposition to our current and potential customers and is attribute of our customer service strategy.

So moving to our commercial bankers. Our retail channel success building these relationships resolve in low-cost core deposit growth. We are seeing an increase from some timely pricing and marketing in our footprint design to take advantage of merger. We've provided tools to our retail channels as a middlemen to any different remediation that may result from irrational pricing in the market.

We have stepped up our marketing and communications to our customers and certain locations, we are utilizing direct mails and cross-loan strategies to build and maintain deposit. As we accomplish our short-term loan with a successful data emergent and introduce redesign products, management mainly, confident that we will have a value proposition as compelling to our distant and prospective customers.

We are mindful that, equity market performance as well as high confidence in economy, is started to impact deposited across the industry and with that trend, the pricing of deposit has become more competitive. We are seeing this trend in our markets as well.

Management will continue to emphasize the building and deepening of relationship to our existing and potential client in a response to shifting market dynamics for deposit. Before the intangible book value to share at June 30 of $9.99 included in the $1.53 decline, $11.52 reported at March 31, 2014 is the effect of the increase issuance of capital, the legacy united shareholders and the increase of intangible from the merger.

While the June 30, 2014 intangible book value reflects the after tax of one-time merger items expense to-date. If the remaining pre-tax $8 million a one-time merger expenses yet to realized, were included in our second quarter results. This was a result in additional reduction of $0.10 per share.

This was not considered any other changes to capital as well as net income in the second half of the year. The performance tangible both value of $9.99 per share would result in an additional $0.15 of dilution from what we originally modeled in November. The additional $0.15 of dilution is driven by the aforementioned increase in the one-time merger expenses and the difference from the anticipated mark-to-market adjustments in November and the final mark-to-market adjustments reflected in our June 30, 2014 results.

Despite the modest increase in dilution. This is not significantly increase the payback period. The management are being confident and the assumptions communicated when the merger was announced. The executive management team has begun a strategic planning process for 2015 and 2016. We will continue to develop and execute on action plan that will achieve our stated goals as well as balance and investment for future growth.

The team continually looks for avenues to improve organic growth and seeks strategies, renew or extended the income opportunities. The company with comprehensive analytical message [indiscernible] payback period, for these strategies and understand where we can add shareholder value.

First and foremost, the team is focused on the fourth quarter data conversion and maintaining our high level of customer service and satisfaction. Thank you for your time, this morning and now the management team and I will be happy to answer any questions. you ask.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) and our first question comes from Mark Fitzgibbon of Sandler O'Neill & Partners. Please go ahead, sir.

Mark Fitzgibbon – Sandler O'Neill & Partners

First, I was curious with respect to operating expenses. If you could sort of help us think about operating expenses in the third and fourth quarter and also if you could just sort of clarify the timing of the systems conversions, is that really in the fourth quarter, late in the fourth quarter?

Eric Newell

On the timing of the conversion, it would be earlier in the fourth quarter. although, probably some of the cost savings opportunities would really come in kind of later in the fourth quarter, so you're not going to see a full quarters trend in the fourth quarter for some of the savings. It's really probably going to be more effective in the first quarter, 2015.

In terms of the core operating expenses in the third and fourth quarter of this year. I think the level of 238 is probably operating NIE the average asset is probably good indicator of what you'll see for the remainder of this year.

Mark Fitzgibbon – Sandler O'Neill & Partners

Okay and then secondly, I know you said the loan pipeline was at record levels. How big is that and what does the complexion look like?

Bill Crawford

Brandon, why don't you discuss sort of the residential?

Brandon Lorey

Sure on the resi side, so as we mentioned it's still largely purchase even with dividend uptick in refi and we're still in that 60% to 70% purchase range that we've seen for the last few months. So it hasn't change the mix from a fixed arm again driven largely by the market, depending on what that refi when kicks in.

I will tell you that it is the largest that we have seen from an historical perspective at the bank.

Bill Crawford

Mark, it's still, we just have taken a lot of share in the mortgage business and so I think that's why we've had probably better than expected results there. It's just too much higher volumes commission goes on, offers a number that we've had and taking share of, Dave you want to sort of comment on the commercial pipeline.

Dave Paulson

Sure. Similar to Brandon the pipeline in all of our commercial practice areas remained strong and growing. Certainly slight market conditions to improve the excess liquidity is out there in the market. The pricing pressure is not variant from underwriting constraint that competitor seemed to be throwing at the wall against. We are finding our opportunities, our pipeline is looking really good. Our production is solid as a rare. So we are very confident that, it's going to be able to meet our objectives for the balance of the year.

We are going to expect the solid growth going forward in the first course of the year.

Mark Fitzgibbon – Sandler O'Neill & Partners

And then also perhaps, Eric perhaps you could you help us think about the margin both the core margin trends as we move forward as well as sort of the impacted accretable yield and sort of timing and recognition of that.

Eric Newell

The second quarter effects it's probably little more magnified but by couple reasons. First being at the average balance, there only reflected for two months. So if you kind of do a comparison with the average balance sheet and period in balance sheet, you're going to see a pretty big difference there so.

I think if you're kind to take a look at the effect on the net accretion on the loans particularly in the second quarter and then, what we are projecting for the third quarter. you're probably going to see about 50% to 60% of the level of impact in the third quarter versus the second quarter. in terms of the purchased assets, when we do a prepaid adjusted analysis of the loans. Our average is around 60 months.

So we are probably going to have impacts on the NIM sometime although, the weight of that impact will kind of fall off because we're going to be originating more and then sort of, the proportion of purchased assets that are effecting the NIM, what will follow the time.

In terms of the other marks, I mean the loan mark was the more volatile because we had applied a credit and a interest mark on the portfolio as of 430. However, so between 51 or 430 and 630, a loan either was renewed, extended or paid off. In terms of the interest market wouldn't be that great because the interest mark is looking at the remaining life of that credit mark, fully comes in.

So the effect in the second quarter was largely driven by the accretion of credit marks, non-accretable credit marks. So that's why kind of huge impact in the second quarter.

Mark Fitzgibbon – Sandler O'Neill & Partners

Okay, so I guess if we look at sort of the third quarter margin with the adjustments in there, that we sort of in that maybe 340-ish range. Is that a good guesstimate, you think? I know there's a lot of moving parts, but.

Eric Newell

I think, we reported 336 as the operating kind of what you're calling a score and I think that, that's probably directionally correct for the third quarter. As the purchase loans kind of roll over that renewed or re-originate at current market rates, all else being equal. I would expect that 336 would kind of fall in line to what legacy last reported in March.

Now I'm not giving any credit to any changes at the market and what's happening to the yield curve in that statement but, kind of trying to really isolate how the core NIM would trend, it would trend towards, what lost the lag, that you know in the first quarter?

Mark Fitzgibbon – Sandler O'Neill & Partners

And then my last question. It does help a lot. thank you and the last question I had was, you guys have about a 1.5 million shares eligible to repurchase under your current authorization. How are you thinking about repurchases at this level?

Bill Crawford

Mark as we look at that, there every day wheels on and you know, we'd like take advantage of it. That said, you know I don't think you'll see us according to level repurchases that we did, you know a year or two ago.

Mark Fitzgibbon – Sandler O'Neill & Partners

Thank you.

Operator

And our next question comes from Travis Lan of KBW. Please go ahead.

Travis Lan – KBW

Just to circle back in the expense conversation. Eric, is it correct to assume that really no meaningful cost sales are achieved prior to the data conversion?

Eric Newell

Yes.

Travis Lan – KBW

Okay and then at what point if we look out into 2015, at what point do you think, you see cost saves fully phased in, on a quarterly basis?

Eric Newell

I think that, if you look into the second half of the -- that's one year you're really going to see a true run rate of NIE, which goes back to our original comments on expense saves in November, where we were expecting to realize 50% in the year one and 100% in year two. So you know, there's going to be some additional saves probably not until, that equal falling for run rate in the fourth quarter, 2014, but we're going to see some additional saves in the first half, 2015.

So I wouldn't look for the third quarter and fourth quarter, 2015 for true run rate.

Travis Lan – KBW

Okay, that's helpful. Can you guys just remind us of the post-close performance goals that you outlined with the deal and then your expected timing, I assume you know based on those comments, would be kind of back half of 2015, but just maybe update us on that a little bit.

Eric Newell

Yes, in terms of the operating expenses. We targeted one of the ratios, that we look at is NIE to average assets. So we are targeting 1.9% there. So I think that's one of the things, we are very focused on and will achieve in back half of the theme.

Travis Lan – KBW

Okay, then can you just talk a little bit about the size of the purchased deteriorated loan in the quarter and I assume that, came from UBNK was no other like, single loan purchase, right?

Bill Crawford

Mark Kucia, you want to take that, Mark's our Chief Credit Officer.

Mark Kucia

Sure. The provision expense greater than half of that related to two loans. One which was legacy Rockville, which is been on the radar of our screen for a long time. It's been sub-standard. It's a loan about $2.6 million. The other is a purchase loan, C&I credit where they had a, an adverse impact to their revenues and the company is struggling. So that relationship is approximately $4 million.

Travis Lan – KBW

All right, that's helpful.

Mark Kucia

I would just add to that, we being the reserve to be adequate asset quality remain strong and our expectations are, that will continue.

Travis Lan – KBW

Okay and that's helpful and then Eric. Could you just give a little bit more color on the tax rate and how you expect that to turn. I know you said, you expect 10% tax rate for the year, does that assume kind of where you would be with the additional merger charges just maybe little bit more color on the tax rate, would be helpful?

Eric Newell

Yes, there's obviously some complexities with taxes with the merger and a lot of – a portion of the merger expenses aren't deductible. So I would expect that, on operating basis will normalize and kind of still around 35%, but then when you take the full year in perspective based on what happened with the merger, that's where you get to that 10%, on kind of GAAP basis.

Travis Lan – KBW

Got it. Thank you very much.

Operator

(Operator Instructions) Our next question comes from Matthew Breese of Sterne Agee. Please go ahead.

Matthew Breese – Sterne Agee

I wanted to go back to the margin for just a second. Specifically the purchase accounting for value marks. I know the average earning asset piece is a little bit deluded because of the timing and the deal, but the $4.9 million specifically how will that look next quarter. Is that going to be somewhat similar next quarter in going forward as the life time March play out?

Eric Newell

When it comes down to the loan side Matt, that's the one I would focus on because that's where the volatility is, so the effects on the interest expense that's not going be a volatile, but with loans. The benefit that we're receive in the second quarter is not a level that we're expecting to see in the third quarter.

So if you take that effect and almost half of it. I mean, I would say, 50% to 60% of what we experienced for the net benefit on interest income is what we are expecting in the third quarter. now that's not taking into account any type of large prepayments on any types of loans or what not because we are using a level yield and in terms of the realization of these marks.

So obviously if there's principal that comes in, then expected that would change.

Matthew Breese – Sterne Agee

So specifically would be the loan mark, which is $3.4 million you want to say cut that in half, is that correct?

Eric Newell

Directionally, yes. That's what we are expecting. I would say 50% to 60%, Matt.

Matthew Breese – Sterne Agee

So that's $4.9 million next quarter would look more like $1.7 million to $2 million, is that a accurate?

Eric Newell

You're probably little right, but I would directionally put you more towards the $2 million.

Matthew Breese – Sterne Agee

Okay and the actual core margin excluding all of the purchase accounting marks, you're saying it's going to ahead closer to the 315 you reported first quarter, over what period of time, do you think?

Eric Newell

All else being equal, yes. Now I mean, that doesn't give any, doesn't consider what's changing with a yield curve. I mean, if you know it's the yield curve from the beginning year heads flattened out particularly in the 5-year to 7-year part of the curve, so you know there could be some challenges there, but if we kind of just keep everything equal, as the purchased assets particularly on the loan side, will loss and re-originate at the new markets yield.

I would expect that 336 would kind of fall through our legacy rate.

Matthew Breese – Sterne Agee

Over what period of time?

Eric Newell

Well, I mean in the prepay adjusted loan like for the total portfolio that we purchased from the United is 60 months.

Matthew Breese – Sterne Agee

Okay, so five years.

Eric Newell

Yes.

Matthew Breese – Sterne Agee

Got it. Okay and then, I know you guys have touched on the expense saves and headed to the 19 expenses average assets. Could you just give us an idea of how expenses on an absolute basis will shake out, once the data conversion is all said and done?

Eric Newell

You mean that, like in terms of dollar amount?

Matthew Breese – Sterne Agee

Exactly.

Eric Newell

Well, if you kind of look at the NIE level, where the two companies are annualized basis, when we combined and just kind of add them together. It was $120 million of NIE and we were talking about 50% save so, I mean that kind of shakes you out around $100 million to $105 million.

Bill Crawford

Matt, it's Bill. We continue to evaluate cost saving opportunities on the combined NIE's. we literally work on that, every week, every month and then also, we will continue to look opportunistically that commercial team with doubts and financial advisors. The last two reports being commissioned, but we continue to feel very good about our ability to make this a highly efficient company and to make sure, where we are investing operating expense dollars, so we are getting a very strong return on those investments and so I'd like to very – we still feel very good about, you know the guidance we provided back in November.

Matthew Breese – Sterne Agee

And related to the guidance back in the November, could you touch on the profitability metrics goals that you set out, specifically the 1%, ROA and your 10% return on common equity goal. Are those achievable as well by the back half of 2015?

Eric Newell

I mean that is definitely what we are trending towards, you know one of the challenges that has kind of presented itself since November, is what the market rates have given us. Rates have come in fairly significantly and we have a flattening of the curve, so that could present some challenges, in terms of earning asset growth and the contribution, to that earning asset growth brings to the bottom line, but you know what we'll still remain committed toward that approaching 1% ROA and 10% ROE number.

Bill Crawford

Yes, that, I think you know the big ones, the 10% common intangible, common equity, given what's happened with the 10-year and what we think is going to happen, what that's going to mean, is we're going to have to grow earning assets a little stronger and probably cut a little deeper net basis because where the tenure is and we see the opportunity to do that.

Obviously we have to get our conversion first and then Q1, Q2, Q3 next year we continue to bind to make progress on all those and I think, the real answer is going to be, what you see in Q3, Q4 run rates 2015 for our company.

Matthew Breese – Sterne Agee

Thank you, guys.

Bill Crawford

Thanks, Matt.

Operator

That does concludes our question-and-answer session. I would now like to turn the conference back over to management for any closing remarks.

Bill Crawford

I just want to thank everybody for your continued interest in our company and hope you guys have a great time. Take care.

Operator

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

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