Alerus Financial Corp (ALRS) 2024 Q3 法說會逐字稿

Hello, everyone, and welcome to the Alerus Financial Corporation earnings conference call. (Operator Instructions). Please note, this event is being recorded. This call may include forward-looking statements and the company's actual results may differ materially from those indicated in any forward-looking statements.

大家好，歡迎參加 Alerus Financial Corporation 的財報電話會議。（操作員說明）。請注意，此事件正在被記錄。本次電話會議可能包含前瞻性陳述，本公司的實際結果可能與任何前瞻性陳述中所示的結果有重大差異。

Important factors that could cause actual results to differ materially from those indicated in the forward-looking statements are listed in the earnings release and the company's SEC filings. I would now like to turn the conference call over to the Alerus Financial Corporation President and CEO, Katie Lorenson, to begin. Katie, please go ahead.

在收益報告和公司向 SEC 提交的文件中列出了可能導致實際結果與前瞻性聲明中所示結果有重大差異的重要因素。我現在想將電話會議轉由 Alerus Financial Corporation 總裁兼執行長 Katie Lorenson 開始。凱蒂，請繼續。

Thank you. Good morning, everyone. Thank you for joining us today for our quarterly earnings call. Here in the Twin City today with me is Al Villalon, our CFO; Karin Taylor, our Chief Operating and Risk Officer; and Jim Collins, our Chief Revenue Officer, and Head of our Commercial Wealth Bank. Forrest Wilson, our Chief Retirement Service Officer is also joining us on the call.

謝謝。大家早安。感謝您今天參加我們的季度財報電話會議。今天和我一起在雙子城的是我們的財務長 Al Villalon； Karin Taylor，我們的營運與風險長；吉姆‧柯林斯 (Jim Collins)，我們的首席營收長兼商業財富銀行主管。我們的首席退休服務官福雷斯特威爾遜 (Forrest Wilson) 也加入了我們的電話會議。

I'll start the call with some prepared remarks and strategic highlights for the quarter. Al will spend a few minutes hitting on the key financial highlights, and then we will address your questions. There is no question that this was a tough quarter for Alerus. We are not and will not be satisfied with our results until we are delivering superior returns. That being said, we also firmly believe success is not measured by a single quarter. And while the third quarter came up short, it was also a period of continued progress and execution of our key long-term strategic initiatives for our company.

我將首先發表一些準備好的演講和本季的策略要點。艾爾將花幾分鐘時間討論關鍵的財務亮點，然後我們將回答您的問題。毫無疑問，對於 Alerus 來說，這是一個艱難的季度。在我們提供卓越的回報之前，我們不會也不會對我們的結果感到滿意。話雖這麼說，我們也堅信成功不是用一個季度來衡量的。儘管第三季表現不佳，但這也是我們公司持續取得進展和執行關鍵長期策略舉措的時期。

While the path to returning to top performance is not linear, but the substantial strides we've made demonstrate our commitment to achieving our consistent top-tier performance. Our focus remains on driving shareholder value through steady growth, diversified revenue positive operating leverage and maintaining conservative underwriting standards.

雖然恢復最佳業績的道路不是線性的，但我們所取得的實質進展表明了我們對實現始終如一的頂級業績的承諾。我們的重點仍然是透過穩定成長、多元化收入、積極的營運槓桿和維持保守的承銷標準來推動股東價值。

Let me begin with the transformational changes we've been making over the past 1.5 years as we build a premier commercial Wealth Bank. Over this period, we have added key talent, continue to diversify our loan portfolio, and closed on our largest acquisition to date. We've also managed through the challenging work of numerous restructuring, rightsizing, and exiting of several business lines, which were not core to our focus.

讓我先介紹一下過去 1.5 年來我們在打造一流商業財富銀行過程中所做的轉型變革。在此期間，我們增加了關鍵人才，繼續實現貸款組合多元化，並完成了迄今為止最大的收購。我們也完成了許多重組、精簡和退出多個業務線的挑戰性工作，這些都不是我們關注的核心。

Regarding talent, we have worked with urgency on getting the right people in the right seats. And our great culture and best-in-class diversified business model has allowed us to retain top balance and recruit dozens of new team members to the company, including many key hires with areas of deep expertise.

在人才方面，我們緊急努力讓合適的人坐在合適的位置上。我們偉大的文化和一流的多元化業務模式使我們能夠保持最佳平衡，並為公司招募了數十名新團隊成員，其中包括許多具有深厚專業知識的關鍵員工。

Our additions on the revenue proving side are supported with key hires and continued investments in risk management infrastructure. These are all long-term investments that put some near-term pressure on operating expenses, but are critical to growing in the right way to support the consistent top-tier returns we expect to deliver in the future and have delivered in the past.

我們在收入證明方面的新增工作得到了關鍵員工的聘用和對風險管理基礎設施的持續投資的支持。這些都是長期投資，會給營運支出帶來一些短期壓力，但對於以正確的方式成長以支持我們期望在未來提供和過去提供的一致的頂級回報至關重要。

A key strategic priority was, and we'll continue to be to build strong mid-market and business-making C&I teams in our larger markets to support the well-established and successful teams in our North Dakota market.

一個關鍵的策略重點是，我們將繼續在更大的市場中建立強大的中端市場和商業 C&I 團隊，以支持北達科他州市場中成熟且成功的團隊。

Changes of this significance take time to show through to the bottom line, but the momentum is clear with nearly 45% of year-to-date loan origination to C&I clients compared to our pre-transformation origination percentages of 17%.

這種重大變化需要時間才能體現在利潤上，但勢頭很明顯，今年迄今為止，近 45% 的貸款發放給了工商業客戶，而轉型前的貸款發放比例為 17%。

We recently rolled out our formal private banking offering after adding a team of professionals and the synergies between wealth management, commercial banking and mortgage are exceeding our expectations, particularly in deposit and wealth generation.

我們最近在增加專業團隊後推出了正式的私人銀行業務，財富管理、商業銀行和抵押貸款之間的協同效應超出了我們的預期，特別是在存款和財富創造方面。

We remain deeply committed to diversification and believe establishing verticals to augment traditional C&I banking is important to growing the client base and expanding relationships. We've added specialty areas of SBA, government office profit, and most recently, our equipment finance vertical.

我們仍然堅定地致力於多元化，並相信建立垂直行業以增強傳統的工商業銀行業務對於擴大客戶群和擴大關係非常重要。我們增加了 SBA、政府辦公室利潤以及最近的設備融資垂直領域的專業領域。

Turning to our most recent announcement, which was the receipt of regulatory approval and the closing of our Home Federal acquisition, both of which happened in the expected time frame, and a signal of our position of strength, relationships with our regulators and capabilities in executing acquisitions.

談到我們最近的公告，即收到監管部門的批准並完成了對 Home Federal 的收購，這兩者都在預期的時間內發生，這表明了我們的實力地位、與監管機構的關係以及執行能力收購。

The Home Federal partnership is our 26th acquisition in the past 20 years-ish. Our playbook of integration is proven and in this particular partnership, the conversion is more straightforward than the previous smaller mix we've acquired.

Home Federal 合作夥伴關係是我們在過去 20 年左右的第 26 次收購。我們的整合策略已經得到驗證，在這種特殊的合作夥伴關係中，轉換比我們之前獲得的較小組合更加簡單。

We are so pleased with the leaders and the banking group that have joined us. Together as a bigger company, we are committed to getting better and achieving the results in our pro forma company and feel confident in our ability to do so.

我們對加入我們的領導人和銀行集團感到非常高興。作為一家更大的公司，我們致力於在我們的準備公司中變得更好並取得成果，並對我們做到這一點的能力充滿信心。

As for the results of the third quarter, our deposit growth for the year is over 7% and despite facing the headwinds of seasonal outflows we held deposits flat by continuing to win new clients despite the incredibly competitive environment.

至於第三季的業績，我們全年的存款成長超過 7%，儘管面臨季節性資金外流的不利因素，但在競爭異常激烈的環境下，我們透過繼續贏得新客戶，保持了存款持平。

We experienced some positive migration, but it's important to note the majority was simply in movement between accounts. We continue to operate with no brokered deposits and highlight our CD portfolio that is core clients with a rollover rate in excess of 96%.

我們經歷了一些積極的遷移，但值得注意的是，大多數只是在帳戶之間移動。我們繼續以無經紀存款的方式經營，並強調我們的 CD 投資組合是核心客戶，展期率超過 96%。

Loan growth was also robust during the year with the majority of business coming from market share gains of long-established companies. Although the economy in our market continues to be strong, we remain highly selective. And in commercial real estate, where we run below regulatory guidelines in terms of concentration, we are stringent with our dry powder, reserving capacity for the highest quality sponsors with underwriting structures that fit within our time-tested underwriting standards and those relationships that deliver superior ROEs.

今年貸款成長也強勁，大部分業務來自歷史悠久的公司的市場份額成長。儘管我們市場的經濟持續強勁，但我們仍保持高度選擇性。在商業地產領域，我們的業務集中度低於監管指導方針，我們對乾粉嚴格要求，為最高品質的贊助商保留能力，其承銷結構符合我們經過時間考驗的承銷標準，以及那些能夠提供卓越服務的關係。

Credit quality remains a key area of focus. Early identification of problem loans, coupled with proactive and decisive actions are part of our credit culture. We continue to closely monitor and proactively downgrade loans where we see potential or emerging weaknesses. We monitor the individual loan level on an ongoing basis, severing of our large multifamily projects, and we do not see systemic issues in this portfolio.

信用品質仍然是一個重點關注領域。及早發現問題貸款並採取積極果斷的行動是我們信貸文化的一部分。我們將繼續密切監控並在發現潛在或新出現的弱點時主動降低貸款評級。我們持續監控個人貸款水平，切斷我們的大型多戶住宅項目，並且我們在該投資組合中沒有看到系統性問題。

However, normalization of credit in the broader portfolio continued during the quarter as two large relationships drove the increase in non-accrual loans, of which we believe we are adequately reserved. One of the loans was a long-term bank and wealth client who has experienced the credit issues and the other was an acquired CRE loan originated in 2021 that was identified as higher risk marked indiligence.

然而，本季度，更廣泛的投資組合中的信貸正常化仍在繼續，因為兩大關係推動了非應計貸款的增加，我們相信我們已充分儲備了這些貸款。其中一筆貸款是一位經歷過信貸問題的長期銀行和財富客戶，另一筆是一筆源自 2021 年的 CRE 貸款，被認定為較高風險的不勤行為。

Credit migration has come from the a category, and we do not -- we have not backfilled despite continuously reviewing our portfolio through annual review, independent internal and external loan views. Charge-offs to average loans remained low for the quarter at 4 basis points and reserves to loans was stable at 1.29%.

信貸遷移來自 a 類別，而我們不是——儘管透過年度審查、獨立的內部和外部貸款觀點不斷審查我們的投資組合，但我們沒有回填。本季平均貸款沖銷額仍較低，為 4 個基點，貸款準備率穩定在 1.29%。

I will cover the margin in more detail, but I won't shy away from the reality of the magnitude of it. We did take a step back to 2023 after a much anticipated step forward last quarter. Our long-term guidance remains intact. The NIM was impacted by the continued pricing pressure on deposits.

我將更詳細地介紹這一邊際，但我不會迴避其規模的現實。繼上個季度備受期待的向前邁出一步之後，我們確實向後退一步到了 2023 年。我們的長期指導保持不變。淨利差受到存款持續定價壓力的影響。

We have consistently discussed the impact of deposit competition in our market, where many banks face high loan-to-deposit ratios and a reliance on brokered funds. The competition remains fierce and we are focused here again on the long-term retention doing what's right. We have evaluated all exception price deposits on an account by account level, and we will be adjusting incentives to correlate with volume and pricing.

我們一直在討論存款競爭對我們市場的影響，許多銀行面臨著較高的貸存比和對經紀資金的依賴。競爭依然激烈，我們再次專注於長期保留做正確的事情。我們已按帳戶層級評估了帳戶上的所有例外價格存款，並且我們將調整激勵措施以與數量和定價相關聯。

Also, always the highlight for Alerus is our wealth management division, which has consistently grown top line revenue for many years. Our advisers are the best in the business and our wealth business is deeply embedded in our business lines with over 40% of our client works from part of our retirement focus business and 20% of our wealth clients take personal or commercial bank relationships. We know how special our wealth business is and we are completely committed to continuing to invest in the business.

此外，Alerus 的亮點始終是我們的財富管理部門，該部門多年來收入持續成長。我們的顧問是業內最優秀的，我們的財富業務深深植根於我們的業務線中，超過 40% 的客戶來自我們的退休重點業務，20% 的財富客戶與個人或商業銀行有關係。我們知道我們的財富業務有多特殊，我們完全致力於繼續投資該業務。

We recently signed to move to a new technology platform that will transform the client experience and greatly improve the processes for our advisers and their support teams. This technology upgrade will help build on our established success in recruiting advisers as we offer a great user experience and the exceptional synergies advisers that are able to leverage from our retirement business.

我們最近簽署了遷移到新技術平台的協議，該平台將改變客戶體驗並極大地改進我們顧問及其支援團隊的流程。這項技術升級將有助於鞏固我們在招募顧問方面的成功，因為我們提供了良好的使用者體驗和能夠從我們的退休業務中利用的卓越協同效應顧問。

Speaking of our retirement business and our ultimate differentiator when it comes to value creation, given the recurring nature of the business with minimal capital allocation. Here, too, we have new leadership, new team members and enhanced structure. The team had a record quarter of new revenue, and we see continued positive growth trends in plans and participants, which is where the majority of our new fees are sourced.

談到我們的退休業務以及我們在價值創造方面的最終差異化因素，考慮到業務的經常性和最小的資本配置。在這裡，我們也有新的領導階層、新的團隊成員和增強的結構。該團隊的季度新收入創歷史新高，我們看到計劃和參與者持續呈現正面成長趨勢，這也是我們大部分新費用的來源。

National partnerships are one of the key initiatives in building our business, and we are pleased with the progress and the momentum we are seeing so far. We will continue to invest in this business with key talent additions and technology to improve efficiency, increase automation and strengthen our margins in the business.

國家合作夥伴關係是我們業務發展的關鍵舉措之一，我們對迄今為止所看到的進展和勢頭感到高興。我們將繼續投資該業務，增加關鍵人才和技術，以提高效率、提高自動化程度並增強我們的業務利潤。

Year-over-year core nonmarket-related revenues are up 5%. We are very bullish on the commentary in our business and view the recent legislation of Secure Act 2.0 as a key catalyst in continuing our trend of improving organic growth.

核心非市場相關收入年增 5%。我們非常看好我們業務中的評論，並將最近的《安全法案 2.0》立法視為繼續我們改善有機成長趨勢的關鍵催化劑。

Moving on to expenses during the quarter, which trended upwards due to a few factors: the addition of key hires and the correlated severance and retirement-related packages in addition to M&A-related expenses, which were $1.7 million. We had some lumpiness between the quarters related to FDIC insurance, and we had some increases in professional fees, which I would characterize as operational but not recurring.

接下來是本季的支出，由於以下幾個因素，支出呈上升趨勢：除了與併購相關的支出（170 萬美元）之外，還增加了關鍵員工以及相關的遣散費和退休相關福利。我們在與 FDIC 保險相關的季度之間出現了一些波動，而且我們的專業費用有所增加，我將其描述為營運性但不是經常性的。

We believe each of our revenue proof and hires will contribute to an improving fee with higher levels of production and more profitable business. The platform and technology changes in our wealth and retirement business will also create greatly improve our processes, which will lead to efficiencies, all of which will allow us to continue to effectively manage headcount in the company.

我們相信，我們的每項收入證明和聘用都將有助於提高費用、提高生產水平和提高業務利潤。我們的財富和退休業務的平台和技術變革也將大大改善我們的流程，從而提高效率，所有這些都將使我們能夠繼續有效地管理公司的員工人數。

In regards to capital levels, they bounce back closer to core with the payoff of TSP and we grew book value by 4.6%. Our book value continues to include $63 million of AOCI that will be casually recaptured over the coming years. We believe in maintaining a fortress balance sheet and remain committed to our long history of delivering dividends to support returns to our shareholders.

就資本水準而言，隨著 TSP 的回報，它們的反彈接近核心，我們的帳面價值成長了 4.6%。我們的帳面價值繼續包括 6,300 萬美元的 AOCI，這些資產將在未來幾年內隨意收回。我們相信維持堡壘般的資產負債表，並繼續致力於我們提供股息以支持股東回報的悠久歷史。

We have not been active in repurchases due to the recently closed acquisition and our priorities remain focused on organic growth, but we absolutely understand the value of the sum of the parts of our business and will be active as deep disconnects on value present themselves.

由於最近完成的收購，我們並未積極進行回購，我們的優先事項仍集中在有機成長上，但我們絕對了解我們業務各部分總和的價值，並將在價值出現深度脫節時積極進行回購。

With that, I will turn it over to Al for specifics on the quarter.

這樣，我會將其轉交給 Al 以了解本季的具體情況。

Thanks, Katie. I'll start my commentary on Page 11 of our investor deck as posted on the Investor Relations part of our website. Let's start on our key revenue drivers. On a reported basis, net income decreased 6.1% over the prior quarter, while fee income grew 3.6%.

謝謝，凱蒂。我將從我們網站投資者關係部分發布的投資者平台第 11 頁開始我的評論。讓我們從我們的主要收入驅動因素開始。根據報告，淨利潤比上一季下降 6.1%，而費用收入成長 3.6%。

The decrease in net interest income was driven primarily by lower purchase accounting accretion for the Metro Phoenix Bank acquisition, an increase in non-accruals and higher interest expense due to mix shift from noninterest-bearing deposits due to interest-bearing deposits. Growth in fee income was primarily driven by an increase in overall asset base fees within our wealth, retirement business line and from a gain recognized in the sale of one of our offices.

淨利息收入的下降主要是由於收購 Metro Phoenix Bank 的購買會計增值減少、非應計費用增加以及由於從無息存款轉向有息存款而導致的利息支出增加。費用收入的成長主要是由於我們的財富、退休業務線內整體資產基礎費用的增加以及出售我們一間辦公室所確認的收益所致。

Turning to Page 12 in the third quarter. We can dive with an interest income a little more closely. Net interest income decreased to $22.5 million and our core net interest margin decreased partly due to three factors. The first one being lower purchase accounting accretion for Metro Phoenix as you can see above decrease from 10 basis points to 2 basis points, less net interest income due to higher non-accruals and higher interest expense from an increase in interest-bearing deposits.

翻到第三季的第12頁。我們可以更仔細地研究利息收入。淨利息收入下降至 2,250 萬美元，我們的核心淨利差下降，部分原因在於三個因素。第一個是Metro Phoenix 的購買會計增值較低，正如您在上面看到的那樣，從10 個基點減少到2 個基點，由於非應計費用增加而導致淨利息收入減少，而計息存款增加導致利息支出增加。

At the end of the quarter, we repaid our borrowings from the BTFP as the Fed recently reduced interest rates. So going forward, our reported net interest margin no longer reflect the drag from these low interest earning assets.

由於聯準會最近降息，我們在本季末償還了 BTFP 的借款。因此，展望未來，我們報告的淨利差不再反映這些低利率資產的拖累。

We continue to see a path to our net interest margin reaching 3%. The path will not be linear as each quarter will have the different factors affecting net interest margin. For the migration of noninterest-bearing deposits to interest-bearing would drive our cost of funds higher.

我們繼續看到我們的淨利差將達到 3%。此路徑不會是線性的，因為每季都會有不同的因素影響淨利差。因為無利息存款向有息存款的轉移會推高我們的資金成本。

Turning to Page 13 to talk about earning assets. Since acquisition of Metro Phoenix Bank, we had our eighth consecutive quarter on growth as loans grew 4% over the prior quarter. We continue to let our loan investment portfolio run down as we mix low-yielding securities to higher-yielding loans.

翻到第13頁談論賺取資產。自從收購 Metro Phoenix Bank 以來，我們連續第八個季度成長，貸款比上一季成長 4%。當我們將低收益證券與高收益貸款混合在一起時，我們繼續減少貸款投資組合。

Turning to Page 14. On a period-end basis, our costs increased 0.8% from the prior quarter. While we saw seasonal outpost from our public funds, we continue to drive or get deposit growth to offset these outflows. Given the 2.7% growth in interest-bearing deposits and 6.3% decline in non-interest-bearing deposits, non-interest-bearing deposits are now 19.8% of total deposits versus 21.3% in the prior quarter. Given the stable deposit level overall, our loan-to-deposit ratio was 91.2%, which is well below our target level of 95%. We continue to not utilize any broker deposits for funding needs.

翻到第 14 頁。期末成本較上季增加 0.8%。雖然我們看到公共基金出現季節性前哨，但我們繼續推動或實現存款成長，以抵消這些資金外流。鑑於計息存款增加 2.7%，無息存款下降 6.3%，無息存款目前佔存款總額的 19.8%，而上一季為 21.3%。鑑於存款水準整體穩定，存貸比為91.2%，遠低於95%的目標水準。我們繼續不利用任何經紀人存款來滿足資金需求。

Turning to Page 15. I will now talk about our banking segment, which also includes our mortgage business. Our focus on the fee income components now since interest income was pre-discussed. Overall, non-interest income from banking was up $600,000 or over 12% from the prior quarter. Most of the increase was from the gain recognized in the sale of one of our offices in Minneapolis Metro Market. For the fourth quarter, we expect overall level of non-interest income to decrease from third quarter levels as we expect mortgage revenue to slow on the back of a seasonal slowdown in originations.

翻到第 15 頁。我現在談談我們的銀行業務，也包括我們的抵押貸款業務。由於預先討論了利息收入，我們現在將重點放在費用收入部分。總體而言，銀行業非利息收入比上一季增加了 60 萬美元，增幅超過 12%。大部分成長來自於出售我們位於明尼阿波利斯都會市場的一間辦公室所確認的收益。對於第四季度，我們預計非利息收入的總體水平將比第三季度的水平有所下降，因為我們預計抵押貸款收入將因貸款發放季節性放緩而放緩。

On Page 16, I'll provide some highlights on our current business. Our total revenue from the business increased 0.4%, while assets under management increased 4.7%, mainly as equity and bond markets continue to improve.

在第 16 頁，我將提供有關我們目前業務的一些要點。我們的業務總收入成長了 0.4%，管理資產成長了 4.7%，這主要是由於股票和債券市場持續改善。

Participants within retirement grew 1.5% during the quarter. New business production continues to be strong as over 500 opportunities for one this year. For the fourth quarter, we continue to expect fee income for our retirement business to be stable.

本季退休參與者人數增加了 1.5%。新業務生產持續強勁，今年新增業務機會超過 500 個。對於第四季度，我們繼續預期退休業務的費用收入將保持穩定。

Turning to Page 17, you can see some highlights from our wealth management business. On a linked quarter basis, revenues increased 5.1%, while our end of quarter assets under management increased 5.4% due to continued improvement in economy bond markets. For the fourth quarter, excluding any market impact, we expect fee income from our wealth business to be up slightly.

翻到第17頁，您可以看到我們財富管理業務的一些亮點。按季度計算，收入增長了 5.1%，而由於經濟債券市場的持續改善，我們季度末管理的資產增長了 5.4%。對於第四季度，排除任何市場影響，我們預期財富業務的費用收入將小幅成長。

Page 18 provides an overview of our non-interest expense. Third quarter non-interest expense increased 9.5%. Third in the quarter, we did incur $1.7 million of onetime merger-related expenses related to the recently completed acquisition of HMN Financial. Excluding these merger expenses, core non-interest expense increased 7.6%.

第 18 頁概述了我們的非利息支出。第三季非利息支出成長9.5%。第三季度，我們確實因最近完成的 HMN Financial 收購而產生了 170 萬美元的一次性合併相關費用。剔除這些合併費用，核心非利息費用增加了 7.6%。

Compensation and benefits saw an increase due to the onboarding of the equipment finance team, additional key hires and from an increase in employee benefits. We also saw an $800,000 increase in professional fees, excluding M&A-related activity due to increased examination and audit expenses.

由於設備財務團隊的加入、關鍵人員的增加以及員工福利的增加，薪資和福利增加。我們還發現專業費用增加了 80 萬美元，不包括因檢查和審計費用增加而導致的併購相關活動。

For the fourth quarter, reported expenses will increase due to merger of acquisition expenses related to home Federal deal. For 2026 -- 2025, we are still committed to achieving 30% copies announced in the Home Federal acquisition.

第四季度，由於與本土聯邦交易相關的收購費用合併，報告費用將增加。2026 - 2025 年，我們仍致力於實現 Home Federal 收購中宣布的 30% 副本。

Turning to Page 19, you can see our credit metrics. As Katie covered a lot of this in her prepared remarks, I'll open the next slide. I will discuss our capital liquidity on Page 20. We continue to remain very well capitalized as a common equity Tier 1 capital to risk-weighted assets of 11.1%. Our tangible common equity ratio also improved 85 basis points to 8.11% as we saw an improvement in unrealized losses, and we repaid the BTFP.

翻到第 19 頁，您可以看到我們的信用指標。由於凱蒂在她準備好的演講中涵蓋了很多內容，我將打開下一張幻燈片。我將在第 20 頁討論我們的資本流動性。我們持續維持良好的資本狀況，普通股一級資本佔風險加權資產的比例為 11.1%。我們的有形普通股比率也提高了 85 個基點，達到 8.11%，因為我們看到未實現損失有所改善，並且我們償還了 BTFP。

Post the acquisition of Home Federal now have an outstanding share of over $25.3 million, which is in line with our original deal assumptions. Additionally, we also added over $868 million of loans and $952 million of deposits.

收購 Home Federal 後，目前已發行股份超過 2,530 萬美元，符合我們最初的交易假設。此外，我們還增加了超過 8.68 億美元的貸款和 9.52 億美元的存款。

On the bottom right, you'll see the breakdown in the sources of our $2.2 billion of potential liquidity. Overall, we continue to remain well positioned for both the liquidity and capital standpoint to support future growth or whether any uncertainty.

在右下角，您將看到 22 億美元潛在流動性來源的明細。總體而言，我們在流動性和資本方面繼續保持有利地位，以支持未來的成長或是否存在任何不確定性。

Summarizing Page 21, we continue to see strong organic loan growth, which offset any seasonal outflows. We continue to see positive momentum in our retirement and wealth businesses, while seasonal capital levels remain strong to weather any economic uncertainty.

總結第 21 頁，我們繼續看到強勁的有機貸款成長，抵消了任何季節性資金外流。我們的退休和財富業務繼續保持積極勢頭，而季節性資本水平仍然強勁，可以應對任何經濟不確定性。

With that, I will now open up for Q&A.

現在，我將開始問答環節。

(Operator Instructions)

（操作員說明）

Jeff Rulis, D.A. Davidson & Co.

傑夫·魯利斯，D.A.戴維森公司

Thanks. Good morning. Question on the larger credit, I guess, on non-accrual, as you extend were to potentially put yourself in a good position there. I guess, is that capped the extension of credit to that the construction item? Or is there more come to kind of get it over to completion? And then I guess, secondarily, could you just remind us kind of where that is located and the time line on resolution?

謝謝。早安.我想，關於更大的信用的問題，關於非應計的，因為你有可能使自己處於有利的位置。我想，這是否限制了該建築專案的信貸擴張？還是還有更多的事情可以完成？然後我想，其次，你能提醒我們它的位置以及解決的時間軸嗎？

Sure, Jeff, this is Karen. Yes. We continue to evaluate a number of options with regard to this particular credit. If you recall from last time, the borrower has been proactive in injecting equity into project cover overruns. It went to non-accrual because additional equity injections were delayed. They continue to try and source additional update. That said, we will look at a range of options as we determine how to best resolve the credit.

當然，傑夫，這是凱倫。是的。我們將繼續評估與此特定信用相關的多種選擇。如果您還記得上次的情況，借款人一直在積極主動地為專案超支注入股本。由於額外的股權注入被推遲，它變成了非應計利潤。他們繼續嘗試獲取更多更新。也就是說，在確定如何最好地解決信貸問題時，我們將考慮一系列選擇。

It is here in the in cities market. It's on the east side and cities, relatively close to both downtown. St. Paul downtown Minneapolis. It's well located to entertainment, to public transportation, It's a Class A property in inferable locations.

它位於城市市場。它位於城市的東側，距離市中心相對較近。明尼阿波利斯市中心的聖保羅。它地理位置優越，方便前往娛樂場所和公共交通，是一家位於可推斷位置的 A 級酒店。

So we continue to feel good about the market dynamics and the market ability to support that property. It is about 87% complete at this point, and we're looking at early 2025 for completion. Obviously, we're doing everything we can to resolve as quickly as possible, but I don't have a firm time line for you.

因此，我們繼續對市場動態和支持該房產的市場能力感到滿意。目前已完成約 87%，我們預計將於 2025 年初完成。顯然，我們正在盡一切努力盡快解決問題，但我沒有給你一個確定的時間表。

Okay. I appreciate it. Thanks, Karen. On the expense side, Katie, I think you have -- I guess, I'm interested in those areas that aren't necessarily -- that were operational, but maybe not recurring. We can carve out the one-timers, but I guess of the areas that were elevated trying to get a sense for the comp line. Are those hires fully baked in and then maybe professional services, just some areas that you may see maybe tail off potentially that aren't recurring, if you will.

好的。我很感激。謝謝，凱倫。在費用方面，凱蒂，我認為你有——我想，我對那些不一定是可操作的領域感興趣，但可能不會經常出現。我們可以剔除一次性的，但我猜想那些被提升的領域試圖了解補償線。這些員工是否已經完全融入其中，然後可能是專業服務，只是您可能會看到的一些領域可能會逐漸減少，但如果您願意的話，這些領域可能不會重複出現。

Sure. Yes. In regards to the professional fees. I would expect to see more normalization if you take the run rate for the past couple of quarters ex the M&A. There's some lumpiness in between the second quarter and third quarter. I would say for both the compensation line as well as the professional fees line item.

當然。是的。關於專業費用。如果你考慮過去幾個季度除併購之外的運行率，我預計會看到更多的正常化。第二季和第三季之間存在一些波動。我想說的是薪酬項目和專業費用項目。

Okay. I guess on a core basis to Al's commentary, I mean, ex -- the added platform, you're bringing on legacy expenses, can we expect flat to down? Trying to get a sense for what the trend is there?

好的。我想在阿爾評論的核心基礎上，我的意思是，增加的平台，你帶來了遺留費用，我們可以期望持平或下降嗎？想要了解目前的趨勢嗎？

So Jeff, you're going to see just on a reported basis, so our expenses, we are going to combine mergers. But on a standalone basis, if you were just to look at us, we are committed to getting that down. But from a combined entity because we're now two companies getting combined up, you will see reported expenses, of course, go up. We're committed to the 30% cost saves -- 30-plus percent cost saves that we detailed out in our original performance for the deal.

所以傑夫，你只會在報告的基礎上看到我們的開支，我們將合併合併。但在獨立的基礎上，如果你只是看看我們，我們致力於將其降低。但從合併後的實體來看，因為我們現在是兩家公司合併，所以您會看到報告的費用當然會增加。我們致力於節省 30% 的成本——我們在最初的交易績效中詳細說明了 30% 以上的成本節省。

Yes. I guess I'm trying to get a sense for -- we could track the expenses on HMN side and what that potentially could add. We can carve out cost saves in '25. But just the run rate for legacy that's the key I'm trying to nail down.

是的。我想我正在嘗試了解——我們可以追蹤 HMN 方面的費用以及可能增加的費用。我們可以在 25 年內節省成本。但遺留系統的運作率才是我想要確定的關鍵。

Yes. Yes, you would expect that to come down.

是的。是的，你會期望這個數字會下降。

Okay. Yes. Got you. Maybe just one last one then on the loan growth. Really strong growth, Katie. I appreciate the tilted towards the market share gains to the degree of -- I guess, does that suggest that the market overall, maybe the pie is not growing, you're just taking a bigger piece of that? Or question really is just on the underlying business trends and activity. Is that improving some, but you're executing well on taking share. I just wanted to kind of wade into that discussion a little bit more.

好的。是的。明白你了。也許只是關於貸款成長的最後一項。凱蒂，成長真的很強勁。我很欣賞市佔率成長的程度——我想，這是否表示整個市場，也許蛋糕並沒有變大，你只是從中分得更大的一塊？或者問題實際上只是關於潛在的業務趨勢和活動。這是否有所改善，但您在獲取份額方面表現良好。我只是想進一步深入討論。

Jeff, this is Jim. That is taking market share. We brought in a lot of talent over the last 18 months. Those non-solicits are up. So a lot of the relationships that are moving over, and we're seeing that in the growth. Our relationships that have been known to a lot of the employees here now that have come over for a long time. So it is market share in some of the other banks that are probably resting on the lowers a little bit.

傑夫，這是吉姆。那就是搶佔市佔率。在過去 18 個月裡，我們引進了許多人才。那些不招攬的人都起來了。很多關係正在發生變化，我們也看到了這段關係的成長。我們的關係已經為這裡的許多員工所熟知，而且已經持續很久了。因此，其他一些銀行的市場份額可能會略有下降。

Okay. And Jim, your pulse on the activity, generally speaking, of the market from demand, what would that be?

好的。吉姆，一般來說，您對市場活動的脈搏來自需求，那會是什麼？

I think all the markets that we're currently in are in pretty good economic shape. There's not a ton of robust growth, I would say, but pretty average. So I don't think there's a lot of growth exponentially, but there's enough growth for us as other banks are still not overly active in the marketplace. I think our activities are going to generate a lot as the market competition comes back. our activities now are going to be more fruitful in the '25 to '26 just because they haven't -- a lot of the banks haven't been in the market as much as we have been.

我認為我們目前所處的所有市場的經濟狀況都相當良好。我想說，成長不是很強勁，但相當平均。因此，我認為成長不會呈指數級增長，但對我們而言，成長已經足夠了，因為其他銀行在市場上仍然沒有過於活躍。我認為隨著市場競爭的恢復，我們的活動將會產生許多成果。我們現在的活動將在 25 年至 26 年期間更加富有成效，因為許多銀行還沒有像我們一樣頻繁地進入市場。

Okay, appreciate it. Thank you.

好的，欣賞一下。謝謝。

David Feaster, Raymond James.

大衛‧菲斯特，雷蒙德‧詹姆斯。

Hi, good morning, everybody. I wanted to dig into the margin for a second. Look, there's a lot of moving parts in here. I was hoping you could just help us think through maybe like a core margin what's a good starting point? Look, we've unwound the BTFP. You got HNMF in the fold. Just thinking through the trajectory, again, you got the non-accrual reversal in the last quarter.

嗨，大家早安。我想深入探討一下邊緣。看，這裡有很多活動部件。我希望你能幫助我們思考一下，也許像核心利潤一樣，什麼是一個好的起點？看，我們已經解開了 BTFP。你得到了 HNMF。再次思考軌跡，你會在上個季度得到非應計逆轉。

Just how do you think about a good core margin starting point, the trajectory going forward as your liability, sensitivity had improved. And if you had any updated expectations for accretion just on rate marks now the deals closed.

您如何看待良好的核心利潤起點、隨著您的責任、敏感度的改善而前進的軌跡。如果你對利率成長有任何更新的預期，那麼現在交易已經結束了。

Thanks, David. So with September on a legacy portfolio with an interest margin of around 2.41%. When you think about the acquired portfolio, HMN portfolio, their net interest margin is around 2.8% for the third quarter, okay? So those are both quarter-to-quarter, no deal marks, of course.

謝謝，大衛。因此，9 月的遺留投資組合的息差約為 2.41%。當你考慮收購的投資組合 HMN 投資組合時，他們第三季的淨利差約為 2.8%，好嗎？所以這些都是季度環比，當然沒有交易標記。

Now on a going forward basis, we did indicate about a $54.2 million mark, on the loan book. We're still waiting back on the final valuation there, but we do expect that $54.2 million on original deal assumptions to be a little bit less given where the rates have moved since our announcement in May. So we'll have less income accretion -- purchase account accretion to net interest income for next year in terms of deal accretion, but we also will have less goodwill because of the marks.

現在，展望未來，我們確實在貸款簿上註明了大約 5,420 萬美元。我們仍在等待最終估值，但考慮到自 5 月宣布以來利率的變化，我們預計最初交易假設的 5,420 萬美元會略少一些。因此，我們的收入增加將會減少——就交易增加而言，購買帳戶增加明年的淨利息收入，但由於這些標記，我們的商譽也會減少。

Okay. Okay. And then just how do you think about deposit betas on the way down? You talked a lot about the competitive landscape in your market for deposits. That's obviously well on the margin. How do you think about the competitive landscape maybe impacting your ability to reprice deposits on the way down? I mean is that going to make it may be a bit more difficult to do that? And just curious how you think about that and some of the assumptions in your outlook?

好的。好的。那麼您如何看待存款貝塔值的下降？您談到了許多存款市場的競爭格局。這顯然是在邊緣。您如何看待競爭格局可能會影響您在存款下跌時重新定價的能力？我的意思是，這是否會使做到這一點變得更加困難？只是好奇您如何看待這一點以及您的展望中的一些假設？

Yes. We've been pretty conservative in our assumptions in terms of deposit betas. We do expect deposit betas -- I mean our deposit pricing to lag a little bit on the way down because given how many banks are still north of 100% loan-to-deposit ratio and still continued. Again, in this quarter, we saw migration from noninterest-bearing to interest-bearing too, which increased our cost of funds.

是的。我們對存款貝塔值的假設相當保守。我們確實預計存款貝塔值——我的意思是我們的存款定價在下降過程中會稍微滯後，因為考慮到有多少銀行仍處於 100% 貸存比之上並且仍在持續。同樣，在本季度，我們也看到了從無息向有息的轉變，這增加了我們的資金成本。

So in terms of the betas, now we are seeing some rationalization though, because we did see in all our market CD rates pull back some. So that is encouraging to see some of that now. We're not seeing stuff in the high 5s or 6s anymore. We're now seeing things come back, especially with the Fed cut. But I do think deposit betas on the way down will be a little bit slower to realize than probably take another 50 basis points to 100 basis points before we start seeing meaningful shift in deposit costs.

因此，就貝塔值而言，現在我們看到了一些合理化，因為我們確實看到所有市場的 CD 利率有所回落。所以現在看到其中的一些是令人鼓舞的。我們再也看不到高 5 或 6 的東西了。我們現在看到情況正在好轉，尤其是在聯準會降息的情況下。但我確實認為，在我們開始看到存款成本發生有意義的變化之前，存款貝塔值的下降速度可能會比再下降 50 個基點到 100 個基點要慢一些。

So that just kind of putting that all together, your margin trajectory is probably going to be more back half weighted for the expansion side. Is that a fair characterization?

因此，將所有這些放在一起，您的利潤軌跡可能會更多地為擴張側加權。這是一個公平的描述嗎？

Yes, that's correct. That's correct. I think when we still look at our ALM modeling, based on what we're seeing still though, and I'm talking about any deal marks, we're looking on a legacy book right now because we're still importing a lot of stuff in understanding the HMN portfolio. When we look at our legacy Alerus book, we still see a past 3% with even that lag effect coming in. So nothing has changed right with no rate cuts, we still get to 3% in 2026. And on the to add there, too, that David, just the last thing I'll add to is on a down 100 basis points scenario, we still see our NII increasing in the legacy book about mid-single digits.

是的，這是正確的。這是正確的。我認為，當我們仍然查看我們的 ALM 建模時，基於我們仍然看到的內容，並且我正在談論任何交易標記，我們現在正在查看一本舊書，因為我們仍在導入大量理解HMN 產品組合的東西。當我們查看我們遺留的 Alerus 書籍時，我們仍然看到過去 3%，甚至存在滯後效應。因此，如果不降息，一切都沒有改變，2026 年我們的利率仍將達到 3%。還要補充一點，大衛，我要補充的最後一件事是在下降 100 個基點的情況下，我們仍然看到我們的 NII 在傳統書中增加了大約中個位數。

Okay. Good point. That's a good point. And then just last one. You've had a lot of success in the retirement and wealth businesses. I appreciate some of the commentary that you had. You talked about some successes on national partners. I'm just curious where you're seeing success in those lines of business?

好的。好點。這是一個很好的觀點。然後就是最後一張。您在退休和財富業務方面取得了巨大的成功。我很欣賞你的一些評論。您談到了國家合作夥伴取得的一些成功。我只是好奇您在這些業務領域的成功之處在哪裡？

And then just following up on the commentary about improving efficiency. I mean profitability has come down pretty much in those businesses. I'm just kind of curious when do think that that's going to start manifesting itself? And how do you think about the profitability profile of those businesses?

然後跟進有關提高效率的評論。我的意思是這些企業的獲利能力大幅下降。我只是有點好奇什麼時候這會開始顯現出來？您如何看待這些企業的獲利狀況？

Yes, I can take that. This is Forrest. I can take that for the retirement business. One of the other benefits to this business is it's very steady business, but we do anticipate margins to improve really in response to the groundwork that we're laying in three areas: in efficiency, increased revenue and reduced client turnover.

是的，我可以接受。這是福雷斯特。我可以把它用於退休業務。這項業務的其他好處之一是它的業務非常穩定，但我們確實預期利潤率會真正提高，以響應我們在三個領域奠定的基礎：效率、增加收入和減少客戶流失率。

And Katie mentioned some of that in her opening comments, but we're moving forward multiple efforts in each of these areas, including upgrading some technology that we're very excited about working on process improvement and forming new partnerships, which you specifically mentioned.

凱蒂在她的開場白中提到了其中的一些內容，但我們正在每個領域推進多項努力，包括升級一些技術，我們對流程改進和建立新的合作夥伴關係感到非常興奮，您特別提到了這一點。

I think there's about 10-plus states now that have state-mandated retirement plans and a lot of private companies do not want to go with the state plan, and it's definitely -- there's a groundswell of startup plans, which with our path are pooled employer plan model, we're taking advantage of, and that's leading to some significant partnerships, one that we could highlight is our partnership with MassMutual financial advisers that has yielded north of 150 new retirement plan clients in the last 14 months or so. So as far as margins go, we anticipate expanding margins through these various efforts, but it's going to be steady over time.

我認為現在大約有 10 多個州制定了國家強制的退休計劃，許多私營公司不想遵守州計劃，而且肯定有大量的初創計劃，這些計劃與我們的道路匯集在一起我們正在利用雇主計劃模式，這導致了一些重要的合作夥伴關係，其中我們可以強調的一個是我們與萬通互助理財顧問的合作夥伴關係，在過去14 個月左右的時間裡，該合作夥伴關係已經產生了超過150 名新的退休計劃客戶。因此，就利潤率而言，我們預計透過這些各種努力會擴大利潤率，但隨著時間的推移，利潤率將保持穩定。

Okay. Thanks, everybody.

好的。謝謝大家。

Thanks, David.

謝謝，大衛。

Brendan Nosal, Hovde.

布倫丹·諾薩爾，霍夫德。

Hey, everybody. Thanks for taking my question. -- Maybe just to unpack like this quarter's margin before we get into the outlook here, could you help us understand some of the drivers of the loan and earning asset yield pressure? I guess, one, how much of a drag came to non-accrual piece? And is that recurring as long as those loans may not accrual and then two, was there any impact from the swap maturity in this quarter. Thanks.

嘿，大家。感謝您提出我的問題。 -- 也許只是在我們進入展望之前先了解本季的利潤率，您能否幫助我們了解貸款和獲利資產收益率壓力的一些驅動因素？我想，第一，非應計部分有多少拖累？只要這些貸款可能不會累積，那麼就會重複出現，然後是兩筆，本季的掉期到期是否有任何影響。謝謝。

Yes. Thanks, Brendan. So nothing on the swap maturity when it comes to the non-accruals, you could see that about roughly around 7 basis points to 8 basis points was from the non-accruals.

是的。謝謝，布倫丹。因此，當涉及非應計費用時，掉期期限沒有任何變化，您可以看到大約 7 個基點到 8 個基點來自非應計費用。

And does that drag stick around as long as those bonds are on non-accrual? Or is that more of an interest reversal?

只要這些債券是非應計債券，這種拖累就會一直存在嗎？或者這更像是一種利益逆轉？

There will be a reversal.

將會出現逆轉。

So that 8 basis points drag will not be present in the fourth quarter, just to make sure I understand completely clearly.

因此第四季不會出現8個基點的拖累，只是為了確保我完全清楚地理解。

Yes, that should not be there. Correct.

是的，那不應該在那裡。正確的。

Okay. Got it. Okay, thank you. And then as the rest of the swap book rolls off, as it is pertaining to timing versus where the terms of those stats are versus where Fed funds is? Is there any kind of intermediate impact one way or the other as those fall off the --

好的。知道了。好的，謝謝。然後，隨著掉期帳簿的其餘部分的滾動，因為它與時間安排、這些統計數據的條款與聯邦基金的情況有關？當這些東西從上面掉落時，是否會以某種方式產生任何中間影響？--

No. I mean what we're anticipating in this quarter is a slight decrease in our -- on the legacy interest expense. But we should start seeing margin improvement going forward because the swaps, we had $200 million rolling off here in January. Then we only have another $200 million left from January 2026. So there will be a very minor impact left from the remaining swap.

不。我的意思是，我們預計本季的遺留利息支出將略有下降。但我們應該開始看到未來利潤率的改善，因為我們在一月份的掉期交易中已經減少了 2 億美元。那麼從 2026 年 1 月起我們就只剩下 2 億美元了。因此，剩餘掉期的影響非常小。

Okay. Okay. Perfect. And then maybe last one on mortgage. I know you've kind of offered the guidance for the fourth quarter there. I mean, for this quarter, it seemed like things were better than I was thinking, even though originations were down kind of the core gain on sale was quite a bit stronger quarter-over-quarter. Just wondering if there's anything that was kind of worth calling out for the third quarter performance.

好的。好的。完美的。然後也許是最後一筆抵押貸款。我知道您已經提供了第四季度的指導。我的意思是，就本季而言，情況似乎比我想像的要好，儘管起始數量有所下降，但銷售的核心收益比上一季強得多。只是想知道第三季的表現是否有什麼值得稱讚的地方。

No, we did disciplined pricing in that area is what really helped in the mortgage area. Hence why you saw the better gain on sale.

不，我們在該領域進行了嚴格的定價，這對抵押貸款領域確實有幫助。這就是為什麼你在銷售中看到了更好的收益。

Thank you for taking my questions.

感謝您回答我的問題。

Thanks, Brendan.

謝謝，布倫丹。

(Operator Instructions).

（操作員說明）。

Nathan Race, Piper Sandler.

內森·雷斯，派珀·桑德勒。

Hi, everyone. Good morning. Thanks for taking my questions. Just put all the pieces together on the margin outlook and just the impact from Home Federal. Al, can you just help us with kind of a 4Q starting point, both on a core and reported basis?

大家好。早安.感謝您回答我的問題。只需將利潤前景的所有部分以及來自家庭聯邦的影響放在一起即可。Al，您能否協助我們提供一個 4Q 起點，無論是在核心基礎上還是在報告基礎上？

Yes. So I would look at it, it's like Home Federal at 2.8% take 20% of that and then 80% as around 2.4%, you're going to get to somewhere in the mid-2s like 2.5-ish.

是的。所以我會看一下，就像 2.8% 的聯邦家庭稅率為 20%，然後 80% 為 2.4% 左右，你會達到 2 左右的水平，例如 2.5 左右。

So you're talking margin, I was referring to NII.

所以你說的是保證金，我指的是NII。

I'm sorry, for NII, my bad. Sorry. When we talk about NII, we're looking at right now, let me just get that number up for you. Because we're doing about, I'm going to say, around $32 million to $33 million in total for NII.

對不起，NII，我的錯。對不起。當我們談論 NII 時，我們現在正在考慮，讓我為您提供這個數字。因為我想說，我們為 NII 總共投入了約 3,200 萬至 3,300 萬美元。

That's kind of the starting 4Q with Home Federal?

這就是 Home Federal 第 4 季的開始？

Yes. without any deal marks.

是的。沒有任何交易標記。

Right, right. And just thinking about the opportunity to maybe deleverage the balance sheet at Home Federal. Any other balance sheet optimization initiatives that could come to fruition with that deal? Just curious to hear any thoughts as it relates to your loan sales or just securities portfolio restructuring that could help that margin outlook as we get through the integration into early 2025?

對，對。只是想也許可以對聯邦內政部的資產負債表進行去槓桿化。任何其他資產負債表優化舉措可以透過該交易實現？只是想聽聽與您的貸款銷售或證券投資組合重組有關的任何想法，這些想法可以幫助我們在 2025 年初完成整合時提高利潤率前景？

Yes. So we already looked at doing some loan sales for that, we're contemplating laying off options on the loan front. On the securities front, you can expect that we're going to make -- we've done some stuff on that front to help with NII. But the lift from the securities book because they only had about $190 million worth of securities is going to be very small.

是的。因此，我們已經考慮為此進行一些貸款銷售，我們正在考慮取消貸款方面的選擇。在證券方面，您可以預期我們將在這方面做一些事情來幫助 NII。但由於他們只有價值約 1.9 億美元的證券，因此證券帳簿的提升將非常小。

Okay. Perfect. Very helpful. And then just in terms of just the rate sensitivity of the combined franchise going forward. I think we talked about the liabilities since the position of the balance sheet previously. You have some swaps going off next year. So just curious how you're kind of thinking about just the static margin or NII impact from each 25 basis points going forward.

好的。完美的。非常有幫助。然後就合併後的特許經營權未來的利率敏感度而言。我想我們之前討論過資產負債表中的負債。明年會有一些互換。所以只是好奇您如何考慮未來每 25 個基點的靜態邊際或 NII 影響。

Yes. We're still working through that right now as we get our two systems merged in place. But what we could see from the surface right now is that they're liability sensitive, so that's just going to add to liability sensitivity that we have.

是的。當我們將兩個系統合併到位時，我們仍在努力解決這個問題。但我們現在從表面上可以看到，他們對責任敏感，所以這只會增加我們的責任敏感度。

Got it. Thanks for that. Switching gears, maybe a question for Karen. Curious if you could just touch on what you saw in terms of criticized classified loan trends in the quarter?

知道了。謝謝你。換檔，也許是凱倫的問題。想知道您能否談談您在本季受到批評的分類貸款趨勢方面所看到的情況嗎？

Sure. Good morning, Nate. We did see those increase again. What I would say about that is that while we've been experiencing increases, overall levels are fairly consistent with what we saw pre-pandemic. And so the non-performing obviously, are higher, and those are being driven over half of that by that load. So those are higher than what we've experienced in the past. But generally speaking, the criticized and classified levels are more consistent with pre-pandemic.

當然。早安，內特。我們確實看到這些再次增加。我想說的是，雖然我們一直在經歷成長，但整體水平與我們在大流行前看到的水平相當一致。因此，不良績效顯然更高，而其中一半以上是由該負載驅動的。所以這些比我們過去經歷過的還要高。但整體而言，批評和分類的程度與疫情前較為一致。

And when you look past these few credits that Katie pointed out in her comments, there's they're really made up of all different segments. Even the asset classes within the commercial real estate are different and then origination date. Kind of span all the way back actually since mid-2015. And so I think really what we're seeing is we're seeing some continued normalization, which is an unexpected, but then we've got these couple of big deals that are really costing those nonperforming numbers.

當你回顧凱蒂在評論中指出的這幾個片尾字幕時，你會發現它們實際上是由所有不同的部分組成的。甚至商業房地產中的資產類別和起始日期也不同。實際上可以追溯到 2015 年中期。因此，我認為我們真正看到的是我們正在看到一些持續的正常化，這是出乎意料的，但隨後我們進行了幾筆大交易，這些交易確實讓那些不良數字付出了代價。

Got it. That's very helpful. Maybe one last question for me for Katie. Now that you got Home Federal closed in a pretty timely fashion here in the fourth quarter. I would just love to hear your updated perspective in terms of managing excess capital. Obviously, with the profitability improvement with Home Federal, you guys should be accreting excess capital at stronger clips going forward.

知道了。這非常有幫助。也許我要問凱蒂最後一個問題。現在，Home Federal 在第四季非常及時地關閉了。我很想聽聽您在管理過剩資本方面的最新觀點。顯然，隨著 Home Federal 獲利能力的提高，你們應該在未來以更強勁的速度累積過剩資本。

So just curious how you're thinking about weighing those options and deploying excess capital between additional acquisitions, whether it's on the retirement or wealth side or in terms of whole big acquisitions or perhaps resuming share repurchases just given where the stock is trading.

因此，我只是好奇您如何考慮權衡這些選擇並在額外收購之間部署多餘的資本，無論是在退休或財富方面，還是在整個大型收購方面，或者可能只是在股票交易的情況下恢復股票回購。

Sure. Yes. Thank you. In regards to capital, our priorities remain consistent with the previous quarters. Our growth is certainly a key priority to maintain our fortress balance sheet is always number one in our priority books.

當然。是的。謝謝。在資本方面，我們的優先事項與前幾季保持一致。我們的成長無疑是一個關鍵優先事項，以保持我們的堡壘資產負債表始終在我們的優先事項中排在第一位。

Our commitment to our dividend remains consistent with our long history. And as I mentioned in my opening comments, we understand the value embedded in this company. And so having the share repurchase out there from a defensive standpoint, I think, serves the ball well.

我們對股利的承諾與我們悠久的歷史保持一致。正如我在開場白中提到的，我們了解這家公司所蘊含的價值。因此，我認為，從防守的角度來看，回購股票是有好處的。

In regards to M&A, again, there's a couple of catalysts particularly in the retirement space for some scale providers. And we are known and have proven that we are a partner of choice for many of those companies, we'll be highly flexed of course, because there's a lot of work that we're doing internally in that business, but we believe we're looking to see opportunities specifically in that retirement as well as in the space.

在併購方面，同樣存在一些催化劑，特別是在某些規模提供者的退休領域。我們眾所周知並且已經證明我們是許多這些公司的首選合作夥伴，當然我們會高度靈活，因為我們在該業務內部做了很多工作，但我們相信我們」我們正在尋找特別是在退休和這個領域的機會。

Yeah, very helpful. Thanks for all the color.

是的，非常有幫助。感謝所有的顏色。

Thanks, Nate.

謝謝，內特。

Damon DelMonte, KBW.

達蒙·德爾蒙特，KBW。

Hi, everyone. Thanks for taking my question. First one, just regards to expenses. Al, kind of just wondering what your thoughts are on the combined company here in the fourth quarter. I think you guys mentioned the wealth management platform upgrade you guys are going to be doing. So just trying to get a gauge on kind of what we could expect here in the fourth quarter.

大家好。感謝您提出我的問題。第一個，只是關於費用。艾爾，我想知道您對第四季度合併後的公司有何看法。我想你們提到了你們將要進行的財富管理平台升級。因此，我只是想了解我們對第四季的預期。

Yes. Damon, I'm going to say that fourth quarter is going to be a little messy here because we're going to have a lot of the deal expenses flowing through especially contract terminations and onboarding of new stuff. So I don't have a good guide for you at this moment in terms of the fourth quarter run rate. But what I could say for the '25 run rate is that we are looking once you get pass all the deal costs and everything from a combined basis that we're still on track to meeting all the goals we set for in 2025.

是的。達蒙，我想說第四季會有點混亂，因為我們將有大量的交易費用，特別是合約終止和新員工的加入。因此，目前我對第四季的運作率沒有很好的指導。但對於 25 年的運行率，我想說的是，一旦你通過了所有交易成本以及綜合基礎上的所有內容，我們仍然有望實現 2025 年設定的所有目標。

Okay. Yes. And I understand there'll be a lot of moving parts. But I mean is the simple way of looking at it is -- if you take out the merger this quarter, you're around $40.8 million today, basically layer on the HMNF expense base and then start to take off some expenses, which would kind of put you in the upper $47 million, low $48 million range. Is that ballpark?

好的。是的。我知道會有很多變動的部分。但我的意思是，簡單的看待它的方法是- 如果你在本季度進行合併，那麼今天你的收入約為4080 萬美元，基本上是在HMNF 費用基礎上，然後開始扣除一些費用，這將有助於的範圍為 4700 萬美元上限和 4800 萬美元下限。那是球場嗎？

That's the way to think about it, right, on a core basis. Correct.

這就是在核心基礎上思考它的方式。正確的。

Okay. Great. And then with regards to the two new loans that moved into non-accrual this quarter, Could you just scale a little bit more color, one of them was a large residential relationship. Like how big was it? And what kind of reserves do you have against that?

好的。偉大的。然後，關於本季轉為非應計利息的兩筆新貸款，您能否稍微增加一點色彩，其中之一是大型住宅關係。例如它有多大？你對此有何儲備？

Yes. Damon, this is Karin. That relationship was about -- is about $8.5 million. And it's comprised of an owner-occupied property as well as the previous property that's listed for sale. The current reserve on is about 5%, and we will be getting updated valuations on both of those properties.

是的。戴蒙，這是卡琳。這段關係的價值約為 850 萬美元。它由業主自住的房產以及之前掛牌出售的房產組成。目前的儲備金約為 5%，我們將獲得這兩個房產的最新估值。

Okay. Great. Great. So both of those were to one borrower. One part of it was residential and one was owner-occupied?

好的。偉大的。偉大的。所以這兩筆錢都是給一位借款人的。其中一部分是住宅，另一部分是業主自用？

It's a long-term Banking and Wealth clients, as Kate mentioned, and he had a primary residence, constructed a new residents, which we financed. And so both of those residents are single-family residences. And he is in the new home now and the previous homes listed for sale.

正如凱特所提到的，這是一個長期的銀行和財富客戶，他有一個主要住所，建造了一個新的居民，我們為其提供資金。所以這兩個居民都是單戶住宅。他現在住在新房子和掛牌出售的以前的房子裡。

Got it. Okay. And then with regard to the construction loan, this may have been asked before, so I apologize. But is there any additional funds to be released to this borrower to help complete the project? Or are you at full exposure right now?

知道了。好的。然後關於建設貸款，這個可能之前已經問過，所以我很抱歉。但是否有任何額外資金可以發放給該借款人以幫助完成該專案？或者你現在處於完全暴露狀態嗎？

We're a full exposure on that deal.

我們對該交易有充分的了解。

Okay. And then that's at about how much now 20, is it upper 20s?

好的。那麼現在大約是20歲，是20多歲嗎？

I'm sorry, you're talking about the original deal. I thought you were talking about the residential deal. No, I'm sorry.

抱歉，你說的是原來的交易。我以為你在談住宅交易。不，對不起。

I'm talking about the Construction loan, yes. Sorry.

我說的是建築貸款，是的。對不起。

Okay. Yes. That one, we're considering -- we still are considering a number of options on that one, Damon. The borrower is continuing to try to raise equity. They've demonstrated their willingness to inject equity. And so we're supporting that process. But certainly, additional fundings may be on the table as we look at how we can most quickly resolve this.

好的。是的。我們正在考慮這一點——我們仍在考慮關於這一點的多種選擇，達蒙。借款人正在繼續嘗試籌集股本。他們已經表明了注入股權的意願。所以我們支持這個過程。但當然，當我們考慮如何最快解決這個問題時，可能會考慮額外的資金。

Got you. Okay. And have you quantified what the total exposure is to that one particular borrower?

明白你了。好的。您是否量化了某一特定借款人的總風險敞口？

Right now, as of 9/30, the balance was $25 million, and the approved -- or they're approved up to just under $29 million.

目前，截至 9 月 30 日，餘額為 2500 萬美元，而批准的——或者說已批准的金額高達近 2900 萬美元。

Great. Okay. That's helpful. Thank you. I think that covers everything. So thanks very much.

偉大的。好的。這很有幫助。謝謝。我認為這涵蓋了一切。非常感謝。

David Feaster, Raymond James.

大衛‧菲斯特，雷蒙德‧詹姆斯。

Thanks for letting me hop back in. I just wanted to touch on the hiring front. You got you guys have been really active. You've attracted a lot of new talent. I'm curious, I guess, what's your appetite for new hires. And how much of the production -- like how much of the growth that you're seeing from those guys? Or is that kind of still on the come?

謝謝你讓我跳回來。我只是想談談招募方面的問題。你們真的很活躍。你們吸引了很多新的人才。我想我很好奇你對新進員工的興趣是什麼。以及你從這些人身上看到了多少產量——例如有多少成長？或者這種情況還在發生嗎？

David, this is Jim. I will say we're still active on hires, but I do want to note we are -- as we have some individuals leaving the organization, we are repurposing those FTEs for a lot of the new hires. The growth is coming from those new hires because they have capacity and relationships that are new, but we also have a lot of growth coming from our existing traditional portfolios as well.

大衛，這是吉姆。我想說的是，我們仍然在積極招募員工，但我確實想指出，由於我們有一些人離開了組織，我們正在為許多新員工重新調整 FTE 的用途。成長來自這些新員工，因為他們擁有新的能力和關係，但我們也有很多成長來自我們現有的傳統投資組合。

Okay. Okay. And I guess, as you think about funding growth going forward, we've kind of talked about a mid-90s loan-to-deposit ratio. Is that kind of still the target. And how do you think about funding growth with core deposits in light of the competition that you talked about?

好的。好的。我想，當你考慮未來的融資成長時，我們已經討論過 90 年代中期的貸存比。那還是目標嗎？鑑於您談到的競爭，您如何看待透過核心存款為成長提供資金？

Yes. Thanks, David, thank for the question. I mean that ends our target is 95%, but we understand too that will drift up above that certain quarters due to seasonality. So you could see us get up to 97%, 98% and maybe some quarters below 95%. So the average will get to 95% through the cycle. But with that being said, too, though, as we continue to grow, we will probably be utilizing other areas other means to fund those growth if we can get core deposits in the door.

是的。謝謝大衛，謝謝你的提問。我的意思是，我們的目標是 95%，但我們也知道，由於季節性原因，目標會高於某些季度。所以你可以看到我們達到了 97%、98%，也許某些季度低於 95%。因此，整個週期的平均值將達到 95%。但話雖如此，隨著我們的不斷增長，如果我們能夠獲得核心存款，我們可能會利用其他領域的其他方式來為這些成長提供資金。

I do want to note, David, we do have some very specific deposit strategies around our homeowners associations, around large non-profits and large specific mid-market clients generate a lot of cash and don't need a lot of loans. So we are very focused on driving those core deposits. And I think we've been fairly successful over the last year, and we will continue to drive those.

我確實想指出，大衛，我們確實圍繞著我們的房主協會、大型非營利組織和大型特定中端市場客戶制定了一些非常具體的存款策略，這些策略產生了大量現金，不需要大量貸款。因此，我們非常專注於推動這些核心存款。我認為我們去年取得了相當成功，我們將繼續推動這些目標。

Okay. And just to be crystal clear, that 2.45% is a core margin that we talked about out, right? Accretion would be on top of that.

好的。澄清一下，2.45% 是我們討論過的核心利潤率，對吧？最重要的是吸積。

Correct. That is correct.

正確的。這是正確的。

Okay. Appreciate it. Thanks, everybody.

好的。欣賞它。謝謝大家。

Thanks.

謝謝。

So this does conclude our question-and-answer session. And I would like to turn the conference back over to Katie Lorenson for any closing remarks.

我們的問答環節到此結束。我想將會議轉回凱蒂·洛倫森 (Katie Lorenson) 發表閉幕詞。

Thank you. Thank you all for joining our call and for your relationships and, of course, for your investments. We acknowledge and take full responsibility for a tough quarter. The path to superior returns is certainly not linear. It does take time for some of these investments we have made to result in top-tier performance. So some of the parts of this incredibly valuable company will be recognized with time, and we are transforming from within, and we're making progress every day.

謝謝。感謝大家加入我們的電話會議並感謝你們的關係，當然還有你們的投資。我們承認並為這個艱難的季度承擔全部責任。獲得卓越回報的道路當然不是線性的。我們所做的投資確實需要時間才能達到頂級績效。因此，隨著時間的推移，這家極其有價值的公司的某些部分將得到認可，我們正在從內部轉型，我們每天都在進步。

We have a best-in-class diversified business model and a company that will deliver superior profitability and tremendous value creation to our shareholders. I want to say thank you to all of our team members who are part of our journey to get better every day. Have a great day, everyone.

我們擁有一流的多元化業務模式，以及一家將為股東帶來卓越獲利能力和巨大價值創造的公司。我想對我們所有的團隊成員表示感謝，他們是我們每天變得更好的旅程的一部分。祝大家有美好的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。