Berkshire Hills Bancorp (BHLB) 18 Apr 242024 Q1 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Berkshire Hills Bancorp First Quarter 2024 Earnings Conference Call. [Operator Instructions] Also note that the call is recorded, Thursday, April 18, 2024.

And I would like to turn the conference over to Kevin Conn. Please go ahead, sir.

you Berkshire thank earnings first and call. morning, for Bank's joining quarter Good Kevin and Investor name Conn, My is Relations Corporate Officer. Development

Chief me Risk Chief with Officer; Chief today Nitin Officer; Operating Gray, Financial Mhatre, Rosato, Officer; Greg Officer. Here and David Chief are Sean Lindenmuth, Executive

non-GAAP Actual Please of Our remarks and see GAAP of forward-looking Disclosure Page X measures. our earnings reconciliation statements differ presentation, materially statements to non-GAAP and in Legal measures. will could refer from the non-GAAP referencing is include measures financial our forward-looking A results financial those statements. on release. news to included

I'll time, this over turn At to Nitin. Nitin? the call

you Kevin. I'll highlights for can joining morning, Good it thank and the us first you, quarter. begin you a on today. comments Overall, solid quarter. for where see Thank my was the everyone, X, Slide

operating ROTCE $XX.X up of reduction income X%. of X% Operating quarter. versus down quarter, fourth million of supported linked both net of a was basis XX by and $X.XX points were expenses X.XX%, noninterest EPS

are in metrics, expenses. credit and key trends encouraged by especially performance We the

reserve. fifth our costs row quarter charge-offs, X trend building down, with the linked quarter a of X.XX% fifth declining net of Credit loss basis loan increased up of to loss $X to continued allowance while in This point is declining we by net million. our the quarter charge-offs to X% consecutive by loan loans,

our optimization rate linked were professional provided expense and quarterly focus traction. service of X% and of January. quarter, the guidance continued Our technology down gaining run midpoint in below million lower Expenses $XX.X is reflecting were expenses,

for guidance flat compared expense low to to deposit initiatives. for year opportunities And to further previously full growth guidance banks. expenses efficiency improvement Our self-funding year-over-year generation growth peer continue while for for and we reflected look mid-single-digit provided expenses by XXXX,

margin million. pressure, quarter equity the ratio was tangible XX.X% balance Our common year-over-year. us. of and equity We is X while were with common were ended quarter. linked the ratio We first shares modestly expect interest repurchased up remains we that quarter XXX,XXX of compression for the Tier of in strong. Net $X.X believe behind sheet X.X%. a X% funding NIM the cost linked up worst and And Average up continued deposits we quarter

Average loan but banks X% continuing while potentially our larger clients to X% up grow quarter rate, year-over-year. and at faster balances up lending to were their a less than we've serve selectively reduced We credit could and that loans deepen appetite, given relationships. extend opted linked the have

We've updated multifamily pages exposure on diverse real resultantly our that a our new Those slide our slides our estate risky. and less and granular, portfolio added have properties. and highlight detailing overall portfolio is commercial office geographically now to

optimized make our to steady We through continue [ strategic real progress estate, priorities and ] branch network on sheet. balance

their sale further in of the XX presence announced We our the offset our to deposits securities sold York, network. the in branches our New tightens We fully sold of remaining York. sale. and profitability and committed with branch New We remain enhances to efficiency which footprint

branches strategy the focus in aligns similarly and profitability. improving of X tightening we footprint branch York recall, our the may New You sales region X The ago. with sold our years Mid-Atlantic and

transaction count the to now I'd to and quarter, second will network. right our are size the cover to branch security detail more in our close X corresponding XX. branches note of we intend we in David in the We details sales that the additional a believe consolidate of bringing branch moment. total

the year. a Most country. country Trustworthy Companies in Banks one were Trustworthy as the in America be for we're third consecutive to honored #XX of Lastly, recognized We in Most for Newsweek ranked by the

of vote confidence We exceptional are their day. grateful and our every to and customers bankers clients who service our deliver to to advice our for

to We moved close to we quarter this X-year for the come our end as slide the program. appendix best target have of our

We return assets operating ] and equity XX end return [ operating range on tangible on the our basis points are for at X.X%. target low near common at our of

$XX was $XXX basis. on million an PPNR annualized or million

Our and opportunity colleagues top ESG Berkshire XX. changes score apart. the thank together for continued external Net Promoter what made and is difficult us quarter strategy to their this and my internally, their sets remains brings use Through to to further to in all bank. our Bank work the improved of I quartile, environment to dedication our us corresponding our stakeholders commitment being hard first Score to want truly and all and this commitment and customers

strategic that priorities high-performing, intend be in community bank. our self-fund investments relationship-driven vision a to support We to

turn discuss David? that, I'll over to the detail. David financials our With more call to in

Syracuse The Albany. branch and south Thank our $XX and the locations of north western in you, branches X Nitin. the of Slide transaction. of $XXX sale million a deposits sale and part of summary shows million We including in franchise, includes loans. sold

of The expenses, and sale closure estate ensures going employees costs, forward. avoids Berkshire real employment reduces

expect revenue post transaction. million loss the of of reduction We expense annualized $X.X million, an $X.X

share. recorded We sales and related to sale, gain restructuring branch of expenses after tax $XX.X to branch third in million be the approximate per million. $X.XX to expect quarter close the in or the the pretax $X.X We QX

below-market $XXX Slide to of securities $X.XX sale. sold We of the the or per of share. sheet. value million the an mismatch of assets million the loss and X $XX.X sold to offset that on sold amount shows loans securities We of deposits incurred and details between balance and after-tax reduce market securities we

the shows quarter. of an overview first X Slide

up interest than noninterest million up were quarter. X.XX%, per $XXX,XXX $X.XX quarter, $XX.X linked declined linked million, margin interest or and was As operating fully up quarter. Net earnings basis linked income mentioned, income was linked diluted X% million $X.XX points or $XX.X X% Nitin X less Operating of $XX.X share, net quarter.

linked loans quarter. Average $XX deposits X% increased down $XX million. average million, and $XX.X were expenses million, Operating increased

positive. average for or basis of XX $X our to points for trends our as We increased credit million losses the Net loans. of million loans by basis basis points allowance credit quarter charge-offs quarter, million, XXX down losses were $X year-over-year. and the bringing allowance were remain was points in expense for Provision credit $X XX

our decline runoff balances, Slide detail on up which growth X average $XX balances Upstart were in quarter consumer driven more of modest portfolio. loan primarily modest by shows million the X%, reflects CRE. linked The or the continued in

increase Average a XX% time $XX balances. deposit deposits. QX average were Noninterest-bearing the in deposits money market The mix shows quarter. in an QX. of [ X shifted total ] decline versus in increased million linked and deposit deposits noninterest-bearing in and deposits as percentage XX% deposits with Slide

Deposit points, up XX costs basis linked were XXX points basis quarter.

tightening. of points Our cumulative beta is total through XXX XX% deposit basis Fed

linked Turning up margin Slide income points interest X net Net basis net was X, quarter and to The interest flat was show year-over-year. X.XX%, income. down interest we quarter. linked XX%

the our to Given we for relatively securities, the sale rest in of lower-yielding flat NIM of second year. by quarter the increase to and expect points X remain the basis

$XXX,XXX to QX. market sliding and appreciation. down market servicing XX tax Gain some swap X% primarily in the fee were of QX or premiums on by SBA Slide was were lower up shows $XXX,XXX, commercial operating $XXX,XXX and into higher fees seasonal income income, preparation up higher up and Wealth management on due sale fees. loans loan of Loan-related linked fees fees $XXX,XXX production driven quarter.

BOLI value we a lower lowered securities in amortization modest Other the and had swung changes credit expense reflect gain quarter. a on we the which in fair quarter. to fourth PAM Recall, tax income loss in quarter, first and fees accounting, linked

Recall, Slide million. was down there technology XX Operating million. $XXX,XXX, expense a expenses so X% $XX.X to closer were $XX.X normalized were quarter fourth shows expenses. quarter to true-up fourth of quarter expenses linked

quarter by expense normal lower which professional and taxes, number lower is about technology million [ and offset The expense expenses. by quarterly ] smaller run were services driven expenses, Other compensation includes occupancy by and partially workout loan seasonally rates. $X.X items, decline a which above stationery and higher increased driven of this postage. Compensation declined, lower expenses, payroll was

the per share million sale. related to costs expenses million GAAP pretax restructuring of $X.X of or included $XX branch $X.XX

loans are before, every thoughtful or Nonperforming remain committed we $X.X necessary linked I've to year-over-year. dollar Net with quality or the grow that expense and XX and and loans efficiently revenue year-over-year. As base. and million XX% down and our we run asset granular to reduce were The said managing is earnings. Slide down XX is metrics. flat to approach a basis to expenses of ensuring to summary linked We were is bank $X taking quarter are of of million down discipline $XXX,XXX points spend quarter we committed transparency. starting charge-offs

for chart with XXXX. ] XX-year our points. in I'd the basis Berkshire's since charge-off appendix rates industry net [ to a the average note We've loans charge-offs is that the year XX included

the in book with that Slide terms period-end portfolio collateral The of geography quality XX diversified XX CRE and shows at of remains loans. nonaccrual type. CRE of basis loans points our solid, well is credit

Slide portfolio. office on XX our has details more

of majority As office XX% is noted remains portfolio in and is quality believe ratios the We this weighted portfolio large space. solid. quarter, last of A loan-to-value diversified, a and the well are and portfolio asset average suburban about the Class underwritten, our

book. assets XX or our nonperforming and details have The million of loans. $XXX multifamily footprint. is across is the currently shows X% Multifamily well X% We loans are portfolio charge-offs, Slide total or our diversified of of criticized The book portfolio. no net

credit positive, exist, we new metrics very are uncertainties existing and carefully. quality recognize current portfolios originations are economic While and we both monitoring that

quarters on basis. returns the over XX Slide shows past and GAAP an a operating on X

focused medium-term operating performance current operating remain forward As know, more the is you improving a presenting but and on environment. headwinds, we look environment normal to

Coverage the was liquidity shows XX end versus available first quarter. deposits our deposits. XXX% uninsured at the of uninsured of Slide

equity points was TCE improved common The XXX. X ratios. ] [ to and ratio capital the XX ratio basis shows XX Slide Tier XX.X%,

loan Our top capital growth. priority and deploy capital to organic deposit support management to is

repurchased below stock remain share. price ]. stock we tangible per $X.X is given an average [ book Secondly, of In that at biased we value of trading $XX.XX cost our QX, stock to million repurchases,

neutral the this outlook, In provided in be which outlook, sale, branch January. we security was terms XXXX combined with earnings the quarter's to sale, of expect effectively to

like turn I'd back that, comments. to With further it for to Nitin

our the The XX this be The Thanks, operating rates lower the been day even environment yield exceeding And extended hit banking rates previous longest Fed in to in for has of inversion for historic further. quell the inflation. XXX of expectations interest David. months, record increases continues pivot to given at March record inversion challenging, industry its XXXX. to curve the

control to can't we XXXX. In responsible management. on into late and normal profitable quality asset organic growth. meanwhile, more We a selective, forward the XXXX focused proactive the look intently in environment expense environment, banking loan and focused we remain and rigorous we including and While growth management, deposit for we levers, what for several are opportunistic controlling hiring and have can macro on

I'll With questions. you that, for turn over Operator? operator it to

And Bishop [Operator from your be Group. first question Instructions] will David at Hovde

the late bleed curious, the to for of, some the able been seen you've that loan as number number you've Is in both that press in to in Or starting starting loans is year. and release of an terms reported growth? senior Just talent, impact deposits? one, hire of two, pipeline of terms into

Yes. Dave, the short answer yes. is

We wealth the pipelines with is building and And management both highest build up number deposits its at some where showing we're fact, deeper referrals are for of up also hires the in seeing the benefit is the our of level. in existing -- the new the clients. group, of relationships that

loans for both driven and hires. pipelines beginning pipelines sides up. by up the see year-over-year balance those are we're the on sheet, the results, to partly yes, are So and both And deposits of built

And banking? any commercial broad-based sort of just terms hires that those is they in? Or it segments of in specialize

towards the and CPAs little the specialized is in. professional more I not-for-profits. segments and that's hires It highly that joined And law and us targeted, most of think have targeted Dave. a where firms have It's

clients of higher-value So we access we as have didn't much previously that new to. to types beginning are see clients and

the the David, that would David. this focus on than loan I the us to side is only for more add The thing side. deposit is is

interest deposit balance sheet, existing individuals the -- origination side. both strong -- sides -- It's to our of loan really on lead is they have the do these while capabilities. We are

And about more Nitin, the just curious disclosure XX.X. from I capital, I Got XXX% little year. CNI then, side it. bit always on On growth; the risk risk-based a think, appreciate weighting holistic capital basis, XX.X, growth there. a leading categories, obviously,

guiding Are don't there on risk-based to of want go you're or sort sort targets the managing perspective? any internal below to, capital of

really. not No,

at are the guardrails our kind within we where of manage a metrics. point, for with low pleased we're capital don't think operating our We I we terms target high ranges. we're where the around have risk-weighted to of specific internal well be would in points, assets at. We those do like and

looks in drive credit a question, Is portfolio, you like the balance where but credit Got Just fine. more? that just here up I Upstart sheet? and -- a just the it. of are part clean guess, could there to I curious, It majority just maybe continue bulk, sale of tripped we bumping it's going of losses. the continues that final time credit along to then a pursue to bulk the even see know portfolio off just small slowly -- And

to its about Yes, Dave, It teams the run it anticipated, portfolio. tightly quarters been on now, the the pace I than mode partners performance. and of improve we you're and X think and manage continues less our to for current is right. X% off It's monitor portfolio to runoff with at our

that opportunities runoff, the we're accelerate also including opportunities looking to divest. But to at

are all the the table, think on there. manage, but focus monitor our contain current I options and to curve So is

will Sandler. from Fitzgibbon be question Next Piper of Mark

question on First I the fee is line. had

previously full run million 'XX below come pretty rate, guide was Your you $XX that. this far up $XX annualize if the sort million. to quarter's of year you for And

you if for pretty be some Or course guide that to big think the SBA, loan help some during items will that get are there wondering uptick through was a you closer gains? of sale us could likely that it there other look I good the what to changes Is in we year? should the of are number? So

it the line what has SBA was little quarter. a light up would about the of sum in down quarter. to fees say Mark, What quarter X I than first second thought out, a down close I been in we first There's in Yes. called the little the linked a hit less in tried to $XXX,XXX row. is wound for comments That the quarter. was quarters -- were pushed

quarters, Premiums couple been last starting lower recover. the of it's to premiums. Over are

securities item I fair So we're just noise market items year securities, the what There's the just feeling bounces to on better fair -- as or adjustment bounce a unfolds. line The that call back that I value out few line we adjustment called mark would about as around. just will that is on also value well.

fees, good really couple light syndication some on quarter meaning which fees. swaps, a We have had a for other and quarters of been now for loan-related fees, servicing

onetime things a PAM income, -- other I fee out impact that So fall point on is on negative the only out. the will so the had would a accounting small impact

fee So in not fees think we -- think line admittedly, while better light, I and see I'm quarters. really worried coming about the we'll

are that Okay. sense secondly, that portfolio, with of point and it branch Great. just to cleaned likely kind onetime Or a of of was sales? in made see then the this sale security the to the conjunction And David, we up you any deal wanted be? kind more kind

Yes.

was and But second done, to one linked for done a essentially the X we're been in branch ] sale. quarters X [ row. think call I since now. clearly, I'd it it's the

of now balance Our just about XX%, XX% sheet. are down under the to securities

end still pledging peer some of customers. the for we have the low of group, municipal requirements our On

had security like So anticipate I -- X I last think any we're box the don't sales further quarters. we've

And your is franchise the of comments, out, didn't fact pretty very you the Nitin, sold the reins network. me felt in Okay. surprised sort like branches you the pull like and in that of opening size were XX you much. branches, because referenced geographically it it feels your guess, then, the branch right at close still I spread really that XX to you

and wondering, target getting it wouldn't the the I profitability? June actions footprint decent you're amount take make to to to you're you the try draconian for shrink a goals some more I'm below set, that close maybe program still guess improve that sense to date financial Given that and best the

has the a would Mark, geography, So Syracuse of which be and really geography-based part now. I tightened which been say network, the to going all we Mid-Atlantic on western we sprawling had the way used into

size about to close of where terms peer peers at in and about the coming XXX-plus look that's the were saying reference you are. groups, And mid-XXs, that's network. we're if to right the We the branches

or is and going locations to those our the always branches to determined This that footfalls consolidate by evaluate of that's teams in to swap things That's the and business footprint coming and not stop nature. the opportunities in.

are investing today markets, new And in share profitable growth. anticipate core have of new to the the branches. we hold we all we geography where part What our on that's while we to continue have market that the the geography, high

So I not the we'll for say say, swap right-sized continue to with to be the consolidate the look caveat think and pretty becoming as arise. close to it's opportunities believe it's we're that to network, we done, to what to it's that but opportunities

at be will question Hunsicker Laurie Seaport Next from Research.

could security we us the can sold, quarter? when you in Hoping March, sales. what was I was of but remind yield, approximate just David, the was it ... were on March, the with start just end assume date back the what those and

Yes.

after the So announcement. we few started days a

So the the just security the throughout March. on the And see sales average occurred market were in ]. X% we under -- you of month [ yield slide, X.XX%

[ you the month margin great. have then the of X.XX% March? And ], spot do for

]. for margin [ was Spot Sure. March X.XX%

sale about reflected not you're X months if my but -- fully very was impact to where comment I'm was X.XX% exactly around discussion the sale, similar would March going, in it's -- December security ] [ the sure of ago, you're spot. be we what the not the the the So talking security had not it,

Okay. Makes a lot sense. of

that? you and have about loans? all I David, you your those retain too, the to in where the you Nitin, are additional expecting deposits thinking and XQ, are up How coming charges? closures located? And do just then comments, And guess Good. the branch X Okay. are And around

Connecticut, our and have bankers with they're conversations clients and transition comfortable kind pretty private Laurie, based our had managing through key in Yes, they MyBankers we there. of -- and all are there, the

pretty So good consolidating deposits about of while those retaining kind we feel locations. those

On the think I ... charges,

don't we a yet, have No, Laurie. Yes. number

Okay.

Okay. And the you then are there? What saves? what expecting cost about

mean very is I limited branch. one a significant. service Not small

consolidation. are X other The

That's in pencil what in in seasonal expenses trying too this much the company. with change I'd well to at focus expense real So comments wouldn't point. on quarter, message. that our And I how around this were uptick doing controlled the especially for we're management focus on I'd of the focus payroll.

to just to [ for you're is million million coming yes, that, yes, And $XXX this which Absolutely. way great. $XXX ], expenses clearly that quarter, guidance your last year, point, in below

want just I to right sure make this the thinking about I'm way.

if look the down out XX out your on you ] so at the get $XX reduction mergers, expense this associated axing [ I just bit So FICA, expenses around with the just X Maybe branches. [ $X.X ] closures. quarter, for million at you're the axing or [ ] the a million, another tying

going you're should that that? how about $XX that there we be Are really any year. spending you How quarter run is down through? [ coming spend you dropping spending had to any that? of away thinking year, pipe through a all ]? million? it should kind be are rate we Or Or But think of -- -- we the any else what about at into Is $XX tightening? million, is we're other you're head quarterly doing this -- obviously, additional a only there Is sort as next significant in of we there as

quarter, us How maybe should think may expect question when think about a that? be we look should just run we dollar pretty help as largely fourth just is on quarter be rate? what yes. should to Or expense Or clean, fourth about -- everything we a better

do a clients will minute strategic a highlighted we opportunities in David also But to relationships the give what have. earlier, David that to invest as to through I'll think is on deepen continue that. the deposits, level, grow we and Laurie, just with

more So the of fees. bankers, private invest to relationships asked and where investments looking it's larger especially in management frontline banking, get types areas, cash if deposit you going commercial to in about think opportunities for that things be I finding we we're in,

our platform. public refresh. our to website continue We're launched also looking improve We've do and mobile looking to to our platform. digital We're online

So I also of going think little location looking there. a be We're a swap within to bit Boston. to there's investment do

elements that those invest ensuring think we future. that the are I are in the So also

technology that So banker will and experience, stack. those types investments improving the continue client would to on be of go experience our

Got it.

Okay.

-- ahead. really yes, so go And

are high kind questioning context the and January. of No. in I right? on we and we Mark on the year going are we were as quarter, light put we a better the better in on full are credit, earlier. of on We goods were and the to what out fees, was what light So level, NII, was answer bads, the full the guidance and And at were expenses.

saves, that's that of we Project give and Project A, point, earnings the change 'XX the A, point income the the we we made inclusive the to right, out caught up, no made cost because from but sale. security

with make So to is, the We'll quarter while take down not we're the going expense all are on point to only controls have one gave, to We're conjunction we the year. expense this because have, we're through the all midyear. yes, in this ready yet. discussion the probably of of guide the -- we continue that investments light guidance expenses we not where you're that at we

KBW. Next question of Chris will O'Connell from

[ the to Is start in little of deposit are balance held-for-sale short the I yields duration sheet, they off amounts there. the ] Just truncated of in bit averages -- $XXX the the the the to [ it million $XXX for Are want a average were and know on there? on on million good there -- the loan reflective or ] yield due that is cost? that skewed terms terms they

tried page talking on the the release, this call out in margin, margin Chris. press the So if to you're we

sorry, And Page XX I of what a on said X, tried loans on release. short The Page averages between to the related press yes. big there's answer, endings we think -- Project and shows good, A. the that with difference I'm So numbers and -- deposits I are -- up the associated

of $XX regular day see average sold of you for we loans that out answer portfolio balances, only tells Does portfolio. quarter. the we The a you example, that that the into your the in question? So million footnote for them held-for-sale low moved

one just $XXX million noticed $XXX thing million and said at Yes, ]. I [ you

million [ for just -- for it's ] think for liabilities, I $XXX apples-to-apples. total assets to ] $XXX earning million [ and

No, I just referring yields. was held-for-sale to the

Yes.

Just ] the nuance just the -- impact the and loans the quarter. so $XXX [ there, is the million Chris, on

If out interest-bearing you look you can we carefully, the as deposits well. that noninterest-bearing between and see broke

the So $XXX million is just the interest-bearing piece.

-- to Great. seem indicate to XQ. once just so on occurs XQ should the sale And mean then I wanted actual the going talk the in the that fairly margin be to flat commentary impact to there, NIM you into the

really expecting there's of impact transaction much So you're occurs? once the an -- not

Yes.

So admittedly. it's complicated,

So Laurie security the sales. in really spot NIM the with was reflecting March the is making point I not

you sale sale QX going the margin, the helping have So security way. in in you other have deposit QX

is Our risk neutral. position interest rate

months we asked been that in but that's that's talking context here. -- to about ago, haven't X. important probably X the we think were yet, We're -- I X

people talking Fed Some about X were moves.

and we're a was ago, at talking And were now X. September, it about Now month July, X. there

So that's interest an of amount around rates. incredible noise

balance news. we is us, basically the neutral sheet, which have good For a

competitive perspective And At all market how one we year gyrations our aren't the pressure the going over thing. to this end cost. that's drive place. NIM margins are deposit And deposit is of the all the the So behave. from my costs of the all day, moving

news. the up XX were QX they good news In great Not is quarter, XX before The they basis up deposit the But XX to points, QX. up were points. basis that, costs basis points. quarter prior the were

the the while over. behaving going have all is We're up, books deposit an all they're generally about we So all that all and industry, almost as for a and are costs year, the abating. -- pressure CD -- rolled

around rates. going that pace of rates rates. else's. That's deposits year and #X the going market very increase, close So that our market rates for why make the the to to kind we're slowing margin ultimately, market is our of low of old balance to assumptions second to the the we close to But derivative of cost the They're drive now issue not down. everyone is that's through

our if and quite we've steady, pricing aggressive the improved with then from are get yields on side deposits really benefit So all we that lose security competitors. sales. the asset can deposit much But more them

That's quarter until time of plan third it. Got cash and keep elevated the to that is in the then the bring the somewhat helpful. transaction down? And here

Yes, there. two comments

have more do quarter. $XXX million, a second that less memory little some than off we borrowings So come wholesale will It's serves. the in if

take So some cash balance that down. that will of

it is holding. liquidity we're just of Some excess

not expect I cutting wind in to significantly. don't come after we'll down, So transaction but settles. up it think it until half the

you're of the into the talking third So really quarter end fourth quarter.

it. Got

did the then Okay. appetite guys here. as from million Great. And you here, buyback far $X as

to more little You million especially have Do gain? upcoming a [ the tangible bit little aggressive a ], with touchwood you're $XX expect the a ] you book. authorization. get And bit below now trading year, at throughout [

out, a Project because would now. just I value market for been say point -- I Yes. we've but under while out blacked A. tangible in under we book ourselves quite of QX, dependent, Chris, would

than little lighter been. would a it So was have QX otherwise

Thank ahead. I go the to Mr. time, At turn over call would this you. Mhatre. like back Please to

Sylvie, today you, great and all a Thank call you on for for in thank Have be interest us day, Berkshire. and joining our well. your and continued

conclude for lines. attending. time, ask you for does disconnect your again, indeed and we conference sir. that you this at today. call do your please Thank this And you, gentlemen, thank Once Ladies