Q1 2024 Fulton Financial Corp Earnings Call

Participants

Matthew Jozwiak; Director of Investor Relations & Corporate Development; Fulton Financial Corp

Curtis Myers; Chairman & Chief Executive Officer; Fulton Financial Corp

Betsy Chivinski; Interim Chief Financial Officer; Fulton Financial Corp

Frank Schiraldi; Analyst; Piper Sandler

Daniel Tamayo; Analyst; Raymond James

Feddie Strickland; Analyst; Janney Montgomery Scott

Andrew Leischner; Analyst; KBW

David Bishop; Analyst; Hovde Group

Manuel Navas; Analyst; D.A. Davidson

Matthew Breese; Analyst; Stephens

Presentation

Operator

Good day, and thank you for standing by, and welcome to the Fulton Financial First Quarter 2024 Results Conference Call. (Operator Instructions)
Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Matt Mrozek, Director of Investor Relations. Please go ahead.

Matthew Jozwiak

Good morning and thanks for joining us for Fulton Financial's conference call and webcast to discuss our earnings for the first quarter ended March 31st, 2020. For Your host for today's conference call is Curt Myers, Chairman and Chief Executive Officer.
Joining here today is Betsy diversity, Interim Chief Financial Officer. Our comments today will refer to the financial information and related slide presentation included with our earnings announcement, which we released yesterday afternoon. These documents can be found on our website at FULT. dot com by clicking on Investor Relations.
And then on News, The slides can also be found on the Presentations page under Investor Relations on our website.
On this call, representatives of Fulton may make forward-looking statements with respect to Fulton's financial condition, results of operations and business. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors and actual results could differ materially. Please refer to the Safe Harbor statement on forward-looking statements in our earnings release and on Slide 2 of today's presentation. For additional information regarding these risks, uncertainties and other factors. Fulton undertakes no obligation other than required by law to update or revise any forward-looking statements In discussing Fulton's performance, representatives of Fulton may refer to certain non-GAAP financial measures. Please refer to the supplemental financial information included with Fulton's earnings announcement released yesterday and Slides 17 through 20 of today's presentation for a reconciliation of those non-GAAP financial measures to the most comparable GAAP measures.
Now I'd like to talk I call turn the call over to your host Carol Buyers.

Curtis Myers

Well, thanks, Matt, and good morning, everyone. For today's call. I'll be providing high-level thoughts on our performance for the quarter and provide a few comments on the company. Then I'll turn the call over to Betsy chip in ski Interim Chief Financial Officer, to review our financial results in more detail and step through our guidance for 2024. After our prepared remarks, we will be happy to take any questions you may have.
We were pleased with our first quarter results. Operating earnings of $0.4 per share were a solid start to the year, we saw both deposit and loan growth. The net interest margin was in line with our expectations. We continue to have stable asset quality metrics and our capital position remains strong during the quarter. We also also increased our committed liquidity by 1 billion. We repurchased 1.9 million shares of Fulton stock. I'd like to note that with this repurchase, we've now repurchased all 6.2 million shares of common stock issued in connection with the Prudential Bancorp, Inc. acquisition in 2022. As of March 31st, $95 million remains from our 125,000,020 24 repurchase authorization.
Turning to growth for the quarter, first quarter deposits outpaced loan growth at $204 million or 4% annualized pricing growth and mix remain our focus as we continue to position our product offering to support and grow our customer base loan growth as anticipated, moderated to 93 million or 2% on an annualized basis. Profitable growth and prudent credit decisions remain our focus. Our loan to deposit ratio ended the quarter at 98.6%, a linked quarter decline and well within our long-term operating target of 95% to 105%. Despite ongoing market pricing pressures, net interest margin remained in line with our expectations, drifting lower by four basis points to 3.32%.
Our noninterest expense income was solid at 57.1 million we delivered record results in Wealth Management that helped offset a decline in customer interest rate swap income this quarter. Overall, we are pleased with our fee income performance and continue to benefit from the diversification of this revenue stream.
Now let me provide some comments on credit. The provision for credit losses was 10.9 million, up slightly from 9.8 million last quarter and in line with our expectations. While overall credit risk metrics remain historically strong, we saw some migration in certain credit metrics during the quarter. Criticized and classified loans drifted modestly higher. This migration is not specific to any particular industry portfolio or region, and we continue to focus on how higher interest rates and higher cost are impacting our customers we remain cautious in our outlook for 2024 and looking forward, as I mentioned last quarter, our Fulton first initiative is an internal process to evaluate and improve how we operate three key tenets of this initiative to drive our strategic transformation, our Simplicity, focus and productivity. During the quarter, we made good progress on this initiative with more work ahead of us. We anticipate sharing more details as appropriate in coming quarters overall, a solid start to the new year.
Now I'll turn the call over to Betsy to discuss our financial performance and 2024 guidance in more detail.

Betsy Chivinski

Thank you, Kurt, and good morning. Unless I note otherwise, the quarterly comparisons I mentioned are with the fourth quarter of 2024 and loan and deposit numbers, I'll be referencing our annualized percentage growth on a linked quarter basis.
So starting on Slide 8, operating earnings per diluted share this quarter were $0.4 on operating net income available to common shareholders of $65.4 million. This compares to $0.42 of operating EPS in the fourth quarter of 2023 as Curt noted, loan growth was modest during the quarter, increasing 93 million or 2%. Commercial lending contributed 73 million of this growth or 2.2% primary contributors included commercial real estate of 124 million or 6%, and construction loan growth of $24 million or 9%, offset by a decline in C&I loans of 78 million, primarily due to slightly lower line utilization. Our CERCRE. growth was not concentrated in any one category or geography. And as shown in our earnings deck remains well diversified. Consumer lending produced growth of $20 million or 1% during the quarter. An increase of 7 million in residential mortgages, primarily adjustable rate was offset by decreases in other categories, including consumer direct and indirect loans, residential construction and home equity total deposits increased $204 million during the quarter, growth in time, deposits primarily with maturities less than one year more than offset the seasonal outflows in our municipal deposits of 137 million. Non-interest bearing DDA balances ended the quarter at 5.1 billion or 23.4% of total deposits, in line with our expectations. Our net interest income guidance for 2024 assumes we will continue to see migration from noninterest-bearing to interest-bearing products throughout this year, but at a slower pace than we saw last year, our investment portfolio was up modestly for the quarter closing at 3.8 billion or 13.7% of assets. During the quarter, we purchased $210 million of MBS and CMO securities. These balance sheet trends are summarized on slide 10. You can see net interest income was $207 million, a 5 million decline linked quarter, primarily driven by the modest change in the mix of our deposit portfolio. And as a result, net interest margin declined four basis points to 3.32 versus 3.36 last quarter. Loan yields increased seven basis points during the period, increasing to 5.9% versus 5.83 last quarter. And cycled to date, our loan beta has been 50%. Our cost of total deposits increased 16 basis points to 195 basis points during the quarter and cycle to date, ArteFill deposit beta has been 36%.
Turning to asset quality in slide 11, NPLs increased 2.8 million during the quarter, resulting in a slight increase in the NPL to loans ratio from 72 basis points at 1231 to 73 basis points at quarter end, net charge-offs were $8.6 million or 16 basis points. Gross charge-offs of $11 million were fairly granular with the largest being $2.5 million on a C&I loan. Our allowance for credit losses as a percentage of loans increased slightly to 1.39% at quarter end Turning to noninterest income on Slide 12. Wealth management revenues were $20.2 million, up 766,000 compared to the fourth quarter, surpassing the 20 million mark for the first time in Company history. Wealth management represents about a third of our fee-based revenues with over 80% of those revenues recurring also the market value of assets under management and administration increased over 700 million to $15.5 billion at March 31st, also a new record for our company. Commercial banking fees declined 2 million to 18.8 million as customer swap revenue, heavily reliant on new originations declined compared to a strong fourth quarter. Consumer banking fees declined approximately $400,000 to $11.7 million. First quarter seasonality played a part in that linked-quarter decline. Our Consumer Banking business continues to deliver a very consistent income stream. Mortgage banking revenues increased $802,000 to 3.1 million and were driven by a seasonal increase in mortgage originations as well as gain on sale spreads that rebounded from a low last quarter. We have a number of investments that are accounted for under the equity method on which we recorded a loss of $1.6 million reflected in the other income lines.
Moving to Slide 13. Noninterest expenses on an operating basis were $170 million in line with the prior quarter and in line with our guidance. The material items we exclude from operating expenses include charges following charges of $1 million for special FDIC assessment, $3.6 million related to the closure of some financial centers, 2.5 million of consulting expense and $200,000 of severance expense.
On slide 14 shows a snapshot of our capital base. And you can see as of March 31st, we maintained solid cushions over the regulatory minimums. Also, both bank and parent company liquidity improved during this quarter.
On slide 16, we are reiterating our guidance for 2024 Our guidance assumes that a total of 75 basis points of Fed funds decreases will occur in the second half of 2024. So our guidance is as follows. We expect net interest income on a non FTE. basis to be in the range of 790 to 820 million. We expect the provision for credit losses to be in the range of 45 to 65 million. We expect noninterest income, excluding security gains to be in the range of 235 to $250 million. We expect noninterest expenses on an operating basis to be in the range of 670 to 690 million for the year. And to really reinforce that estimate excludes potential nonoperating charges we may incur as we move through the year. And lastly, we expect our effective tax rate to be in the range of 17% to 18% for the year.
With that, we'll now turn the call over to Abigail for questions.

Question and Answer Session

Operator

(Operator Instructions) Frank Schiraldi, Piper Sandler.

Frank Schiraldi

Morning, Frank, just on the phone first initiative, I guess you know that it's it's sort of a work in progress and done. You're looking for efficiencies kind of across the board. But I assume that includes some expense saves as you as you close some financial centers and so forth. So can you just remind us when we look at guide, I know there's no you take out the non-operating stuff on. But in terms of run rate expenses, does that include some benefit from Fulton first? Is it sort of your best guess at this point of what you get from foam first? Or is that something that could as we go through the year move that?
So our guide lower?

Curtis Myers

Yes, Frank, we have certain expense saves in the back half of the year as we begin to implement Fulton first. So we really are in the analysis on stage and building our plan on. So the overall plan is really driven to accelerate growth in certain areas as we focus even more in certain areas. But we do expect to see benefits from operating efficiencies and doing doing things a little differently as well so there are some expense components to the Save. I'd just like to remind everybody that the full first initiative is really an 18-month to 24-month journey. And we're in that you know, four or five months of that work. So what you're really seeing right now is the investment or spend to develop the plan for implementation. And when we get to the point of implementing, we'll be able to share more details with you around expected benefits.

Frank Schiraldi

Okay. And then on the OM on loan growth, just looking at your guide on NII and is it fair to say that just assume sort of 1Q like loan growth spread across the year? And then as a follow-up to that, if you could just remind us what the on the deposit side, what the muni outflows were this quarter and how that, you know, the timeframe for those to flow back end?

Curtis Myers

Yes, let me talk a little bit about loan growth, and I'll give it to Betsy for the municipal outflows, just the seasonality to that. So on loan growth, you know, we've talked about our long term organic growth target in the 4% to 6% range. I think in this environment, we're going to be at the low end or maybe even under the low end of that long term on range. So I think the growth in the first quarter, we may exceed that as we look forward, but it's going to be in the same ballpark. We are we are being prudent and disciplined on pricing and credit and as we originate loans moving moving forward and the minute.

Betsy Chivinski

The municipal outflows were $137 million or so with at least in certain of our areas on certain taxes are paid in the second quarter. We should see a blip up, not huge in the second quarter and then the third quarters where we tend to see those Bye.

Frank Schiraldi

Got you. Okay. Thanks for the color.

Curtis Myers

Thanks, guys.

Operator

Daniel Tamayo with Raymond James.

Daniel Tamayo

Thanks. Good morning, everyone. Maybe first, just on on the NII guidance you reiterated from last quarter and you kept the the the three rate cuts assumed, which I understand given where we were at the end of the quarter. But maybe if you could give us your best guess as to what that guidance might look like without the June cut? And if there's any kind of other details in terms of how you're thinking about the impact have fewer rate cuts on that on that guidance, that would be helpful.

Betsy Chivinski

But then this is that the ARM we've kind of modeled that out really we can tell on our loans that reprice immediately 25 million on an annualized basis, but the harder thing to predict as deposits, but we've kind of modeled all that out and, you know, with no cuts where we think we're going to tilt toward the high end of the range, maybe a little bit higher. And but again, they're going to occur later in the year. So the impact on the year is going to be moderated.

Daniel Tamayo

Okay. All right. That's with no cuts behind the range. Okay. All right. And then switching gears here, if I can, just to the office portfolio, appreciate all the detail you guys put in the deck on that. I just wanted to know if you had within that group of loans, what the the amount that's either substandard or criticized or classified or however you think about the early stage for that? And just curious how that portfolio is trending, I'm relative to the rest of your book.

Curtis Myers

Yes, Danny, we've seen stability in that. So overall, portfolio balances are stable. We've done we've moved some out or paid off. We've had and we've had some originations that we did not much this past quarter but we did some in the fourth quarter. So that portfolios are really stable. We're pretty direct in sharing what we have in classified criticized there, and it's shown stability as of today.

Daniel Tamayo

Okay. Understood. I appreciate you taking my questions today.

Operator

Feddie Strickland with Janney Montgomery Scott research division.

Feddie Strickland

Hey, good morning, everybody. Just wanted to continue on that last question on office. Appreciate the detail in the deck, but I see that there's a 146 million located in the central business district. Is that pretty evenly distributed across geographies or is it more Philly or DC or elsewhere? Just trying to get a sense of where which central business district those might be?

Curtis Myers

Yes, largest is is Philadelphia. And you know, it's not a lot of loans are getting and it's seven our loans and Philly is the biggest portion. And then actually the next biggest portion as we look at the distribution is spread throughout and then DC and Baltimore would be less than half of what we have in Philadelphia. And again, those numbers overall are pretty granular Philadelphia's 200, 55 of that total. So none of those are a a significant portion. It's pretty diversified spread out.

Feddie Strickland

Got it. That's helpful. On switching gears for a second, it's great to see credit relatively stable this quarter. Your net charge-offs are actually lower. And what I had modeled Can you talk about what you're seeing in terms of trends in criticized and classified?

Curtis Myers

Yes. So our criticized classified is moving up slightly. I think the number's about 77 million linked quarter. So not not a significant move, but it is trending up a little. We are adding. So there's generation there and then there's resolution as well. So we're watching that very closely. When you look at the loans that are on moving in to our criticized and classified like there, they're pretty diversified and granular around C. and ICCRE. So we don't see any specific thing in the migration that gives us concern about and any individual portfolio, it's really comes down to the individual borrower of being able to be being able to navigate or being in a position to handle the current on economic environment.

Feddie Strickland

Got it. I appreciate the color. One last quick one, forgive me if I missed this, but what was the balance of ALCI. this quarter, if we have that you're clear?

Curtis Myers

Sure, we do. Yes. If you don't have any. We'll follow up with the very to give that specific number one reconciliation right here in front of us now from.

Feddie Strickland

Thanks so much for taking my questions.

Operator

Chris McGratty with KBW.

Andrew Leischner

It has gone. This is Angelo sooner on for Chris McGratty.

Curtis Myers

Morning, Andrew.

Andrew Leischner

Bob has gone on. So just on the NII guide. I'm just wondering what assumptions you're using for deposit mix and down based on those rate cuts you get to your low and high end of the guide.

Betsy Chivinski

So on the deposit mix, we are assuming some continued decline in the percentage of non-interest bearing deposits. We feel like we've been conservative and those projections relative to the longer-term history on you know, the beta on that is probably I don't want to quote that, but all I can see a relatively low base oil margins based on competition.

Curtis Myers

And we really see a stabilizing of the deposit as we get to CD. roles. As we look forward, the pressure of pricing up on CD. rolls begins to stabilize, if not not as significant begins to stabilize. So I think there's a lot of stabilizing forces as we kind of kind of look forward. The biggest impact is going to be a mix shift, not non-interest bearing two in interest-bearing, and that is moderating but is continuing.

Andrew Leischner

Okay, great. Thank you. And, Joe, the amount of CDs are maturing this year and on what those are rolling off that compared to what you're offering today.

Betsy Chivinski

So through on the end of this year, there's probably about $1.9 billion. And that weighted average rate is I have for the next 12 months? I'm doing math in my head here. Apologies. The weighted average rate is probably about a for roughly four 40. I would tell you, on average, the rate over the past couple of months, and we're putting on new CDs at a weighted average rate of about four 40. So as we get toward the end of the year, again, absent other changes, which we know they'll be on those, we're not going to really see an impact from those renewals or new CDs.

Curtis Myers

Yes. So we feel like we feel really good about how we've managed the duration in that book and each month as we move forward, we get, again to that role being a more stabilizing impact on the overall balance sheet.

Andrew Leischner

Yes, thank you. And I appreciate the quick math there. And then just last one, if I can come with that, you repurchased 1.9 million shares and you have $95 million remaining on the authorization. Are you are you still comfortable comfortable with the operating environment and your current capital?

Curtis Myers

I will stick to contemplate and further that Yes, great question. And we continue to evaluate that. Our priority is to support organic growth. First, second priority would be any corporate initiatives that we have that would require a capital and then buybacks. And so we would evaluate that environment and we feel that based on our capital levels, we could be active in our buyback throughout the remainder of the year.
But we may not depending on the situation, we have the authorization remaining for the 95 million on. And if you look back over recent history, we've used that almost every quarter to some degree based on the market environment that we see. But again, it is the the last priority in our capital utilization.

Andrew Leischner

Thanks for taking my questions.

Curtis Myers

Thanks, Andrew.

Operator

Our next question comes from David Bishop with optic group. Your line is open.

David Bishop

Yes, good morning. Good afternoon, Kurt. A question circling back to the first, I know you're sort of focused on the it may be the expense side of things, but other revenue enhancements that could emanate from this this project longer-term?

Curtis Myers

Yes, definitely the focus part of that initiative is really to accelerate growth in areas where we deliver high value for customers have more differentiation, and we feel we can we're doing well and can do even better with some of the initiatives and strategies that we're contemplating. So that is the first priority for us is how to grow the Company effectively got going for us. So we do think those accelerators exist, but there's also an efficiency and operating environment and tax benefit realization, things like that, that will enhance efficiency and productivity to. But that focus part is really on on the growth side.

David Bishop

Got it. And I know there's some noise this quarter with some of the branch closures and such or did that flow through to the I saw occupancy expense was up, Bob, as much of that was weather related or related to that initiative. I thought those were in other expenses, but I don't know Betsy occurring. Any any any guidance in terms of good rate or run rate on the occupancy side of the equation?

Curtis Myers

I'll let Betsy take personal care. She loves this expense item.

Betsy Chivinski

I'm sorry, overlapping here. Yes, the increase in occupancy was weather related on, so snow removal costs. So that's that should moderate and slight in the Northeast.

David Bishop

But yes, we've got to love. It appears you never know what's going to hit some also. Maybe a high-level question, Kurt, just in terms of capital allocation occasion appetite for more M&A. I know that the prominent Lakeland's deal had some So interesting appendages to it, dumb. I don't know that silver is your outlook for additional M&A. Maybe how comfortable you be maybe looking at maybe some distress, the distressed bank sales out there. Just curious your M&A appetite at this point.

Curtis Myers

Yes. So our M&A strategy remains the same. I've talked about the looking at it in two buckets, the one to $5 billion community bank really additive to our organization, and we're focused on those. We do think we have opportunity in that category. We also focus on the five to $15 billion 15, probably in being the largest, we would consider more strategic partnership. Yes, there's a handful of those, but we would consider those as well. So the strategy is the same. The environment is yes, we feel we have opportunities for M&A and we evaluate those when when we have the opportunities. And and if we if we can work on something that's that positively impacts our shareholders over the long haul, we certainly would would be active.

David Bishop

I appreciate the color there.

Operator

annual analysis with DA Davidson.

Manuel Navas

Hey, good morning. Can you just go into a little bit more detail on what's kind of driving the bit, I guess, slower end of the guide on loan growth. I understand the pricing side, just borrowed demand at high rates also have an impact, which is it is deposit gathering also slowing. It does also deposit gathering.

Curtis Myers

We've been doing a great job, I think in that that is not hindering our growth at all. If anything, I think it's an opportunity to fuel our growth as we're doing and doing a good job there.
The biggest thing on low growth is our pipeline of commercial loans on pipeline is up linked quarter and up year over year. But what we're seeing is the what we call the pull through rate on that pipeline. It continues to be challenged. Customers are very cautious and projects are not happening because costs are up, rates are up, things like that. So the biggest impact is not opportunity. It's either borrowers deciding to move forward on a project or spending or us making sure we get the right pricing credit terms.

Manuel Navas

I appreciate that. Does that does that mean that I'm, you know, kind of gets you to the high end of the NNI range, but perhaps that would be and increase in loan demand if we did get fed cuts, is that kind of the right way to think about it and what would be where you would be happiest history and we like stability there that.

Curtis Myers

So that's the easiest thing to navigate. So just some level of stability would be good. And we really positioned the Company to effectively perform no matter what happens. We have puts and takes on rates up or rates down on rates up. We benefit in some ways and have more pressure in some ways, rates down. We benefit in certain ways and have more pressure in certain ways. So there are a lot of different variables and what we really focus on is having the Company in a position that we perform effectively and no matter what happens to rates.

Manuel Navas

I have one last kind of like more specific modeling question. I had that you expect that the non-interest bearing mix getting around 22% by year end. Is that changed at all with a little bit more outflows this quarter? Is that still right, right around the same mix that you end the year at.

Betsy Chivinski

So we ended the quarter at 23.4. I think for your modeling, 22%, certainly reasonable if you look back over the past on 15 years, that that's a good range. You have to go way back to that much lower than that.

Manuel Navas

Okay. I appreciate that. Thank you very much.

Operator

(Operator Instructions) Matthew Breese with Stephens.

Matthew Breese

Good morning, everybody.

Curtis Myers

I'm sorry, Matt,

Matthew Breese

I wanted to go back to Fulton First, how much more one-time costs do you expect? And over what time frame do you think the majority of those one-time costs are going to?

Curtis Myers

Got it, okay. And yes, we do expect increased one-time costs as we get into implementing the changes that we're designing and working on right now. So right now, we just have the spend to develop the plan and then as we implement that plan, there certainly would be one-time costs from contracts and other things that we would consider efficiencies overall. So we do have those planned and we would be disclosing though, that as we move forward, our real goal is to get to showing everyone the plan, our costs we have and what benefits we're going to derive. We're just not there there yet, but we wanted to be transparent with that. We're spending money investing money to figure that plant out.

Matthew Breese

Okay. But should we expect kind of this quarter's $6.4 million in one-time cost to recur for at least the near term? Or is that an elevated figure in your view?

Curtis Myers

Yes, we really have those planned out again, it's a 18 to 24 months of and project overall, the onetime cost would be concentrated more at the front end of that. So thinking over the next couple of quarters, we would have more of the one-time costs and then we would begin getting the benefits spend over the full 24 months. So that I think you're thinking about it the right way, Matt.

Matthew Breese

Okay. I wanted to go back to the office portfolio. You have eight office relationships over 20 million. You discussed kind of the three in the central business districts. But I was hoping within the eight you could talk about maybe the three or four largest relationships. What are the sizes there? How are they performing maturity schedules and any sort of details on kind of LTV debt service coverage ratios for for just overall color on the biggest stuff?

Curtis Myers

Yes. So the on the top five borrowers there are in the 25 to $30 million range and balance in our largest deals, about 30 million in balances. We don't have any maturities that are coming up that we either are comfortable with or don't have a resolution for. So we feel good about the position of those largest. Our borrowers are at this point and we are paying we are paying close attention to every office loan we have from the $400,000 loan we originated in the first quarter to our largest one of of 30 million.

Matthew Breese

Are they all in? Yes, and then you had a you had a 3.1 million loss on asset disposals this quarter. What was in there?

Betsy Chivinski

Those were five branches that we have committed to close I believe they're closing the end of this month.

Curtis Myers

Early next week, they were close.

Matthew Breese

And then the last one is just on and commercial swap activity. My God, here's with slower growth that will remain kind of at a depressed level. But I wanted your thoughts on on whether we can get back to a kind of a north of $3 million run rate there?

Curtis Myers

Yes, it really comes down the mix of origination versus overall growth. So obviously, when you have higher overall growth, your your mix is better to have volume in every category. So it really what drives those numbers is the larger originations. So large C&I and large CRE originations are what really drive the number. We have a good core kind of recurring business. And that's why you see on that there's kind of a floor on that, that fee income each quarter. But to get to the, you know, the three and $4 million quarters that we've seen historically, you really have to have a few larger originations that are derivatives or swaps done on those.

Matthew Breese

Okay. That's all I had I appreciate taking my questions. Thank you.

Curtis Myers

Thank that.

Operator

That concludes the question and answer session. At this time, I would like to turn the call back Curt Meyers for closing remarks.

Curtis Myers

Well, thank you again for joining us today. We hope you'll be able to be with us when we discuss second quarter results in July. And thanks, everyone.

Operator

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.