First Internet Bancorp(INBKZ)Q2 2026 法說會逐字稿

My name is Trevor and I will be your conference operator today. At this time, I would like to welcome everyone to the First Internet Bancorp earnings conference call for the second quarter 2026. Please note that this event is being recorded. It is now my pleasure to turn the call over to Julia Ferrara from ICR. You may begin your conference.

Thank you, operator. Hello, everyone, and thank you for joining us to discuss First Internet Bancorp's second quarter 2026 financial results. The company issued its earnings press release earlier this afternoon, and it is available on the company's website at www.firstinternetbancorp.com. In addition, the company has included a slide presentation that you can refer to during the call. You can also access these slides on the website. Joining us from the management team today are Chairman and CEO, David Becker; President and COO, Nicole Lorch; and Executive Vice President and CFO, Ken Lovik. David and Nicole will provide an overview and Ken will discuss the financial results, and then we'll open the call up for your questions. Before we begin, I'd like to remind you that this conference call contains forward-looking statements with respect to the future performance and financial condition of First Internet Bancorp that involve risks and uncertainties.

Various factors could cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. These factors are discussed in the company's SEC filings, which are available on the company's website. The company disclaims any obligation to update any forward-looking statements during the call. Additionally, management may refer to non-GAAP measures which are intended to supplement but not substitute for the most directly comparable GAAP measures. The press release available on the website contains the financial and other quantitative information to be discussed today, as well as the reconciliation of the GAAP to non-GAAP measures. At this time, I'd like to turn the call over to David.

Thank you, Julia. Good afternoon, and thank you for joining us. We're excited to report solid second quarter results with total revenue growing 23% year over year, pre-provision net revenue up 28%, and earnings per share of $0.27, up significantly from the prior year period. More importantly, this quarter marks a meaningful inflection point in our credit trajectory. For the past several quarters, credit has been the primary overhang on our results and on our stock. This quarter, that story began to turn. Over the past 18 months, we took a hard look at the credit outcomes we experienced and made meaningful changes to our underwriting, servicing, portfolio management, and resolution processes. Our disciplined actions are now translating into clear, measurable improvement, and we believe the credit trends we are seeing today mark a clear turning point in this cycle. Let me walk through why we feel confident in that conclusion.

First, provision for credit losses, while still elevated on a historical basis, declined significantly from the prior quarter. Net charge-offs in our SBA portfolio were down almost 50% from the first quarter, reflecting the enhanced underwriting, servicing, and early warning capabilities we built over the past year. Second, non-performing loans declined from the first quarter, and total non-accrual loans declined for the second consecutive quarter, down 19% from year-end. Furthermore, non-performing loans, excluding government guaranteed balances, declined to 1.07% of total loans, down from 1.22% in the prior quarter. And third, perhaps most encouraging of all, delinquencies fell significantly during the quarter. We experienced a sharp drop in early-stage delinquencies, and total small business lending delinquencies declined to $1.5 million from $13.3 million in the prior quarter. The reduction in provision expense demonstrates that our credit performance is improving today.

The decline in non-performing loan formation and delinquency gives us conviction that credit costs will continue to moderate as we move through the second half of the year. At the same time, we continue to optimize the loan portfolio. Continued runoff in existing portfolios, such as healthcare finance and residential mortgage, combined with elevated payoffs in franchise finance is creating capacity that we are redeploying into construction, investor commercial real estate, single-tenant lease financing, small business lending, and emerging verticals such as wealth advisory lending and embedded finance, where we see better risk-adjusted returns and more efficient use of our balance sheet. A good example is the evolution of our relationship with Jaris, an embedded finance technology partner that helps payment processors and ISOs modernize their platforms through capabilities such as digital onboarding, instant payouts, and business financing solutions.

Historically, we funded loans originated on Jaris's platform and retained a small portion of that production, selling the majority to a fund managed by Jaris. Beginning in June, we took that relationship a meaningful step further and are now retaining all originations going forward. The short duration, high-yielding assets should be accretive to net interest income, and the expanded arrangement reflects the trust and depth of collaboration we have built with Jaris over time. Looking ahead, we are navigating the current macro and geopolitical environment with prudent strategy and appropriate discipline. Our credit trends and earnings are moving in the right direction while we continue to deepen high-value fintech partnerships and invest in the technology and talent that differentiate our platform. We believe this combination of improving credit, disciplined capital deployment, and expanding non-interest income positions us well to maximize growth and profitability in future periods.

While the financial results speak for themselves, what gives us confidence in the future is the operational progress occurring throughout the company. I will now turn the call over to Nicole for additional perspective on the changes we've made and why we believe they position First Internet for continued improvement in the quarters ahead.

Thank you, David. One of the most encouraging takeaways from this quarter is that the improvement we're seeing across the business is the result of a sustained organizational effort over the last several quarters. We challenged longstanding processes, invested in new capabilities, and asked teams across the company to work differently. The numerical improvement in credit is evident in our results, and the strength of the underlying processes producing those results lays the groundwork for improved performance in the future. Over the past 18 months, we've strengthened underwriting standards, enhanced portfolio monitoring, expanded special assets capabilities, and invested in predictive analytics and early warning tools that allow us to identify borrower stress sooner and engage customers earlier. We also created greater separation and specialization between portfolio management and problem loan resolution, allowing both teams to operate more effectively.

In small business lending, net charge-offs declined significantly from the first quarter, delinquency trends improved meaningfully, and new delinquency formations slowed during the quarter. That reinforces our view that the portfolios we're originating today are performing in line with expectations and that our actions are producing durable improvements in credit quality. In franchise finance, our focus remains on disciplined execution and timely resolution of legacy problem credits. During the quarter, our special assets team took action on several relationships that drove elevated charge-off activity. However, the pace of loans moving to non-accrual status slowed dramatically, and early-stage delinquencies have declined over 85% since year-end. I want to thank our credit administration and portfolio management teams for their tireless execution. While work remains, the evidence suggests the remaining issues are manageable and increasingly concentrated.

We've also become more deliberate about how and where we deploy capital. Over the last year, we evaluated major business lines through the lens of risk-adjusted returns, capital efficiency, and long-term growth potential. That process led us to lean more heavily into businesses where we believe we possess durable competitive advantages, including banking as a service, embedded finance partnerships, and select commercial lending verticals. The expanded Jaris relationship is a good example of that approach in practice. We continue to see opportunities to deepen relationships with partners that value our compliance expertise, technical capabilities, and ability to operate at scale. In many cases, those opportunities allow us to generate attractive returns while using capital more efficiently than traditional balance sheet growth alone. Another area where we continue to invest is technology and automation.

As pioneers in branchless banking, technology has been central to our business model from the beginning. But our technology strategy is grounded in business outcomes, not in chasing what is novel or interesting. Every investment is evaluated based on its ability to improve the customer experience, strengthen risk management, enhance efficiency, and generate an appropriate return on capital. Looking ahead, what excites me most is not any single business line or individual metric. It is that we are seeing progress across multiple dimensions of the company simultaneously. Credit trends are improving. Our funding profile continues to strengthen. Fintech and fee-based revenue streams are growing, and our teams are executing with discipline. There is no finish line when it comes to building a better bank, but the operational foundation we have built over the last several years positions us well for continued improvement in profitability and long-term shareholder value creation. And now I'll turn it over to Ken for additional insight into our second quarter performance and 2026 outlook.

Thanks, Nicole. As David mentioned, we delivered solid second quarter results with net income of $2.4 million, or $0.27 per diluted share, both up significantly from the prior year period. Before discussing operating trends, I want to provide additional color on credit. Provision for credit losses was $13.4 million in the second quarter, down from $16.3 million in the first quarter. Net charge-offs totaled $16.9 million, up modestly from the prior quarter, but with important positive trends beneath the headline number. Net charge-offs in small business lending totaled $4.8 million, down significantly from $9.1 million in the first quarter. Franchise finance net charge-offs totaled $11.6 million, $6.7 million of which were covered under specific reserves previously applied to these loans, and as Nicole noted, the pace of franchise finance loans moving to non-accrual status slowed dramatically.

Non-performing loans were $60.1 million, or 1.58% of total loans, down from $61.6 million, or 1.63%, in the linked-quarter, the first sequential decline we have reported in several quarters. Total non-accrual loans declined for the second consecutive quarter, which was partially offset by an increase in franchise finance loans 90 days past due as certain loans worked through the resolution process. We expect our efforts to ultimately result in the full collection of principal and interest related to these loans. The most encouraging data point was delinquencies, which declined to 78 basis points of total performing loans as of June 30th, down from 106 basis points at the end of the first quarter and 101 basis points at year-end. In dollars, total delinquencies declined 26% from the first quarter to $29.1 million, and early-stage delinquencies declined significantly. Taken together, lower provision for credit losses, the continued decline in non-accrual loans, and the significant drop in delinquencies support our expectation for continued improvement in credit costs throughout the remainder of 2026.

Turning to operating trends, total revenue was $41.1 million, a 23% increase over the prior period. When combined with well-managed expenses, pre-provision net revenue totaled $15 million, up 28% year over year, driving continued positive operating leverage. Linked-quarter revenue was down primarily due to lower gain on sale revenue from seasonally lighter SBA origination volumes and our more disciplined underwriting approach. As we think about what to expect in the third and fourth quarters, I would note that secondary market premiums remain strong, production levels picked up in the back half of the quarter, and we expect origination volumes to increase in the second half of the year. The decline in gain on sale revenue was partially offset by sustained growth in fee revenue from our fintech partners. Payments volume and fee revenue continued to build on a trailing 12-month basis, up 256% and 222%, respectively.

Net interest income was $32.4 million or $33.6 million on a fully taxable equivalent basis, up 16% and 15% year over year, respectively. Net interest margin improved to 2.39% or 2.47% on a fully taxable equivalent basis, both up more than 40 basis points from a year ago. Margin expansion was driven primarily by continued improvement on the funding side of the balance sheet as the cost of interest-bearing deposits declined to 3.38% from 3.92% a year ago, benefiting from CD repricing and growth in lower-cost fintech deposits. On the other hand, earning asset yields were essentially stable. While period-end loan balances were up from the prior quarter, average balances were down about 1%. Growth in construction and investor commercial real estate, single-tenant lease financing, trailers, and emerging verticals, such as wealth advisory lending and embedded finance, was more than offset by early paydowns and lighter small business lending originations earlier in the quarter.

As a result, we carried higher cash balances, which tempered the pace of margin expansion on a sequential basis. Looking forward, pipelines are strong across several commercial lending areas, and small business lending production is expected to increase significantly in the second half of the year. In addition, the increased retention of embedded finance loans is expected to further enhance net interest income and margin. Deposit repricing remains a meaningful tailwind. CD and brokered deposit balances declined more than $200 million from the prior quarter as we continued replacing higher-cost funding with lower-cost fintech deposits. The weighted average cost of CDs maturing during the second quarter was approximately 4.11%, while the average cost of on-balance sheet fintech deposits was 3.19%, and the cost of new and renewing CDs was 3.63%. The third quarter is a particularly large maturity quarter with more than $445 million of CDs coming due at a weighted average cost of 4.04%, and $700 million in total maturing in the second half of the year at a weighted average cost of 3.94%.

With fintech deposit and CD replacement costs at significantly lower levels, we expect this dynamic to continue supporting net interest income and margin. To summarize our outlook on net interest income and net interest margin, lending pipelines are strong heading into the back end of the year. We continue to optimize the loan portfolio with the composition now about 42% variable rate providing the ability to maintain and increase yields on interest-earning assets. When combined with the ongoing ability to drive deposit costs lower, we expect to see sustained expansion of net interest income and margin throughout the remainder of the year. Regarding our outlook for the remainder of 2026, we remain comfortable with our full-year EPS forecast of $2.35 to $2.45. However, with a smaller balance sheet and continued opportunities to grow fee income, the mix between net interest income and non-interest income has shifted somewhat, along with a revised outlook on operating expenses.

We now expect full-year loan growth of approximately 4% to 6%, reflecting elevated early payoffs, lighter first-half small business production, and, as secondary market premiums remain attractive, lower retention of guaranteed SBA balances, with stronger pipelines expected to support growth in the second half of the year. Our fully taxable equivalent net interest margin outlook remains in the range of 2.75% to 2.80% by the fourth quarter based on the dynamics I mentioned earlier and excludes any interest rate cuts or increases. With a smaller balance sheet, we now expect full year fully taxable equivalent net interest income of $141 million to $142 million. This revision is partially offset by strength in gain on sale premiums and continued fintech fee income growth, enabling us to raise our non-interest income outlook to $40.5 million to $41 million. Additionally, we are lowering our non-interest expense outlook to $106 million to $107 million, reflecting lower compensation costs, while maintaining investment in technology and AI to support revenue and risk management initiatives.

Finally, we expect provision for credit losses of $47 million to $48 million for the full year. Based on the improving trends in non-accrual loans and delinquencies, we expect provision expense to improve sequentially from the second quarter to the third quarter and again from the third quarter to the fourth quarter. With that, I'll turn it back to the operator for questions.

Your first question comes from the line of Brett Rabatin with StoneX.

First, I wanted to talk about the dynamic on the NII guide in the back half of the year, particularly given where you're expecting the margin to be by the end of the year. If I'm doing rough math, it basically implies that your funding costs decline about 15 basis points and your earning asset yields are up about 25 to 30 basis points. Is that a fair way to think about it? And then can you talk about how much Jaris and these other things might contribute to higher earning asset yields?

Yes, I think you're in the ballpark, Brett. If you think about the deposit repricing opportunity, as we mentioned in the prepared comments, we have a lot of CDs that are coming due here in the third quarter. In the CD market today, we are not very competitively priced. Historically, a renewal rate might be anywhere from 60% to 70%, but now it's down in the 40% range. We're seeing a larger amount of higher-cost CDs rolling off and simply being replaced generally by fintech deposits that are somewhere in the 3.15% to 3.20% range, or by small business checking, which are much cheaper. We expect continued deposit leverage throughout the rest of the year, more in the third quarter than the fourth quarter. In the second quarter our deposit cost outlook was about right; what came up short a little bit was lending. Average loan balances were down due to lighter SBA originations earlier in the quarter, offset by growth in construction, investor commercial real estate, and single-tenant lease financing.

Looking forward, our pipelines in construction and investor CRE are very strong. We expect significant draw activity in the third and fourth quarters. Many investor CRE projects are priced at a SOFR plus 3 range. Single-tenant pipeline is strong. Given where long rates have moved recently, we're pricing single-tenant loans at spreads we haven't seen in some time, priced at a 225 to 240 basis point spread over the 5-year Treasury, which results in yields today in the 6.40% to 6.60% range. On the Jaris side, we're excited about the partnership. Historically we retained about 10% to 12% of their origination volumes. From January through May, retained balances were small, roughly $4.5 million to $5 million. We provided senior credit to their fund at a SOFR plus 3 or 4 type yield. Going forward, earlier this month we acquired a pool of loans from Jaris as they wound down their funds, about $15 million in July, and our expectation is we'll have balances in the $45 million to $50 million range when combined with retained production.

Those loans have very strong top-line gross yields. They typically have a seven-month turn; it's structured similarly to factoring: the faster they pay, the higher the yield. Gross yields on those are very high, and when combined with other higher-yield categories and the runoff of lower-yielding portfolios like healthcare finance and mortgage, the pathway to higher yield on the overall loan portfolio is visible when you put the pieces together.

That's all really helpful color, Ken. Appreciate that. And then just on the credit side, obviously the SBA portfolio is having lower net charge-offs, delinquencies are down 20-plus basis points linked-quarter, dealing with the franchise finance portfolio. Do you think you have your hands around all the issues that could be in those portfolios or have you seen anything new come up in the past quarter with vintages originated in 2021 to 2023, or do you feel like you have your hands around all those potential problems?

As it relates to SBA, we feel the changes we implemented in underwriting and the changes we made to portfolio management throughout the end of 2025 and into this year are starting to show up. For vintages from 2021 to 2023, we believe we have worked through the worst of that. It is always possible a small business will have an unexpected issue, but problems tend to surface in the first 18 to 24 months for small business, especially in business acquisition. What we are seeing is much better performance from the 2025 vintage and the 2026 year-to-date vintage. We are confident changes to underwriting guidelines, borrower strength expectations, and portfolio management will yield much better results going forward.

On the franchise side, as we continue to work loans down, we charged off a number of non-performing, non-accrual loans this quarter. That reduced the specific reserves by about $6.7 million that came off with those charge-offs. Net-net, non-accrual franchise finance loans declined significantly. We also saw early-stage franchise delinquencies fall over 75% from the beginning of the year. So similar to SBA, the non-performing loan formation has slowed dramatically. There may still be loans we're monitoring, but the pool of loans with habitual late payments or chronic issues has declined significantly since the beginning of the year.

In fact, this afternoon we received a check on a loan we had marked as doubtful. We had charged it down to $600,000 on the books and received a $600,000 payment. That speaks to our ability to measure recoverability and gives us confidence going forward.

Okay. Really helpful.

Our next question comes from the line of Emily Lee with KBW.

This is Emily stepping in for Tim Switzer. End of period and average loan balances were impacted by early payoffs this quarter. What are your expectations for payoffs going forward?

We think some payoffs will continue to pop up from time to time. We like it when borrowers give us advance notice. For example, we received notice this week that a construction or investor CRE loan maturing in 2027 will likely be paid down at the end of August. When we get advance notice, we can factor it into our models and have enough lead time to replace the balance elsewhere. We've seen elevated payoffs in franchise finance on performing loans, and we've begun to model that because it's been persistent the past couple of quarters. It will likely continue, but we're trying to capture it in our modeling.

I understand. That's helpful. This quarter, you increased the number of fintech partners. Could you talk about expectations for growth from the BaaS platform going forward and how the partner pipeline is looking now? Do you plan to continue opportunistically adding more partners, or what are your plans there?

We have added three partners year-to-date. We are now at 15 partners across 21 programs. We expect two more programs to come online before the end of 2026, and our pipeline behind that is healthy. I don't expect us to grow into the triple digits next year. We are careful about curating partnerships and have some terrific partners; four of the 15 have expanded their relationship with us in the last year. That speaks to the relationships we're forming and our capacity to grow alongside them. We expect growth in fintech partnership revenue from interest income on lending programs and a moderate increase from fees we collect, whether on transactions or oversight fees. Our revenue from these partnerships is up about 220% year over year, so we see considerable runway.

Great to hear.

Our next question comes from the line of Nathan Race with Piper Sandler.

Just in terms of thinking about the reserve trajectory going forward, I know it's difficult to predict what's underlying the provisioning assumptions for the back half of this year, but could you shed more light on how specific reserves are trending, particularly against the SBA and franchise finance portfolios, and what that suggests in terms of loss content expectations over the next couple of quarters?

We charged off about $11.5 million of non-performing franchise loans this quarter, which reduced our specific reserves by $6.7 million. For the provision outlook, sometimes it's agnostic whether a loss is recorded as a charge-off or a specific reserve. With the enhancements Nicole mentioned—improvements in SBA portfolio management and special assets—we see continued decline in problem loans. In terms of net charge-offs, we expect those to come down significantly from where they were in the first and second quarters. Timing is hard to predict; they could be a bit higher in the third quarter and lower in the fourth, but we believe the trajectory is down in the back half of the year.

With our enhanced portfolio management and being an ally to borrowers, we are able to provide more solutions when customers engage earlier. Over the last 18 months we've improved communication, which gives us more visibility into the likelihood of loss. The communication between portfolio management and finance is very strong, and that helps prevent surprises.

The payment Nicole mentioned about the $600,000 is one example. We also have a significant franchise loan with just over $6 million outstanding where we've already reserved 30% and we think it will pay off in full. We'll get a recovery of that 30% this quarter plus the full $6 million will fall off the delinquency side and off the balance sheet. The work by the special assets group has enabled us to reach out to virtually everyone in the SBA and franchise pools to check in. With the economic uncertainty, we're proactively reaching every borrower. If things deteriorate, they will call us early and we can work with them; we can provide many solutions when issues are caught early rather than waiting until bankruptcy. We are confident we have the right people and processes in place.

Indeed, that's really helpful. Going back to the margin discussion: I appreciate the color around CD maturities in the back half of this year. Is the expectation that those CDs will largely be replaced by lower-cost deposit gathering programs with your partners? Or what's the incremental replacement cost on some of those CDs to the extent they're not backfilled with relationship deposits?

The easy way to think about it is replacing CDs that cost us 4.04% in the third quarter with fintech deposits at roughly 3.15% to 3.20%. That illustrates the deposit cost savings. Our renewal rate on CDs today is roughly 3.60% if they renew, so even renewing still yields about a 40 basis point improvement versus current maturing costs. Because the renewal rate is declining, more of the maturing volume is being backfilled with fintech deposit growth, which captures additional cost savings.

We're not feeling the same pressure as many peers are from the deposit market. With $2.5 billion off balance sheet in cash in the market, if a portion of our CDs roll off, we can replace costs at much lower rates. If half of those CDs disappear, we could pull $200 million at around 3.18% versus the prior 4.20%. We are in an enviable position relative to the market.

If we were to get a rate hike later this year, can you update us on NII or margin sensitivity?

On a static balance sheet, we remain slightly liability sensitive. A rate hike on a static balance sheet would be roughly a $2.4 million annual reduction to NII. Conversely, a 25 basis point rate cut would likely add about $2.2 million in additional NII.

And what's the tax rate assumption underpinning the EPS guide for this year?

For the full year, the tax rate varies across the EPS range. On the low end of the EPS range, the tax rate is around 6% to 6.25%. On the higher end, it's about 8% to 8.5%. Given our expectation of stronger third and fourth quarter performance, you can back into quarterly rates, but full-year guidance sits in that range.

Yes, I think that's something in the 15% range. Sounds like 15% to 20%. Does that sound right?

Probably more in the 12% to 15% range.

Okay, alright, sounds good. I appreciate all the color.

Our next question comes from the line of George Sutton with Craig-Hallum.

You mentioned wealth advisory and embedded finance as new focus areas. Could you give more detail on what the wealth advisory practice is lending to? And on the embedded finance side, is that broader than just Jaris or are you specifically focused on Jaris there?

I'll handle the wealth advisory piece. Wealth advisory lending is generally to registered investment advisors, for purposes like ownership transition and succession. Many advisors are nearing retirement and there is demand to finance ownership transition, where a senior partner sells to a junior partner. That is the primary use case.

The average owner of an RIA today is about 66 years old, so there's a lot of transition activity. We've been doing this for 18 to 24 months but volume has picked up over the last four to five months. On embedded finance, Jaris is the biggest near-term opportunity for us. We had historically bought about 10% of their production and the rest went to a fund. We bought out that fund and expect production to ramp. We did about $5 million with them in the first half of the year and expect $10 million to $15 million in the second half. These short-term factoring-like assets can have gross yields that are very high. After reserves, processing, servicing, and fees, net yield to us is still in the 12% to 15% range, which is significantly above other assets on the books. Pricing for other partners will be similar as we onboard them in the second half of the year.

You had historic BaaS growth. How much of that would be Ramp specific versus others?

Ramp has had a big impact on the deposit side. On the fee side, we participate, but some other partners generate stronger processing revenue. We do Ramp's bill pay product, which has grown significantly. On June 30th and July 1st we cleared over $1 billion per day in bill payments, though those are pennies per transaction. The real growth from Ramp recently has been on deposits, which has been very strong. We've adjusted fees across clients and have seen a nice growth spurt across partners. We're selective about partnerships; we're known for being compliance-forward, which can be difficult to deal with but is a win for partners. Our BaaS revenue has grown rapidly; we expect to pass $10 million this year.

One quick one for Nicole on SBA: historically you've discussed market ranking and goals for material growth. Is that not the focus now?

We want to support small businesses and put the right borrowers in place. We needed to retool underwriting and build better portfolio management so we could scale responsibly. With those changes addressed, we do have an opportunity to ramp volume back up, but we'll be judicious and focus on quality rather than quantity. It's painful when businesses close, so we want to make sure borrowers are positioned for success. We expect some improvement in volume in the second half of the year. Lending teams are growing slightly and we've added people with good contacts and referral sources. We're seeing more loans backed by real estate, which command better premiums. The retooling we've done should help future periods.

The SBA industry overall is down about 18% year-to-date compared to last year. We remain in the top 10 originators in the 7(a) market and will likely stay there for the year. As Nicole said, pipelines are strong and second-half volume should be better than first-half volume.

Perfect. Okay.

There are no further questions at this time. I will now turn the call back to David Becker for closing remarks.

Thanks, Trevor, and thanks everybody for joining us today and for your interest in First Internet Bancorp. This was a quarter we've been working toward for some time and we're proud of the progress our teams have made on credit as well as the increasingly capital-efficient, fee-generating direction of our business. We remain mindful of macroeconomic uncertainty and global developments, but we are executing from a position of genuine momentum, and we believe the hardest part of our credit cycle is truly behind us. We appreciate your support. Feel free to reach out to any of us if you have further questions. Thank you, and have a good evening.

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