First Guaranty Bancshares, Inc. (FGBI) Earnings Call Transcript & Summary

Good afternoon, everyone. Welcome to First Guaranty Bancshares 2022 Annual Shareholders Meeting. This year started with excitement as we were named The Best Small Bank in the United States and Louisiana for the second year in a row. So we are really -- thank you. We're really excited about that. Our team is proud of this accomplishment. And we commit to continuous hard work because we know there's always room for improvement. I'm Desiree Simmons, and I'm the Chief Administrative Officer of First Guaranty Bank, and I have the honor of kicking off today's meeting. For the third year in a row, we are hosting a hybrid meeting. So some shareholders will join us virtually and then others, of course, in the room, but everyone will have the ability to hear and see the presentation. In addition, this year's meeting is being recorded. So we will have it recorded, we will have it edited and then we will have it put on -- that's perfect timing. But it is we will put it on the Investor Relations page for anyone who cannot be here today or cannot attend over the phone. So for those of you attending virtually, if you need to help at any time during this meeting, please call (813) 308-9980 and enter access code 675813. I suggest everyone take a moment and write this down, we will not revisit this number again. If you've already mailed in your proxy, there is no need to take any action at this time. However, if you are attending this session virtually, I encourage you to send it now. You may send your proxy to fax to First Guaranty Bank at (985) 345-0537 or e-mail a copy to [email protected]. We ask that you do so within the next 5 minutes. After that, they will not be counted. For those here in person, you will have the opportunity to submit your proxy later in the meeting if you have not done so already. Our standard disclosures regarding forward-looking statements are on Slides 5 and 6. At this time, I'd like to give the floor to Mr. Marshall Reynolds, our Chairman of the Board.

Good afternoon, ladies and gentlemen. I am Marshall Reynolds, Chairman of the Board. On behalf of the directors, officers and staff of First Guaranty Bank, I would like to welcome everyone here this afternoon to the 2022 Annual Shareholders Meeting of First Guaranty Bancshares, Inc. At this time, I would like to introduce Mr. Tony Berner, one of our First Guaranty Director, representing constitute, who will lead us in indication to begin our meeting today. Would you please stand.

Heavenly, father, we thank you for this day. We thank you for this opportunity to meet and share ideas and visions of what we, as a group, seek to accomplish. With your help and guidance, we know that anything is possible, make the tabs that we undertake today, be pleasing to you and may we serve you with grace and dignity or it is in your name that we pray. Amen.

Guys, I just have -- I'm going to be like the [indiscernible] said with the first -- with her 7 husbands. I won't keep you long. But this is -- this is a tremendous time in for Guaranty Bank's future. Like this young way said, we were named for the second year of the row with the best bank in America, the best bank in Louisiana. That's pretty heavy stuff, but most of you folks have been following our stock this January to very recently have seen a tremendous uptick in it. You said, "Well, why? Why? Well, why -- because you put 3 quarters on the rollout of very positive results, certainly, we were the darling to see that works. Also, we're being part of the [ roughly ] 2000 now, that generates quite a bit of volume or so, of 28 something 27 is something today, pretty, a pretty heavy start -- so what is First Guaranty Bank really worth? I was over and asked about 3 hours on the numbers night before last. I think really a fair price for First Guaranty Bank stock ought to be about $35 a share. That's before we get a couple of other things going on. But that's my look on the stock market, and we have to be excited for what we've seen happen because we were laying down there 8.5x [indiscernible] for a while. At this time, I'd like to introduce you to Alton Lewis, Vice Chairman of the Board, Chief Executive Officer and President of First Guaranty Bank, and the First Guaranty Bancshares. Mr. Lewis will conduct the meeting.

Thank you, Mr. Reynolds, and thank you for leading us through some very difficult times, so what seems to be a very good time to be here. So -- at this time, I have several people that I want to introduce to all of you, starting with Sam Lolan and Debbie Taylor, [indiscernible], who are with the firm Castaing, Hussey & Lolan and have been our external auditors for 20 years. Is that right? Thank you all for being with us today. Vanessa Drew, who is the Secretary of the Board of Directors. Thank you, Vanessa. Then the members and nominees of First Guaranty Bancshares Board of Directors. They are Marshall T. Reynolds, the Chairman of the Board of First Guaranty Bancshares Inc. First Guaranty Bank. He's also the Chairman of Champion Industries as well as Chairman of various other institutions. Mr. Reynolds been a Board member since 1993. William K. Hood, Mr. Hood. Mr. Hood served as Chairman of the Audit Committee, the Directors Loan Committee, the Compliance Review Committee and the Marketing Committee of the bank. He is President of Hood Automotive Group. He's the longest-serving director, having been on board since 1977. I didn't realize you were that old. Jack Rossi, who is not with us today. Mr. Rossi is a holding company Board member since February of 2018 and a bank board member since March of 2018. He is a CPA with over 40 years of public accounting experience. He currently as VP of Business Development at some Community Bank in West Virginia and Virginia, and he's on the Board of Trustees of the West Virginia Investment Management Board. He's the Chairman of the Charleston Area Alliance Board and the Treasurer and Chairman of the Charleston Regional Change of Commerce Board and the West Virginia University Business Economics Visiting Committee. Mr. Rossi is a very impressive individual. Edgar R. Smith, III. Ed, Mr. Smith was appointed to the company's Board of Directors in October of 2014 and has been a member of the bank's Board of Directors since February of 2007. Mr. Smith is Chairman and CEO of Smitty's Supply; Chairman and the President and CEO of Latch oil, Chairman of CAM2 International LLC, President of Big 4 Trucking and affiliates of Big 4 Trucking, Big 4 Investments, Jackson Energy and X-ray Systems, another impressive individual we have on our board. Me, I'm here. And -- that's all of us. Then on the bank's Board of Directors, we have Mr. Berner, who has previously led us in the Invocation. He's a consultant with Gold Star Food Group, Former President of Pon Food Corporation. Mr. Bernard joined the Board of Directors in May of 1997. Gloria Dykes the owner of Dykes Creek Farm and part owner of Dykes Feed & Fertilizer in Montpellier, Louisiana and Bluff Creek's Properties. Ms. Dykes was selected to the bank board in July of 2011. Dr. Philip Fincher, he's not with us today. He's a retired economic finance professor at Louisiana Tech University. He's a Board member of Clover and Electric Cooperative since 2004, Vice President of Electrical Cooperative Board since 2019 and the owner of CNB Ranch since 1969. Dr. Fincher was elected to the Board in March of 2008 and serves on the North Louisiana Advisory Board. Dr. Fincher, attained his doctor degree at the University of Mississippi. So in you shall need to know that so [indiscernible]. Okay. Robert, Gabriel, Bob is also not with us today. He's the President of Gabriel Building Supply Company of Ponchatoula and Amite. He was elected in August of 2007. And is a former Director of Ponchatoula Homestead Bank. Andrew Gasaway Jr., not with us today, the President of Gasaway, Gasaway Bankston Architects. He's the Secretary to the Board of Directors of First Guaranty Bank, and he's been on the board since 1978. Mr. Hood, previously introduced. Edwin L. Hoover, Jr., here he is. Mr. Hoover has been a Board member since 1994. He's the President of Encore Development Corporation. He has over 30 years of professional experience as a real estate investor and developer and business owner. His various real estate investments include warehousing, shopping centers and office buildings. I'm on this board, too. Bruce McAnally. Mr. McAnally joined the bank's Board of Directors in June of 2017 with the acquisition of Premier Synergy Bank, where he served as Chairman of the Board. Mr. McAnally is a registered pharmacist and independent pharmacy owner residing in Austin, Texas. He currently serves as Founder and Director of RxPreferred Benefits in Nashville, Tennessee and he's Director of Best Value Pharmacies in Fort Worth, Texas and was the founder of Paragon Healthcare in Dallas. Morgan Nalty, Morgan is not with us today. He is an investment banking executive and partner in the firm of Johnson Rice & Company in New Orleans. Mr. Nalty joined the Board in 2001. Jack Reynolds, there he is. Jack has been a member since January of 2018, he is a native of Huntington, West Virginia and currently serves on the Boards of Energy Services of America and the Harrah and Reynolds Corporation. Other business interest include Trifecta Productions, Pritchard Electric and ADJ Corporation. Marshall Reynolds, who's the Chairman, Nancy C. Ribas, Nancy's owner of Rivus Holdings LLC. She was elected to the Board's Board of Directors in July of 2011. Ms. Ribas is a former Director of the Bank of Greensburg. Jack Rossi, who has previously introduced. Richard W. Sitman, Dickie was elected to the Board of the bank in July of 2011 and is a former Director of the Bank of Greensburg. He serves on the Board of Directors of Dixie Electric Membership, is the Board President of Dixie Business Center and is on the Board of the Association of Louisiana Electric Co-ops. Ann Smith, who is not with us today. Ann has been a Board member since June of 2010. She is a member of the Southern University Board of Supervisors. She is the Southern University Chairman Emeritus, a former member of Louisiana Office of Student Financial Assistance Advisory Board, and she was on the tangible [indiscernible] school board. Ann is a retired educator, who served as a principal assistant principal, coach and teacher at Kentwood High, and her teams won the women's basketball Champ, state championship and the women's tracks, state championship. So she's quite a person and quite a coach. And she's currently a committee member of the Rhys Smith Fund. And then Edgar Smith, III, who was previously introduced. We also have, and I don't think any of them are here today, the North Louisiana Advisory Board, which is comprised of Dr. Philip Fincher, Thomas Dale Crump, the Jr.; John Davidson Gladney, a physician; Carrell “Gil” Dowies, III; and Britt Lamar Synco. Okay. For the meeting today. The designated proxies are Marshall T. Reynolds and Eric Dosch, who's sitting next to Marshall on the front row. The inspectors of election for today's meeting are Kristin Williams, Diane Lanier. I know I saw her come in. There she is, okay, Landa Domangue and Katherine Campbell. Thank you. Okay. Now the meeting begins. At the Inspectors of Elections table, which is right over here, right outside the door, there's a list of the shareholders of record as of the close of business on March 21, 2022, that's available for your review. It's also an affidavit showing the proof of notice of meeting and proxy statement and the form of the proxy which have been given to every stockholder of record as of March 21, 2022. You have the inspector's election of office there and also the Quorum certificate of inspectors of election. The inspectors of election have informed me that a quorum is present either by proxy or in person. This certificate is available for review at the Inspector of Elections table. There are 4 proposals on the ballot today that you're voting on. One is to elect the Board of Directors to serve until the next Annual Meeting of Shareholders and until their successors are duly elected and qualified. They are: William K. Hood, Alton B. Lewis, Marshall T. Reynolds, Jack Rossi and Edgar R. Smith, III; secondly, to approve an advisory nonbinding resolution regarding our executive compensation as described in the proxy statement; third, to approve the First Guaranty Bank equity bonus plan; and lastly, to transact such other business as may properly come before the meeting or any adjournment or postponement of the meeting. So since we have no other nominations in accordance with the holding company's bylaws, the nominations are closed. The polls are now open. If there's anyone who wishes to cast a ballot by proxy or ballot they can do so at this time, do we have anybody -- the inspectors of election will pick them up if you -- if we do. No. Okay. Has everyone had time to cast their ballot. [Voting]

I now declare the polls closed. Inspectors of election, would you please count the votes and return with the election results. Do I hear a motion to dispense with the reading of the minutes from the 2021 Annual Shareholders Meeting. Motion by Mr. Hoover, second by Mr. Hood. Make sure I stay on track. That's right. Okay. At this time, we're going to proceed with the presentation reflecting the performance of First Guaranty in the past year. And I get to say something besides reading this. We have had a tremendous year. Financially in every way, performance has been fantastic. And -- the numbers are very impressive. The earnings are very impressive. But what is most impressive to me and I have a hard time to stand here talking about this -- what's most impressive to me is the performance of our team and the result of that. Week before last, Kristin and I were in my office going through some loans or something. And this lady walks in the office. The door is open like it always is, she walks in and introduces herself and proceeds to tell us that she here originally, she moved to Hammond in 2000, and she has been a customer of First Guaranty Bank, but now she's going to move to Alaska. So she's been going through the process of transferring all of our accounts, everything in the world ties everything has got to be done. And she is basically crying because it's so frustrating; except First Guaranty Bank. And that gave me great proud about us, apologies to feel -- anyway. That's what's so important to us. That's what's important to us. It's what we do for our community, for our people, while we're making the money. While we're racking up the numbers that we're showing people that we care. And we are doing everything we can for First Guaranty Bank and our communities. And that's the thing about the best bank in the United States thing. That's not 1 person. That's not 1 branch. It's not 1 department. That is everybody in the bank working every day to do things right. So I tell you great, we're proud of that. Desiree, thank you so much.

That just goes to show you the kind of leader we're working for. I mean, to have that kind of leadership, you can't help but be successful and love what you do. So today's meeting, the presentation on the last year, we'll have a couple of our leadership come up and talk to you about the performance. What you're going to see on the visual is the black and white numbers but what you're going to hear from the people is the narrative behind the numbers, how we got to the numbers. So we're really excited to be able to tell you our story over the last year. So we're going to start off with Eric Dosch, our CFO, give the floor to you.

Thank you, Desiree. Good afternoon, everyone. As our CFO, I'm going to speak to specific improvements we made within accounting, finance and our treasury management departments to report directly to me and then comment on some of our key company-wide trends. During the last year, we have focused on improving our data information systems and tools to analyze our business in order to generate more profitability. The finance department has specifically increased the use of interest rate risk, liquidity and budgeting modeling. Finance has been assisting with the integration of a new customer relationship management system, named [ Marquee ], that will help us retain customer relationships and make them more profitable with targeted marketing. Both finance and accounting have implemented several robotic process automation tools to free up our staff's time to focus on more value-added functions, and this is occurring throughout our bank. We've identified many more opportunities for future enhancements particularly with the upgraded Horizon XC core that ultimately means that we can do more with our existing staff. Our treasury management staff has rolled out a new wire system that is more efficient than the old one and is scalable for future growth. And we have seen our wire volume double over the last 5 years, which really serves as a proxy for our customer activity and our growth. And these are just a few examples of operating efficiency and operating leverage in our bank that will help us grow and be more profitable. And some key company-wide trends have resulted from everyone's efforts to make our bank better every day. One of the things I'm most proud of with our company is we continue to invest in the training of our staff, and we are able to promote from within. First, Guaranty, we cover staff training for the graduate school of banking. Programs, a CPA license, a CFA designation and other advanced training. And you can see the results on the board and what ultimately happens. So as our quarterly earnings accretions that have built capital have accelerated during the last 3 years, from approximately $3 million a quarter to now over $5 million in a quarter. Our balance sheet efficiency has improved as demonstrated by the improved net interest margin, our return on assets and return on our shareholders' equity, and we still have room for improvement. We believe that our efforts are going to continue to keep making First Guaranty Bank better every day and result in a stronger growth and improved earnings over time. We're going to continue to keep this momentum going forward. Now I'll give the floor to Randy Vicknair, our Chief Lending Officer.

Thank you, Eric. So continuing on with our theme of change. I'll start with a major change for the lending team, which is the addition of our Mid East market and the team members in that market. This includes 2 new loan production offices and deposit production offices, which will be future branch locations, but more importantly, it includes 12 quality team members. This group of individuals possess a significant amount of lending and banking experience and include 2 mortgage team members, 3 loan operations and 7 commercial lending team members. They joined the bank with a somewhat built-in loan portfolio, where they've moved over $59.6 million at the end of the year, and have moved over an additional approximately $55 million in the first quarter. They now have a portfolio of about $120 million with over $100 million more in loans expected to close. The team was accretive to earnings as of January 31, 2022. Now my favorite change that we make when we have these mergers is the merger of ideas. Following each merger, we set up a meeting with the new team to have them explain how they process loans. And then we explain to them how we process loans, taking the best parts of each process and merging them so we have a better overall process for our customers and for the bank. One important thing that we learned about this during these discussions is that they like to be called the MidEast. We were calling them the Midwest, and they quickly corrected us and told us that, that was not the correct terminology. So that's why you have the MidEast today. The other major change we made from this process was the removal of balloons and utilization of a repricing structure to accomplish the same goal. Our credit team analyzed this, and they've estimated that, that will save us over $1 million a year in processing costs alone. An additional change we made is revising all of our lending goals. We added SBA and USDA lending goals which did not previously exist and helped to boost our USDA and SBA lending efforts. We reinforced our deposit goals to capture noninterest-bearing deposits, resulting in over $60 million in new noninterest-bearing deposits for 2021. We revised our mortgage team to assign specific goals as well as adding mortgage originators to each of our regions to increase production, and we are working on revising our process to make it even more efficient and compliant to the benefit of the customer and the bank. The last major goal change is the addition of a dedicated national lender to oversee our commercial lease and participation efforts. This person helped us grow the commercial lease portfolio and position the bank to sell participations as needed to manage concentration risk. As you've heard, there have been many improvements made on the lending side. None of these would be possible without the great people at our bank and their contributions to the team, which led to over 13% loan growth, 18% loan interest income growth and strong loan yields. As important as it is, as all of these items are to the bank, credit quality remains of the utmost importance, and we do not sacrifice it to achieve these results. I'll turn it over to Matt Wise, our Chief Credit Officer, to explain more about the improvements in our credit process.

Thank you, Randy. To follow up on Randy's comments concerning our success with our loan and lease portfolio, a couple of points, our commercial lease portfolio is diversified across 20 industries. Our hotel portfolio consists only of major flagged brands. For example, Hyatt, Holiday Inn, Hilton, Marriott and Best Western brands make up over 70% of our hotel portfolio. Of course, our most important resource is our personnel. They provide the knowledge and expertise to allow us to effectively identify and mitigate the risk within our loan portfolio. We have built out our staffing model to better meet our continued growth. We now have a more defined career paths for our credit personnel so that we can deepen our bench strength. We want to ensure we keep our experienced analysts over the long term by providing them with a clear long-term career path as part of our FGB team. As we grow, we must continue to provide our personnel with the tools to be successful. The credit department continues to leverage our Ncino underwriting platform to improve our underwriting skills and portfolio tracking. Ncino continues to provide updates and improvements that allow users to become more efficient. We have implemented a risk-based pricing platform that ensures our shareholders are properly compensated for our loan portfolio. We are implementing stress testing software to ensure we identify and mitigate risk within our portfolio. This software allows us to perform top-down macro stress testing using local, regional and national economic indicators. It also prepares us for CECL implementation in January 2023. As far as results, working with our lending team and our special assets teams, we've really focused on our 90-day plus loans, decreasing them from $13 million in fiscal year '20 to $954,000 at 3/31/2022. And now I will be followed by Evan Singer, the Chief of Mergers and Acquisitions and our special assets department and he's going to tell you a little bit about his team's accomplishments.

Good afternoon. So the strong numbers you see up here are the result of many small improvements compounding over years. And it's special assets, lending, credit, everyone working together for the same goal. We -- on a daily basis, we're going to continue to improve things, and efficiently move loans from performing to nonperforming to liquidation or foreclosure. We track all of our costs associated with this journey so that we know how much money we've spent. Using this simple strategy, we worked through over $40 million of bad loans over the last year with a minimal reliance on our allowance. To illustrate this, you'll see our allowance in nonperforming assets went up from 79% to 135% from 2020 to '22. Nonperforming assets to total assets cut in half from 1.25% to 0.62% with charge-offs in their standard range for the same time period. Our traditional pass-through ratio is at a historical low, but that's partially driven by our increase in loans. So we've measured our special assets progress by the Texas ratio, which is our nonperforming assets divided by our equity. And we feel this is a better measurement of our progress. The lower this ratio is, the better we're doing. We've cut this ratio in half from 2020 to 2022, ending at 5.99%. Since the first quarter of 2022, things have only improved. We've reduced our nonperforming assets by an additional $4 million. We've also put all of [indiscernible] under contract. So this will continue to get better as this year goes on and hopefully we'll end 2022 even stronger. Next, I'll introduce Mark Ducoing, Chief Deposit Officer.

Thank you, Evan. We continue to focus each day on actions to help improve our overall funding cost to support our growth and profitability. These actions really fall into 3 general categories or 3 general focuses. First, we really needed to increase the production of our noninterest-bearing deposits. Noninterest-bearing deposits drove the expansion of our margin, and we focus each day on internal cultural changes to place more emphasis on checking deposits and improvements to our deposit services products to support more checking account growth. Examples of this focus are low-cost deposit goals now established for our financial relationship managers, as mentioned by Randy as well as our branch teams and our investment into new online banking capabilities for both consumer and business customers through our Q2 online banking platform. We now have state-of-the-art online banking platform experiences for both consumer and business customers. The second focus was around decreasing our reliance on high cost certificates of deposit as our major funding source. Our associates now really understand the value of having a customer's full relationship, not just their high-priced CDs. We still maintain CD pricing that's within the top 50% in our markets, but we only offer premium rates to customers that have their primary relationship with First Guaranty Bank. It's also important to note that we still have over $200 million in high-cost 5-year CDs that are maturing in 2023 and 2024. This represents a strong cost savings to be recognized in the future. The third focus was around improving the profitability and efficiency of our public funds portfolio. Our public funds portfolio provides a very stable source of funding for our loan growth. But we work each day to improve the cost of funds and find new methods to manage our processes more efficiently. The use of bots and automated reporting is now in place to help us monitor our rate commitments and our pledging requirements. Additionally, we expanded our use of 100% FDIC-insured programs such as ICS, to allow these deposits to be moved into more high-yielding loans as opposed to securities to be held as collateral. This greatly increases the value of these deposits and allows us to do more lending in the markets in which we serve. As a result of these types of efforts each day, we achieved nearly $90 million in noninterest DDA growth over March of 2021, CDs are now down to 21.5% of total deposits compared to 40.8% in 2019 and over 50% of our public fund deposits can now be deployed into high-yielding loans, improving our overall margin. As we move forward into 2022 and beyond, we'll be working on several additional strategies to support profitable deposit growth. These include the introduction of new automated marketing programs, as mentioned by Eric, online deposit account opening and more expansion of our digital services. I'll now turn it back over to Desiree, who will review some of the new digital services we've employed and new ones that are still coming.

Thanks, Mark. So as mentioned, we partnered with Q2, who is a new online banking partner with us. We did that in September of '22. And that gave our customers an omni-channel experience. So it was an experience that whatever they saw on their computer within the online banking platform, that's what they saw on their mobile device. So once we partnered with Q2, that gave us the ability to really utilize some plug-and-play technologies to really speak to the younger generation who wants to be able to do more banking, more things on their phone. So within the Q2 environment, we can now have something called Card Swap. So what that is, that's one of those, I think, services that you don't know you need until you need it. So these days with the Netflix subscriptions and Spotify's, all these different streaming services, you have to have a profile associated with those, and you have to have a payment method tied to it. If you have a card or a checking account tied to that and maybe you close your checking account or you lose your debit card or your debit card expires. You have to remember to go to every single profile and update your payment method or your subscription would halt. This has happened to me a couple of times, but now within the First Guaranty Bank online environment, you can actually attach your profile to those streaming services to your online profile put your card information in 1x, and it changes that payment method to each of those subscription services for you. our bank does that. So that's not something that any normal average bank will offer to our customers. We have that now. We have a budgeting tool for our customers now, which is both a blessing and a curse, especially for me, when you go in and now you see how much you spend on food or shoes or whatever it might be, but that's beautiful to be able to see and to be able to assign categories to your expenses. We didn't have this before. We have Biller Direct. We have ClickSWITCH. So now when customers want to move their accounts from another financial institution, we can now do that online. We can take the paper method away, make things easier for the customers to switch. We have credit aware. That's where you can go into your online banking platform, and you can see your credit score, not only that, but then we can also tell you if you moved your credit cards from another institution to us, how much we can save you an interest. We can also offer you a consumer loan, and we can tell you how much you can save an interest on that as well. So these are things that within the Q2 platform, we are now able to seamlessly be able to turn on for these customers and then Auto Books. So that's something new that we just rolled out. Where is Mark? I'm looking for Mark. Like late last year, I think, for our micro and small business customers, to be able to use this to collect credit card payments, debit card payments from their customers and to be able to do invoicing. So it's a much cheaper alternative than some of the other bigger companies out there. So what we have coming, we have FGB Jr or Money Monsters is what we're calling it. This is for that younger demographic. It will be a mobile app where they can go in and they can track their tours and they can see how they're doing with their money, their parents can transfer money into their account once they do their tours. It's just a really fun way to engage that younger demographic early in the financial literacy and banking world. And then CRM and MCIF. As bankers, we love our acronyms. But these are simply just the marquee system that Eric talked about originally. Mark talked about just now, this is really going to allow us to take our data from the core and have it make is going to tell us a story. It's going to show us who our most profitable customers are. It's going to show us what the most profitable products are. We haven't been able to do that before. So our numbers have been good. Our growth has been great, and we're only looking to improve from this point on. And I cannot -- I have to say, again, we have great leadership. We have great Board members, but we have a great team. We have the opportunity to lead such magnificent people in the branches, behind the scenes, people in the room today are part of the success, people on the phone who can't be here today are part of the success. It's because of everyone that we can be so successful. So we're looking forward to continuing this. Alton, I give the floor back to you.

Okay. May we have a report from the inspectors of election Chairperson, Kristin Williams.

Good afternoon. All of the votes have been tallied. The 4 proposals presented today have all been elected by a majority of the votes. Short and sweet.

Thank you, Ms. Williams. Do I hear a motion to accept the report of the inspectors of election on the results of the election? Mr. Stephen; Ms. Ribas, second. I now ask for a motion to approve and ratify all actions of the Board of Directors' offices and personnel since the last annual meeting. Do I hear such a motion? Mr. Smith and Mr. McAnally, as a second. If there's no other business, can we get a motion to adjourn? Thank you. Thank you all for coming. It was a pleasure. The meeting has concluded. And let's have another very successful year, and we'll see you again in the year. Thank you Goodbye.