Banner Corp (BANR) 2023 Q2 法說會逐字稿

Hello, everyone, and welcome to Banner Corporation Second Quarter '23 Conference webcast. My name is Daisy, and I'll be coordinating your call today. (Operator Instructions)

大家好，歡迎收看 Banner Corporation '23 第二季會議網路廣播。我叫黛西，今天我將協調您的電話。 （操作員說明）

I would now like to hand over to your host, President and Chief Executive Officer of Banner Corporation, Mark Grescovich, to begin. Mark, please go ahead.

現在請主持人、班納公司總裁兼執行長馬克‧格雷斯科維奇 (Mark Grescovich) 開始發言。馬克，請繼續。

Thank you, Daisy, and good morning, everyone. I would also like to welcome you to the Second Quarter 2023 Earnings Call for Banner Corporation. Joining me on the call today is Peter Conner, Banner Corporation's Chief Financial Officer; Jill Rice, our Chief Credit Officer; Rob Butterfield, our Chief Financial Officer of Banner Bank; and Rich Arnold, our Head of Investor Relations.

謝謝黛西，大家早安。我也歡迎您參加 Banner Corporation 2023 年第二季財報電話會議。今天和我一起參加電話會議的是班納公司 (Banner Corporation) 財務長彼得康納 (Peter Conner)。吉爾‧賴斯 (Jill Rice)，我們的首席信貸官； Rob Butterfield，旗幟銀行財務長；以及我們的投資者關係主管 Rich Arnold。

Rich, would you please read our forward-looking safe harbor statement?

Rich，您能閱讀我們的前瞻性安全港聲明嗎？

Sure, Mark. Good morning. Our presentation today discusses Banner's business outlook and will include forward-looking statements. Those statements include descriptions of management's plans, objectives or goals for future operations, products or services, forecast of financial or other performance measures and statements about Banner's general outlook for economic and other conditions. We also may make other forward-looking statements in the question-and-answer period following management's discussion. These forward-looking statements are subject to a number of risks and uncertainties, and actual results may differ materially from those discussed today.

當然，馬克。早安.我們今天的演講討論了班納的業務前景，並將包括前瞻性陳述。這些陳述包括對管理層未來營運、產品或服務的計劃、目的或目標的描述、財務或其他績效指標的預測以及有關班納對經濟和其他狀況的總體前景的陳述。我們也可能在管理階層討論後的問答階段做出其他前瞻性陳述。這些前瞻性陳述受到許多風險和不確定性的影響，實際結果可能與今天討論的結果有重大差異。

Information on the risk factors that could cause actual results to differ are available in the earnings press release that was released yesterday and a recently filed Form 10-Q for the quarter ended March 31, 2023. Forward-looking statements are effective only as of the date they are made, and Banner assumes no obligation to update information concerning its expectations. Mark?

有關可能導致實際結果出現差異的風險因素的信息，請參閱昨天發布的收益新聞稿和最近提交的截至2023 年3 月31 日的季度的10-Q 表格。前瞻性陳述僅在截至2023 年3 月31 日的季度有效。邦納不承擔更新有關其期望的資訊的義務。標記？

Thank you, Rich. As is customary, today, we will cover 4 primary items with you. First, I will provide you high-level comments on Banner's second quarter 2023 performance. Second, the actions Banner continues to take to support all of our stakeholders, including our Banner team, our clients, our communities and our shareholders. Third, Jill Rice will provide comments on the current status of our loan portfolio. And finally, Peter Conner and Rob Butterfield will provide more detail on our operating performance for the quarter as well as comments on our balance sheet.

謝謝你，里奇。按照慣例，今天我們將向您介紹 4 個主要項目。首先，我將向您提供 Banner 2023 年第二季業績的高級評論。其次，邦納繼續採取行動支持我們的所有利益相關者，包括我們的邦納團隊、我們的客戶、我們的社區和我們的股東。第三，吉爾·賴斯將對我們貸款組合的現狀發表評論。最後，彼得康納 (Peter Conner) 和羅布巴特菲爾德 (Rob Butterfield) 將提供有關我們本季度營運業績的更多詳細資訊以及對我們資產負債表的評論。

Before I get started, I want to again thank all of my 2,000 colleagues in our company, who are working extremely hard to assist our clients and communities. Banner has lived our core values, summed up as doing the right thing for the past 133 years. Our overarching goal continues to be to do the right thing for our clients, our communities, our colleagues, our company and our shareholders and to provide a consistent and reliable source of commerce and capital through all economic cycles and change events. I am pleased to report again to you that is exactly what we continue to do. I am very proud of the entire Banner team that are living our core values.

在開始之前，我想再次感謝我們公司的 2,000 名同事，他們非常努力地幫助我們的客戶和社區。過去 133 年來，班納一直實踐我們的核心價值觀，即做正確的事。我們的首要目標仍然是為我們的客戶、我們的社區、我們的同事、我們的公司和我們的股東做正確的事情，並在所有經濟週期和變化事件中提供一致和可靠的商業和資本來源。我很高興再次向您報告，這正是我們將繼續做的事情。我為整個橫幅團隊實踐我們的核心價值感到非常自豪。

Now let me turn to an overview of our performance. As announced, Banner Corporation reported a net profit available to common shareholders of $39.6 million or $1.15 per diluted share for the quarter ended June 30, 2023. This compares to a net profit to common shareholders of $1.39 per share for the second quarter of 2022 and $1.61 per share for the first quarter of 2023. The earnings comparison is primarily impacted by the provision for credit losses and the increase in funding costs. Our strategy to maintain a moderate risk profile and the investments we have made during our Banner Forward program to improve our operating performance have positioned the company well to weather recent market headwinds. Peter and Rob will discuss these items in more detail shortly.

現在讓我回顧一下我們的表現。正如所宣布的，班納公司報告稱，截至2023 年6 月30 日的季度，普通股股東可獲得的淨利潤為3960 萬美元，即稀釋後每股收益1.15 美元。相比之下，2022 年第二季普通股股東淨利為每股1.39 美元， 2023 年第一季每股 1.61 美元。收益比較主要受到信貸損失撥備和融資成本增加的影響。我們維持適度風險狀況的策略以及我們在 Banner Forward 計劃中為提高經營績效而進行的投資，使公司能夠很好地應對近期的市場逆風。彼得和羅布很快就會更詳細地討論這些項目。

To illustrate the core earnings power of Banner, I would direct your attention to pretax pre-provision earnings, excluding gains and losses on the sale of securities, Banner Forward expenses, gains on the sale of branches and changes in fair value of financial instruments. Our second quarter core earnings were $63.4 million compared to $57.8 million for the second quarter of 2022.

為了說明Banner的核心獲利能力，我建議您專注於稅前撥備前收益，不包括出售證券的損益、Banner遠期費用、出售分行的收益以及金融工具公允價值的變動。我們第二季的核心收益為 6,340 萬美元，而 2022 年第二季的核心收益為 5,780 萬美元。

Banner second quarter 2023 revenue from core operations increased 7% to $158.6 million compared to $148.3 million for the second quarter of 2022. We continue to benefit from a strong core deposit base that has proved to be resilient and loyal to Banner in the wake of very competitive interest rate environment, a very good net interest margin and core expense control.

班納 2023 年第二季核心業務收入成長 7%，達到 1.586 億美元，而 2022 年第二季為 1.483 億美元。我們繼續受益於強大的核心存款基礎，事實證明，在非常大的有競爭力的利率環境、非常好的淨利差和核心費用控制。

Overall, this resulted in a return on average assets of 1.02% for the second quarter of 2023. Once again, our core performance reflects continued execution on our super community bank strategy, that is growing new client relationships, maintaining our core funding position, promoting client loyalty and advocacy through our responsive service model and demonstrating our safety and soundness through all economic cycles and change events. To that point, our core deposits represent 90% of total deposits. Further, we continued our strong organic generation of new relationships and our loans increased 11% over the same period last year.

總體而言，這導致 2023 年第二季的平均資產回報率為 1.02%。我們的核心業績再次反映了我們超級社區銀行策略的持續執行，即發展新客戶關係、維持我們的核心融資地位、促進透過我們的回應式服務模式贏得客戶忠誠度和擁護，並在所有經濟週期和變革事件中展現我們的安全性和穩健性。到目前為止，我們的核心存款佔總存款的90%。此外，我們繼續強勁地建立新的關係，我們的貸款比去年同期增加了 11%。

Reflective of the solid performance, coupled with our strong regulatory capital ratios and the fact that we increased our tangible common equity per share by 5% from the same period last year, we announced a core dividend of $0.48 per common share. As I've mentioned on previous calls, Banner published our environmental, social and governance highlights reported last December, which I hope you have had an opportunity to review. This report reflects the many ways in which we continually strive to do the right thing in support of our clients, our communities and our colleagues and provides an outline of the level of commitment Banner has to the many communities it serves.

為了反映穩健的業績，加上我們強大的監管資本比率，以及我們每股有形普通股較去年同期增加 5%，我們宣布每股普通股核心股息為 0.48 美元。正如我在之前的電話會議中提到的，班納發布了我們去年 12 月報告的環境、社會和治理要點，我希望您有機會回顧一下。該報告反映了我們不斷努力做正確的事情以支持我們的客戶、社區和同事的多種方式，並概述了班納對其所服務的許多社區的承諾程度。

Finally, I'm pleased to say that we continue to receive marketplace recognition and validation of our business model and our value proposition. Banner was again named one of America's 100 Best Banks and one of the Best Banks in the world by Forbes. Newsweek named Banner one of the most trustworthy companies in America. S&P Global Market Intelligence ranked Banner's financial performance among the top 50 public banks with more than $10 billion in assets. And the digital banking provider, Q2 Holdings awarded Banner, their Bank of the Year for excellence. Additionally, as we've noted previously, Banner Bank received an outstanding CRA rating in our most recent CRA Examination.

最後，我很高興地說，我們的業務模式和價值主張繼續獲得市場的認可和驗證。班納再次被《富比士》評為美國 100 家最佳銀行之一和全球最佳銀行之一。 《新聞周刊》將班納評為美國最值得信賴的公司之一。標準普爾全球市場情報將班納的財務表現列為資產超過 100 億美元的前 50 家公共銀行之一。數位銀行提供者 Q2 Holdings 因卓越表現而授予 Banner 年度最佳銀行獎。此外，正如我們之前指出的，Banner Bank 在我們最近的 CRA 考試中獲得了出色的 CRA 評級。

Let me now turn the call over to Jill to discuss the trends in our loan portfolio and her comments on Banner's credit quality. Jill?

現在讓我將電話轉給吉爾，討論我們貸款組合的趨勢以及她對班納信用品質的評論。吉爾？

Thank you, Mark, and good morning, everyone. Banner's credit metrics continue to be strong and our super community bank model continues to serve our clients well. Delinquent loans as of June 30 were 0.28% of total loans, a reduction from 0.37% of total loans reported as of March 31 and compared to 0.19% as of June 30, 2022. Adversely classified loans represent 1.38% of total loans, down from 1.46% as of linked quarter and compared to 1.63% as of June 30, 2022. The Net loan losses continue to be negligible at $336,000 for the 3 months ending June 30, and Banner's nonperforming assets remained modest at 0.18% of the total assets.

謝謝你，馬克，大家早安。班納的信用指標仍然強勁，我們的超級社區銀行模式繼續為我們的客戶提供良好的服務。截至6 月30 日，拖欠貸款佔貸款總額的0.28%，較截至3 月31 日報告的貸款總額的0.37% 有所下降，而截至2022 年6 月30 日的比例為0.19%。不利分類貸款佔貸款總額的1.38%，低於截至相關季度為1.46%，而截至2022 年6 月30 日為1.63%。截至6 月30 日的三個月，淨貸款損失仍然微不足道，為336,000 美元，班納的不良資產仍維持在總資產的0.18% 的適度水準。

As a result of the loan growth reported in the quarter, coupled with further deterioration in the economic forecast, we posted a provision for loan losses of $3.6 million as well as a $1.2 million reserve for unfunded loan commitments, resulting in a net provision for loan losses of $4.8 million. In addition, we recorded a $2 million provision for our securities available for sale in conjunction with ratings downgrades on financial institutions subordinated debt held within the investment portfolio. In total, the provision for credit losses for the quarter was $6.8 million. After the provision, our ACL reserve totaled $144.7 million or 1.38% of total loans as of June 30. This is a reduction of 1 basis point when compared to the linked quarter and compares to coverage of 1.36% as of June 30, 2022. The reserve currently provides 513% coverage of our nonperforming loans.

由於本季報告的貸款成長，加上經濟預測進一步惡化，我們提列了 360 萬美元的貸款損失撥備，以及 120 萬美元的未融資貸款承諾準備金，從而導致貸款撥備淨額損失480 萬美元。此外，我們還為出售的證券記錄了 200 萬美元的撥備，同時下調了投資組合中持有的金融機構次級債務的評級。本季信貸損失撥備總額為 680 萬美元。撥備後，截至6 月30 日，我們的ACL 準備金總額為1.447 億美元，佔貸款總額的1.38%。與上一季相比減少了1 個基點，而截至2022 年6 月30 日的覆蓋率為1.36%。目前，儲備金涵蓋了我們 513% 的不良貸款。

A review of the loan activity reflects increased loan origination volumes when compared to the prior quarter, with loan totals increasing $312 million or 12% on an annualized basis. Excluding the growth in one- to four-family residential loans, the annualized growth rate is 9%. C&I-line utilization increased 1% in the quarter, and we reported moderate loan growth in both commercial and small business lending, a testament to the success of our super community bank model and commitment to being open for business through all cycles.

對貸款活動的審查表明，與上一季相比，貸款發放量有所增加，貸款總額增加了 3.12 億美元，按年化計算增加了 12%。剔除一到四戶住宅貸款的成長，年化成長率為9%。本季工商業線利用率成長了 1%，我們報告商業和小型企業貸款均出現適度增長，這證明了我們超級社區銀行模式的成功以及在所有周期開放業務的承諾。

Year-over-year, commercial business loans are up 11%. Excluding multifamily, our commercial real estate balances increased 2% in the quarter, primarily related to expanding relationships with existing clients who either acquired new properties or who moved additional loans to Banner as they refinance properties held in their portfolios. Balances are down 1% when compared to June 30, 2022, and as discussed last quarter, the current interest rate environment, coupled with the changing economic environment is expected to further mute growth in commercial real estate loans in the near term.

商業企業貸款年增 11%。不包括多戶住宅，我們的商業房地產餘額在本季度增長了2%，這主要與擴大與現有客戶的關係有關，這些客戶要么購買了新房產，要么在為投資組合中持有的房產進行再融資時向Banner 轉移了額外貸款。與 2022 年 6 月 30 日相比，餘額下降了 1%，正如上季度所討論的，當前的利率環境以及不斷變化的經濟環境預計將在短期內進一步抑製商業房地產貸款的成長。

The portfolio continues to perform well. And similar to last quarter, less than 2% of the total CRE portfolio is adversely classified at this time. Our office portfolio remains stable in size as well as credit quality. In line with prior disclosures and as reflected in the investor presentation, the office portfolio currently represents 6.5% of total loans, remains very granular in size, geographically diversified and is split roughly 50-50 between investor CRE and owner occupied. There has been negligible change in the composition of the office portfolio since the report out last quarter. Still, I will provide a quick review related to the metropolitan area office statistics.

該投資組合繼續表現良好。與上季類似，目前商業房地產投資組合中只有不到 2% 被不利分類。我們的辦公室投資組合規模和信用品質保持穩定。根據先前揭露的資訊以及投資者介紹中所反映的情況，辦公室投資組合目前佔貸款總額的6.5%，其規模仍然非常細化，地域多樣化，投資者CRE 和自住業主之間的比例約為50-50。自上季報告發布以來，辦公大樓投資組合的組成變化甚微。不過，我將提供與大都會區辦公室統計數據相關的快速回顧。

We have less than $60 million of office loans in the city of Seattle. And of that, less than $10 million of exposure in the central business district with an average loan size of $1.4 million. In Sacramento, we have slightly over $40 million of office secured loans, of which only 2 are located in the central business district with an aggregate exposure of less than $5 million. We have less than $15 million of exposure in the city of Bellevue, Washington, with an average loan size of less than $1.5 million. We have less than $15 million in exposure in the city of Portland, Oregon, with an average loan size of less than $1 million.

我們在西雅圖市的辦公大樓貸款不到 6,000 萬美元。其中，中央商務區的貸款金額不到 1,000 萬美元，平均貸款規模為 140 萬美元。在薩克拉門托，我們擁有略高於 4000 萬美元的辦公大樓擔保貸款，其中只有 2 個位於中央商務區，總風險低於 500 萬美元。我們在華盛頓州貝爾維尤市的風險敞口不到 1,500 萬美元，平均貸款規模不到 150 萬美元。我們在俄勒岡州波特蘭市的風險敞口不到 1500 萬美元，平均貸款規模不到 100 萬美元。

In Los Angeles, our aggregate office exposure is less than $10 million, and the average loan size is under $1 million. We currently have only one office property in San Francisco, with a balance of under $1.4 million and importantly, within these metropolitan areas, we currently have only 2 office properties adversely classified with an aggregate balance of less than $1.5 million.

在洛杉磯，我們的辦公室總風險低於 1,000 萬美元，平均貸款規模低於 100 萬美元。目前，我們在舊金山只有一處辦公物業，餘額低於 140 萬美元，重要的是，在這些大都市地區，我們目前只有 2 處辦公物業被不利分類，總餘額低於 150 萬美元。

Multifamily real estate loans were flat in the quarter but are up 22% year-over-year. In total, the Multifamily portfolio continues to be approximately 50% affordable housing and 50% market rate. And as I have commented before, the average loan size is less than $1.5 million with balance of spread across our footprint.

本季多戶房地產貸款持平，但年增 22%。整體而言，多戶住宅投資組合中的經濟適用房仍佔約 50%，市價佔 50%。正如我之前評論過的，平均貸款規模不到 150 萬美元，我們的足跡遍布貸款餘額。

Construction and development loan balances declined by 3% in the quarter, reflecting a continued decline in residential construction projects as sales of completed residential starts continue to outpace replacements within this product line. When compared to June of 2022, construction and land development loans reflect an increase of 8% driven primarily by the growth in the multifamily construction portfolio, and to a much lesser extent, to growth in the land development book. Multifamily construction loans have increased nearly 70% year-over-year with over 2/3 of the dollars related to affordable housing projects. While the volume of residential construction starts have slowed, home sales did pick up this quarter across our footprint, a function of limited housing inventory that is compounded by the lack of resale housing supply, which is working in a builder's favor.

本季建築和開發貸款餘額下降了 3%，反映出住宅建設項目持續下降，因為該產品線內已竣工住宅開工銷售量繼續超過替代品。與 2022 年 6 月相比，建築和土地開發貸款增加了 8%，這主要是由多戶建築投資組合的成長所推動的，其次是土地開發帳簿的成長。多戶住宅建設貸款年增近 70%，其中超過 2/3 的美元與經濟適用房專案相關。儘管住宅開工量有所放緩，但本季度我們的房屋銷售確實有所回升，這是由於住房庫存有限，再加上轉售住房供應不足，這對建築商有利。

The portfolio remains diversified, both in product mix and price points start to spread across our geography, and I continue to be pleased with the portfolio's performance. And it bears repeating that we have remained consistent in our underwriting and our land exposure continues to be limited to our strongest sponsors. As noted last quarter, builders have been proactive in marketing the product to keep completed homes moving. They are being selective in adding new starts, and they remain well capitalized and able to absorb a longer sales cycle and reduce profit margins.

該投資組合仍然保持多元化，無論是產品組合還是價格點都開始在我們的地區蔓延，我仍然對該投資組合的表現感到滿意。值得重申的是，我們在承銷方面保持一致，我們的土地敞口仍然僅限於我們最強大的贊助商。正如上個季度所指出的，建築商一直在積極行銷該產品，以保持已完工的房屋繼續運作。他們選擇性地增加新項目，並且資本充足，能夠承受更長的銷售週期並降低利潤率。

In total, residential construction exposure remains acceptable at 5% of the portfolio, down 1%. And of that, 45% is comprised of our custom one- to four-family residential mortgage product. When you include multifamily, commercial construction and land, the total construction exposure remained at 14% of total loans. As expected, agricultural loan balances increased in the quarter due to operating line usage, up 14% when compared to the linked quarter. Balances are up 9% year-over-year. And lastly, as noted in the earnings release, we again reported growth in the consumer mortgage portfolio, up 7% in the quarter, continuing the trend of retaining completed all on custom construction loans on balance sheet.

總體而言，住宅建設風險仍處於可接受的水平，佔投資組合的 5%，下降了 1%。其中，45% 由我們客製化的一到四戶住宅抵押貸款產品組成。當包括多戶住宅、商業建築和土地時，總建築風險仍佔貸款總額的 14%。正如預期的那樣，由於經營額度的使用，本季農業貸款餘額增加，與上一季相比增加了 14%。餘額年增 9%。最後，正如收益報告中所指出的，我們再次報告消費者抵押貸款組合的成長，本季成長 7%，延續了資產負債表上保留所有已完成客製化建築貸款的趨勢。

I will close on the same way I started, noting that Banner's credit metrics continue to be strong and our Super community Bank model continues to serve our clients well. As I said last quarter, our credit culture is designed for success through all business cycles and our moderate risk profile with consistent underwriting and robust review processes is a source of strength, as is our solid reserve for loan losses and capital base. Certainly, the economic environment continues to be uncertain. And when the effects of a recession begin to emerge, we will not be immune. That said, we remain well positioned to navigate whatever this economic cycle brings.

我將以與開始時相同的方式結束，指出班納的信用指標仍然強勁，我們的超級社區銀行模式繼續為我們的客戶提供良好的服務。正如我上季度所說，我們的信貸文化是為了在所有商業週期中取得成功而設計的，我們的適度風險狀況、一致的承保和穩健的審查流程是我們的力量源泉，我們堅實的貸款損失準備金和資本基礎也是如此。當然，經濟環境仍充滿不確定性。當經濟衰退的影響開始顯現時，我們將無法倖免。也就是說，我們仍然處於有利地位，可以應對經濟週期帶來的任何影響。

With that, I'll turn the microphone over to Peter for his comments. Peter?

接下來，我將把麥克風交給 Peter，聽聽他的評論。彼得？

Thank you, Jill, and good morning, everyone. This will be my last earnings call after nearly 8 years as CFO since the company's acquisition of AmericanWest Bank. Having served the company through a unique period of economic volatility, I am proud to leave the company better than I found it. The strength of our balance sheet, the level of our operating performance, the depth of our executive management team and the client-centric culture our colleagues deliver every day are among the very best advanced peer group. I want to thank Mark and the Board for the opportunity that they allowed me to play in the company's success in building long-term franchise value.

謝謝吉爾，大家早安。這是我自公司收購美國西部銀行以來擔任財務長近 8 年後的最後一次財報電話會議。我為公司服務過一段獨特的經濟波動時期，我很自豪離開時公司比我剛開始時做得更好。我們的資產負債表實力、營運績效水準、執行管理團隊的深度以及我們同事每天所傳遞的以客戶為中心的文化都屬於最先進的同業群體之列。我要感謝馬克和董事會為我提供了機會，讓我能夠為公司成功建立長期特許經營價值做出貢獻。

With that, I hand the job of discussing our financial results over to Rob.

這樣，我就把討論我們財務表現的工作交給羅布了。

Thank you, Peter. We reported $1.15 per diluted share for the second quarter compared to $1.61 per diluted share for the prior quarter. The $0.46 decrease in earnings per share was primarily due to lower net interest income and a higher provision for credit losses. Core revenue, excluding losses on the sale of securities and changes in investments carried at fair value, decreased $11.8 million from the prior quarter, primarily due to a decrease in net interest income.

謝謝你，彼得。我們報告第二季稀釋後每股收益為 1.15 美元，而上一季稀釋後每股收益為 1.61 美元。每股收益下降 0.46 美元，主要是由於淨利息收入減少和信貸損失撥備增加。核心收入（不包括出售證券的損失和以公允價值計量的投資變動）較上一季減少 1,180 萬美元，主要是由於淨利息收入減少。

Total loans increased $324 million during the quarter, with a $312 million increase in held-for-portfolio loans and a $12 million increase in held-for-sale loans. One- to four-family real estate loans increased $88 million. Commercial business loans increased $69 million and commercial real estate loans increased $60 million.

本季貸款總額增加了 3.24 億美元，其中持有待售貸款增加了 3.12 億美元，持有待售貸款增加了 1,200 萬美元。一到四戶家庭的房地產貸款增加了 8,800 萬美元。商業企業貸款增加 6,900 萬美元，商業房地產貸款增加 6,000 萬美元。

Total security balances declined $202 million. The decline was primarily due to the sale of $127 million of available for sale securities, with changes in fair value and normal portfolio cash flows also contributing to the decline. We will consider a similar level of security sales during the third quarter. Further sales could be contemplated depending on market conditions.

擔保餘額總額減少了 2.02 億美元。下降的主要原因是出售了 1.27 億美元的可供出售證券，公允價值和正常投資組合現金流的變化也導致了下降。我們將考慮在第三季進行類似水平的證券銷售。根據市場情況，可以考慮進一步銷售。

Ending core deposits decreased $462 million from the prior quarter due to seasonal tax payments and outflows of rate-sensitive nonoperating balances. The decrease in core deposits was primarily isolated to the month of April, as we experienced an increase in core deposits during the second half of the quarter. The decline in core deposits was mostly offset by a $407 million increase in CDs, including $204 million of brokered CDs, resulting in a total deposit decline of $55 million or 0.4% from the prior quarter. The bank continues to use exception pricing and selective deposit rate specials on CDs and relationship savings accounts to offer clients fair but not top of market rates.

由於季節性納稅和利率敏感的非營業餘額流出，期末核心存款較上一季減少 4.62 億美元。核心存款的下降主要發生在 4 月份，因為我們在本季後半段經歷了核心存款的增加。核心存款的下降大部分被存款證增加 4.07 億美元所抵消，其中包括 2.04 億美元的經紀存款證，導致存款總額較上一季下降 5,500 萬美元，即下降 0.4%。該銀行繼續對存款證和關係儲蓄帳戶採用例外定價和選擇性存款利率優惠，為客戶提供公平但不高於市場的利率。

Banner's liquidity and capital profile continues to remain strong with all capital ratios in excess of the well-capitalized levels and a significant off-balance sheet borrowing capacity as reflected in the low level of wholesale borrowings at the end of the quarter. Net interest income decreased by $10.8 million from the prior quarter due to the increase in funding costs. Compared to the prior quarter, average loan balances increased $210 million, while yield on loans increased 13 basis points due to increases on floating and adjustable rate loans as well as new production coming on at higher interest rates.

班納的流動性和資本狀況繼續保持強勁，所有資本比率都超過資本充足水平，並且表外借款能力顯著，季度末批發借款水平較低就反映了這一點。由於融資成本增加，淨利息收入較上季減少 1,080 萬美元。與上一季相比，平均貸款餘額增加了 2.1 億美元，而由於浮動利率和可調利率貸款的增加以及新產品以更高的利率投產，貸款收益率增加了 13 個基點。

Total average interest-bearing cash and investment balances declined $352 million from the prior quarter, while the average yield on the combined cash and investment balances decreased 5 basis points due to mortgage-backed securities representing a higher mix of the overall security portfolio. Total cost of funds increased 46 basis points to 86 basis points due to increases in deposit rates and borrowing costs. The total cost of deposits increased 36 basis points to 64 basis points, reflecting increases in the rates on interest-bearing deposits as well as a shift in the mix of deposits with some noninterest-bearing deposits moving into CDs and other interest-bearing deposits.

平均計息現金和投資餘額總額比上一季下降了3.52 億美元，而現金和投資餘額合併的平均收益率下降了5 個基點，原因是抵押貸款支持證券在整體證券投資組合中所佔比例較高。由於存款利率和借貸成本上升，總資金成本增加 46 個基點至 86 個基點。存款總成本增加36個基點至64個基點，反映出計息存款利率上升以及存款結構的轉變，一些無息存款轉向存款證和其他計息存款。

The brokered CDs issued during the quarter added 3 basis points to the cost of deposits for the quarter. Net interest margin decreased 30 basis points to 4.0% on a tax equivalent basis. The decrease was driven by higher funding costs on interest-bearing deposits, partially offset by higher yields on earning assets. During the second half of the quarter, the pace of net interest margin compression slowed as core deposits levels stabilized and earning asset yields continue to increase. Going forward, we expect net interest margin will experience some additional compression, but at a slower pace than we experienced in the second quarter, contingent on the pace of further Fed fund rate hikes.

本季發行的經紀 CD 使本季的存款成本增加了 3 個基點。以稅收等值計算，淨利差下降 30 個基點至 4.0%。下降的原因是生息存款融資成本上升，但生息資產收益率上升部分抵消了下降。下半年，隨著核心存款水準穩定、生息資產殖利率持續上升，淨利差壓縮步伐放緩。展望未來，我們預計淨利差將經歷一些額外的壓縮，但壓縮速度將低於第二季的壓縮速度，這取決於聯邦基金利率進一步升息的步伐。

Total noninterest income declined $855,000 from the prior quarter. The current quarter included a $4.5 million loss on the sale of securities, the payback on these trades averaged 2 years. In addition, we recorded a $3.2 million negative fair value adjustment on investments held for trading as spreads widened and market rates increased.

非利息總收入較上一季下降 855,000 美元。本季包括 450 萬美元的證券銷售損失，這些交易的投資回收期平均為 2 年。此外，隨著利差擴大和市場利率上升，我們對持有交易的投資進行了 320 萬美元的負公允價值調整。

Core noninterest income, excluding the loss on the sale of securities and changes in investments carried at fair value, decreased $981,000, primarily due to a $1 million decline in mortgage banking income due to a negative fair value adjustment on multifamily loans held for sale. Total residential mortgage production, including both loans held for investment and held-for-sale increased 52% from the prior quarter. Despite the large percentage increase from the prior quarter, volumes remain well below the prior quarter due to lower revamped activity with purchases accounting for 93% of the mortgage loan production for the current year quarter.

核心非利息收入（不包括出售證券的損失和以公允價值計量的投資變動）減少了 981,000 美元，主要是由於待售多戶貸款的公允價值負調整導致抵押貸款銀行業務收入減少 100 萬美元。住宅抵押貸款總量（包括投資貸款和出售貸款）較上一季增加 52%。儘管與上一季相比增幅較大，但由於改造活動減少，購買量佔本季抵押貸款產量的 93%，成交量仍遠低於上一季。

During the month of June, Banner modified its NSF and overdraft fee program by no longer charging fees on returned items. We anticipate this change will result in a quarterly reduction in our deposit fees of approximately $750,000. Lastly, miscellaneous income decreased $212,000 due to a decrease in the fair value of SBA servicing rights, partially offset by higher swap fee income.

6 月份，Banner 修改了其 NSF 和透支費用計劃，不再對退回的物品收取費用。我們預計這項變更將導致我們的存款費用每季減少約 75 萬美元。最後，由於 SBA 服務權的公允價值下降，雜項收入減少了 212,000 美元，但部分被掉期費收入增加所抵銷。

Total noninterest expense increased $784,000 from the prior quarter, primarily due to increased deposit insurance expense and higher salary and benefit expense, partially offset by a higher deduction for capitalized loan origination costs. Deposit insurance expense increased $949,000 due to an increase in the assessment rate. Compensation expense increased $583,000 due to the first full quarter of normal annual salary and wage adjustments made towards the end of the first quarter as well as higher commission expense, partially offset by lower payroll taxes and lower incentive accruals. Capitalized loan origination costs increased $1 million due to higher loan production compared to the prior quarter.

非利息支出總額比上一季增加了 784,000 美元，主要是由於存款保險費用增加以及工資和福利費用增加，部分被資本化貸款發放成本的較高扣除額所抵消。由於評估率提高，存款保險費用增加了 949,000 美元。由於第一季末正常年薪和工資調整以及佣金費用增加，薪資費用增加了 583,000 美元，但部分被較低的工資稅和較低的應計獎勵所抵消。由於貸款產量較上一季增加，資本化貸款發放成本增加了 100 萬美元。

Despite the headwinds of the competitive rate environment, the pace of core deposit outflows continued to moderate this quarter as we benefited from net deposit account growth in our consumer and small business clients due to the success of our targeted deposit sales and marketing campaigns. The company continues to invest in technology to further streamline its deposits at opening and loan origination processes while enhancing the digital client experience and continues to take advantage of the ongoing market disruption with selective additions to the commercial and small business teams.

儘管存在競爭性利率環境的不利因素，但本季核心存款流出的步伐繼續放緩，因為我們有針對性的存款銷售和行銷活動的成功，使我們受益於消費者和小型企業客戶的淨存款帳戶增長。該公司繼續投資技術，以進一步簡化存款開立和貸款發放流程，同時增強數位客戶體驗，並繼續利用持續的市場混亂，選擇性地增加商業和小型企業團隊。

This concludes my prepared comments. I will turn it back to Mark.

我準備好的評論到此結束。我會把它轉回給馬克。

Thank you, Rob, Peter and Jill, for your prepared comments. I would also like to remind everybody on the call that while this is Peter Conner's last earnings call for Banner Corporation, he is committed to be the CFO through the third quarter of this year 2023, and he will remain (inaudible) for our company until -- through the first quarter of 2024. So Peter, thank you for your many years of service and dedication to Banner. We appreciate that very much.

感謝 Rob、Peter 和 Jill 準備好的評論。我還想提醒參加電話會議的所有人，雖然這是Peter Conner 對Banner Corporation 的最後一次財報電話會議，但他承諾在2023 年第三季度之前擔任首席財務官，並且他將繼續（聽不清）為我們公司工作，直到—直到 2024 年第一季。Peter，感謝您多年來對 Banner 的服務和奉獻。我們非常感謝。

With that, that concludes our prepared remarks. And Daisy, we will now open the call and welcome your questions.

我們準備好的演講到此結束。黛西，我們現在開始通話並歡迎您提問。

(Operator Instructions) Our first question today comes from Jeff Rulis from D.A. Davidson.

（操作員說明）今天我們的第一個問題來自 D.A. 的 Jeff Rulis。戴維森。

This is Andrew on for Jeff today. Just to start out on the deposit cost side. Just wondering if there's any update on how we should be thinking about deposit betas through the cycle with the accelerating deposit costs this quarter?

今天我是安德魯為傑夫發言。只是從存款成本方面開始。只是想知道隨著本季存款成本的加速，我們應該如何考慮整個週期中的存款貝塔值是否有任何更新？

Andrew, this is Mark, and welcome, very good question, and I'll turn it over to Rob.

安德魯，我是馬克，歡迎，這是一個很好的問題，我會把它交給羅布。

All right. Thanks, Mark. Andrew, yes. So to this point, we have been modeling our deposit betas similar to the last rate cycle, which was 25%, excluding brokered deposits. And at this point, we think it could creep on that, but we expect to continue to perform well on a relative basis compared to the industry average. And the other thing I'll note on that is, as far as our deposit specials that we've been running, the last increase in our deposit special we experienced was the beginning of May. So there hasn't been any really change in our deposit specials. I think ultimately, it's going to be based more on the shift that we see between deposits.

好的。謝謝，馬克。安德魯，是的。因此，到目前為止，我們一直在對存款貝塔值進行建模，與上一個利率週期類似，即 25%，不包括經紀存款。目前，我們認為它可能會繼續蔓延，但我們預計與行業平均水平相比，其相對基礎上將繼續表現良好。我要注意的另一件事是，就我們一直在運行的存款特價而言，我們經歷的最後一次存款特價增加是在五月初。所以我們的存款特價並沒有任何真正的改變。我認為最終，這將更多地基於我們看到的存款之間的轉變。

Got it. And then just one more question on deposits. It looks like noninterest-bearing has fallen to about 39% of total deposits and -- just wondering how much of that runoff stems from seasonal outflows this quarter?

知道了。然後還有一個關於存款的問題。看來無息存款已下降至總存款的 39% 左右，只是想知道其中有多少來自本季的季節性資金外流？

Yes. So I guess my numbers might be a bit different than yours, but I'm showing 41%. Last cycle, we were at 39% or pre-COVID, we were at 39% as far as our noninterest-bearing, and we're expecting that they'll kind of slow down to that. From a seasonality standpoint, we do experience seasonal tax outflows in April, which is why we had the decline in April there. Also, we do see some ag borrowers that earlier in the quarter, fund their operations with cash before they start drawing down their lines.

是的。所以我想我的數字可能與你的有所不同，但我顯示的是 41%。上個週期，我們在新冠疫情之前的利率為 39%，就我們的無息利率而言，我們的利率為 39%，我們預計利率會放緩至這一水平。從季節性的角度來看，我們確實在 4 月經歷了季節性稅收流出，這就是我們 4 月下降的原因。此外，我們確實看到一些農業借款人在本季度早些時候在開始提取貸款之前用現金為其營運提供資金。

Our next question is from Kelly Motta from KBW.

我們的下一個問題來自 KBW 的 Kelly Motta。

I think maybe starting on the loan growth. I know it's your intention to be open through cycles to support your borrowers. But I was surprised to see how strong the growth was at -- just given how much rates have risen. Have you seen a pullback in demand at all? And what should we be thinking about ahead as you look to the pipeline? Any color about that would be helpful.

我認為也許可以從貸款成長開始。我知道您打算在整個週期中開放以支持借款人。但令我驚訝的是，考慮到利率上漲的幅度，成長如此強勁。您是否看到需求回落？當您展望管道時，我們應該考慮什麼？任何關於它的顏色都會有幫助。

Kelly, yes, certainly, we've seen a slowdown in -- I don't want to use the word demand, but in the pipelines refilling. Our pipeline are filling back up, but you will find them running 15% to 20% lower than they were at this time last year. The loan growth, we think back to last quarter with the construction draws as the residential construction builds out, the affordable housing builds out, the ag draws, all of that impacted the loan growth of this quarter. And so the continued economic pessimism increased rate environment, overall uncertainty is going to -- we believe, continue to mute loan growth going forward. And I would still suggest that we'll target a low single-digit growth rate going forward.

凱利，是的，當然，我們已經看到了放緩——我不想使用“需求”這個詞，而是在管道補充方面。我們的管道正在回填，但您會發現它們的運行速度比去年同期低 15% 到 20%。貸款成長，我們回想起上個季度的建築提款，住宅建設、經濟適用房建設、農業提款，所有這些都影響了本季的貸款成長。因此，持續的經濟悲觀情緒加劇了利率環境，整體不確定性將——我們相信，將繼續抑制未來的貸款成長。我仍然建議我們未來的目標是低個位數成長率。

Understood. I appreciate that. Also wondering, Jill, if you could -- obviously, the markets in the West have received a lot of attention. I was hoping you could provide kind of an overview by market of where you're still seeing the most opportunities versus which markets might be lagging more within your footprint?

明白了。我很感激。吉爾，我也想知道你是否可以——顯然，西方市場受到了很多關注。我希望您能按市場提供一種概述，了解您仍然看到最多機會的市場以及哪些市場可能在您的足跡中落後更多？

I don't really see a difference, Kelly, across our footprint. I mean, the West Coast is pretty much operating in the same vein up and down. The coast activity is flowing across the area.

凱利，我真的沒有看到我們的足跡有什麼不同。我的意思是，西海岸上下幾乎都是以同樣的方式運作的。海岸活動正在該地區流動。

Let me just add, Kelly, that we've had some excellent experience in our small business banking group in Northern California and all the way up and down the coast. So actually, the business activity from a small business standpoint has been pretty good for us.

凱利，我要補充一點，我們在北加州以及整個海岸的小型企業銀行集團中擁有一些出色的經驗。事實上，從小型企業的角度來看，商業活動對我們來說非常好。

Understood. Appreciate that. Maybe circling to the margin. Obviously, deposit costs have heated up at this stage and caused some compression ahead. Just hoping to get some color on where new loan production is coming on? As well -- is this 30 basis point of margin compression is -- do you expect a similar level this quarter as we look ahead? Any kind of guidance around that would be helpful.

明白了。感謝。也許會繞到邊緣。顯然，現階段存款成本已經升溫，並導致未來出現一些壓縮。只是希望了解新貸款生產的情況？同樣，這 30 個基點的利潤率壓縮是否是——您預計本季會出現類似的水平嗎？任何有關此問題的指導都會有所幫助。

Sure, Kelly. It's Rob. So yes, the new loan production came on at 7.69% for the quarter. As far as an overall compression standpoint, I mean, we did experience that compression, but we expect that to moderate going forward. And we even saw that in the second quarter. So the second half of the quarter, we actually saw a slower compression. The NIM for the month of June and May were within 1 basis point or 2 of each other. So our expectation is that we could see some additional compression here, but it will moderate quite a bit from what we saw in the second quarter.

當然，凱利。是羅布。所以，是的，本季新貸款產出率為 7.69%。就整體壓縮的角度而言，我的意思是，我們確實經歷了這種壓縮，但我們預計這種情況將在未來有所緩解。我們甚至在第二季就看到了這一點。因此，在本季度的後半段，我們實際上看到了壓縮速度較慢。 6 月和 5 月的淨利差相差在 1 或 2 個基點以內。因此，我們的預期是，我們可能會看到一些額外的壓縮，但與我們在第二季度看到的情況相比，它會有所緩解。

And Kelly, this is Peter. I'll add a little more color to Rob's commentary around deposits. And again, we -- the last time we increased our posted rates on deposits was the very beginning of May. So it's been 2 months since we've actually posted an increase in our offer rates outside of some tenor adjustments on the CDs. And really, the interest rate beta going forward are going to be a function of remixing the deposit base a bit more into CDs away from core deposits, but not a function of increasing our offer rates going forward and that coupled with additional deleveraging on our wholesale funding costs, including FHLB will really keep the margin compression limited going forward, as Rob indicated.

凱利，這是彼得。我將為 Rob 關於存款的評論添加更多色彩。再說一遍，我們上次提高存款利率是在五月初。因此，自從我們實際發布除了 CD 的一些期限調整之外的報價上調以來，已經過去兩個月了。事實上，未來的利率貝塔值將是一個將存款基礎更多地重新混合到遠離核心存款的存款證中的函數，而不是提高我們未來的報價率以及加上我們批發的額外去槓桿化的函數。正如 Rob 指出的那樣，包括 FHLB 在內的融資成本確實會限制未來利潤率的壓縮。

So as well, we're seeing our CD specials generating net new growth, about 50% of the growth in the CD specials is coming from new money to the bank with the rest of it coming from existing accounts. So we're seeing success with the rates we've got. And as Rob indicated earlier, we're not top of the market, we're about 100 basis points below and seeing good success with those rates.

因此，我們也看到我們的 CD 特價產生了新的淨增長，CD 特價中約 50% 的增長來自銀行的新資金，其餘部分來自現有帳戶。因此，我們看到我們的利率取得了成功。正如 Rob 早些時候指出的那樣，我們並不是市場的頂端，我們的利率比市場低約 100 個基點，並且在這些利率上取得了良好的成功。

Got it. I'll step back. And again, Peter, congrats on your retirement and Rob, looking forward to continuing to work with you.

知道了。我會退後一步。彼得，再次恭喜您退休，羅布期待繼續與您合作。

Our next question is from David Feaster from Raymond James.

我們的下一個問題來自雷蒙德詹姆斯的大衛菲斯特。

Just kind of -- staying on deposits, and I don't want to kill this, but kind of reading between the lines, it sounds like deposit pressures have abated a bit that most of the remix was really weighted towards the front end of the quarter. I'm just curious what gives you confidence that deposit trends are stabilizing? Could you maybe talk about some of the competitive dynamics? And then where you're seeing the most competition? Is it the larger banks, smaller banks, nonbanks? And then just any thoughts on your strategy to drive core deposit growth? Where are you seeing the most opportunity to gain relationships, the deposit pipeline? And any -- just any thoughts on that front as well.

Just kind of -- staying on deposits, and I don't want to kill this, but kind of reading between the lines, it sounds like deposit pressures have abated a bit that most of the remix was really weighted towards the front end of the四分之一.我只是好奇是什麼讓您相信存款趨勢正在穩定？您能談談一些競爭動態嗎？那你在哪裡看到競爭最激烈的呢？是大型銀行、小型銀行還是非銀行銀行？那麼對於你們推動核心存款成長的策略有什麼想法嗎？您認為在哪裡獲得關係的機會最多，也就是存款管道？還有關於這方面的任何想法。

David, this is Peter. I'll answer the question and ask Rob to add some additional color. So in terms of the competition, what -- what we see -- what we saw at the beginning of the first quarter was really the outflow is going not to other banks or credit unions, but to off-balance sheet opportunities in treasuries or money market (inaudible) with brokerages where our business clients, we're harvesting some of their nonoperating balances and generating higher yields. That really slowed down dramatically at the end of the second quarter. We're not seeing that pace of movement so far in the third quarter.

大衛，這是彼得。我將回答這個問題並請羅布添加一些額外的顏色。因此，就競爭而言，我們在第一季初看到的情況實際上是資金外流不是流向其他銀行或信用合作社，而是流向國債或貨幣的表外機會。市場（聽不清楚）與我們的業務客戶的經紀公司相比，我們正在收穫他們的一些非經營性餘額並產生更高的收益率。在第二季末，這速度確實急劇放緩。到目前為止，我們在第三季還沒有看到這樣的變化速度。

Our competition is effectively our other community banks in the market, to a lesser extent, some of the credit unions. And in terms of the specials, it's interesting that most of the banks that we compete with (inaudible) around the same tenors of CDs, and we're all within 25 basis points of each other in terms of the offer rate. So we've really stabilized kind of the center point of where pricing and tenor is at this point.

我們的競爭對手實際上是市場上的其他社區銀行，在較小程度上是一些信用合作社。就特價而言，有趣的是，我們與（聽不清楚）大多數銀行競爭的 CD 期限相同，而且我們在報價方面的差距都在 25 個基點以內。因此，我們目前確實穩定了定價和期限的中心點。

In terms of generating new business, as you heard from Mark and Jill and Rob, we've seen really good success in the small business space. As part of being (inaudible), we invested heavily in building out the teams, the sales efforts there, the product set and some of the infrastructure to accelerate small business banking. And as you know, small business banking clients tend to come with a very rich deposit relationship as well. So we're seeing good success there.

在創造新業務方面，正如您從馬克、吉爾和羅布那裡聽到的那樣，我們在小型企業領域看到了非常好的成功。作為（聽不清楚）的一部分，我們投入了大量資金來建立團隊、銷售工作、產品集和一些基礎設施，以加速小型企業銀行業務的發展。如您所知，小型企業銀行客戶往往也擁有非常豐富的存款關係。所以我們在那裡看到了良好的成功。

And if you look at our earnings release, you can see the number of accounts, deposit accounts actually grew in the second quarter or first quarter, part of that is due to the success of small business campaign, along with the success of some of our core deposit product specials that have been out there that require opening new accounts to bring your money in. So we're feeling pretty good about where we are at the end of the second quarter. And the outlook going forward really seeing stabilization of deposits and now are seeing some of that account or on top of that, albeit at higher rates. And as we said earlier, really the interesting deposit beta for us is really a remixing function, not one of increasing rates on existing accounts.

如果您查看我們的收益報告，您可以看到第二季或第一季的帳戶數量、存款帳戶實際上有所增長，部分原因是小型企業活動的成功，以及我們的一些業務的成功核心存款產品特價已經存在，需要開設新帳戶才能將資金存入。因此，我們對第二季末的情況感覺非常好。未來的前景確實看到了存款的穩定，現在看到了一些帳戶或除此之外的帳戶，儘管利率更高。正如我們之前所說，對我們來說，真正有趣的存款測試版實際上是一種重新混合功能，而不是增加現有帳戶的利率。

Yes. And David, the only thing I'll add to Peter is -- just to give a little more color maybe on the deposit flows we saw for the quarter. So as I mentioned in my comments, April, the deposit outflows were really confined to April. May, we saw a stabilization where our retail deposits, and I'm excluding brokered from that. So just our retail deposits, we saw an increase during the month of May. And then we saw a further increase during the month of June. In June, we saw an increase in core deposits as well as an increase in noninterest-bearing deposits. And then as we've moved into July, we've seen that stabilization continue. So it's not -- I mean, our confidence level might not be through the roof right now necessarily, but I think we're seeing some positive signs there.

是的。大衛，我要向彼得補充的唯一一件事是——只是為了給我們在本季度看到的存款流量提供更多的色彩。正如我在評論中提到的，四月份，存款流出實際上僅限於四月。五月份，我們看到零售存款趨於穩定，我不包括經紀業務。僅就我們的零售存款而言，我們在五月就看到了成長。然後我們在六月看到了進一步的成長。 6月份，核心存款增加，無利息存款也有所增加。然後，隨著進入七月，我們看到這種穩定仍在繼續。所以這不是——我的意思是，我們的信心水平現在可能不一定達到頂峰，但我認為我們看到了一些積極的跡象。

Okay. That's helpful. And then maybe just jumping over to the loan growth side and following up there. Again, nice to the increase in originations and especially at the rates you were able to get. Originations were primarily driven by construction. I'm just curious what you're seeing on the construction side at that point? Is it more on the multifamily side? And then just, again, what are you seeing on the C&I front as well? And what are you hearing from those clients and what's driving the increase in utilization there?

好的。這很有幫助。然後也許只是跳到貸款增長方面並跟進。再次，很高興起源的增加，尤其是您能夠獲得的費率。起源主要是由建築驅動的。我只是好奇你當時在施工上看到了什麼？多戶家庭方面更重要嗎？然後，您又在 C&I 方面看到了什麼？您從這些客戶那裡聽到了什麼？是什麼推動了利用率的提升？

Yes, David. So in a construction and land book, nearly 40% of the originations in the quarter were affordable housing construction starts, very little of that would be drawn, but those are -- so you'll see that fund up over the next 18 to 24 months, but we had significant growth as we near quarter end and the tax credit funding time lines and things like that pushed a bunch of affordable housings to close in the quarter.

是的，大衛。因此，在建築和土地簿中，本季近40% 的資金是經濟適用房建設開工，其中很少會被提取，但這些都是——所以你會看到這筆資金在接下來的18 到24 年裡增加幾個月來，但隨著臨近季度末，我們取得了顯著的增長，稅收抵免融資時間表等因素推動了許多經濟適用房在本季度關閉。

As to commercial, we saw increased loan utilization. We are seeing equipment acquisitions, business -- a little bit of everything, C&I-line utilization, it's term debt and it's mostly to our existing customers who they need to keep their businesses going, and they're recognizing that rates are where they're at, and they've just got to move and keep the doors going the way we're keeping our doors open.

至於商業，我們看到貸款利用率增加。我們看到設備採購、業務——一切都在進行，C&I 線利用率、定期債務，主要是針對我們現有的客戶，他們需要這些客戶來維持業務發展，他們認識到利率是他們的水平。是的，他們只需要移動並保持門打開，就像我們保持門打開一樣。

Okay. That makes sense. And then obviously, there's been a lot of disruption around you over the past few months. You got the failures, you've got some M&A. There's a lot of opportunity. It seems like we're still in the early innings of capitalizing on this. But I'm just curious, maybe as you step back, Mark, where are you seeing the most opportunity? Is it the client acquisition side? Is it new hires? Where are you seeing the most expansion opportunity? Or are you more focused on in market? Or is there anything that you're interested in expanding into? I'm just curious maybe what are you most excited about?

好的。這就說得通了。顯然，過去幾個月你周圍發生了很多混亂。你經歷過失敗，也經歷過一些併購。有很多機會。看來我們仍處於利用這一點的早期階段。但我只是好奇，也許當你退後一步時，馬克，你在哪裡看到最多的機會？是客戶獲取方面嗎？是新進員工嗎？您在哪裡看到最多的擴張機會？還是您更關注市場？或是有什麼你有興趣拓展的領域嗎？我只是好奇也許你最興奮的是什麼？

Yes, David, thank you for the question. I think, look, as I've said before, Banner has been really successful when there's been quite a bit of market disruption, and that's exactly what we have. We're -- we are actually capitalizing on every front you mentioned. We're bringing new talent into the organization at all levels of the company, including loan originators and as well as credit folks. At the same time, we're being able to fill our pipelines up with opportunities as well from the disruption that's occurring in a lot of the -- with a lot of the banks. That disruption is going to accelerate at a higher pace.

是的，大衛，謝謝你的提問。我認為，正如我之前所說，當市場出現相當大的混亂時，班納確實取得了成功，而這正是我們所擁有的。我們實際上正在利用你提到的每一個方面。我們正在為公司各個層級的組織引進新人才，包括貸款發起人和信貸人員。同時，我們也能夠透過許多銀行所發生的混亂來填補我們的管道。這種顛覆將以更快的速度加速。

Right now, it's been, as you mentioned, a little bit benign, although the discussions with all of our bankers has occurred and there will be a catalyst event that most businesses will utilize to change financial institutions. Whether it be a credit request or an expansion request or some form of disruption or change of the environment. And we're just now starting to see that come about. And that's why Jill was optimistic about our pipeline is actually starting to grow. And a lot of it is coming not from just business activity, but also us capitalizing on market disruption.

正如您所提到的，目前情況有點良性，儘管我們已經與所有銀行家進行了討論，並且大多數企業將利用催化事件來改變金融機構。無論是信貸請求、擴張請求或某種形式的破壞或環境變化。我們現在才剛開始看到這種情況的發生。這就是為什麼吉爾對我們的管道實際上開始增長感到樂觀。其中很大一部分不僅來自商業活動，也來自我們利用市場混亂的機會。

And then if you think about the final piece of all that disruption, as you mentioned, we have some specialty lines of business in our own shop, which include some form of agricultural verticals such as the wine industry, where we're experiencing some great opportunities that had wine verticals with some of the other institutions that failed, right? So we're having -- being able to capitalize on our own core competency in certain lines of business that are going to be very effective for us going forward in terms of taking market share. So thank you for the question.

然後，如果您考慮所有這些顛覆的最後一部分，正如您所提到的，我們在自己的商店中有一些專業業務線，其中包括某種形式的農業垂直行業，例如葡萄酒行業，我們正在經歷一些偉大的產業與其他一些失敗的機構建立葡萄酒垂直市場的機會，對嗎？因此，我們能夠在某些業務領域利用我們自己的核心能力，這對於我們在佔領市場份額方面的前進非常有效。謝謝你的提問。

No, that's extremely, extremely helpful. And maybe just one quick modeling one, if I can. Do you have an estimate for the FDIC loss share or just that catch-up?

不，這非常非常有幫助。如果可以的話，也許只是一個快速建模。您是否對 FDIC 損失份額進行了估計，或者只是進行了彌補？

Yes. Yes. So David, on that one, the assessment rate change that we affected in earlier in the year, we were fully capturing that. And so we've built it into our run rate for the remainder of the year. So the number you saw there, that's a good number for Q3 and Q4.

是的。是的。大衛，就這一點而言，我們在今年早些時候影響的評估率變化，我們完全抓住了這一點。因此，我們已將其納入今年剩餘時間的運行率中。所以你在那裡看到的數字對於第三季和第四季來說是一個很好的數字。

Our next question is from Andrew Terrell from Stephens.

我們的下一個問題來自史蒂芬斯的安德魯·特雷爾。

Peter, real quick, I just want to say congratulations. It's been a pleasure working with you, and Rob look forward to continuing working with you as well. Maybe if I could start on -- just one quick one on the margin. On the special rates you guys discussed a couple of times in the call, what special rates are you offering in the market right now? Is it just CD special rates? Or have you raised posted rates across the Board and how it compares to your competitors?

彼得，快點，我只想說恭喜。與您合作非常愉快，羅布也期待繼續與您合作。也許我可以開始——只是在邊緣快速地做一個。關於你們在電話中多次討論過的特價，你們現在在市場上提供哪些特價？只是CD特價嗎？或者您是否全面提高了公佈的費率以及與競爭對手相比如何？

Yes, Andrew, it's Rob. Yes, the current deposit rate specials are running. We do have a CD special out there a 7-month one which has a standard rate of 4% on it. And then we also have a high relationship savings account that we're currently offering. So on that one to get that rate, you have to also have a checking account that requires a relationship. And the rates on that range from 2% to 4% depending on the tier. And I would say the average cost on that product right now is probably in the low 3s right now.

是的，安德魯，我是羅布。是的，目前存款利率特價正在進行中。我們確實有一張特價 CD，為期 7 個月，標準利率為 4%。然後，我們目前也提供一個高關係儲蓄帳戶。因此，要獲得該利率，您還必須擁有一個需要關係的支票帳戶。根據等級不同，費率從 2% 到 4% 不等。我想說，目前該產品的平均成本可能在 3 秒以下。

Andrew, this is Mark. So Andrew, if you take into account Rob's commentary on the rates, you can see that we're certainly not top of market.

安德魯，這是馬克。所以安德魯，如果你考慮到羅布對費率的評論，你會發現我們肯定不是市場的佼佼者。

Yes, for sure, for sure. So I guess it seems like incremental funding, putting those two together would be around 4% or sub-4%. So yes, it definitely seems better than maybe market right now. On the securities portfolio, I know there were some sales this quarter, but I guess I'm looking at your capital position, it's really strong. Any interest in maybe getting a little more aggressive on the securities repositioning front? And if not, what do we need to see in order for that trade to become more attractive?

是的，當然，當然。所以我想這似乎是增量資金，將兩者加起來約為 4% 或低於 4%。所以是的，它看起來肯定比現在的市場好。在證券投資組合方面，我知道本季有一些銷售，但我想我正在考慮您的資本狀況，它非常強勁。有興趣在證券重新定位方面採取更積極的態度嗎？如果沒有，我們需要看到什麼才能使該交易更具吸引力？

Yes. So Andrew, Rob, again here. So yes, I mean we tend -- not want to bet on any particular rate cycle. So I would expect Q3 to look very similar to what we saw in Q1 and Q2 as (inaudible) -- I mean, we certainly have the capital to do it. But we're looking at kind of just averaging out. If you think about as we came into those securities, we averaged into them. We didn't make a big bet at any particular time. and that will be our approach here, too. I think to see a larger sale activity, I think we would need to see rates come down.

是的。安德魯、羅布，又來了。所以，是的，我的意思是我們傾向於——不想押注於任何特定的利率週期。因此，我希望第三季度看起來與我們在第一季和第二季看到的非常相似（聽不清楚）——我的意思是，我們當然有資本做到這一點。但我們正在考慮某種程度的平均。如果你想一想，當我們進入這些證券時，我們對它們進行了平均。我們沒有在任何特定時間下大賭注。這也將是我們在這裡的做法。我認為要看到更大規模的銷售活動，我們需要看到利率下降。

Okay. Understood. And then -- last question, just updated thoughts on buyback appetite, I guess, with a slower level of balance sheet growth. I mean capital really should go quite nicely, and you're already in a solid position. Any interest in a buyback at this point?

好的。明白了。然後，最後一個問題，我想，隨著資產負債表成長放緩，我剛剛更新了對回購意願的想法。我的意思是，資本確實應該進展順利，而且你已經處於穩固的地位。目前有回購興趣嗎？

Yes. So as you say, I mean, capital position, we certainly have the capital capacity to do it. And we are contemplating that for the second half of the year. And just as a reminder, too, our most recent repurchase authorization expired in December. And so I think before we started repurchasing, you'd likely see an announcement that we approved a new authorization.

是的。正如你所說，我的意思是，資本狀況，我們當然有資本能力做到這一點。我們正在考慮今年下半年的情況。也提醒一下，我們最近的回購授權已於 12 月到期。因此，我認為在我們開始回購之前，您可能會看到我們批准新授權的公告。

Our next question is from Tim Coffey from Janney Montgomery Scott.

我們的下一個問題來自詹尼·蒙哥馬利·斯科特的蒂姆·科菲。

Rob, I apologize if I missed this, but did you provide any kind of thoughts on how we should think about noninterest expenses going forward?

羅布，如果我錯過了這一點，我很抱歉，但是您是否就我們應該如何考慮未來的非利息支出提供了任何想法？

Yes. We haven't covered that yet, Tim. So yes, I expect it to be very similar to what we've experienced in the first 2 quarters of the year within that range.

是的。我們還沒有討論這個，提姆。所以，是的，我預計它會與我們今年前兩個季度在該範圍內經歷的情況非常相似。

Okay. So are we looking kind of more to mid-$90 million right now?

好的。那麼我們現在的目標是 9000 萬美元左右嗎？

Yes, I think that's accurate.

是的，我認為這是準確的。

Okay. Make sure I note that down. And Jill, is there something that you're paying attention to in the credit portfolio? Because clearly, I mean, we're not -- you're not seeing many problems, but from other banks in the West, they've expressed not concerned, but to keep an eye on debt coverage ratios in the current rate environment and subjecting those loans to higher scrutiny. Is there something that you're keeping an eye on?

好的。請確保我記下來。吉爾，您在信貸投資組合中有什麼值得關注的嗎？因為很明顯，我的意思是，我們沒有看到很多問題，但西方其他銀行表示不擔心，但要密切關注當前利率環境下的債務覆蓋率，對這些貸款進行更嚴格的審查。有什麼你正在關注的嗎？

Yes, Tim. I mean certainly, we're monitoring debt service coverage ratios, and that's not because of the cycle we're in. That's basically one of the standard covenants that we would put on all of our loans to monitor performance on a going forward basis. As I step back and watch what's happening, certainly, we're watching office like everyone else, and it's the repricing opportunities or I guess that's not really the right word, but the repricing events that are going to happen to all of the borrowers as we move forward. So continuing to stay on top of that with a forward look towards debt service coverage.

是的，提姆。我的意思是，我們正在監控償債覆蓋率，這並不是因為我們所處的周期。這基本上是我們對所有貸款施加的標準契約之一，以監控未來的表現。當我退後一步觀察正在發生的事情時，當然，我們像其他人一樣關注辦公室，這是重新定價機會，或者我想這不是真正正確的詞，而是所有借款人都會發生的重新定價事件我們繼續前進。因此，要繼續關注這一點，並對償債覆蓋範圍保持前瞻性。

As you know, we continue to stress the portfolio at various levels, just to see exactly what's going to happen if rates go up a little bit further. And right now, we're not seeing any kind of stress level.

如您所知，我們繼續在各個層面對投資組合施加壓力，只是想看看如果利率進一步上升會發生什麼。現在，我們沒有看到任何壓力水平。

Okay. Speaking of stress, though, are you seeing a different level of stress between your -- to your commercial real estate in the central business district versus your commercial real estate in the suburban markets?

好的。不過，說到壓力，您是否發現中央商務區的商業房地產與郊區市場的商業房地產之間有不同程度的壓力？

At this point, we really aren't. And I think if you think back to the prepared comments and the loan sizes that we have in these areas. I mean, they're small enough that even if they were having trouble at the property level, the global debt service coverage available to our borrowers really would backfill it. But we're not. And that -- it's reflected in the negligible as adverse the classified loans in the office book in those markets.

在這一點上，我們確實不是。我想如果你回想一下準備好的評論和我們在這些領域的貸款規模。我的意思是，它們足夠小，即使它們在財產層面遇到麻煩，我們的借款人可用的全球償債保險確實可以彌補它。但我們不是。這反映在這些市場的辦公帳簿中的分類貸款可以忽略不計。

Okay. And then just on deposit pricing. I understand what you're saying about where you want to keep your deposit pricing at. But if the market that you raised deposits in continues to increase their cost of what they're willing to pay for deposits. Are you concerned that, that could lead to a higher deposit rates for Banner?

好的。然後就是存款定價。我明白您所說的關於您希望將存款定價保持在什麼水平。但是，如果您籌集存款的市場繼續增加他們願意支付存款的成本。您是否擔心這可能會導致班納的存款利率上升？

Yes. Tim, it's Rob. So I mean we are certainly subject to the competitive rate environment and what happens there. And so if the deposit rates within our market shifted dramatically, then we might have to respond to that. But I think we'll continue to kind of try to balance the deposit outflows with the cost of the deposits and decide where it's advantageous to defend those deposits or let those deposits go off balance sheet.

是的。提姆，我是羅布。所以我的意思是，我們肯定會受到競爭性價格環境以及那裡發生的情況的影響。因此，如果我們市場內的存款利率發生巨大變化，那麼我們可能必須對此做出反應。但我認為我們將繼續嘗試平衡存款流出與存款成本，並決定在哪些方面有利於保護這些存款或讓這些存款脫離資產負債表。

This is Mark again. As you know, we have an in-house exception system that allows us to protect our very best clients so that we can provide some exception pricing if needed.

這又是馬克。如您所知，我們有一個內部例外系統，使我們能夠保護我們最好的客戶，以便我們可以在需要時提供一些例外定價。

Right. Yes. I remember we talked about loan deposit ratio kind of comfort levels last quarter. So...

正確的。是的。我記得上個季度我們談到了貸存比的舒適程度。所以...

(Operator Instructions) Our next question is from Andrew Liesch from Piper Sandler.

（操作員說明）我們的下一個問題來自 Piper Sandler 的 Andrew Liesch。

Just one follow-up question here on credit quality. Just with the provisioning, you mentioned a couple of times or a few times now, deterioration in the forecast model. I guess what deterioration are you seeing? Or is it just when you look out at, see what the leading economic indicators are saying?

這裡只有一個關於信用品質的後續問題。就供應而言，您已經多次提到預測模型的惡化。我猜你看到了什麼惡化？或只是當你觀察領先經濟指標時就知道了？

Yes, Andrew. So the economic indicators and the forecast model that are driving the deterioration of our commercial real estate price index almost exclusively, and that comes back and affects the model. Offset, of course, by the asset quality in the portfolio to some extent, keeping it moderate.

是的，安德魯。因此，經濟指標和預測模型幾乎完全推動了我們商業房地產價格指數的惡化，而這又回來影響了模型。當然，投資組合中的資產品質在一定程度上抵消了這種影響，使其保持適度。

Just one thing I'll add is we use the Moody's forecast in the model. So it's not our internal forecast. We use Moody's forecast for that.

我要補充的一件事是我們在模型中使用穆迪的預測。所以這不是我們的內部預測。我們對此使用穆迪的預測。

Got it. Got it. So I guess if you look at the provision in the quarter, would the vast majority of it tied to the loan growth?

知道了。知道了。所以我想如果你看看本季的準備金，其中絕大多數是否與貸款成長有關？

It was. Loan growth was the driver.

它是。貸款成長是驅動力。

Got you. Thank you. You've covered everything else. Have a great rest of your day.

明白你了。謝謝。你已經涵蓋了其他所有內容。祝您有個愉快的一天。

(Operator Instructions) We have no further questions. So I'd like to hand back to Mark for any closing remarks.

（操作員說明）我們沒有其他問題了。我想請馬克做結束語。

Thank you, Daisy. As I stated, we're very proud of the Banner team and our second quarter 2023 performance even in light of the competitive deposit environment we're facing, we certainly appreciate the loyalty of our deposit customers and the resiliency of our franchise. Thank you, again, for your interest in Banner and for joining our call today. We look forward to reporting our results to you again in the future. Have a great day, everyone.

謝謝你，黛西。正如我所說，我們對 Banner 團隊和我們 2023 年第二季的業績感到非常自豪，即使我們面臨著競爭激烈的存款環境，我們當然也很欣賞存款客戶的忠誠度和我們特許經營的彈性。再次感謝您對 Banner 的興趣並參加我們今天的電話會議。我們期待將來再次向您報告我們的結果。祝大家有個美好的一天。

Thank you, everyone, for joining today's call. You may now disconnect your lines, and have a lovely day.

謝謝大家參加今天的電話會議。現在您可以斷開線路，祝您度過愉快的一天。