ConnectOne Bancorp - Earnings Call - Q3 2025

Executive Summary

• Q3 2025 operating EPS was $0.70, a modest beat vs S&P Global consensus of $0.67; reported diluted EPS was $0.78, aided by one-time items (ERTC $6.6M and pension curtailment gain $3.5M, partially offset by ~$2.9M merger costs and $1.0M restructuring). EPS consensus/actual from S&P Global: $0.67 vs $0.70* (Values retrieved from S&P Global).
• Revenue beat: S&P Global consensus $110.7M vs actual $115.9M*; topline benefitted from higher net interest income on a wider NIM and noninterest income tailwinds, though recurring noninterest income run-rate is ~ $7M per quarter per CFO.
• NIM widened 5 bps q/q to 3.11% with “spot” NIM >3.20% at quarter-end; CFO guided Q4 NIM to ~3.25%+ and sees 2026 exit NIM approaching 3.40–3.50, as sub-debt redemption and lower average cash lift margins.
• Credit remained solid: NPAs 0.28% of assets, annualized NCOs 0.18%, ACL/loans 1.38%; capital strong with TCE ratio 8.36% and TBV/share $22.85; dividend maintained at $0.18 payable Dec 1, 2025.

What Went Well and What Went Wrong

What Went Well

• Margin expansion and core spread momentum: NIM rose to 3.11% from 3.06% q/q; “spot” NIM >3.20% and CFO expects ~3.25%+ in Q4 as excess cash declines and high-cost sub-debt was redeemed Sept 15 (“without those two items… Q3 NIM would have been in excess of 3.50%”).
• Integration and growth: First full quarter post-merger operating “seamlessly” with healthy deposit/loan pipelines; CEO: “With our first full quarter post-merger, we’re operating seamlessly as one organization… our net interest margin… profitability ratios [improved]”.
• Noninterest income building blocks: Q3 included ERTC and pension gain, but CFO reiterated recurring noninterest income ~ $7M/quarter and highlighted SBA/BoeFly ramp: “We expect SBA to add significantly to our noninterest income in 2026”.

What Went Wrong

• Quality of beat partly nonrecurring: Q3 noninterest income of $19.4M included $6.6M ERTC and $3.5M pension curtailment gain; also incurred $2.9M merger expenses and $1.0M restructuring charge.
• Loan growth tempered by payoffs: Management noted healthy originations (>$465M this quarter), but payoffs muted net growth; expects average loans to rise “>2%” q/q in Q4.
• Expense normalization still ahead: Operating noninterest expense run-rate guided to $55–56M for Q4 and $56–57M in 1H26, reflecting post-merger scale and amortization of core deposit intangibles.

Transcript

Operator (participant)

Thank you and welcome to the ConnectOne Bancorp, Inc. third quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Siya Vansia, our Chief Brand and Innovation Officer. Ma'am, please go ahead.

Siya Vansia (Chief Brand and Innovation Officer)

Good morning and welcome to today's conference call to review ConnectOne's results for the third quarter of 2025 and to update you on recent developments. On today's conference call will be Frank Sorrentino, Chairman and Chief Executive Officer, and Bill Burns, Senior Executive Vice President and Chief Financial Officer. I'd also like to caution you that we may make forward-looking statements during today's conference call that are subject to risks and uncertainties.

Factors that may cause actual results to differ materially from expectations are detailed in our SEC filings. The forward-looking statements included in this conference call are only made as of the date of this call. The company is not obligated to publicly update or revise them. In addition, certain terms used in this call are non-GAAP financial measures, reconciliations of which are provided in the company's earnings release and accompanying tables or schedules which have been filed today on Form 8-K with the SEC and may also be accessed through the company's website. I will now turn the call over to Frank Sorrentino. Frank, please go ahead.

Frank Sorrentino (Chairman and CEO)

Thank you, Siya. Good morning everyone. Pleased to report that during the third quarter we continued to build upon our strategic objectives. Clear reflection, our team's focus, client dedication, and discipline. As a result, the integration of our merger is complete. Credit quality remains solid and our margin continues to expand, all while organically growing our balance sheet. Our systems merger, as we just talked about, systems merger integration, which took place only two weeks after the legal close, went exceptionally well. Driven by outstanding collaboration across our team, in our first full quarter post-merger, we're operating seamlessly. One organization, consolidated systems, strong cultural alignment, unified client-first mindset. We have since built meaningful momentum across our markets leading to accelerating performance metrics, seeing strong engagement, ongoing new client onboarding, healthy growth in loans and deposits.

This progress is especially evident on Long Island where we're leveraging our strategy to drive growth and strengthen our position. An attractive market we entered several years ago, the merger has accelerated our goal. Importantly, the positive financial aspects of the transaction are beginning to take hold and Bill will discuss a little bit more about that. Operationally, ConnectOne's ability to attract and retain deposits remains a strength. During the third quarter, our core deposits continued to grow across both established and newly acquired client relationships. Loan originations this quarter remained healthy with over $465 million in new funding. Our team is energized to leverage our expertise and attract growth opportunities across our expanded markets.

Looking ahead, we're well positioned for the balance of 2025 and into 2026 with a healthy and diversified pipeline across C&I, CRE, construction, and SBA lending, demonstrating the strength and the reach of our franchise. Credit remains strong, supported by prudent and consistent underwriting standards and portfolio oversight. Our non-performing assets were just 0.28% at the end of the quarter, annualized net charge-offs remained below 0.25%, and 30-day delinquencies were just 0.08% of total loans. Additionally, ConnectOne's capital and tangible book value grew meaningfully. Overall, our third quarter operating performance clearly demonstrates the strength and the potential of this organization and with that overview, I'll turn it over to Bill to walk through some of the performance.

Bill Burns (SVP and CFO)

All right, thank you, Frank. Good morning to everyone on the call. It was a great quarter and our outlook remains very positive with strong performance anticipated across all of our operations. As Frank mentioned, the merger, which was finalized five months ago on June 1st, is now fully integrated and that was due to a swift, seamless brand and back office systems conversion completed within the very first month. That rapid integration has allowed performance metrics to excel, with an acceleration of improvements expected in the fourth quarter and into 2026. Operating performance metrics already show significant year-over-year improvement in the current quarter. Operating return on assets increased by over 30 basis points to 1.05%, while PPNR as a percentage of assets rose by approximately 50 basis points over the past year to 1.6%.

Our earnings performance is being driven by the merger and a widening net interest margin, which grew to 3.11% from 3.06% in the sequential quarter and from 2.67% a year ago, and the spot margin at quarter end was already higher than 3.20%. We expect a fourth quarter margin at 3.25% or even above. The current quarter's margin at 3.11% reflected two temporary factors. One was the $75 million of high-rate subordinated debt that was outstanding but redeemed on September 15th. We also had higher than typical average cash balances due to the large deposit growth that we've had, which exceeded $600 million. We anticipate average cash balances to be below $400 million in quarter four as that cash rotates into loan fundings. Without those two items, which worked to compress the reported margin, the third quarter NIM would have been in excess of 3.50%.

In terms of the balance sheet, we continue to observe robust deposit growth following exceptional organic growth in the second quarter. On a sequential basis, our client deposit growth was approximately 4% annualized, and that was building on the second quarter's annualized growth of 17%. Annualized sequential loan growth for the quarter matched deposit growth, and that maintained our loan to deposit ratio below 100%. The loan pipeline is strong and we expect loan growth to accelerate in the fourth quarter, with average loans increasing by more than 2%, not annualized, 2% from quarter to quarter versus the sequential third quarter. Please keep in mind for your model that average cash is likely to decrease and that will slow the increase in total interest-earning assets. In 2026 we could easily see loan growth in the 5%+ range. That'll be dependent of course on the economy and loan demand.

Now, adding to the strong performance of ConnectOne this quarter were two non-recurring items that boosted pre-tax income by more than $10 million. Let me explain those to you. First was $6.6 million of cash received this quarter, the employee retention tax credit that was conceived during the pandemic. Now, initially it was for companies with less than 100 employees and that was for the years 2019 and 2020. That employee threshold was raised for 2021 to include businesses up to 500 employees. That allowed ConnectOne to qualify. At the time, ConnectOne had 450 employees collecting our efficient operating model, given our asset size. Now today our staff size has grown to about 750 employees due to organic growth and acquisitions, yet we remain a peer-leading efficient organization, about $19 million in assets per employee.

Now, the second one-time benefit recognized during the quarter, the $3.5 million pension curtailment gain relating to freezing of First of Long Island Bank's pension plan effective September 30th with the shifting of those benefit values to our 401(k) match program. Realignment of the benefit plans will result in merger net cost savings of $1 million annually, and that's in addition to this one-time $3.5 million present value benefit recorded this quarter. Now, in terms of noninterest income, very, very strong quarter because of those non-recurring items that exceeded $19 million recurring level. Noninterest income right now remains at about $7 million per quarter. We expect growth, especially in gains on sales. We continue to build out SBA both LI and residential mortgage. We expect SBA to add significantly to our noninterest income in 2026.

Keep in mind, with the government shutdown, we could see a backlog building in the fourth quarter. That will be after the government reopens. Operating expenses net of merger and restructuring charges were $55.8 million, and our recurring run rate guidance remains approximately $55 million-$56 million for the fourth quarter and $56 million-$57 million per quarter during the first half of 2026. The latter part of 2026 could drift just slightly higher. I'll keep you updated on our targets as we move forward. These amounts reflect normal expense growth net of additional merger savings which have not yet been fully realized. Turning to taxes, our tax expense line for the full year has been a little tricky. That reflected the merger and we had a second quarter charge related to intercompany dividends. I also want to mention that our actual marginal tax rate has trended upwards.

Our growth and geographic reach have impacted our traditional tax strategies. Now for 2026, we plan to utilize new strategies. Those are expected to result in an effective tax rate in the range of 28%. Maybe a little higher, maybe. Let me turn now to credit. As Frank mentioned, I'm going to repeat some of these numbers. Credit quality remains sound by all measures. Non-performing asset ratio is at historical lows at 0.28%. Bar drops for the quarter were just 18 basis points. Delinquencies more than 30 days were only 0.08% of total loans. Very, very low. In terms of the CRE concentration, it continued its downward trend, falling to 434 at September 30th. Our capital ratios continue to strengthen. Holding company tangible common equity ratio rose pretty significantly to 8.4%. While our goal is to reach 9%, there's no immediate need to achieve this. Additionally, tangible book value growth has resumed its upward trend. The 5% increase we've calculated in tangible book value per share since the merger's completion and with a higher level of projected retained earnings, we expect to have enough room in 2026 for a common dividend increase and opportunistic share repurchase. That's it for my introductory remarks. Back to you, Frank.

Frank Sorrentino (Chairman and CEO)

Okay, thank you, Bill. Simply put, we built a premier commercial bank with the scale and talent to serve the largest and one of the best markets in the country. ConnectOne's franchise value is in its strongest position ever, driven by accelerating financial performance, prudent organic growth opportunities, a strong technological focus, and solid credit quality. Based on where our stock is trading today, we believe there's never been a more compelling time to invest in ConnectOne. As always, we appreciate your interest in ConnectOne Bancorp. Thanks again for joining us today. With that, I'd like to turn. It is over for your question, operator.

Operator (participant)

Thank you, ladies and gentlemen. We will now begin the question-and-answer session. Should you have a question, please press star followed by the number one on your telephone. You will hear a prompt that your hand has been raised. Should you wish to withdraw, please press star followed by the number one. If you're using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Our first question comes from the line of Daniel Tamayo from Raymond James. Sir, please go ahead.

Daniel Tamayo (VP)

Hey, thank you. Good morning, Frank. Good morning, Bill. Maybe starting on your profitability target. I think last quarter you talked about Frank hoping to hit 1.2% ROA and 15% ROTCE in 2026. Just interested in your current thoughts around profitability targets for next year.

Bill Burns (SVP and CFO)

I think those targets are in line, still in line where said before. Easily see $120 by the second quarter, and my model at least is showing us getting close to $130 by the end.

Daniel Tamayo (VP)

Okay, great, thanks for that. Then follow up, kind of unrelated, but we saw yesterday the announced end of quantitative tightening. I'm just curious, maybe you guys' thoughts on how that could impact deposit growth and/or pricing in your markets.

Frank Sorrentino (Chairman and CEO)

I think it will bode well for us going forward. Certainly, it appears the Fed believes the economy is going to continue to be somewhat robust and that more liquidity is needed in the marketplace, and that liquidity generally turns into deposits at banks. I think across the spectrum of banks you'll see deposits continue to grow, which I think will be good. It'll reduce some of the competitive pressures out there. I think everyone has seen over the last quarter or two, while short-term rates have gone down, there's been competition for deposits. A steepening yield curve, more liquidity, and a robust economy that's pretty stable, I think certainly for ConnectOne bodes well. I think it bodes well for our industry.

Bill Burns (SVP and CFO)

I agree with what Frank said. Also, the margin continues to expand for all the reasons we talked about before. It's still going to be we don't know exactly how many Fed cuts at the end of next year, but there are going to be a few. Our loans are repricing faster. Even in a down rate environment, our loans are repricing upward. Still looking at margins, I'll be bold enough to say approaching in the 340-350 range by the end of next year.

Daniel Tamayo (VP)

That's great. Let's hope all that works out in your favor. It seems like it's trending, certainly positively. Anyway, appreciate all that color, guys, and for taking my question.

Bill Burns (SVP and CFO)

Great, thanks.

Frank Sorrentino (Chairman and CEO)

Thanks, Daniel.

Operator (participant)

Thank you. Our next question comes from the line of Tim Switzer from KBW. Please go ahead.

Tim Switzer (VP of Equity Research)

Hey, good morning. Hope you guys are doing well.

Bill Burns (SVP and CFO)

Hi, Tim.

Frank Sorrentino (Chairman and CEO)

Hey, Tim. Good morning.

Tim Switzer (VP of Equity Research)

The first question I have is now that you guys have closed the merger full quarter in, how do you guys think about the capital allocation and deployment going further? Frank, you mentioned you think your stock is a value. You know, are share repurchases on the table here and would you like to get some color on that?

Frank Sorrentino (Chairman and CEO)

From my perspective, I know Bill made some comments relative to our ability to build capital. Capital is building quite quickly at the company, as you know, from a variety of areas including profitable growth that we have. I do think we'll have a lot of flexibility in 2026 to make some determinations as to what we should do with that capital. Obviously, if we see higher growth rates and we're opportunistic to engage in organic growth at the higher end of the spectrum, that'll leave a little bit less for other opportunities. Overall, I think we can pretty much do anything we want to do. Bill, I know you had some strong.

Bill Burns (SVP and CFO)

Yeah, no, I agree with that. You know, our growth is going to be prudent and disciplined in terms of spreads, like to see the capital ratios trend upwards. I think I said on the call, even with all that, because of the low dividend payout ratio we have today and the high level of earnings, we'll have room for opportunistic share repurchases.

Tim Switzer (VP of Equity Research)

Okay, great, that's good to hear. I was also looking to get an update on BoeFly and maybe the growth outlook there. Putting aside the government shutdown, the impact of SBA, it's more near. I'd love to get an update on that and maybe some color on if the recent changes to rules governing kind of like the smaller $1 million or less loans in SBA, in terms of underwriting and the new fees that came back in over the summer.

Frank Sorrentino (Chairman and CEO)

We'll start with BoeFly. Bill will talk a little bit more about the specifics of the various programs. BoeFly, since inception here at ConnectOne, has continued its upward trend. We now represent some over 250 national brand franchise brands across the nation, which is an all-time high. When we purchased the company, I think they represented 60 or something like that. This trajectory upward, and we put a lot of effort into being the predominant company that invalidates franchisee applications in that space. That's led to this growth in that portfolio. We've really focused over the last year or so to drive the opportunities that come out of that business to our growing SBA platform. We're really beginning to start to see, from a financial perspective, the fruits of all of that labor. You will continue to see that in the future by the SBA revenue line continuing to expand. We're very happy about where we are, we're very happy about where we're headed with that, and we're very happy about how it's translating into quality revenue here at ConnectOne. Bill, maybe you want to add a little bit on that.

Bill Burns (SVP and CFO)

Just to repeat a little bit of what you said in that we've spent the past couple years really building and perfecting the platform, which led to a significant increase in the number of franchisors participating, and we're now starting to translate that into more income through SBA sales. That already was reflected this quarter, and the increase is expected to accelerate. There's a little bit more of a time when it comes to franchise loans. There's a little bit more of a period that it takes from perception to gain. The pipeline is building heavily for next year, and I'm very optimistic we'll have a lot of pain on sale there. In the meantime, we've been building our boots on the ground. SBA lending, everything is working in our favor there. We started off from zero, and it's going to be a big portion of our noninterest income going forward.

Tim Switzer (VP of Equity Research)

Great, I appreciate all that color there. Thank you for taking the questions.

Operator (participant)

Thank you. Our next question comes from the line of Matt Breese from Stephens Inc. Please go ahead.

Matt Breese (Managing Director and Research Analys)

Hey, good morning.

Bill Burns (SVP and CFO)

Morning Matt.

Matt Breese (Managing Director and Research Analys)

The first one for me. You know, it's really nice to see those noninterest bearing deposits up 3.7% quarter-to-quarter, and then, you know, CDs down 2.8%. Just talk to us about what's going on. A few of the wins there are the acquisition related, meaning is the FLIB deal and the brand starting to bear some fruit. Looking ahead, can we see deposit growth match or key loan growth for next year, maintaining that sub 100% loan to deposit ratio?

Frank Sorrentino (Chairman and CEO)

Yeah, I'll take your questions in reverse order. The goal would be to, you know, match the deposits with the loans and that actually answers the first part of your question. There's been a focus here at ConnectOne over the last couple of years to really redefine and make certain that the business we're in is to be a relationship bank that takes in deposits and makes loans, and we like taking in deposits from the same folks that we make loans to. We've had an effort ongoing here through all of our lending team to really focus on making sure we're going after the types of clients that bring us substantial depository relationships. Part of the slowdown in the overall growth is weeding out clients who maybe promised us depository relationships and never delivered or just folks that wound up here with a transaction.

We really don't want to be just a transaction-oriented bank. I think, you know, with that focus, and that focus continues going forward, I think actually the merger that we just completed, the group of clients that we onboarded there actually may have had sort of a reverse issue where they were very deposit rich and didn't take advantage of all the lending opportunities, those clients. I think, you know, rounding out the folks that we're getting in front of on Long Island, this continued focus on high quality relationship type clients is really what's driving the growth, the profitable and, as you know, Bill said, spread dependent business that we have. It's allowing us to bring on high quality type clients that should ensure that we keep a loan to deposit ratio in and around the range.

Matt Breese (Managing Director and Research Analys)

Great. Bill, maybe you could help me out with a couple things. What proportion of loans are now pure floating rate? This quarter, what did you see for roll on versus roll off dynamics on fixed rate or adjustable rate loans? I guess where I'm going with this, are you starting to see any spread compressions as some of your competitors have indicated?

Bill Burns (SVP and CFO)

First of all, to answer your first question, it's only about 15% are pure floating, so we're in good shape there. In terms of the roll on and roll off of fixed versus floating, I'm not sure how much has changed the dynamics of the balance sheet. I know you usually ask about what rates loans are going on versus coming off. When you add drawdowns to it and pay downs, like in the high sixes going on, in the low sixes going off.

Matt Breese (Managing Director and Research Analys)

Great. Just two others for me. First one is just on the reserve. You have a 1.35% reserve to loan ratio. Historically, ConnectOne has been a. Lot lower, maybe 1-1.05. Credit remains solid. Over some period of time, should we expect that reserve to kind of trend back to where you were? You know, as kind of flip loans reprice? It just seems high relative to the credit quality.

Bill Burns (SVP and CFO)

Yeah, I think that yes, that's how it will work. Okay. It'll gravitate back towards one level or maybe a little bit higher. We'll see where the economy is and how the CECL works at the time.

Matt Breese (Managing Director and Research Analys)

All right. The last one is just. Bill, you had mentioned elevated cash. Cash could come down next quarter. What should we think of in terms of normalized cash to assets? That's all I had. Thank you.

Bill Burns (SVP and CFO)

For now, I would say $350 million-$400 million would be normalized. It could go lower than that. For this quarter coming up, that's what I would say. If you look at our loan growth on an average basis, you know, you're going to see pretty flat interest earning assets and that's fine by me. In terms of capital ratios, in terms of margin.

Operator (participant)

All right, thank you. Before I proceed with the next question, again, should you have a question, please press star followed by the number one on your telephone keypad. Our next question comes from the line of Feddie Strickland from Hovde. Sir, your line is open.

Feddie Strickland (Director)

Good morning. Just wanted to stick on the loan repricing opportunity piece there, Bill. Can you help us quantify just some of the amount of fixed rate loan repricing we could see over the next several quarters? Just trying to figure out the size of the opportunity there.

Bill Burns (SVP and CFO)

The opportunity is quite large. Probably have about $1 billion repricing in 2026 and another $1 billion in 2027.

Feddie Strickland (Director)

One other follow up on credit. You know, obviously good to see non-performing assets stable, net charge-offs step down a bit. Do we expect charge-offs kind of remain in the high teens to low 20s range just in terms of basis points, average loans, or does that step down? Just trying to get a sense for what we should consider.

Bill Burns (SVP and CFO)

Yeah, I mean it's hard to predict, but we've been pretty steady with it. I'm running my own model. That's what I would have going forward to the next four quarters.

Feddie Strickland (Director)

Got it. Perfect. That's all I had. Thanks for taking the questions.

Frank Sorrentino (Chairman and CEO)

Thank you, Feddie.

Operator (participant)

Thank you. Our last question comes from the line of Daniel Tamayo from Raymond James. Sir, go ahead.

Bill Burns (SVP and CFO)

One more.

Daniel Tamayo (VP)

Yeah, just a follow-up here for me.

Bill Burns (SVP and CFO)

Sure.

Daniel Tamayo (VP)

Maybe first, you can just remind us what your balances of rent regulated loans are at the end of the quarter, and then the follow-up to that, just curious if you could update us on your thoughts if we do get a Mamdani win next week in the mayoral election, what that means for the whole rent regulated kind of industry, in your opinion. Thanks.

Bill Burns (SVP and CFO)

All right, let me start with the numbers, and I think we're positioned well. The total aggregate exposure to majority owned rent regulated, $700 million, 60% of it or $400 million came from First of Long Island where we have a 20% mark against it. In my view, that's completely ring sense. The rest of the ConnectOne portfolio is about $275 million, less than 2.5% of our total loan portfolio. Terribly underwritten, no value add projects, continue to perform well, moderate, I would say not super significant stress in the portfolio. Frank, you want to comment on what's happening?

Frank Sorrentino (Chairman and CEO)

Sure. As you can well imagine, we get this question a lot, certainly being centered in the New York metro market. My answer has been fairly consistent. There are so many variables as to what will happen from today forward. Whether he wins, he doesn't win. Let's not forget the other alternative to Mamdani is Cuomo, who is the one who signed the actual 2019 rent regulation law. That's causing a lot of the consternation in the portfolio anyway. It's not like we're going from one side of the spectrum to the other. Rent regulated, or rather rent stabilized, is here to stay. It's a constant struggle within that marketplace relative to the expense base versus the revenue stream. On the positive side of the equation, we saw this year a 3% increase that came on the back of a 7% increase the year before.

It looks like for the next couple of years we're still going to have a rent regulated board that's fairly reasonable and is taking into account inflation and other costs that are being pushed through the system. There are those who would argue that potentially a Mamdani administration might actually be good for the rent regulated portfolio in that he's looking to work to reduce the expense side by reorganizing the tax base for real estate taxes and other potential solutions to allow landlords to be able to invest in the properties to get more units back on the market. As you know, there's some 50,000 rent stabilized units that are vacant today because of the change in the 2019 law. There are just too many variables to put your finger on. Here's what's going to happen.

All I know is this has been something that's been in existence for a very long time. It's ebbed and flowed and for the most part I'm pretty optimistic that one way or another people need places to live. I think there's going to be programs put in place to make certain that that product continues to be available to residents in New York City. It will change over time. How that change occurs, hard for me to say right now. We're pretty, we're not pretty, we're very comfortable with the loans that we underwrote. We were never part of the whole value add story to get rent stabilized tenants out and replace them with market tenants. We really don't have that risk on our balance sheet in those lending opportunities. I think over time it's just going to get figured out what to do with that product. We're comfortable with the operators that run the assets that we have, and we have very strong LTVs and debt service coverage ratios, properties that are in our portfolio. Of course, we're going to watch very, very closely what happens over time. I do think this is a very, very slow moving process. I don't think anything's going to happen with any immediacy in the short term.

Daniel Tamayo (VP)

That's terrific. Thanks for the data and all the color on that. Very helpful.

Operator (participant)

Thank you. There are no further questions at this time. I'd now like to turn the call back to the management for closing remarks.

Frank Sorrentino (Chairman and CEO)

Thank you everyone for joining us today and for some really great questions. We look forward to speaking with everyone during our year end and fourth quarter conference call. Everybody have a great day.

Operator (participant)

Thank you. You may now disconnect.