Thank you, Margo, and good morning. We will begin today's call with prepared remarks followed by a question and answer session.

I would like to remind you that this conference call will contain forward-looking statements, including, but not limited to, statements regarding the company's strategy, loans, deposits, capital, net interest income, non-interest income, margins, allowance, taxes, and non-interest expense. Actual results could differ materially from those discussed today.

These forward-looking statements are subject to risks, uncertainties, and other factors, which are disclosed in more detail in the company's most recent filings with the U.S. Securities and Exchange Commission.

These statements speak only as of the date of this call and National Bank Holdings Corporation undertakes no obligation to update or revise these statements. In addition, the call today will reference certain non-GAAP measures, which National Bank Holdings Corporation believes provides useful information for investors.

Reconciliations of these non-GAAP financial measures to the GAAP measures are provided in the news release posted on the Investor Relations section of www.nationalbankholdings.com. It is now my pleasure to turn the call over and introduce National Bank Holdings Corporation's Chairman and CEO, Mr.

Tim Laney.

Thank you, Emily. Good morning and thank you for joining us as we discuss National Bank Holdings' second quarter 2026 financial performance.

I'm joined by our President, Aldis Birkans; our Chief Financial Officer, Nicole Van Denabeele Bergh; and John Steinmetz, our Executive Vice Chair and Executive Managing Director of Strategic Initiatives. Our team delivered solid second quarter results with record loan production and 10% year-to-date loan growth.

Strong credit metrics reflect our intentional focus on prudent growth. Our commitment to developing full banking relationships with our clients continues to translate into operating with a low-cost and diversified deposit franchise.

Expenses continue to be well-managed and we expect to meet or exceed savings resulting from the Vista integration. Before I turn the call over to Nicole, I want to share how pleased I am with revenue lift we're seeing from the Vista acquisition.

Our bankers are excelling at delivering quality results for our shareholders. I also want to recognize our countless teammates that have positioned our company to seamlessly integrate the Vista acquisition with all conversions targeted to be complete by quarter-end.

On that note, I'll turn the call over to Nicole. Nicole?

Thank you, Tim, and good morning. This morning, I'll walk through a second quarter that demonstrated strong operating momentum across the bank, and I'll provide our outlook for the second half of the year.

As a reminder, our guidance does not include any future interest rate policy changes by the Fed. For the second quarter, on an adjusted basis, we reported net income of $35.3 million, or 78 cents of earnings per diluted share.

Annualized, this is 33% higher than the prior quarter. The second quarter's adjusted return on average tangible assets increased 6 basis points to 1.30%, and the adjusted return on average tangible equity increased 92 basis points to 12.7%.

Year-to-date, we grew our fully taxable equivalent pre-provision net revenue by 23% over the same period last year, generated a record level of loan production, and maintained a top-quartile net interest margin. Turning to the balance sheet, client activity was strong during the quarter, and our pipelines continue to build as we move into the back half of the year.

Our teams generated record quarterly loan originations of $927 million, driving year-to-date annualized loan growth of 10%. With that momentum carrying into the third quarter, we expect full-year loan portfolio growth of 10%.

Fully taxable equivalent net interest income for the quarter totaled $111.5 million, an increase of 25% compared to the second quarter of last year. Net interest margin during the second quarter was a strong 3.94% and remains in the top quartile of our peers.

For the remainder of the year, we expect a net interest margin near 4%. We demonstrated success in gaining full client relationships, which drove average deposit balance growth of 2.3% annualized.

Deposit costs improved 1 basis point during the quarter and remained a low 1.93%, with a total cost of funds of 2.01%. The loan-to-deposit ratio ended the quarter at 94.1%.

Turning to asset quality, credit quality remained strong. We recorded $1.5 million of provision expense, primarily to support the loan growth during the quarter.

Second quarter's net charge-offs were 27 basis points annualized. Non-performing assets remained a low 35 basis points, and the allowance coverage ratio totaled 1.13%.

Our allowance coverage on non-performing loans improved from 2 times to 3 times of coverage over the past year, underscoring our positive credit quality trends. Additionally, we hold $19.6 million of marks against our acquired loan portfolio, which provides an additional 20 basis points of loan loss coverage if applied across the entire loan book.

Fee income was another area of positive momentum this quarter, increasing 40% annualized over the linked quarter. Non-interest income totaled $19.8 million, and Aldis will provide more detail on that shortly.

We expect full-year fee income to be within our previously guided range of $75 to $80 million. Non-interest expense totaled $95 million for the quarter, including $11.2 million of acquisition and restructuring expenses.

Excluding these one-time items, non-interest expense was $83.7 million, up from the linked quarter due to merit increases and one additional day in the second quarter. As expected, the majority of expense synergies from the Vista acquisition will come online following system integration in the third quarter.

As previously guided, we continue to project total non-interest expense for the full year to be in the range of $320 to $330 million. Our capital levels remain well in excess of well-capitalized regulatory thresholds.

Common Equity Tier 1 ratio ended the quarter at 12.3%, and our total capital ratio was 15.4%. Tangible book value per share grew to $26.23, with earnings more than covering the quarterly dividend and $11 million of share repurchases during the quarter.

Importantly, we believe we are on track to deliver earnings in excess of $1 per share in the fourth quarter of 2026. With that, I will turn the call over to Aldis.

All right, well, thank you, Nicole, and good morning. I'll start with the highlight of the quarter: loan production.

As Nicole mentioned, we funded a record $927 million during the quarter. To put that in perspective, year-to-date production now stands at $1.7 billion.

It's already exceeded our total fundings for all of 2025. That's a meaningful marker of how much the growth engine has accelerated, and it puts us nicely on track to hit our full-year 10% loan growth guidance.

What I'm most encouraged by is how broad-based this production was. It was not a one-team or one-region story.

We saw contributions across most asset classes and most of our geographies. That granularity matters, as the whole franchise is pulling in the same direction.

Several of our teams are truly just gaining momentum, and we are hitting into the back half of the year with healthy pipelines across the board. It's also worth highlighting that our line utilizations continue to move up towards historical averages, as our clients are becoming increasingly comfortable with the economic outlook.

Turning to credit, we continue to see overall credit trends improve, with both classified and criticized loans being down on a linked-quarter and on a year-over-year basis. Our past-due loans also were down.

Both NPAs and NPLs remained at low levels. Simply put, credit remains in a very good shape.

Fee income is another strong point. Non-interest income grew 10% on linked-quarter basis, or 40% annualized.

The fee income increase was driven by strong growth in service charges, card income, and treasury management activity. In addition, we continued to benefit from a more diversified fee base, with solid contributions from trust and wealth, Cambr, and swap income, all adding to the robust growth.

Finally, turning to the operational side of the Vista Bank acquisition integration, we remain firmly on plan, and John will give us more perspective on that. John?

John Steinmetz (Executive Vice Chair and Executive Managing Director of Strategic Initiatives):

Thank you, Aldis, and good morning, everyone. When we spoke last quarter, the story was about bringing two strong, seasoned companies together.

This quarter, the story is about what we are accomplishing now that we are one team. Much of the heavy integration work that defined our first few months together is now behind us, and our core conversion is on track to occur in the third quarter.

That means our teams are now spending more time doing what they love: taking care of our clients and originating record loan production. The people-first culture we described at close is no longer something we are building towards; it's simply how we operate.

The culture has become the pinnacle of our recruiting success. Since January 7th, when the merger closed, we've added numerous seasoned banking professionals throughout our entire franchise.

Bankers are developing new client relationships, broadening the reach, and increasing market share within the communities that we have the privilege to serve. I've always said and truly believe the best bankers bank the best clients, and we are watching that unfold.

Looking to the back half of the year, our focus shifts from integrating to compounding shareholder value. Introducing clients to products and services such as treasury management, trust and wealth, residential mortgage, and other sophisticated products leverages the strength of National Bank Holdings Corporation.

Each of these lets us go deeper with the client, and that is where durable, profitable, and long-term growth comes from. We will keep running this company for the long run, disciplined on credit, thoughtful on capital, and relentless on service.

In conclusion, I would like to take a moment to thank our most important asset: our people. They are the reason I am confident about the ability to exceed our clients' and shareholders' expectations.

We thank you for your trust as the powerful combination we thought was possible becomes a reality, and as demonstrated by the quarter's performance. That is why I know the best is yet to come.

With that, Tim, I'll turn it back to you.

Thank you, John. As you've heard, we're experiencing strong momentum across our core banking franchise.

We expect this momentum to build in our favor, and as Nicole shared, we believe we're on track to realize $1-plus of EPS in the fourth quarter of this year. On other fronts, while 2U financials revenue growth has been slow in coming, investments in the business remain well-managed, and partnership potential is very solid.

We continued to grow our tangible capital and ended the quarter with a Common Equity Tier 1 ratio of 12.3%. Our balance sheet supports meaningful optionality.

We will continue to invest in talent, we will opportunistically buy back shares, and we'll reconsider M&A once we complete the Vista integration. Make no mistake: we are in great markets, and our team is well-positioned to deliver meaningful value for our shareholders.

On that note, let's open up this call for questions.

Thanks.

Good morning.

Wanted to get into the loan growth, the funding side is pretty impressive. Just wanted to ask about the net level and what maybe is kind of a headwind to that as where assuming some payoffs, or just if you could describe kind of the undertow of why it remains at maybe 10%, admittedly strong fundings.

Thanks.

Jeff, this is Aldis. I'll take that.

As you said, the loan originations were extremely strong. We're very proud of what teams accomplished this quarter.

What a little bit of headwind that came through was a little higher acquired loan turn, to say. Again, that's not unusual.

If you look in the first quarter, it was a little bit lower, an average year-to-date basis, it actually is where we were expecting, and therefore year-to-date, loan growth is at 10% where we had been guiding. I do think that that's going to even out here going in the second half of the year.

Again, $1.7 billion loan production for the first half of the year is very very impressive. We're very happy with that.

I would add the reality is when you see some of the longer-term debt that's coming in for renewal, you are seeing competition against those higher-yielding loans. We have discipline around total client profitability, and there's a point where we are willing to let business go elsewhere if we don't believe it's going to achieve our desired levels of profitability.

That dynamic has put a little interim pressure on the margin, but on the whole, we still have confidence when we look at where margin's going to hold for the year, given what we understand about what's renewing in our loan portfolio and what that looks like the remainder of the year, we still feel very confident about a very strong margin holding in.

Got

it.

I guess just to understand that fully, it sounds like maybe some Vista attrition is what is against some of the record fundings. Am I hearing that right?

The Vista was a contributor, but again, as if I look at the first half of the year for first six months, it's exactly where we expected to be. I think it's not to be lost the point that Tim was making that we did see, and that kind of goes back to kind of the discussion on the loan yields.

If you see the loan yields came in a little bit, that is due to the higher loans turning, and that's both on NBHC and Vista side.

I want to be clear. Our bankers have done a phenomenal job of retaining clients through the Vista acquisition, so that isn't some unique driver of this.

I'm going to bring you back to what I said before. Where you're seeing attrition of business, I would say frankly, it's more in this current environment price sensitivity than anything else, and we've had discipline through the years around relationship pricing.

We don't look at just the credit. We can be more flexible where we have, for example, robust depository treasury management relationships, but what we're not going to do is pursue business that's either too high in risk or are not generating adequate profitability.

I can't say enough about the job our bankers have done to retain relationships through this integration and not only that, but focus on growing beyond it.

Thanks. If I could just hop over to the expense side.

I got that full-year guide. I guess a normalized quarterly expense run rate, maybe in the second half?

Maybe even a better question is the Q4 run rate of where you exit the year, as we try to pull out those merger expenses and see where you land.

Yeah. Good morning, Jeff.

This is Nicole. I'll be happy to give some color there.

I will say Q2's expenses came in in line with our expectations. As I mentioned in Q1, we have made some investments in new banker talent.

Q2, we also have merit increases coming online, one additional day in the quarter. We are on track to meet our full-year expense guide of $320 to $330 million.

To your point, we will see the benefit of the expense synergies from the acquisition. Those will come fully online in the fourth quarter.

That'll be our first kind of clean quarter. I do think it is reasonable to expect in the fourth quarter that expenses would be below $80 million.

Got it. That's helpful.

Maybe while I have you, the margin average in June, do you have that figure?

Yes, I do, and I'll be happy, Jeff, to give you more color on margin broadly. I'll start by saying we're proud of maintaining a top-quartile margin.

We exited the month with a June month-end margin of right at 4%. That gives us confidence guiding forward to a near 4% margin.

Breaking down Q2's margin in some of its pieces, I will say positives for Q2 margin: our cost of deposits improved 1 basis point. We did have a 3 basis point increase in our cost of funds, and that was entirely driven by the sub-debt issuance that we did at the end of the first quarter.

That sub-debt issuance came fully online in the second quarter. If you strip out that impact, Q2's cost of funds was flat with the first quarter, which we are proud of given the funding pressures in the industry that we were able to hold our cost of funds flat.

Additionally, average earning asset balances increased 9% over the first quarter. Average loan balances increased 15% over the first quarter.

Where we did experience margin compression was in our loan yields for the second quarter, which Tim and Aldis have both mentioned. A couple of impacts there.

We are impacted by some churn of loans on the existing book where you have loans in the high 6s renewing. We did have new loan origination yields for Q2 right about 6.4%, 6.5%.

At those levels, new loan originations are still accretive to margin. While those loan yields came in a little bit, we are maintaining our spreads and still picking up margin accretion from new loan activity.

Then the second quarter loan yields were also impacted by some volatility in purchase accounting accretion volume, and that will vary quarter to quarter, give or take a few basis points.

Thanks, Nicole. Appreciate it.

Thanks. Good morning.

Thanks for the question. I think you reiterated both your fee and expense guidance.

Just wondering if you could provide an update on the contribution of 2U, I think previously you said that was about $22 million of expenses and $2 to $4 million in the fee run rate, if that's still embedded in that outlook, and any updated thoughts on kind of where progress on that stands.

Yeah. Kelly, thanks for the question.

Look, our revenue performance on 2U has been underwhelming to date. There is good news there.

We've seen in the second quarter full applications growing dramatically, applications up 800% over the first quarter, but conversions are not dialed in yet. That's where you get the revenue.

As a practical matter, what we're seeing is applications that are not still hitting our credit risk profile, and we're not going to compromise on that. It speaks to our need to do more targeted marketing to think more about attracting the right kind of applications, because at this point we're seeing dramatic increase in applications coming in from pure startup businesses, which, as a commercial bank, we're not equipped to bank, and frankly the other is just straight-up credit quality issues.

It speaks to the need again to continue to refine our application target marketing, and we're doing just that. There is some positive news, while the dollars are small.

We're seeing deposit growth in the business. The beauty of that is these are granular small business deposit accounts.

We love the granularity. It's just building on a very small base and we've got to see that grow.

Nicole, if you want to speak to how we're adjusting and thinking about filling gaps. We didn't attribute a lot of revenue to 2U this year.

Our intention is to fill those gaps, and you may want to speak to how we're going to address that.

Kelly, your numbers are right on with what we had previously guided, $2 to $4 million of revenue from 2U. We do feel confident in our overall fee income guide, regardless of where the 2U revenue comes in.

We're seeing some nice lift in other areas of our diversified fee revenue. Then on the expense side, your number is accurate, right, $20 to $22 million of 2U expenses, which is flat to last year, even with bringing on a full year of amortization of the capitalized asset.

I will say, from a 2U expense standpoint, expenses are well-managed and we are on track to meet that guide.

Okay. All right.

Got it. That's helpful.

Then I'd like to pivot just overall to funding. I think loan growth has been super strong at NBHC and definitely a highlight.

It looks like deposit balances, at least on a spot basis, were down slightly, and you utilized some greater amount of borrowings. Just wondering how you guys are thinking about the loan-to-deposit ratio and the funding of that kind of 10% loan growth going forward.

Kelly, this is Aldis. I'll take that.

In terms of, again, we usually look at the average deposit balances to that because that kind of measures the overall strength of the balance sheet and takes out the day-to-day volatility at the quarter ends. For example, the tax seasonality in the first quarter, we were benefiting some from that, adjusting for that, really actually transaction deposits were flat even on spot basis and grew $115 million on the average basis.

There is plenty momentum. It is, as always, for us focused on relationship banking.

Our bankers know that it is full balance sheet approach to how we go to market and we expect to be able to support our growth with core deposits.

I would add we also historically have gone through cycles where when you see a slight step-up in more commercial real estate production, you tend to see less deposit growth. That's why we are hyper-focused over time on growing commercial banking relationships in the C&I space.

That's where you really pick up the full treasury management depository relationships that have made this company so strong over the years. We certainly make no apologies for the granularity and the breadth of our deposit base.

I think the fact that we actually saw cost on that deposit book come down a basis point speaks to the strength of those relationship deposits. Make no mistake, if we had wanted to grow deposits more and play the pricing game, we could have certainly done that.

Got it. That's helpful.

Maybe last piece for Nicole, probably, just to understand the dynamics of the margin. It seems like some of the variance between Q2 and Q1 was just some higher loan fees in Q1, maybe accretion.

Do you have those numbers handy just so we can get a better sense of underlying trends, because clearly at a 3.94% margin still one of the better ones in the industry, but I think some of us were looking for flattish because of the dynamics. Thanks.

Kelly, thanks for the question. I would say, as I mentioned, we will continue to see some volatility just related to the pattern of how that mark accretion comes in, just driven by payoffs, paydowns, and the volume of those and the timing that they hit.

I wouldn't expect that to be more than a couple of basis points of margin volatility over time. I think that that's the piece that you're seeing from Q1 to Q2.

Got it. Thank you.

I'll step back.

Thank you, Kelly.

Hey, good morning, everyone.

Good morning.

Nicole, can you just along those lines of that last question, can you just give us the accretion that was part of net interest income this quarter? I think it was $1.4 million last quarter.

It was $1.4 million last quarter, and it was about a million this quarter.

Okay.

I guess I should clarify: related to the Vista acquisition. We do still have some accretion impacts from prior acquisitions, that can drive some volatility over time as well.

Okay. Then on loan yields, understand why they were down this quarter, but what's your outlook on loan yields going forward?

We think that loan yields have roughly normalized, we believe that they've settled in where they're going to be. Like I mentioned, new loan origination yields in Q2 right about 6.4%, 6.5%, and we feel like that's hit a normalized level.

I think it's such an important question, because we do spend a lot of time looking at our book, remaining renewals throughout the year, and that's where you become somewhat vulnerable, and we feel like at this point, renewals are going to be well-managed, and that's what gives us the confidence that we believe we can hold our position here through the remainder of the year.

Okay. Then just on the overall margin, it sounds like there was some nice lift at the end of the quarter.

What drove that margin up to 4% at the end of the quarter relative to the 2Q average? No, it it

As Nicole mentioned, that around four 4% June margin was what we would call actually clean. The volatility of of that mark impact that we talked about was realized earlier in the quarter earlier in the quarter, previous months, to say.

June actually felt pretty clean. That's why we were very comfortable sharing it.

Okay.

It's not like deposit costs are down further in June? I don't know if you have the spot rate at the end of June.

They're really not. I think Aldis answered the question.

It was really about where we absorbed that impact, and it was early in the quarter. Okay.

Got it. Sounds good.

Then on the buyback, do you have the weighted average price that you bought back shares this quarter?

I don't know that we've shared that, have we?

We typically don't disclose that, but again, as Tim mentioned, we opportunistic as market moves around, and I think it's reasonable to say that it was done at prices lower than where we trade today or yesterday.

Okay. Then just on criticized, it sounds like criticized was down.

Can you give us the dollars or percentages from 1Q to 2Q?

Criticized was just at 3%. That was, by the way, the lowest level criticized for our company since 2022.

How that compares to 1Q? Sorry, I don't have it at my fingertips.

It was down from about 10 base 10, 11 basis points.

Got it. Okay.

Sounds good. I guess last one for me.

Just on the income from partnerships and other fees, I think they were up a million one this quarter. If you could provide maybe what the contribution in dollars was this quarter versus last and what do you view is kind of a normalized level, if you were to just kind of smooth it out, just so we can help forecast it?

That one is a tough one, because, as those can be lumpy and infrequent, to say. I don't think we have a good guidance here.

I do want to reiterate even if you back that out, our trust and wealth grew 10% on linked-quarter basis, 30% on year-over-year. Cambr fees were up near 10% growth on linked-quarter basis, 40% year-over-year.

We did have nice swap fee income. Again, that could be lumpy, but we did have $0.5 million in derivatives type of swap product sold income.

There's more than just the income from partnerships, but that one is lumpy, as and we don't plan on it, to be clear. In our guidance and in the plan, we don't plan on it, because, again, it's so hard to estimate.

Understood. Thanks again.

Hey, thanks for letting me jump back. I think, importantly, you reiterated that dollar run rate in 4Q '26.

Just wanted to confirm that that didn't include the impact of any strategic optimizations, such as a 2U sale.

It does not include anything related to a 2U sale to get to the $1.

Got it. Thank you.

Thanks. Maybe to that and the partnership potential to share some of the costs, maybe any update, Tim, on that progress or maybe no progress?

Jeff, the conversations and the work is active. The volatility in the fintech market is high, and that makes it difficult to give any kind of a defined timeline for getting something like that completed.

I'm not going to mislead anyone. The word volatility has come up quite a bit.

If we think the commercial banking market is volatile, go spend some time in this fintech market. It's very volatile right now.

Okay. Thanks.

One other question I had on that, the kind of net charge-off levels, just trying to get a sense. It sounds like you feel pretty comfortable on the credit side, but still somewhat elevated.

That continues to come down. It sounds like the provision this quarter was largely for growth.

Any update on maybe the outlook of future net charge-off levels and/or provisioning range, either specific or just broad trends would be helpful.

There's probably no better indication of where we think charge-offs are going than to look at criticized, classified levels and the fact that they've come down to historical levels. I think that's probably the best indication we can give.

Keep in mind, not unlike any other financial institution, we put the portfolio through an extensive testing process to come up with allowance, provision, and the quantitative and qualitative metrics lead us to where we're at today. I guess the short of it is we feel very good about the portfolio and where it stands.

We don't see, for example, a pig in the python. We don't see issues that are haunting us that could be issues a quarter, two quarters, three quarters from now.

John Steinmetz (Executive Vice Chair and Executive Managing Director of Strategic Initiatives):

Tim, if I could, I'd like to just say, the fact that we've been able to drive record loan production two quarters in a row and bring the two organizations together and experience the type of $927 million in growth is simply remarkable. Classified assets down 47% year-over-year, I think, really speaks to the future of the company.

Thank you, John. I agree.

I hope folks appreciate that we've done what we said we would do in terms of addressing any perspective concerns in the portfolio. To John's point, we've done that while growing the company nicely, and we believe in prudent growth, and we're not going to hide from issues.

We never have. We're not going to, and right now there are no issues to talk about.

I guess more specifically to that charge-off level, if you could break out where that came from within segment, and was that shared Vista or NBHC? I know it's a combined company now, but then maybe if you could speak to, is 30 basis points annualized net charge-off to average loans a go rate that we should assume or is this winding down?

We fully expect it to continue to wind down, to work its way down, and look, these have historically both been very well-run organizations. Both have had minor issues, but no major outliers.

To the extent if I had to look back and question activities on the NBHC side, I would say perhaps we were overly aggressive in attacking what we thought could be concerning issues, and we were willing to do whatever we had to move that risk out of the balance sheet. It cost us some money in that period of time, but it sets us up beautifully as we look ahead.

The answer to your question is we do fully expect that 30 basis points to come down.

The make-up of the net charge-offs this quarter?

No, I'll just say that on Vista, the charge-offs for this quarter, which is why we did not had the need to reserve for it, right? They were fully reserved for and spoken for from periods before, so that tells you that these credits were credits that we've been working on for a while, known, and it's just cleaning it out.

Aldis, do you have the loan type and is it a legacy NBHC or is it Vista credits?

I think it's a difference between half and half. Half and half is between legacy Vista, which again was covered through purchase accounting, there's no provision expense impact there, and then half is legacy NBHC.

In terms of asset classes, I don't have it at my fingertips.

I can tell you, we saw exposure in the franchise space that had to be cleaned up. We had dealt with some historical transportation, and as we've reported before, the exposure in that transportation space is down what, 1.5% of the book, if that, not even that now.

Now

I'm being shown less than 1%. I'm sorry, I should have known that.

Again, we've been active where we felt like there was risk either on the horizon or embedded in something that we had exposed ourselves to, and again, we make no apologies for being aggressive and taking that risk off our balance sheet.

Maybe last one is just the broad reserve-to-loans levels. I know that you mentioned I think about a 20 basis point if you include the marks, but the consolidated figure as that continues to trend lower, is there a level that you feel like that reserve release may continue going forward?

I think our belief, and again, a lot of this is driven by the modeling, the third-party modeling, but I believe we're at a point where it would be reasonable to expect it to be somewhat flat. I'll defer to Nicole and anything you would add.

I'll agree with that. I think to reiterate what Aldis was saying, to put a finer point on it, the reason that reserve level came down is because some of the specific reserves that we had set aside to cover the loans through the workout process, as they've been worked out, those specific reserves come off and bring that level down.

That's right.

Okay. Appreciate the color.

Thanks.

Thanks for the question.

Thank you very much, and I do genuinely appreciate the coverage and the questions we received this morning, the interest in our company, for our teammates that are listening in this morning. I'll end by saying thank you again for what was a remarkable quarter and for helping us build toward an exciting second half of the year.

On that note, I wish everybody a good day and rest of the week. Thank you.