SPFI Earnings

Operator: Good afternoon, ladies and gentlemen, and welcome to the South Plains Financial Inc. Third Quarter 26 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions with instructions to follow at that time. And as a reminder, this conference call is being recorded. Additionally, the company has issued their earnings press release and earnings slide deck presentation, which are available on the SEC's website as well as on the news and events section of their website. spfi.bank. Please refer to slide 2 of the presentation for management's safe harbor statements regarding forward looking statements. All comments expressed or implied made during today's call are made only as of today's date and are subject to the Safe Harbor statements in presentation and earnings release. In addition, please refer to the slide 2 of the presentation for the company's disclaimer regarding the use of non GAAP financial measures. A reconciliation of these measures to the most comparable GAAP financial measures can be found in our presentation and earnings release. On today's call, we have Curtis C. Griffith, Chairman and CEO Cory T. Newsom, President Steve Crockett, chief financial officer and treasurer Brent A. Bates, Citibank's chief credit officer, and Tyler Hayes, Citibank's chief banking officer. I would now like to turn the call over to Mr. Curtis C. Griffith. Please go ahead. Curtis C. Griffith: Thank you, operator, and good afternoon, everyone. Before I turn the call over to Cory, I want to take a moment to thank our employees, our customers, and our shareholders for their support over the years. As I prepare to retire as chief executive officer at the end of this year, I have been reflecting on what we have built together and I could not be prouder of what Citibank and South Plains have become. Over the years, we have built a strong relationship driven franchise. A unique culture, and a team that has always remained committed to serving our customers and communities. What gives me the greatest confidence about the future is the people we have in place today. A leadership transition that will be completed at year end has been planned for many years. And Corey and Steven, along with the rest of our experienced management team, have been leading the day to day operations for quite some time. We have worked hard to build a deep and experienced leadership team while also developing the next generation of talent across the company, including Tyler Hayes, who joins us on the call today, and many others who represent the future of South Plains. While my role will change at year end, I will remain involved as chairman of both South Plains and Citibank. My focus will shift toward helping guide the long term strategy of the company and the bank alongside our boards of directors and management team. I am confident that South Plains is in an excellent position with a strong balance sheet attractive growth opportunities, and a talented leadership team. that is well prepared to continue building on our success. The strong results we delivered during the third quarter including near record earnings per share, stable profitability and solid organic loan growth reinforce that confidence and demonstrate the continued success of the strategy we have been executing. With that, let me turn the call over to Cory. Cory T. Newsom: Thank you, Curtis, and thank you for your leadership, support, and guidance over the years. it is been a privilege to work alongside you for many years. The culture, customer relationships, and reputation that we have built over the past several decades have created a tremendous foundation for the future. While I am honored to step into the CEO role at year end, I am equally pleased that Curtis will remain chairman. I look forward to his support as chairman as we execute our strategy of expanding our lending platform across our high growth Texas markets while pursuing disciplined acquisition opportunities. Most importantly, the bank is in an excellent position today and I am excited to build upon the strong foundation that our team has created. Turning to slide 4. I am very pleased with our third quarter results. Net income increased to $20.8 million compared to $19 million the second quarter. We also delivered diluted earnings per share of $1.06 as compared to $0.96 in the linked quarter. Return on average assets improved to 1.53% while our efficiency ratio improved to 58.1%. Importantly, we generated these results while maintaining our disciplined approach to credit and risk management we continue to build the long term earning power of the bank. Turning to slide 6, loans held for investment increased by approximately $60 million as compared to the linked quarter representing 6.3% annualized organic loan growth. And ended the period at $3.83 billion The increase was driven by healthy loan production across our markets and was achieved despite the early payoff of a $25 million loan that was fully secured by the borrower's deposit account as well as an anticipated payoff of a large relationship during the quarter. The fact that we were able to deliver this level of growth despite these payoffs reflects the strength of our underlying loan pipeline and customer demand. As we have discussed throughout the year, we expected loan production to accelerate as we move through 2026 and we believe the second half is developing largely as anticipated. While loan payoffs continue to occur in the normal course of business, we believe our loan pipeline remains healthy and customer demand remains strong across both our metropolitan and community markets. Based on current production trends and pipeline activity, we remain confident in delivering our full year loan growth guidance in the mid single digits. Our loan yield was 6.75% during the quarter compared to 6.81% in the second quarter. Although the market interest rate environment remains volatile, we remain focused on balancing prudent growth with profitability as we continue to expand relationships throughout our footprint. Turning to slide 7, our major metropolitan markets remain an important growth driver for the bank. Loans in Dallas, Houston and El Paso increased by approximately $23 million during the quarter to 1.71 billion and represented 44.6% of our total loan portfolio as of September 30. We continue to see attractive opportunities across these markets and remain encouraged by the activity levels loan pipelines, and long term growth prospects in each of these regions. In Houston specifically, we continue to be pleased with our progress following the Bank of Houston acquisition. it is important to note that much of our team's focus has been on the integration, the system-conversion process, and employee training since we closed on April 1. With those efforts now largely behind us, our Houston bankers are now able to focus more fully on business development and growth opportunities available in 1 of the most attractive banking markets in Texas. We are also beginning to see the benefits of combining the 2 organizations. Including enhanced lending capacity, additional liquidity, and the ability to pursue opportunities that may have been previously constrained. More broadly, expanding our lending platform remains 1 of our top priorities. We continue to benefit from the disruption across the Texas banking industry, particularly as competitor mergers creates an opportunity to recruit experienced bankers and deepen customer relationships. During the quarter, we added experienced bankers in Lubbock and in College Station and we remain active in identifying talent that fits our culture and relationship based approach to banking. Given the ongoing consolidation across our markets, we believe there will continue to be opportunities to grow our team and drive future organic loan growth. As we continue to execute our organic growth initiatives, M&A remains an important component of our long term strategy. We continue to evaluate opportunities that have the potential to strengthen our franchise, expand our presence in attractive markets and create long-term shareholder value. Importantly, we will remain disciplined in our approach if any potential transaction must align with our culture, community banking model, credit standards, and financial objectives. We are not interested in growth for growth's sake and any acquisition must create long term value for shareholders. Given our strong capital position and the scale of our platform, we believe we are well positioned to pursue the right opportunity should 1 emerge. Skipping to slides 11 and 12, noninterest income totaled 13.8 million during the quarter, compared to $14.1 million in the second quarter. The modest decline was primarily driven by lower bank card service and interchange revenue as the prior quarter benefited from incentive income that did not repeat in the third quarter. Mortgage banking revenues totaled $4.9 million and benefited from a $1.06 million increase in the value of our mortgage servicing rights asset as market interest rates moved higher during the period. While higher interest rates have created additional pressure on mortgage origination activity across the industry, Our mortgage operation has not been a drag on earnings during this challenging environment should be positioned to benefit when the activity eventually improves. Outside of mortgage banking, our diversified fee income businesses continue to perform well and remain an important contributor to the bank's overall profitability. For the third quarter, noninterest income was 21% of bank revenues, which is essentially flat with the linked quarter. Now I would like to turn the call over to Steven to discuss our third quarter results in more detail. Steven? Steven Crockett: Thanks, Cory. For the third quarter diluted earnings per share of $1.06 compared to $0.96 for the linked quarter. The increase was driven by strong organic loan growth, prior to the 2 large payoffs and stable margin performance, and the reduction of acquisition related expenses in connection with our BOHA acquisition. Importantly, these results were achieved while absorbing approximately $875 thousand of accrued expense associated with Curtis's retirement. Which combined with what was recognized during the second quarter are now largely behind us. This expense was mostly offset by the benefit of higher mortgage servicing rights valuation adjustment. As interest rates moved higher during the quarter. Turning to slide 14, net interest income was $51.5 million for the third quarter, up $1.1 million from the linked quarter. The increase was primarily driven by a $53 million increase in average interest earning assets during the quarter. Our net interest margin on a tax equivalent basis remained stable at 4% during the third quarter. As we have noted previously, reported margins in certain prior periods benefited from problem loan interest recoveries. Excluding those items, we have maintained a stable margin profile despite continued volatility in interest rates, Looking ahead, our focus remains on maintaining our NIM at current levels, while growing our balance sheet as we execute our organic loan growth strategy. Which we believe will drive earnings growth and improving returns over time. As outlined on slide 15, deposits increased by $20 million from the linked quarter to $4.66 billion As Corey noted, we had a $25 million CD-secured loan that paid off during the third quarter. By liquidating the collateral, which was not unexpected and will be additive to our net interest margin. During the quarter, we also allowed certain higher cost and non core funding sources to leave the bank. While continuing to generate growth in core customer deposits. This reflects our efforts to optimize our funding base following the Bank of Houston acquisition. Non interest bearing deposits increased $1.18 billion and represented 25.3% of total deposits at quarter end. As compared to 24.8% at June 30. Our cost of deposits improved slightly during the quarter, declining 1 basis point to 2.07% compared with the linked quarter. Looking ahead, we continue to see opportunities to manage select higher cost funding sources which remains an important lever in maintaining our profitability at current levels. Turning to slide 17, our ratio of allowance for credit losses to total loans was 1.38%. At September 30. Down from 1.41% in the prior quarter. During the quarter, we recorded a provision for credit losses for loans of $1 million primarily driven by organic loan growth, and net charge off activity We continue to believe our reserve levels appropriately reflect the risk profile of the portfolio, and position us well for a range of economic conditions. We did experience a modest increase in nonperforming loans during the quarter. Primarily related to Bank of Houston acquired loans. While non performing loans increased to 40 basis points of total loans, overall levels remain low and subsequent to quarter end, we have already seen the largest of these credits return to performing status. As we have discussed previously, we anticipated some migration within the acquired portfolio and our credit team continues to actively work these loans to help ensure a proper resolution. Next on slide 19, noninterest expense decreased by $1.8 million to $38.1 million in the third quarter as compared to the linked quarter. The decrease was primarily driven by lower personnel cost, a reduction in mortgage commissions, and the absence of acquisition related expenses associated with the Bank of Houston transaction. Which were largely behind us following the second quarter. Taken together, our efficiency ratio improved to 58.1% in the third quarter from 61.6% in the linked quarter. Reflecting both continued revenue growth and our ongoing focus on expense discipline. Looking ahead, we remain focused on investing in growth opportunities while maintaining strong operating leverage across the organization. Moving to slide 21, we remain well capitalized with tangible common equity to tangible assets of 10.32% and a common equity Tier 1 ratio of 14.2% at quarter end. Our strong capital position provides flexibility to support both our organic growth initiatives and disciplined acquisition strategy. Our tangible book value per share was $29 and $23 as of 9/30/2026, compared to $29.60 at June 30. The modest decline was primarily driven by a decrease in accumulated other comprehensive income of $25.5 million given the large rise in interest rates during the quarter. Partially offset by $17.4 million of net income after dividends paid in the third quarter. We remain focused on returning capital to shareholders having announced today that we will pay our 30th consecutive quarterly dividend during the fourth quarter. We continue to view capital allocation through the lens of balancing growth, profitability and shareholder returns. This concludes our prepared remarks. We will now turn the call back to the operator to open the line for any questions. Operator? Operator: Thank you. We will now be conducting a Q&A session. If you would like to ask a question, please press 1 on your telephone keypad. Moment, please, while we poll for questions. Our first question is from Brett Rabatin with StoneX Group. Brett Rabatin: Hey, guys. Good afternoon. It was good to see the margin stability and the management of the cost of funds I was just curious, wanted to talk, I know there is a lot of variables that go into it, but just your thoughts on the margin from here and, you know, if there. If there is additional hot money that you might be you know, letting go and then just you know, any thoughts on where you are seeing new loan production relative to the current portfolio yield? Steven Crockett: Yeah, Brent, this is Steven. I will start. I will let Brent or somebody else talk about the new loan rates, but yeah, we were we were very glad to see margin where it is at. You know, we did have loan growth in the quarter. Which definitely helped, you know, with the excess liquidity we have been carrying. That helps boost up the net interest margin, loan yields were down just a little bit. But still fairly close to where we were last quarter on the deposit side. We did. We saw a little bit. We tried to move a few things but overall, you know, the cost was down just slightly, but we continue to try to manage overall deposits, some of the noncore stuff, and out some of that we do not need. I just really want to try to keep the NIM in a you know, fairly close range of where we are at. It can always go up a couple basis points or down a couple basis points. Somebody else wanna talk about new loan rates? Brent A. Bates: Yeah. I mean, this is Brent. On new production, we are seeing those rates come up a little bit there toward the end of the quarter, but know, typically see upper sixes on new loan origination volume. Cory T. Newsom: And I think as far as continue to maintain it, this is Cory Brett. You know, 've got a lot of our internal challenges that we were facing with conversions and new loan operating system, a lot of that stuff's kinda getting put to the wayside. And so it there is really been a focus back on trying to push things through the pipeline and get it done, the pipeline still really good. So I think that is going to continue to enhance that a bit. Brett Rabatin: Okay. that is helpful. And then and then wanted to talk about expenses and the hires. I did not hear the number on the number of hires for Lubbock College. College Station, but a lot of you know, I do not call it noise, but a lot of things going into the expense run right from here, maybe, so that the $850 thousand is probably coming off from you know, Curtis's retirement. But you know, any thoughts on. I know there is $4.6 million of expense savings from Bank of Houston. You know, any thoughts on the pace of the expense base from here? And then, you know, a lot of banks have been telling me that there is been numerous opportunities to hire from 2 particular banks. And just wanted to see if that lending pipe that higher pipeline you know, might still be running pretty strong. Cory T. Newsom: Brent, this is Cory. How about. Me let me let me take off and talk about the new hire. So we picked up a couple new hires during this quarter. We are staying very, very focused. This is something that is very, very important to us. So we are, you know, we are pretty thoughtful about the way we go about bringing new talent on, and we are trying to make sure that they are good fits in the process of doing this. I think we are as we are as focused as we have ever been on continuing to hire talent. And opportunities exist and, I mean, we are we are in the-- I mean, we are in the midst of it as we speak. So I think that part's gonna keep going. Steven Crockett: This is Steven. I mean, on the expense side, yeah. I mean, overall expenses, I mean, fourth quarter, I mean, you go back and look, generally, we are down a little bit. All things being equal, just through some true up of accruals and different things, So I would not be surprised if what we definitely should be down based off of what we. You talked about the 75 number, but outside of that, we are generally down a little bit. But, you know, when we when we click over into the into the next year, I mean, there is always new things that come on. Some of that, as Cory said, will depend on new hires that we get in. Just all the things that come around. So dollars of noninterest expense after we get to next year. Again, I would think those do start going up, but you know, percentage wise, I would not look to see noninterest expense percent increase Brent, this is Tyler. Tyler Haynes: I think you know, we are we are always looking for new hires that are the right fit. But sometimes it is just the long game too, and I think that was some of our success this quarter is it. When you have got somebody that you keep an eye on and keep up with, you just dote on them and stay with them and wait for it to be the right time for them to join your team. And so we will continue to do that as well as looking for more opportunistic ways to bring new members on our team. Brett Rabatin: Okay. If I am if I am if I am reading the comments correctly, it sounds like the expense base could be a little lower in the fourth quarter. But then have some build back over 2027, you know, as you continue to grow the franchise and all those type of things? Steven Crockett: Yes. I would agree with that. Brett Rabatin: Okay. Brent. Appreciate the color. Thanks, guys. Steven Crockett: Thanks, Brent. Cory T. Newsom: Thanks, Brent. Operator: Our next question is from Joe Yanchunis with Raymond James. Joseph Yanchunis: Good afternoon, guys. Yeah. How are you doing? So thank you for taking my questions. I was kinda hoping to start with loan growth a little bit. You know, you talked about how you added a couple more lenders. You have you know, some past hires that are continuing to ramp. Can you talk about. A little bit about how the pipeline's developed over the past few months? And you know, if you think you will be able to sustain this momentum, you know, into 2027 with that kind of mid single digit loan growth? Or potentially accelerate beyond that? Brent A. Bates: Yeah, Joe. I will I will start off. I mean, our pipeline, over the second half of the year has been, much stronger than the first. And we continue to have a very healthy pipeline of both new originations as well as construction funding that we are still continuing to expect to have and so now I feel very good about hitting our year-end projection for growth for sure. Brent can. And then I am sorry. Go ahead. No. I just kinda talked about how the it is migrated. The metro markets have continued to improve. Yeah. So our metro markets now are really nearly half or more of our pipeline in total. And, you know, in prior years, that was probably more close to 1/3. So you are you are just seeing that really take root And, you know, and give us a good backlog of new production to come on the books. Cory T. Newsom: Joe, I think that is a reflection. This is Cory. I think that is a reflection of not only the talent that we already had in place, but the talent that we have been able to bring across and the things that are coming to fruition with the Bank of Houston acquisition. Joseph Yanchunis: And, you know, you talked about some of the payoffs you had earlier this quarter. As you look at the portfolio today, are there any other sizable payoffs that you are anticipating over the next couple of quarters? That we should be thinking about? Brent A. Bates: Yeah. This is Brent. I mean, I think it is kind of become. I do not wanna say the norm, but we have kinda baked that into our thought process here. I mean, you are you are always gonna have things that are coming down the pipe, and we will have more likely in the fourth quarter. And we have kind of. In my mind, I factored that into to being confident we can hit where we where we think we will hit by the end of the year. Cory T. Newsom: These 2 that we. That just got called out on this call, And there was nothing surprising about those. Thing that I would like to go back and kinda reiterate, we have we have mentioned this before. We have in the. Over the last 18 months been in a position trying to exit some relationships We are not there anymore. We have We feel really good about the quality of the portfolio as it exists today. And we are not in-- we are not in any kind of a position where we are trying to exit some stuff that we think does not really fit. We do like what we have We think we have kind of accomplished all those things that we were trying to do. Joseph Yanchunis: Well, you know, if you were to just kind of focus on the credit of the portfolio, I mean, it looks like nonperforming loans ticked up a little bit, not to an alarming rate or anything. Can you give us some color on what drove those increases? and any sort of industry concentration or, you know, perhaps if those were originated back in Houston? Brent A. Bates: Yeah. Those were both. We had a few migrate to nonperforming, and those were acquired That really drove that number. We were actively involved in have been actively involved in remediation plans on those. In fact, the largest of the 2 have has already been resolved to the point of being back performing. So we are we are running our normal process and the ones that migrated during the quarter were it was there. We knew the risk was there. At the time of the merger, and I have been working those plans since then. Cory T. Newsom: Yeah. They were they were already classified loans. They just moved a step just so we could work. I think we I think we missed 1 by a week from when-- just from a timing perspective. The largest 1 of them and so it. And that is why you saw a little tick up there. Joseph Yanchunis: Okay. that is helpful. And then last 1 for me here. So you know, we have recently seen Mechanics Bank sell its indirect auto loans. You know, near book value while Truist exited its near prime auto business. I know we have talked about the auto portfolio, you know, over the past few years. Just kinda given its strong credit performance. But have you ever considered selling some of that portfolio today to redeploy capital into some other commercial lending vehicles? Cory T. Newsom: Oh, not really. I mean, we like this piece of business for us. And understand how there is some of that business out there inside the industry that a little bit challenged. We are just so careful about what we put on our books. And I mean, if you look at where we are from a liquidity standpoint, we have got-- we still have plenty of liquidity to loan out. We are a good capital position. Do not think that is something that we are pressured with right at this point. Steven Crockett: Yeah. And the super prime and prime portion of the portfolios, you know, it is 99.9% roughly And so I think that is. It. it is a good diversification. I know auto loans is can from time to time be a hot button when different reports come out, but that is overall why we like to stay on that end of the credit spectrum. So it can weather that a whole lot better. Brent A. Bates: Yeah and this is Brent. I think you know, the credit quality that we have seen out of that has been exceptional. And, you know, as a reminder, the duration on that portfolio is relatively short. So it, you know, it turns and provides good source of revenue for us. Cory T. Newsom: Just remember, over 99% of that portfolio is cars. I mean, we are not. We are not big proponents of putting a lot of the recreational type things onto the books like this. And if you look at where we stand on a past due level, it is. I mean, we like the position. Joseph Yanchunis: Alright. Well, appreciate it. Thank you for taking my questions. Cory T. Newsom: Thanks, Joe. Operator: Our next question is from Stephen Scouten with Piper Sandler. Stephen Scouten: Yeah. Good afternoon, everyone. Curtis, I was not on the call last quarter, so I just wanna say congrats on the coming transition and Cory, congrats on the appointment, and nice to have Tyler on the call. So lots going on, but, obviously, a lot of hard work been done through the years to get you there. So congrats to all. Curtis C. Griffith: Thank you, sir. Cory T. Newsom: Yeah. Steven. Curtis C. Griffith: Definitely. Stephen Scouten: I guess going back maybe to Brent's earlier question around expenses, I am not sure if I heard you actually say, do you know how much you have in terms of remaining cost saves related to the Bank of Houston deal and when you would expect to extract those remaining savings? Steven Crockett: Yeah. This is Steven. Pretty much pretty much everything's in place now with them. So I think I think we should be in good shape on it. Stephen Scouten: Okay. I think it would not be necessarily in the third quarter run rate, it would be in this fourth quarter run rate, I guess. Steven Crockett: Is that the right way to think about I would say the bulk of it was in was in was in Q2. There were still some that Okay. That ran through in Q3. Okay. Cory T. Newsom: Brent. Back to the fact that we moved so quickly on the conversion. Stephen Scouten: Yeah. Yeah. No. that is impressive. The time line we get those out is great. And maybe just as you think about the mid single digit loan growth, I am curious how and where you expect the loan to deposit ratio to go from here, kind of how you are thinking about balance sheet overall. Securities have been trending down for the last couple of quarters. So where do you want the composition of that balance sheet to go to kind of you know, maximize profitability for the bank? Steven Crockett: Yeah. I will start. I mean, I think we have generally say, you know, loan to deposit ratio up to 85% or so is where we would like for it to be. Sometimes it can be a little bit different at different times of year, but that is that is that is the number we would like to see. As far as securities go, yeah. The numbers come down. We have, of late, started buying a little bit more just maybe to offset some of the paydowns against the cash flow that we are coming back on some of that during the-- each month. Not looking to increase overall securities portfolio, but do not really want that to run down too much more because, you know, we do use those for pledging on public fund deposits. And so we like that. And, I mean, definitely, yields have been have been higher on some of that, but overall still wanna stay relatively short in that in that portfolio overall. So that is we wanna make loans, but we do not we do not wanna get that ratio too far out of whack. Cory T. Newsom: I agree with Steve completely. We are very focused on the fact that ideally, we would like to stay around an 85% loan-to-deposit ratio. there is no question. And that is where we are heavily focused on it. that is what-- that is why we stay so focused on the talent acquisition that we have been on and how we are gonna stay forward with that. Curtis C. Griffith: Yeah. Cory T. Newsom: Okay. Just trying to keep a balance there. Credit quality, and making sure that we can, we like what we are bringing on. Stephen Scouten: Yeah. For sure. Okay. And then maybe just last thing for me. Like, how are you seeing, I know you noted new loan yields in the high sixes, maybe. How are you seeing spreads hold up in terms of those new loan yields versus maybe average deposit costs? And within that, how do you expect the NIM to kind of hold up with, you know, the prospect of another couple of 25-basis-point hikes? Steven Crockett: We are again, we are. If you look back the last number of quarters and really the last couple of years, we have gotten the overall balance sheet. We are we are just pretty neutral overall. Really, 25 basis-point increase, there is-- or even 50. there is just not a whole lot of overall effect to us. You are definitely right as far as, you know, there are some deposit rates out there. CDs and money markets and other things that are now unfortunately backed up in the fours, mid fours. So new loan rates at mid upper sixes even that you know, that math does not work real well in the short term, but you know, I think overall portfolio that we have got, and some of the things we can do, we feel good about where we are at. Cory T. Newsom: But, you know, keep in mind, we say this all the time, but we kind of got to live by it a little bit. I think we have done a pretty good job of that We use exception based pricing as much as we can to try to counteract as much of this. We try to make sure that our team has the authority to make the kind of decisions so that we can kind of keep this stuff in place. Stephen Scouten: Awesome. Thanks for the time, guys. Congrats on a really nice quarter. Cory T. Newsom: Thank you. Steven Crockett: Thanks. Stephen Scouten: Steve. Operator: Thank you. There are no further questions at this time. I would like to hand the floor over to Curtis C. Griffith for any closing comments. Curtis C. Griffith: Thank you, operator. Thanks, everyone, who joined us today. As this is my final earnings call as chief executive officer, I want to take a moment to thank our shareholders and the analysts who have followed South Plains for their interest, support, and confidence in our company over the years. I have greatly valued the relationships we have developed and the opportunity to share the South Plains story with you. I could not be more confident in the position of the bank today. We have a strong balance sheet and experienced leadership team and meaningful opportunities to continue growing across our markets. While my role will change at year end, I am excited to continue working with Cory and the rest of the team as chairman as they execute our strategy and build the long term earnings power of the bank. Thank you again for your continued support of South Plains Financial. Operator: This concludes today's conference. May disconnect your lines at this time. Thank you again for your participation.