Greetings. Welcome to the Cherry Hill Mortgage Investment Corporation Q1 2022 Earnings Call. At this time, all participants are on a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I'll now turn the conference over to your host, Garrett Edson. You may begin. We'd like to thank you for joining us today for Cherry Hill Mortgage Investment Corporation's Q1 2022 conference call. In addition to this call, we have filed a press release that was distributed earlier this afternoon and posted to the investor relations section of our website at www.chmireit.com. On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those discussed today. Examples of forward-looking statements include those related to interest income, financial guidance, IRRs, future expected cash flows, as well as prepayment and recapture rates, delinquencies and non-GAAP financial measures such as earnings available for distribution or EAD, and comprehensive income. Forward-looking statements represent management's current estimates, and Cherry Hill assumes no obligation to update any forward-looking statements in the future. We encourage listeners to review the more detailed discussions related to these forward-looking statements contained in the company's filings with the SEC and the definitions contained in the financial presentations available on the company's website. Today's conference call is hosted by Jay Lown, President and CEO, Julian Evans, the Chief Investment Officer, and Michael Hutchby, the Chief Financial Officer. Now I will turn the call over to Jay. Thanks, Garrett, and welcome to today's call. First quarter was certainly eventful for both Cherry Hill and other agency-focused REITs as markets endured the considerable widening of mortgage spreads, inflation hitting 40-year highs, a war in Eastern Europe, and continued market concerns about supply chains not at full capacity. As the Fed began to telegraph its strategy to fight inflation, rates spiked meaningfully during the quarter, and that has further progressed into May. The U.S. 10-year Treasury finished the quarter at 2.34%, 83 basis points above year-end. At the same time, economic data held the line for most part, with unemployment remaining near historic lows and close to or at full employment levels. The Fed has telegraphed significant rate hikes in the months ahead to combat high inflation and started with a 50 basis point move last week. Markets globally are digesting the velocity of future hikes and the Fed's intentions around reducing its balance sheet. We are actively adjusting our investment portfolio as we evaluate the impact these actions will ultimately have on the broader economy as well as mortgage-related assets. For the quarter, improving prepayment speeds continued to aid our earnings available for distribution, or EAD, a non-GAAP financial measure. In the Q1, we generated GAAP net income applicable to common stockholders of $25.6 million or $1.40 per share, and EAD of $6.2 million or $0.34 per share, exceeding our quarterly dividend level of $0.27 per share. On an annualized basis, our dividend yield is 16% based on the recent average of our closing price of our common stock. As a reminder, EAD is just one of several factors we consider in setting our dividend policy. Book value per common share finished at $7.27 as of 31 March 2022. During the quarter, we reduced the size of our RMBS portfolio in an attempt to mitigate the impact of spread widening and minimize the impact on book value and NAV. Spreads widened during the quarter on average of about 25 basis points, which accounted for nearly three-quarters of the decline in book value in this period, in line with our previously provided Q4 basis risk sensitivity profile. We were able to stabilize the book value reduction in March, and we are pleased to report that the book value was up slightly in April. Julian will provide more details on our portfolio performance shortly. As a reminder, our current book value performance per common share is a function of preferred stock, making up a significant portion of our overall equity profile. On a net asset value basis, which doesn't account for the difference in common or preferred equity, our performance in the quarter was more effective, with NAV down approximately 8% quarter-over-quarter before taking into account any common stock issuances pursuant to our ATM program. We believe our NAV performance shows our strategy of pairing RMBS with agency MSRs partially mitigated the full effect of spread widening in agency RMBS. That said, we remain committed to stabilizing and growing our NAV and book value. We continue to be constructive on MSRs given our view on interest rates over the near term, and they provided a good amount of assistance relative to our book value performance in the quarter. We would note, however, that with the 10-year at the 3% mark, the ability for the MSR portfolio to continue to hedge the RMBS portfolio begins to become less effective. As the current coupon for agency RMBS is now well above the weighted average note rate of our MSR portfolio. That said, we continue to believe MSR and RMBS assets complement each other well. As a result, we expect to remain disciplined in our approach to investing in MSRs, given the rise in rates, the competition, and robust pricing. As prepayment speeds further decline in a higher rate world and behavioral modeling risk increases, we continue to believe the best approach remains being selective in adding or replenishing MSR assets. During the Q1, we acquired approximately $500 million UPB in Fannie and Freddie MSRs via flow purchases. As noted before, we continue to believe the strategy of marrying MSRs with agency RMBS provides for attractive risk-adjusted returns and aids in protecting the portfolio from the full extent of current coupon spread widening. At the end of the quarter, leverage was 3.6x, comparable with the end of the prior quarter. We ended the quarter with $52 million of unrestricted cash on the balance sheet, maintaining a solid liquidity profile. Our recapture efforts remain strong with a 19.6% recapture rate on our MSRs in the quarter. Recapture rates should continue to decline as mortgage rates rise, though prepayment speeds net of recapture should continue to improve. Looking ahead, as the Fed continues meaningfully tightening rates and providing greater clarity around its balance sheet reduction program, we believe the mortgage basis should stabilize later in the year. Our intention is to raise leverage back to more historical levels and to take advantage of opportunities in agency RMBS as spreads normalize and rates begin to peak. In the meantime, we continue to keep a firm hand on our balance sheet, and when we see attractive investment opportunities, we will look to invest prudently. With that said, I'll turn the call over to Julian, who will cover more details regarding our investment portfolio and its performance over the Q1. Thank you, Jay. The Q1 was characterized by a rising rate environment that had long been anticipated. As inflation took center stage and the Fed signaled a clear shift in its policy in order to fight inflation and reduced its balance sheet. The assumption of pending rate hikes was known to the market. However, the pace and the size of future hikes is still very much uncertain, which is evidenced by the broad range of forecasts produced by market pundits as the Fed works to return inflation to neutral and to engineer a soft landing for the U.S. economy. In March, the Fed took its first step by hiking rates 25 basis points. With the Fed Chair noting that taming inflation is absolutely essential, we were not surprised to see the Fed hike rates an additional 50 basis points last week, and we expect there will be many more to come in the coming months. In the meantime, the market has attempted to get ahead of the Fed and has priced in multiple rate hikes for this year. At quarter end, MSR had a UPB of $20.4 billion and a market value of approximately $246 million. During the quarter, we purchased approximately $500 million UPB of new MSRs through our flow programs, as Jay mentioned. At the end of the Q1, the MSR portfolio represented approximately 45% of our equity capital and approximately 21% of our investable assets, excluding cash. Meanwhile, our RMBS portfolio accounted for approximately 40% of our equity. As a percentage of investable assets, the RMBS portfolio represented approximately 79%, excluding cash at quarter end. During the quarter, we continued to experience CPR improvements in both our MSR and RMBS portfolios. Our MSR portfolio net CPR averaged approximately 13% for the Q1, down materially from approximately 19% net CPR in the previous quarter. The decline was driven by rapid rise in interest rates, which resulted in the mortgage production coupon escalating from 2.5%- 4% in less than 90 days. The reduction in MSR CPR was supported by the rapid change in mortgage production coupons, which drove slower prepayment speeds in the quarter, as well as a relatively solid recapture rate of 20% versus 23% in the Q4. Going forward, we should expect a lower recapture rate, but stable or improved net CPR given the escalated levels of interest and mortgage rates. Similarly, the RMBS portfolio's prepayment speeds exhibited the same themes. The portfolio's weighted average three-month CPR reduced to approximately 11% in the Q1 compared to approximately 12% in the Q4. As mortgage rates have moved higher, mortgage securities have become less refinanceable. As of today, nearly the entire mortgage universe is out of the money in terms of refinancing. We would expect prepayments to continue to slow, but again, to form a foundation if we remain at these levels of interest rates or higher. As of 31 March 2022, the RMBS portfolio, inclusive of TBAs, stood at approximately $940 million, compared to $1.4 billion at previous quarter end. The reduction was driven by selling of securities, rising interest rates, as well as mortgage spread widening. Quarter-over-quarter, the size of the RMBS portfolio was reduced to lower basis risk and protect book value as interest rates rose. Both TBA and specified pools were sold during the quarter to limit exposure. As an offset, we did reinvest some of the proceeds into this higher yielding, lower dollar priced environment. At the end of the Q1, the 30-year securities position represented 94% of the RMBS portfolio versus 89% at the end of the Q4. Shorter duration securities made up a smaller portion of the RMBS portfolio. 20-year securities and other collateral positions represented 6% of the portfolio at quarter end. For the Q1, we posted a 3.06% net interest spread versus a 2.46% net interest spread reported for the Q4, driven by a continuation of better prepayment speeds. The spread was also aided by improved interest expenses on our payer swaps, which offset higher repo costs. At quarter end, portfolio leverage stood approximately 3.6x at the aggregate level. Looking forward, the Fed is still at the beginning of the fight to minimize inflation. As of last Wednesday, the Fed hiked for only the second time this year and had just announced and laid out its plan for reducing its balance sheet. For now, the market has front run the Fed, expecting it to raise the Fed fund rate, the equivalent of an additional 175 basis points this year to combat inflation. We are focused on the Fed's ability to achieve its goal of fighting inflation and maintaining solid GDP growth, which will be a delicate balance at best. We expect elevated levels of volatility and limited liquidity in the markets. As such, we will continue to evaluate and alter the portfolio as necessary as the year progresses. I will now turn the call over to Mike for our Q1 financial discussion. Thank you, Julian. Our GAAP net income applicable to common stockholders for the Q1 was $25.6 million or $1.40 per weighted average share outstanding during the quarter. Comprehensive loss attributable to common stockholders, which includes the mark to market of our held for sale RMBS, was $17.9 million or $0.98 per share. Our earnings available for distribution attributable to common stockholders was $6.2 million or $0.34 per share. Our book value per common share as of 31 March 2022 was $7.27 compared to a book value of $8.56 as of31 December 2021. We use a variety of derivative instruments to mitigate the effects of increases in interest rates on a portion of our future repurchase borrowing. At the end of the Q1, we held interest rate swaps, swaptions, TBAs, Treasury futures, and options on Treasury futures, all of which had a combined notional amount of $1.4 billion. You can see more detail with respect to our hedging strategy in our 10-Q as well as in our first quarter presentation. For GAAP purposes, we have not elected to apply hedge accounting for our interest rate derivatives, and as a result, we record the change in estimated fair value as a component of the net gain or loss on interest rate derivatives. Operating expenses were $3.5 million for the quarter. On 10 March 2022, our board of directors declared a dividend of $0.27 per common share for the Q1 of 2022, which was paid in cash on 26 April 2022. We also declared a dividend of $0.5125 per share on our 8.20% Series A Cumulative Redeemable Preferred Stock and a dividend of $0.515625 on our 8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, both of which were paid on 18 April 2022. At this time, we will open up the call for questions. Operator? At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we pull for questions. Our first question comes from the line of Mikhail Goberman with JMP Securities. Please proceed with your question. Hi, good afternoon, gentlemen. You guys said book value was up slightly in April. I'm wondering what would you ascribe that relatively good performance to? Julian, you wanna talk about that? Sure. I mean, look, I think some of it happens to deal with coupon positioning. You know, as we moved into the Q2, we have a little bit more focus, being up in coupon. We also, in terms of the lower coupons, have some, short positioning there. I'd also say, you know, we had pretty good, swap hedges on, especially in the front part of the curve, as things were moving higher. We also had some additional futures hedges on in the portfolio, and they were mainly in the back part. Our MSR also rose in value during that time. I think it was just a good combination of being properly hedged, for what we thought was gonna happen in April and, tactically, doing it. Oh, well done and best of luck in continuing that performance. I'm wondering how much spread widening do you guys think is still possible in MBS? Also kind of parallel to that, maybe how much sensitivity MSR values have to further spread widening or moves up in rates. You wanna talk about the MSR, but or I'll have Ray talk about the MSR. Julian will start off on the MBS side. Yeah. I mean, I think, we, I guess, in terms of investors are trying to find out with the Fed what is neutral in terms of, interest rates. I think the market is looking for some type of stability. We do view mortgages as being quite attractive, at this point in market, but we also have elevated volatility. The continuous sell-off, I think has made them attractive from a yield and a dollar price perspective and even on a LIBOR OAS perspective, but they still have more room to go. I think if the market, deems that the Fed has a lot more rate hikes to do in terms of moving past, neutral. They're assessing that neutral is probably 2.5%-2.75% in terms of interest rates, but they also have described that they're gonna have some hikes in fiscal year 2023. If we have to go meaningfully above neutral, I would say there's probably at least another 15%-20% widening that has to occur in mortgages. If we can find some stability in rates in terms of around here or let's say near 3.5% max, I think we can have some support and mortgages can begin the process of firming up. Thanks. Ray, you wanna talk about the MSRs, please? Sure. I mean, on the MSR front, I think, given the speed at which we saw rates rise, you know, it's really dampened the impact from prepayment slowdown due to spread widening on, you know, rates that are now 100 basis points out of the money. I suspect as, you know, the year goes on and new acquisitions occur that are more towards where par sits today, which is, you know, low five, that'll start to grow again. Right now, with the speed of how quick everything happened, I think even production that's coming in the door right now is like 4.5 note rate, which sits, you know, 75 basis points below par. All right. That's helpful. Thank you. One more if I could, just a housekeeping question. I know your 10-Q is probably coming out soon, but is there any change to the DTA level from $20.6 million at the end of the year? Yes. The DTA came down to approximately 16. Hang on. Let me pull it up. It was $16 million and change million at the end of Q1. All right. Thank you very much, guys. No problem. Our next question comes from the line of Henry Coffey with Wedbush. Please proceed with your question. Good afternoon, everyone, and thanks for taking my call. I'm looking at slide 15 in your deck, which is very instructive. The thing that sticks out is that when you talk about book value change and interest rate sensitivity, the big problem is basis risk, in other words, spreads widening. If I'm reading this correctly, you're saying that if basis stays the same, book value stays the same at $7.27. A 25 basis point widening would take book value down to $6.47. Is that a real possibility? It does sound like something that hasn't occurred because your book value is up a little bit, but could occur. Well, Henry. The offset from rates just isn't that large. 100% that the rate sensitivity is significantly less than the basis risk. I think it's been that way. It's always been that way. Right. Nobody's really focused on it when the Fed was tightening. Narrowing. More easing over the last two years. Clearly, you know, a lot of book value gains for agency RMBS during that time was attributable to spread tightening. For better or for worse, however, everybody kind of portrayed that message. You know, reality is, you know, a lot of risk resides in basis risk exposure because it's not something that traditionally agency RMBS hedge for in a significant way. If the question is, how much do we think there is to go? Julian tried to, I guess, give you some feel for what might happen. Look, a lot of this is Fed dependent, you know, in terms of the market's comfort level about how this landing is and, you know, terminal rates, you know, going into the tightening. You know, while they are clearly doing a better job today of conveying their intentions. You know, a lot of things could impact what they do going forward relative to growth, recession, you know, macroeconomic events, you know, the war in Ukraine. I think we're just trying to really manage through that from the perspective of trying to understand, you know, what the right hedge ratio is for the assets in terms of, you know, where they could fully extend to, as well as, you know, managing what we think the contribution is from the MSR to offset some of that, which I think I said in the script, as we approach 3% on the 10-year, the ability for the MSR to assist in terms of limiting the effect of spread widening decreases just based on the pure fact that current coupon, as Ray mentioned, you know, somewhere in the 4s% versus the current coupon on our portfolio, which is in the mid 3s%. Does that help? I, you know, there's no real- It's how aggressive are you willing to be in terms of leaning in one direction or the other? Put differently, how aggressive would you be on the MSR book, given that rates are moving higher? In terms of- Mortgage rates. Aggressive in terms of. Mortgage rates are moving higher, and I know it gets more complex after that. I don't understand the word aggressive. Aggressive in what sense? Buying more MSRs with more leverage and selling down RMBS. In other words, increasing the mix of MSR- Yeah. Selling RMBS, buying more MSRs, either with additional leverage or through liquidating the other side of the business. I would describe getting more aggressive on MSRs as just simply buying more. Okay. I'll let you work out the details. Sure. You know, look, given that 40%, approximately 40% of the equity is in the asset, you know, there's no real desire to take it to, say, 60% today. You know, we do have an interest in acquiring servicing assets that we think meet our risk return hurdles in terms of characteristics that we like. We don't have any intention to, you know, sell a significant portion of that portfolio today. I think, you know, one of the hardest things Ray will tell you about MSRs is managing prepayment risk. You know, given that the portfolio has a weighted average note rate that's low today, that's great for cash flows. That's critical. What we have done, which I think probably hasn't gone unnoticed, is we've reduced the size of the MBS portfolio a fair amount. What we've done to try to limit our exposure to the basis risk is to de-lever that MBS portfolio. I believe, you know, we've taken it down $200 million over the last four months in an effort to reduce our exposure to the basis. Should we feel that we have more to go, it wouldn't surprise me if we made a decision to continue to do that more aggressively. Where would the cash go? There's some cash that comes out of that. I'm looking at your numbers. Yeah. You know, look, it's, you know, the leverage on that is obviously higher. Right. That cash. Not a lot. Maybe it's held in cash. You know, maybe we buy some MSRs. You know, honestly, we think that at some point during the year, these mortgage spreads will normalize. You know, as again we said in the script, I think at that point, we would return to that space, you know, fairly aggressively and look to invest capital in that area. Great. Thank you. Our next question comes from the line of Matthew Howlett with B. Riley. Please proceed with your question. Oh, hi, Jay. Hi, everybody. Thanks for taking my question. Hi, Matt. Yeah. The first one, the net CPR for the MSRs, it was 12.7%. I know the recapture came down, but the overall CPR came down. My question to you, where could that go from here? Where could gross CPRs go on MSRs? Could it be 5%, 6%, 6% CPR? Kind of what do you think then how low the net CPR could go on that portfolio? Well, I'll try to get Ray to limit the amount of time he'll spend on this because he could spend a half an hour on the phone with us talking about that. Ray, tell Matt where you think based on our portfolio and what you think lifetime speeds and short-term speeds could go relative to the current portfolio. Yeah, I mean, I think that, you know, I look back to prior to the pandemic, you know, 2017, I wanna say, 2018, when, you know, rates were rising and, you know, we actually had out of the money MSRs and where were prints back then? They were definitely in the, you know, mid to high single digits, and those were not nearly as out of the money as the portfolio sits today. I'm always hesitant to kind of think 6% is possible, but it does seem like it's in the realm of possibilities given that, you know, everything's 150 basis points out of the money or more. Okay. You said five or six before recapture possibly. Yeah. I suspect recapture will become, you know, quite negligible and, you know, CPR on a gross basis will just sit, you know, more or less around the mid-singles, and it'll be on gross end. From a P&L perspective, if I looked at that servicing fee income and the servicing income line, it was up a little. Servicing cost line, it was up a little bit. It improved sequentially. Holding everything constant like the portfolio, should we expect that line item, that net service income to continue to improve, if amortization continues to go lower and lower? Well, I mean, from a improvement standpoint, that line item is largely driven by the size of the portfolio. You know, Right. 25 basis point strip essentially on the UPB. As far as the UPB increasing, that drives it higher. Slowdown in speeds just means that your rate of decline diminishes. It doesn't necessarily mean that it's gonna grow. Okay. You're modeling it and you're running it at a certain speed. Sure. I'm just trying to get I guess where I'm going with this, and I wanna go to the RMBS portfolio. You did a you know 300 basis points plus spread, and it's one of the highest I've seen you know in the space. You know congrats to you and the team. I guess where I'm going with this, do you think will that come in as the Fed repo costs, or do you have that hedged out? I mean, well our swap position is going to offset that once some of the payer swaps reset. Do I know if it'll be a perfect one-to-one? There's always a lag of, let's say, you know, two to three months each time the swaps are kind of resetting to where the Fed is moving the Fed funds. Right now it looks like it's moving in tandem. Our, you know, our interest expense is kind of declining a little bit, or at least holding flat. For the moment it looks pretty good. I would say, as we get to a point of where we believe there is a high in rates, we will do some movements or change and make some changes to the portfolio. You know, as we said, as time goes on, we will make changes to the portfolio in terms of the environment and things like that. For right now, I think it looks pretty good. I guess where I'm going with this, Jay, it's just you got a great earnings available for distribution number. You're covering the dividend and you're putting out a very high ROE to common shareholders. I mean, what, the way it sits now, it looks pretty fairly stable. I mean, what, you know, what could go wrong? I mean, sort of what do you expect? What can you tell me in terms of, you know, I know the environment is changing, but where you got the book position today, do you feel like you could still do a pretty strong, you know, earnings EAD number for at least the near term? Yeah. With respect to is the dividend, you know, the question probably sounds like, is the dividend, secure in the near term? To Julian's point, a lot of things relative to how fast the Fed tightens and how that impacts, you know, our funding costs, et cetera, really determines a lot of things that you're talking about. Clearly so far things have worked out well for us. It seems the Fed isn't planning on doing 75 basis points or 100 basis points in tightening. If things are stable with respect to how the Fed approaches this tightening cycle, you know, the board will certainly, you know, think about that when it decides and determines what the appropriate dividend level is for the company. Right. Got you. I mean, would you just look at the trade-off where you're not getting really paid for a high teens yield and just, you know, you'd rather just more focused on growing equity value? I mean, just— You have some preferred that I guess are up or they're callable up here, you know, I know markets wide. But just when you look at the company going forward, I mean, would you like to really, you know, grow book value and retain more income? I know there are some restrictions on that, but just curious on it. Yeah. Look, so I'm not gonna speak for the board, you know, on the call, but what I can tell you is everything that you just mentioned is discussed and has been discussed at the board meetings. You know, we meet again in June, and I imagine it'll be another pretty healthy conversation. Great. Jay, just, you know, just one broader question on the mortgage industry with excess capacity and where we are. Any just sorta, you know, thoughts on, you know, how high mortgage rates could go and just, you know, general health of the U.S. mortgage industry given, you know, your involvement in it. Yeah. Good question. I don't spend a ton of time on the origination side. Obviously, you know, originators volumes are down meaningfully and, you know, they're very focused on cutting costs and margins. I think it'll be interesting to see how all these guys do, you know, post-March relative to the most recent uptick in rates, and what they're planning on doing relative to cutting their margins to maintain volume or whether they start to get religion. We've seen, you know, some decent layoff announcements. We've seen some companies come out and say publicly that they're not planning on laying off. You know, we're definitely seeing through the daily origination volumes coming through decent drops in volume on a regular basis. You know, from the people that we talk to in the space, while volumes had maintained themselves, you know, fairly well through April, to a lot of people that indicated that, you know, just a delay in the timing of pipelines that were started, you know, towards the beginning of the year. Our expectation is that volumes will continue to drop on the origination side, and originators will be forced to make some pretty hard decisions around, you know, profitability. No, I say that mostly in the conventional space because we just don't really follow the Ginnie Mae space. Could it possibly see the bulk market? I'm just, have you addressed that at all and could you ever see packages that come out? I know pricing sounds pretty rich right now, but just curious on that side of it could- Yeah. Ray, you know, we follow the bulk market, and you know, we've been active in the bulk market, you know, recently. Ray, do you want to spend a second on talking about the bulk market? Sure. You know, definitely I've seen a lot of volume come out thus far this year. You know, it has been a little bit difficult from the standpoint of, you know, we talked earlier about utilizing MSR for spread widening and the protection benefits there. Everything that's been coming to market has been basically originated in the last 12 months. There's nothing that is not fully priced or darn close to fully priced. And that's Right. Hasn't been our strong interest to, you know, double down there. I think from the flow space, or as we see originations coming out right now, that'll probably go into the bulk market over the next few months. I think that's where, you know, our interests lie more in terms of the risk-return profiles of MSRs. Definitely there's a lot of bulk volume out there. If you're, you know, confident with the CPRs at 7% for life, you know, it's there for the taking. That's a good point. What you're saying is with the current coupon now on the MSRs, that could be interesting down the road on the newer production in terms of, you know, looking at those and running those speeds maybe a little differently than what's already been originated. Yeah, exactly. Great. Well, thanks everybody. We have reached the end of the question and answer session. I'll now turn the call back over to Jay Lown for closing remarks. Thank you, operator. Thank you everybody for joining the call today. We look forward to talking to you in a few months to report on our Q2 results. Have a great evening. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.