FISI Earnings Call Q3 2026: Rekord-Zinsüberschuss und Wachstum bei Gewerbekrediten

Wichtigste Erkenntnisse

• Financial Institutions, Inc. (NASDAQ: FISI) wies für das 3. Quartal 2026 einen den Stammaktionären zustehenden Nettogewinn von 19,6 Mio. US-Dollar bzw. 0,99 US-Dollar je verwässerter Aktie aus.
• Der Zinsüberschuss erreichte mit 54,3 Mio. US-Dollar einen Quartalsrekord, was einem Anstieg von 2 % gegenüber dem Vorquartal entspricht, während sich die Nettozinsspanne bei 3,70 % hielt und im Jahresvergleich um 5 Basispunkte zulegte.
• Das Gesamtkreditvolumen wuchs im Vergleich zum 2. Quartal um mehr als 2 % und im Jahresvergleich um fast 6 %. Die Gewerbekredite stiegen gegenüber dem Vorquartal um 3 % und gegenüber dem Vorjahr um mehr als 10 %.
• Die Erträge aus der Anlageberatung stiegen im Vergleich zum Vorquartal um etwa 2 % und im Jahresvergleich um fast 11 %, unterstützt durch das von Courier Capital verwaltete Vermögen in Höhe von 4 Mrd. US-Dollar.
• Die aufs Jahr hochgerechneten Nettoabschreibungen stiegen von 11 Basispunkten im 2. Quartal auf 33 Basispunkte. Das Management rechnet für das Gesamtjahr 2026 nun mit einer Quote von etwa 30 Basispunkten.
• Das Management bestätigte seine Kernprognose für das Ergebnis und seine Profitabilitätsziele, darunter eine Gesamtkapitalrendite von mindestens 1,30 %, eine Eigenkapitalrendite von mindestens 12,5 % sowie eine Efficiency Ratio von unter 57 %.

Wichtige Finanzdaten

Geschäfts- und operative Entwicklung

Das Firmenkundengeschäft blieb der Hauptwachstumstreiber. Das Geschäft mit Gewerbeimmobilien profitierte von der Nachfrage nach Baudarlehen im Bundesstaat New York (Upstate New York) und einer erhöhten Aktivität im Markt der Mittelatlantikregion. Auch das Kreditgeschäft mit Industrie- und Handelsunternehmen wuchs, da das Neugeschäft den Rückgang bei der Inanspruchnahme von Kreditlinien mehr als ausglich.

Nach Angaben des Managements blieb die Pipeline im Firmenkundengeschäft in Buffalo, Rochester, Syracuse und dem Markt der Mittelatlantikregion solide. Das Pipeline-Volumen entsprach in etwa dem Stand von Anfang 2026, was auf eine kontinuierliche Neubesetzung bei der Tilgung bestehender Kredite hinweist.

Das bilanzwirksame Wohnimmobilien-Hypothekenportfolio stieg gegenüber dem 2. Quartal leicht und im Jahresvergleich um etwas mehr als 2 %. Die verkauften und betreuten Wohnimmobilien-Hypotheken legten im Vergleich zum Vorquartal um mehr als 2 % und im Jahresvergleich um etwa 7 % zu. Anträge auf Eigenheim-Kreditlinien stiegen im Jahresvergleich um 30 %, wobei die Nachfrage bis in den Oktober anhielt.

Indirekte Verbraucherkredite stiegen gegenüber dem Vorquartal um etwa 1 %, gingen jedoch im Jahresvergleich um 7 % zurück. FISI vergibt diese Kredite über mehr als 360 Neuwagenhändler im gesamten Bundesstaat New York und betonte, weiterhin der Preisdisziplin und erstklassigen Bonität Priorität einzuräumen.

Erträge aus der Anlageberatung blieben der stärkste Beitrag zum zinsunabhängigen Ergebnis. Courier Capital verwaltete zum 30. September 2026 ein Vermögen von 4 Mrd. US-Dollar, gestützt auf Neugeschäftsaktivitäten und Investitionen in Neueinstellungen.

Das Einlagenwachstum war breit gefächert, wenngleich saisonale Effekte bei öffentlichen Einlagen der stärkste Treiber im Vergleich zum Vorquartal waren. Das Management schichtet weiterhin einen Teil der öffentlichen Einlagen in gegenseitige Einlagenprodukte um, um die Anforderungen an Wertpapierbesicherungen zu reduzieren. Investitionen in das Treasury Management unterstützten zudem Neuzugänge bei Firmenkundeneinlagen.

FISI kaufte im Laufe des Quartals mehr als 185.000 Stammaktien zurück. Seit Auflegung des Programms hat das Unternehmen rund 686.000 Aktien zurückgekauft.

Prognose des Managements

• Das Management bestätigte seine Prognose für das Kredit- und Einlagenwachstum im Gesamtjahr und strebt weiterhin ein Einlagenwachstum im niedrigen einstelligen Prozentbereich an.
• Das Unternehmen erwartet für das 4. Quartal eine Unterstützung der Marge durch die Zinserhöhung der US-Notenbank Federal Reserve im September, da die verzinslichen Aktiva neu verzinst werden. Das Management strebt bis Dezember eine monatliche Nettozinsspanne von etwa 3,75 % an, verglichen mit 3,72 % im September.
• Für das Gesamtjahr 2026 werden die Nettoabschreibungen voraussichtlich bei etwa 30 Basispunkten liegen.
• Für die Erträge aus der Anlageberatung wird im Vergleich zu 2025 nun ein Wachstum im niedrigen zweistelligen Prozentbereich erwartet, nachdem zuvor von einem Wachstum im mittleren einstelligen Bereich ausgegangen worden war.
• Die Jahresprognose für Swap-Gebühren wurde von 1,0 bis 2,0 Mio. US-Dollar auf 750.000 bis 1,2 Mio. US-Dollar gesenkt.
• Die Erträge aus unternehmenseigenen Lebensversicherungen dürften 2026 voraussichtlich 11 Mio. US-Dollar übersteigen.
• Das Wachstum des zinsunabhängigen Aufwands für das Gesamtjahr dürfte im niedrigen einstelligen Prozentbereich bleiben, bei einer Efficiency Ratio von unter 57 %.
• Die effektive Steuerquote wird voraussichtlich 16,5 % bis 17,0 % betragen (zuvor eingegrenzt von 16,5 % bis 17,5 %).
• Die Profitabilitätsziele bleiben eine Gesamtkapitalrendite von mindestens 1,30 % und eine Eigenkapitalrendite von mindestens 12,5 %.
• Für die Planung 2027 strebt das Management einen positiven operativen Hebel von 200 bis 300 Basispunkten und eine Efficiency Ratio von nahezu 55 % an. Detailliertere Prognosen werden mit den Ergebnissen für das 4. Quartal erwartet.

Risiken und zu beobachtende Bereiche

Die aufs Jahr hochgerechneten Nettoabschreibungen stiegen im Quartal erheblich an, was teilweise die finale Risikoposition aus einer zuvor offengelegten Firmenkundenbeziehung im Sanierungsprozess widerspiegelt. Eine im Zusammenhang mit dieser Beziehung zwangsversteigerte Immobilie wurde in den Bestand sonstiger eigener Immobilien übernommen.

Der Wettbewerb im Firmenkreditgeschäft bleibt intensiv und setzt die Marge unter Druck. Das Management betonte, dass künftiges Wachstum von einer disziplinierten Preisgestaltung und angemessenen Renditen abhängen wird.

Die Refinanzierungskosten stiegen im 3. Quartal, wobei die Kosten der durchschnittlichen verzinslichen Verbindlichkeiten um 6 Basispunkte auf 2,67 % stiegen. Das Management nannte niedrigere Refinanzierungskosten als potenziellen Treiber für einen stärkeren operativen Hebel.

Das zinsunabhängige Ergebnis wurde durch eine geringere Aktivität bei Back-to-Back-Swaps im Firmenkundengeschäft und einen Verlust bei Kommanditbeteiligungen von 274.000 US-Dollar beeinträchtigt. Das Management wies darauf hin, dass die Erträge aus Beteiligungen mit der Entwicklung der zugrunde liegenden Anlagen schwanken können.

Öffentliche Einlagen und damit verbundene Wertpapierkäufe bleiben saisonabhängig. Das Management rechnet für das 4. Quartal mit einem Rückgang des Anlageportfolios nach dem Anstieg im 3. Quartal, der mit den Besicherungsanforderungen für öffentliche Einlagen zusammenhing.

Highlights der Analysten-Fragerunde

Zur Margensensitivität erklärte das Management, dass etwa 43 % des Kreditportfolios variabel an Prime und SOFR gekoppelt sind, während weitere 13 % ab dem Fünfjahresbereich der Zinsstrukturkurve anpassbar sind. Die Zinserhöhung im September kam den Renditen der Vermögenswerte gegen Ende des Quartals zugute, die Auswirkung auf das 3. Quartal war zeitbedingt jedoch begrenzt.

Zum Kreditwachstum gab das Management an, dass die Pipelines im Firmenkundengeschäft stark bleiben und aktiv wieder aufgefüllt werden. Ein beschleunigtes Kreditwachstum könnte einen besser als angestrebten operativen Hebel für 2027 unterstützen, wobei das Unternehmen betonte, dass es bei der Preisdisziplin keine Kompromisse eingehen werde.

Bei den Einlagen führte das Management das zugrunde liegende Wachstum auf Investitionen in das Treasury Management und auf die Strategie zurück, die Vergabe von Firmenkrediten mit Kundeneinlagen zu verknüpfen. Die vorrangige Kundenbeziehung im Privatkunden-, Kleinunternehmens- und Firmenkundengeschäft bleibt eine strategische Priorität.

Zur Kapitalallokation teilte das Management mit, dass Aktienrückkäufe attraktiv bleiben, solange die Aktie als unterbewertet gilt, der Kapitaleinsatz jedoch gegen organisches Wachstum und andere strategische Chancen abgewogen werden müsse.

Vollständiges Transkript der Ergebnis-Telefonkonferenz

Vollständiges Transkript der Telefonkonferenz

Ausführungen des Managements

Operator

Greetings, and welcome to the Financial Institutions Third Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce Ms. Kate Croft, Director of Investor Relations for the company. Ms. Croft, you may begin.

Kate Croft

Thank you for joining us for today's call. Providing prepared comments will be President and CEO, Marty Birmingham; and CFO, Jack Plants. He will be joined by additional members of the company's leadership team during the question-and-answer session.

Today's prepared comments and Q&A will include forward-looking statements. Actual results may differ materially from forward-looking statements due to a variety of risks, uncertainties and other factors. We refer you to yesterday's earnings release and investor presentation as well as historical SEC filings, which are available on our Investor Relations website for a safe harbor description and a detailed discussion of the risk factors relating to forward-looking statements.

We will also discuss certain non-GAAP financial measures intended to supplement and not substitute for comparable GAAP measures. Non-GAAP to GAAP reconciliations can be found in the earnings release filed as an exhibit to Form 8-K or in our latest investor presentation available on our IR website, www.fisi-investors.com. Please note that this call includes information that may only be accurate as of today's date, October 30, 2026.

I will now turn the call over to President and CEO, Marty Birmingham.

Martin Birmingham

Thank you, Kate. Good morning, everyone, and thank you for joining us today. In the third quarter, our team delivered healthy balance sheet growth while maintaining solid profitability. Commercial lending strength drove loan growth of more than 2% from the end of the second quarter and nearly 6% year-over-year. Net interest margin of 3.7% was stable relative to the linked quarter and up 5 basis points from the third quarter of 2025. This supported stronger net interest income generation, which reached a new quarterly high of $54.3 million. Investment advisory income, the company's leading contributor of noninterest income, increased about 2% and more than 10% from the linked and year ago quarters, respectively.

Our efficiency ratio remained below 57% for the quarter, reflecting our strong focus on sustained profitability. Our strong capital position allowed us to repurchase more than 185,000 shares of common stock during the quarter. This performance came together to support net income available to common shareholders of $19.6 million or $0.99 per diluted share. While this was lighter than the linked quarter, our year-to-date performance has been very strong and supportive of the targets we established at the start of the year. To that end, our core earnings guidance is unchanged, though we did tighten some ranges based on year-to-date results.

We are affirming our guidance for full year loan and deposit growth, net interest margin, returns on average assets and equity and efficiency ratio. On the credit side, we now expect an annual net charge-off ratio of about 30 basis points at the midpoint of the previous range of 25 to 35 basis points. In addition, the high end of our tax rate guidance has been lowered, and we've made some refinements to noninterest income. Jack will walk through these during his discussion of the income statement in a few minutes.

Before that, I'd like to provide some commentary on third quarter balance sheet trends. Commercial lending continues to lead overall loan growth. Total commercial loans increased 3% from June 30, 2026, and more than 10% from September 30, 2025. Growth in the quarter was driven by commercial real estate lending, including strong construction mortgage activity in Upstate New York and increased activity in our Mid-Atlantic market. Commercial and industrial loans also increased as originations more than offset lower line utilization as compared to the second quarter. We continue to see compelling commercial lending opportunities across Buffalo, Rochester and Syracuse regions.

While competition remains intense and has created spread pressure, the quality of our existing commercial pipeline underpins our confidence in the opportunities ahead. We believe that the pipeline positions us well for the remainder of the year and heading into 2027. Third quarter credit activity included the transfer of a foreclosed property to other real estate owned, which reflected the final exposure to a previously disclosed commercial business relationship that had been in workout.

Turning to consumer lending. Our on-balance sheet residential portfolio was up modestly during the quarter and up just over 2% year-over-year. Sold and serviced residential mortgages were up more than 2% and approximately 7% from the linked and year ago quarters, respectively, as our model is weighted toward a held-for-sale approach in support of fee income. Home equity lines of credit have been a bright spot with third quarter applications up 30% year-over-year, and we've seen sustained demand throughout October.

Consumer indirect loans increased about 1% from the second quarter of 2026 and were down 7% year-over-year. We originate these loans through a network of more than 360 new car dealers across New York State and maintain discipline on spreads and prime credit mix. That supports solid credit metrics as compared to national trends. Our third quarter delinquency ratio, which is inclusive of loans 30 and 60 days past due and those on nonaccrual, is more than 100 basis points lower than the recent national average for loans just 30 and 60 days past due. As we approach the end of the year, we expect typical seasonality to impact both volume and credit metrics for this line of business.

Investment securities were up 4.5% from the second quarter and a little more than 2% from the year ago quarter. The linked quarter increase was primarily due to public deposit seasonality, and we expect the portfolio to come back down in the fourth quarter. Period-end total deposits of $5.47 billion were up more than 3% from June 30, 2026, and 2% from September 30, 2025. Linked quarter growth was led by public deposits, which peak in the first and third quarters of each year, but deposit growth was broad-based with all categories contributing.

On a year-over-year basis, public deposits were down modestly, partially offsetting growth in all other categories. We continue to focus on shifting some public deposits to our reciprocal portfolio, which helps to relieve collateral requirements in the securities portfolio. The retention and acquisition of core nonpublic deposits remain high priorities, and we continue to target low single-digit deposit growth for the full year.

Now my pleasure to turn the call over to Jack for additional details on our results and guidance.

Jack Plants

Thank you, Marty, and good morning, everyone. Our third quarter results underscore the strength of our core businesses, disciplined balance sheet management and continued focus on profitability. Loan growth drove an increase in average earning assets, while effective balance sheet management supported a stable net interest margin of 370 basis points. Net interest income increased 2% from the prior quarter to $54.3 million. The investment portfolio yield of 4.46% was consistent with the linked quarter, and the average loan yield picked up 1 basis point to 6.08%. The cost of average interest-bearing liabilities increased 6 basis points to 2.67% for the third quarter.

We expect that the latest Fed rate hike in September will have a positive impact on our margin in the fourth quarter as earning assets reprice and we actively manage our funding costs. Noninterest income of $10.5 million was down 4.5% from the linked quarter. Key driver of this variance was lower commercial back-to-back swap activity in the third quarter following a very strong second quarter. We now expect swap fees for the year to come in between $750,000 and $1.2 million, down from the previous guidance of $1 million to $2 million.

We also recorded a loss of $274,000 for limited partnership income in the third quarter compared with a loss of $140,000 in the second quarter. As a reminder, revenue associated with these partnerships, which are primarily small business investment companies, fluctuates given the performance of underlying investments. Investment advisory revenue growth was again a highlight, up about 2% quarter-over-quarter and nearly 11% year-over-year, leading us to increase our full year guide from the mid-single-digit growth to low double-digit growth versus 2025.

Our wealth management subsidiary, Courier Capital, is the primary driver of this revenue stream. With $4 billion in assets under management as of September 30, this continues to be an important component of our diversified fee income. Year-to-date, new business activity has been strong, reflecting investments we've made in attracting top talent. Company-owned life insurance revenue of $2.9 million was up 2% from the linked quarter. COLI income is now expected to exceed $11 million for 2026. We reported quarterly noninterest expense of $36.8 million, up about 3% from the linked quarter. Salaries and benefits expense of $19.7 million was up 3% from the second quarter as expected, driven by costs related to our self-insured medical plan that typically increase as we approach year-end.

As a reminder, we modeled higher benefits expense in our guidance based on our 2025 experience. Professional services expense of $1.5 million was $212,000 or 17% higher than the linked quarter, primarily driven by the timing of typical external audit-related expenses. There were also a couple of one-time items included in other noninterest expense that together totaled about $325,000. This included write-downs associated with other real estate owned and a legal settlement to resolve an employment-related matter. Prudent expense management remains a top priority, while we maintain positive operating leverage, and we remain on track to limit full year noninterest expense growth to the low single digits and to achieve an efficiency ratio below 57%.

We reported an effective tax rate of 16.9% in the third quarter compared to 17.3% in the second quarter. We've tightened our annual tax guidance to between 16.5% and 17%, down from between 16.5% and 17.5%. Annualized net charge-offs to average loans were 33 basis points in the third quarter compared to 11 basis points in the linked quarter. As Marty mentioned, we now expect this ratio to be approximately 30 basis points for full year 2026.

Our allowance for credit losses were fairly stable, down 1 basis point to 99 basis points of total loans as of September 30, 2026. We remain comfortable with the allowance and associated coverage ratio given our strong asset quality. Overall, our third quarter results underscore our ability to translate disciplined execution into growth, with commercial lending leading the way.

Our full year profitability targets remain intact, outlined by a return on average assets of at least 130 basis points and a return on average equity of at least 12.5%. Despite the impact of AOCI from the securities portfolio, our balance sheet remains a source of strength with a TCE ratio of 8.4% and a CET1 ratio of 11.36%. This provides us with flexibility to pursue growth while returning capital to shareholders. Together, these measures underpin our capital allocation priorities, supporting organic loan growth, investing thoughtfully in our business and returning value to our shareholders. That concludes my remarks.

I'll now turn the call back to Marty.

Martin Birmingham

Thanks, Jack. Overall, our year-to-date performance has been strong, and we are well positioned to maintain momentum through the fourth quarter. Our team remains focused on credit-disciplined loan growth, core nonpublic deposit growth, prudent expense management and disciplined execution against our strategy. Our focus on these priorities remains centered on delivering profitable growth and creating long-term value for our shareholders.

That concludes our prepared remarks. Operator, please open the call for questions.

Operator

[Operator Instructions] The first question is from Damon DelMonte from KBW.

Fragen und Antworten

Damon Del Monte

First question, just probably for Jack here on the margin. I think you had said that you should probably see a little benefit to the margin from the rate increase that we saw in September. Just wondering if you could kind of walk us through some of the thoughts behind that outlook. And then also, if we do get another rate hike here in December, kind of how you think the margin would be responding as we go into 2027?

Jack Plants

Yes. Thanks, Damon. So as you may recall, about 43% of our loan book floats off of prime and SOFR. And then we've got about 13% of the remaining book that is adjustable from a 5-year point of the curve on end. We've seen some immediate repricing from that rate hike in the back half of September. It has a little bit of a muted impact on monthly margin just given the timing of the adjustment for the quarter.

But as we wrapped up September, our monthly margin was about 3.72%. And as we look to the rest of the year, I think we're targeting December wrapping up around 3.75%. So the earning asset side of the portfolio continues to benefit for the rest of the year. If there's a hike in December, the impact would be fairly muted on the quarterly margin.

Damon Del Monte

Got it. And would you expect those dynamics to continue as we go into '27, given the additional rate hike?

Jack Plants

No.

Damon Del Monte

Okay. Great. And then I guess just on loan growth, solid quarter. I think you guys had kind of messaged earlier in the year that you thought the growth would be more in the back half of the year. And I think we saw a good second quarter and now a good third quarter. Just kind of -- I know you've kind of reiterated the mid-single digits for the year, but anything that's kind of standing out here in the fourth quarter that really gives you confidence for another solid quarter?

Martin Birmingham

I just -- it's Marty, Damon. Thanks for the questions this morning. Our pipelines continue to be pretty solid and consistent with where they've been in the year-over-year periods going back to '25, '26 and the outlook for '27. So that's across the board in CRE and C&I as well as generally upstate for the most part. But even our Mid-Atlantic loan team is showing growth in their opportunities that they're looking at. But specifically, how that translates to the outlook, Jack, how would you?

Jack Plants

Yes, I would say that we've been actively replenishing our pipelines across all portfolios, and they remain strong. From a sizing perspective, the pipeline is around the same size as it was when we entered the year. So our commercial lending folks have been really active in replacing the cash flow that comes off and generating new clients to backfill. So I'm optimistic about our ability to generate loan growth on the commercial side through year-end.

Damon Del Monte

Okay. Great. Appreciate that color. And then just one more quick one for me. Jack, I noticed like the average securities were down linked quarter. Just curious, should we expect there to be kind of a build back up? Or do you think it's going to be kind of run-rating at a lower level now?

Jack Plants

There will be a seasonal build back up for collateral to secure public deposits that come in at the end of September and into the first part of October. Those purchases are largely on short-term T-bills. We've been actively working with our public depositors to try to transition their collateralization needs into our reciprocal deposit portfolio to relieve some of the need to use investment securities.

Operator

The next question is from Manuel Navas from Piper Sandler.

Manuel Navas

Could you go into a little more detail on your strong deposit flows? Like, how much was seasonality in public funds versus maybe some commercial wins? And just kind of future -- discuss the deposit initiatives that you're leaning into most.

Jack Plants

Yes. This is Jack. I'll take that one, Manuel. So to remove some of the seasonality, I look at the year-to-date performance, and we've really had strong performance across the commercial platform for the first 9 months of the year. That momentum has really been driven by the investment that we made and have continued to make in our treasury management platform. So typically, we'll lead with a loan origination and then bring the deposit profile from that customer along, and we're really seeing some solid wins.

Martin Birmingham

Manuel, the other thing I just would add is that primacy is a fundamental strategic focus across all of our business activities, primacy of relationship on a consumer basis, small business, commercial. So all of our sales teams are aligned and they are incented to try to maximize the opportunity and balance utilization of our balance sheet in terms of loans with deposits that come with that. So we feel good about the progress we've made, reinforcing alignment, and the outcomes are starting to follow that.

Manuel Navas

Appreciate that. As you kind of think about where you're ending the year with that NIM and 3.75%, I think that should be really helpful. But is that -- what are kind of some of the puts and takes to potentially targeting positive operating leverage next year? And is that first a goal? And is that -- what are some of the puts and takes for that?

Jack Plants

Yes. This is Jack. I'll take that one. We're in the probably middle phases of building out our 2027 plan. But our target right now is positive operating leverage of 200 to 300 basis points and an efficiency ratio that's approaching 55%.

Manuel Navas

I appreciate that. What would be the biggest ways you could potentially outperform it?

Jack Plants

It would really come from some sort of accelerated loan growth, but we're really disciplined in where we're pricing. So right now, that's where our target is. We'll be able to share more details when we come out with our fourth quarter earnings and our guidance for full year 2027.

Martin Birmingham

So we have our eye on loan growth and disciplined pricing and ensuring we have adequate spreads. The other thing related to deposits, like every bank of all sizes, to the extent we can continue to drive our cost of funds down, that would be an accelerator of performance and operating leverage.

Manuel Navas

The buyback was nice this quarter. Can you just talk a little bit about where it fits in your capital deployment? Are you going to keep this pace? How does it fit in versus organic growth? How does it fit in versus conversations on M&A?

Martin Birmingham

Yes. I think that's exactly it. It kind of really depends. It's really been a really nice opportunity for us. I think since we initiated our program, we purchased a total of 686,000 shares. The earnback in the early part of the program was a year or less and most recently, about 3 years or less. So as long as we're undervalued, we know the risk of execution, and it's a very straightforward capital decision for the company. But of course, we are on a path and driving growth. So we're balancing all those issues.

Operator

There are no further questions at this time. I would like to turn the floor back over to Mr. Birmingham for closing comments.

Martin Birmingham

Thank you very much for joining us. We look forward to continuing to keep you updated on our progress on our next call.

Operator

This concludes today's teleconference. You may disconnect your lines. Thank you for your participation.