Associated Banc-Corp (ASB) 2024 Q4 法說會逐字稿

Good afternoon, everyone and welcome to the Associated Banc-Corp's fourth-quarter 2024 earnings conference call. My name is Matt and I'll be your operator today. (Operator Instructions)

大家下午好，歡迎參加 Associated Banc-Corp 2024 年第四季財報電話會議。我叫馬特，今天我將擔任您的接線生。（操作員指令）

As a reminder, this conference call is being recorded.

提醒一下，本次電話會議正在錄音。

As outlined on slide 1, during the course of the discussion today, management may make statements that constitute projections, expectations, beliefs, or similar forward-looking statements. Associated's actual results could differ materially from the results anticipated or projected in any such forward-looking statements.

正如投影片 1 中所概述的那樣，在今天的討論過程中，管理階層可能會做出構成預測、期望、信念或類似前瞻性陳述的陳述。Associated 的實際結果可能與此類前瞻性陳述中預期或預測的結果有重大差異。

Additional detailed information concerning the important factors that could cause Associated's actual results to materially from the information discussed today is readily available on the SEC website in the Risk Factors section of Associated's most recent Form 10-K and subsequent SEC filings. These factors are incorporated herein by reference.

有關可能導致 Associated 的實際業績與今天討論的信息產生重大差異的重要因素的更多詳細信息，可在美國證券交易委員會網站上的 Associated 最新的 10-K 表格和隨後的美國證券交易委員會文件中的“風險因素”部分查閱。這些因素在此作為參考。

For reconciliation of these non-GAAP financial measures to the GAAP financial measures mentioned in this conference call, please refer to pages 31 through 34 of the slide presentation and to pages 10 and 11 of the press release financial tables. Following today's presentation, instructions will be given for the question-and-answer session.

有關這些非 GAAP 財務指標與本次電話會議中提及的 GAAP 財務指標的對賬，請參閱幻燈片簡報的第 31 至 34 頁以及新聞稿財務表的第 10 和 11 頁。今天的演講結束後，將提供問答環節的說明。

At this time, I would like to turn the conference over to Andy Harmening, President and CEO, for opening remarks. Please go ahead, sir.

現在，我想將會議交給總裁兼執行長 Andy Harmening 致開幕詞。先生，請繼續。

We continue to see signs of strength in the US economy and closer to home in the Midwest, the situation has remained remarkably stable. Unemployment rates in Wisconsin, Minnesota, and several other Midwestern states remained well below the national average of 4.1%. Our prime and super prime consumer borrowers have remained resilient, and our commercial customers are cautiously optimistic about their growth prospects in 2025.

我們繼續看到美國經濟走強的跡象，而在中西部地區，情況仍然相當穩定。威斯康辛州、明尼蘇達州和其他幾個中西部州的失業率仍遠低於 4.1% 的全國平均水平。我們的優質和超優質消費借款人依然保持堅韌，我們的商業客戶對 2025 年的成長前景持謹慎樂觀的態度。

This continued stability has enabled us to remain front-footed with the execution of our growth strategy. And the fourth quarter was an active one for our company. We added to our commercial capabilities through the launch of a new specialty deposit and payment solutions vertical.

這種持續的穩定使得我們在執行成長策略時始終處於領先地位。第四季對我們公司來說是活躍的季度。我們透過推出新的專業存款和支付解決方案垂直領域增強了我們的商業能力。

We raised over $300 million of new capital through a common stock issuance and put a portion of that capital to work through a balance sheet repositioning, selling approximately $700 million in low-yielding mortgage loans and $1.3 billion in AFS securities. We also purchased $55 million in existing customer credit customer credit card balances through an expansion of our participation agreement with Elan Financial Services.

我們透過發行普通股籌集了超過 3 億美元的新資本，並將部分資本用於資產負債表重新定位，出售了約 7 億美元的低收益抵押貸款和 13 億美元的 AFS 證券。我們也透過擴大與 Elan Financial Services 的參與協議，購買了價值 5,500 萬美元的現有客戶信用卡餘額。

During the quarter, we also announced the addition of two widely respected business leaders to our Board of Directors and Kristen Ludgate and Owen Sullivan. We elevated three senior business line leaders to our executive leadership team and the Head of Corporate and Commercial Banking, Phil Trier; Deputy Head of Commercial Real Estate, Greg Warsek; and Deputy Head of Consumer and Business Banking, Steve Zandpour, and we welcomed several high-quality RMs to our growing commercial team.

本季度，我們也宣布董事會新增兩位廣受尊敬的商業領袖：Kristen Ludgate 和 Owen Sullivan。我們將三位高階業務線領導及企業及商業銀行業務主管 Phil Trier 提升至我們的執行領導團隊；商業房地產副主管 Greg Warsek；以及消費者和商業銀行業務副主管 Steve Zandpour，我們歡迎多位高素質的客戶經理加入我們不斷成長的商業團隊。

Importantly, we also delivered strong financial results during the quarter as we've continued to benefit from our organic growth strategies. Here in Q4, we delivered adjusted loan growth of over $500 million and core customer deposit growth of nearly $900 million, while maintaining stability and discipline with regards to credit risk.

重要的是，由於我們繼續受益於有機成長策略，我們在本季也取得了強勁的財務業績。在第四季度，我們實現了調整後貸款成長超過 5 億美元，核心客戶存款成長近 9 億美元，同時保持了信用風險的穩定性和紀律。

As we look forward to 2025, we are positioned to play offense and we're entering the year with a consumer value proposition that stacks up with anyone in the industry. A growing customer -- a growing customer household base with deepened relationships, strong and improving customer satisfaction results and expanding commercial team with deep expertise and capabilities and an enhanced profitability profile from the balance sheet repositioning we announced in December. Taken together, these actions have positioned associated for strong performance in '25 and beyond.

展望 2025 年，我們將全力進攻，以與業內任何人相比都更勝一籌的消費者價值主張迎接新的一年。不斷增長的客戶——不斷擴大的客戶家庭基礎、不斷加深的關係、強勁且不斷提高的客戶滿意度、不斷擴大的商業團隊、深厚的專業知識和能力以及透過我們在 12 月宣布的資產負債表重新定位而增強的盈利狀況。綜合起來，這些舉措為公司在25年及以後的強勁表現奠定了基礎。

With that, I'd like to walk through some additional financial highlights from the quarter and 2024 as a whole, beginning on slide 2. Our fourth quarter results were impacted by nonrecurring items tied to the balance sheet repositioning we announced in December. After excluding these nonrecurring items, the emerging momentum of our core businesses was reflected through adjusted earnings per share of $0.57.

接下來，我想從第 2 張投影片開始，介紹本季和整個 2024 年的一些其他財務亮點。我們的第四季業績受到 12 月宣布的資產負債表調整相關的非經常性項目的影響。在剔除這些非經常性項目後，我們核心業務的新興動能透過調整後的 0.57 美元每股收益得到體現。

Core customer deposits grew by nearly $900 million during the quarter, and on the other side of the balance sheet, we grew total loans by over $500 million after adjusting for the mortgage loan sale announced in December. Over $300 million of that growth came in our commercial and business lending segments. An emerging growth story within our commercial business is starting to take hold.

本季度，核心客戶存款成長了近 9 億美元，而在資產負債表的另一邊，在調整 12 月宣布的抵押貸款銷售後，我們的總貸款增加了 5 億多美元。其中超過3億美元的成長來自於商業和企業貸款部門。我們的商業業務中新興的成長故事已開始顯現。

We've said all along that our intention is to fund the majority of our loan growth with core customer deposits. And in 2024, we did just that. For the year, we grew core customer deposits by $1.2 billion or 4.3% and adjusted loans by $1.3 billion or 4.4%. This will remain a point of emphasis for us in 2025.

我們一直說，我們的目的是利用核心客戶存款來為大部分貸款成長提供資金。2024 年，我們做到了這一點。今年，我們的核心客戶存款增加了 12 億美元，即 4.3%，調整後貸款增加了 13 億美元，即 4.4%。這將是我們在 2025 年關注的重點。

Shifting to the income statement. Our net interest income increased $8 million from Q3 and finished at $270 million our margin increased 3 basis points to 2.81%. Due to the timing of our balance sheet repositioning, we expect to realize most of the margin benefit from the transaction here in Q1 of 2025. Our GAAP noninterest income was impacted by nonrecurring items tied to our balance sheet repositioning during Q4. But on an adjusted basis, we saw a $5 million quarterly increase.

轉向損益表。我們的淨利息收入較第三季增加了 800 萬美元，達到 2.7 億美元，利潤率增加了 3 個基點，達到 2.81%。由於我們資產負債表重新定位的時間，我們預計將在 2025 年第一季實現交易中的大部分利潤收益。我們的 GAAP 非利息收入受到第四季度與資產負債表重新定位相關的非經常性項目的影響。但經過調整後，我們看到季度增加了 500 萬美元。

Total adjusted noninterest expense finished at $210 million for the quarter. And while we've continued to make strategic investments in support of our growth plan, staying disciplined on expenses remains a foundational focus of our company.

本季調整後非利息支出總額為 2.1 億美元。雖然我們一直在進行策略性投資以支持我們的成長計劃，但保持對開支的紀律仍然是我們公司的基本關注點。

Another foundational focus is managing credit risk. Here in Q4, our nonaccrual loans, charge-offs and provision all decreased versus the prior quarter and the same period last year. In 2025, we remain committed to staying ahead of the curve by taking a disciplined, consistent approach to loan risk ratings so that we can better understand credit risk in our portfolio by both segment and geography.

另一個基礎重點是管理信用風險。在第四季度，我們的非應計貸款、核銷和撥備均比上一季和去年同期減少。2025 年，我們將繼續致力於保持領先地位，採取嚴謹、一致的貸款風險評級方法，以便我們能夠更好地了解我們投資組合中各個部門和地區的信用風險。

On slide 3, we provided a detailed breakdown of EPS impact from several nonrecurring items impacted our financial results in Q4. First, the balance sheet repositioning we announced during the quarter impacted our income statement through a $130 million loss from the sale of mortgages and another $148 million net loss on the security sale we completed. Combined, these items reduced noninterest income by $279 million.

在投影片 3 中，我們詳細列出了影響第四季度財務表現的幾項非經常性項目對每股盈餘的影響。首先，我們在本季宣布的資產負債表重新定位對我們的損益表產生了影響，出售抵押貸款造成了 1.3 億美元的損失，而我們完成的證券出售造成了 1.48 億美元的淨損失。這些項目合計導致非利息收入減少了 2.79 億美元。

Second, our total noninterest expense was impacted by a $14 million loss on prepayment of FHLB advances tied to the repositioning. And finally, our provision increased slightly due to the net impact of a release from the sale of mortgage loans and a build from the credit card balances we purchased during the quarter.

其次，我們的總非利息支出受到與重新定位相關的 FHLB 預付款 1,400 萬美元損失的影響。最後，由於本季抵押貸款出售釋放的淨影響和我們購買的信用卡餘額的增加，我們的撥備略有增加。

Net of tax, our adjusted EPS came in at a positive $0.57 for the quarter. This adjusted number underscores the strength of our core businesses and gives us confidence that we're on the right path with our strategic plan as we move into 2025.

扣除稅後，本季我們的調整後每股收益為正 0.57 美元。這項調整後的數字凸顯了我們核心業務的實力，並讓我們相信，在邁向 2025 年之際，我們的策略計畫正朝著正確的方向發展。

Shifting to slide 4. We've made significant progress as a company since I joined in 2021. And thanks to several tailwinds that have started to emerge, I'm more confident than ever that we're on the right track first. we've made several key leadership hires over the course of the past 12 to 24 months, and those hires are having an impact.

轉到投影片 4。自 2021 年我加入公司以來，我們公司取得了重大進展。而且由於已經開始出現的一些順風，我比以往任何時候都更加相信，我們首先走在了正確的軌道上。我們在過去 12 到 24 個月內聘用了​​幾位關鍵領導，這些聘用正在產生影響。

This includes the three recent executive leadership team members added in Q4 and but it also includes Jayne Hladio who stepped into her role as President of our Private Wealth business in late '23. In the short time she's been here, we've already seen more new relationships, increased referrals and higher sales activity for retirement plans and other services.

其中包括第四季新加入的三名執行領導團隊成員，還包括 23 年底接任我們私人財富業務總裁一職的 Jayne Hladio。在她任職的短暫時間內，我們已經看到她建立了更多的新關係、增加了推薦，並且退休計劃和其他服務的銷售活動也更加活躍。

Second, we now have a consumer value proposition that can compete with just about anyone in the industry, which has better equipped us to deepen relationships with existing customers and attract new ones.

其次，我們現在擁有可以與業內任何人競爭的消費者價值主張，這使我們能夠更好地加深與現有客戶的關係並吸引新客戶。

The results can be seen in our record high customer satisfaction scores, positive household growth trends and improved quality of those households. Given current market dynamics, we've tweaked our net household growth expectations for 2025 and but we continue to be encouraged by the momentum we've seen to date.

我們所取得的成果包括：顧客滿意度分數創歷史新高、家庭成長趨勢正面、家庭生活品質提升。鑑於目前的市場動態，我們調整了 2025 年淨家庭成長預期，但迄今為止所看到的勢頭仍然令我們感到鼓舞。

Third, we've continued to make progress on our efforts to diversify our consumer loan portfolio without abandoning our conservative approach to credit. By getting out of TPO lending, shifting to an originate-to-sell model and reposition our balance sheet we've reduced our resi loan concentration from a high of 36% of total loans before I got here to 24% of total loans as of year-end, which has provided capacity to grow in more profitable lending categories.

第三，我們在放棄保守的信貸策略的同時，繼續努力實現消費貸款組合多元化。透過退出 TPO 貸款、轉向發起銷售模式並重新定位我們的資產負債表，我們將住宅貸款集中度從我上任之前的佔總貸款的 36% 的高位降低到年底的總貸款的 24%，這為我們在更有利可圖的貸款類別中增長提供了能力。

And finally, commercial banking is a central component of our growth strategy. We've added 21 of 26 planned hires and expect to have hiring fully completed by the end of Q1. As mentioned previously, we expect the balance sheet impact of these new hires to increase throughout 2025 as the new RMs across our footprint settle in and build their respective pipelines.

最後，商業銀行是我們成長策略的核心組成部分。我們計劃招募 26 名員工，目前已招募 21 名，預計第一季末全部招募完成。如前所述，隨著我們業務範圍內的新客戶經理安頓下來並建立各自的人才隊伍，我們預計這些新員工對資產負債表的影響將在 2025 年增加。

On slide 5, we highlight our loan trends through the quarter. After excluding mortgage loans sold as part of the balance sheet repositioning, total loans increased by $501 million in Q4. This growth was led once again by C&I, which grew by over $300 million in Q4. We also saw $157 million in CRE investor growth during the quarter, which was largely driven by the completion of construction projects in Q4.

在投影片 5 中，我們重點介紹了本季的貸款趨勢。在剔除作為資產負債表調整一部分出售的抵押貸款後，第四季總貸款增加了 5.01 億美元。這一成長再次由 C&I 引領，第四季成長超過 3 億美元。本季度，我們也看到 CRE 投資者成長了 1.57 億美元，這主要得益於第四季度建築項目的完成。

While we continue to expect elevated payoff activity in the coming quarters, payoffs were limited in the fourth quarter. As we continue diversifying our consumer portfolio, we saw auto finance balances grow by $101 million here in Q4 and other consumer categories grew by $69 million. The latter was largely driven by the $55 million in credit card balances we purchased during the quarter.

儘管我們仍然預計未來幾季的支付活動將會增加，但第四季的支付活動有限。隨著我們繼續實現消費者投資組合多元化，我們看到第四季度汽車金融餘額增加了 1.01 億美元，其他消費者類別增加了 6,900 萬美元。後者主要是由於我們在本季購買的 5,500 萬美元信用卡餘額所致。

On slide 6, we show loan trends on an annual basis. And since 2020, the trend has been clear. we've decreased our reliance on low-yielding noncustomer residential mortgage loans and diversified into higher-return categories all while growing our total loan portfolio by over 20% and maintaining our conservative approach to credit.

在幻燈片 6 中，我們展示了年度貸款趨勢。自2020年以來，這一趨勢已經很明顯。我們減少了對低收益非客戶住宅抵押貸款的依賴，並向更高回報的類別進行多元化發展，同時將我們的總貸款組合增長了20％以上，並保持了保守的信貸方式。

More recently, total loans grew by $552 million from year-end '23 to year-end '24. This growth has been highlighted by emerging traction in our commercial business, particularly in the back half of '24. After growing C&I loans, $230 million in the first half of the year, we grew by over $600 million in the back half of the year as the RMs we've hired are steadily accelerating their production.

最近，從 23 年底到 24 年底，總貸款增加了 5.52 億美元。這種成長主要體現在我們商業業務的新興發展勢頭，尤其是在24年下半年。在上半年商業和工業貸款成長 2.3 億美元之後，由於我們僱用的客戶經理正在穩步加快生產速度，我們在下半年又成長了 6 億多美元。

We have clear momentum in the commercial space. we have the leaders in place. Our hiring is largely complete and pipelines continue to build. As such, we expect C&I loan growth of $1.2 billion in 2025. More broadly, we continue to seek selective growth that emphasizes full banking relationships, quality credit profiles and diversification to deliver improved returns. With this in mind, we expect total bank loan growth of 5% to 6% for the year.

我們在商業領域有著明顯的發展動能。我們已經有了領導人。我們的招募工作已基本完成，人才隊伍也不斷建設中。因此，我們預計 2025 年 C&I 貸款將成長 12 億美元。更廣泛地說，我們將繼續尋求選擇性成長，強調全面的銀行關係、優質的信用狀況和多樣化，以實現更高的回報。考慮到這一點，我們預計今年銀行貸款總額將增加 5% 至 6%。

Moving to slide 7. We had mentioned back that some expected customer deposit growth to pick up in the back half of the year, and that trend largely played out as we expected. Through adding over $600 million in core customer deposits in Q3, we added nearly $900 million here in Q4.

移至幻燈片 7。我們之前提到過，預計客戶存款成長將在今年下半年回升，而且這個趨勢基本上符合我們的預期。透過在第三季增加超過 6 億美元的核心客戶存款，我們在第四季增加了近 9 億美元。

Unlike Q3, which saw heavy CD inflows, growth in Q4 was driven primarily by interest-bearing demand, money market and savings categories. The inflow of core customer deposits during the quarter once again enabled us to work down our wholesale funding reliance. Total wholesale funding sources were down 3% in Q4.

與第三季大量存款流入不同，第四季的成長主要受到生息需求、貨幣市場和儲蓄類別的推動。本季核心客戶存款的流入再次使我們降低了對批發融資的依賴。第四季批發融資來源總額下降了 3%。

On slide 8, we show deposits on an annual basis. We've consistently grown our average annual deposits as our balance sheet has expanded over the years and the impact of our efforts to grow core customer deposits have emerged more clearly in 2024. On a spot basis, core customer deposits grew by $1.2 billion or 4.3% versus 2023.

在投影片 8 上，我們展示了年度存款狀況。隨著我們資產負債表多年來的擴大，我們的平均年存款也持續成長，而我們增加核心客戶存款的努力的影響在 2024 年更加明顯。以現貨計算，核心客戶存款較 2023 年成長 12 億美元，成長 4.3%。

As we look to 2025, our intention is to continue funding our loan growth primarily with core customer deposits and progress against our strategic initiatives has provided several promising tailwinds on as we look to continue attracting, deepening and retaining customer relationships. As such, we expect core customer deposits to grow by 4% to 5% for the year.

展望 2025 年，我們的目標是繼續主要透過核心客戶存款為我們的貸款成長提供資金，而我們策略性舉措的進展為我們提供了許多有利的推動力，讓我們能夠繼續吸引、深化和留住客戶關係。因此，我們預計今年核心客戶存款將成長 4% 至 5%。

With that, I'll pass it to Derek to walk through the income statement and capital trends.

說完這些，我會將其交給德瑞克，讓他介紹損益表和資本趨勢。

Thanks, Andy. I'll start on slide 9 with our asset and liability yield trends. Following the 50 basis point Fed rate cut in September and subsequent 25 basis point cuts in November and December, earning asset yields and interest-bearing liability costs both fell meaningfully during the fourth quarter.

謝謝，安迪。我將從第 9 張投影片開始介紹我們的資產和負債收益率趨勢。繼聯準會9月降息50個基點、11月及12月再降息25個基點之後，第四季生息資產收益率和計息負債成本均大幅下降。

Total bank in asset yields decreased by 22 basis points during the quarter, led by a 43 basis point decrease in CRE loans and a 53 basis point decrease in commercial and business lending both of which were largely floating rate portfolios that respond more quickly to changes in market rates. These decreases were partially offset by relative stability in our large fixed rate auto, resi and securities books.

本季度，銀行總資產收益率下降了 22 個基點，其中，商業房地產貸款下降了 43 個基點，商業及業務貸款下降了 53 個基點，這兩項貸款大多都是浮動利率投資組合，對市場利率變化的反應更快。這些下降被我們大型固定利率汽車、住宅和證券帳簿的相對穩定所部分抵消。

On the other side of the balance sheet, total liability costs decreased by 30 basis points during the quarter. This larger decrease was a function of our ability to decrease interest-bearing deposit costs by 22 basis points during the quarter along with our efforts to pay down wholesale funding.

在資產負債表的另一邊，本季總負債成本減少了 30 個基點。大幅下降的原因是，我們在本季將計息存款成本降低了 22 個基點，同時努力償還批發融資。

Moving to slide 10. Our total net interest income grew by $8 million versus the prior quarter and $17 million versus Q4 of 2023, landing at $270 million for the quarter. Our net interest margin expanded by 3 basis points to 2.81%.

移至投影片 10。我們的總淨利息收入較上一季成長了 800 萬美元，較 2023 年第四季成長了 1,700 萬美元，本季達到 2.7 億美元。淨利差擴大3個基點至2.81%。

During the quarter, due to the timing of the securities reinvestment, which closed at the end of the year and the timing of the loan sale, which is expected to be settled by the end of the month, the NII benefit we saw in Q4 was largely driven by initial securities sale in the refinancing of our high-cost FHLB advances.

在本季度，由於證券再投資的時間表（在年底結束）以及貸款出售的時間表（預計將在本月底結算），我們在第四季度看到的 NII 收益很大程度上是由我們高成本 FHLB 預付款再融資中的初始證券出售所推動的。

On a pro forma basis, we estimate that our balance sheet repositioning, including the credit card balance acquisition we made in December, would have added approximately 17 more basis points to our net interest margin, having received a full quarter's benefit from the transaction.

根據預測，我們估計，我們的資產負債表重新定位（包括我們在 12 月進行的信用卡餘額收購）將為我們的淨息差增加約 17 個基點，並從該交易中獲得整整一個季​​度的收益。

Based on our latest expectations for balance sheet growth, deposit betas and Fed action, along with the enhanced profitability from our balance sheet repositioning, we expect to drive net interest income growth of between 12% and 13% in 2025.

根據我們對資產負債表成長、存款貝塔係數和聯準會行動的最新預期，以及資產負債表重新定位帶來的獲利能力增強，我們預計 2025 年淨利息收入將成長 12% 至 13%。

On slide 11, we provide a reminder of the proactive steps we've taken to get a more neutral asset sensitivity position. Our auto book has grown to $2.8 billion as of year-end, providing a solid base of fixed rate assets with low prepayment risk and strong credit characteristics.

在投影片 11 上，我們提醒大家我們已經採取了積極措施，以獲得更中立的資產敏感性立場。截至年底，我們的汽車帳簿已成長至 28 億美元，為預付風險低、信用特徵強的固定利率資產提供了堅實的基礎。

In addition, as of December 31, and we maintained notional swap balances of approximately $2.7 billion. And finally, we had $10.3 billion in contractual funding obligations set to mature in 1 year or less as of Q4, which is over 90% of the total.

此外，截至 12 月 31 日，我們維持名義掉期餘額約 27 億美元。最後，截至第四季度，我們有 103 億美元的合約融資義務將在 1 年或更短的時間內到期，佔總額的 90% 以上。

Taken together, these actions have reduced our asset sensitivity over time with a down 100 ramp scenario representing about 0.5% impact to our NII at Q4. This is reduced from the 3.4% impact we were modeling in Q4 of 2022. Our goal is to maintain this modestly asset-sensitive position going forward.

綜合起來，這些措施隨著時間的推移降低了我們的資產敏感度，在下降 100% 的情況下，對我們第四季的 NII 造成約 0.5% 的影響。這比我們在 2022 年第四季模擬的 3.4% 的影響有所下降。我們的目標是未來繼續維持這種適度資產敏感的地位。

Shifting to slide 12. Our securities book increased to $8.5 billion on a period-end basis with the increase largely driven by the settlement of securities purchases as part of the balance sheet repositioning we announced in December.

轉到投影片 12。我們的證券帳簿在期末增加至 85 億美元，這一增長主要得益於我們 12 月宣布的資產負債表重新定位中證券購買的結算。

During the quarter, we saw a pickup in our CET1 ratio, thanks to capital raised from the common stock offering we announced in December. And after putting a portion of that capital to work in the balance sheet repositioning we announced in December, CET1 landed at an even 10% at year-end.

在本季度，由於我們 12 月宣布的普通股發行所籌集的資金，我們的 CET1 比率有所上升。在我們於 12 月宣布將部分資本投入資產負債表調整後，CET1 比率在年底達到了 10%。

We also saw a reduction in our AOCI impact due to our securities sale. And as such, the gap between our regulatory CET1 ratio and our CET1 plus AOCI ratio decreased to just 22 basis points in Q4. Following the transaction, our securities plus cash to total assets ratio rose to 22% for the fourth quarter, and we would expect to manage the ratio in the 22% to 24% range in 2025.

由於我們的證券出售，我們也看到 AOCI 影響有所減少。因此，我們的監管 CET1 比率與 CET1 加 AOCI 比率之間的差距在第四季度縮小至僅 22 個基點。交易完成後，我們第四季的證券加現金與總資產比率上升至 22%，我們預計 2025 年將控制在 22% 至 24% 之間。

Our noninterest income trends are highlighted on slide 13. As Andy mentioned, our GAAP results reflected a net loss for the fourth quarter, and this loss was driven by nonrecurring items tied to the balance sheet repositioning we announced in December. Adjusting for these results, our core noninterest income came in at $72 million in Q4, representing a $5 million increase versus the prior quarter and a $2 million increase versus our adjusted Q4 2023 figure.

我們的非利息收入趨勢在第 13 頁上重點展示。正如安迪所提到的，我們的 GAAP 結果反映出第四季度的淨虧損，而這筆損失是由與我們 12 月宣布的資產負債表重新定位相關的非經常性項目造成的。調整這些結果後，我們第四季的核心非利息收入為 7,200 萬美元，比上一季增加 500 萬美元，比我們調整後的 2023 年第四季數字增加 200 萬美元。

The quarterly increase was primarily driven in the increases in capital markets and mortgage banking income, partially offset by a decrease in bulding income. Compared to the same period last year, wealth management fees grew by $3 million, while deposit fees and mortgage banking income both grew by $2 million. In 2025, we expect noninterest income to grow by 0% to 1% as compared to our adjusted 2024 base of $269 million.

季度成長主要得益於資本市場和抵押銀行收入的成長，部分抵消了建築收入的減少。與去年同期相比，財富管理費收入增加了 300 萬美元，存款費收入和抵押銀行收入均增加了 200 萬美元。到 2025 年，我們預計非利息收入將比我們調整後的 2024 年 2.69 億美元基數成長 0% 至 1%。

Moving to slide 14. Our fourth quarter expenses were impacted by a $14 million loss on the prepayment of FHLB advances as part of our balance sheet repositioning. Excluding this nonrecurring item, our adjusted noninterest expense came in at $210 million in Q4. This adjusted number represents a $9 million increase from the third quarter, but just a $1 million increase from our adjusted Q4 2023 expenses.

移至投影片 14。作為資產負債表重新定位的一部分，我們第四季度的支出受到了 FHLB 預付款 1400 萬美元損失的影響。除此非經常性項目外，我們第四季的調整後非利息支出為 2.1 億美元。調整後的數字較第三季增加了 900 萬美元，但僅比我們調整後的 2023 年第四季支出增加了 100 萬美元。

The bulk of the quarterly increase stemmed from investments in our organic initiatives, including an acceleration of hiring that increased our personnel expense in Q4. For the full year, our noninterest expense came in at $804 million after adjusting to exclude the nonrecurring loss on HLD prepayment.

本季的成長主要源自於我們內部計畫的投資，包括加速招聘，這增加了我們第四季的人員費用。全年而言，經調整以剔除 HLD 預付款的非經常性損失後，我們的非利息支出為 8.04 億美元。

While we've continued to invest in people and strategies to support our growth plans, we've also remained squarely focused on managing our overall expense run rate on an ongoing basis. With that in mind, we expect the total noninterest expense growth of between 3% and 4% in 2025 off of our adjusted 2020 base of $804 million.

在我們繼續投資於人才和策略以支持我們的成長計畫的同時，我們也始終專注於持續管理我們的整體費用運作率。考慮到這一點，我們預計，在 2020 年調整後的 8.04 億美元基數基礎上，2025 年總非利息支出將增加 3% 至 4%。

On slide 15, we once again saw key capital ratios increased across the board here in Q4 after raising $331 million of capital with our November common stock offering. While we did put a portion of this capital to work with the balance sheet repositioning we announced in December, we still expect to maintain a higher level of capital than we did pre transaction.

在幻燈片 15 上，我們再次看到，在 11 月透過發行普通股籌集 3.31 億美元資金後，第四季度關鍵資本比率全面提高。雖然我們確實將部分資本用於 12 月宣布的資產負債表調整，但我們仍預期維持比交易前更高的資本水準。

Our TCE ratio increased to 7.82% in Q4, which represents a 32 basis point increase relative to Q3 and a 71 basis point increase relative to Q4 of 2023. Our CET1 ratio steadily climbed throughout 2024 and currently sits at 10% as of Q4, a 28 basis point increase relative to Q3.

我們的 TCE 比率在第四季上升至 7.82%，較第三季增加 32 個基點，較 2023 年第四季增加 71 個基點。我們的 CET1 比率在 2024 年全年穩步上升，截至第四季目前為 10%，較第三季增加了 28 個基點。

With that said, we expect to see an incremental 7 basis points of benefits of CET1 once our loan sale closes here in Q1. Following the actions we took in Q4, our expectations for growth in 2025 and the current market conditions, we expect to manage CET1 within a range of 10% to 10.5% in 2025.

話雖如此，我們預計，一旦我們的貸款銷售在第一季結束，CET1 的收益將增加 7 個基點。根據我們在第四季度採取的行動、對 2025 年成長的預期以及當前的市場狀況，我們預計 2025 年 CET1 將控制在 10% 至 10.5% 的範圍內。

I'll now hand it over to Chief Credit Officer, Pat Ahern, to provide an update on credit quality.

現在我將把電話交給首席信貸官帕特·埃亨 (Pat Ahern)，以提供有關信貸品質的最新資訊。

Thanks, Derek. I'll start with an allowance update on slide 16. We utilized the Moody's November 2024 baseline forecast for our CECL forward-looking assumptions. The Moody's baseline forecast remains consistent with a resilient economy despite the high interest rate environment.

謝謝，德里克。我將從第 16 張投影片上的津貼更新開始。我們利用穆迪 2024 年 11 月的基準預測來制定 CECL 前瞻性假設。儘管利率環境較高，穆迪的基本預測仍與經濟復甦一致。

The baseline forecast contains no additional rate hikes, slower but positive GDP growth rates, a cooling labor market and continued deceleration of inflation with continued monitoring of ongoing market developments.

基線預測包括不再升息、GDP成長率放緩但為正、勞動市場降溫、通膨持續減速，並持續監測市場發展。

Our ACLL increased by another $5 million in Q4 to finish the quarter at $402 million with increases in the commercial and business lending and other consumer categories, partially offset by decreases in CRE and residential mortgage. The uptick in commercial largely stemmed from some migration into criticized loans during Q4.

我們的 ACLL 在第四季度又增加了 500 萬美元，至本季結束時達到 4.02 億美元，其中商業和企業貸款以及其他消費者類別的成長，部分被 CRE 和住宅抵押貸款的減少所抵消。商業貸款的成長主要源自於第四季度一些受批評的貸款的遷移。

Similar to last quarter, we do not feel that this increase is an indication of a significant shift in credit stress but rather, it is a reflection of our assurance to risk rating definition guidance, acknowledging shifts in credit profiles.

與上一季類似，我們並不認為這種增長表明信貸壓力發生了重大轉變，而是反映了我們對風險評級定義指導的保證，承認信貸狀況發生了變化。

The bank does not view these credits representing risk of loss at this time. as reflected in our stable ACL. Altogether, our reserve to loan ratio increased by 2 basis points from the prior quarter and 3 basis points from the same period a year ago to 1.35%.

該銀行目前並不認為這些貸款有損失風險。正如我們穩定的 ACL 所反映的那樣。總體而言，我們的準備金與貸款比率較上一季增加了 2 個基點，較去年同期增加了 3 個基點，達到 1.35%。

Moving to slide 17. We maintained a high degree of confidence in the quality of our loan portfolio with continued solid performance in our core credit quality trends. Total bank-wide delinquencies increased to $80 million for the quarter representing a $24 million increase from the prior quarter but a $4 million decrease from Q4 of 2023. We continue to believe these trends are in line with our normal course of business and not necessarily something that's indicative of future credit stress.

移至投影片 17。我們對貸款組合的品質保持高度信心，核心信貸品質趨勢持續表現穩健。本季全行拖欠總額增至 8,000 萬美元，較上一季增加 2,400 萬美元，但比 2023 年第四季減少 400 萬美元。我們仍然相信這些趨勢符合我們的正常業務進程，並不一定預示著未來的信貸壓力。

Importantly, the quarterly increase was limited to the 30- to 89-day bucket, reflecting some timing and completion of recent credit actions. 90-plus stage delinquencies have decreased both quarter-over-quarter and year-over-year coming in at just $3 million in Q4. Further down the line, total criticized and classified loans increased from the prior quarter. The majority of this increase was driven by migration within C&I and CRE categories.

重要的是，季度增幅僅限於 30 至 89 天的時間段，反映了近期信貸行動的一些時間和完成情況。 90 多階段拖欠金額環比和年比均有所減少，第四季僅 300 萬美元。此外，受批評和分類的貸款總額較上一季增加。這一增長主要是由 C&I 和 CRE 類別內的移民推動的。

Similar to Q3, we do not feel this increase is an indication of a significant shift in the credit profile of the portfolio but rather a reflection of conforming to industry guidance in a proactive and conservative approach relative to credit changes.

與第三季類似，我們並不認為這種成長表明投資組合的信用狀況發生了重大變化，而只是反映了遵循行業指導，以積極主動和保守的方式應對信貸變化。

We continue our ongoing portfolio deep dives and don't see a systemic shift in our commercial portfolios. In fact, we see potential near-term resolution in many of the noted downgrades as liquidity remains present in the market.

我們持續對投資組合進行深入研究，並未發現商業投資組合發生系統性轉變。事實上，由於市場流動性仍然存在，我們認為許多著名的降級問題都有可能在短期內解決。

Underpinning our confidence in the portfolio is the continued positive trends we're seeing in nonaccruals. We continue to see a steady pace of resolution within these stressed credits with total nonaccrual balances decreasing for the third consecutive quarter to $123 million. Importantly, we saw decreases in both commercial and business lending and CRE net accruals in Q4 as well.

我們對投資組合的信心源自於我們所看到的非應計項目持續呈現正向趨勢。我們繼續看到這些緊張信貸的解決步伐穩步加快，總未計餘額連續第三個季度減少至 1.23 億美元。重要的是，我們還看到第四季度商業貸款和企業房地產淨應計費用均有所下降。

Finally, we booked $12 million in net charge-offs during the quarter and $17 million in provision, both of which represented the lowest numbers we've seen in the past several quarters. As Andy mentioned, our Q4 provision included a $3 million release for the sale of residential mortgage loans we announced in December and a $4 million provision build for a purchase of $55 million in credit card balances during the quarter. Our net charge-off ratio decreased by 2 basis points to 0.16%.

最後，我們在本季度記入了 1200 萬美元的淨沖銷額和 1700 萬美元的撥備，這兩個數字都是過去幾個季度以來的最低水平。正如安迪所提到的，我們第四季的撥備包括為出售 12 月宣布的住宅抵押貸款而撥出的 300 萬美元，以及為本季購買 5500 萬美元信用卡餘額而撥出的 400 萬美元。我們的淨核銷率下降了2個基點，至0.16%。

In summary, our credit metrics continue to give us confidence that what we've seen to date is a handful of credits migrating within our rating system and not necessarily a sign of broader issues coming down the road in future quarters. Overall, outside of these specific situations, we remain comfortable in the normalized level of activity we've seen across the bank.

總而言之，我們的信用指標繼續讓我們相信，迄今為止我們看到的只是我們評級體系內少量信用的遷移，而不一定是未來幾季將出現更廣泛問題的徵兆。總體而言，除了這些特定情況之外，我們對整個銀行的正常活動水平仍然感到滿意。

Going forward, we remain diligent on monitoring credit stresses in the macro economy to ensure current underwriting reflects both inflation pressures and shifting labor markets to name just a few economic concerns. In addition, we continue to maintain specific attention to the effects of elevated interest rates on the portfolio, including ongoing interest rate sensitivity analysis bank-wide. We expect any future provision adjustments will continue to reflect changes to risk rates, economic conditions, loan volumes, and other indications of credit quality.

展望未來，我們將繼續密切監測宏觀經濟中的信貸壓力，以確保當前的承保能夠反映通膨壓力和勞動力市場的變化等經濟問題。此外，我們繼續特別關注利率上升對投資組合的影響，包括對全行進行持續的利率敏感度分析。我們預計未來的任何撥備調整將繼續反映風險率、經濟狀況、貸款量和其他信貸品質指標的變化。

With that, I will now pass it back to Andy for closing remarks.

現在，我將發言交還給安迪，請他作最後發言。

Thank you, Pat. I'll wrap up by reiterating a couple of key points from our presentation on slide 18, starting with the balance sheet. We continue to seek selective growth that emphasizes full banking relationships, quality credit profiles and diversification to deliver improved returns. With this in mind, we expect total loan growth of 5% to 6% in 2025.

謝謝你，帕特。最後，我將重申第 18 頁投影片中我們示範的幾個要點，首先是資產負債表。我們將繼續尋求選擇性成長，強調全面的銀行關係、優質的信用狀況和多樣化，以實現更高的回報。考慮到這一點，我們預計 2025 年貸款總額成長率將達到 5% 至 6%。

On the other side of the balance sheet, we continue to expect to fund the majority of our loan growth with growth in our core customer deposits. As such, we expect core customer deposits to grow by 4% to 5% in 2025. On the revenue front, we've adjusted our most recent forecast for balance sheet growth, deposit betas and Fed action, along with the enhanced profitability from our balance sheet repositioning.

在資產負債表的另一邊，我們仍然期望透過核心客戶存款的成長來為大部分貸款成長提供資金。因此，我們預計 2025 年核心客戶存款將成長 4% 至 5%。在收入方面，我們調整了資產負債表成長、存款貝塔係數和聯準會行動的最新預測，以及資產負債表重新定位帶來的獲利能力增強。

With all these factors incorporated, we expect to drive net interest income growth between 12% to 13% in 2025. We also continue to feel encouraged by the durability of our noninterest income in a challenged environment over the past couple of years, and we expect to grow noninterest income by 0% to 1% in '25 relative to our adjusted 2024 base.

綜合考慮所有這些因素，我們預計 2025 年淨利息收入將成長 12% 至 13%。過去幾年，在充滿挑戰的環境下，我們的非利息收入仍然保持穩定，這讓我們感到鼓舞，我們預計，相對於 2024 年調整後的基數，2025 年非利息收入將增加 0% 至 1%。

And finally, our disciplined approach to expenses remains a foundational focus. We continue to strategically invest in our business to support growth. With this in mind, we expect to hold noninterest expense growth to a range of 3% to 4% in 2025.

最後，我們對費用的嚴謹態度仍然是我們關注的基礎。我們將繼續對我們的業務進行策略性投資以支持成長。考慮到這一點，我們預計 2025 年非利息支出成長率將保持在 3% 至 4% 之間。

And with that, I would like to open it up for questions.

現在，我想開始回答大家的提問。

(Operator Instructions) Scott Siefers, Piper Sandler.

（操作員指示）斯科特·西弗斯 (Scott Siefers)、派珀·桑德勒 (Piper Sandler)。

Good afternoon, everybody. Thanks for taking the question. Let's see, Derek, I was hoping you could just discuss your thoughts on the trajectory of the margin from the fourth quarter is 2.81%. Look, I mean we've got a good starting point given the disclosure on slide 10 with the 2.98% pro forma, which presumably gets us the full benefit from the restructuring. But just curious about the other moving parts you see on the horizon.

大家下午好。感謝您回答這個問題。讓我們看看，德瑞克，我希望你能討論一下你對第四季 2.81% 的利潤率走勢的看法。看，我的意思是，鑑於幻燈片 10 上披露的 2.98% 的預測利率，我們有了一個很好的起點，這大概可以讓我們從重組中獲得全部利益。但我只是好奇你在地平線上看到的其他活動部件。

And then I guess within the response you can maybe discuss funding dynamics in a little detail given that you'd expect to grow deposits at a lower than loans this year? I know funding with core deposits is always a key priority. So just curious on those dynamics, please.

然後我想您可以在回答中詳細討論融資動態，因為您預計今年存款的成長速度將低於貸款的成長速度？我知道核心存款融資始終是首要任務。所以我只是對這些動態感到好奇。

Yeah. Thanks, Scott. The -- so I think we're largely looking for a stable outlook in margin once we get the benefit of this there could be upside to that being that we're asset sensitive and the market bias right now seems to be fewer cuts than before. but we are asset sensitive and with the rate curve and our assumption in our outlook includes two cuts continue to drive improved profitability while rates are going down, exposes us to a little bit of that sensitivity.

是的。謝謝，斯科特。所以我認為，一旦我們從中受益，我們在很大程度上尋求利潤率的穩定前景，這可能會帶來好處，因為我們對資產敏感，而且目前的市場偏見似乎比以前削減得更少。但我們對資產很敏感，而且由於利率曲線的原因，我們在展望中的假設包括兩次降息將繼續推動盈利能力的提高，而利率則會下降，這使我們面臨一些敏感性。

So what we expect to help us aside from this transaction and lock in closer to that 3% is the benefits of the hedge the hedging. So we have the hedging details we put in back for the first time. You'll see that we continue to reduce our asset sensitivity going forward in the downgrade scenario and that is the scenario that's out there in the implied forwards.

因此，除了這筆交易之外，我們期望能夠幫助我們鎖定接近 3% 的對沖收益。這樣我們就獲得了第一次提交的對沖細節。您會發現，在降級情境下，我們將繼續降低資產敏感度，而這正是隱含遠期情境。

And then the securities repositioning gives us upside to help lock that in and stay longer. And then the auto book, we dropped for the first time, we do expect that to stabilize and continue to modestly go up, albeit at a slower pace than it has been.

然後，證券重新定位會為我們帶來好處，幫助我們鎖定它並維持更長時間。然後，我們首次降低了汽車帳簿的銷量，我們確實預計它會穩定下來並繼續小幅上漲，儘管速度比以前慢了。

From the funding dynamics, I think we -- when we put our guidance out from 2024, we had a gap there also. We managed to close that gap by the end of the year and predominantly fund our loan growth with deposit growth. I think we do want to recognize that's still take some build out from our side to support the new deposit vertical and closing that gap beyond what we've put in our guidance may start to accelerate towards the end of the year and into 2026.

從資金動態來看，我認為，當我們從 2024 年提出指導意見時，那裡也存在著差距。我們設法在年底前彌補了這一差距，並主要透過存款成長來資助我們的貸款成長。我認為，我們確實要認識到，我們仍然需要付出一些努力來支持新的存款垂直市場，而縮小超出我們指導目標的差距可能會在今年年底和 2026 年開始加速。

So we might see -- we've got essentially a 1% gap that we expect our wholesale funding to close, and we've got that GAAP capacity as a result of continuing to pay down FHLB funding from our current position. Tried to answer all your questions, Scott, but --

因此，我們可能會看到 - 我們預計批發融資將彌補基本上 1% 的缺口，並且由於我們繼續從當前狀況償還 FHLB 融資，因此我們擁有 GAAP 能力。史考特，我試著回答你所有的問題，但是--

Yeah, no, I think that's perfect and thank you. And I guess the final one was Andy, maybe you could talk about the $1.2 billion of C&I growth you expect this year? I think that compares to $750 million number you had discussed previously. I could be comparing apples to oranges but if I'm correct, maybe if you can just walk through the main drivers of that favorable delta?

是的，不，我認為這很完美，謝謝你。我想最後一個問題是安迪，也許您可以談談您預計今年 C&I 的增長額為 12 億美元？我認為這與您之前討論的 7.5 億美元的數字相比。我可能在拿蘋果和橘子進行比較，但如果我是正確的，您是否可以簡單介紹一下這種有利差異的主要驅動因素？

Yeah, of course. So I mean you're pretty close. Page 6 outlines a little bit of what the trend is right now. And I think we're roughly at about $840 million in growth in 2024 with about $1.2 billion in 2025. So if you look at our forecast going from 4%-plus growth in '24 to 5%-plus, 5% to 6% in '25, you can see it's largely coming from commercial.

是的，當然。所以我的意思是你已經很接近了。第 6 頁概述了當前的趨勢。我認為，到 2024 年，我們的成長額度將達到約 8.4 億美元，到 2025 年，我們的成長額度將達到約 12 億美元。因此，如果您查看我們的預測，即增長從24年的4％以上到25年的5％以上，再到5％到6％，您就會發現這主要來自商業。

You can also see that there's a trend emerging. We expected back half of '24 to be stronger than the first half as we were ramping up. we have largely concluded our hiring. We'll expect to announce a few more to close that out in the first quarter. But we don't intend to spend the whole year hiring.

您還可以看到一種趨勢正在出現。我們預計24年下半年的表現將比上半年更強勁，因為我們正在加強。我們的招募工作已基本完成。我們預計將在第一季宣布更多消息以結束這項計劃。但我們不打算花一整年的時間來招募。

This has been something that we announced in the fourth quarter and not only build the number, but we have gotten incredibly high-quality RM.

這是我們在第四季度宣布的事情，我們不僅在數量上取得了進步，而且還獲得了令人難以置信的高品質 RM。

So really, the increase in commercial is just a function of them being here a full year, will be more on average in the full year. and then really doing a ramped up production. So we have a lot clearer visibility into what's possible in 2025. So we just extrapolated that.

因此，實際上，商業的成長只是他們在這裡待了一整年的結果，全年的平均成長幅度會更高。然後真正提高產量。因此，我們對 2025 年可能發生的事情有了更清晰的認識。因此我們只是推論這一點。

I would add to that, that we have on the ABL and the leasing side, that's a business that we started about 3 years ago, and we've continued to grow it. It now has about $1.2 billion in outstandings. But that continues the opportunity for us as well. So the commercial growth plan that we've had is right on track, and I'm very pleased with where we are heading into the year-end and that is why we see that ramp up in growth in 2025.

我想補充一點，我們在 ABL 和租賃方面開展的業務是我們大約三年前開始的，我們一直在不斷發展。目前其未償還債務約 12 億美元。但這也為我們帶來了持續的機會。因此，我們的商業成長計畫進展順利，我對我們年底的進展感到非常滿意，這也是我們看到 2025 年成長加速的原因。

Perfect. All right. Thank you very much.

完美的。好的。非常感謝。

Thank you, Scott.

謝謝你，斯科特。

Daniel Tamayo, Raymond James.

丹尼爾塔馬約、雷蒙詹姆斯。

Thank you. Good afternoon, guys. I guess, first, just on the credit side, one for Pat here. You've talked about the deep dive that you're doing on the loan portfolio and how that's impacting the ratings on the loans. I'm just curious how far along you are in that process and if we should expect to continue to see some migration just related to the work that you're doing in that?

謝謝。大家下午好。我想，首先，就信用方面而言，這裡有一個是給帕特的。您談到了對貸款組合進行的深入研究以及這對貸款評級的影響。我只是好奇您在這個過程中進行了多久，以及我們是否應該期望繼續看到一些與您所做的工作相關的遷移？

We're doing the deep dives -- just for clarity, we're doing on a constant basis, and we've been doing it for the last couple of years. So really, what you're seeing is just early recognition of any changes in credit. So that's an ongoing process that we're constantly looking at. And I would say from quarter-to-quarter, there's certainly ins and outs that come with the normal course of business.

我們正在進行深入研究——只是為了清楚起見，我們一直在不斷進行研究，而且過去幾年我們一直在這樣做。所以實際上，您所看到的只是對信用變化的早期識別。所以這是一個我們不斷關注的持續過程。我想說，從每個季度來看，正常的業務過程中肯定會出現一些變化。

And we're just trying to be a little more proactive on how we're doing the risk rating to get ahead of it if there is going to be any stress. But the good news is we're not seeing any buildup in the nonaccrual. So we think we're staying ahead of these things as they do pop up.

我們只是想在風險評級方面更加積極主動一些，以便在出現任何壓力時能夠提前做好準備。但好消息是我們沒有看到任何不提列的累積。因此我們認為，當這些事情出現時，我們會保持領先。

Okay, thank you. And then maybe one for you, Andy. With these significant changes that you've been making overall that you've talked a lot about and then the balance sheet changes that you made here in the fourth quarter, do you think it's likely that the major changes are over?

好的，謝謝。那麼也許有一個適合你，安迪。您總體上已經談了很多這些重大變革，而且您在第四季度也對資產負債表進行了調整，您認為這些重大變革可能已經結束了嗎？

It sounds like you're through the majority of the hiring on the commercial side. But as it relates to the balance sheet structure, does it feel like the major changes are done? Or are there still some changes that you'd be interested in making in the future?

聽起來你已經完成了商業方面的大部分招募工作。但就資產負債表結構而言，是否感覺已經做出了重大改變？或者您將來還想做出一些改變嗎？

Well, it's a great question. So what I would say is what we needed to prove out is that we could grow organically and we could shift the mix. We're proving that out right now. We saw an opportunity to inorganically take down our residential real estate concentration of noncustomer residential real estate. And we've largely done that. Will there be other opportunities? We don't have anything planned in 2024.

嗯，這是一個很好的問題。所以我想說的是，我們需要證明的是，我們可以有機地發展，我們可以改變組合。我們現在正在證明這一點。我們看到了以無機方式降低非客戶住宅房地產集中度的機會。我們基本上已經做到了這一點。還會有其他機會嗎？我們對 2024 年還沒有任何計劃。

But there are always different opportunities that we look at from an organic growth standpoint. And right now because we have a business that is growing on the commercial side, it's growing its deposit base. It has household growth. We have customer satisfaction. We've invested in digital we have the ability to scale at this point.

但從有機成長的角度來看，我們總是會發現不同的機會。目前，由於我們的商業業務正在成長，因此其存款基礎也在不斷擴大。它有家庭成長。我們擁有客戶滿意度。我們已經在數位領域進行了投資，目前我們有能力擴大規模。

So opportunistically, if there's a deal in the next 12 to 24 months, we have a team that's very stable and could move down that path. But right now, for 2024, what I see is a really good opportunity to execute on the organic side.

因此從機會角度來看，如果在未來 12 到 24 個月內達成交易，我們將擁有一支非常穩定的團隊，可以沿著這條道路前進。但就目前而言，對於 2024 年來說，我看到的是一個在有機方面實施的好機會。

Okay, great. Well, I appreciate you taking my questions. Thank you.

好的，太好了。好吧，感謝您回答我的問題。謝謝。

Thanks, Daniel.

謝謝，丹尼爾。

Terry McEvoy, Stephens.

崔麥克沃伊、史蒂芬斯。

Hi, good afternoon. Thanks for taking my questions. Maybe, Andy, a question for you. The record high customer satisfaction scores, the Net Promoter Score is all moving in the right direction. My question is, how and where does that translate into growth when we look at the balance sheet and the income statement? And does that give you the confidence in the 6% core consumer deposit growth that you've talked about?

嗨，下午好。感謝您回答我的問題。也許，安迪，我要問你一個問題。創紀錄的客戶滿意度分數、淨推薦值都在朝著正確的方向發展。我的問題是，當我們查看資產負債表和損益表時，這一點如何以及在何處轉化為成長？這是否讓您對您所說的 6% 的核心消費者存款成長率有信心？

Yeah, Terry. I think if I were at a town hall, I think that was a planted question because that is right in our wheelhouse. And I've talked a lot about customer satisfaction. We've talked about household growth and we want to make that a question that's on the road somewhere. And so I'll break it down like this.

是的，特里。我想，如果我在市政廳，我認為這是一個預先提出的問題，因為這正好在我們的掌控之中。我已經多次談論過客戶滿意度。我們已經討論了家庭成長問題，我們想讓它成為一個正在路上的問題。我將這樣將其分解。

In '22, we shrunk our customer base 1%. In '23, we grew at 0% in '24, we grew at 1%, and now we're forecasting 2%. The reason that matters is because between '22 and '24, the quality of account in dollars increased 23%. So the number that we have now for growth, every time we grow by 1%, that equates to about $150 million in additional balances.

2022 年，我們的客戶群縮減了 1%。23年我們的成長率為0%，24年成長率為1%，現在我們預測成長率為2%。這很重要，因為在 22 年至 24 年間，美元帳戶的品質提高了 23%。因此，我們現在的成長數字是，每當我們成長 1%，就相當於增加約 1.5 億美元的餘額。

So this is the first time we've had a tailwind coming into the year in over a decade. And that tailwind and that productivity expectation now goes from $150 million to a 2% growth, it goes to $300 million. So we look at that then we add on top of that, we added a posit vertical that's just getting started. We've hired really talented people, and we're accelerating whatever technology expectations we have to make sure that they are effective. but there's no doubt that they are experts in what they do.

因此，這是我們十多年來第一次在新年伊始遇到順風。而這種順風和生產力預期現在從 1.5 億美元增加到 2%，達到 3 億美元。因此，我們看一下，然後在其基礎上添加一個剛開始的垂直定位。我們聘請了真正有才華的人才，並且正在加速實現所有技術期望，以確保它們的有效性。但毫無疑問，他們是各自領域的專家。

We add on to that 20-plus RMs going into the year with a balanced scorecard that incents them to bring in full relationships. That is just an acceleration of everything we've done. And then we don't talk about it a whole lot, but we've invested in our HSA business, which is also a deposit-heavy business.

我們將為今年新增 20 多名 RM，並提供平衡記分卡以激勵他們建立全面的關係。這只是我們所做一切的加速。然後我們並沒有談論太多，但我們已經投資了我們的 HSA 業務，這也是一項存款密集的業務。

So when I add household growth with quality accounts, when we add new deposit vertical, when we had increase in RM's balance scorecard and HSA, we're not just hoping that we grow faster than the marketplace. We've invested in the strategies to do that. And so that's where I get a confidence on where I see the deposit growth coming.

因此，當我透過優質帳戶增加家庭成長時，當我們增加新的垂直存款時，當我們的 RM 平衡記分卡和 HSA 增加時，我們不只是希望我們能比市場增長得更快。我們已經投資了實現這一目標的策略。因此，我對存款成長充滿信心。

I swear, they didn't e-mail me that question, I swear . And then just as a follow-up, I think we all would agree, you're positioned to play offense in '25. Some of the larger banks are now committing to grow loan growth this year and maybe more of your metro markets.

我發誓，他們沒有透過電子郵件向我發送這個問題，我發誓。然後作為後續問題，我想我們都同意，你已經準備好在 25 年發動攻擊。一些較大的銀行現在承諾今年增加貸款成長，並可能增加更多大城市市場的貸款成長。

So how did you think about your expense guide for the year? And what might be a more competitive environment, especially as what Scott brought up on the C&I side, where you had a lot of success in the second half of the year?

那麼您覺得今年的開支指南怎麼樣呢？什麼樣的環境可能會更具競爭力，尤其是像斯科特提到的 C&I 方面，您在下半年取得了很大成功？

Maybe I'll translate that question. Is it -- can we stay in the 3% to 4%? Or do we have pressure on the upside? Is that what you mean on the expense number?

也許我會翻譯這個問題。我們能保持在 3% 到 4% 之間嗎？或者說我們面臨上行壓力嗎？這就是你所說的費用數字嗎？

No, I was talking on the loan growth and large banks being more added competitive.

不，我談論的是貸款成長和大型銀行的競爭力增強。

Yeah, on the pricing side. And so what -- I've actually been asking this question this week, whether that be from our Chief Credit Officer, who sees every deal or our Head of Commercial. And across the markets that we're in, with the verticals that we're in, we have not experienced the pricing pressure on the deals that we've been putting on the books.

是的，就定價方面而言。那麼——事實上，我本週一直在問這個問題，無論是來自負責每一筆交易的首席信貸官，還是來自我們的商業主管。在我們所處的市場和垂直產業中，我們在交易中並沒有感受到定價壓力。

And as you can see, we've been putting an increased amount on the books. And so when you get quality relationship managers that have market knowledge and long-term relationships, that's the primary driver. We would not be immune, of course, if the marketplace created that pressure on pricing on new deals, but we just haven't seen it at this point.

正如您所看到的，我們帳面上的金額已經增加了。因此，當您找到擁有市場知識和長期關係的優質關係經理時，這就是主要的驅動力。當然，如果市場對新交易的定價造成壓力，我們也無法免受其害，但目前我們還沒有看到這種情況。

Thanks for taking my questions.

感謝您回答我的問題。

Thank you, Terry.

謝謝你，特里。

(Operator Instructions) And if there are no further questions, I'd like to turn the floor back to management for any closing comments.

（操作員指示）如果沒有其他問題，我想將發言權交還給管理階層，請他們發表最後評論。

Well, what I will say in closing is we have as much momentum heading into the year as we've had in the four years that I've been here. We appreciate your interest in the Associated Bank story, and we look forward to providing updates as the year goes along. Thank you.

最後我想說的是，我們今年的勢頭與我在這裡任職的四年一樣強勁。感謝您對 Associated Bank 故事的關注，我們期待在今年內提供最新消息。謝謝。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you again for your participation.

今天的電話會議到此結束。現在您可以斷開您的線路。再次感謝您的參與。