Good day, and welcome to the Northern Trust Corporation First Quarter 2026 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the call over to Jennifer Childe, Director of Investor Relations. Please go ahead.

Thank you, operator, and good morning, everyone. Welcome to Northern Trust Corporation's First Quarter 2026 Earnings Conference Call. Joining me on our call this morning is Michael O’Grady, our Chairman and CEO; Dave Fox, our Chief Financial Officer; John Landers, our Controller; and Steve Carroll and Trace Stegeman from our Investor Relations team. Our first quarter earnings press release and financial trends report are both available on our website at northerntrust.com. Also on our website, you will find our quarterly earnings review presentation, which we will use to guide today's conference call. This April 21 call is being webcast live on northerntrust.com. The only authorized rebroadcast of this call is the replay that will be made available on our website through May 21. Northern Trust disclaims any continuing accuracy of the information provided in this call after today. Please refer to our safe harbor statement regarding forward-looking statements in the back of the accompanying presentation, which will apply to our commentary on this call. [Operator Instructions] Thank you again for joining us today. Let me turn the call over to Mike O’Grady.

Thank you, Jennifer. Let me join in welcoming you to our first quarter 2026 earnings call. We're off to a strong start in 2026, reflecting our ability to capitalize on a constructive market and rate environment while continuing to advance our One Northern Trust strategic priorities. Against this backdrop, first quarter trust fees increased 11%, net interest income grew 15% and total revenue rose 14%, all on a year-over-year basis. While continuing to invest in key growth initiatives, we generated more than 700 basis points of positive operating leverage, driving our pretax margin up nearly 500 basis points to 32% and fueling EPS growth of 43%. Return on average common equity reached 17.4%, which is at the higher end of our new medium-term target range, and we returned $510 million to shareholders, representing a total payout ratio of 100%. This included $359 million in share repurchases in the first quarter, contributing to a 5% reduction in share count as compared to the previous year. These results confirm that our One Northern Trust strategy is driving steady improvement in organic growth, consistent efficiency gains and resiliency in a volatile environment. AI is increasingly embedded in how we operate, enabling our teams to deliver more value with greater consistency and speed. Moving forward, we are accelerating this deployment in ways that will further advance our strategy and financial objectives. We're applying AI not only to drive incremental efficiency, but also to scale knowledge and expertise while maintaining the resilience, governance and client confidence that define our franchise. Our AI strategy is anchored in 3 outcomes: hyper-personalization, AI-generated alpha and infinite scalability. Together, these outcomes focus investment where it matters the most, enhancing the client experience, improving decision quality and increasing operating leverage. Hyper-personalization allows us to move toward highly contextual tailored engagement.…

Thanks, Mike. Let me join Jennifer and Mike in welcoming you to our first quarter 2026 earnings call. Let's discuss the financial results of the quarter, starting on Page 4. This morning, we reported first quarter net income of $526 million, earnings per share of $2.71 and our return on average common equity was 17.4%. We're off to a strong start to the year. We delivered our seventh consecutive quarter of positive organic growth, positive operating leverage and year-over-year improvement in our expense to trust fee ratio, all excluding notables. We also returned 100% of our earnings to shareholders. Relative to the prior year, currency movements favorably impacted our revenue growth by approximately 120 basis points and unfavorably impacted our expense growth by approximately 130 basis points. Relative to the prior period, currency movements were immaterial to both revenue and expense growth. Trust, investment and other servicing fees totaled $1.3 billion, an 11% increase compared to last year, driven by favorable markets, currency and new business generation. Other noninterest income was up 33% year-over-year, reflecting very strong FX trading and securities commission and trading income, which benefited from elevated macro volatility and uncertainty. Net interest income on an FTE basis was up 1% sequentially to $662 million, a new quarterly record and up 15% from a year ago. Our assets under custody and administration were down 1% sequentially, but up 10% compared to the prior year. Our assets under management were also down 1% sequentially and up 11% year-over-year. Overall, our credit quality remains very strong with all key credit metrics in line with historical standards. We recorded a $3 million reserve release in the first quarter, driven by improvements to the C&I portfolio, which was partially offset by a small number of nonperforming loans. Our effective tax rate was…

[Operator Instructions] We'll now take your first question coming from the line of Ebrahim Poonawala with Bank of America.

I guess maybe just 2 questions. One, just at the very top of the house, when we look at the pretax margin, the ROE performance this quarter, including in asset servicing, but for the entire business, given just -- there's a component of the macro being very strong for Northern, but there's also a self-help component that was kicked off about a couple of years ago. As we think about the sustainability of the ROE or the pretax margin, just maybe frame for us where you think there might be a little bit of cyclical tailwinds that's leading to over-earning on these relative to structural actions that have been taken over the last couple of years that may improve the resiliency relative to what we reported for 1Q?

Sure, Ebrahim, it's Mike. I'll take that. So our goal is to be a consistently high-performing company. And as you pointed out, that's something we put out there a few years ago, along with our One Northern Trust strategy. So we're very focused on executing on the 3 pillars of that strategy. We'll do that in different environments. And this past quarter was a very constructive environment. And so there's no question that we got a lift in our financial performance as a result of that. Equity levels are still relatively high. The level of volatility is attractive for our capital markets business, and there's a fair amount of liquidity, broadly speaking, in the market, which helps us with deposits, with money market funds as well. So very constructive on that front. That said, we also, to your point, think about it from a self-help perspective and try to just execute as well as possible, whether it's a really strong environment or not so strong. As far as the targets at the last earnings call, we put out medium-term targets. Some of those, as I mentioned, we've kind of largely hit or close to. That said, it was in this strong environment. So we're going to keep driving towards those medium-term targets.

Got it. And I guess maybe just switching to the Global Family Office. It's been a strong business over the last few years. Maybe talk to us around the win rate and the competitive landscape there and just the evolution of that client once they are on board, how do you think about just the growth runway and the opportunity to improve the ROI on the client once they're on board at Northern.

Sure. So the Global Family Office business is absolutely one of our strongest businesses. It's an area where truly we can deliver the entire firm. It's the best of all 3 of the businesses and working together for these largest families and their family offices. And as you pointed out, it's grown at a high rate. And once again, here in the first quarter, the organic growth rate for GFO was above the average for the businesses. And there's a number of dynamics that are allowing us to continue to grow at that high rate. One is certainly just the competitive position that we have and our offering on that front. But second is that it's still largely a U.S. domiciled or focused business. Right now, international is less than 15% of the client base and the revenues, and yet it's growing at a faster growth rate. And we do believe that this is something that is not only, I'll say, attractive offering globally, but also is something that is scalable globally. And then to the latter part of your question, you're absolutely right that often the relationship with the family office can start with a more limited breadth of offering. So it may focus primarily on custody and reporting to start, but then that's the opportunity to do much more with the family office when it comes to other opportunities, particularly along the lines of investment management. And you saw some of that in the first quarter as well. So we think it's a great business and continues to have a lot of upside.

Your next question will come from the line of Manan Gosalia with Morgan Stanley.

I wanted to start on the operating leverage side. I mean, 740 basis points of operating leverage this quarter, really strong. I think you reiterated the guide of generating over 100 basis points of operating leverage this year. Can you help us just think through how we should think about, I guess, expense growth this year? Are there any investments that were maybe got pushed out? Any timing differences or anything else we should be considering here?

Our expense growth methodology hasn't really changed. If you think a little bit about the expense growth in this particular quarter, most of it was driven by incentives, and there was some noise from currency as well. So actually, when you make more money, you obviously are going to have a rising expense line. We still have in process the idea behind productivity funding investment and then solving for an expense growth as a result of that. And so we haven't changed. And what I would say is the productivity targets for the first quarter hit their target. The investments that we wanted to make, we were able to make and the expense growth we managed to was pretty much spot on where we thought it would be. And so that discipline and flexibility is built into our planning, which is why at the beginning of the year, I talked more about operating leverage than I did about attaching myself to a finite expense growth number. We wanted to have the flexibility to react when markets were conducive, but also have the discipline to be able to flex down in environments that are less. So when I think about expenses, I think about a dynamic expense line that basically is something we look at on a very continuous basis. And so -- it's very much driven today by the productivity and the investment side of the equation.

Got it. And then maybe to pivot over to capital. Any thoughts on the new Basel endgame proposal and maybe how it impacts your capital deployment strategy going forward?

Yes. I think it's too soon to think about how it might impact the capital return part of it. I will say that on measure, our preliminary view of it is it is a net -- could be a net positive for us as it relates to, obviously, the commercial loan side and the operational risk is something that we probably have less of than some other peer banks. And so net-net, we think that it's going to be a positive for RWA. But it's still early days. We're in the comment period. And so I would say it's taking a cautious look to it. I don't think it's going to have a massive impact. But if it does, it will certainly be net positive at this point.

Congrats, Jennifer.

Your next question will come from the line of Mike Mayo with Wells Fargo Securities.

Look, wealth is growing double digits. As you said, firm-wide revenues up 14%, the higher end of return targets. So it seems like it was working this quarter. But what got my attention is, I think, new news that you look to grow wealth producers by 7% to 9%. I think that's this year. And so -- and correct me if you disagree, but I think this is the most competitive market we've seen in the wealth business like almost ever. So the question is, I'm not saying it's a wrong strategy. The question is, why now do you look to increase the wealth producers? And what's your pitch? Because I think every -- literally every large bank, large brokerage firm is looking to expand wealth at this time. What's your pitch when you try to get the new producers?

Thanks, Mike. So you're right. We are focused on hiring and investing in talent in the wealth management business. And you're absolutely right, it's a very competitive marketplace for the best talent, which is what we're looking for. And we are trying to focus on roles that are revenue generating for us and within that producer roles. And part of it is, as we look back over the last several years, although that group has grown, it has grown at a lower rate than the growth of the business itself. And so there's an acknowledgment that we need more talent to increase the growth rate, the organic growth rate within wealth. As far as being able to have an attractive value proposition for wealth management professionals and advisers, we think we have a very different value proposition. We have an excellent brand. We are positioned within the upper tiers of the market, which, I'll say, the highest levels of expertise want to be able to not only serve that client base, but look to bring on new clients on that front. We've been investing in the platform to do that. We've talked a lot about family office solutions, which we believe really is a differentiated offering. It's, in our view, better and more attractive than stand-alone virtual family offices because it brings the full set of resources and banking capabilities that we have. And yet it's also an opportunity to leverage the history and the fiduciary capabilities that we have and trust capabilities. So we think for an adviser or a professional that's looking to be able to apply their trade, if you will, and succeed, we offer the best platform for them to be able to do that. So that's a big part of it. It is a different model here at Northern. And that -- as you know, that's part of why we think it's more attractive.

And as part of this increased investing for growth, whether it's wealth or firm-wide because you rattled through a lot of growth initiatives. Is that -- and maybe I got this wrong, but you're still guiding for 100 basis points of operating leverage this year, but you had over 700 basis points of operating leverage in the first quarter. Is the reason for no change in that guide just conservatism or also because you think you might be ramping up some spending as you bring on these new producers?

Yes. So as I mentioned before, obviously, it's a very constructive backdrop and macro environment for us. So there's definitely some acknowledgment that the strong revenue growth here was driven and supported by that backdrop. We don't know what's going to happen as we go through the year. And there are also some tough comps in the sense of last year, we had strong second, third, fourth quarters. So acknowledging that, that's ahead of us as well. And as Dave mentioned, we've really tried to align our, I'll say, resource deployment strategy based on productivity and looking to ensure that we're driving productivity to fund that investment. And so we haven't pulled off of that. Yes, we expect to continue to invest in these areas that we talked about, but the plan is to try to generate more productivity to do it and not necessarily change the expense growth profile that we've been on.

Yes. And I'd just like to add to that, the direction of travel on expenses is down for the remainder of the year.

Next question will come from the line of Brennan Hawken with BMO Capital Markets.

So Dave, you flagged strength as far as the deposit growth goes. And it looks like a lot of -- from the presentation, a lot of the deposit growth was driven by the servicing business. You also flagged some large institutional deposits weighing on NIM. So was that part of that deposit strength, some large institutional deposits? And how should we be thinking about the profile of deposits as we move forward and what your expectations are for that through the course of the year?

Yes. Yes, we had some largely unexpected extremely large deposits. I mean you've heard me speak in the past about why we keep our capital ratios where we keep them. And we want our balance sheet to be open at all times for our largest clients. And so occasionally, some of our clients will do some strategic repositioning -- and we want to be in a position to capture those deposits when they do that. They're not core operational deposits. They weren't there for a long period of time, but we want to be able to accommodate them. So in this particular quarter, it really drove up the average deposit level significantly. And that isn't going to obviously translate into a Q2, although I do think the increase was roughly $9 billion, and I think we're going to keep $4 billion to $5 billion of that. So in terms of average deposits. But at the end of the day, that's really what you saw there was client-driven specific very large deposits from just a handful of just really important big clients.

Got it. Okay. That makes a lot of sense. And you also spoke to robust organic growth in the GFO business, but we didn't see a lot of deposit trends. We certainly saw the revenue look good. Is the organic growth in that business less tied to deposits the way we normally think about that, and therefore, that's the divergence? And also maybe could you give a little color around your new efforts around the GSO and how that's going? And when you guys talk about GFO, do you categorize those 2 together?

Sure. So just on the liquidity part of the question there, Brennan. So these family offices have significant liquidity, which they are, I'll say, utilizing and moving around quite a bit. And so it can move from on the balance sheet as deposits to into our money market funds or short-term treasuries. So it's, I'll say, a pretty active management of liquidity that we do, I'll say, on their part and for them. And so from quarter-to-quarter, for example, those deposit numbers can move up and down. And to your point, it's less of an indicator, I would say, of the organic growth and more of an indicator of just their activity. To the second part of your question, we have the benefit of having this strong family office business, which we've been in for quite a while and have built up the capabilities. And to your point, what we've looked to do with family office solutions is leverage those capabilities, but in such a way that we can create the virtual family office experience for a family that doesn't want to have to set up their own office. So it's not run as one business together, but I would say 2 businesses that are very closely related and highly coordinated in what they're doing because they're leveraging some of the technological capabilities, some of the expertise that cuts across that. And it's just a different service model where we're acting as essentially the head of that family office for them as opposed to that person and team being employees of the client's family office.

Jennifer, congrats on your retirement.

Your next question will come from the line of Alex Blostein with Goldman Sachs.

So Mike, top of the house question. So the tone in your prepared remarks and to some of the Q&A feels like leans on organic growth acceleration a little bit more than we heard from you guys in the past, and you talked about some of the investments you're making to sort of support that. Can we talk through maybe the areas where you see the most opportunity to accelerate growth? And ultimately, what you think Northern's organic fee growth, so, ex markets, should look like over the next couple of years if you achieve these goals, both across the institutional business and the wealth?

Sure. So I would start, Alex, by saying that we see the organic growth opportunity across all 3 businesses. The nature of it is going to be different. We talked somewhat on the call here about wealth management. A lot of the investment, but also then the opportunity on the wealth management front is to add talent to that to increase the growth rate. So I think we've talked through that part of it. But it also cuts across other aspects that drive growth. In thinking about marketing, I talked about digital marketing that we're doing, a focus on centers of influence. There are other areas where we're trying to essentially bring in more opportunities at the top of the funnel in order to increase that growth rate. And many of them require investment to be able to do that. And I would also say on that front, that's an area where we believe that AI is going to create opportunities for us to continue to transform the client experience and the adviser experience, particularly as you work down the wealth tiers. So we're excited about that, but that also does require investment to be able to drive that. Within the Asset Servicing business, as we've talked about there, the real goal is around scalable growth. And I would say staying focused on our current footprint, our current offerings, the segments that we're in, that's where we expect to get this continued growth at a very profitable level and expect to continue to drive the margins up in that business. And then within asset management, really, you've seen a lot of growth that's come from the core products for us, certainly liquidity. But where we're really investing there is on the ETF front as well as tax-advantaged equity and also quant. And that requires investment in the sense of building out our distribution capabilities for third party. But we believe that's an avenue, which right now represents a relatively small part of our asset management business that could grow at a much higher growth rate. So that's the -- I'll say, the combination across the businesses. And we've talked about an organic growth rate that we've targeted around 3%. And certainly, from what I talked through there, that's going to drive the 3%, but we hope above that as well.

Got it. And then a quick follow-up just around capital management. With the Visa shares become available to you guys this year. Can you maybe just talk through the amount of proceeds you expect the use of these proceeds and timing when it comes to potentially bigger buybacks?

Yes. So we'll roughly get half of our position, let's say, $470 million pretax, so $350 million posttax depending on the share price. And we've only just begun to sort of think about what we're going to do with it. I don't think we're going to use the same, obviously, playbook we had a few years ago. We've got other options at this point, but we're going to weigh it against all our other priorities and take a look at what to do at that point in time, but haven't landed yet on that.

Your next question comes from the line of Ken Usdin with Autonomous Research.

I want to ask a question just about the balance sheet. You mentioned that the benefits that came through the size of the balance sheet and the deposits, maybe some of that doesn't stay, maybe some of it does. But just given the higher for longer environment, how do you think just about duration of the securities portfolio and any other changes to that? Or is it really more of a wait and see because you're not 100% sure if this elevated size of the balance sheet lingers?

Yes. So when you think about the upside to our balance sheet and to our NII during the course of the year, there's a bunch of different things we think of and trying to figure out what we're going to guide. And so the first one would be the investment securities maturity replacement. Obviously, we still have back book repricing, and we can take advantage of that through the full year in '26. We did take some deposit pricing actions as well towards the end of last year, let's say, third and fourth quarter, and we haven't lapped those yet. So those are built-in increases that we see coming in the year. We've been leaning a bit more into some incremental investment strategies around higher-yielding opportunities. We've been looking at our wholesale funding mix a little bit more, leaning a bit more into FICC repo as well. And so when you put all those together, and then obviously, the deposit growth. So we still are -- we're thinking about having some deposit growth in line with the businesses. And we also no longer have the potential headwind in our mind anyway of rate cut in the U.S. and taken that off the table and may even have some rate increases in Europe. And so you put all that together, and that's sort of how we come up with it. It doesn't -- we're not going to reach for yield. We're not going to materially change our profile in terms of duration to try to get there. We don't need to, to be honest with you, to get there. We feel we can do it without that. So -- and there's a lot of uncertainty out there. So I think our positioning right now is pretty stable.

And just a bigger picture follow-up. We've got potential new Fed chair coming on, talks about potentially shrinking the size of the Fed balance sheet. That Fed balance sheet has already been down $2.5 trillion and trust bank deposits keep growing. But can you just remind us of the rule of thumb to think about if the Fed balance sheet continues to shrink over time, how insulated is your balance sheet from that in terms of deposits?

So Ken, I would say that is something that we are obviously observant of and what's happening. And frankly, I'll say a little surprised that liquidity levels have remained so high on our balance sheet and in our funds given that the Fed has reduced its balance sheet as much as it has. To the extent that we're in, I'll say, some level of stabilization there, I think that's good because that means our deposit levels and money market fund levels will grow with our organic growth. So yes, there is definitely some exposure to the extent the Fed were to really shrink its balance sheet more. I think that pulls liquidity out of the marketplace. And our model as well as others, it tends to expand and contract with that somewhat. So yes, some exposure on the downside, I think less on the upside.

Your next question will come from the line of Steven Chubak with Wolfe Research.

It's actually Sharon Leung filling in for Steven today. Just wanted to ask on the margins in the business segments. The margin in Asset Servicing has expanded nicely, but in Wealth, the margin was flat year-on-year despite like some strong revenue growth. So just wanted to understand like what are the components that are going to drive the, I guess, the path towards your medium-term target of 33% in the margin?

So the goal of the Asset Servicing business, as I mentioned, is scalable growth. And as much as we did have a strong pretax margin here in the quarter, this is something that we're trying to consistently move up. And so the expectation is that we will continue to try to see a higher margin in the Asset Servicing business. We've talked about a particularly strong macro backdrop here. So capital markets, very strong, NII, very strong in Asset Servicing. So that definitely contributed to the higher pretax margin for this quarter. But we want to make that even more sustainable, if you will, and a more resilient high level of margin. So there's more opportunity on that front. On Wealth Management, where we have had a very attractive pretax margin, that's an area you've heard a lot where we've talked about growth and making investments for growth. So we feel like we're in, I'll say, a good range for that margin, but we are emphasizing growth as opposed to trying to see that margin go up. And to the extent we did have some pressure on the Wealth Management margin as we make some of these investments in the near term, the expectation is that we'll more than make up for those with improvement in asset servicing.

Your next question comes from the line of David Smith with Truist Securities.

On organic growth, you cited 7 consecutive quarters of positive growth for the business as a whole, and then there's a 3% target that you put out there, but you think there's opportunity to do better over time. Can you help us get a sense of where organic growth is today and where you were a year ago? We know GFO is above average, but is Asset Servicing and the regional part of Wealth fairly positive today, 1% or so, 2% or so? Sure it can bump around some quarter-to-quarter, but maybe over the past year, what kind of organic growth have each of those businesses earned and then where were those, say, like the year prior?

Sure. So to just start with this quarter, each of the 3 businesses had positive organic growth. And that would also be true within the major segments of the business. But to your point, if we look at each of them individually and a little bit, I'll say, over time, within Wealth Management, the organic growth has been closer to a consistent, I'll say, 1% with GFO being above that and the regions being a little bit below that. And that's where we're looking certainly for GFO to continue to grow at a high rate, but it's more with the regions incrementally increasing that growth rate as we go forward this year and into next year to move it up in total above the 3%. So made progress this quarter. But again, it's all about consistency. In the Asset Servicing business, just given the nature of some of the larger mandates, that organic growth rate can, I'll say, swing or vary more from quarter-to-quarter or even in a year. So we did -- if you went back a few years, we did have some periods where we had some business that rolled off that did bring that down to kind of flat to negative organic growth. As I mentioned, it's positive right now, again, in about the same range as the Wealth Management business, but we see the opportunity likewise to continue to see that growth rate increase, but with the focus on profitability and scalability for it. In Asset Management, overall, a lot of the organic growth more recently has been primarily driven by liquidity, but we're seeing greater diversification in the growth with that business as well. So in the past quarter here, likewise, some of the areas that I mentioned around ETFs and for some time period, tax-advantaged equity have had nice organic growth across that front. So once again, in about the same range there and same expectation to see that increase.

Got it. And do you expect over time, all the major businesses to be doing 3% organic? Or medium term, would you expect to get there for the company as a whole, but some to be above and some to be below?

Yes. So the target is for all of them to be above the 3%. But just given the way that it varies, I'll say, from quarter-to-quarter or even year-to-year, they may not all be, but that's the benefit of having the 3 businesses.

Your final question will be coming from the line of Gerard Cassidy with RBC.

Mike, I think you called out in your prepared remarks that you saw outsized growth in the Wealth Management area in your central region. Can you highlight what drove that?

Sure. You're right, Gerard, we did. And I would say, often, given that the company has been in the central region and headquartered in Chicago for a very long time, we have a very strong business here. And often, people think that it's a mature business that is not going to grow at the same rate or even a higher rate. But the fact of the matter is the team and the leadership of this region, particularly under John Fumagalli and his team, have consistently leveraged that strength to be able to grow at a higher rate. And one of the areas, I would say, more recently is around the family office solutions that I talked about. That's the area where we started with that solution set and with that offering. It's already gained momentum in this region, and now we're in the process of rolling that out to the other regions in the same way. So that's part of the driver of the strong quarter.

Very good. Obviously, the dominance of questions are all about the Wealth Management and the Custody business. So I want to pivot because it's always good to ask you folks about credit quality since it's always so superb. You guys obviously don't take a lot of risk in lending. Your portfolio is not that big relative to your asset size. Can you share with us what are you guys seeing in the credit quality trends? They're very strong, we understand that. Have things changed meaningfully from the financial crisis and pandemic that customers are more resilient today? Any color there?

Sure, Dave.

Yes. I mean -- so just keep in mind, when I look at Northern's portfolio that we have a very -- we're very tilted toward investment grade on the corporate side. And then -- and our clients in Wealth, we're usually doing secured facilities. And so at the end of the day, for those to be in the stress scenario, it would take quite a bit of downside to do that. So that's why you see our credit quality so high. And we're not obviously also exposed to the same extent in the private equity and/or private credit space either where there's some pressure right now. We don't lend on the valuation or performance of the underlying fund investments. And so we do subscription facilities where the underlying obligor, which most of whom are institutional borrowers are really quite strong. And so from our perspective, we're not in the high-yield market. We're not in the leveraged loan market, if you will. So we're not seeing the same kind of pressures that other firms might be experiencing in that regard.

And it appears there are no additional questions at this time. I will now turn the call back to Jennifer Childe for closing remarks.

Thanks for joining us, and we look forward to speaking with you again in the future.

Once again, Jennifer, thank you very much.

Thanks, Jennifer.

This concludes today's call. Thank you for your participation. You may now disconnect.