Good day, and thank you for standing by, and welcome to the First Western Financial First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Tony Rossi of Financial Profiles. Sir, please go ahead. Thank you, Norma. Good morning, everyone, and thank you for joining us today for First Western Financial's First Quarter 2024 Earnings Call. Joining us from First Western's management team are Scott Wylie, Chairman and Chief Executive Officer, Julie Courkamp, Chief Operating Officer, and David Weber, Chief Financial Officer. We will use a slide presentation as part of our discussion this morning. If you've not done so already, please visit the Events and Presentations page of First Western's Investor Relations website to download a copy of the presentation. Before we begin, I'd like to remind you that this conference call contains forward-looking statements with respect to the future performance and financial condition of First Western Financial that involve risks and uncertainties. Various factors could cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. These factors are discussed in the company's SEC filings, which are available on the company's website. I would also direct you to read the disclaimers in our earnings release and investor presentation. The company disclaims any obligation to update any forward-looking statements made during the call. Additionally, management may refer to non-GAAP measures, which are intended to supplement, but not substitute, for the most directly comparable GAAP measures. The press release available on the website contains the financial and other quantitative information to be discussed today, as well as the reconciliation of the GAAP to non-GAAP measures. And with that, I'd like to turn the call over to Scott. Scott? Thanks, Tony, and good morning, everybody. During the first quarter, while continuing to prioritize prudent risk management and conservative approach to new loan production, we were able to deliver a higher level of profitability than our originally reported $0.03 a share in Q4. This improvement is encouraging, although not at the level of profitability that we target. We executed well on our strategic priorities, which resulted in positive trends in a number of key areas, including further lowering our loan-to-deposit ratio, generating a higher level of non-interest income, primarily driven by our Wealth Management and Mortgage Banking businesses, an improvement in our asset quality with a decline in non-performing loans and zero net charge-offs in the quarter. The higher level of profitability, combined with our prudent balance sheet management, resulted in an increase in our tangible book value per share and increases in our risk-based capital ratios. As we indicated in our last call, the primary focus of the near term is on core deposit gathering in order to further improve our level of liquidity, which is reflected in our balance sheet trends in the first quarter. We remain conservative in new loan production, maintaining our disciplined underwriting and pricing criteria while prioritizing lending to clients that provide full banking relationships, including deposits and Wealth Management business. This approach, along with lower level loan demand due to higher interest rates, resulted in a lower level of loan production in the quarter. Loan payoffs continue to be at relatively the same level we've been seeing, but we also saw a lower level of draws on existing credit lines than we've seen in the past few quarters. This resulted in a decline in total loans during the first quarter, most notably in the areas of Commercial and Industrial loans. In terms of asset quality, we continue to make progress on the resolution of loans that were put in non-accrual status over the past several quarters. This included a paydown of one of the loans that comprised our largest non-accrual relationship, following the sale of one of the properties that we had as collateral, and a second already in Q2. As we've indicated, this process will take some time, and the sale of various collateral pieces will proceed on different schedules. But based on the progress we're making, we expect to see continued successful resolutions with minimal loss incurred. Aside from the existing non-accrual loans, the rest of the portfolio is performing well, and we had a decline in past due loans during the first quarter. This continues a positive trend we've been seeing in this area. As compared to the first quarter of 2023, past due loans are down 59%. As we announced during the first quarter, we successfully charged off the other large nonaccrual loan after the guarantor filed for bankruptcy. So the full extent of the losses on this loan have already been incurred and are reflected in our income statement. And as we pursue our recovery efforts, there will only be positive potential impact from here on out. We also sold off a third smaller nonaccrual loan last quarter at a small premium, further reducing our problem loans to the lowest percent of total loans over the past three quarters, down to 1.86%. Moving to slide four, we generated net income of $2.5 million, or $0.26 per diluted share in the quarter, and pre-tax, pre-provision net income of $3.7 million. Q1 earnings and EPS were about 16% higher than the average of the prior four quarters using our originally reported Q4 earnings, as we showed positive trends in several areas of our operations. With our higher level of profitability and prudent balance sheet management, we had a 1% increase in our tangible book value per share this quarter. Now I'll turn the call over to Julie for some additional discussion of our balance sheet and Trust and Investment Management trends. Julie? Thank you. Turning to slide five, we'll look at the trends in our loan portfolio. Our total loans decreased $56 million from the end of the prior quarter. We continue to be conservative and highly selective on our new loan production, focusing primarily on non-CRE lending opportunities and clients that also bring deposits to the bank. This resulted in $31 million in new loan production in the first quarter, which was a lower level than we have had in the past several quarters. Combined with payoffs continuing at a relatively consistent level and a lower level of draws on existing credit lines than we had been seeing, primarily due to clients being cautious about interest, increasing debt levels at higher rates, and until economic conditions improve, this resulted in the decline in total loans that we saw in the first quarter. The largest decline came in our C&I portfolio, which was partially attributed to a loan that we sold during the quarter. We continue to be disciplined in our pricing criteria. However, the average rate on our new loan production dropped a bit this quarter to 6.95%, which is primarily due to one large cash-secured origination. Moving to slide six, we'll take a closer look at our Deposit trends. Our total deposits were up slightly during the quarter. We continue to have success in new business development and added $17 million in new deposit relationships during the first quarter, with average deposits up $83 million or 14% annualized quarter-over-quarter. We had the largest growth in our money market accounts, which reflects the expansion of existing client relationships, as well as clients moving funds into money market accounts from time deposits. Turning to Trust and Investment Management on slide seven, we had a $388.5 million increase in our assets under management in the first quarter, primarily due to market performance. This continues the positive trend we are seeing in AUM, which has increased 12% or $750 million over the past year. Now I'll turn the call over to David for further discussion of our financial results. Thank you. Turning to slide eight, we'll look at our gross revenue. Our gross revenue increased 4.6% from the prior quarter, primarily due to an increase in our non-interest income. As expected, this reversed the downward revenue trends we saw in 2023. Now, turning to slide nine, we'll look at the trends in net interest income and margin. Our net interest income decreased 1.6% from the prior quarter due to an increase in interest expense resulting from a higher average cost of deposits. Our net interest margin decreased 3 basis points to 2.34%, driven by an increase in interest-bearing deposit costs and an unfavorable mix shift in our deposit portfolio, offset partially by an increase in the average yield on interest-earning assets. The rate of decline in NIM has decelerated over the past four quarters, nearing a point of stabilization. During March, we repaid $31 million of borrowings from the Bank Term Funding Program, which will reduce our level of borrowings in the second quarter. We continue to have $10 million of borrowings outstanding from the BTFP, but the rate is locked for one year, so we will not see a rate increase on these borrowings. Now, turning to slide 10, our non-interest income increased 19.7% from the prior quarter. We generated increases in Trust and Investment Management fees, net gain on mortgage loans, and bank fees, which were partially offset by a decrease in Risk Management and Insurance fees, which are seasonally higher in the fourth quarter each year. The increase in net gain on mortgage loans was due to two factors. First, loan production increased to $91 million from $67 million in the prior quarter, as we saw an increase in home buying activity in our markets, as well as the contribution of production from new MLOs we had added this year. Second, we had an increase in our average gain on sale margins. Now turning to slide 11 and our expenses. Our non-interest expense increased to $19.7 million, primarily due to the seasonal impact of higher payroll taxes and higher incentive compensation, which returned to a more normalized level as a result of our increase in profitability, and we had higher legal costs in the quarter. For the next few quarters, we expect to manage core operating expenses carefully, as in 2023, 2023, with the main variable being the level of incentive compensation, which will be dependent upon our financial performance. Now, turning to slide 12, we'll take a look at our asset quality. Our non-performing assets declined to $5.1 million, which was primarily due to the sale of a non-performing construction loan at a gain and the paydown of our largest non-performing relationship following the sale of a property that we had as collateral. The remainder of the portfolio continues to perform well, and we had a decline in past due loans and zero losses in the quarter. With the decline we had in loans, our level of allowance to adjusted total loans increased 5 basis points to 1% at March 31. I also want to note that multifamily loans represent just 7% of our total loan portfolio. These loans are performing well, and none of the loans are to borrowers for rent-controlled properties. Now, I'll turn it back to Scott. Scott? Thanks, David. Turning to slide 13, I'll wrap up with some comments about our outlook. While economic conditions remain uncertain, we'll continue to prioritize prudent risk management and conservative approach to new loan production, while continuing to make progress on resolving the credits that were placed on nonperforming status over the past few quarters, which we continue to expect to result in immaterial losses. However, with the strength of our balance sheet, we're well positioned to capitalize on increased loan demand once borrowers have more confidence in the economic outlook and interest rates start to move lower. Our business development focus will remain on full banking relationships with high-quality clients that need the multiple products and services that we can provide in banking, wealth management, and other areas. These are what we consider to be our core clients, and they've historically resulted in highly profitable relationships and strong asset quality. Over the past several quarters, we've had good success in achieving our goal of reducing our loan-to-deposit ratio, and we'll continue to prioritize core deposit gathering to further increase our liquidity. We also expect the positive trends we saw in the first quarter in the areas of Wealth Management and Mortgage Banking to continue. We've recently added some new MLOs in the mortgage business, which should contribute to higher levels of loan production, particularly as we move into the seasonally stronger period for home buying. With the increase in our tangible book value per share and risk-based capital ratios in the first quarter, along with the improvement in the asset quality, we have the flexibility considering adding additional options for capital utilization, which we'll continue to discuss with the board as market conditions evolve. As always, we'll act in the best interest of shareholders. Given the strength of the balance sheet and the franchise we've built, we believe we're well positioned to continue adding attractive full banking relationships, growing our balance sheet over long term, increasing revenue, and realizing more positive operating leverage, which should result in further increases in our level of profitability and additional value being created for our shareholders. With that, we're happy to take your questions. So Norma, please open up the call. Thank you. As a reminder, to ask your question, you'll need to press star one one on your telephone. To withdraw your question, please press star one one again, and please wait for your name to be announced. Please stand by while we compile the Q&A roster. Our first question comes from the line of Brett Rabatin with Hovde Group. Your line is now open. Hey, good morning, everybody. Morning, Brett. Wanted to start just on the asset quality and understand a little bit better. You had the sale of the construction loan and the paydown of the largest NPL. What is the balance of that largest NPL at this point? And then maybe can you talk about the resolution of the remaining piece from here, additional sales of properties, how you think that might play out? Yeah, we've said, I think, pretty consistently, that this is a process that's going to take some time, and, you know, that's true with any loan in workout. And in this particular case, we've got one relationship with four loans and seven pieces of collateral that are cross-collateralized. So it's a particularly complicated process. You know, our goal is to get these properties sold and get repaid. And so the fact that one of them was sold in Q1 was definitely a positive. And then we've had another one already sold in Q2, and we've been paid down on that one. So we have, you know, five remaining properties, and they're in different stages of collection, and they're in different locations, so it's gonna, you know, have some differences in the timing. But we have already foreclosed in two of those remaining properties so far this month. And as we move through the year, there should be consistent progress with making these recoveries. As of quarter end, we had $38.5 million still outstanding on the relationship, with about $5.8 million of specific reserve, including the $2.3 million we put into a specific reserve on that relationship in Q1. So, you know, I think on the books, you could look at it as 38.5 minus 5.8, and then once we get title to these properties that we got in the foreclosure auction, then that'll be a decrease of $12 million or so and an increase in OREO, obviously, there. Okay. That's pretty helpful, Scott. So as I understand, just want to make sure I understand correctly, seven properties, you sold one in the first quarter, you've already sold one in the second quarter, and you've taken possession or you've repossessed two more for $12 million, and then the remaining would be two other properties. Is that right? Well, 7 - 2 - 2 is 3 more to go. Three more, okay. Technically, Brett, we didn't sell them. The borrower sold those, the two that were sold in Q1 and in the beginning of Q2, and that's good with us. I mean, if we want the loan repaid, we don't want to be in the property business, so. So the borrower is paying down the credit. Okay. And then what about recoveries on the one that you know ended up having to fully charge off in the fourth quarter? What does that process look like from the legal perspective on that? I know a judge has to basically take care of that at this point. That's right. It's in the bankruptcy process now. And, you know, I think the point we've tried to make on that is, you know, now we don't really control it as much, and because it's, you know, the bankruptcy trustee that was appointed by the bankruptcy judge. We are supporting the bankruptcy trustee with analytic work to help get to the bottom of, you know, where the money is and how we can collect on it. I would say, you know, we are anticipating some recovery. We don't have a strong sense yet of how much or when, but, you know, I think a reasonable expectation is we're gonna have some recovery over the next 12 months. I think, you know, the main point for us as shareholders is, you know, we've taken our lumps on that one, and there's not gonna be more bad news on it. It, you know, we've got the bad news, and hopefully we'll see some good news playing out here over the next 12 months or so. Okay. And then was just curious if you had the margin for December, and then just how much of the loan portfolio reprices this year and maybe an outlook, David or Julie on the margin from here? Well, David, you want to tackle that one? Yeah. As far as the repricing, we've got about 25% of the loan portfolio that reprices in the next 30 days. And then from a margin standpoint, you know, I assume you're asking about March and not December? Yes. Okay. Our March margin was a little bit lower. Oh, I'm sorry, March. Not March, not December, yeah. Yeah, yeah. Correct. Okay. Our March margin was a little bit lower. There can be some noise that comes through, you know, amortized loan fees and things of that nature. So it was about 2.24%, but if we look at it at more of a normalized basis, you know, we're thinking that number's about 2.31%. And then going forward, you know, we expect second quarter to be relatively in line with where we were in the first quarter, in that kind of low 2.30s type of range. Okay. And, David, you said 25% of the portfolio reprices. Are those variable rate loans that are repricing? And what rate are they repricing from? Yeah. So that's, that is variable, that's correct. As far as what rate they're repricing from, I'll have to get that for you. I don't have that in front of me. Okay. And then if I could sneak in one last one. If I understood correctly, this expense run rate is probably a good run rate from here, and you mentioned that the biggest variable was the compensation. You know, what about the other piece of the legal fees and all that might be elevated to, you know, any outlook overall on expenses from here? Yeah. Going forward, you know, the incentive compensation is certainly will be dynamic based on the financial performance of the company. And then we should see a little bit of relief due to the seasonality of payroll taxes that will start to come down in the second quarter and continue through the third and fourth quarter. As far as, you know, legal and workout fees, you know, a bit hard to predict at this point, but I don't think we expect those to be really at the same levels that we saw in the first quarter going forward. Just to give a little bit more transparency, Brett, on Q1. I think the total number in Q1 was $700,000 for kind of workout and special legal fees, that, that sort of thing. And like David said, you know, I don't think that goes to zero in Q2. But if you know, look at our underlying core expenses, I think it's typically much less than that, and hopefully will normalize here over the course of the year. We also had a $500,000 operating losses in Q1, which were related to wire fraud. And that's a very high number for us. That's not typical of what we see here. So those numbers are in our Q1 expenses that, again, I wouldn't really consider to be core expense. Okay. Appreciate all the color. Thank you. One moment for our next question. Our next question will come from the line of Woody Lay. Your line is now open with KBW. Hey, thanks for taking my question. Wanted to follow up on credit to start and just on the NPA bucket, trying to understand all the movements. So how large was the credit that moved into the NPA bucket in the first quarter, and any color you can give on that loan? Yeah, the size of that loan was a little bit under $2 million, and it is a C&I loan. Okay, that's helpful. Any trends to note just in criticized or classified assets in the quarter? No. I think we're seeing stable to improving trends in most of the credit metrics we look at. The only real exception to that is I would tell you that we're definitely increasing our watch efforts. So, you know, loans that we think could be under stress, the borrowers could be under stress if rates continue to higher rates or CRE loans that are maybe maturing. We're definitely, you know, paying a lot more attention to those these days, and they show up on the watch list. So, I don't necessarily view that as a credit indicator or as a concern. I think, you know, I hope those are signs of good credit administration and credit management here. But as I said, I mean, I think the headline number on the NPL side and the 56% reduction on the past due loans are both really positive trends for asset quality here. Yeah. Yeah, definitely. I guess last for me, shifting over to loan growth. I believe last quarter, we sort of talked about an expected loan growth rate in the mid-single digits. It sounds like you might be strategically pulling back a little bit. You know, how should we think about loan growth going forward? I don't know. It's just really hard to predict right now, especially, you know, month-to-month and quarter-to-quarter, and rates are up or rates are down and, and all that, right? But, given that context, you know, what we have said in the past and what we continue to think is, you know, in our strong growth markets that we have, and with the platform that we have and the people that we have, you know, producing loan growth in the mid-single digits, this year seems like a reasonable goal. Now, obviously, when you start down in the first quarter, that gets a little less likely. So, I mean, I would say, you know, if we saw flat in the second quarter, that would be great. You know, if you talk to our Regional Presidents and our Market Presidents, which we have, you know, they seem confident that we're gonna see some loan growth here this quarter and this year on a net basis. So, you know, I think for modeling purposes, given a lot of uncertainty, you know, flat here for the next few months, and then growth over the course of the latter half of the year, depending on what happens in the economy, makes sense. You know, one of the things we've been looking at internally is, you know, we're seeing some really aggressive pricing now coming out of the community banks and the credit unions in our markets on certain types of loans. And those are particularly in the case of owner-occupied real estate and in C&I loans. You know, we're just not going to play that game. We have encouraged our people to stay disciplined on pricing and structure and not chase rates. You know, on the C&I area in particular, it's frustrating because, you know, we'll get a client, a prospect that wants to move here and bring their deposits and whatnot, and then, you know, wherever they are, gets really aggressive in terms of retaining them. And so, you know, these are just the challenges that our frontline folks are dealing with these days in the market. But I think that stuff sorts itself out over time, and, you know, we've seen some nice growth really across the growth opportunities across the different loan types here. I think, you know, you're gonna see loan growth across the different loan types over the course of the year as things stabilize. That's really helpful details. Thanks for taking my questions. Yep. Thank you. One moment for our next question, please. Our next question comes from the line of Adam Butler with Piper Sandler. Your line is now open. Good morning, everyone. This is Adam on for Matthew Clark. If I could just start on the deposit side. Looks like there was some remix into interest bearing during the quarter with NIBs down at a slightly faster pace than last quarter. I was just curious to get your updated expectations on if you expect that will slow going into the second quarter or just kind of how you're seeing deposit flows move around right now. Thanks. Yeah, thanks for the question, Adam. We, again, you know, hard to predict. We were thinking that, our DDA shift into interest-bearing accounts had really stabilized in Q4 because we saw it actually grow. The DDAs were growing. And then we see a, you know, $48 million decline in those DDAs in Q1. And you have, you know, like, obviously very disappointing trend. So we did a deep dive on that, and what we found is about 40% of that decrease are just kind of operating account fluctuations. So, people, you know, using their money and at quarter end, it was, you know, $20 million lower than it started. And then about 40% was people shifting out into interest-bearing accounts. And then the remaining 20% was people that had DDAs related to construction projects that are funded here. And, you know, the cash from a borrower in a construction project goes in before our loan does, so they're using those funds to, you know, pay their equity, essentially, these construction projects. So that was about 20% of it. So that's kind of the mix. So hopefully, you know, as we go forward through the year, we're going to see a lot less of that. Maybe the fluctuations are positive other quarters instead of negative and whatnot. So that would be kind of the general outlook. Now, having said that, historically, we've seen deposit declines in Q2 because we have clients making tax payments. And so, you know, that's gonna be a headwind for Q2, but that's a normal thing here. And underlying, you know, hopefully, we continue to grow deposits, and some of those are DDAs, and we can retain the DDA mix that we have today. Okay. Thank you. Thank you for that. Thank you for the clarification there. If I could just switch over to your NII outlook. If loans trend flat over the next quarter, is it fair to assume that NII stays relatively flat or maybe drops in the second quarter, and then beyond there, with your growth outlook, maybe starts to step up again? Yeah. David and his team do a really granular look at that, bottom up, and it's largely with a flat interest rate outlook. We originally had started the year thinking, you know, maybe 25 basis points decline mid-year and 25 basis points later in the year, and we've now redone that with just one decline rate cut late in the year. But David, do you want to walk through how we expect that NIM to play out in the coming months? Yeah. I think your comments are fair. You know, the two components that we need is, you know, we need to continue to see loan production at these higher rates than our average loan yields, which are in the mid-fives, to help churn that loan portfolio. Obviously, the volume of loan production we had in the first quarter really wasn't enough, frankly, to have a material impact there. So we need to see that continue to churn, and then certainly stabilization of our DDAs is a big component of really stabilizing our total average cost of deposits. And we've seen as far as the pricing pressures on existing accounts, it feels like that has certainly declined, but the mix shift has been unfavorable for us from a funding standpoint. You know, certainly need to see that stabilization of the DDAs, which, you know, those two dynamics will give us the ability to see NIM expansion in the second half of the year, we'll call it. Okay, that makes sense. Thanks for the color there. And then just one last one for me. It was good to see the pickup in mortgage production during the quarter. And I think, as you alluded to in the presentation, it was attributable potentially to the originators that were hired this year. How much of that do you think was attributable to them and the original team? And do you think that that level is sustainable? I think it was $1.2 million this quarter. $1.3 million this quarter. Do you think that's sustainable, throughout the year or will go up? Sure. What's going to happen with the 10-year Treasury, Adam? Good question. Well, to give a little more serious answer, we've hired, I think seven or eight new MLOs since late last year, and there are a total of about 25 or so MLOs that are active producers. So, that's a pretty significant increase. You know, maybe a third of the MLO force is new over the last 90 days. And actually, we've been pleasantly surprised at their productivity. They, a lot of times, you know, take three months or six months to kind of build a pipeline and get it going, and we're actually seeing them producing some nice results already in Q1 and going into Q2. The real production in Q2, the improved earnings in Q1, I mean, came from a combination of volume and rate. So we saw a nice improvement in the gain on sale, and we saw a nice increase in volume. You know, I was looking back at, we did a monthly mortgage department review this morning, and I was looking back over the last 12 months, you know, there were many months last year where we were losing $250,000 in the mortgage operation contribution. And we made $250,000 in March, and, you know, that's just, I mean, obviously, $6 million swing annualized is a very big number for us. So it is really great to see. You know, if we see rate stability, you know, it seems like we could have a better year this year, as the year progresses. You know, last year, obviously, was record low production in the industry for like, 30 years. And so we're hopeful that that improves as we go through this year, and now we have some more MLOs to support that. Julie, I should have had you answer that question. No, no, you did great. Because Julie looks over our mortgage area, and is much closer to it than I am. That's okay, great. I'll share. Did I miss any of the key points there? I'm sorry. No. That's my bad. Well, it's great to hear, and I hope the momentum within the team continues, and thanks for taking my questions. Yeah. Thank you. One moment for our next question, please. Our next question comes from the line of Ross Haberman with RLH Investments. Your line is now open. Morning, Scott. How are you guys? Most of my questions have been answered. Thank you. I just want to go back. I think you said $700,000 in this quarter related was legal. Was that, again, was that mostly related to the nonperformers, and hopefully that'll begin to moderate over the next couple quarters as these nonperformers are resolved? Would that be a good assumption? That's what I said, and David's nodding his head. Okay. I think that's materially correct, yes. And the $500,000 you lost, are you insured? Does insurance cover any of that? I think you said it was a check, was it check kiting or something? Fraud or something. No, it's wire fraud, and this is the big industry issue right now, and we spend a lot of time and effort on training people and managing that, and we put additional controls in place. And I can't tell you how many we catch, because it's a lot. But you know, we did have a couple that got by us this quarter and, you know, go into your expense numbers in the quarter. Gives me no, not happy about it, right? And not happy to talk about it, but I think, you know, in terms of understanding what our core expenses are, that was part of Q1. But what? So that would fall under your deductible, so you don't get reimbursed for that type of stuff? Because it would fall under your deductible or something. Okay. That's correct. How are the new branches coming? You had that operation, I believe, in Arizona and in Montana. How are they coming in terms of generating business as well as are they generating any sort of deposit level that you can talk about? Yeah. So, you know, the process of opening an office de novo is a project. And, you know, you can't get a branch approved unless you have a location, you have the people, and you get the regulatory approval on it. So, you know, in Bozeman, for example, we hired a team there, and we had an LPO that was producing loans. But then, you know, once you have the team in place, you have your new office built out, which takes, you know, like, a year in a growth market like that, then you can convert it into a full-service branch, or profit center, as we describe them, and then they can start taking deposits. When did that open as a full service? Fall. Was it six months ago now, something like that? We think that that's going to be a really nice success story. We've got a great team there. They've identified lots of good opportunities. They've got a nice book that they're building, a business. We held a client event, a prospect event, up there, February, I want to say. That was very well attended. There's just a lot of interest, I think, in that market and what we're doing because it's different. You know, there's no other First Western in Bozeman. So I think that that's going to be fine. Arizona, you know, we've been rebuilding the teams there since you asked about that, and I think that that's going to be on a better trajectory. Some of the other new offices, you know, I think our Western Wyoming offices that came with the acquisition a couple of years ago, are really seeing a lot of traction and making nice progress. Our Vail office, which is our most recent resort market, that's probably, what? Five years old now, something like that, Julie? Yeah. And really is getting some great traction in the Vail Valley, and again, very differentiated from anything else in that market. So, these things take time, Ross, and they take investment, and they take persistence, but they're showing nice results, and I think they'll be, you know, great long-term producers for the shareholders here. And just one follow-up question about the nonperformers. You think you'll be able to get. I guess there was the one large nonperformer with a lot of different parts to it. I think you said you've gotten control of four of the parts. There's three left, I think. Will you be able to resolve the other three, you think, in calendar 2024? I think that's a reasonable expectation. Okay. Thanks a lot. I appreciate it. Have a good weekend. Yeah. Thanks, Ross. Thank you. I'm currently showing no further questions at this time. I'd like to hand the conference back over to management for closing remarks. Great. Thank you, Norma. Well, we've consistently said this year that this was going to be difficult to predict, given the economic uncertainty. But we have seen a number of positive trends, as expected in Q1. You know, net interest income and NIM declines appear to be slowing. Fee income has definitely recovered nicely. Operating expenses, particularly if adjusted for some of these elevated workout and other Q1 expenses that we talked about, that we hope are nonrecurring. Expenses are well controlled. Our AUM exceeded $7 billion, and fees were up. Our asset quality is improving. NPAs are down as we work through our one remaining large workout credit, as we've talked about. With the improved loan-to-deposit ratio and continued core deposit growth, we should be able to get the balance sheet back on track for at least modest growth this year. These trends, together with our many internal initiatives we have underway, will drive higher earnings and improved efficiency in the quarters to come. Thanks, everybody, for dialing in, and we sure appreciate your interest in First Western. Have a great day. This concludes today's conference call. Thank you for your participation.